Now that the school year is coming to a close, see the Red Robin menu with prices here offers free burgers now to teachers and others who work with students. The free burger deal is for anyone who works for or with a school. Diners must show a sound 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 high school and college. Retired teachers will get the free burgers also with the ID.
Diners can select from among five Tavern Double burgers and bottomless steak fries. Burger options are the Cowboy Ranch Tavern Double and 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 that quarter ended July 15 to fewer guests dining on-site during peak periods, particularly at restaurants based in shopping centers. “The continued weakness within our dine-in traffic caught us unawares, though it may be impossible to parse just how much is because of change 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 men and women waiting for tables and leave. Even when they stuck it, 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, consequently, was the consequence of operational changes undertaken by Red Robin a couple of years ago, a recast known internally as Maestro, Post said. With installing a new kitchen display system, two bussing positions were eliminated from each store. The function of collecting dirty dishes was moved to servers.
“Unfortunately, we did not execute this well whatsoever. Plus it impacted us most during peak periods,” she said. “We have witnessed both our wait some time and the number of people walking away without being seated increase year over year.”
Guest-satisfaction gauges and 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 required to do far more as our takeout and third-party delivery businesses grow,” Post said, noting that employees holding the job 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 percieve within our restaurant lobbies,” Post said. Yet she noted that Red Robin continue to consider means of reducing labor with the adoption of new technology, especially in five Western states where labor costs are increasing with a gallop. She did not name the states, but claimed that Red Robin features 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 possibility of trying new signage and site-specific deals to attract more dine-in patrons. Specifically, 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, as being 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 during the quarter one day per week, to good effect.
Red Robin CFO Guy Constant stressed that this chain will not believe dine-running a business was cannibalized by takeout and delivery, though he acknowledged, “we have very little visibility to that 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 a 2.6% decline in same-store sales was also a direct result the decline within the average check. The culprit, she said, was the prosperity of the chain’s Tavern Double Burgers menu, a collection of burgers priced in the bargain rate of $6.99. The everyday-bargain items currently generate 15% of orders, up from 6% 2 yrs ago, when advertising was put behind the array. The mix have also been raised by an increase of the menu through the quarter to five burgers, from your three that were offered during Q1.
Post explained the everyday value afforded through the menu has indeed drawn customers, but they tended to become current guests who traded down, instead of newcomers towards the brand. Responding, Red Robin will vary the costs from the burgers within the line, and can move cautiously on expanding the menu. In case a burger is put into the Tavern menu, another will probably appear, Post said.