Restaurant Response Matrix - Recommendations amidst crisis & how the restaurant industry is adapting during the COVID-19 pandemic - Scoppechio
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Restaurant Response Matrix
Recommendations amidst crisis & how the restaurant industry is
adapting during the COVID-19 pandemic
It’s a hugely challenging time for restaurant
owners/operators as they stabilize after initial shock
Restaurants who’ve shifted their models quickly are reaping the benefits
● Decline in sales now leveling out after big declines in week 12 and 13
● Mid-afternoon sales daypart is holding up the best; late night is the worst.
● Restaurants that promoted #TheGreatAmericanTakeout campaign on March 24th received 3x the amount of
chatter and 2x higher net sentiment scores.
● Seeing strong average check performance – across both takeout and delivery – from brands that have made a
family meal offer their primary message.
● After big spike in first week of First Time Redeemers in email programs (~60% of redemptions), Returning
Redeemers are now around 80% (versus 70% long-term trend).
Sources: Blackbox Intelligence, Fishbowl
But if things continue – some restaurants will find it difficult to make a full recovery
● Restaurants could expect a decline in sales of 27.1% if closures remain until Q3
● An estimated 8,000 to 10,000 of U.S. restaurants will go out of business after a 90-day shutdown
Sources: Restaurant Dive, Franchise Market Research and Consulting
At Scoppechio, we’re actively adjusting workflows
amidst the crisis
Our current activity
1. Review all pre-planned and flighted content to ensure contextual awareness, especially trigger,
holiday, or equity content in the pipeline
2. Recommend updates to current campaigns & adjust messaging accordingly to minimize
creative re-work or overhaul
3. Establish resource flexibility and adaptive strategies given pace of change
What we can do right now
Be More Helpful in Trying Times
62% of people are avoiding eating out and 24% of people are nervous (source: Datassential)
Recommendations
● Focus on delivery & to-go messaging, let consumers know that you are still open & available
● Highlight any delivery partnerships (DoorDash, Uber Eats, etc.)
● Message (or improvise) Curbside process and benefits
● Adjust to family meal offers to account for the new home-life norms
● Modify discounts to remain competitive – keep delivery, curbside/ drive-thru, mobile & online ordering in
mind
● Tout beverage To-Go platforms to upsell guest checks & move current stock
● Eliminate complexities through an increased focus on core product offerings
● Implement & message Zero Touch procedures, where possible
● Emphasize cleanliness of process and ingredients
● Support business, restaurant and staff through gift card purchases
● Highlight outreach activity that shows support for those affected (employees, children, first-responders)
What we can do moving forward
Be Ready for People to Dine-In and get back to normal
45% of people say the main reason they want to go back to eating in restaurants is to feel normal again
(source: Datassential)
Recommendations
● Focus messaging to be centered on reopening of dining rooms
● Reiterate safety procedures to comfort nervous or uncertain guests
● Be ready to entice guests with valuable dine-in offers and /or innovative LTO promotions to get
customers back in restaurant quickly
● Use the timeframe to message dining out as a means to getting back together with friends and
family & the return to normalcy
● Ensure guests are aware of operational changes that will remain vs. ones that will be phased out
● Ramp up in-restaurant POP in anticipation of a highly elastic return to dine-in
● Highlight ways in which the restaurant is continuing recovery efforts (hiring/training efforts,
permanent operational shifts, etc.)
Overall restaurant industry response has varied by restaurant, but many have implemented the following... 1. Rapid shifts to To Go & delivery models – some partnering with Third-Party services 2. Emphasis on food safety & sanitation efforts 3. Increased focus on Value-based offers, especially toward Family Meals 4. Publicizing Outreach efforts amidst crisis
How individual restaurant chains have responded at a glance
Food Brand McD Chili’s Panera Chick-Fil-A Pizza Hut Chipotle Texas Domino’s Starbucks LongHorn KFC
Roadhouse
Short Term -Update on -CEO Level -Focus on strict -Shift to drive -Contactless -Free -Curbside -Contactless -To go only -Curbside -Free
CV-19 Communication To Go model thru & delivery delivery delivery delivery model delivery
changes only -Temp. drive -Family meal
-Messaging -Ensuring -Increased -Employee thrus -Custom drop -Delivery in offer -Tamper
-Shift focus Process for workers are -Some plans in sanitation care off points select proof
to delivery Curbside healthy & place for support -Family meal locations -Take home packaging
options to seek employee care -Hiring 30k offer -Hiring 10k & cook offer
-Still -Free Dessert care new drivers + -Robust new drivers -Closure of (LH Steak -Deferral of
pushing with to-go in a -Encouraging expedited messaging -Take home & stores in Shop) royalty
seasonal carryout world -Messaging use of in-app training & FAQ from cook offer -Paid leave for high traffic payments
promos food safety & mobile pay CEO employees areas -Bev. To Go
options for -Providing - CEO vows -Outreach
-Cuts to pickup/ delivery philanthropy no salary; -Food -Extended -Sick-leave through
all-day through funnels funds donation to loyalty points through Blessings in
breakfast - Free delivery education & to support medical staff expiration parent, a Backpack,
offering +add’l $5 off food staff Darden support of
orders $15+ donations - Supporting industry
first workers,
responders and local
w/ free medical staff
coffee
Evaluation B+ A- A+ B A B+ A+ B+ B+ A- A
Food Delivery services are all responding similarly to the situation, with limited distinguishable points of differentiation Trends in Third-Party Food Delivery 1. Contactless delivery options 2. Delivery fees waived for local businesses 3. Delivery fees waived over order totals above a certain amount (i.e. Orders over $10) 4. Outreach to foodservice personnel affected by COVID19 Notably, DoorDash & Uber Eats are breaking the mold and are beginning limited grocery delivery efforts – with plans to expand offering.
