A chain restaurant analyst predicts that the $1200 stimulus checks will cause a bump in restaurants' sales
- Business Insider hosted a SPOTLIGHT digital live event with restaurant industry leaders last week, moderated by retail correspondent Kate Taylor.
- Veteran analyst John Gordon predicted that restaurants would soon see a bump in sales as Americans receive stimulus checks.
- Raising Cane's founder and CEO Todd Graves also said that his chain has seen a recent increase in sales as "people are spending more money."
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Last week, Business Insider's Kate Taylor hosted a SPOTLIGHT digital live event with restaurant industry leaders. Checkers and Rally's CEO Frances Allen and Raising Cane's CEO Todd Graves were joined by veteran analyst John Gordon, who has 45 years of experience in the restaurant industry.
While Gordon acknowledged that restaurants are facing significant challenges during the pandemic, he said that restaurants are likely to see a bump in sales soon due to the stimulus payment.
"Government checks are beginning to make their way through," Gordon said. "And the last time that happened in the Obama administration, that was an immediate adrenaline shot to consumer spending."
Gordon said that he's seeing a gradual improvement in conditions for restaurants that have drive-thrus. And Graves said that around 70% of Raising Cane's income is currently from drive-thrus.
Graves also said he's seen a significant increase in customer spending in the last few days. "Stimulus checks are out there right now," Graves said. "People are spending more money. We started seeing it yesterday."
The key for restaurants to capitalize on that stimulus money, Graves said, is to actively let customers know that they're open for business
"The main thing is let your customers know you're open. Let them know you're open," Graves said. "Put out a yard sign, put out a banner, all your social media channels down to calling your customers."
Gordon said that he drives around in the evenings to see how restaurants' approaches differ. Some have signs out reminding customers they're open, and some have gone completely dark. He said the latter is a mistake. "Maintain some kind of relationship to your employees that at least some of them have jobs and at least have some lights on for customers that are going to come by."