Operations
The Melt proves that kindness pays off
Although San Francisco's The Melt, experienced a 70% drop in sales overnight when sheltering-in-place began in March, the chain is now reporting higher-than-ever sales thanks to prioritizing their teams' wellbeing and focusing on the interests of the local community.
November 5, 2020 by Cherryh Cansler — Editor, FastCasual.com
Although San Francisco-based The Melt, experienced a 70% drop in sales overnight when sheltering-in-place mandates began in March, the chain is now reporting higher-than-ever sales thanks to prioritizing employees' wellbeing and focusing on the interests of the local community.
At the onset of the pandemic, CEO Ralph Bower recognized the fear and uncertainty his teams were facing. Despite revenue at historically low levels, he decided to guarantee team members' paychecks, whether they came in to work or not, at all seven locations. At the same time, the company realized that first responders had become some of their most frequent guests and began offering them free meals.
"We felt like it was the least we could do for people who were literally putting their lives on the line for us," Bower told FastCasual. "The decisions we made at the onset of the pandemic were made because they felt like the right things to do for our teams and for our communities. We never dreamed there would be such a positive response. We prioritized having the backs of our team members and our community, and as it turned out, they had ours as well."
The Melt teams felt a renewed sense of purpose by serving meals during an unprecedented time, and the decision led to strong partnerships with local businesses including Impossible Burger, Ghirardelli Chocolate and delivery companies, coupled with donations from customers, which allowed it to continue offering free food through June. The chain also received funds in May via the government's Paycheck Protection Program.
"We were quickly gaining recognition from people in the community, helping to raise our brand awareness," Bower said. "We were not only strengthening bonds with our team members but we were strengthening our bonds with the community as well. This brand awareness helped guide our growth throughout the summer and early fall."
The Melt's decisions paid off with unprecedented sales.
The Melt La Jolla, for example, has seen the most dramatic growth with sales levels nearly triple the same time last year. It was no coincidence that the restaurants with the highest sales growth were those that distributed the most meals to first responders. The results have exceeded anything Bower has seen in his 30-year restaurant career.
Today, sales are more than 50% higher than pre-pandemic levels, and the past several months have consistently seen record sales.
About Cherryh Cansler
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