Photograph: ShutterstockLike lots of their bigger counterparts, gross sales are up at smaller, publicly traded restaurant chains. But margins proceed to be impacted by hovering commodity costs and rising wages, together with ongoing provide chain points. Here’s a have a look at how a few of these chains fared throughout the newest quarter. Ruth’s gross sales soar, and so do beef costs.Q1 gross sales on the 129-unit steakhouse chain rose 41.5% 12 months over 12 months and eight.1% vs. 2019, persevering with a robust exhibiting for upscale ideas popping out of the pandemic. CEO Cheryl Henry attributed the expansion to bettering operations and new digital initiatives. Beef prices within the quarter have been an eye-popping 37% greater than they have been throughout the identical interval final 12 months, the corporate mentioned. That was a part of an total 445 basis-point improve in meals and beverage prices, which have been 32.5% as a share of gross sales.Speaking of steak, STK can also be on a tear.Sales on the One Group-owned chain elevated 66.5% 12 months over 12 months within the quarter and 62.9% in comparison with 2019.Its varied-menu sister model, Kona Grill, didn’t accomplish that badly itself, with gross sales up 21.9% 12 months over 12 months and 27.5% vs. 2019.“Interest in eating at our extremely differentiated upscale and polished-casual eating places stays sturdy,” mentioned One Group CEO Manny Hilario in an announcement.The outcomes assist bolster the corporate’s huge growth outlook for 2022: It plans to open at the very least 9 places, its most ever for a single 12 months, together with two STKs, three Konas and three ghost kitchens with Reef.STK at the moment has 22 places, and Kona has 24.Supply chain backups gradual growth at Chuy’s.The 96-unit Tex-Mex chain decreased its plans for brand spanking new restaurant openings this 12 months to 4 to 6 from the beforehand anticipated 5 to eight, citing provide chain disruptions and a scarcity of building staff. The openings have been slated for the second half of the 12 months and will transfer into 2023, executives mentioned.Overall for the primary quarter, Chuy’s same-store gross sales rose 11.4% 12 months over 12 months however have been nonetheless about 2% under 2019 as a result of omicron outbreak in January and February in addition to extreme climate within the chain’s key markets by a lot of the quarter.El Pollo Loco rebounds from an omicron punch.Fire-grilled hen chain El Pollo Loco mentioned its gross sales have been “closely impacted” in January and February by the newest COVID wave, however famous that enterprise improved within the second half of the quarter. That led to a 7.8% improve in same-store gross sales for the interval ended March 30. The 481-unit chain mentioned its Shredded Beef Birria promotion and new advertising methods helped drive gross sales. For the primary quarter, El Pollo Loco’s complete income elevated to $110.1 million, in comparison with $107.7 million from the 12 months earlier than. The chain reported a 6% improve in common test measurement and a 3.5% drop in transactions. Pizza Inn and Pie Five log eight consecutive quarters of profitability.Rave Restaurant Group, mum or dad firm of buffet model Pizza Inn and quick informal Pie Five, reported complete income of $2.6 million for the quarter, up about $400,000 from the 12 months earlier than. The operator, which had beforehand closed a lot of places, stored its unit depend regular. It completed the interval with 128 U.S. Pizza Inn items and 33 home Pie Five shops, down one from the prior quarter. Pizza Inn same-store gross sales elevated 22.8% in the course of the quarter, whereas Pie Five’s same-store gross sales rose 21.4%. CEO Brandon Solano mentioned the corporate continues to work on menu innovation and can quickly debut a brand new buffet design for Pizza Inn. Members assist make our journalism potential. Become a Restaurant Business member at this time and unlock unique advantages, together with limitless entry to all of our content material. Sign up right here.
https://www.restaurantbusinessonline.com/financing/earnings-roundup-ruths-chris-stk-chuys-el-pollo-loco-rave
Ruth’s Chris, STK, Chuy’s, El Pollo Loco, RAVE
