Increased corporate spending in the third quarter is expected to extend into the December holiday season, a leading corporate dining network forecast Tuesday.
Johns Creek, Ga.-based Dinova LLC said corporate spending in restaurants increased 9.7 percent year-over-year in the third quarter, with 5.8-percent growth in transactions and a 3.8-percent increase in average check over the same period last year.
The network of corporate clients and more than 13,000 restaurants said it expects the momentum to continue through the fourth quarter.
“All signs indicate that companies are likely to book more events to celebrate customers and bring employees together this December,” said Vic Macchio, Dinova founder and CEO.
“We project December spending by corporations on meals and entertainment to increase 8 to 11 percent over last year,” Macchio added. In December 2014, spending on corporate dining increased 9 percent over the 2013 period.
Restaurant operators were also optimistic for the 2015 season.
Dan Drummond, chief marketing officer for the 102-unit Addison, Texas-based Bar Louie Restaurants, said the tavern and grill concept was hopeful for the holiday season.
“We’re looking forward to the holidays, and we expect them to be strong,” Drummond said in an interview with Nation’s Restaurant News.
The holidays are a lucrative time of year for restaurants that host seasonal parties and gatherings, Drummond added.
Corporate diners spend about 68 percent more than typical non-expense-account customers, he said.
Web portal through the corporation suggests Bar Louie for corporate holiday and other events.
“We believe the market will do very well for us this holiday season,” Drummond said. “We do a lot of parties through the season because we’re great for a social events. Our average guest spends about two hours and 15 minutes in our place. Some locations have private rooms and you can move tables around to accommodate parties of various sizes and shapes.”
Not only do corporate diners spend more than typical consumers, Drummond noted, but they also provide the brand the opportunity to provide a first-time trial to a new market.
“I believe that the corporate diner can try us for the first time — clearly we don’t have 100 percent brand awareness in our markets — and they are essentially eating us on someone else’s dime,” he said. “That’s a low cost of entry.”
Bar Louie, which currently has an 80-20 split in corporate-to-franchise restaurants and plans to open 14 to 16 new sites in the next year, looks at potential corporate-spending in tis location selection, Drummond said.
“As we look at new units and the process of evaluating new sites, we do look at what businesses and hotels are around there,” he said. “That offers an opportunity to cater to the corporate diner.”
Bar Louie in September also expanded weekend brunch to about a third of its locations.
“A number of locations are in lifestyle centers with a lot of foot traffic,” he said. “There was a demand for food at that time of day. With the onslaught of football, a lot of people are looking for place to eat and watch on Saturdays and Sundays. We’ve seen very strong early success.”
To help boost holiday spending, Drummond said Bar Louie is providing on-site themed collateral to let existing guests know about December offerings as well as working with event planners to build holiday business in the restaurants.
Bar Louie has restaurants in 26 states.
Contact Ron Ruggless at [email protected].
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