Restaurant customer migration continues to confound many companies within the restaurant space. The team at Tacoma, WA base Foodservice Solutions® continues to believe that the only way to prevent that migration is to listen to your customers.
Since 2008, chain restaurants have experienced -14.8 percent same-store traffic growth. Furthermore, throughout 2016, total food and drinking places saw over 2 percent higher sales than chain restaurants, according to Black Box Intelligence’s Market Share report. Essentially, chains are losing their customers to other independent restaurants and thus are suffering the decrease in traffic. We note with the exception of McDonald’s.
Domino’s digital success continues and there are two companies that that have edified their digital strategy and are bucking the trend. Those companies are Panera Bread, and Chipotle. Let’s look at what they are doing:
Panera Bread Co. recently reported that digital orders are now 26 percent of total sales at company-owned locations. Panera has added online ordering and kiosks at those locations, and consumers have clearly responded. And same-store sales at those units increased 5.3 percent in the company’s first quarter, and rose 11.5 percent over two years. By comparison, franchisees’ same-store sales are up 7.3 percent over two years. Panera is one of the stronger restaurant chains in the country right now.
Chipotle Mexican Grill Inc. reported that digital sales increased 53.5 percent in the first quarter. The company used “smarter pickup times” technology that assigns pickup times based on transaction volumes. And the company has a second make line to help with those orders. Chipotle’s same-store sales increased 17.8 percent in the first quarter, far above the 15-percent growth analysts expected. The chain has a long way to go to recover sales it lost last year, but it was a strong report.
While one of the last major retailers to adopt technology Domino’s did it right, did it big and is garnering share of stomach in the pizza space. Domino’s Pizza Inc., where digital strategies and innovative marketing have combined for a three-year same-store sales increase of more than 30 percent enough said.
Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food that is portable continues to garner customer adoption. In fact two-thirds of McDonald’s customers, use the drive-thru. And 61 percent of all restaurant orders right now are takeout, according to market research firm The NPD Group.
Technology is making all of that possible. Integrating technology into your operation, marketing, messaging is of paramount importance today according to the team at Foodservice Solutions®.
Are you trapped doing what you have always done and doing it the same way? Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit: www.FoodserviceSolutions.us for more information.