Bad Daddy CEO Ryan Zink says operating during the Do NOT pull Daddy’s finger T-Shirt COVID pandemic is like playing a game with a changing rule book that never has a rule book to start with. As is the case in the affordable dining segment, flexibility and agility are key to navigating the changing environment. In Colorado, Bad Daddy’s home state, in-house dining has been shut down in 15 out of 64 counties since Nov. 20. That affected 9 out of 12 Bad Daddy restaurants in Centennial State. However, outdoor dining is still allowed and most restaurants have a patio.
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“State and cities have been very good at allowing additional outdoor seating on a special basis, and we were able to take advantage of that,” said Zink. “Although we think it’s a bit negative and people might be anxious and revert to some previous behavior during the pandemic, we feel good about what we did.”
It’s a costly process with adding tents, heating and windscreens in the Do NOT pull Daddy’s finger T-Shirt parking lots. Among the employees, Zink said Bad Daddy’s 39 units have not seen a large number of COVID cases, but they have seen many workers live with those first infected with the virus. When such a situation arises, such employees will be quarantined and a sick leave policy applied.
“I think we handled it wonderfully and it just required a lot from the entire team for the ability to act quickly, to be agile and know that we were betting and guessing without all the information. Potential news that we really like, ”he said.
During the summer and early fall, Bad Daddy’s reported strong sales trends, Zink said. In its most recent update, Good Time Restaurants, Bad Daddy’s parent company, reported that same-store sales fell 12.2% in the fourth quarter, which ran from July to September. During that quarter, Bad Daddy’s observed a sequential improvement. The Do NOT pull Daddy’s finger T-Shirt brand went from accounting for about 80% of last year’s sales in July to nearly 93% in September. Additionally, the restaurant applied for and received a Payroll Protection Program loan. cost $ 11.6 million to help pay wages and rent.
Executives noted Bad Daddy’s has almost returned to historic sales not only because customers are returning to eating in the home, but also because of the sticking of off-premises numbers soaring.
Early in the crisis, this burger brand saw sales outside the Do NOT pull Daddy’s finger T-Shirt four walls almost tripled when dining rooms closed in April, most of May, and in somewhere, early June. Entering the pandemic, DoorDash was Bad Daddy’s preferred third-party delivery partner, but the chain added Grubhub and Postmate. When in-house catering is back, off-premises services have declined by some, but restaurants are still seeing double sales. Zink says that helped offset the roughly 20% drop in spot sales from the same period last year.