1. We’re spending more and stocking up
“One of the things that we have heard over the quarter is that customers are actively putting more food in the basket to have leftovers, the next day,” CEO Ritch Allison said in a recent earnings call. “They’re thinking about not just that evening’s meal, but how they’re planning for the following day.”
2. Drive-thrus are thriving
3. Digital sales are breaking records
Digital orders made through third-party services like Uber Eats or through chains’ own apps also grew substantially in the quarter. Every company seems to have a digital success story, including McDonald’s, Starbucks, Domino’s, Chipotle, Yum! and Dunkin’, all of which reported a spike in digital sales.
Chipotle’s second-quarter digital sales grew a whopping 216% year-over-year and made up 61% of total sales. Yum! said digital orders at all of its brands (Taco Bell, Pizza Hut and KFC) hit an all-time high, jumping $1 billion to $3.5 billion from the same quarter a year ago.
4. Breakfast is a bummer
Coffee chains Dunkin’ and Starbucks both reported deep declines in revenue and visits because people aren’t stopping by as much in the mornings. Starbucks CEO Kevin Johnson CEO said the “disruption to the weekday morning routines, notably commuting to work and school, is a headwind.”
5. Midday is the new morning
People might not be stopping in the early morning, but some are popping in a bit later. Starbucks said it’s seeing spikes in traffic around 9:30 am and again around 2 pm, which has led the company to move employees’ shifts toward those hours.