Riley Wingerd’s Post

Ron Ruggless Nation's Restaurant News writes "The restaurant company’s CEO Michael Skipworth says ‘indulgent’ occasion delivers for customers" "Wingstop Restaurants Inc. Inc. posted domestic same-store sales growth of 21.6%, easily eclipsing major restaurant players, the company said Wednesday in releasing earnings for the first quarter ended March 30. Dallas-based Wingstop said the 21.6% domestic same-store sales increase was driven mostly by transaction growth and reflected consumers’ willingness to spend discretionary dollars with the brand. Michael Skipworth, CEO and president, said on an analysts’ call: “We believe that indulgent Wingstop occasion delivers upon both quality and value and has us uniquely positioned.” Skipworth said the company’s first quarter performance led it to raise its 2024 guidance from mid-single digits to low double-digit same-store sales growth. Average unit volumes are about $1.9 million, he added, quickly approaching a target of $2 million. “It's an incredibly exciting time at Wingstop as we scale toward our vision of becoming a top ten global restaurant brand,” he said. However, Skipworth said the company’s strategic pillars remained: One of those was a proprietary technology stack called MyWingstop that began rolling out in April after testing in a small number of stores, he said. “We are just scratching the surface on the opportunity to leverage our digital database as our restaurant AUV is expanded digital sales can also continue to increase — now accounting for 68% of sales in Q1,” Skipworth said. During the first quarter systemwide sales grew by 37%, Skipworth added, “which delivers additional firepower in our advertising fund to invest meaningful dollars behind our opportunity to expand brand awareness, “Our increased media investment is providing new opportunities such as advertising in the NFL playoff and becoming the presenting sponsor for the National Basketball Association (NBA)'s Wednesday primetime matchup,” he said. For the first quarter ended March 30, Wingstop’s net income increased to $28.7 million, or 98 cents a share, from $15.7 million, or 52 cents a share, in the prior-year period. Revenues increased to $145.8 million from $108.7 million in the same quarter last year...Clickthru to read more." https://lnkd.in/g5XiPB8d #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr

🚨: 2x Banger I use a simple formula to evaluate potential restaurant clients that want to scale. The higher the banger the easier for #franchising AUV : Buildout > 1.5 (average unit volume or annual revenue for the restaurant) : (required investment to open a location) Using Qdoba Restaurant Corporation corporate locations into my formula: $1.6M : $800k = 2 banger! Look out for a Qdoba near you! #qsr #franchiseopportunity #scaleyourbusiness #restaurants

Increases in labor costs, higher interest rates, negative same-store sales, years of negative EBITDA, flawed real estate strategies, high food prices, customers cutting down on dining out, and COVID lingering government support withdrawal are some of the factors chains and franchisees were unable to surpass and leading to a soaring number of restaurant bankruptcies in 2024. From the restructuring of large chains such as Red Lobster, Rubio’s, and Tijuana Flats on the one hand, and franchisees unable to make the unit-economics work (including franchisees for Popeyes, Arby’s, Pizza Hut, and Subway) on the other, bankruptcies can be seen across categories and segments. We are seeing this play out in many geographies. Despite the pain and pressures of challenging conditions, it seems like in some organizations it hurts less to remain indecisive — holding one's breath waiting for the situation to improve itself – than it does to bite the bullet on bolstering the team, capabilities, competencies, and critical thinking that’s needed to confront the issues head-on. It somehow hurts less to lose millions slowly over many months than to plunk down a few hundred thousand to get the shot in the arm that’s so desperately needed. Our advice? Waiting may hurt less, but it costs a lot more in the long run. #restaurants #bankruptcies #strategy

Insightful! The issues facing the restaurant industry are certainly daunting, and it's clear that traditional approaches are struggling to keep up. But what if the solution lies outside the industry altogether? Automation could be that "shot in the arm" many QSRs and franchisees need. By leveraging automation technologies like robotic arms for cooking or order management systems, restaurants can manage to mitigate high labor costs and improve operational efficiency—helping to offset those high food prices and fluctuating sales. We’ve seen this kind of innovation transform industries like manufacturing and logistics, where automation solved problems that seemed insurmountable at the time. It's about adapting best practices from other sectors to redefine what's possible in the restaurant business. It may seem like a leap, but investing in the right tech today could be the key to surviving—and thriving—in tomorrow’s market. 📈🔄 #Automation #QSR #RestaurantIndustry #Innovation

So true Aaron. The biggest barrier is the fear to change a business model that has been successful in the past and waiting for circumstances to go back to ‘how it always was’ for fundamental issues to get resolved. This is a classic case of ‘slowly … slowly… and suddenly’.. where the business is suddenly no longer viable. Intellectual curiousity to hunt the trends that are already taking root, evaluating it with the lens of ‘ what can it possibly become in future’ and catalyzing change and embracing it will certainly help in the evolution.. and not get stuck in the strife for survival.

I'm honestly not sure what to make of this yet. There are four parts: “flexible integration,” where a restaurateur could open a Boston Market within their existing restaurant, deli, gas station, or other venue. No franchisee fees. The other three are comprehensive support, a nontraditional store model, and expansion potential. Basically, we're talking opening a franchise without the typical buy-in. But how would you technically define this approach? Are there disclosure documents, etc.? We'll have to see how it rolls.

