The Habit Restaurants Inc. saw same-stores sales return to positive territory after slumping for the previous three quarters.
For the second quarter ended June 26, the Irvine, Calif.-based burger chain reported a 1.2 percent increase in comparable restaurant sales at company stores amid a 3.3 percent drop in transactions. For the second quarter of 2018, total revenue increased 23.4 percent to $102.9 million.
The uptick in sales was driven by a 3.9 percent increase in menu prices in late May which was initiated to offset California labor pressures, CEO Russ Bendel said. The rollout of delivery at 205 restaurants using DoorDash also had a positive impact on quarterly sales. The chain is also working with Postmates in the Sacramento area.
During the first quarter, Bendel said comps were dragged down by a free burger promotion that didn’t generate incremental sales, as it had done in the past. As a result, the company scrapped a similar promotion in June, where “dads and grads” get a free Charburger.
Later this year, Bendel said the chain will launch a test of a new proprietary app —another move to increase off-premise sales.
Bendel said the new app will have an improved user interface that streamlines ordering, and will be “optimized for our frequent guests.” Soon after the mobile app launch, restaurants will begin experimenting with self-ordering kiosks.
Of the seven new company operated restaurants that opened during the quarter, three of them were drive-thrus. Two franchise locations also opened during the quarter bringing the systemwide total to 231 locations.
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