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The Spoon

Daily news and analysis about the food tech revolution

Restaurant Tech

What’s After Ghost Kitchens? The Ghost Bar, Of Course

With ghost kitchens now a mainstay in the restaurant biz, it’s only ever been a matter of time before someone took the concept and applied it to the bar scene. Two NYC restaurant owners did just that recently with the opening of Ghost Bar, an online cocktail bar now available to certain parts of Manhattan.

In a press release sent to The Spoon, Ghost Bar’s owners said the point of their concept is to provide specialty cocktails users can get delivered to their own homes in roughly the same amount of time (or less) it would take to get an order from, say Grubhub.

Speaking of Grubhub, users can either order drinks from that service, Postmates, and HungryPanda, or from Ghost Bar’s own website. Where the ghost kitchen concept comes into play is with the bar’s centralized (and undisclosed) location, where cocktails are made and bottled to order before going out for delivery. The concept isn’t terribly different from ordering a juice or smoothie and getting it delivered to your doorstep, something New Yorkers have done for years.

Ghost bar menu items range from classics (old fashioned, sidecar) to in-house specialty drinks, to some beer and wine. Drinks start at $12, which is on par with what you’d pay for a well-crafted cocktail at a Manhattan bar. However, this being a delivery-only operation, users will also need factor service fees and tip into the cost of their drink. Ghost Bar also adds a $5 delivery fee. Whether the bottle sizes are larger than the average cocktail is unclear, as Ghost Bar doesn’t list bottle size in ounces.

That’s not a cheap way to grab a couple of cocktails, so if you’re planning on drinking a lot in a single evening, consider other options. However, for smaller gatherings or random Tuesday nights when you just want a freshly made fancy drink, the concept could prove popular, at least with the folks that can afford to spend $30-plus bucks on a couple drinks.

Currently, Ghost Bar delivers to 66th Street and below in Manhattan from 11:30 a.m. to 10 p.m. daily. The concept will expand to all of Manhattan and tri-bourough areas in the coming months.

Black Box Intelligence: December 2020 Restaurant Sales Were the Lowest Since July

The fourth quarter of 2020 was bad for restaurant sales, with December being “the worst month” since July, according to the latest data from Black Box Intelligence, which shared the information in its monthly Nation’s Restaurant News update.

By December, same-store sales growth fell to -13.3 percent year over year, while same-store traffic growth clocked in at -18.6 percent. In comparison, same-store sales in November were at -10.3 percent and same-store traffic growth at -16.3 percent.

Black Box noted that multiple factors contributed to poor sales numbers for restaurants in November and December. Those included a hike in COVID-19 cases and new dining room restrictions as a result of those rising case numbers. It being wintertime, colder weather limited or eradicated outdoor dining options in many parts of the country, further contributing to lagging sales numbers.

Despite the poor sales numbers, Black Box suggests that restaurants “were successful” in raising guest sentiment for their brands in December. 

Ambience, which in this case relates a lot to cleanliness and transparency around safety procedures, saw the largest improvement in terms of guest sentiment: “Meeting or exceeding [guests] expectations for safety is rewarded with positive feedback online.” 

Somewhat tricker is sentiment around the actual food. Food sentiment “dropped considerably” from November to December. This occurred simultaneously alongside a rise in off-premises orders and a slowdown in dining room sales due to the aforementioned restrictions. As Black Box states in this latest report, sentiment around food has “always been significantly lower” than food in the dining room. 

Restaurants have grappled with the challenge of maintaining quality food in a takeout environment since the pandemic first shut down dining rooms nearly a year ago. Tactics for better to-go food include things like paring down menus to the basics and completely redesigning menus to feature delivery-friendly fare.

Off-premises orders are now the major money-maker in the restaurant biz, and will likely continue to be for some time. The simultaneous rise of ghost kitchens only adds to this focus on delivery and takeout formats. All of which is to say that restaurants must continue to improve their to-go food, regardless of what happens to same-store sales over the next few months.

