Dive Brief:
- Dickey's Restaurant Brands has launched a new virtual brand, called Trailer Birds Hot Chicken, which features Nashville hot chicken tenders and sandwiches, sides and desserts available via pickup or delivery. The menu is available via trailerbirds.com or through third-party delivery apps. Catering options are available on ezCater, according to a press release emailed to Restaurant Dive.
- Trailer Birds marks Dickey's fourth virtual brand. The company jumped into the virtual space with Wing Boss in April 2021 and followed up with the launch of Big Deal Burger and Barbecue at Home.
- Dickey's foray into both the virtual and ghost kitchen space illustrates the company's aggressive and diversified expansion plans through nontraditional channels, reflecting its growth in digital sales.
Dive Insight:
Though Dickey's virtual brands haven't been on the market long, they have already proven to be successful. Dickey's CEO Laura Rea Dickey said the chain's initial Wing Boss concept performed so strongly it drove Dickey's to explore additional delivery-only concept ideas, according to a press release. Within its first five months in operation, Wing Boss expanded to more than 70 locations and added a brick-and-mortar presence as well.
Big Deal Burger helped triple Dickey's average weekly volume by store within its first month, per the release. Both brands increased the number of locations they operated out of by 24% in Q2 2021, with monthly sales increasing 315% from March to June.
Virtual brands may be especially appealing to franchisees who are looking to optimize their kitchen capacity while creating a new revenue stream for little capital investment. These operators also benefit from Dickey's diversification of its brands — a hot chicken concept that sells sandwiches and tenders seems unlikely cannibalize a burger concept, for example, or a wings concept.
Dickey's is also growing its delivery and pickup footprint through a partnership with Ghost Kitchen Brands, with plans to open over 100 locations in the U.S. and Canada through 2022. In June, the company announced a similar partnership with Combo Kitchen to expand its brand through ghost kitchens nationwide. Dickey's also committed to open 25 host kitchens last year through a partnership with Franklin Junction.
Delivery exploded in 2020 and 2021 as consumers navigated the pandemic environment. Off-premise business represented 83% of all foodservice visits from September 2020 to September 2021, with carryout increasing by 23% and delivery growing by 27%, according to The NPD Group. Dickey's has leveraged this trend to generate record-breaking sales recently, including its biggest jump in digital business over Labor Day weekend, at a 34% increase.
That said, there are some challenges that can come with creating a new virtual brand. The space is getting crowded, for example, with heavyweights like Bloomin' Brands', Brinker International and Applebee's competing alongside popular concepts like MrBeast Burger and TikTok Kitchen Brand. This intensifying competition could lead to a shakeout.
