Financing

Habit Burger Grill sees modest growth after a disappointing start to the year

But the fast-casual burger chain is still battling traffic woes.
The Habit Burger Grill

The Habit Burger Grill continues to struggle with lagging traffic, but a boost in check averages—driven largely by a menu price bump—brought the fast-casual burger chain back to positive same-store sales growth for its second quarter.

Habit Burger reported a same-store sales increase of 1.2% for the quarter ending June 26, up from the less-than-stellar first-quarter comps drop of 1.4%.

Its stock was up 17.67% mid-day Aug. 2 on the earnings news, fueled also by the company’s positive updates to its full-year revenue projection for 2018. Total revenue is now predicted to be between $393 million and $396 million, up from an earlier projection of $389 million to $393 million.

But traffic, which dropped 3.2% in the second quarter, remains an ongoing concern, and Habit Burger is eyeing various solutions.

Online and mobile ordering is up 26% in the most recent quarter, and the company plans to launch a test of a mobile app later this year, executives said during a conference call this week. The chain also plans to test self-ordering kiosks before year’s end.

Meanwhile, drive-thrus continue to perform well for the brand, accounting for about 45% of sales.

“We’ve got a lot to learn in regard to drive-thrus,” Russ Bendel, Habit Burger president and CEO, said during the conference call. Bendel said the chain plans to add more pictures of menu items and combos on drive-thru menu boards.

“I think we still have some opportunities as we move forward to continue to optimize the drive-thrus, which is exciting for us,” he added.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Consumer Trends

Fast food has lost its reputation as a cheap meal

Years of price hikes are driving consumers to grocery stores and even full-service restaurants, which are now viewed by some as a better deal.

Financing

Here’s what an activist investor could push Starbucks to do

The Bottom Line: With the coffee shop chain reportedly talking with an activist investor, here’s a look at some of the potential changes they might demand.

Financing

Panera apparently wants to go it alone again

The Bottom Line: The bakery/café chain is reportedly planning to sell Caribou and Einstein Bros. restaurant concepts three years after forming Panera Brands.

Trending

More from our partners