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OFF-PREMISE DINING - POPULAR AND PROFITABLE

The popularity of off-premise dining is not in doubt. The evidence continues to grow showing it is also profitable.


Nearly all the major restaurant chains have made a push in to the off-premise dining sector. This was partly to increase sales and profits and partly to avoid their competitors getting an advantage.


Some CEOs and owners were early converts and believers, while others expressed concerns about the long-term profitability of the move and whether it would cannibalize existing sales, meaning it would simply move a portion of existing in-house dining off-premise.


But any remaining resistance is being worn down by mounting evidence that delivery can generate truly incremental sales and profits. Regular readers of this site will have seen dozens of reports from chains showing sales and profits from delivery and off-premise dining growing.


The latest confirmation comes from the new CEO of Outback Steakhouse parent Bloomin’ Brands, who stated the facts simply and succinctly on a recent conference call with analysts. On the subject of delivery he remarked, “This business is profitable” and “reaching scale.”

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