Knapp Track - July High-end Steakhouse/Fast Casual
In July, HIGH-END STEAKHOUSES had a -3.8% comp sales decrease and a -9.3% comp covers decrease. The spread between the weekly high comparable sales results and the low comparable sales results for July 2022 was 12.8%. The high week was the 1st week with a comparable sales result of 1.7% and the low week was the 2nd week at -11.1%. July 2 of 5 weeks had positive comparable restaurant sales results with the comp sales run rate for the first two weeks of JULY 2022, which is -4.7%. The comp sales run rate for the last three weeks of JULY 2022 is -3.2%.
HIGH-END STEAKHOUSES WEEKLY DATA
COMP SALES COMP COVERS
Week ending JULY 03 1.7% -4.6%
Week ending JULY 10 -11.1% -15.4%
Week ending JULY 17 -4.6% -10.2%
Week ending JULY 24 -6.0% -11.4%
Week ending JULY 31 1.1% -4.7%
MONTH OF JULY 2022 -3.8% -9.3%
Fast Casual July 2022 comparable restaurant sales are 3.0% versus July 2021 were 18.8% and were the 5th best comparable monthly sales in 2021. July 2022, comparable restaurant transactions were -5.1%.
SBUX REORG & MORE
After 20 years of service, John Culver is out as COO. Culver's exit comes only two months after North America Chief Rossann Williams left her job and four months after former General Counsel Rachel Gonzalez departed. The Company continues to seek a replacement for former CEO Kevin Johnson, who was fired in April. Only external candidates are being considered for the role, according to Schultz. Two board members are leading candidates - Richard Allison and Mary Dillion.
From the SBUX 8k - "In connection with a redesign of the organizational structure at Starbucks Corporation, the chief operating officer role is being eliminated, effective as of October 1, 2022, and John Culver will be departing from the role of group president, North America, and chief operating officer on such date. Mr. Culver will serve in an advisory capacity to Starbucks through January 1, 2023. In connection with eliminating Mr. Culver's current position, the Company will enter into a Separation Agreement and Release Mr. Culver. The terms of the Separation Agreement will provide (1) that Mr. Culver's employment with Starbucks will terminate on January 1, 2023, and (2) from October 1, 2022, through the Separation Date, Mr. Culver will remain employed as an advisor in a non-executive capacity at his current base salary.
The Company is reminding people:
- We are on an accelerated path to both grow and reinvent our Company,
- We are making important executive leadership changes in support of our next chapter of growth,
- Howard and John have been working together to design the next generation of leadership for Starbucks, and
- John's commitment to a smooth transition, as he will remain as an executive advisor through this calendar year to support these changes.
Also, yesterday a U.S. federal court ordered SBUX to reinstate its seven employees at a Memphis, Tennessee, cafe who were allegedly fired for supporting a union organizing campaign as the Company seeks to halt nationwide union elections. U.S. District Judge Sheryl Lipman in Memphis said the U.S. National Labor Relations Board had provided enough evidence that the firings earlier this year were motivated by anti-union animus. Lipman granted the order pending the outcome of an administrative case before the board. Starbucks said in a statement on Thursday it disagreed with the ruling and planned to appeal. The Company said the workers were fired for violating company safety policies and that it respected the unionization process. In a statement, NLRB General Counsel Jennifer Abruzzo called the decision "a crucial step in ensuring that these workers, and all Starbucks workers, can freely exercise their right to join together to improve their working conditions and form a union." The board is considering scores of other complaints alleging Starbucks interfered with workers' organizing rights in various ways, including by closing stores and firing or disciplining union supporters.
TKWY/GRUB Getting more aggressive
On the back of the Amazon Prime announcement, Bank of America (BAC) is offering eligible BofA cardholders a year of a Grubhub+ membership for free; the bank said Thursday, another example of banks sweetening their rewards programs to lure cardholders. Starting today, eligible cardholders can activate a one-year complimentary Grubhub+ membership trial, valued at almost $120. The offer provides $0 delivery fees on orders of $12 more, and exclusive perks from restaurants on Grubhub, Bank of America (BAC) said. "Giving our clients Grubhub+ free for a year is just one of the ways we're helping them navigate their finances and make every dollar go farther," said Christ Curtin, social media and reward executive for Bank of America (BAC). Another negative headwind for DASH
