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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October 19th, 2020

Detroit Style Pizza is Winning the Pandemic

Posted in Consumer Trends, Food Trends, Restaurants

Detroit Style Pizza Hits on Satisfaction & Nostalgia

Detroit Style Pizza

Photo courtesy of Via313.com

Detroit style pizza is winning the pandemic. Yes, big statement for sure. I mean, can anything or anyone really win the pandemic? Maybe, maybe not. But, if anything comes close, it’s Detroit style pizza.

What is Detroit Style Pizza?

First thing’s first, let’s answer what Detroit style pizza actually is. Basically, Detroit style pizza refers to a deep, square pie, traditionally cooked in blue steel pans that were also used by Detroit automotive manufacturers at the time. They have caramelized cheese crusts and a generous pour of sauce on top of the pizza when finished.

Detroit Style Pizza

For long-time readers, you may remember a story we did on Austin’s very own Via 313 Pizza. Now with multiple locations and no sign of slowing down, they came on the scene with plenty of time to reap the benefits of this trend. Their popularity has been so high, they’ve essentially become a monopoly in the market, with no other restaurants even attempting to edge into their territory.

Why Now?

As we’ve noted during the pandemic, comfort food has been a driving trend, finding its way into fast food, QSRs, and brick and mortar restaurants alike. Right alongside comfort food during this trend change has been pizza. Ubiquitously popular, craveable, and supremely portable, pizza has weathered the storm better than almost all of its culinary counterparts.

So, it makes sense then that Detroit style pizza, with its thick, yeasty crust, crispy/cheesy frico edges, and quirky sauce-on-top characteristic, has found deep roots with diners across the U.S. Aside from comfort food, Detroit style pizza also matches up with the new found love for yeast and sourdough. All those folks at home, who learned how to make their own starter or fell in love with the art of yeasted bread, have found a kindred spirit in Detroit style pizza.

Where is it Gaining Ground?

Detroit Pizza

Photo courtesy of la.eater.com

It’s gaining ground in some of the best markets in the U.S. In fact, a bevy of new Detroit style pizza restaurants have opened in Los Angeles, including the likes of Dough Daddy and Schell’s Pizza Hole. And these launched during the toughest parts of the pandemic.

In the last two months in Dallas, three new ghost kitchens have opened slinging the chewy pies. Even the well-renown and highly respected Cane Rosso restaurant group has gotten in the game with their new concept, Thunderbird Pies.

The popularity for this pie has also redoubled in Detroit, its home turf. One of the original makers in the game, Detroit Style Pizza Co., saw their sales triple overnight after popular internet pizza reviewer David Portnoy of  One Bite Pizza Reviews gave the pie a stellar rating of 8.5 out of 10.

Denver, Seattle, San Francisco, New York, and Tampa, among many other cities, have all seen Detroit style pizza restaurants open during the pandemic. This shows you how strong the trend is currently driving. Even major chains like Jet’s, Little Caesars, and Pizza Hut have tested DSP in regional markets, meaning it’s bound to keep gaining steam.

Pizza Trends

Photo courtesy of facebook.com/thunderbirdpies/

What’s Next?

Time will tell. But, for now we know that consumers will be sticking with comfort foods, especially going into the winter. While there’s a push for healthier options, there’s also a strong desire for decadence. Because of that, coupled with our deep love for familiar items with a twist, Detroit style pizza has staying power and it’s a trend worth jumping on.

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