Consumers like a limited-time offer: Whether it has to do with short attention spans or a desire for something new and different, there has been a 64 percent spike in LTOs in the past five years, according to Technomic. Their research also found that a majority of female consumers and millennials are drawn to innovative dishes, new flavors and menu launches when they choose a restaurant, and 30 percent of quick-service customers would visit a restaurant they wouldn’t normally visit if it meant taking advantage of a unique LTO. Restaurant Business advises operators to consider several factors when developing an LTO to attract guests. First, set a goal you’re hoping to achieve and design your LTO around it. (An LTO that will bring in guests for several weeks or months will need to have broader, more mainstream appeal than an LTO designed to generate a lot of buzz for a short time.) Second, consider your demographics and let your data guide your decisions. Preferences will vary across generations and genders, so consider everything from your LTO’s ingredients to its portability when anticipating how guests are likely to perceive your offer. Finally, use language that describes the sensory experience of eating what you’re selling (e.g. think “crunchy” vs. “breaded”) and promote the health-conscious aspects of your LTO. Words like “fresh,” “local” and “made from scratch” tend to score especially well with consumers.
New research from the National Restaurant Association found that delivery, drive-thru and takeout food are on track to comprise 63 percent of restaurant sales this year – and many industry insiders see off-premise sales as the industry’s key growth engine. Recent consumer data demonstrates the potential. For example, Foodable reports that more than 80 percent of consumers younger than 35 are using on-demand food ordering apps about twice a week, and Food On Demand reports that delivery sales are 75 percent higher than in-store sales. At the same time, a declining percentage of consumers want to talk to others when visiting a restaurant, according to a recent study from Harvard Business Review. Clearly consumers still crave a restaurant experience but the best way to engage those people may no longer be via an in-person conversation. Harnessing technology to drive off-premise sales is key to tapping into the off-premise opportunity. Do you have a technology blueprint for driving off-premises sales? As of this writing, we were a few weeks away from the 5th annual Takeout, Delivery & Catering Symposium, which will gather industry leaders to forecast what’s ahead for off-premise sales, as well as how operators can use customer analytics to drive sales and engagement, and how technology can make a restaurant operation more efficient. Stay tuned for details from the event in the coming weeks.
The popular guidance on offering restaurant delivery can sound a bit counterintuitive: Find a way to make delivery work, despite the economic challenges it can create, or lose relevance with consumers. A new report in the Washington Post emphasized that point, indicating that the most recent industry earnings calls demonstrated the dramatic impact (positive and negative) of digital ordering and delivery on restaurants. Domino’s, for one, indicated that despite strong sales growth, it felt pressured by the “aggressive marketing of third-party aggregators.” Delivery is also having a big effect on Chipotle, which saw digital sales skyrocket more than 100 percent from the same period last year following a delivery promotion. The demand for digital ordering and delivery is clear. But as third-party delivery companies vie for business with enticing offers, how can you make delivery work for you financially? Consider raising your prices. If recent operator experiences are any indication, the extra cost won’t deter customers who value convenience. A report in Restaurant Business said when Habit Burger launched delivery last year, it increased the cost of delivery orders by 25 percent. Initially, third-party delivery companies were against this move, fearing pushback from consumers. But that has not occurred and delivery companies have softened to the idea. As you flex your business to accommodate more delivery orders, you may be surprised at consumer flexibility on price.
Not every restaurant wants to be family-friendly. But if families are in your target demographic, there are steps you can take to serve them well as summer approaches and they spend more time eating out. First, offer some healthy (or at least real) options: think chicken nuggets that are breaded and baked instead of deep-fried, fresh fruit and vegetables, and desserts that aren’t packed with sugar and artificial ingredients. Scale down portion sizes and be flexible with sauces, sides and substitutions to accommodate allergies and fickle appetites. Package or present kids’ options as meal deals with creative, kid-friendly themes — and weave in your branding to get a social media boost. Adjust the rhythm of the meal so you serve adult drinks and kids’ appetizers first, follow with adult appetizers and kids’ meals, and then serve adult entrées and kids’ desserts. Offer crayons and create an activity placemat or cover tables in butcher paper so parents don’t have to struggle to keep kids entertained while they wait. And speaking of making things easier for parents, try offering a kids-eat-free deal on days when you’re also promoting parent-friendly specials. If you have the space available, seat families at booths or larger tables that can accommodate extra gear and give children space to spread out. Having changing stations (or at least a flat space that can be used as one) in all restrooms can help make your restaurant an easier choice for families too.
Is your restaurant known for its local flavor? Do you (or could you) offer a creative dining experience or other event that could become a memorable part of a person’s vacation or business trip? Consider who may be passing through town in search of a good meal. Skift Research found that 43 percent of tourists plan their travel with food as the main purpose. Tourists and business travelers are often looking for an authentic, local dining experience — and then posting about it to their friends online. Local Airbnb hosts, hotel companies, delivery providers and other complementary businesses can be helpful partners who can connect you with potential customers. Consider DoorDash’s new partnership with Wyndham Hotels & Resorts, which allows guests at its 3,700 U.S. hotel properties to bypass room service and get restaurant delivery for free from DoorDash member restaurants. (InterContinental Hotel Group already has a similar relationship with OpenTable and GrubHub, while Resy also works in partnership with Airbnb, allowing guests to make in-app reservations at a curated selection of restaurants in a number of cities.) But even without formal partnerships you can get the word out to people visiting your area. At the very least, get to know the travel bloggers who cover your region so you’re on their radar when they suggest local dining options.
