Wingstop CEO Charlie Morrison took to the airways on CNBC to talk about how the company’s large portion of digital orders has set the brand up for delivery success at the operator level.
Because digital sales are more than 30 percent of the Wingstop business as of Q1 results, he added, it’s an easy path leading toward delivery. That, and the brand’s small-footprint restaurants and simplified menu mean others just can’t compete.
“It’s a very efficient, carryout—and now delivery-focused—concept that we believe creates efficiencies that some of the big box players can’t compete with,” Morrison told Jim Cramer on the CNBC show Mad Money.
He noted those digital sales come with the additional perk of averaging $5 higher checks than traditional in-store orders. Looking ahead, Morrison said the brand would enable delivery across 80 percent of its U.S. restaurant base by the end of the year.
This delivery enthusiasm is a far cry from what the company was saying in 2015. Despite the initial hype for delivery apps, Wingstop leadership, including Morrison, said it wasn’t about to risk the brand’s perception on a random delivery driver.
After lots of pressure from analysts, shareholders and customers (and at least one journalist), the brand acquiesced and began testing delivery in 2016. Since then, it has rolled out delivery to more than 50 percent of its restaurant base as of Q1.
Oh how things change!