Edit ModuleShow Tags
Edit ModuleShow Tags

Restaurants Cram Years of Innovation Into 3 Months


Adobe Stock

During a day-long virtual event that included delivery, technology and restaurant experts, analysts from Cowen’s Restaurant & Food Technology Summit dove into the latest metrics showing where restaurants are heading after the worst impacts of the pandemic recede. One underlying theme, which has become a common refrain, is that the restaurant industry has seen two to three years’ worth of innovation accelerated over these last three months.

Recapping a fireside chat with Shake Shack, the popular burger brand reported it has seen digital sales comprise 84 percent of its sales mix throughout April. The company expects that such a high level of digital sales is likely unsustainable, but added it also expects the share of sales coming through digital channels to “substantially outpace pre-COVID-19 levels.”

Blaze Pizza CEO Mandy Shaw said that in stores where dining rooms are reopening, the brand is regaining non-digital business while maintaining the elevated level of digital sales seen throughout the pandemic.

Third-party delivery panelists were unanimous that a potential Uber/Grubhub tie-up was a logical move given the need of industry consolidation. They posited that any potential acquisition would be a “validation of third-party delivery’s long-term importance.”

Another trend that’s widely expected to persist is the popularity of drive-thru locations, which make it easy for brands to streamline their curbside and takeout operations at higher volumes than locations without the car-friendly lanes. Looking ahead, presenters speculated that many types of restaurant real estate would see rent deflation, with a big exception for drive-thru-enabled locations that are expected to be more in-demand than ever.

For locations without a drive-thru lane, cutting a hole in one wall to add a pickup window is another trend that’s changing real estate and creating a more natural system for handling sustained curbside sales.

On the digital side of the industry, presenters predicted that payment through digital wallets and tap-to-pay options are here to stay, as most consumer surveys show that consumers will be leery about any guest touchpoints even after the worst of the pandemic has passed.

Kitchen United CEO Jim Collins and Zuul Kitchens CEO Corey Manicone both said their respective ghost kitchen brands are seeing “exponential inbound interest” from prospective restaurant tenants, which would represent yet another trend acceleration in enabling restaurants to add delivery- and takeout-only locations in desirable neighborhoods and trade areas.

Looking at individual dayparts, as most restaurant brands report improved sales during April and May (compared with a March that was terrible across the board for most restaurants), dinner sales have rebounded better than breakfast, which continues to lag lunchtime and dinner business.

A version of this story originally appeared in Food On Demand, a sister publication to Franchise Times.

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags

Covers everything from good news to bad judgment

About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at




Atom Feed Subscribe to the Franchise Times News Feed »

Recent Posts