Report

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Fantasy Sports, Sports Betting on the Rise

Interest in Sports Betting and Fantasy Sports Grows

by David Klemt

Wall full of American footballs behind large NFL logo

A recent CGA by NIQ On Premise Impact Report for August, 2023 reveals an interesting insight into consumer behavior and expectations.

To be clear, all the data on this new one-pager is useful. However, a particular revelation stands out from the rest, for me.

The CGA by NIQ US On Premise Impact Report for August 24, 2023 addresses:

  • total on-premise sales;
  • dining versus drinking occasions;
  • cost of living impact in the past month; and
  • consumer interest in fantasy sports and sports betting.

It’s that final bullet point that I find compelling. However, let’s check out the numbers for the first three points before we jump into sports.

To download your own copy, please click here.

August by the Numbers

In comparison to August 20, 2022, check value is up one percent to $50.09. Ticket count, however, is down one percent to 1,569.

As one would expect, dining occasions outweigh drinking occasions. Seventy percent of consumers have dined out in a restaurant or bar in the past two weeks.

Compared to July 2o23, that’s a two-percent increase in dining traffic.

Over the course of the same amount of time, 40 percent of consumers have gone drinking in a bar or restaurant. That’s a decrease of one percent in comparison to July 2023.

Considering that many families travel in the month of August before kids head back to school (or to drop them off at university), these numbers make sense.

Of course, cost of living may also be impacting dining and drinking occasion. Most consumers report no changes to the frequency with which they go out for drinks. Some consumers even report going out more frequently for drinks. But some are also cutting back.

For example, 28 percent of consumers have decreased how often they go out for drinks. Eleven percent are consuming lower quality drinks when they do go out, and nine percent are decreasing the “quality” of the establishments they visit.

That said, 20 percent of consumers are increasing drink quality and 21 percent are increasing establishment quality per visit. Seventeen percent are increasing how often they go out for drinks.

Fantasy Sports & Betting

This, as you may have guessed, is the statistic that I find most compelling.

Fantasy sports and sports betting has been on the rise for some time in the US. Who among us isn’t the target of sports-betting-app ads when streaming or watching sports?

Sports bar operators and operators who can position themselves as sports fans’ “third spot” will find this next number interesting.

According to CGA by NIQ’s latest report, 63 percent of consumers revealed they had plans for NFL week one. Those plans included participating in daily fantasy sports or sports betting.

So, it would be wise for operators who will air NFL games this season to ensure they’re catering to fantasy football and sports betting fans. Becoming the hub for fantasy sports groups in your area can increase traffic, sales, and loyalty. And, of course, it opens up the door to many traffic- and revenue-generating sport- and team-themed LTOs.

Again, to download this new report for yourself, please click here.

Image: Adrian Curiel on Unsplash

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Top-performing Menu Items in the US

Top-performing Menu Items in the US (So Far)

by David Klemt

Barbecue chicken wings, chili peppers, and chili flakes

Thanks to a recent mid-year report from F&B intelligence platform Datassential, we now know the top-performing menu items in the US.

For the low, low price of filling out a handful of fields, you can download a copy of Datassential’s “Foodbytes: 2023 Midyear Trend Report” for yourself.

There’s plenty of useful data packed into this short report. You may find some of the top food items a bit surprising.

But First…

Datassential does more than just list the top mid-year menu performers in their latest report. There are also a couple of interesting datapoints for operators to consider.

The first piece of information is an alarming statistic: 54 percent of consumers are of the belief that “tipping culture has gotten out of control.”

As we’ve reported earlier, it’s likely that a major driver of “tip fatigue” comes from retail. The expectation for consumers to tip at a restaurant, bar or nightclub is ingrained deeply in American culture.

However, consumers throughout America are being prompted to tip after just about every transaction they’re attempting to complete. In fact, it’s not just retail that has been encouraging (in some cases, guilting) people to tip. Some contractors are also adding tip lines when handing over tablets to clients so they can pay their invoices.

One result is that servers and bartenders are reporting lower tips; guests are so over tipping that they’re pushing back against the practice in venues where they’d traditionally have no problem doing so.

Of course, tip fatigue isn’t the only reason consumers are pushing back against tipping. Many people feel that operators should increase what they pay staff. Indeed, some people feel that operators are asking them to subsidize their employee pay. Whether they’d be happy to pay higher prices remains to be seen.

Fads Aren’t Bad?

Whenever we cover trends or discuss them with clients, we caution against chasing too many (or the “wrong” trends). And fads? It can be even riskier to hop on the bandwagon of something that may never even reach the trend stage of its lifecycle.

However, likely due to the ubiquity of TikTok, consumers expect restaurants to embrace fads. According to Datassential, 67 percent of consumers overall “want to see more fads at restaurants and retail.”

That number jumps to 74 percent when focusing on Millennials and Gen Z.

So, while we still caution operators about jumping on fads (or “micro trends”) and trends, that doesn’t mean be too cautious. If a fad or trend works with your brand and won’t cost much to feature, at least give it consideration.

Not sure you’re great at identifying fads that will work for your business? Ask your staff which fads and trends are hot at the moment.

Speaking of Hot…

Alright, let’s take a look at the F&B items Datassential identifies as popular at the midway point of 2023.

Again, I encourage you to download the report in its entirety. You can do just that by clicking here.

