Full-service Tex-mex restaurant Chuy's has pivoted to an off-premise model.
During the last two weeks of the first quarter, as required by federal and local officials, Chuy’s restaurants transitioned to an enhanced off-premise operating model at 92 of its locations with a limited menu featuring a number of long-time favorites, plus convenient family meals and beverage kits. Since that transition, the company’s combined take-out and delivery sales have more than tripled from its pre-COVID-19 off-premise sales, including an alcohol mix of approximately 6%.
Chuy’s detailed the impact of the COVID-19 pandemic and actions the company is taking to navigate this unprecedented time in its Q1 earnings.
Preliminary comparable restaurant sales for the first quarter of 2020 are expected to decrease by 9.7%.
“I’m proud of our team members who have worked tirelessly to transform our business to a safe and efficient off-premise model, including enhanced take-out and curbside pick-up," Steve J. Hislop, Chuy’s Chief Executive Officer, said.
Unfortunately the company has furloughed approximately 80% of hourly employees and approximately 40% of store management personnel, while enacting temporary salary reductions for remaining managers.
Founded in Austin, Texas in 1982, Chuy's owns and operates full-service restaurants across 19 states serving a distinct menu of authentic, made from scratch Tex-Mex inspired dishes.