Fazoli’s Off-Premise Drives 40% of Sales

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Fazoli’s Off-Premise Drives 40% of Sales

12/12/2019
Fazoli's is unveiling a dedicated marketing plan and new merchandising tools to boost catering sales, which currently are about 4% of sales. Off premise, which includes catering, accounts for 40% of Fazoli's sales.

With 40% of sales coming from off-premise initiatives, Fazoli’s continues to invest in new technologies to enhance the customer experience. The brand’s mounting third-party delivery success is a direct result of Fazoli’s efforts.

At Fazoli’s, one in four consumers aged 18-24 used third-party delivery in the last 12 months and the brand’s total third-party delivery spend is 477% higher in 2019 than in 2018. Fazoli’s has been adding providers as its platform expands, and now third-party delivery is available at all 52 Fazoli’s corporate locations.

“We started testing third-party deliver in 2017 because we realized consumer needs were changing,” said Fazoli’s CEO Carl Howard.”To stay a best-in-class brand, we know we have to evolve and adapt, so we added third-party delivery as an incremental revenue stream. What we saw next was outstanding. Our third-party delivery business took off, with sales increasing the first year to almost 4% of sales.”

Fazoli’s is seeing soaring sales through another off-premise channel – online ordering.

The brand is putting even more focus on online ordering and creating a seamless customer experience via its mobile app. Always looking for opportunities to refine and perfect its service, Fazoli’s has partnered with Olo to expand and streamline its mobile ordering capabilities. Olo will help create a simpler, quicker user experience, giving guests the opportunity to save past orders and redeem rewards so that ordering Fazoli’s online or through the mobile app is frictionless.

In addition to third-party delivery and online ordering, Fazoli’s is expanding their catering program. While catering has been a part of Fazoli’s business model for many years, the brand sees an opportunity to expand that revenue stream. Fazoli’s is eager to support new life moments, such as weddings and rehearsal dinners. Currently, 4 to 4.5% of Fazoli’s sales are brought in from catering, and the brand seeks to grow the channel through dedicated marketing plans and new merchandising tools, such as business-to-business incentives, tailored menus and devoted catering sales teams in key markets.

All three initiatives have shown impressive results with an increase in sales of 31.5%.

“Many times, the off- premise experience is the first interaction a guest has with our brand,” said Chief Marketing Officer Jodie Conrad.”It’s imperative that we deliver the same premium experience our guests receive in-restaurant. To ensure these experiences are positive, we’ve considered every detail. Our training, marketing and operations teams provide extensive support and guidance to our franchisees. As a result, our franchisees have embraced the new initiatives and have seen first-hand the jump in sales.”

Fazoli’s is also currently rolling out a system-wide brand refresh with an updated interior that puts the focus on Fazoli’s expanding off-premise revenue streams, such as incorporating a Pronto Pick-up space for carryout, delivery and catering orders. With 61% of consumers at least somewhat agreeing that they would be interested in a grab-and-go, tech-driven system that allows them to walk in, grab food and walk out without the need for cashier interaction, this seems to be the next evolution in the restaurant business.

“As a frontrunner in the industry for more than 30 years, we continue to show our ability to keep our loyal fans and attract new guests,” Howard said.”We work hard to ensure everyone at Fazoli’s has their pulse on the consumer so that our brand is consistently in tune with everyone who walks through our doors. For Fazoli’s to remain at the forefront, we have to be where our guests are. If we reach them in more ways, more often, we will undoubtedly continue to dominate the restaurant industry.”