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Dinova: Business Restaurant Spending in Third Quarter Outperforms Overall Market
ATLANTA – November 17, 2015 – Dinova LLC reported today that corporate spending in restaurants increased 9.7 percent year-over-year in the third quarter of 2015, with a 5.8 percent growth in transactions and average checks up 3.75 percent over the same period last year.
The strong corporate spending in restaurants is in contrast to the limited growth of the restaurant industry as a whole. A recent TDn2K Black Box Intelligence Report showed that overall restaurant sales grew only 1.5 percent and traffic declined by 1.3 percent in third quarter (compared to second quarter).
“The healthy business segment is not only outperforming the overall market, but clearly compensating for lackluster results in consumer dining segments. In the current business climate, corporate restaurant traffic drives profits and keeps most metrics positive,” said Vic Macchio, founder and CEO of Dinova. “Corporate guests are increasing average check sizes and delivering high margin business to restaurants.”
Dinova influences more than $3 billion annually in meals and entertainment expenses through its corporate client network which includes more than one-third of America’s 100 highest-travel-spending companies. Dinova’s 13,000+ nationwide restaurant network includes local independents as well as national full-service and limited-service restaurant chains, encompassing all price levels and cuisines.
Business Travel Industry Statistics Confirm Restaurant Spend Increases
Third quarter statistics revealed by several travel-focused companies offer foundational elements supporting the healthy corporate dining figures Dinova reported today. Sabre, a leading travel distribution service provider that supports the majority of corporate travel agencies in the U.S., reported a six percent increase in North American bookings, driven primarily by business travel. Hyatt Hotels also reported strong third quarter corporate sales, echoing reports from other leading hotel chains that the third quarter had an increased number of hotel bookings from business travelers. The Global Business Travel Association also cited a growing number of day and group trips by business travelers in recent months.
“Companies are putting their people on the road to service existing customers and win new business,” said Macchio. “The current climate serves restaurant owners and marketers well, particularly those that have invested in building relationships with corporations that are increasingly steering their employees and event planners to preferred restaurants.”
Holiday Season Forecast: Corporate Event Spend On The Rise
The momentum from the third quarter also bodes well for a lucrative fourth quarter for restaurants that host or cater corporate holiday events. “All signs indicate that companies are likely to book more events to celebrate customers and bring employees together this December. We project December spending by corporations on meals and entertainment to increase eight to eleven percent over last year,” said Macchio. In December 2014, corporate spending increased nine percent over the prior year.
“We are taking a number of steps to engage with corporate event planners this holiday season,” said Dan Drummond, chief marketing officer of Bar Louie, a Dinova restaurant partner. "Beyondon-site collateral, we've leveraged the access Dinova provides to event planners to increase awareness that we have great locations and can easily accommodate groups of all sizes." Bar Louie, which recently openedits 102nd location in the U.S., reports that guests from Dinova's client network spend 68 percent more on average than regular guests.
Dinova: Corporations Spending More at Restaurants
Second Quarter Results Provide Good News for Industry Experiencing Traffic Slowdowns in Transient Dining
ATLANTA, July 26, 2015 -- Dinova LLC reported today that overall restaurant spending by its corporate clients grew 3.3 percent year-over-year in the second quarter of 2015, enhancing restaurant revenue and traffic across the U.S. Dinova's corporate clients recorded 4.1 percent more dining transactions in the second quarter, a positive figure that helped counteract negative overall traffic trends. According to TDn2K's Black Box Intelligence Report, overall transient restaurant traffic dropped 1.7 percent in the second quarter.
Dinova's clients, which include more than one-third of America's highest-travel-spending companies, spend $3 billion on catering and dining annually. So far this year, Dinova has added more than 40 large corporations and hundreds of smaller companies – which cumulatively spend more than $500 million on dining every year - to its client roster. Dinova's nationwide restaurant network includes more than 12,000 independent and chain restaurants, encompassing all price levels and cuisines.
GBTA Revisions, Hotel Reports Foreshadow Positive Corporate Dining Traffic
New projections shared by the Global Business Travel Association (GBTA) Foundation support this trend identified by Dinova's statistical analysis of sales reports. Revised GBTA data projects overall U.S. corporate travel expenditures to jump nearly five percent over 2014 totals, surpassing $300 billion. Looking farther ahead, GBTA anticipates 2016 corporate spend increasing 5.4 percent to $319 billion.
Restaurant owners should also be enthused by GBTA's revised corporate group travel outlook, which sees group trip volume growing nearly one percent this year and leaping more than three percent in 2016. "Economic fundamentals remain strong," said GBTA executive director Michael McCormick. "Business travel will continue to have positive momentum as we move toward 2016."
On the lodging front, TravelClick's Hotel Industry Outlook shows that advance hotel bookings for the year ahead are up more than three percent, even with average rates up nearly five percent.
