Hot Head Burritos is a 78-unit fast-casual chain based in Dayton, Ohio. When COVID-19 hit the nation, 63 of the brand’s restaurants had to settle in for long-term dining-room closures. Ray Wiley, CEO of Hot Head Burritos, spoke with us about his experiences marketing against governor’s messages and the family of franchisees.
In March, when Ohio announced the closing of dine-in restaurants - with Indiana following suit the next day - our worst fears from the previous weeks quickly materialized, as 63 of our restaurants would have to navigate carry-out service only. We were very concerned the same would happen to the other 15 restaurants in the states of Kentucky, Pennsylvania, Texas, Connecticut, Massachusetts and Florida. The corporate team immediately went into full-fledge crisis mode, reviewed all information being sent out by the state health departments, began a coronavirus discussion board for franchisees and held franchisee conference calls multiple times per week to make sure communication lines were open and we were fully aware of any situations that were arising in their markets.
Hot Head Burritos took proactive initiatives by installing a plastic sheeting “wall” at the serving line of its stores in response to the coronavirus outbreak. In an effort to protect both our employees and customers, we decided this was an immediate action we could take to do our part. Instructions were sent to the franchisees to give them a quick, easy and cost-effective way to provide a safer environment for all involved. Both employees and customers voiced their appreciation for our actions.
Our focus on online ordering over the previous two years allowed us to quickly shift our marketing message to spotlight online ordering. The second quarter’s limited time offers and marketing messages were quickly scrapped. In addition, “We’re Still Open” had to become the dominate message as many governors said, “restaurants are ordered to close.” The words “dining rooms” were barely a footnote, causing the public to think all restaurants were closed completely.
Curbside pick-up at Hot Head was born when the corporate IT team jumped into action and created a web-based application that allowed customers to send a text message to the store when they arrived to pick up their on-line orders. Signs were quickly produced and installed in store parking lots, even before permission was requested from landlords or municipalities - this was survival!
After the initial shock of business and restaurant closings, which caused sales to dip 40% to 50%, the stores have rebounded. Chain-wide, stores are comping up 5% from last year with some stores sustaining 25% year-over-year gains which is truly the silver lining in an otherwise dreary story.
This is part of our Stories from the Front Lines series.
