RESTAURANTS

Off premise, on target

Diners are returning to restaurants—it’s just that some eateries are going to look a little different. 

The latest pandemic-inspired redesigns come from IHOP and Panera Bread, and one thing is clear: To-go isn’t going anywhere.

On its head: IHOP is flipping the script with its new(ish) spinoff—Flip’d. First announced in 2019, it went on a pandemic hiatus, but the pilot is now ready for pickups. Location No. 1 will open in NYC this July. 

• What it was going to be…A takeout concept slated for big cities. 
• What it will be…There’s still no dine-in service, but IHOP wants to bring Flip’d to the suburbs and “non-traditional venues.” And you can order plenty more than pancakes: There are burritos, burgers, and yes, chicken sandwiches. 

“We anticipate that our delivery and takeout business is here to stay,” IHOP President Jay Johns said in a statement. Off-premise accounted for a third of the company’s Q1 sales, even while nearly all its restaurants were open for in-person dining.

New digs: Panera’s new restaurant is also fitted with all the pandemic fixings: a two-lane drive-through (one is just for “Rapid Pick-Up” service), upgraded kiosks, and mobile ordering to give customers the contactless experience they now crave. 

• It isn’t ditching in-person options (there’s a traditional dining room), and its bakery ovens will be front and center for a more immersive encounter.

Panera’s goal is to give customers more flexibility right at their fingertips, George Hanson, Panera’s SVP and chief digital officer, recently told Retail Brew. “People's phones are their gateway to accessing both digital and physical experiences. And so that's really what we're building,” he said. 

The bottom line: 60% of Americans plan to order food directly from a restaurant for takeout or delivery post-pandemic, according to Harris Poll survey data Retail Brew published in March. Beefing up off-premise is well worth the investment for fast-casual chains.—KM

DTC

My Cuup swimmeth over

Shoppers are planning to spend their shot girl summers by the pool—at least, that’s what new swimwear receipts suggest. This week, the NPD Group reported swimwear sales in March grew 185% YoY, and even surpassed March 2019 sales by 32%. (We told you so.)

Who’s diving in? DTC apparel brands, in a series of advantageously timed debut swimwear collections. First came Everlane, then MeUndies, and now, intimates brand Cuup. 

Cuup’s six-style, 53-size bikini range has been in the works for nearly two years, according to cofounder Abby Morgan. She told Retail Brew that Cuup’s fit and function-first ethos will help it out-compete rivals with identical expansion plans. 

Lap lanes: Swimwear has always been on Cuup’s radar, Morgan told us. But it could prove to be a timely “retention play” for the customers Cuup’s bras supported through 2020. 

• The brand sold roughly 350,000 bras and 200,000 pairs of underwear last year. Revenue grew nearly 4x YoY, but the brand didn’t share specific figures. 
• Cuup was the third-fastest growing DTC brand by web traffic in 2020, with site visits rising 409% YoY, per SimilarWeb data shared with Retail Brew.

With swim, “we can take what she likes most about bras and underwear, and leverage that to own more of her drawer and sell into different categories,” Morgan said. 

The takeaway: “This summer is poised to be one for the ages,” Morgan told us, especially if new DTC swimwear players can get their suits into suitcases.—HL 

SPONSORED BY LISTRAK

70 Billion Is One of the Larger Numbers

It also happens to be the number of messages Listrak analyzed to compile its 2021 Ecommerce Email Benchmark Report. Sev-en-ty BILLION.

Whew, let’s back up for a second. Listrak is the cutting-edge integrated marketing platform built specifically to drive results for retailers—in other words, they know a thing or two when it comes to increasing engagement, revenue, and loyalty at every point of interaction. 

So what’s in this report? Think benchmark results for 70,000,000,000 emails sent by 1,000+ retailers and brands across 11 different types of email campaigns in 2020. 

