Since the school year is coming to a close, Red Robin menu with prices is providing 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 valid school ID when ordering. The restaurant chain said the deal includes counselors, administrators, bus drivers and other educators employed by any level of school, from nursery school through senior high school and college. Retired teachers will get the free burgers also with the ID.
Diners can decide on certainly one of five Tavern Double burgers and bottomless steak fries. Burger options range from the Cowboy Ranch Tavern Double and also the Taco Tavern Double. The burgers usually go for $6.99. Simultaneously, executives detailed initiatives to offset the damage by repricing the burger specialist’s everyday-value menu and pushing for more catering business.
Chain officials attributed the concept’s weak performance for the quarter ended July 15 to fewer guests dining on-site during peak periods, particularly at restaurants based in shopping centers. “The continued weakness in our dine-in traffic caught us unawares, while it is impossible to parse exactly how much is because of alternation in guest behavior and what exactly 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 men and women waiting for tables and move on. Even if 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 has come 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 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 function of collecting dirty dishes was moved to servers.
“Unfortunately, we failed to execute this well whatsoever. And it also impacted us most during peak periods,” she said. “We have witnessed both our wait time as well as the amount 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 motivated to do much more as our takeout and third-party delivery businesses grow,” Post said, noting that staff members holding the task are usually 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 see within our restaurant lobbies,” Post said. Yet she noted that Red Robin continues to check out methods for reducing labor from the adoption of the latest technology, specifically in five Western states where labor pricing is increasing in a gallop. She failed to name the states, but stated that Red Robin has a preponderance of stores there.
Bolstering delivery and catering sales at mall units, which take into account 16% in the Red Robin chain. Post also mentioned the chance of trying new signage and location-specific deals to attract more dine-in patrons. Specifically, 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, such as discounts for individuals Red Robin’s loyalty program. Post noted that $1.99 kids meals were offered through the quarter some day every week, to great effect.
Red Robin CFO Guy Constant stressed that this chain does not believe dine-in operation was cannibalized by takeout and delivery, though he acknowledged, “we have very little visibility to that particular as the third-party delivery proprietors don’t share their data.”
Although a lot of Red Robin’s Q2 woes were associated with the drop-off in on-premise business, Post noted that the 2.6% decline in same-store sales was also a consequence of the decline in the average check. At fault, she said, was the prosperity of the chain’s Tavern Double Burgers menu, an accumulation of burgers priced at the bargain rate of $6.99. The everyday-bargain items currently generate 15% of orders, up from 6% two years ago, when advertising was put behind the array. The combination have also been raised by an expansion of the menu during the quarter to five burgers, from your three that have been offered during Q1.
Post explained that the everyday value afforded through the menu has indeed drawn customers, but they tended to be current guests who traded down, as opposed to newcomers for the brand. Responding, Red Robin can vary the costs in the burgers included in the line, and can move cautiously on expanding the menu. In case a burger is included in the Tavern menu, another will likely appear, Post said.