Some of The ONE Group’s best restaurants are earning as much as $1.5 million in annualized off-premises sales.
“We have seen particularly in markets like San Diego—I would consider them to be the mid-size markets—the takeout delivery platform as being a great introductory price point offering,” Hilario said. “And if you look at our menu, we very carefully crafted the takeout delivery menu to be an extension of the in-room or the dining room menu.”
The ONE Group is adapting future store designs to cultivate the growth of off-premises. The STK restaurant in Bellevue, Washington, that opened this summer was the first store designed within COVID. The back-of-house includes a separate takeout section and a second line to take pressure off the main lines for the dining room.
The company also plans to open a store in Dallas that will be the first location with an off-premises area separate from the restaurant.
“Our rationale there is because a lot of people come to STK to pick up takeout or delivery, and some of them may not be dressed up,” Hilario explained. “And they walk into the lobby of the restaurant and in on a Friday or Saturday night, they may not feel as comfortable walking into it picking up takeout/delivery. So, we do think that having a separate area within the restaurant dedicated to takeout/delivery, it makes a lot of sense.”
Another significant sales lever is the manner in which STK and Kona have managed to spread demand across dayparts. That includes the ever-growing brunch program, which captures strong daytime demand on Saturdays and Sundays. On the weekdays, Mondays through Wednesdays were typically for business travelers and corporate private events. While those sales dollars are slowly returning, they’re still down from what they were prior to COVID. STK and Kona have replaced those lost dollars with social occasions, particularly date nights.
Because of those pivots, Hilario believes STK and Kona are strong in all parts of the day throughout the entire week, with Fridays and Saturdays rising to the top. Other sections of the business that have fueled sales are reduced price points during Happy Hour and growing traffic on holidays. In fact, STK and Kona ran several promotions around Easter, Mother’s Day, and Father’s Day during Q2 and achieved record-breaking sales on those days.
“The only place that there's huge opportunity, and probably not a strength is events,” Hilario said. “And I think that as we look out into the fourth quarter, we're starting to see a lot of demand for holiday party. So, I do think that in the fourth quarter, that will be the next layer of business that will totally sit on top of the underlying business and will even further drive our top lines.”