Dine Brands Global Inc., the company behind Applebee's and IHOP, and Brinker International Inc. the owner of Chili's, said that more and more diner are reported to increasing turn to delivery and takeout options that help with the social-distancing measures of Covid-19 that is keeping their dining rooms empty. With the fall in traffic in their restaurants across locations, they are trying to earn as much as they can from the implemented delivery and take-out services.
Same-store sells at Applebee's fell to about 11% in the first quarter and 15% at IHOP, according to Dine. As well as for Brinker's Chilis who fell by 5% for it first quarter at the end of March. With the closure of their dining rooms being the main reason for a flatten curve for their drops in sales, they also have a concern about the significant impact it may impose after the Covid-19 pandemic ends, since not everyone will be comfortable in entering restaurant with other people.
With both companies bolstering their efforts to sell more food to consumers, they have focused most of their attention towards pick up or delivery, with this implemented Dine Inc. has seen a jump of 23% in sales and Brinker Inc. jumping up to 29%, although both stocks for each company has dropped more than 40%.
With most of the profits now coming from pick up or delivery, these companies are re-configuring takeout areas at its restaurants to handle these higher volumes of orders. Both companies are now preparing to reopen dining rooms in part of the country that is starting to reopen things.
Article: https://www.wsj.com/articles/owners-of-applebees-chilis-report-pick-up-delivery-gains-as-dine-in-remains-off-the-table-11588184178?mod=business_lead_pos12
hi Ib,
ReplyDeleteYour article was interesting to read. Many dining places are either struggling or thriving from the pandemic. In my case I have seen alot of dining places do take out and even deliver. I think if they didn't manage a way to adapt they would be out of business.