Glovo Lands Real Estate Deal to Expand Its Ghost Convenience Stores

Barcelona, Spain-based food delivery service Glovo has inked a deal with Switzerland-based real estate firm Stoneweg. The latter will invest €100 million (~$121 million USD) to help Glovo expand its network of ghost convenience stores. 

As part of the deal, Glovo will occupy the Stoneweg real estate locations for an unspecified period of time. Stoneweg will build and refurbish these real estate locations in key Glovo markets to help the delivery service expand its reach with these delivery-only convenience stores. Right now include Spain, Italy, Portugal, and Romania, with other European countries planned for the future. Glovo intends to have 100 different locations by the end of 2021. It has just 18 right now.

Glovo launched convenience store delivery in 2019 as a way to stand out from other Europe-based competitors (e.g., Delivery Hero). The company’s promise is to deliver goods one might find at a convenience store in 30 minutes or less to customers’ doorsteps. To do that, the Glovo operates these dark convenience stores from which customers can only order online.

The company’s increased focus on quick convenience store delivery — what it calls “Q-Commerce” — is at least partly in response to the pandemic’s impact on how consumers get food items and household goods. Certain countries, such as Spain and Italy, have had far stricter lockdowns during the pandemic than many U.S. states. Those restrictions around leaving one’s house have in turn created an environment where it makes more sense to order groceries, snacks, and household goods for delivery, rather than venture out oneself. 

That said, Europe isn’t alone in this shift towards ghost convenience stores. Most Notably, DoorDash began operating its own version of the concept in the U.S. in 2020. In South Korea, customers can even get convenience store goods delivered by robots courtesy of LG. 

For its part, Glovo believes these dark stores are the future of retail, hence the company’s new deal with Stoneweg. According to Bloomberg, Glovo’s Q-commerce orders have grown 300 percent from one year ago, and the company plans to hire 500 people for the Q-commerce business by the end of the year. 

Deliveroo Raises $180M, Nabs $7B Valuation

Deliveroo announced this week it has raised over $180 million in Series H funding from existing investors. The round was led by Durable Capital Partners LP and Fidelity Management and Research Company LLC. With it, Deliveroo is now valued at over $7 billion, according to an official company statement. 

The new funds come ahead of Deliveroo’s initial public offering, which is expected to happen in the next few months.

The London, U.K.-based company said it would use the new funds to “further drive growth and enhancements to its services for restaurants, riders and consumers.” Examples of those areas include expanding Editions, Deliveroo’s delivery-only kitchen sites, expanding its grocery delivery service, and expanding its Plus subscription service. The company also said it would offer more restaurants its Signature service, which lets customers order via a restaurant’s own website.

It’s a shift from several months ago, when Deliveroo had to cut 15 percent of its staff in response to the pandemic. Also around that time, U.K. regulatory watchdog the Competition and Markets Authority approved Amazon’s highly scrutinized investment into Deliveroo, saying the delivery business could collapse without the funds. 

But, like other third-party delivery services around the world, Deliveroo has wound up faring very well so far throughout the pandemic. Will Shu, Deliveroo’s founder, told The Guardian in December that COVID-19 had “accelerated consumer adoption of food delivery services by about two or three years,” and that order volumes for the service in the U.K. and Ireland were double those of 2019. In the same interview, Shu also said his company had been profitable “at the operating level” for about six months.  

Currently, Deliveroo operates in 12 countries, including a number of Western European nations as well as Singapore, Australia, and the United Arab Emirates. Its main competitor, Just Eat Takeaway.com, operates in many of the same markets.

Restaurants Hate Third-Party Delivery Services, Actually

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When it comes to talking about the year 2020, one of the things third-party delivery services like to say is that they were “a lifeline” for restaurants that might have otherwise had to shutter permanently due to dining room closures and restrictions. 

