The Wall Street Journal reports that some QSRs are in a conundrum. Remodeled dining rooms boost sales … but fewer and fewer people sit and eat, making the dining room an expensive billboard.
“Dine-in customers now represent less than 10% of visits in most U.S. McDonald’s restaurants, according to chain franchisees, compared with around a quarter of domestic sales before the Covid-19 pandemic,” the Journal reports.
Owners prefer to-go orders since they are more profitable. Restaurants ramped up investments in drive-thru and online ordering. Success in app downloads now appears to equate directly to sales success.
So what to do with dining rooms? McDonald’s, for example, expects costly remodels once a decade. The total cost to franchisees is hundreds of thousands of dollars to create a modern, inviting look. According to the Journal, “Equipment for the remodels averaged $350,000 last year, according to the documents. A full update can cost as high as $750,000, owners said.”
Burger King is spending millions of dollars to encourage U.S. owners to renovate their locations, though operators have to pick up much of the cost, according to the Journal.
“It’s absolutely critical,” Josh Kobza, chief executive officer of Burger King-owner Restaurant Brands International said in May. A remodel results in an average sales lift of 12% in the first year.
One possible solution is to continue to refresh the dining areas once a decade but limit the scope and cost of the changes.
Foodservice professionals are invited to the NACS Food Safety Forum October 3 in Atlanta, Georgia. Read more about the event in NACS Magazine.
Looking to invest in expanding your foodservice accumen? Check out the NACS Certified Convenience Foodservice Management Online Training Series powered by NACS eTraining partner Ready Training Online. Retail operators can now earn a Certified Convenience Foodservice Management (CCFM) designation by completing a 10-course online training series which tackles the key aspects of developing and growing a successful foodservice offer. More information is available at convenience.org.