The popularity of delivery is causing a dent in dine-in sales for the brand.
Red Robin has noted that one of the biggest issues facing the brand is a shift to delivery. According to a recent article in Nation's Restaurant News, the company has announced a decline in same-store sales by 2.6 percent and overall guest traffic by 0.7 percent.
“The growing complexity of our business has put pressure on our hosts to handle dine-in and carryout guests. Hosting was traditionally an entry-level position where your primary role was to greet and seat. Today, these hosts are asked to do much more as our check-out and third-party delivery businesses grow. We are moving rapidly forward with required new host training and improved selection criteria,” said CEO Denny Marie Post.
As hosts are asked to handle more responsibilities, wait times have increased at locations. The brand is taking steps to remedy this concern by investing in more selective hiring for peak-hour dining times. The brand is also re-evaluating pricing of value items to further entice guests.
Read the full article here.