Plenty have disputed this over the last several months. But perhaps no one has lately been more to-the-point about the matter than Recode’s Kara Swisher, who hosted Uber CEO Dara Khosrowshahi on her Sway podcast this week.

“You’re not allowed to get away with saying you’ve been a lifeline to restaurants,” she told Khosrowshahi early on.

Swisher noted the oft-cited figure, that delivery services charge restaurants commission fees of up to 30 percent of a single transaction for use of their services. Khosrowshahi countered by saying Swisher’s math was “incomplete” and that the 30 percent is “untruthful” when it comes to representing what restaurants are actually on the hook to pay delivery services. According to his math, restaurants pay Uber Eats 13 percent per transaction “net of the courier.” If restaurants want to use their own couriers, the commission cost is “about 15 percent.”

But as Swisher suggested, even those lower numbers are harmful to restaurants, which typically operate off margins that are about 3 to 5 percent. That irreconcilable math is one of the reasons cities across the U.S. have introduced mandatory caps on commission fees, some as low as 10 percent.

Pre-pandemic, the argument was that if a restaurant took issue with high commission fees, they could simply opt out of doing delivery. That argument holds no water now, though, since the pandemic essentially forced restaurants into doing delivery and most do not have the money or expertise to build an in-house delivery business. Actually, most can’t even afford their own courier fleet.

It’s also worth pointing out that while Khosrowshahi called the 30 percent commission fee “untruthful,” he never actually offered a hard number around how high an Uber Eats commission fee reaches when a restaurant is using a courier, as most are. If anything, his cagey response of “13 percent net of the courier” seems to confirm the 30 percent commission fee’s existence.

Uber Eats had a big year in 2020. It more than doubled its revenues and even acquired a competitor, Postmates, towards the end of the year. Khosrowshahi himself said the service had a $40 billion-plus run rate and would be larger than the company’s mobility business in 2021.

Conversely, the restaurant industry has lost $240 billion in sales and is still 2.5 million jobs below pre-pandemic levels, according to the National Restaurant Association. A total of 110,000 restaurants in the U.S. have closed, which is about 17 percent of the nation’s restaurants total.

Khosrowshahi defended his company’s approach to restaurant commissions, using words like “reasonable” and “fair” to describe them. To which Swisher simply pointed out that most restaurants she speaks with disagree, and only use the Uber Eats and Caviars of the world because the pandemic has forced them to.

“They hate you,” she concluded, flatly, before using the phrase “menace economy” to describe the environment in which restaurants must now operate to stay in business.

Here’s How the Restaurant Biz Survived 2020

I know most of you would rather forget 2020 ever happened, but it never hurts to look back before going forward, which is just what the National Restaurant Association did this week. The trade group published a list of top trends it says kept many restaurants in business last year while the pandemic wreaked havoc on the industry.

The 10 trends that made the list were based on those found in a survey The Association did of more than 6,000 restaurants and 1,000 adults. The majority of the trends on the list are directly related to helping restaurants “keep their businesses open and employees on the payroll,” as The Association puts it.

The full research post is worth a read. This being The Spoon, I’ll highlight a few items that made the list that illustrate how tech-forward the pandemic has made the restaurant biz in recent months:

  • “Streamlined menus.” Part of this is related to the actual food: restaurants needed a way to reduce inventories and fulfill items faster, and “pare down your menu” became a mantra for many early on in the pandemic. However, streamlined menus also have to do with offering food that travels well, for pickup and delivery orders, and not overwhelming digital customers with choice paralysis as they view menus via their own mobile devices.
  • “Off-premises foodservice takes precedence.” The Association noted that before the pandemic, 80 percent of full-service restaurant traffic was on-premises. The change restaurants were forced to make to delivery and takeout formats in March, when shutdowns first started, rippled across the entire industry and is now more or less ingrained in operations. Which is to say, even when restaurants are operating at full dining room capacity once again, off-premises will be an important part of any restaurant’s strategy. 
  • “Selling groceries.” This started early in the pandemic when restaurants began selling inventory unused because of shutdowns, and doing so via off-premises channels like delivery and drive-thru. The Association’s survey found that “more than half of consumers” would consider buying grocery staples (produce, dairy, meat) from restaurants themselves if those items were offered. Little wonder, then, that third-party delivery services like DoorDash and Uber Eats added grocery delivery to their businesses in 2020.

