Restaurants Experiment with Carryout-Only Locations

With the growth of restaurant food delivery, brands are looking at a variety of to-go options, including partnerships.

November 08, 2017

TAMPA – Bloomin’ Brands Inc. has seen the future, and it looks like delivery. The restaurant company has opened its first carryout-only location in Hollywood, Fla., a co-branded Carrabba’s Italian Grill and Outback Steakhouse, Nation’s Restaurant News reports.

The takeout-only restaurant is the first of several “express” units, with another three or four planned to open in the next few months. “Off-premise represents a significant and incremental structural tailwind for the industry,” Bloomin’ Brands CEO Liz Smith told the news source, adding that takeout and delivery had the potential to comprise 25% of total sales for the restaurants.

Bloomin’ Brands is increasing its delivery service, which it will keep under its own umbrella rather than farming it out to a third party, and will offer the service at 246 U.S. locations. “We see the growing off-premise as a big opportunity for us,” Smith said.

Customer hunger for off-premise orders at casual dining establishments has triggered a corresponding burst of takeout-only locations. For example, Buffalo Wild Wings announced its B-Dubs Express concept this summer. While casual dining chains have toyed with express locations for years, it’s mostly been focused on meeting the needs of customers in airports or on college campuses.

But now these companies are seeing value in opening express units to serve regular customers. At Olive Garden, carryout orders have jumped 12% during the company’s most recent quarter and 70% over the past four years. For Buffalo Wild Wings, takeout and delivery grab 19.2% of orders.

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