Since the school year is coming to a close, Red Robin menu with prices offers free burgers now 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 deal includes counselors, administrators, bus drivers along with other educators employed by any level of school, from nursery school through secondary school and college. Retired teachers can get the free burgers also having an ID.
Diners can choose from certainly one of five Tavern Double burgers and bottomless steak fries. Burger options are the Cowboy Ranch Tavern Double and also the Taco Tavern Double. The burgers usually go for $6.99. Simultaneously, executives detailed initiatives to cancel out the damage by repricing the burger specialist’s everyday-value menu and pushing for additional 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 located in shopping malls. “The continued weakness inside our dine-in traffic caught us off guard, while it is impossible to parse exactly how much is due to alternation in guest behavior and precisely what is self-inflicted,” said CEO Denny Marie Post.
Red Robin’s fault is considerable, she indicated. Post explained that shoppers would view a crush of individuals waiting around for tables and leave. Even if they stuck it out, she continued, tables were turned more slowly, cutting into guest counts on weekends. “Seventy-5 percent of the loss of dine-in service has come from peak periods,” she told financial analysts, as recorded in a transcript from SeekingAlpha.com.
The glut, consequently, was the result of operational changes undertaken by Red Robin 2 yrs ago, a recast known internally as Maestro, Post said. With setting up a brand 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 witnessed both our wait time and the number of people walking away without being seated increase year over year.”
Guest-satisfaction gauges along with a surge in customer complaints pointed to a 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 a lot 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 within our restaurant lobbies,” Post said. Yet she noted that Red Robin continues to look at methods for reducing labor from the adoption of the latest technology, specifically in five Western states where labor pricing is increasing at a gallop. She did not name the states, but claimed that Red Robin has a preponderance of stores there.
Bolstering delivery and catering sales at mall units, which take into account 16% from the Red Robin chain. Post also mentioned the potential of trying new signage and site-specific deals to draw more dine-in patrons. Particularly, she noted that Red Robin is forming a catering sales team to market the chain’s signature Burger Bar, a mini buffet for ofosii and offices, being a delivery option.
Trying alternative modes of promotion, including reduced prices for individuals Red Robin’s loyalty program. Post noted that $1.99 kids meals were offered during the quarter 1 day a 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 particular since the third-party delivery proprietors don’t share their data.”
Although most of Red Robin’s Q2 woes were attributed to the drop-off in on-premise business, Post noted that the 2.6% decline in same-store sales have also been a consequence of the decline in 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 increase of the menu through the quarter to five burgers, from the three which were offered during Q1.
Post explained the everyday value afforded through the menu has indeed drawn customers, nevertheless they tended to be current guests who traded down, instead of newcomers to the brand. In reaction, Red Robin will be different the prices from the burgers contained in the line, and definately will move cautiously on expanding the menu. If a burger is added to the Tavern menu, another will more than likely come off, Post said.