Other trends in the restaurant industry — ghost kitchens, virtual restaurants, better back-of-house tech — are woven into the more general trends on The Association’s list. For example, a shift to off-premises foodservice will inevitably mean more ghost kitchens. Pull up a virtual restaurant menu from just about anyone these days and you’ll find it’s decidedly streamlined. 

“We now know that three things are certain: the pandemic tested the limits of operator creativity and knowhow, accelerated tech adoption and emerging trends, and confirmed that customers sorely miss their restaurant experiences,” says the report.

With a widespread vaccine still months away (at least) and restrictions still in place for the majority of dining rooms, these trends that helped us survive 2020 will also start to shape 2021 and beyond. 

Restaurant Tech ‘Round the Web

Panera is the latest major chain to announce plans to go all-in on ghost kitchens. The brand said this week it also has mobile kitchens, redesigned drive-thru lanes, and a virtual catering business in the works.

Fat Brands, meanwhile, is doubling-down on its existing ghost kitchen strategy. The company said at an ICR presentation this week that it plans to open a dozen ghost kitchens in 2021.

Restaurant tech provider Perfect Company raised $6 million for its solution that brings automation to the front of house, back of house, ghost kitchens, convenience stores, and other foodservice areas. 

Just Salad Debuts Meal Kit Brand to Fight Food Waste, Plastic Packaging

Fast-casual chain Just Salad has launched a meal kit brand it is calling the “next generation of meal kits.” Dubbed Housemade, the line is available now exclusively via Grubhub, according to a blog post from Just Salad.

The standout feature of the new meal kit line (which launched very, very quietly this month), is its purportedly waste-free packaging. Anyone who has ever ordered a traditional meal kit knows that you’re typically left with a mound of plastic, cardboard, and dry ice after the food is prepped.

In contrast, Just Salad says the Housemade line uses “zero plastic packaging.” Instead, meals arrive in curbside recyclable or compostable packaging, and labels on the packages are water soluble. Recipe cards contain disposal instructions for the packaging.

In terms of what actually arrives in a kit, it’s a bit of a cross between a prepared meal delivery and a more traditional kit. For example, the Housemade Mediterranean Chicken Salad comes with uncooked chicken, rice, vegetables, and other ingredients. Items are pre-portioned out, so that the customer just has to put them into single pan and cook for 15 minutes. Since Just Salad won’t be using dry ice or other cold storage materials for its packages, meals are meant to be delivered within an hour. There is no subscription to purchase the Housemade kits, which start at $10.49 for a single serving. Users can simply head over to Just Salad’s page on the Grubhub app or website.

Meal kits as a category has long been championed as a potential avenue for fighting food waste because ingredients are pre-portioned and users get exactly what they need for each meal. The tradeoff for that convenience up to now has been excess amounts of packaging waste, which rather nullifies any other sustainable aspects of the meal kit.

Just Salad said in its blog post that its Housemade kits have “91 percent less packaging by weight than the average meal kit.” Again, the reason that is possible is because kits are have few ingredients, are available in single-serving sizes, and are meant to be delivered within an hour. Traditional meal kits, on the other hand, serve entire families, usually require a subscription, and are shipped across the country. All of those factors require more protective packaging (insulating, shipping, etc.) for any given order. Just Salad’s tactic of using its own locations to fulfill orders and delivering those orders within an hour automatically removes some of the packaging problem from the process.

In its blog post, Just Salad said meal kits “have a crucial redeeming feature,” which is fighting food waste, but that the industry must “rethink the meal kit concept” in order to effectively cut down on packaging waste.

