Texas-based hen chain Wingstop skilled hovering gross sales in the course of the pandemic as America could not get sufficient of hen wings. The truth is, the chain’s same-store gross sales have up to now been optimistic on an annual foundation for 18 years straight, in accordance with Restaurant Enterprise On-line. For this reason its newest quarter outcomes have been so stunning.
The chain’s second-quarter gross sales fell by 3.3%. The drop was attributed to a number of components, together with a lowering demand for eating out, record-high inflation, hovering gasoline costs, the warfare in Ukraine, and declining curiosity amongst lower-income shoppers.
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Regardless of the lower in Q2 gross sales, Wingstop is assured it will probably get again on the trail to progress. After solely working with DoorDash, it just lately expanded its supply service choices by partnering with Uber Eats nationwide. Whereas the partnership has solely been working for a few weeks, Michael Skipworth, Wingstop’s president and CEO, mentioned the chain is “inspired by the early outcomes,” that are “at or above” firm expectations.
Moreover, Wingstop is hoping to cater to these not within the temper for wings quickly. It can start providing its first hen sandwich in 11 completely different taste varieties beginning in early September, due to promising outcomes from a take a look at at greater than 60 eating places in Might.
The chain additionally plans to ramp up its promoting spend by over 35% to increase the model’s attain within the second half of 2022.
Apart from the expansion methods, Skipworth has additionally highlighted a singular benefit the chain holds over different fast-casual manufacturers, which can make for a extra profitable second half of the yr. With the price of bone-in hen wings lowering by 18.8% yr over yr, the corporate is “a yr forward of different manufacturers” in wrestling with rising meals prices, having handled record-high wing costs in 2021.
“Wingstop is completely different. We’re ready the place we don’t essentially need to take value,” Skipworth mentioned. “And in reality, now we have the power to return a few of this deflation within the type of worth to the buyer as a way to retain these indulgent events and even take share, a real distinctive place to be in.”