QSR October 2022

DEPARTMENT INNOVATION

TheRiseof theDigital Cafe Evolution these days isn’t confined to off-premises—it’s happening within the four walls of brands nationwide. B Y G A R Y S T E R N

Nick Marsh, who has been Chopt’s CEO for 15 years, says digital cafes emerged at the fast casual because “the definition of convenience continues to evolve, and the bar continues to be higher.” Through the pandemic, customers got into the habit of ordering ahead and picking up food, “so we wanted to create a physical footprint that matched the convenience of the app. No lines, you walk through or come in, and order at the kiosk; it’s easy, accurate and fast,” he says. Seating at the new digital cafes vary from 10 or 15 seats and up to 45. When Chopt tested its prototype café, Marsh says the brand learned some people still want seats. “That was the aha moment,” he says. “You don’t have to take things away to make the order experi ence easier.” It also built a salad bar ( an obvious pun ) that faces the production kitchen. Many guests find the experience retro and enticing—they can see their salads being prepared while choosing among Chopt’s 60 different salad ingredients and 18 dressings. The smaller cafés are also designed to be more sustainable and efficient. Marsh explains

Café Rio Mexican Grill’s digital store features drive-thru, curbside pickup, digital kiosk, and mobile-app ordering.

T rends have accelerated over the last few years. Customers want meals prepared fast and served in a convenient fashion. Off-premises, drive-thru, delivery, and mobile are spiking, and traditional sit-down dining, at least in quick service, has taken a proverbial backseat. Hence, two very different fast-casual chains, Chopt Creative Salad, based in New York City, and Café RioMexican Grill, housed in Salt Lake City, Utah, have stepped up by introducing digital cafes, which rely on drive-thrus, order ahead, and a smaller footprint. At Chopt, which operates 84 company-owned retail stores ( none franchised ) in 10 states along the East Coast and South, digital, off-premises sales now constitute nearly 50 percent of overall rev enue. In July, it introduced the brand’s first contact-free outlet in Arlington, Virginia, and plans on adding f ive “digital cafes” by the end of 2022. Most Chopt stores require from 12–15 staffers to operate, but the smaller digital cafes make due with eight to 12, or three-quarters the typical staff, curtailing overall costs and reducing the complex ity of hiring in a tight market.

“the smaller footprint in the back of the house, and the new HVAC [heating, ventilation and air-conditioning ] will drive a 30 percent reduction in kilowatt hours versus our average store.” Despite reduced staff ing, Chopt assigns employees who spe cialize in customer service. They welcome guests and assist them with any questions about ordering or the kiosks. “In the restau rant business, you are constantly focusing on hospitality and how to educate and welcome guests,” Marsh says. Of the Virginia Chopt location, one Yelp consumer wrote, “The interior is sleek [minimal seating though] with a few kiosks you could use to order. There’s also a whole wall of shelves for online pickup orders and a TV screen to let you know which shelf your order is sitting.” Marsh says the digital café is “ultimately more personalized when you combine, this physical footprint with the evolution of our app, and the loyalty program, and ability for customers to get perks and benefits. The whole ecosystem of the app and the store makes for the best experience.” Café Rio Mexican Grill has 150 locations in 11 states, mostly

CAFÉ RIO MEXICAN GRILL

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OCTOBER 2022 | QSR | www.qsrmagazine.com