December 21st, 2020

How Restaurants Succeed During a Pandemic

Posted in Restaurants, Technology

Learning How 3 Restaurants Have Grown During COVID

How Restaurants Succeed During a Pandemic

There’s no doubt we’ll all take many lessons from 2020, one of which needs to be how restaurants succeed during a pandemic.

This week, we’re highlighting three restaurants that have found ways to not only survive, but even grow during COVID. Let’s see what lessons we can learn from their successes.

Wingstop

Restaurant successes during a pandemic

Image courtesy of wingstop.com

With an over 25% increase in sales in quarter 3 and consistent gains over the year, Dallas, TX based Wingstop has shirked pandemic expectations. Not only are sales up, but they also launched 43 new stores over the year.

One thing that has helped Wingstop stay profitable is their willingness to adapt and innovate. When expected shortages and price increases threatened chicken wing supplies, the company began experimenting with bone-in chicken thighs to much success.

They’ve also tested the idea of launching ghost kitchens if necessary and have continually invested in technology. This has led to the digital share of Wingstop’s sales to rise 62% this year. The company’s executive leadership credits a combination of culture, technology, and old-fashioned product quality for their current stability.

Domino’s Pizza

Restaurants winning the pandemic

Image courtesy of Dominos.com

Domino’s Pizza reported a 17.5% increase in U.S. same-store sales in the third quarter, which was is strongest sales performance in decades. New product launches and innovation played a strong role in Domino’s success. Specifically, the popularity of the Cheeseburger and Chicken Taco pizzas, plus the redesigned chicken wings.

Additionally, their previous investment in ordering technology has paid off dividends during the pandemic. Where many companies had to pivot in order to launch non-traditional methods of ordering, Domino’s already had these pieces in place. Specifically, the “car-side” delivery option has proven extremely popular.

All of this, however, has to be balanced against the higher costs incurred during the pandemic. While sales are up, so are costs, including safety and sanitation, food costs due to supply chain issues, and employee related costs due to increased sick days. Not to mention, mandated early closing times in high infection rate areas. But none of this overshadows the successes of the model put in place.

Fazoli’s

Pandemic restaurant trends

Image courtesy of Fazolis.com

Fazoli’s has shown an incredible trajectory of growth all year, closing quarter 3 with a 14 percent sales increase, 10 percent increase in traffic, and 217 percent increase in online ordering year-over-year. Against the background of the pandemic, these numbers are nearly unbelievable.

CEO Charles Howard credits this success to serving “craveable Italian dishes at an incredible value” with focuses on service and convenience. With that, some credit does go to the introduction of their virtual wing concept, Wingville.

Since the full company launch in October, Wingville has raked in $350,000 at 56 company locations, and franchisees who are offering Wingville experienced nearly $100,000 in sales in November alone.

Common Threads

common-thread

There are a few common threads one can observe from the success of these companies during such trying times.

Portability is Key

With off-premise dining becoming the primary function of restaurants, and the likelihood that it will remain popular, having a product that can maintain quality during delivery is important. Foods like wings, pizza, and pastas are excellently suited to this.

If your food isn’t inherently suited to take-out, it would be worth looking into how the process can be improved or offering a limited menu for off-premise dining.

Familiarity

Pizza, Italian foods, and chicken wings are all popular, ubiquitous items. For a diner, this means there’s low risk for disappointment.

Value

These companies are all providing good quantities of food for a relatively low cost. When this can be done while maintaining food quality and flavor, it’s a win for all sides.

Technology

Finally, all three companies have put a heavy focus on developing technology or partnering with digital leaders to get their foods in the hands of customers. The ability to access and order food easily through multiple platforms ensures customers don’t have moments of hesitation or frustration.

Congrats to Those Making it Happen

We salute you. And we hope that more of our friends and partners can leverage these assets to ensure the stability of their own businesses. We’re all in this together, after all.

Any tips on how to increase sales during a pandemic? Leave a comment below, we’d love to hear from you.

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