Nation's Restaurant News On the Go Newsletter #45
Nation's Restaurant News
The #1 source of news and business intelligence for restaurant and foodservice industry professionals
A late-night Renaissance
Joanna Fantozzi here, senior editor for Nation's Restaurant News. As Michael Jackson once said, “it’s close to midnight, and something delicious is lurking in the dark.” Is it mere coincidence that with Halloween just a couple of weeks away, several restaurant chains are leaning into the late-night daypart? Even though only one brand directly referenced Halloween in its late-night news (looking at you, Chipotle Boorito promotion with extended operating hours), it’s a great time of year to get customers in the spirit of after-hours tricks and eats.
Although Chipotle’s, White Castle’s and Pizza Hut’s recent forays into or announcements of late-night line extensions suggest that the after-dinner renaissance is a recent trend, late-night daypart performance has been on the rise for a while now. As NRN noted over the summer, the after-hours business is making a comeback from the doldrum years of the pandemic when late-night snacking mostly was taking place in front of your kitchen refrigerator.???
The good news for restaurants: marketing for late-night offerings and promotions is easy, especially when you lean into consumers “getting the munchies” like Jack in the Box did with its Snoop Dogg collaboration, or otherwise acknowledge your target, younger consumer in a fun and appealing way. Plus, if you rely on technology like Pizza Hut is doing with its Dragontail partnership, then you won’t feel the labor squeeze as much either.? ?
Chipotle is bringing back its Boorito promotion with late-night hours
Chipotle is bringing back its signature Boorito promotion with a $6 digital entrée offer from 3 p.m. to close on Oct. 31 for Rewards members. And, for the first time ever, Chipotle is extending its operating hours until midnight in select college towns.
According to a company release, Chipotle has experienced a 30% increase in transactions after 8 p.m. on Halloween, and 81% of 18-to-26-year-olds surveyed reported they want Chipotle to stay open until midnight.
White Castle flexes its late-night business with new merch line
White Castle is showing off the strength of its late-night business through a new merch line collaboration with Fat Joe, a rapper who has been nominated for several Grammy, iHeartRadio, BET and MTV Video Music awards. The merchandise includes shirts, shorts, and hats with “Night Castle” branding and pulls inspiration from street fashion and graffiti art.
The launch coincides with hip-hop’s 50th anniversary, with 100% of net sales proceeds benefitting Renaissance Youth Center, a Bronx-based nonprofit that helps young people through music classes, afterschool programming, tutoring, STEM, coding, and more.
Pizza Hut extends hours into late-night daypart
Pizza Hut on Monday announced that it is extending its hours into the late-night daypart at “thousands” of restaurants, with units staying open until midnight or 2 a.m.
The restaurant’s full menu will be available for delivery or carryout from the stores open past midnight, the Yum Brands-owned brand said, reinforcing the importance of off-premises channels as the chain extends its hours.
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The late-night business makes a strong comeback
One of the surest signs yet that the industry has moved past Covid-related business challenges is the resurgence of late-night sales. Indeed, according to Circana, Crest data emailed to Nation’s Restaurant News, traffic in this daypart increased by 7.5% in Q2 2023 versus Q2 2022.
As such, the daypart has commanded quite the spotlight during second quarter earnings calls thus far, indicating that consumers’ usage of restaurants is back to breakfast, lunch, dinner, and?late-night munchies.
This recovery correlates in part to the return of late-night activities. Employment at bars is nearly back to pre-pandemic levels, for instance, while this summer’s Barbie and Oppenheimer blockbusters helped expedite a movie theater comeback. Concerts and shows have also returned and the Federal Reserve even cited Taylor Swift’s Eras Tour as a major boost to the economy. Of course, the biggest impetus behind the daypart's recovery is the continued?staffing recovery in the industry.?
Which pizza chain do you think has the most exciting concept? Vote your favorite!
Nation’s Restaurant News talked to leaders at five emerging pizza chains and we want to know who you think has the most exciting pizza concept??We want to hear from you.
CREATE 2023 Highlights: Experience the Excitement!
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