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Ongoing, Fact-Based Insights on COVID-19

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Ongoing, Fact-Based Insights on COVID-19 8th Edition—Week Ending May 8, 2020 Ongoing, Fact-Based Insights on Abbreviated version COVID-19 From a Trusted Source Tyson Foods This report is authorized for use solely by the parties noted in the written contract. No part of the publication may be reprinted, redistributed or put into an electronic or information retrieval system without prior permission of Technomic, Inc. © 2020 Technomic, Inc. Innovative Operator Responses and Reopening Changes © 2020 Technomic, Inc. 2 OPERATOR IMPACT Innovative Operator Responses Restaurants ramp up off- operators in the face of social added an Italian twist to complement Instagram wine classes. Each week a premise offerings distancing. Fat Brands opened it’s first their pizza operation. Their version of new topic is covered and is saved to the ghost kitchen in Chicago. Consumers chicken sandwiches uses Calabrian Instagram account. This week, the topic As the pandemic continues, operators will now be able to simultaneously order chiles to add heat. was the history and use of the spouted are realizing how essential off-premise menu items from Fat Brands’ Fatburger, wine vessel as well as a discussion and service is to restaurants. This week, Buffalo’s Express and Hurricane Grill & Instagram takeover tasting of Spanish Tzakoli wines. Shake Shack acknowledged the need Wings concepts. This ghost kitchen is Instagram continues to be a powerful for pick-up windows given that most part of larger development between Fat Zoom dinner parties locations are in densely populated Brands and Epic Kitchens, which is set tool of connection between operators metropolises and none of the locations to open 20 ghost kitchens throughout and consumers. A small chain based in This week, Spago in Los Angeles sold have a drive-thru. With the installation Chicago, Boston, Philadelphia and New New York City, Black Tap, is known for out a virtual dinner party for which of pick-up windows, Shake Shack York over the next two years. its extravagant milkshakes. Although tickets were $175 per person. Guests hopes to improve flow and encourage Black Tap had to close its doors, its still preordered their meals and then had ordering online in advance. At some Prior to COVID-19, Square Pie Guys, a engaging with customers through a the option to pick them up or have them locations, the pick-up lane might be Detroit-style pizza concept, was looking milkshake creation competition on delivered between 2 p.m. and 4 p.m. open to delivery drivers as well. to expand its business through ghost Instagram. The chain is asking The dinner began at 6:30 p.m. with a kitchens. Now during the coronavirus, in consumers to download a template, mixologist demonstrating how to make Ghost kitchens appear an effort to keep their staff working, chef sketch their shake invention and post it cocktails with the provided ingredients. and owners of Square Pie Guys started to Instagram with the chance to win Chef and owner Wolfgang Puck then As operators begin to ponder Hetchy’s Hots. The ghost kitchen offers Black Tap swag. did a cooking demonstration, and reopening, they are realizing Nashville–style hot chicken sandwiches guests enjoyed appetizers, a main consumers will likely continue to be and launched April 27. Nashville hot In Chicago, the wine director of course and desserts. cautious of dining in. Ghost kitchens are chicken has become increasingly Spiaggia, a fine-dining Italian concept, becoming popular solutions for popular in the Bay Area, but the chefs is engaging with customers via © 2020 Technomic, Inc. 3 OPERATOR IMPACT Shifting to Reopening Starbucks aims to open 85% that restaurants could expand their roasted chicken concept aligns well with blue gloves instead of clear gloves, as of stores this week outdoor dining spaces. The streets will traditional off-premise service. blue is easier for customers to see from remain closed for 14 days as the city a distance. Staff will also be required to Starbucks is adjusting to make the has suspended certain code and permit In Kentucky, the owners of the Agave & wear masks. Keeping the consumer transition to the “new normal” easier on requirements temporarily. Some areas Rye Tequila and Bourbon Hall are journey in mind, DeSano’s also plans to customers. The chain is optimizing the of the city decided not to close streets opening an entirely new concept they place hand sanitizers in high-touch app experience for curbside pickup and as restaurant owners in those areas feel will succeed. The concept, Papi areas such as near the front door and entryway handoffs. Starbucks is shared their plans to use parking Jocho’s Street Dogs, opened on Cinco near the cashiers. planning to improve the drive-thru spaces for open-air dining. De Mayo with a carryout- and