![]() No doubt, the past several years have pushed restaurants to think outside of the box. Since the pandemic, restaurants have invented new income streams as a means of stabilizing income in challenging times. Challenges persist for many restaurants right now, albeit in different forms than they did in 2020, and creative solutions continue to emerge to help operators respond to consumer cravings in ways that help them compete. One case in point: More restaurants are now cross-selling each other’s menu items. As Restaurant Business reported recently in their Restaurant Rewind podcast, restaurant licensing deals are expanding beyond their usual boundaries. In addition to visiting a grocery store and being able to pick up a packaged pizza from a national chain, consumers are seeing more of their favorite ready-to-eat restaurant foods at unexpected restaurants. For example, Cinnabon-branded products are popping up at restaurant brands including The Cheesecake Factory, Wendy’s and Subway. Menu items from Pret A Manger will soon be available at A&W restaurants in Canada. At a time when boundaries have been blurring around where consumers can access the foods they crave – and the rise of “grocerants” continues to make grocery stores into destinations for ready-to-eat foods – this latest development may help restaurant brands extend their reach. What’s more, it might help them strengthen new income streams to support profitability. Looking at your restaurant, are there opportunities for you to place your most in-demand products in complementary restaurants? ![]() It’s that time of year when a cool drink can be even more appealing than a meal or snack. What’s more, a new survey by Revenue Management Solutions found that specialty drinks can be revenue powerhouses for foodservice operators – largely because they break many of the rules consumers tend to follow when it comes to their spending. Specifically, when the 600-plus people participating in the survey were asked about their purchasing habits, 80 percent of respondents said they order specialty drinks multiple times a week, even though they reported a drop in their overall restaurant visits. One in four respondents said they order specialty beverages more than once a week – even though almost half of respondents said they are ordering less in order to save money right now. Specialty drinks are also ideal items for people to enjoy on the go or at home – and according to the survey, people who use delivery are less sensitive to price than guests using other sales channels. There might be an opportunity for you to include specialty drinks as an upsell suggestion on your app, where people might be more open to paying a bit more, or for you to promote them as a special limited-time offer. If you’re looking into expanding your menu offering in this area, consider a diverse mix of options: The survey found that tastes differ across generations, with younger consumers preferring sodas and soft drinks, and older consumers opting for house-made drinks. Flavor and price were the top factors affecting a person’s purchasing decision. Other key themes stood out: The top beverage choice was hot or iced coffee, earning 82 percent of the vote, followed by soft drinks. While 80 percent of respondents ordered their beverages from coffee shops, 76 percent ordered them from restaurants, so respondents perceive restaurants as places to go for an appealing drink, whether it’s coffee or not. Recommendations from friends and family played an important role in respondents’ decision to buy too, so giving people an incentive to spread the word with others if they enjoy their drink can help boost traffic and sales. |
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June 2024
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