Monthly Archives: May 2021

DALLAS, Texas (PRWEB)
May 21, 2021

The industry posted stronger 2-year sales for the second consecutive month in April. Comparable store sales growth was 6.8% over two years in April, an improvement of 4.6 percentage points from the two-year growth of 2.3% reported in March. This is optimistic news for the industry as April turned out to be the best month for restaurants based on sales growth for more than three years.

Although sales were back to pre-pandemic levels, 2-year same-store traffic growth was -4.2% in April. Despite the 4.9 percentage point improvement over the previous month’s result, restaurant traffic growth is far from positive. Most of the growth in restaurant sales can be attributed to unusually high growth in average customer checks.

The data suggests that improvements in sales are supported by restaurants meeting or exceeding the expectations of most restaurant customers. The percentage of positive reviews and comments online for restaurants focused primarily on ‘food’ improved by 8 percentage points compared to April 2019. In addition, since August 2020, more than 50% of all food-focused reviews were rated as positive every month after a significant drop at the start of the pandemic.

Likewise, the percentage of reviews and positive comments focused on the restaurant’s “service” has improved by 5 percentage points over the past two years. Customers have been a little more forgiving of “service” than “food”. It was only from March to April 2020 that less than 50% of service-oriented reviews and comments were rated as positive. Each month since June, more than 50% of “service” reviews have been classified as positive.

Despite the strong sentiment about “food” and “service”, customers are not as enthusiastic about their “intention to come back” as they were two years ago. Reviews based on “intention to return” from customers fell 1.3 percentage points less positive compared to April 2019.

Join the dots

As sales and traffic improved in the first quarter, especially compared to the downturn the industry experienced in the fourth quarter of 2020, restaurants faced increased execution issues, particularly given the shortage of personnel facing the sector. More and more people are venturing into restaurants, which means juggling additional restaurant traffic with off-establishment orders that continue to capture a large portion of all sales.

For full-service restaurants, which rely much more on the dining experience than their limited-service counterparts, the improvement in traffic in the first three months of the year was accompanied by an erosion of net sentiment. “Atmosphere” compared to the previous quarter. .

A key factor in this drop in sense of “ambiance” in full-service restaurants appears to be based on customers’ perceptions of restaurant cleanliness. ‘Cleanliness’, a subcomponent of ambience, suffered a drop in net sentiment * of nearly 10 percentage points compared to Q4 2020, as well as toilets. In many cases, customers have been keen to remind the restaurant that their expectations for “cleanliness” are heightened due to the pandemic and have expressed fears that what they perceive as unclean could be a sign of problems with cleanliness. more important in the whole restaurant beyond what they could. see.

For limited-service restaurants, which have performed much better in terms of sales and traffic throughout the pandemic but continue to see restaurant sales decline by a larger margin, the first quarter of 2021 did not represent such a significant acceleration in terms of execution. As a result, Limited Services had less of a negative impact on their net sentiment during the quarter.

Limited-service restaurants continued to face an incredibly low net feeling based on “service”. “Service” had the highest percentage of negative mentions in Limited Service during the quarter (other attributes measured are “food”, “drink”, “ambiance” and “value”).

Common negative mentions related to “service” in limited services included calls from specific staff members who were rude or had a bad attitude. Another sore point was the speed of service, with customers often complaining of unusually long wait times. In many other cases, customers weren’t as nuanced in their descriptions – they simply complained about plain, straightforward “bad service”. With most restaurants operating under fewer staff than their pre-COVID standards, it’s no surprise to hear that employees just aren’t able to provide fast, friendly service every time.

Top DMA

As is common, Orlando has maintained its position at the top of customer sentiment among the nation’s largest markets based on many attributes of the restaurant experience. During the month of April, Orlando restaurant patrons expressed the most positive sentiment based on “food”, “service”, “value” and “intent to return” . This market is also one of the best performing based on same-store traffic growth over the past three months.

Tampa, Sacramento, Denver and New York were also among the strongest in terms of “food” sentiment in April. In fact, sentiment in New York City restaurants turned overwhelmingly positive after the pandemic, having been weak in the run-up to COVID. During the month of April, DMA New York had the most positive sentiment based on the restaurant’s “drink” and “vibe”. It was also among the top 4 markets in the country based on the “value” and “intention to return” of restaurants during the month. This recent positivity bodes well for New York restaurants, which have been hit hard by the pandemic.