RoboEatz Shows Off Ark 03 Autonomous Robotic Meal Making Kiosk

It’s pretty remarkable to think of how much food robots have evolved over the three years I’ve been covering them. At the start of that time period, we had Flippy the robotic arm that could grill up burgers, and even that required human help. Fast forward to 2021, and RoboEatz is showing off its fully autonomous robotic meal-preparation system that can put together 1,000 meals on its own before a human is needed to refill its ingredients.

RoboEatz Ark 03 is a 200 sq. ft. standalone kiosk featuring an articulating arm, 110 fresh ingredients (30 of which are liquids like soups and salad dressings), an induction cooker and a number of cubbies that hold orders for pickup. After an order is placed (via mobile app or tablet), the robot arm grabs ingredients, places them in the rotating induction cooker, and puts the finished meal container in a cubby. You can see it in action in this video:

RoboEatz creates both cold and hot food, can produce a meal every 30 seconds, cleans and sanitizes itself, and only needs a human for refilling any ingredients that run out. Food can also be customized to meet certain taste and dietary preferences.

You won’t be seeing RoboEatz-branded robo restaurants, as the company plans to license out its technology to third-party restaurants. As I’ve said before, this type of co-branding makes a lot of sense for food robot companies. Hungry consumers won’t know what a “RoboEatz” restaurant would serve, but they would know what to expect from a robot kiosk with “Olive Garden” branding (or whatever, I’m just naming a random.

There is more interest in food robots now, thanks to the global pandemic. A fully robotic kitchen/restaurant means a truly contactless meal creation and pickup experience.

But food robots have the potential to help with the operational costs of running a foodservice operation. There’s the aforementioned savings from not employing a human (a bigger, ethical and societal issues to be sure), but robots can also dispense ingredients with precision and consistency, reducing ingredient waste. Robots can also keep ingredients out of the open keeping them away from outside germs and preventing cross-contamination. Plus, they can run 24 hours a day without a break, eliminating any downtime.

All of the above is why we’re seeing so many fully autonomous robot restaurants coming to market right now. Karakuri, YPC and Highpper all have various versions of fully autonomous robot restaurant kiosks in the works.

All of those companies are also eyeing the same high-traffic locales when placing their robo-restaurants: hospitals, transportation hubs, schools, etc. RoboEatz says it will be opening its first location “soon” in Latvia (where the company is headquartered), with another location at an undisclosed airport opening as well as a prototype store in the U.S. later this year.

Kitchen United Plans a Massive Expansion for Its Ghost Kitchen Network

Kitchen United will expand its ghost kitchen network significantly in 2021, the company said during a talk at this week’s ICR conference (h/t Restaurant Dive). Michael Montagano, KU’s CEO, said he expects the company to grow its number of locations from its current four to 20 by the end of the year, which would equal 500 percent growth for KU in total units.

The company currently operates ghost kitchen facilities in Pasadena, California and Chicago, Illinois, as well as in Scottsdale, Arizona and Austin, Texas. According to Montagano’s ICR presentation, Kitchen United’s 2021 expansion will include new facilities in those existing “high-volume” markets as well as kitchen facilities in completely new locations, like New York City and the San Francisco Bay Area.

Plans for this massive expansion come as restaurants continue to struggle with closures and capacity restrictions brought about by the pandemic and the industry continues shifting en masse to off-premises formats like ghost kitchens and virtual restaurants. And even when those limitations are lifted, general consensus is that meal formats like takeout and delivery are here to stay, which means more restaurants will continue seeking kitchen space in which to fulfill those orders.

Underscoring the demand for more kitchen space, Montagano said during ICR that Kitchen United’s existing facilities are full, and that existing customers want to continue growing with the KU platform. To date, Kitchen United’s facilities have served most known brand names, including The Halal Guys, Dog Haus, and Wetzel’s Pretzels. A move to more and different parts of the country may allow more regional chains to take advantage of the company’s kitchen infrastructure, too.

