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

Financing

Podcast transcript: Dutch Bros CEO Christine Barone

A Deeper Dive: Here is the transcript for the May 29 podcast with the chief executive of the drive-thru coffee chain, who talks real estate, boba and other topics.

Financing

McDonald's value perception problem is with its lighter users

The Bottom Line: The fast-food giant took the extraordinary step of publicizing average prices this week. It was speaking to its less-frequent customers, who are a lot less likely to say the chain is a good value.

Financing

CEO pay soared last year, despite a volatile period for restaurants

Pay for CEOs at publicly traded restaurants took off last year, but remains lower than average among public companies, even as tenure for the position remains volatile.

Trending

More from our partners