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5 ways coronavirus has changed the way we eat fast food

McDonald’s, Chipotle, Dunkin ‘, Starbucks and many others have reported gains in recent weeks, which involved the brutal spring neighborhood when Covid-19 was making its way to the United States. In addition to illustrating how their profits have been decimated, the quarterly financial updates of the companies also show how much we have changed our daily routines.

1. We are spending more and stocking up

Instead of going in for a coffee or sandwich, we are buying many more foods in one order. Starbucks (SBUX) He said his average control size grew 25% in the last quarter because customers are buying more drinks and food.
Dunkin (DNKN)“noted a similar trend, with an average order amount growing due to”
; family-sized wholesale orders. “Baskin-Robbins, of which he also owns, said that this partially offset a drop in sales with more expensive orders because people buy ice cream and cakes.
Stocking up also gave Domino (DMPZF) a bump.

“One of the things we heard over the quarter was that customers are actively putting more food in the trash can for leftovers the next day,” said CEO Ritch Allison in a recent earnings call. “They are thinking not only of that meal that evening, but how they are planning the following day.”

2. Drive-thrus are thriving

Switching to a “contactless” experience has been an advantage for many chains, including McDonald (MCD). The company said that approximately 90% of its sales in the United States have crossed its driveways and that markets that have many driveways are recovering faster.
Chipotle (CMG) he aggressively expanded his engine and recently opened his penny. The locations with Chipotlanes, as they are cleverly called, posted 10% higher sales in the second quarter than corporate restaurants without them. About 60% of its new locations planned this year will have a drive-thrus.
Owner of Taco Bell Yum! Marche (YUM) he said he served another 5 million cars through his tractor over the same period a year ago.

3. Digital sales are breaking records

Digital orders made through third-party services such as Uber Eats or through chain apps also grew substantially in the quarter. Each company appears to have a digital success story, including McDonald’s, Starbucks, Domino’s, Chipotle, Yum! and Dunkin ‘, which reported a spike in digital sales.

Chipotle’s second-quarter digital sales grew 216% year-over-year and accounted for 61% of total sales. Yum! the digital orders of all its brands (Taco Bell, Pizza Hut and KFC) reached an all-time high, jumping from $ 1 to $ 3.5 billion compared to the same quarter a year ago.

And Starbucks, which recently optimized its app-based rewards program, said that mobile orders comprise 22% of all transactions, a 6% increase over a year ago.

4. Breakfast is a shame

The almost complete destruction of a morning commute to most of the country has had disastrous effects on the hot weather meal.

The chains of coffee Dunkin ‘and Starbucks have both experienced deep falls in revenue and visits because people don’t stop in the morning. Starbucks CEO Kevin Johnson said that “stopping weekday morning routines, especially commuting to work and school, is a headwind.”

Breakfast was previously a problematic part of the day for McDonald’s before Covid-19 and continues to be a drag on its sales. In addition to increased competition, the meal “continues to be disproportionately affected by disruptions to the commuting routine,” said McDonald’s CEO Chris Kempczinski, in this week’s earnings announcement.
Wendy (WEN), which launched imaginative new breakfast options just a few weeks before the pandemic, is expected to be released next week.

5. Noon is the new morning

People may not stop early in the morning, but some are popping up a little later. Starbucks said it is seeing traffic spikes around 9:30 am and around 2:00 pm again, which has led the company to shift employee shifts to those hours.

Dunkin ‘has also noticed a similar trend, with sales moving from early morning to midday between 11:00 and 14:00. Those customers are buying non-coffee drinks, like his new selection of teas and snacks.

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