Big restaurant companies such as the parents of Chili’s and KFC have reported strong sales for late 2020 and the start of this year, even with dining-room shutdowns and capacity restrictions crimping business in many areas of the nation. Smaller companies have had more of a mixed experience, as recent postings attest. Here’s a look at how three of those lower-cap companies fared.
J. Alexander’s: Jan. same-store sales down 25%
Sales at the polished casual operator’s 46 restaurants climbed in January to within 75% of prior-year levels, a 10-point improvement from December but a slide from the 90% and 80% of 2019 revenues reported for October and November, respectively. The company said that about 60% of the seating across its whole portfolio was in use as of Feb. 7, with the portion growing steadily as more areas ease their limits on indoor dining. At the end of 2020, the limitations were counterbalanced by a surge in to-go sales to $850,000 systemwide.
In a business update released this week, management said that its exploration of a sale or other “strategic alternative” was continuing, as announced by the company in Dec.
Good Times: 22.1% jump in QSR comps, 11.8% drop for full service
The differences in the pandemic experiences of limited and full-service concepts were strongly reflected in the results posted by two-concept Good Times Restaurants for the first quarter ended Dec. 29. Same-store sales for the company’s namesake quick-service burger and custard brand jumped 22.1%, while comps for its Bad Daddy’s casual operation fell 11.8%, largely because of dining rooms being shut down in Colorado.
The disparity continued into January, with comps jumping 24.6% for Good Times and falling 8.3% for Bad Daddy’s.
The company said sales at its full-service brand should be buoyed by the rollout of a virtual brand, Bad Mama’s Chicken, which is currently generating 2% of sales from 24 locations.
Nathan’s: 47% drop in restaurant sales
Sales at the iconic brand’s company-operated restaurants fell almost in half for the third quarter ended Dec. 27, to $6.5 million in total, because of shutdowns triggered by the pandemic, according to management.
The results show that Nathan’s generates far more revenues from retailing than it does from operating restaurants. Fees for licensing the Nathan’s name to hot dogs sold in supermarkets soared to $24.7 million, a 33% increase.
Sales of Nathan’s-branded hot dogs and other products to other restaurant operators fell roughly in half, to $3 million. Sports arenas, amusement parks, movie theaters and other closed businesses are among that division’s key customers.
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