COVID also continues to have an impact on “ambiance” restaurants, particularly with regard to “cleanliness”. The 5 DMAs in the country that suffered the biggest losses in restaurant traffic compared to the same period in 2019 are San Francisco, Sacramento, Los Angeles, New York and Boston. Large metropolitan areas have been among the most affected by the virus. But restaurant owners have largely taken the right steps to ensure the safety of employees and guests, and people visiting their establishments have noticed and expressed their approval. These five DMAs are also among the top 8 markets with the most positive guest sentiment “vibe” in April. As we have emphasized throughout last year, the “clean” remains the new “ambiance”.

* Net sentiment is a value representing the percentage of positive mentions minus the percentage of negative mentions for a specific attribute of the restaurant experience.

The Restaurant Guest Satisfaction Snapshot ™ (RGSS) is produced using data from Black Box Guest Intelligence ™. Guest Intelligence tracks over 190 brands to gauge customer satisfaction and is the only online tool that integrates with operational performance data to validate impact on financial performance. The dataset focuses on six key attributes of the restaurant industry experience: food, service, ambiance, beverage, value, and intention to return.

The RGSS algorithm determines the top ranked brands based on sentiment. Brands included in this monthly snapshot must have a total of at least 250 mentions for the month. Restaurants must also have a minimum number of units to be eligible. DMA rankings only take into account the 25 largest areas.

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As sales return to restaurants, operators face labor shortages and demanding customers, says Kelli Valade, CEO and President of Black Box Intelligence.

“Looking ahead, we see optimism for a faster sales recovery, positive sales growth compared to 2019,” said Valade, who heads the Dallas-based company that provides data and information on the benchmarks of workforce, customer, consumer and financial performance for the hospitality industry.

Related: Optimism continues as restaurant sales soar amid labor shortage

Valade was CREATE Digital Dive’s keynote speaker on Wednesday in a panel titled “Metrics that Matter: Best-in-Class Performance Results in a Post-Pandemic World” with Sam Oches, Editorial Director and Editor-in-Chief of Nation’s Restaurant News and Restaurant Hospitality .

Black Box released new data this week which showed that the restaurant industry had stronger sales for the second consecutive month in April than during the same period of 2019.

Black Box said two-year same-store sales growth was 6.8% in April, an improvement of 4.6 percentage points from the 2.3% two-year growth reported for March. It was the best month for restaurant sales growth in over three years, Black Box said, but it was mostly controlling growth.

“The traffic has not recovered,” Valade said, later adding, “It will probably take longer for the traffic to recover.”

Black Box has seen breakfast and mid-afternoon start to show strength in sales again, while late night continues to languish for the time being.

As restaurants increase capacity and reopen dining rooms amid easing restrictions related to the COVID-19 pandemic, many operators are finding workers are difficult to recruit and retain.

Among limited-service restaurants, which were able to retain most employees thanks to the pandemic restrictions, Black Box found that staff cuts between the average in 2019 and March 2021 were around 1.3 people among hourly workers and au pair among managers. But in full-service restaurants for the same average comparison period 2019 and March-2021, Black Box found that operators had cut staff by 9.2 people at the front of the house, cut 3.4 people to the back of the house and cut 0.2 among managers.

To cope with the tight labor market as they rehire, operators find the most effective tool is referrals from current employees, Valade said.

“Remember to lean back on those you have,” she said, “a kind of ‘love who you are with’. … They are the key for them to recommend to a friend and the key to keeping that flywheel running on referrals, which, again, since the beginning of time has been one of the best ways to find people.

Black Box Intelligence recently surveyed restaurateurs about the sources of hiring hourly workers that provide the best results. The result:

• 49% said they were referred by employees.
• 32% reported company website or job boards.
• 11% said social media.
• 5% said dates.
• 3% answered “other”.

And turnover remains high, she said, causing some operators to be reluctant to offer referral bonuses, but those referral bonuses can be staggered.

“If retention in the first six months is a challenge,” Valade suggested, “maybe consider pushing it back, giving a referral bonus immediately but pushing something beyond six months.”

Diversis Capital Partners acquired a majority stake in Black Box Intelligence earlier this year. This week, Diversis and Black Box announced that they will acquire restaurant industry benchmarking company MillerPulse LLC.