delivery- experiences by enabling ordering ready menu featuring Mexican-inspired through Siri and primarily operating with Reading the room leads to street hot dogs. The owners decided to cashless transactions. The coffee chain rebrand launch the restaurant amidst the is also hinting at further investment in pandemic due to the current consumer the Starbucks Deep Brew program, In Grand Rapids, Mich., the Essence preference of carryout and delivery. which focuses on artificial intelligence Restaurant Group has decided to innovations. rebrand one of its concepts. The once Nashville pizzeria prepares high-end, farm-to-table restaurant to reopen Tampa gets creative with Grove is being replaced by Jimmy street closures Berger’s Chicken Shack. The restaurant Thursday it was announced that group’s managing partner realized that Nashville restaurants will be reopening During typical spring seasons, dining with social distancing protocol and the on Monday. The owner of DeSano’s outside is commonplace for customers small interior of the restaurant, Grove Pizzeria has been working on multiple in Tampa, Fla. In order to help wouldn’t be able to survive post- initiatives to ensure reopening goes as restaurants recover while maintaining pandemic. Additionally, Grove’s menu smoothly as possible. In order to create social distancing, the Tampa mayor was better suited for dining in as a comfortable atmosphere for closed six different areas of the city so opposed to carrying out, whereas a customers, DeSano’s is planning to use © 2020 Technomic, Inc. 4 Impact on Services Offered © 2020 Technomic, Inc. 5 OPERATOR IMPACT Many operators will % OF OPERATORS OFFERING THE FOLLOWING SERVICES IN 2019 likely have to rethink 62% FOH self-service Self-service beverage station 59% stations in a post- 68% COVID world 54% Self-service condiment/topping station 46% With self-serve beverage 66% stations, self-serve condiment stations, and salad/buffet bars 53% being utilized by at least 50% Salad or buffet bar 42% of operators surveyed, many 71% operators will have to address removing or altering at least 49% one component of their front- Full adult beverage bar 63% of-house. 27% 9% None of these 8% 10% Total Restaurants Beyond Restaurants Base: All operators Q: Which of the following services did you offer your patrons in your operation in 2019? Note: Question asked week beginning May 3 © 2020 Technomic, Inc. 6 OPERATOR IMPACT Half of operators are % OF OPERATORS USING GHOST KITCHENS FOR SOME OR ALL DELIVERY ORDERS utilizing ghost kitchens for delivery I do not use or operate a ghost kitchen 49% orders With a turn to off-premise dining and I have partnered with a ghost kitchen 15% the long-term repercussions of operator for some of my delivery orders COVID-19 on the dining experience, operators are rethinking their footprint and overhead costs and I operate my own ghost kitchen for all of my increasingly utilizing ghost kitchens. 15% Twenty-seven percent (27%) of delivery orders operators say they operate their own ghost kitchen, while slightly less (24%) have partnered with a ghost I operate my own ghost kitchen for some of 12% kitchen operator my delivery orders Although less than 10% of operators have partnered with a ghost kitchen I have partnered with a ghost kitchen for all of their orders, QSR operators 9% operator for all of my delivery orders are more likely to have done so. Higher among QSR operators 20% Base: All operators Q: Are you currently using a ghost kitchen for some or all of your delivery orders? Please select one. Note: Question asked week beginning May 3 © 2020 Technomic, Inc. 7 Food and Adult Beverage Promotions © 2020 Technomic, Inc. 8 OPERATOR IMPACT TOP SEVEN FOOD/MEALS MOST SUCESSFUL MENU Operators continue to OPERATORS ARE PROMOTING PROMOTIONS promote comfort 33% foods and family-style Comfort foods 45% 68% 43% Family-style meals/food meals to their guests 37% Family-style meals/ 39% that can be shared 40% food that can be shared Since the start of April at least a 39% 31% third of operators have consistently 21% promoted comfort foods or family- Healthy foods 30% style meals. 32% 47% 23% Despite initial success with these Grab-and-go 24% Comfort foods 28% promotions, operators may be 32% 28% seeing diminishing returns on them, 29% as the number of operators pointing Ready-to-heat meals 33% 31% to these styles of food as their most successful menu promotion has 16% 53% seen a steep decline. However, this Larger portions 21% 27% Grab-n-go 16% is likely due to operators experimenting with multiple 25% Value items 22% 21% promotions as shown by an increase 26% in promotions across product types. Week beginning April 5 Week beginning April 19 Week beginning May 3 Base: All operators Q: How would you describe the types of food and meals you are promoting/offering specifically in response to the COVID-19 crisis? Select all that apply.
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