Do you know your business case for managing food waste? According to a recent report from the World Research Institute and the Waste and Resources Action Programme, restaurants can earn $7 for every dollar they spend on food waste management. AgFunder reports that the research behind the study assessed the food waste management practices of more than 100 restaurants in 12 countries, including restaurants ranging from international quick-service brands to upscale, sit-down restaurants. The participating restaurants tried a “target, measure, act” approach to food waste, which involved measuring the food being wasted to identify the biggest pain points, then engaging staff, reassessing inventory and purchasing practices, reducing overproduction and repurposing excess food. Participating restaurants reduced food waste by 26 percent on average, and more than 75 percent of the restaurants had earned back the investment they made to cut food waste in the first year alone.
Is your delivery menu a mirror image of your dine-in menu? Chances are it shouldn’t be. That’s the verdict of a recent Restaurant Business report about how to maximize the benefits of offering off-premise food options. You need to consider how well your food and beverages travel, how many pages of options people are likely to tolerate scrolling through on their phones, and how efficiently your kitchen can manage the preparation of various items during peak periods. To make your restaurant more guest-friendly when it comes to delivery, as well as more profitable for you at a time when delivery often squeezes restaurant margins, consider how you can scale down your menu. The Restaurant Business report cited an example of one restaurant that placed its entire menu online, requiring viewers to click through six screens, and another that winnowed its menu down to six items on one page. (The latter restaurant generated an average of 10 times more sales than the first.) It also pays to know your highest-margin items and find ways to feature them more prominently on your menu and boost their appeal. Customers might view beverages, for example, as items that are easy to skip in favor of alternatives available at home or elsewhere. But if you create specialty or seasonal beverages served in containers that travel well and come in sizes that can serve a family or group, you can make them a more compelling sell. Finally, ease the pressure on your kitchen at peak times. Operators are experimenting with a range of options to do that, from reserving front- and back-of-house space for delivery orders, focusing the delivery menu on foods that require less effort and time to prepare, and taking delivery out of the restaurant altogether and using ghost or commissary kitchens to prepare and farm out orders.
Your sustainability efforts could soon be visible front and center for people considering your restaurant for their next meal. Yelp just unveiled its Green Practices Initiative in an effort to help consumers understand how restaurants approach sustainability. Yelp reviewers will now be asked if in their experience a restaurant uses plastic bags, utensils or straws, compostable takeout containers, and whether or not the restaurant offers a discount to guests who bring their own beverage containers. The results won’t be visible immediately but will gradually build a trove of data that will eventually be included in Yelp’s restaurant reviews.
For every 10 restaurant employees, seven will leave by the end of the year. That’s according to data from the U.S. Bureau of Labor Statistics. Those comings and goings cost restaurants many thousands of hours and dollars that are required to attract, hire and train staff. Some of that turnover may be hard to overcome, considering the historical demographics of restaurant employees, as well as the seasonal shifts of many restaurants. But there are signs the industry is getting creative about finding and keeping talent — and actions you can take to minimize the turnover you’re experiencing. Starting an apprenticeship program — ACFEF Culinary Apprenticeship Program s are among those available — can help to keep staff in place for a period of years, all while offering the classroom instruction and on-the-job training that can help engage new team members and help them see the longer-term benefits of staying with you. If an apprenticeship program isn’t a good fit for you, at least understand the reasons why your people leave. Like with most other areas of your operation, data can help you here. ChefHero advises you start by conducting thorough exit interviews. If your employees mention poor management as a factor motivating their departure, there are likely steps you need to take to retrain existing staff. If their departure is about a nearby competitor offering better pay, you can reassess your current compensation or identify other benefits you can offer (flexible schedules, time off, development opportunities, employee rewards) that can help you retain people if you’re not able to match the pay of competitors.
In an industry known for its employee turnover, food safety can be a challenge for restaurants to uphold. How do you ensure your restaurant adheres to food safety practices or other procedures critical to your operation, no matter how experienced your team members may be? Modern Restaurant Management suggests you use app-delivered games to not only protect your food safety culture but to drive employee engagement and retention through the accrual of points and rewards for individual employees or stores. By using such a system to improve your program, you’re tapping into an element of human psychology that can inspire people to improve whether they’re performing poorly or well. A recent New York Times article indicated that Uber considered McDonald’s as a key competitor, so consider this example from the ride-hailing company Lyft, whose decentralized structure and reliance on the gig economy requires it to understand how to motivate employees to not only stay with the company but to continuously improve upon their performance: A Guardian report from a Lyft driver described receiving weekly driving challenges that could result in power-driver bonuses. Having her results tracked and then receiving regular reports about those results gave her a strong desire to “beat the game” — when she had a slow week and received low scores, she was motivated to improve against other drivers. When she was a top performer, she wanted to retain her high score. If you’re looking for ways to keep employees engaged, consider what tools companies like this are using to make the work interesting and motivating for employees (all while ensuring the company achieves the underlying results it seeks).
|
Subscribe to our newsletterArchives
June 2024
Categories
All
|