Black Box Intelligence currently tracks and analyzes nearly 300 brands, 2.4 million employees, 50,000 foodservice units and $ 76 billion in annual revenue.

Valade’s session was part of the CREATE digital dive on May 19, sponsored by Black Box Intelligence. Watch the full presentation of Valade on demand here.

CREATE sponsors:

Founding Sponsor: Johnsonville Foodservice

Gold Sponsor: Texas Pete and The Coca-Cola Co.

Silver sponsor: Ecolab

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

The pandemic is over, at least for the nation’s restaurant income line.

Food services and drinking places generated $ 64.9 billion in sales in April, according to retail sales data released by the US Census Bureau on Friday. This was up 3% from March and was more than double what it was in April a year ago – when the industry lost more than half of its sales as states closed theaters to eat to prevent the spread of COVID-19.

Perhaps more importantly, it is up 2% from April 2019, which means that the industry has effectively returned to a more normal state, at least in terms of the revenue it receives from customers for the food and drink.

Restaurant sales are picking up

Source: United States Census Bureau

Certainly, there is still a hurdle to clear before restaurants can truly say they are recovered. Sales remain about 5% lower than they should have been had there not been a pandemic and the industry has continued to grow at roughly the rate of inflation.

Still, this is a clear sign of the rapid and wide recovery in restaurants over the past two months. Consumers, armed with stimulus payments and excess unemployment benefits, spent in restaurants, ate inside casual eateries and lined up at the drive-thru nationwide.

All forms of spending in the industry appear to be up from 2019 levels. San Diego-based burger chain Jack in the Box said Thursday its same-store sales were up more than 16% from 2019 levels in its final quarter. Casual restaurant chain Cheesecake Factory said its April sales were up 7% from 2019 levels.

Third-party delivery also continued to generate strong sales, as did pizza chains that now believe they can maintain the strong sales they generated last year, even as consumers return to dine inside restaurants. .

Independent restaurants also had strong sales, at least according to major distributors US Foods and Sysco. “The independent restaurant sector surpassing 2019 sales levels in reopened markets is a positive result and a faster rebound than the industry expected,” Sysco CEO Kevin Hourican told investors earlier this this month.

According to Black Box Intelligence, same-store sales in April were 6.8% higher than in 2019, an improvement of 460 basis points from March.

Two-year comparable store sales have been positive for seven straight weeks, Black Box said on Wednesday, although it noted that they had slowed down during the week ended May 2, perhaps suggesting that the impact of stimulus payments is starting to fade.

Indeed, according to data research firm Facteus, restaurant sales rose from 21% more than in 2019 during the week ended April 18 to 12% more during the week ended May 9. . Fast food restaurants slowed from 27% to 20%.

Yet soaring sales have created intense demand for labor as restaurants struggle to recruit staff, while creating headaches in the supply chain as producers – many of whom have their own needs. own labor challenges – struggled to produce enough things like ketchup packets and chicken wings.

Pub and restaurant sales rebounded in April, reaching nearly 75% of pre-pandemic levels in a surge of confidence for the sector before it fully reopened on Monday.

Pub and restaurant groups managed saw a 26% drop in like-for-like sales last month compared to April 2019.

The period covers three full weeks of field service only in England as well as shorter exchanges in Scotland and Wales, indicating the level of consumer demand.

Traders benefited from generally good weather and strong consumer confidence during the first half of trading, although low temperatures and rain dampened sales towards the end of the month, according to the latest tracker of the stock market. CGA sales.

Data released this morning shows pubs have outperformed restaurants since reopening, in part thanks to greater availability of outdoor space.

Pub sales in April were down 21% from April 2019, compared to a 30% drop for restaurants. Bars were the weakest segment, with comparable sales down 39%.

Based on total sales, with the majority of locations still closed, groups saw a 60% drop in April 2021 compared to April 2019. Restaurants outperformed pubs on this metric, due to strong sales of delivery and take-out.

“The managed groups did their best to negotiate opportunities in April, amid tight restrictions and the vagaries of the UK spring weather,” said Karl Chessell, head of hotel operators and catering at the firm of CGA business analysis consulting.

“They were very ingenious in their use of limited space, and for pubs in particular, it was a good springboard for a more complete reopening from May 17th.

“But the drop in sales of more than half over the past 12 months is a reminder of how badly the industry has been hit by the lockdowns and restrictions.

