Fast-casual operators are in a collective panic after seeing a recent decline in the overall market. Millennials, who represent 75.4 million U.S. consumers, are abandoning the fast-casual space for improved fast food, cheaper groceries, and app-based food delivery (e.g., voice-order meal technology). In an industry where labor costs are at an all-time high, it’s critical to expand offerings without adding operational costs.
In addition to this challenge, fast casual operators have struggled to increase alcohol to food sales, with the typical fast-casual establishment driving only 3-6.5% of their revenues beer and wine sales. Many iPourIt fast-casual operators generate 8-12% of alcohol to food sales, with best practice being over 20%. Some fast-casual operators can’t serve alcohol because the serving age is 21, so they have recognized many of their patrons choose to drink elsewhere, often dismissing their location due to long lines and a limited selection of beer or wine. iPourIt’s self-serve draft system is a high margin product, giving operators increased alcohol sales with less incremental overhead cost. Our fast-casual operators pour an average of 184,000 ounces a year at an average price of $0.457 per ounce. However, our best-practice fast-casual operator pours 700,000 ounces a year!
Since millennials still go out to eat (or drink) multiple times per week, there is still a rich opportunity for fast-casual operators to attract them and others. The self-serve model offers patrons the freedom to create one’s own experience without the hassle of waiting in line at a bar or having to drink and pay for a full pour. This patron experience is unique to iPourIt’s self-serve concept and is not evident until you visit one of our operators. Check out our locations here.
Our fast casual operators include pizza, wings, poke, brats, and other concepts. In a market known for large lunch crowds and light dinner crowds, operators who introduce self-serve beer dispensing equipment have dramatically increased dinner revenue.
The “sweet spot” for fast casual deployment is 18-24 taps, depending on size, concept and food offerings. In addition to craft beers, in order to meet all demographic needs, we suggest two white wines, two red wines, and one cider tap.
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