When Robert Linder, CFO of Lazy Dog Restaurant & Bar, a casual-dining chain that operates 52 restaurants in eight states, was asked about his brand’s off-premises performance for 2024 at the recent Restaurant Finance & Development Conference, he expressed mock-annoyance at being off-base in his projections.
“I got that wrong in our plan so thanks for bringing that up,” he told moderator Michael Gottlieb of CohnReznick with a chuckle. “I did not think for a minute when I was putting the plan together in October 2023 that we would be up so significantly in off-premises for 2024. At the time, everyone thought third-party delivery was going to get crushed next year. We knew value would be important to consumers and delivery is expensive. Lo and behold, these third-party delivery companies continue to grow their business off premises, and our channel has been significantly up. It’s amazing. Those third-party delivery companies are great digital marketers. It makes you think that, Hey, if I can get the right message the right person at the right time, I can influence behavior.”
Linder was not the only one on the panel talking up off-premises sturdiness.
“Our business is 40 percent digital and third-party delivery is a big part of our mix,” said Steve Cirulis, CFO of Potbelly, the QSR with 439 locations all around the U.S. “If any of you have teenagers like I do, that occasion has almost zero price elasticity. It’s just a different thing.”
Tiffany Furman, CFO of Habit Burger & Grill, a fast-casual brand with 372 locations in a dozen states, also noted her brand’s opportunity with off-premises.
“Before the pandemic we had two-thirds of our guests coming into our dining room. Now we’re two-thirds off-premises,” she said. “We’ve done a big refocus on making sure we’re giving our operators tools to manage this.”
The CFOs on the panel are only underscoring what has been projected by many analysts for 2025: that off-premises growth could look like a hockey stick for savvy operators able to pounce.
In addition to the growth of third-party delivery services, there is a notable shift toward increased carryout, curbside pickup, and drive-thru options. A primary focus now for restaurants in the new year will be to optimize the online-ordering experience by improving speed, accuracy, and operational efficiency.