Listrak didn’t just hoover up the data on email campaign metrics, either; they broke them down into key findings, such as:

• Increased send volumes don’t degrade engagement rates
• Personalized product recommendations increase conversions 
• A single integrated platform is crucial

Want more insights based on a rather large number of marketing emails? Get Listrak’s 2021 Ecommerce Email Benchmark Report here. 

LABOR

Hiked up

Under Armour is doing more than the minimum. The sports giant on Wednesday said it would raise its hourly rate for 8,000+ retail workers to $15. 

Crunch time: In the face of what some are calling a US labor shortage, many companies are boosting pay to lure talent. Under Armour, for example, has 3,000+ jobs to fill. 

• Chipotle, which is on a 20,000-person hiring spree, said it would hike wages to an average of $15/hour by the end of June. 
• McDonald’s is bumping hourly rates at its US company-owned locations by 10% (on average). 

Amazon is offering a starting rate of ~$17/hour and $1,000 signing bonuses to entice 75,000 new workers. That’s on top of increasing hourly wages between $0.50 and $3/hour for 500,000+ workers back in April. 

Labor intensive: Wage hikes alone likely aren’t enough to correct the job market, Rebecca Givan, associate professor of labor studies and employment relations at Rutgers University, told Retail Brew. “If [retailers and restaurants] offered predictable, consistent schedules and a living wage, and health and safety procedures that workers feel confident in...they could find plenty of workers.”—KM

WHAT ELSE IS BREWING…

• Amazon will sunset its two-hour delivery app.
• Rare Beauty is expanding to Europe and the Middle East.
• Google will open its first store in NYC this summer.
• Poshmark collabed with Snap to develop in-app social shopping activities.
• Kohl’s is planning more private label apparel brands.

SPONSORED BY OPTORO

To increase return on investment, invest in returns. Retail customers today expect hassle-free convenience in the returns process, and if you meet those expectations, you can achieve retail’s holy grail: lasting loyalty. Optoro’s report shows you how, from the importance of an online portal to fast refunds. Read Optoro’s data report here. 

SWAPPING SKUS

Today’s top longreads across retail. 

Stride right: Rothy’s built a devoted fan base around its women’s ballet flats. Now, it’s attempting to replicate that success in men’s footwear—but the competition’s fierce. (Business of Fashion)

Good friction: You’ve been told the best online shopping experience is the one with the fewest speed bumps. That was a lie, this DTC study suggests. (Future Commerce)

The GOATs: Beauty brand Beekman 1802’s livestream formula includes diversified sales channels, multilayered storytelling and...baby farm animals? (Glossy)

FRIEND OR FAUX?

There are a lot of weird stories about brands making NFTs—almost too many, so we’re going to skip those altogether. Can you spot the fake below?

1. Coca-Cola’s new marketing campaign includes poems on bottles.
2. Lucky Charms and Rice Krispies are joining forces on a summer crossover cereal. 
3. Supreme had to delay the release of its lawn chair due to an “unsafe manufacturing flaw.”
4. Nike and Puma are battling over the trademark for “footware.”

Keep reading for the answer.

ICYMI

Catch up on the Retail Brew stories you may have missed.

• Walmart puts up a strong Q1
• Facebook makes livestream push with new shopping series
• Digitally native food and beverage brands explore restaurant partnerships

JOBS

Bigwig gigs don’t grow on trees. If you’re a high-level exec, looking for job opportunities in the usual places probably won’t cut it. That’s why we partnered with ExecThread, the platform with confidential jobs for people who’ve graduated beyond job boards. Today’s featured postings: VP of Marketing at a large home decor chain, Chief Commercial Officer at a leading online marketplace for luxury goods, and Director of E-commerce Sales at a leading durable home goods manufacturer. Check out all the super cool jobs here. 

FRIEND OR FAUX? ANSWER

There’s no official Lucky Charms x Rice Krispies crossover, but you can DIY some bomb Rice Krispie Treats.