Shake Shack, Panera, and Chipotle open drive-thrus to keep up with fast-food rivals like McDonald’s and Taco Bell


mcdonalds coronavirus drive-through

Drive-thrus are a crucial part of fast-food chains’ strategies in the coronavirus era.
Drive-thru orders made up 90% of McDonald’s business in the US in the most recent quarter, helping the chain rebuild sales.
Shake Shack, Chipotle, and Panera are among the chains that are now investing in drive-thrus as the pandemic stretches on.
“I’m a big believer that drive-thrus are going to continue to be very important,” Panera CEO Niren Chaudhary told Business Insider. “Therefore, as we look ahead, we will build more drive-thrus than we have in the past.”
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In the coronavirus pandemic, drive-thru is king.

Restaurants’ sales plummeted in mid-March as dining rooms across the US were forced to shut down. While sales have recovered in the months since, one of the biggest determining factors in how far sales dropped and how quickly they improved was if a restaurant had a drive-thru.

Full-service restaurants saw visits drop 47% in April, May, and June, according to data from The NPD Group. Meanwhile, quick-service restaurants (QSRs) only saw traffic decline 17% in the same quarter, due to their preexisting drive-thru and carry-out businesses.

McDonald’s, for example, saw US same-store sales plunge by 19.2% in April. By June, sales were only down 2.3% compared to the same period the year before. The recovery was due in large part to drive-thru, which made up almost 90% of the chain’s sales in the quarter, executives said this week.

Chains with fewer drive-thrus than rivals are now playing catch up, especially as the pandemic threatens to stretch into 2021.

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Chipotle recently said it plans to add more digital “Chipotlane” drive-thrus, remodeling restaurants and opening new locations. On Thursday, Shake Shack announced plans to open its first-ever drive-thru in 2021, with the chain planning for half of the restaurants opening next year to feature drive-up or walk-up windows.

“People want to stay in their cars. That’s not going to last forever,” Shake Shack CEO Randy Garutti said in a call with investors. “But obviously, this country has proven that the drive-through in its old form works. We want to do in this new form. We want to do it better than ever.”

At Panera, which currently has drive-thrus at roughly half its locations, drive-thrus are a “definitive part” of the chain’s plan going forward according to CEO Niren Chaudhary.

“I’m a big believer that drive-thrus …read more

Source:: Business Insider

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