Wingstop had more than $1 billion in digital sales in 2020 as a result of being a tech savvy restaurant chain.
Many people are cutting back on restaurant visits due to inflation. Wingstop, which had a new CEO in March, is hurting. Customer visits are down according to the company.
In an interview with Insider last week, Skipworth said he's betting on three plays to reverse that trend, including entering the chicken sandwich wars, introducing bundled meal deals, and partnering with a delivery service. DoorDash has been the chain's exclusive delivery partner for a long time.
Skipworth was previously Wingstop's CFO and COO.
Skipworth explained his three-pronged approach to increasing Wingstop's sales. Most Wingstop stores are in the US.
Three years ago, Popeyes introduced a spicy chicken sandwich that caused a war with Chick-Fil-A. Chicken sandwiches were introduced by other fast food chains over a year.
The chicken sandwich taco will be available in Tennessee and North Carolina early in the 21st century.
Wingstop didn't offer a chicken sandwich because they didn't need it.
It has been this way until now.
The sandwiches have the same flavors as the wings.
The company doesn't add new items to its menu often. Thighstop was created to save the brand from soaring chicken wing prices. He said the previous new menu item was introduced more than a decade ago when it introduced Boneless Wings.
The chicken sandwich will bring meaningful growth to the brand because consumers will be excited about the value, according to Skipworth.
It's the right time for a chicken sandwich. Skipworth said that they were able to negotiate good prices with their suppliers.
Wingstop's chicken sandwich is a la carte. The cost of spicy chicken sandwiches at both Popeyes and Chick-Fil-A is less than $5. Shake Shack's chicken sandwich costs $7.89 in Southern California.
DoorDash launched a white-label delivery platform in 2016 Wingstop and Chipotle were among the first to use the program.
Wingstop's app or website can be used to place orders for DoorDash.
Wingstop used DoorDash as an exclusive delivery partner, according to Skipworth.
Skipworth said this summer was a good chance to add another delivery operator.
Like DoorDash, Wingstop chose to use subscription services to build loyalty on its platform. DoorDash has over 10 million members around the world.
Skipworth said there was a consumer base that they weren't serving. We felt this was the right time to bring more guests into Wingstop through theUber platform.
Skipworth said the data shows that both delivery apps serve two separate consumer groups.
He doesn't think the impact on our existing DoorDash business will be significant.
Skipworth told investors during a conference call in July that they were encouraged by the early results.
Wingstop is the latest chain to break away from exclusive delivery partnerships to increase delivery sales. McDonald's had an exclusive partnership with the food delivery service. Postmates and DoorDash were added as delivery partners by Chipotle during the Pandemic of the 21st century.
In order to save money on soaring chicken wing prices, Wingstop developed a virtual brand called Thighstop.
Wingstop was able to save money by buying whole chickens from suppliers. The CEO said that the price per pound is now $1.15 due to excess inventory and deflation.
Wingstop is able to add value deals to the menu thanks to that. The recent introduction of the Boneless Meal Deal is driving traffic. A large fry is included in the value meal.
The sales trends improved during the quarter.
Wingstop has had 18 consecutive years of same-store sales growth, a vital indicator of a company's financial health. Skipworth said he has a plan that will lead to 19 consecutive years of same-store sales growth.
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