“While consumers are eager to return to the hospitality industry, the road to recovery will clearly be long and uneven, and the sector will need sustained government support if it is to help revive the UK economy on the market. rest of 2021. “

Managed pub and restaurant groups saw a 60 %% drop in total sales in April compared to the same month in 2019, according to the latest edition of the Coffer CGA Business Tracker.

Restaurants performed slightly better than pubs, with declines of 51% and 67% respectively, due to strong delivery and take-out sales.

At constant scope, with a majority of sites still closed, the groups also recorded a 26% drop in sales in April 2021 compared to April 2019. The figure covers three full weeks of foreign service only in England as well as trade in Scotland and Wales, and represents a “solid return” to trade for the sector.

According to the CGA, operators benefited from generally mild weather and strong consumer confidence during the first half of trading, although low temperatures and rains held back sales towards the end of the month.

During this period, the tracker shows that pubs have outperformed restaurants since reopening, in part thanks to greater availability of outdoor space. April sales for pubs were down 21% from April 2019, compared to a 30% drop for restaurants. Bars were the weakest segment, with like-for-like sales down 39%.

Karl Chessell, Business Unit Manager – Hotel and Catering Operators, EMEA at CGA, said:

“They were very ingenious in their use of limited space, and for pubs in particular, it was a good springboard for a more complete reopening from May 17th. But the drop in sales of more than half from the pre-pandemic 2019 benchmark is a reminder of how badly the industry has been hit by lockdowns and restrictions. “

He added: “Although consumers are eager to return to the hospitality industry, it will clearly be a long and uneven road to recovery, and the sector will need sustained government support if it is to help revive the industry. ‘British economy over the remainder of 2021. “

Mark Sheehan, Managing Director of Coffer Corporate Leisure, said: “This like for like is a testament to the creativity of hospitality. The imagination to create outdoor spaces has been inspiring and plays on the strengths of the sector.

“The support from consumers across the country shows the appreciation of the industry in general and operators individually. There is no doubt that there has been pent-up demand and it will take some time for companies to understand where the levels of trade really are. “

Paul Newman, Leisure and Hospitality Manager, RSM, added: “Operators will be greatly encouraged by the response they have had to the reopening of their outdoor spaces and will now turn their attention to welcoming customers to inside from Monday. Many companies remain in a precarious financial situation and are unlikely to return to profit before June 21, when all restrictions related to Covid-19 will finally be lifted.

May 6 (Reuters) – Beyond Meat Inc (BYND.O) reported a larger-than-expected quarterly loss on Thursday as the plant-based meat maker incurred higher transportation costs, spent a lot of money on test new product launches and sold less to the pandemic. hit the restaurants.

Shares of the California-based company fell nearly 7% amid the extended trading.

The company, which sells fake meat in more than 100,000 outlets worldwide, took advantage last year when consumers stocked bulk packages of its “burgers” in their freezers when ordering. at home across the United States.

However, restaurant sales took a hit as many closed. Chief Executive Ethan Brown said on a call with analysts that he was seeing a “slow thaw” of this trend.

Despite this, Beyond Meat expects the recovery of its foodservice business to lag the foodservice industry as a whole as it sells to many places where capacity is recovering more slowly, including venues. sportsmen.

As restaurant sales declined, the company accumulated more pea protein, resulting in increased warehousing costs, he said.

RIVAUX CHOMING

Competition is increasing among manufacturers of plant proteins. In 2020, plant-based retail sales in the United States reached $ 7 billion, up 27% year on year, according to the Good Food Institute and the Plant-Based Foods Association (PBFA).

Impossible Foods Inc, Beyond Meat’s biggest rival, is gearing up for a public listing that could value the company at around $ 10 billion or more, Reuters reported in April. Read more

Brown said Beyond Meat’s “main competitor” was cutting two-thirds of its sales and said it “was not going to react and get into some kind of surrender war with them.”

Beyond Meat expects second-quarter revenue of between $ 135 million and $ 150 million, an increase of 19% to 32%. Analysts were forecasting revenue of $ 142.8 million, according to IBES data from Refinitiv.

In the first quarter ended April 3, net sales increased about 11% to $ 108.2 million, the missing estimate of $ 113.7 million.

Excluding one-off items, it lost 42 cents per share, more than analysts’ expectations of 19 cents.

Its net income fell to a net loss of $ 26.8 million from a profit of $ 1.8 million a year ago.

Report by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila

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