November and December proved to be a challenging time for some restaurants because of rising COVID-19 cases and additional restrictions. BurgerFi, however, has a different story to tell.
Delivery sales jumped 121 percent in Q4, including 154 percent in December, which tied August for the highest year-over-year increase. October delivery sales rose 108 percent and November rose 104 percent, making Q4 the only period in which all three months saw more than a 100 percent increase.
The blistering off-premises pace helped same-store sales decline just 2.9 percent—a notable improvement from negative 9.2 percent in Q3, negative 33.7 percent in Q2, and negative 11.8 percent in Q1. Comps fell 13.4 percent in fiscal 2020 compared to 2019.
For the entire year, third-party delivery and BurgerFi’s app combined for more than 1.6 million orders, $38.8 million in sales, and increases of 41 percent and 65 percent in order volume and sales volume, respectively. BurgerFi finished the year with five consecutive months of more than 90 percent month-over-month delivery sales growth.
“We’ll continue to invest in technology with the goal of delivering a frictionless, omnichannel experience to drive guest satisfaction and sales,” CEO Julio Ramirez said in a statement.
Here’s how delivery sales grew year-over-year in 2020:
2019 versus 2020
- January: 41 percent
- February: 30 percent
- March: 35 percent
- April: 51 percent
- May: 111 percent
- June: 65 percent
- July: 76 percent
- August: 154 percent
- September: 91 percent
- October: 108 percent
- November: 104 percent
- December: 154 percent
BurgerFi appears to be riding a wave of momentum after officially debuting on the stock market in December. Midway through 2020, the roughly 130-unit burger chain agreed to a $100 million merger with OPES Acquisition, with promises of digital evolution and accelerated unit growth. BurgerFi was named QSR Magazine’s Breakout Brand of the Year because of its accomplishments.
The brand opened 11 stores in 2020. Since December, BurgerFi has debuted four stores, including its first drive-thru restaurant in Hamburg, Kentucky. The company expects to open between 30 and 35 company-run and franchised locations in 2021, or annual growth of roughly 30 percent. And that’s just the brick-and-mortar units; BurgerFi plans to grow its ghost kitchen platform, as well. In 2022, the restaurant is eyeing 40 to 45 more openings.
Internationally, BurgerFi’s franchisee in Puerto Rico will open a second store in San Juan. The chain also has a multi-unit franchise agreement for six locations in Saudi Arabia.
Fourth quarter revenue is expected to be $9 million compared to $8.9 million in 2019. Revenue for fiscal 2020 is projected to be roughly $34.3 million versus 34.2 million last year.
BurgerFi will celebrate its 10-year anniversary in February. To celebrate, the chain will roll out a birthday-themed menu, including a birthday cake milkshake consisting of confetti cake and vanilla custard, topped with a mini cupcake and concrete layers of birthday cake and custard. The chain will also promote a $10 deal featuring a BurgerFi cheeseburger, fries, and beer.
