Dinova Projects Firms Will Spend 10 Percent More at Restaurants This Holiday Season
Dinova LLC reported today that overall restaurant spending by its corporate clients grew 7.1 percent year-over-year in the third quarter of 2014. The total average check paid by Dinova clients increased 6.5 percent year-over-year, from $51.36 in last year’s third quarter to $54.74. Dinova’s clients, which include one-third of the country’s highest-travel-spending companies, spend more than $2 billion on dining andcatering annually.
Looking towards the typically lucrative holiday season, Dinova projects that corporate dining sales will jump by a notable percentage. “If current trends hold, we could see corporate dining spend in December increase by more than 10 percent over last year,” said Dinova founder and CEO Vic Macchio. Last December, Dinova’s corporate client spending increased nearly nine percent over 2012 levels, with a 4.5 percent increase in transaction volume.
The third quarter results continue the trend of corporate dining increases outpacing positive metrics coming from the restaurant industry as a whole. According to the restaurant industry snapshot from TDn2K’s Black Box Intelligence and People Report, same-store sales grew 1.6 percent during the quarter. The U.S. Commerce Department reported that sales in bars and restaurants were up 0.9 percent in October, the biggest increase since May.
“As we look at our month-to-month statistics, and contrast them against overall industry reports, it’s clear that corporate dining has played a prominent role in getting many restaurant categories out of the red,” said Macchio. “As the Global Business Travel Association (GBTA) noted in October, companies are continuing to put travelers on the road to achieve their business objectives. Road warriors have to eat, and restaurants are benefitting from the positive business climate we see as the year comes to a close.”
DINOVA NETWORK RESTAURANTS POISED TO GAIN DURING HOLIDAY SEASON
The turning of the calendar to December typically leads to more group outings to restaurants, and this year’s holiday season promises to be an improvement over recent years. “Sales trends bode well for a superb holiday season,” said Macchio. “Corporations are likely to be more willing to spend on employee outings and/or year-end celebrations at a restaurant with a client or prospect.”
This upswing continues a trend shared by GBTA, which reported a 7.1 percent increase in business travel spend in the second quarter. At the time, GBTA projected that overall business travel spending will increase 6.8 percent to nearly $300 billion this year. It is also consistent with an outlook for the retail industry reported by the National Retail Federation, which projected that holiday sales in 2014 will rise 4.1 percent over last year – the largest increase since 2011.
Dinova’s nationwide network includes more than 12,000 independent and chain restaurants, encompassing all price levels and cuisines. Dinova helps companies gain value for their dining spend by helping steer business travelers and event planners to restaurants in the Dinova network.
Dinova LLC (www.dinova.com) connects restaurants and corporations in a nationwide network, driving valuable business dining to restaurants and enabling corporations to reduce travel and entertainment expenses. Automation makes the process seamless to both diner and restaurateur, with no loyalty cards or key entries required. Dinova is headquartered in Johns Creek, GA, a suburb of Atlanta.