"All the indicators regarding business dining and catering are positive for restaurants, particularly those that are engaged with Dinova clients," said Vic Macchio, founder and CEO of Dinova. "What's more, corporations are steering their travelers and the admins that book private dining towards Dinova network restaurants at a greater rate than ever. So far this year, dining by Dinova clients at Dinova network restaurants is up 10 percent, demonstrating the effectiveness of the Dinova program for corporations and restaurants alike."
By shifting more spending to preferred suppliers – including Dinova network restaurants - companies gain more value from the employee travel expenses they incur. Dinova's corporate clients get a monthly rebate on their dining spend at Dinova network restaurants. Dinova will showcase its network to more than seven thousand corporate travel industry professionals at the annual GBTA conference in Orlando on July 26-29 at booth number 565.
Dinova: Corporate Dining Remains Strong in First Quarter
Spend Gains Reflect Steady Traffic Growth from U.S. Companies
ATLANTA, May 26, 2015-- Dinova LLC reported today that overall restaurant spending by its corporate clients grew 5.5 percent year-over-year in the first quarter of 2015, helping restaurants overcome sluggish traffic from transient customers. Dinova's corporate clients recorded 3.4 percent more dining transactions in the first three months of 2015, a positive figure that contrasts against an overall industry traffic decrease of 0.6 percent, as reported by TDn2K's Black Box Intelligence.
Dinova's clients, which include more than one-third of America's highest-travel-spending companies, spend more than $2.5 billion on catering and dining annually. Dinova's nationwide restaurant network includes more than 12,000 independent and chain restaurants, encompassing all price levels and cuisines.
Statistics released by the Global Business Travel Association in April support trends Dinova sees regarding corporate spending. GBTA projects the number of domestic business trips in 2015 will jump 1.7 percent to 492.1 million trips – a marked increase after three quarters with minimal changes in GBTA's forecast. GBTA anticipates overall U.S. business travel spend to grow 3.1 percent to $295.7 billion in 2015. GBTA's executive director concluded, "Thanks to a healthier domestic economy and a stronger U.S. dollar, companies are putting more travelers on the road."
"Menu inflation certainly has a role in driving higher sales, but it is the rise in business travelers on the road that helps restaurants counter bad weather, weak traffic or other negative factors," said Vic Macchio, founder and CEO of Dinova. "There is nothing restaurant owners like better than more guests using corporate credit cards, and the current environment is facilitating just that."
Dinova Restaurants Gain as Corporations Guide Road Warriors to Network Locations
Restaurants in Dinova's network benefit from these trends, via both increased traffic and higher average check totals from guests carrying corporate credit cards.
A New York restaurant group, which includes Brasserie Ruhlmann, Le Colonial and Orsay, has been in the Dinova network since 2009. The number of cumulative transactions from Dinova corporate clients at these three restaurants grew more than 70 percent year-over-year in the first quarter, with these diners' usually spending significantly more than typical guests.
"Our average check from Dinova clients increased 16 percent to more than $200 in the first quarter," said Bernard Collin of Brasserie Ruhlmann, an upscale restaurant located in the heart of Rockefeller Center. "Dinova has unquestionably increased our visibility to business travelers and the administrative staff typically making dining reservations for executives."
Dinova: U.S. Companies Spent 5.6 Percent More in Restaurants in 2014
Dinova Network Restaurants See Huge Holiday Dining Spike; 2015 Forecast is Promising
ATLANTA – March 2, 2015 – Dinova LLC reported today that overall restaurant spending by American companies grew 5.6 percent year-over-year in 2014. Corporations also dined out more often; transaction volume was up 3.6 percent in 2014. Data was gleaned from Dinova’s clients, which include more than one-third of the country’s highest-travel-spending companies and spend more than $2.5 billion annually on dining and catering.
With restaurants registering impressive overall fourth quarter and December gains, corporate spending led the way. Companies spent nine percent more than in December 2013, registering a six percent increase in transaction volume. TDn2K’s Black Box Intelligence reported that same-store sales grew 3.1 percent in December, the best month on record since January 2012.
From the perspective of Dinova network restaurants, December was a landmark month. After a concerted marketing effort by Dinova staff and influencers within corporations, Dinova’s clients spent 130 percent more at Dinova network restaurants during the holiday season than in 2013. (Dinova’s clients gain more value from their dining spend when they steer more in-house catering and travelers to Dinova network restaurants.) Dinova’s overall fourth quarter numbers were consistent with full-year results.
“Looking across 2014, corporate dining helped keep restaurants afloat during the weather-challenged first quarter, and consistently delivered steady business as the economy improved and more companies put travelers on the road,” said Dinova founder and CEO Vic Macchio. “Interestingly, the increases we saw in October and November did not mirror the larger growth of transient dining spend. Corporate dining, at its base, is steady and predictable, and restaurants with access to corporate event planners and travel managers enjoy a less volatile planning environment. These restaurants are less susceptible to the economic damage that can be done by weather-related events or energy issues.”
