![]() ![]() In 2016, off-premises represented just 5.7 percent of Red Robin’s business.ĭelivery, thanks to three major aggregators, currently accounts for more than 5 percent of sales. This past year, it rose another 28 percent to 12.4 percent, or $163 million. It mixed 13.9 percent of the company’s total food and beverage sales-a pretty consistent theme over the past two years (the segment boosted 37.3 percent, year-over-year, in Q3).įor all of fiscal 2018, off-premises hiked 31.5 percent versus 2017 and stood at 9.9 percent of sales. Red Robin’s off-premises business, including catering, jumped 26.9 percent in Q4. That’s why Donatos’ 3.5 percent traffic result is something worth chasing through a broader rollout. While that latter goal is important to the improving the health of Red Robin’s business, margins, and traffic base, it was always going to hit transactions. READ MORE: Red Robin looks to recapture the soul of the brand The company’s 3.2 mix increase was driven by Red Robin’s ongoing strategy of lowering discounted Tavern Burger frequency in favor of higher-margin Gourmet and Finest options. Q3’s result was comprised of average check of 4.7 percent and overall pricing, net of discounts, of 1.5 percent. The important trend to note here is that Red Robin’s recent positive comps don’t reflect a significant upward move in traffic. Traffic fell 3.1 percent in Q3, 6.4 percent in Q2, and 5.5 percent to start the fiscal calendar.Īssuming the preliminary results stick, Q4’s same-store sales figure gives Red Robin consecutive positive periods following six straight red quarters. The brand released preliminary fourth-quarter results ahead of the conference, noting same-store sales gains of 1.3 percent, year-over-year, and a 3.4 percent decrease in guest counts. That’s a sizable boost given Red Robin’s trends in recent quarters. The company said it saw average comparable traffic lifts of 3.5 percent in test markets. The company listed a few reasons Donatos fits Red Robin as a menu accompaniment, but let’s start with the metrics. Notably, it plans to expand the connection, which it refers to as “nested” inside Red Robin, not co-branded, to 100 locations in 2020. On January 14 at the ICR Conference, 556-unit Red Robin explained the partnership in detail for the first time. There’s also a Red Robin special-the Whiskey River BBQ pizza that plays off one of its staples. ![]() Red Robin servers touted new options to customers: a 7-inch, 10-inch, and 14-inch (plus a gluten-free 12-inch) collection of pizzas focused on Donatos core options, like the Founder’s favorite, edge-to-edge pepperoni, Serious Meat, and Very Veggie. Restaurants had to reconfigure kitchens to allow for an additional oven, but otherwise the disruption was minimal. Essentially, Red Robin brought a scaled-down Donatos menu into select units. The company didn’t promote the partnership, electing instead to address operational kinks and gather customer response. Now mired in a broad comeback effort, the burger chain is ready to lift the lid on the program-something it believes could serve as a crucial sales pillar and point of differentiation.Įarlier in 2019, Red Robin engaged Ohio-based Donatos, a 161-unit pizza chain with stores across nine states. And it was something CEO Paul Murphy inherited when he joined the burger chain in September, ending a lengthy search that stretched back to Denny Marie Post’s April retirement. By summer, it spread to roughly 24 restaurants. ![]() It began as a quiet test for Red Robin at a lone unit in Cleveland and three in Colorado Springs. ![]()
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