We hope this arms you with how to plan for now and for the
future, while better understanding where various brands
stand in their response efforts.
Thank you.
APPENDIX
In-depth view of Restaurant response
McDonald’s • • • • •
Chili’s
Panera Bread
They moved strictly to a “to go” model across all Panera bakery-cafes
nationwide and will continue to serve via:
To-go
Rapid pick up
Drive thru
Delivery (contactless only)
They have a COVID-19 landing page to help keep their customers
updated as they work to adapt to the CDC regulations and inform
everyone of the safety measures being put into place
Landing page here
Taking care of their associates and making sure they are fit to be at
work
Put enhanced procedures in place to assess associates’ fitness
to return to work, risk of exposure after personal travel, and
have restricted air & rail travel.
Implemented an emergency PTO policy to make sure
associates are able to stay home if they are sick or diagnosed
with COVID-19.Panera Bread
Social/digital messaging to inform customers of what they are
doing to be proactive
Ordering options
Contactless delivery
Mindful packaging
Promoting value to loyalty customers to keep sales afloat
Free delivery with a $15 purchase + an additional $5 off
your order through MarchChick-fil-A
Website communication on their homepage that
links you to their COVID-19 landing page that is
continuously being updated.
Taking care of their employees
Majority of restaurants are operated by local,
independent, small business owners, so Chick-fil-A
has put in place a comprehensive plan to help offset
financial hardship to their businesses, giving them
the financial flexibility to make the best decisions to
care for their people.
Additionally, Chick-fil-A owned and operated
restaurants are providing paid sick leave for
employees who have a confirmed case of COVID-19 landing page
COVID-19.Chick-fil-A
Limiting marketing efforts and cutting back on digital
promotional assets including radio, online banners,
etc.
Email sent to their database informing
customers of limited service/no dine in policy
Delivery options + safety measures are being
messaged through email
Brand is encouraging drive-thru users to add
credit card payment to the mobile app to
reduce person-to-person contactPizza Hut
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○Chipotle
Texas Roadhouse
Dominos
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●Starbucks
● Adapted to a “To Go” only model, removed seating in Cafes
● Delivery option through Uber Eats (select locations)
● Temporarily closing stores in high-social gathering locations (mall,
universities, etc.)
● Delaying expiration of Loyalty Rewards
● Implemented new sanitation measures
○ No longer allowing the use of reusable cups
● Supporting first responders and healthcare professionals with free coffeeLonghorn
● Offering Meal Bundles
○ Choice of Entrée, Full Salad and four sides for four people
● Implementing Curbside To Go – Across all locations
● Streamlined To-Go menu
○ Will eliminate lower sales items to focus on core menu/signature items.
● Alc Bev To-Go Sales
○ $15 bottles of wine, $10 6-packs, and $3 bottle beers in select locations,
call-in only at launch (still pending legal review)
● Darden-wide announcement expanding permanent paid sick leave to
employeesKFC
Closed dining rooms nationwide for dine-in customers
Offer carry-out and drive-thru, & now Delivery
Waiving delivery fees for all partners
Tamper-proof packaging for delivery orders
Deferring adfund and royalty payments for 2 mos. to help struggling store
operators
Adjusting marketing strategies, media buys to focus on to-go/delivery & food
safety
KFC pledging $400k to Blessings in a Backpack (provides meals to children in
need)
Get a Bucket, Give a Bucket:
KFC and YUM! Brands working on partnership with broader restaurant coalition fund to
match up to $1million in sales to help support service industry workers
Fed workers at one of Baptist Health Louisville’s testing centersLocal Restaurant Response
W.W. Cousins (Louisville Local)
Taco Luchador (Louisville Local)
In-depth view of Food Delivery
responseGrubhub
DoorDash
Uber Eats
Postmates
Restaurant Worker Relief
Restaurant Workers Relief Program
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