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Capriotti’s and Wing Zone: The State of the Restaurant Industry

As we launch into 2024, the restaurant industry is poised at the edge of a promising resurgence fueled by innovation and resilience. Hudson Riehle, Senior Vice President of the Research and Knowledge Group for the National Restaurant Association, predicts a continuation of the positive trajectory initiated in 2023. “The consumer continues to hold restaurant spend in a preferred and, in many cases, essential category,” Riehle says. In fact, the food service industry is forecasted to reach $1 trillion in sales for the first time in history in 2024, according to the National Restaurant Association. As restaurant revenues rise, Capriotti's and Wing Zone emerge not just as participants but as pioneers, strategically positioning themselves to capitalize on the industry's upward swing.

Strategic Solutions to Supply Chain Challenges

Despite recent supply chain adversities, Capriotti’s and Wing Zone have illustrated their resilience and strategic foresight. Their success is anchored in longstanding partnerships with leading food vendors such as SYSCO, and national contracts with major brands such as Snake River, Butterball, and Tyson, highlighting a dedication to quality and reliability. Ami Lindsey, Capriotti’s and Wing Zone's Senior Vice President of Supply Chain, pointed out the crucial role of SYSCO as a partner, emphasizing their readiness for natural disasters or labor disruptions in food distribution. “SYSCO’s comprehensive crisis management strategies are designed to address virtually any challenge that might affect the supply chain of Capriotti’s and Wing Zone,” said Ami. Through these robust partnerships and proactive planning, Capriotti's and Wing Zone not only navigate supply chain difficulties but also reinforce their commitment to ensuring franchise partners are protected.

Confronting Cost Challenges with Innovation and Efficiency

In an environment where restauranteurs are grappling with rising labor costs and many are feeling the pinch of rising food costs, Capriotti's and Wing Zone stand out for strategically handling these issues. Their adoption of ArrowStream, a cutting-edge supply chain intelligence platform, exemplifies how technology can streamline inventory management, marrying cost-efficiency with sustainability. By optimizing operational efficiencies and embracing technological solutions to reduce waste, Capriotti’s and Wing Zone are not merely surviving the impact of increased costs but thriving amidst it.

In response to the lingering effects of the pandemic on food costs, both Capriotti's and Wing Zone have turned to menu innovation as a critical tool for consumer engagement. This strategy, promised by the introduction of fan-favorite offerings like Capriotti's American Wagyu French Dip sandwich and Wing Zone's bold flavor profiles, aims not just to attract but to delight and retain customers. These culinary innovations address the evolving tastes and preferences of diners, ensuring that every visit to Capriotti’s or Wing Zone is a memorable experience. Cristin O’Hara, Managing Director of Bank of America Global Commercial Banking’s Restaurant Group, highlights the critical role of menu innovation in driving foot traffic: “Franchises will need to make sure their menus continue to bring traffic through the door.”

Adapting to the Shift Towards Off-Site Dining

The National Restaurant Association also highlighted a significant shift towards off-premises dining, with about 75% of restaurant traffic now coming from delivery, drive-thru, and carryout services. Capriotti’s and Wing Zone have adapted to this trend by enhancing their digital infrastructure. This includes the introduction of streamlined mobile ordering, virtual payment options, and integration of third-party delivery services. Such innovations ensure that Capriotti’s and Wing Zone remain relevant and accessible to their customers, regardless of how dining preferences evolve.

A Call to Action for Future Franchise Partners

Capriotti's and Wing Zone exemplify how embracing innovation, resilience, and strategic foresight can not only navigate but lead through the complexities of the restaurant industry. Their ability to address supply chain challenges, innovate menus, and adapt to shifting dining trends positions them as exemplary models of success. As the restaurant sector evolves, Capriotti's and Wing Zone present an unparalleled opportunity to be part of the industry's dynamic growth and success. With the restaurant industry projected to grow by 200,000 jobs and reach a total employment of 15.7 million by the end of 2024, Capriotti’s and Wing Zone are positioned for significant growth, inviting potential franchise partners to get in on the action.



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