Dinova connects restaurants and corporations in a nationwide network, driving valuable business dining to restaurants and enabling corporations to reduce travel and entertainment expenses. Dinova’s network includes more than 12,000 independent and chain restaurants, encompassing all price levels and cuisines.
DINOVA NETWORK RESTAURANTS PROJECTED TO SEE GAINS IN 2015
Turning to the corporate dining spend forecast for 2015, Dinova anticipates growth ranging from five to 8.5 percent from its corporate clients. The Global Business Travel Association projects that U.S. business travel spend will increase 6.2 percent to more than $310 billion, with overall trips increasing by nearly two percent. The National Restaurant Association anticipates overall restaurant sales in the U.S. will grow 3.8 percent in 2015, exceeding $709 billion.
“All these road warriors need to eat, whether it be a quick breakfast on the go or a private dining event for clients,” said Macchio. “With airfares and hotel rates also on the rise, companies are increasingly aggressive about leveraging their dining spend, using more Dinova network restaurants, and maximizing the value of the spending done by travelers and event planners.”
DINOVA EXPRESS ENHANCES RESTAURANT EXPOSURE TO CORPORATE EVENT PLANNERS
Dinova is launching a new program to give its network restaurants access to event and meeting planners at the headquarters and regional offices of its corporate client base. On March 3 in New York City, Dinova will conduct its first “Dinova Express” tour, an excursion that will bring event planners from seven prominent companies – cumulatively representing more than $41 million in annual dining spend - to multiple Dinova network restaurants with private dining facilities.
“It can be difficult to reach planners inside corporations who often make decisions about where executive groups will eat on a given night,” said Kris Moon, senior director, strategy and development at the James Beard House. “Dinova’s ability to facilitate access to these influential employees is a prime reason for our participation in their network.” The James Beard House offers an impressive dining environment featuring a roster of rotating guest chefs who create unique tasting menus for one night only and which are enjoyed both by individuals and groups. The James Beard House will be part of the March 3 event.
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.
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Dinova in the News
NATION’S RESTAURANT NEWS FOCUSES ON HOLIDAY BUSINESS DINING + SUCCESS OF DINOVA NETWORK MEMBER BAR LOUIE
Posted NOV 17, 2015
Leading restaurant trade publication discusses Dinova’s holiday business dining forecast, along with the higher-margin checks Dinova network member Bar Louie has driven by actively marketing to companies. Read more…
DINOVA NETWORK MEMBER MERITOR TALKS TO BUSINESS TRAVEL NEWS ABOUT STEERING TRAVELING STAFF TO DINOVA NETWORK RESTAURANTS
Posted NOV 17, 2015
Meritor, a leading provider of automotive parts and services, sat down with Business Travel News to discuss steps it has taken in conjunction with Dinova to manage their dining spend and educate its travelers and event planners about Dinova network restaurants. Read more…
RESTAURANT MAGAZINE HIGHLIGHTS DINOVA’S 2015 THIRD QUARTER RESULTS ON BUSINESS DINING SPEND
Posted NOV 17, 2015
Several trade publications picked up Dinova’s 2015 third quarter press release, highlighted by significant business dining increases in both revenues and traffic. Read more…
Nation’s Restaurant News Highlights Dinova Report on Corporate Dining Trends
Posted: MAR 3rd, 2015
This article picks up many of the facts sharedin Dinova's 2014 performance press release, along with supporting facts that speak to the growth of corporate dining spend across America. Read more…
Social Vinings Named VBA Business of Year
Posted: JAN 9th, 2015
One of Dinova's restaurant partners, Social Vinings, was named as 2014 Business of the Yearby the Vinings Business Association. Read more...
- Dinova is the only company providing an innovative, proprietary marketplace exclusively focused on connecting expense account diners to quality restaurants nationwide
- By definition, “business dining” means any meal on a business corporate credit card that can be expensed, including meals purchased during business travel, food for company meetings and events, client entertainment, catering for internal department meetings, and corporate private dining
- Dinova currently influences more than $6 billion in annual business dining spend
- Dinova was founded in 2009 by CEO Vic Macchio (Mack-ē-oh)
- Currently, Dinova has 14,000+ restaurant partners across the United States and growing
- Restaurant segments included in the Dinova marketplace range from quick service, fast casual, casual, polished casual, fine dining, to delis and cafés. These restaurants encompass national and regional brands, large restaurant groups, and award winning independents
- Companies that participate in Dinova’s marketplace range from small to medium sized businesses to Fortune 500 enterprises
- Dinova has an easy-to-use mobile app that allows business diners to locate in-network restaurants while in town or on the road
- Dinova employs individuals from all over the United States, and has its corporate headquarters in the Metro-Atlanta area
- In 2016, Dinova won Atlanta Business Chronicle’s “Best Places to Work” Award