As a food entrepreneur and closet marketeer, I see challenges with this partnership: 1. Krispy Kreme donuts are best served warm. Their red neon light created a cult like following. But when they over expanded years ago into gas stations and c stores the light wasn’t shining anymore. At that point they became just another donut and cheapend their brand. 2. It will be a gargantuan, if not impossible task to service all 13,000+ McDonald's restaurants with a “fresh” donut. I watch it everyday here in the Northeast as they try to supply local supermarkets with fresh donuts. Nobody is thinking about donuts in the afternoon or at dinner time - the window is 7am to 9am. This means a “thaw and sell” donut will have to be developed for this partnership to even have a chance of survival. But again, it goes against what KK is known for. 3. McDonald's is arguably one of the most recognized brands in the world. However, they’ve come under fire recently for their pricing and customer service. I’d double down my resources right there. Focus on making the customers feel special when they walk in the door and give them a meal that provides value - as they created the “value meal” concept. The introduction of donuts might grow their TikTok followers, but it won’t add to the bottom line. Save that dough. PIE THAT BRINGS PEOPLE TOGETHER®️ #qsr #cpg #fastfood #dessert #marketing #mrtods #entrepreneurship

TGI Friday’s has closed 36 U.S. #restaurants and agreed to sell eight more to former CEO Ray Blanchette in the latest phase of what it’s calling “an era of transformation.” SCA Technologies supports transformation efforts with reporting digitized by region, by category, and by #franchise to accurately prioritize operational improvements and #menu modifications. #supplychainmanagement #endtoendsolutions https://lnkd.in/eSMfPUCP

Joanna Fantozzi at Nation's Restaurant News informs us that Florida-based breakfast and brunch chain beats $1 billion sales and also reported 5% same-store sales growth despite traffic declines for the fourth quarter ended Dec. 31st. "First Watch Restaurants Group continues to reach fiscal milestones for the growing breakfast and brunch chain. The Bradenton, Fla.-based company announced it had surpassed $1 billion in sales by the end of the fourth quarter ended Dec. 31, nearly doubling its sales total since 2019. First Watch also reported 5% same-store sales growth amid 1.3% in-store restaurant traffic declines related to an expected decline in off-premises sales. Traffic growth overall was up 7.5% for the year, despite the dip in traffic toward the end of the year. “Having grown to 524 restaurants, we recognize and embrace our leadership position in daytime dining,” CEO Chris Tomasso said during Tuesday’s fourth quarter earnings call. “We were an early pioneer and first mover in this now well-established segment. We'll continue to maximize our first-mover advantage, leverage our significant scale and lean on our 40-year operating history of focusing on superior execution and quality strategic growth to widen our competitive moat..." #entrepreneur #entrepreneurship #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Franchise Pipeline Franchise Development Outsource RAAMP Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Landrum Randolph https://lnkd.in/ghR_574s

Winners and Losers of a Bizarre Earnings Season This earnings season has been anything but normal for the restaurant industry. Winner: Chili’s Chili’s turned heads this season, posting an incredible 14.8% same-store sales surge. Their revamped menu featuring hits like the Big Smasher Burger and Nashville Hot Mozz has resonated with customers, setting them apart in a crowded market. Loser: Every Other Grill Chain Other bar-and-grill stalwart stumbleds. Applebee’s reported a decline in sales, grappling to maintain its consumer base amidst increased competition. Red Robin struggled notably with foot traffic despite attempts to modernize their appeal, and TGI Fridays faced delays in their anticipated sale. It’s a stark reminder of how rapidly consumer preferences can shift and how critical it is for these chains to innovate continuously. Winner: Fast-Casual Chains The fast-casual sector is experiencing a renaissance. Wingstop broke records with outstanding sales growth, thanks in part to their mastery of digital ordering and delivery. Cava and Sweetgreen both saw impressive traffic increases, capitalizing on the growing demand for healthy, quick options. Chipotle maintained its momentum with steady growth, benefiting from its emphasis on fresh ingredients. Even Noodles & Company registered gains, signaling a broad-based fast-casual boom. This sector’s success may be attributed to its ability to blend convenience with quality, meeting evolving customer expectations. Winner: Domino’s Domino’s has reclaimed its throne in the pizza market, achieving profitable traffic growth and regaining lost market share. Their focus on technology-driven convenience, from seamless online ordering to efficient delivery systems, has paid off handsomely. Loser: Eatertainment Giant Topgolf Topgolf, once considered a pioneer, is now grappling with persistent sales issues. The anticipated spinoff by its parent company has been called into question as financial performance lags behind expectations. This slowdown underscores the challenges of sustaining growth in the experiential dining niche, particularly as economic headwinds affect discretionary spending. Winner: Taco Bell Taco Bell nailed the balance between innovation and value with their Cantina Chicken, achieving a notable 5% same-store sales growth. Their menu strategy, which emphasizes unique, crave-worthy items at competitive prices, continues to draw customers. This performance highlights Taco Bell’s adeptness at responding to consumer trends without compromising on their brand identity. #franchise #franchising