Since the school year is coming to a close, www.allfoodmenuprices.org is offering free burgers today to teachers yet others who work with students. The free burger deal is for everyone who works for or with a school. Diners must show a legitimate school ID when ordering. The restaurant chain said the offer includes counselors, administrators, bus drivers as well as other educators employed by any level of school, from nursery school through senior high school and college. Retired teachers will get the free burgers too with an ID.
Diners can select from one of five Tavern Double burgers and bottomless steak fries. Burger options are the Cowboy Ranch Tavern Double and the Taco Tavern Double. The burgers usually opt for $6.99. Simultaneously, executives detailed initiatives to offset the damage by repricing the burger specialist’s everyday-value menu and pushing for further catering business.
Chain officials attributed the concept’s weak performance for your quarter ended July 15 to fewer guests dining on-site during peak periods, particularly at restaurants based in shopping centers. “The continued weakness inside our dine-in traffic caught us off guard, though it may be impossible to parse exactly how much is because of change in guest behavior and what is self-inflicted,” said CEO Denny Marie Post.
Red Robin’s fault is considerable, she indicated. Post explained that shoppers would visit a crush of individuals waiting for tables and move on. Even though they stuck it all out, she continued, tables were turned slower, cutting into guest counts on weekends. “Seventy-five percent of losing dine-in service came from peak periods,” she told financial analysts, as recorded in a transcript from SeekingAlpha.com.
The glut, subsequently, was the result of operational changes undertaken by Red Robin a couple of years ago, a recast known internally as Maestro, Post said. With setting up a new kitchen display system, two bussing positions were eliminated from each store. The purpose of collecting dirty dishes was shifted to servers.
“Unfortunately, we did not execute this well in any way. And it impacted us most during peak periods,” she said. “We have seen both our wait time and the number of people walking away without getting seated increase year over year.”
Guest-satisfaction gauges along with a surge in customer complaints pointed to some problem, but “we were lulled into complacency,” because ticket times improved, Post said. Overall, traffic was down .7%.
Upgrading hosts and hostesses.“Today, these hosts are asked to do much more as our takeout and third-party delivery businesses grow,” Post said, noting that employees holding the job tend to be very junior. “We are moving rapidly forward with required new host training and improved selection criteria.”
Increasing staff levels at peak times “to capture the unmet demand we have seen in our restaurant lobbies,” Post said. Yet she noted that Red Robin will continue to consider means of reducing labor from the adoption of the latest technology, especially in five Western states where labor pricing is increasing with a gallop. She did not name the states, but stated that Red Robin includes a preponderance of stores there.
Bolstering delivery and catering sales at mall units, which take into account 16% of the Red Robin chain. Post also mentioned the chance of trying new signage and site-specific deals to draw in more dine-in patrons. In particular, she noted that Red Robin is forming a catering sales team to advertise the chain’s signature Burger Bar, a mini buffet for ofosii and offices, as a delivery option.
Trying alternative modes of promotion, like discounts for individuals Red Robin’s loyalty program. Post noted that $1.99 kids meals were offered through the quarter 1 day every week, to great effect.
Red Robin CFO Guy Constant stressed that this chain does not believe dine-running a business was cannibalized by takeout and delivery, though he acknowledged, “we have almost no visibility to that as the third-party delivery proprietors don’t share their data.”
Although a lot of Red Robin’s Q2 woes were attributed to the drop-off in on-premise business, Post noted which a 2.6% decline in same-store sales was a direct result the decline inside the average check. The culprit, she said, was the achievements of the chain’s Tavern Double Burgers menu, a collection of burgers priced at the bargain rate of $6.99. The everyday-bargain items currently generate 15% of orders, up from 6% a couple of years ago, when advertising was put behind the array. The combination have also been raised by an expansion of the menu throughout the quarter to five burgers, from the three that have been offered during Q1.
Post explained the everyday value afforded through the menu has indeed drawn customers, but they tended to become current guests who traded down, rather than newcomers towards the brand. In reaction, Red Robin can vary the costs from the burgers contained in the line, and can move cautiously on expanding the menu. When a burger is put into the Tavern menu, another will likely disappear, Post said.