Brinker International is betting big on It’s Just Wings, saying that the newly-launched virtual brand generates $3 million in weekly sales and could be worth more than $150 million in its first year.
“Sales continue to build every week, and we clearly see the potential to exceed $150 million in the brand's first year, which would secure It's Just Wings a spot in the top 200 restaurant brands,” Wyman Roberts, Brinker's chief executive officer, said during the company’s fourth quarter earnings call on August 12.
Brinker International is also the parent company of restaurant chains, Chili’s and Maggiano’s.
Launched in June 2020, menu items from It’s Just Wings are prepared in the kitchens of 1,000 company-operated Chili’s and Maggiano’s but can only be ordered through DoorDash. The virtual brand sells boneless and smoked and traditional bone-in wings smothered in a choice of 11 sauces, such as truffle hot sauce and ponzo sauce. Every order also includes free curly fries.
The virtual concept is bringing in new customers. In its first month, sales showed that 70% of orders came from DoorDash customers who had never placed an order from Chili’s.
Delivery-only restaurant models
Virtual brands require minimal investment to start because they use space within the kitchens of operating restaurants and sell food on third-party delivery platforms, like DoorDash, Uber Eats or Grubhub.
Off-premises dining is becoming increasingly popular, accounting for 27% of restaurant industry sales in 2018. With the dining rooms of many of their favorite restaurants closed during COVID-19, consumers turned to delivery options to get a break from cooking. This has only accelerated the move towards virtual kitchens.
“Over the years, casual dining has been deemed for being overbuilt. We believe this is our opportunity to prove that maybe it isn't overbuilt, it's just underutilized. It’s Just Wings leverages existing buildings, equipment and labor. Even after aggressive pricing and marketing, buying quality ingredients and packaging and paying our last-mile logistics partner, we're generating strong flow through,” Roberts explained.
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