In larger cities like New York and San Francisco, Kitchen United will have plenty of competition. Zuul is already an established player in New York City, with plans for expansion around the five boroughs. San Francisco has the super-secretive CloudKitchens, Reef, which raised a whopping $700 million last year, and, in the Peninsula area, DoorDash Kitchens.  

Yelp Now Displays Feedback on Restaurants’ COVID-19 Safety Measures

Yelp users will now be able to provide feedback on restaurants’ COVID-19-related health and safety practices, according to a company blog post from this week. 

Effective now, Yelp will display if users observed — or did not observe — practices like social distancing and the wearing of masks at restaurants and other businesses. The information will be posted on the business’s Yelp page under a “Health and Safety Measures” heading in the COVID-19 section (see image above).

Yelp says that to ensure the feedback is fair and accurate, several different criteria must be met before COVID-19 safety information can be listed on its page, including:

  • Multiple user responses “with consensus from multiple users” on social distancing and mask-wearing
  • Responses received within the last 28 days
  • Responses from users logged into their Yelp account

For businesses with multiple locations, the user feedback will only be relevant for the location which the reviewing users visited.

To provide feedback, users can either answer survey questions, much as they would when contributing feedback on other aspects of a restaurant, or they can use the “edit” button on the restaurant’s COVID-19 updates section. Yelp will also notify users via push notification when a relevant restaurant has updated its COVID-19 information. 

For restaurants and other businesses that want to be a little more proactive and display their COVID-19 safety efforts, Yelp will also now allow them to list whether they have the following services: staff checked for symptoms, contactless and/or disposable menus, heated outdoor seating, covered outdoor seating, indoor dining, private dining, and DIY meal kits.

One of the major points we discussed at last October’s Smart Kitchen Summit was that visualizing cleanliness and safety in restaurants is now “table stakes” for restaurants. Even after a vaccine is widely available, consumers are likely to demand more visual cues about a business’s health and safety practices. So while Yelp’s new feature is a response to a (hopefully) short-term situation, user-generated feedback on these areas will be a standard feature moving forward for most restaurant review platforms. 

Grubhub to Offer In-Car Ordering Through Fiat Vehicles

In-vehicle tech company Lear Corporation announced today that its Xevo software businesses has partnered with Grubhub to bring food ordering capabilities to Fiat Chrysler Automobiles (FCA). Drivers will be able to order food from the third-party delivery service via an app on FCA’s Uconnect Market platform. 

FCA vehicles will be the first to offer Grubhub’s service as an in-vehicle feature. Once signed into their Grubhub account via the in-car system, customers can order ahead and pay for their meal on the go before picking it up from the restaurant. Users will also be able to reorder past meals market as “favorites.”

An additional feature lets users discover “new favorites,” too. If a customer is driving by a restaurant from which theY have never ordered, they can tap a button that will forward the restaurant’s menu to their email. Needless to say, drivers can’t browse the menu of a new restaurant while actually driving the car. 

Given restaurant tech’s current focus on making the customer meal journey speedier and more efficient, adding order-ahead and pay features to the car seems like a no-brainer. Grubhub may be the first third-party delivery service to land in the car, but the Xevo deal is not the first go-around for in-vehicle restaurant service. In 2019, Domino’s teamed up with both Xevo and Chevrolet for in-vehicle ordering deals. Also in 2019, BMW partnered with Olo to make food ordering directly available from BMW vehicles. 

FCA’s Uconnect platform, meanwhile, is available on 2019 and 2020 models of Chrysler, Dodge, Jeep, and Ram vehicles, so it wouldn’t be surprising if Grubhub is available soon to those drivers as well.

Delivery Hero Launches its Own VC Fund, DX Ventures, to Invest Across Food Tech

Global food delivery service Delivery Hero announced today the official launch of its own venture capital fund that will invest in food, delivery, and other areas of the food industry. Called DX Ventures, the fund has a dedicated pool of long-term capital to devote to companies working in on-demand services, food tech, fintech, artificial intelligence, and logistics, according to a press release sent to The Spoon.

