ATLANTA, May 26, 2015 /PRNewswire/ -- 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."
With both air and lodging costs on the rise, corporate travel managers are actively educating business travelers and event planners about the benefits of using preferred suppliers. By shifting more expenditures to favored vendors – including Dinova network restaurants - companies gain more value from money spent by their employees on business expenses. Dinova's corporate clients get a monthly rebate on their dining spend at Dinova network restaurants.
"The healthier business climate, along with the growing focus on use of preferred suppliers by corporations, is driving incremental sales gains for Dinova network restaurants," said Macchio. "With smaller corporations leading the way, our first quarter data reveals that our clients are dining at Dinova network restaurants 10 to 15 percent more often than they did a year ago."
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.
SOURCE Dinova LLC