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business Monday 9 noveMber 2020

Insider Q&A: Bloomin’ Brands CEO David Deno

It offered them relief pay and business. A: We're very proud of that. Our
health insurance while restaurants team actually gets emotional in
were closed. Q: How much business has shifted the restaurants when I visit them
As restaurants reopened, menus to delivery and carryout? Will that because of that. We did it for two
were streamlined to cut costs and be a long-term change? reasons.
ease growing delivery and carry- A: We are now 39% carryout and One, to help our country and help
out orders. Over the summer, the delivery (up from 20% last year). our employees because we felt it
Tampa, Florida-based company Carrabba's is a stitch higher than was the right thing to do and we
launched a new delivery-only that because Italian food, as you had the financial resources to do it.
brand, Tender Shack, which makes can imagine, delivers so well. Now And two, we knew that this would
fried chicken in Carrabba's kitch- what has the pandemic done? It improve engagement and im-
ens. made current trends happen just prove how people feel about the
Those efforts helped Bloomin' out- that much faster. company. And if they're already
perform some rivals. U.S. same- We saw, years ago, delivery and on our payroll, when we turned the
store sales were down 13% in the carryout would be a big part of our restaurants back on, they would be
July-September period. Industry- future, and we felt that we need- there. We wouldn't have to go out
This undated photo provided by wide, spending at full-service U.S. ed to be there. We invested heav- and hire a completely new team.
Bloomin’ Brands, Inc. shows David restaurants was down 25% in the ily behind it and it really paid off
Deno, the CEO of Bloomin’ Brands. same period, according to NPD when it came time to close down Q: Thousands of small restaurants
Associated Press Group. the restaurants. received Payroll Protection Pro-
Deno spoke with The Associated gram (PPP) loans from the federal
By DEE-ANN DURBIN Press about the impact of the Q: What other lasting changes do government earlier this year. But
AP Business Writer coronavirus. His comments have you expect from the pandemic? in many cases, the money has run
As coronavirus lockdowns hit the been edited for length. A: I think people will continue to mi- out, and restaurants continue to
U.S. in March, Bloomin' Brands CEO grate to brands they trust and that struggle. What would you like to
David Deno called an emergency Q: How are things looking as you are financially strong. If you have see the government do to help the
meeting for his 12-member execu- head into winter? a strong business that offers great industry?
tive team. A: What we're seeing is, as long as service and great food, has scale A: The big companies should not
"We collectively said, 'What we you make sure you serve your food advantages, you're going to be in get help. If you happen to be in a
do today and over the next few in a safe environment, we are in re- a better place. And brand trust has chain that wasn't properly capital-
months will be remembered for- ally good shape. I don't make light always been a big issue... brand ized or whatever, that's your deci-
ever, so let's be proud of the de- of it at all, and there are concerns trust is going to be crucial as we go sion. When the PPP came out, we
cisions we make during this time,'" out there. But we're finding our cus- forward. So I'd say the off-premise never pursued it. We have resourc-
Deno said. tomers want to come in and eat nature of the business and conve- es in the capital markets to address
There have been plenty of deci- our product and enjoy our service. nience, I'd say brand trust in food this. So I do think, given the pain
sions. Bloomin' Brands — which op- A large part of our footprint is in the quality and service and cleanliness that this has caused to thousands
erates more than 1,100 Outback Texas and Florida area, where ac- and I would say financial scale and and thousands of people and in-
Steakhouse, tually eating outdoors is preferable safety. dependent restaurants,
Carrabba's Italian Grill, Bonefish than the hot summer. So that's go- I would hope that our government
Grill and Fleming's Prime Steak- ing to help us. And then we think Q: You didn't furlough any work- would take a look at that and pro-
house restaurants in the U.S. and up North, people that decide not ers even when restaurants were vide some assistance to the inde-
Brazil — decided not to furlough its to come in the restaurants, we still closed. Why did you decide to do pendent restaurant companies
93,000 employees. have a great carryout and delivery that? that are out there.q

Hershey's Halloween sales up despite fewer trick-or-treaters

By DEE-ANN DURBIN online sales capacity also rus cases rising, many peo-
AP Business Writer helped move more can- ple decided not to give out
Hershey says its Halloween dy. Hershey's e-commerce candy or hold parties. But
candy sales were up slight- sales grew 80% in the third Hershey managed to buck
ly this year despite a lower quarter. Early Halloween the trend. "'We saw strength
turnout of trick-or-treaters sales helped Hershey to a early in the season for at-
amid the pandemic. stronger-than-expected home consumption as well
Michele Buck — chairman, third quarter. The company as baking and crafts, and
president and CEO of Her- said Friday its sales rose 4% we saw lower participa-
shey Co. — said Friday that to $2.2 billion in the July- tion in trick or treat in the
earlier shipments of Hallow- September period. That final two weeks, but over-
een candy to stores helped was ahead of Wall Street's all, the category showed
boost sales. So did market- estimates, according to resilience in a very volatile
ing messages that suggest- analysts polled by FactSet. environment," Buck said.
ed safe ways to celebrate Hershey reported net in- The National Confectioners
and even included maps come of $447.4 million for Association had showed This April 21, 2020 file photo shows a Hershey's chocolate bar
showing community coro- the quarter. Adjusted for strong sales gains for Hal- with almonds in Philadelphia.
navirus risk levels. one-time items, earnings loween candy in August Associated Press
"We made that decision to were up 15.5% to $1.86 per and September as stores to put up holiday displays will buy that holiday or sea-
lean in and drive and build share. That was also ahead set up displays earlier. But despite the pandemic. sonal product, whether it's
a Halloween season versus of forecasts. Buck said ini- the association said Friday Some retailers were ner- Easter or whatever, early for
back away from it," Buck tial estimates indicate that it didn't yet have sales data vous about Halloween and in-home consumption," she
said Friday on a confer- industrywide candy sales for October. Buck said Her- downplayed the holiday, said. "If you get it out there,
ence call with investors. were down in the Hallow- shey's results should give she said. it kind of sparks the trigger
Buck said investments in een period. With coronavi- retailers more confidence "We know that consumers of fun moments earlier."q