Operations

Fazoli's sales surge amid pandemic

Provided

June 29, 2020

Despite the pandemic, Lexington, Kentucky-based Fazoli's has continued to thrive in the second quarter, hitting its highest sales record for the month of May and its highest sales volume for any four-week period in brand history, according to a company press release.

May and June have been especially momentous months for the brand. Fazoli's sales were up 7.3% in May. Just two weeks into June, the Italian brand saw its 51 corporate locations hit record-breaking sales at over $1.5 million during the week of June 11-17, a first-time achievement for Fazoli's. The brand is on a strong track for a record June with sales up 14.6% and guest counts up 11.3% for the first three weeks of the period, CEO Carl Howard said.

"I am incredibly proud of what our team has accomplished this quarter," he said in the release. "With dining rooms forced to close across the country during the quarter, this was a very challenging time for the industry. But, at Fazoli's, our pursuit of excellence is never-ending. When many restaurants slowed down, we put our foot on the gas."

During the second quarter, the closely-held company streamlined operational processes to ensure guests received their food quicker but with the same service they have come to expect from the acclaimed brand. Across the organization, Fazoli's executive team worked with operations and different departments to adapt plans and capitalize on opportunities that meet guests' needs. To maintain its exemplary service standards, Fazoli's began providing its complimentary breadsticks to guests waiting in line in the drive-thru, fast-tracked an oven temp test to increase speed of service in the drive-thru and added tablets so more team members could take guests' order to increase the speed of service. For the first time in its history, Fazoli's average drive-thru window time dropped to under two minutes.

To give families more value during the COVID-19 crisis, the chain offered the Super Family Meal for $19.99, which feeds a family of six. Fazoli's saw nearly 20,000 redemptions of the special over the course of five weeks during April and May.

"We know our guests are huge fans of our unlimited breadsticks when dining in, so we started giving them out to those visiting us in the drive-thru to maintain the same level of service," Howard said. "This was a difficult time for many across the nation, and our Super Family Meal was an effective way to offer our premium Italian dishes at an even more affordable cost. As we continue to keep our guests top of mind, I have no doubt we will see similar results in the next quarter."

Looking into the third quarter, Fazoli's is ramping up its franchise development as a way to give potential franchisees a low-risk, fast-track path to joining the Fazoli's Franchise Family. In June, the company announced the launch of the industry trailblazing Fazoli's 2020 Franchise Incentive Program. In an effort to revitalize the restaurant industry, the new program spotlights Fazoli's aggressive conversion strategy. With the new conversion incentive, franchisees can sign a short five-year term, versus the typical 15-year commitment, with zero down payment, zero franchise fees and zero royalty fees in the first year. The renowned Italian brand has relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for under $350,000.

Founded in 1988, Fazoli's owns and operates nearly 220 restaurants in 28 states.