Duncan McIntyre, Managing Director of DX Ventures, said the fund was something Delivery Hero has been thinking about for a number of years, and that investments into other companies is a strong part of how the service has been built over the years. “We’ve made about $500 million [in] minority investments over the last couple years,” he told me over the phone recently. Out of the success of those investments came the next obvious step: formalizing the concept of Delivery Hero as an investor. Hence, DX Ventures.

The fund will start off with a focus on early-stage companies, such as those at Series A level. “The aim of the fund is to look at industries and areas that are going to be disruptive over the next 10 years,” McIntyre said. That could include food delivery, but it might also include adjacent areas, such as alternative proteins, packaging alternatives, or supply chain features.

He added that DX Ventures will also look for companies that compliment the core Delivery Hero platform. Delivery Hero, for example, has added grocery delivery to its list of services (see the company’s $360 million acquisition of InstaShop last year). McIntyre suggested that companies contributing to the grocery delivery sector might be appropriate candidates to receive investment from DX Ventures. Other examples might include companies that can improve the restaurant delivery experience by providing better tracking, shorter delivery windows, lower price points, or healthier food options. “There’s a lot of efficiency to be gained in the food system,” said McIntyre.

All of the above examples are hypothetical at this point, as DX Ventures has yet to announce any companies it is investing in. At the moment, the fund is actively looking for companies in which to invest over the long term.

Potential companies can be located anywhere geographically speaking, though the fund will also focus on markets where Delivery Hero already has a presence. At the moment, that includes no less than 50 countries across Asia, Europe, Latin America, the Middle East, and North Africa. 

DX Ventures will be independently managed from Delivery Hero.

NPD: QSRs Outpace Full-Service Restaurants in Terms of Transaction Improvements

The restaurant industry closed 2020 by “moving its way out of the steepest declines the industry has experienced since the Great Recession,” according to a new update from The NPD Group. 

Restaurant transactions in December 2020 were down 10 percent compared to the same period one year ago. However, that figure is a 27-point improvement from restaurant transactions in April 2020 — at the height of shelter-in-place mandates in the U.S. — when transactions were down 37 percent from the previous year.

NPD’s numbers suggest some much-needed improvement for the restaurant industry overall, after nearly a year of lockdowns, capacity restrictions, and consumer fears around eating out.

That improvement doesn’t look equal across all sectors in the restaurant biz, though. NPD notes in its recent report that full-service restaurants, which typically did not have much in the way of to-go strategies in place at the start of 2020, “bore the brunt of transaction declines throughout the pandemic.” In April, full-service transactions declined by -70 percent compared to a year ago; they improved to -30 percent in December.

Individual state restrictions also have something to do with the numbers around full-service restaurants. NPD noted that In more restrictive states, full service restaurant chain transactions are down 60 percent to 70 percent. In less restrictive states, “there isn’t as much of a gap between quick service and full service restaurants.” 

Most major QSRs were already better prepared to shift to off-premises operations when the pandemic struck in full force last year. Some, like Chipotle and Starbucks, had existing strategies in place around digital, drive-thru, and express store formats. Others, like McDonald’s, had the deep pockets and technical expertise to pivot quickly — a luxury most smaller chains and independent restaurants cannot afford.

According to NPD, major QSRs’ takeout, drive-thru, and delivery orders “soared” over the last several months, despite restrictions across the overall restaurant industry: “Quick service customer transaction declines bottomed out in April with a decline of -35% versus year ago, but quickly improved as shelter-at-home orders were lifted. In December, quick service restaurant chain customer transaction declines were down -8% versus last year.”

With things like speed of service, simpler menus, and more-efficient kitchens remaining top priorities for restaurants in 2021, improvements to the overall industry is likely to remain divided between the quick-service chains and their full-service counterparts for some time to come.