But for those who want instant gratification, check out these menu items:

  • Super Duper: Let’s kick things off with the hottest chain LTO, the Denny’s Super Slam. Per Datassential, restaurant chains have already featured in excess of 2,000 LTOs in 2023. The F&B intel agency tests them all, and the Super Slam is wearing the LTO crown at the moment.
  • Chef Chatbot: Datassential tapped ChatGPT to create a burger recipe and had Midjourney create an image for the resulting Caprese Avocado Burger. More than half of consumers surveyed—57 percent—want to try it at a restaurant.
  • Big Winner: Datassential asked consumers a simple question: Which would you rather eat for the rest of your life, a hamburger or a hot dog? A staggering 87 percent chose hamburgers, meaning just 13 percent of consumers would choose a hot dog over it’s burger buddy.
  • What a Pickle: Back in March we checked out Slice’s Slice of the Union report, and it predicted pickle pizzas would be a hot trend this year. Well, Datassential has crunched the numbers and says 40 percent of consumers are aware of this pizza style already. Looks like Slice may be proven right by the end of the year.
  • Speed Demon: Curious about the fastest-growing menu item on the US? Well, wonder no more: Datassential says it’s the barbecue chicken wing. Over the past year, they’ve grown 373 percent on menus across the States. Datassential posits the overall growth of chicken and the embracing of flavor trends like Carolina gold barbecue sauce are contributing factors.

There’s a lot to unpack here, so I’ll leave you to it. Just remember that when it comes to fads and trends, there’s a fine line between what’s hot, what’s not, and jumping on the wrong one. Good luck!

Image: Ahmed Bhutta on Pexels

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Should You Offer Your Guests Brunch?

Should You Offer Your Guests Brunch?

by David Klemt

Person with tattoos pouring coffee from French press

Is brunch on its way to becoming a lucrative daypart that can grow traffic, increase revenue, boost guest engagement, and promote loyalty?

If a report from Square is anything to go off, yes.

Owing in part to changes in consumer behavior from 2019 to now, brunch appears to be a solid traffic and revenue generator. The number of people working from home is impacting daypart spending, which makes sense. Traditional office workers will often pop into a QSR or cafe for coffee and breakfast on their way in to work. And when lunch rolls around, they tend to head out to restaurants nearby for their break.

Now, the data support the belief that more people are staying home on weekdays and unleashing pent-up demand for socializing and dining out on the weekends. And apparently that demand is rather voracious, because brunch appears to be on the rise.

In 2019, just over eight percent of all dining dollars were spent on Saturdays during traditional brunch hours. That has grown to just over ten percent this year.

In terms of engagement and bringing more brand awareness, the term itself is growing on social media platforms.

Along with revisiting hours of operation, it may be wise for operators to consider offering Saturday or Sunday brunch.

Bristory

Yes, that’s a brunch-style portmanteau of “brunch” and “history.” No, I’m not proud of myself but I’m leaving it in.

The portmanteau “brunch” is believed to have first been coined by a British writer named Guy Beringer in 1895. He included the word in an article he wrote for Hunter’s Weekly. Beringer was making the case for noontime meal that combined breakfast and lunch.

In arguing for what may be the world’s first hybrid meal, Beringer wrote that, “the arguments in favor of Brunch are incontestable. In the first place it renders early rising not only unnecessary but ridiculous. You get up when the world is warm, or at least, when it is not so cold. You are, therefore, able to prolong your Saturday nights…”

The word would appear a year later in a Pennsylvanian publication called the New Oxford. More than 30 years later, brunch was on its way to becoming “a thing” in the US.

Oh, and there are arguments that an American reporter, Frank Ward O’Malley, who should credit for the word “brunch.” Those who believe this is the case say O’Malley created the portmanteau some time between 1906 and 1919. As is the case with many classic cocktails, the origin of brunch is at least somewhat hazy.

By the 1970s, the stigma that once came with brunch—that drinking publicly during the day could harm one’s reputation—began to dissipate.

Brunch by the Numbers

According to Square, brunch is appealing for several reasons.

Let’s take a look at this infamous daypart by the numbers.

  • 9.8 percent: Growth in the number of restaurants in the US offering breakfast and brunch in 2022 alone.
  • 10 percent: Amount of overall spending in restaurants on Saturdays between the hours of 8:00 AM and 1:00 PM in 2023.
  • 35 million: Number of #brunch Instagram posts, and the number is growing.
  • 4.5 billion: Number of TikTok views of posts with #brunch.
  • 71 percent: Number of Americans who wish restaurants in the US would serve breakfast items all day.

To me, the most striking statistic is that brunch spending now accounts for ten percent of all restaurant spending.

That spend is logical when we think about who tends to enjoy brunch: people with time and money to spend on a leisurely, all-day meal.

As professor Farha Ternikar, author of Brunch: A History, has said, “Brunch continues to grow anywhere there is disposable income or time.”

So, operators who are considering offering brunch for the time or investing more into brunch have some questions to answer: Who is my target audience? What’s the population density of my market? Who has disposable income and time? Should I offer brunch on Saturday, Sunday, or both days? Does brunch work for my concept? Which venues near me are already offering brunch?

Answer those questions and speak with your staff before jumping feet first into this potentially lucrative daypart.

Image: Helena Lopes on Pexels

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iPourIt Releases Their 2023 Pour Report

iPourIt Releases Their 2023 Pour Report

by David Klemt

Beer pouring into glass from tap

Interactive self-serve beer experience platform iPourIt‘s latest report, the 2023 Pour Report, is now available for download and review.

iPourIt is a pioneer in the self-serve beverage space. While it may seem counter-intuitive to some, many guests have shown time and again that they enjoy using self-serve walls. For these guests, a not in any way insignificant number, iPourIt installations enhance the guest experience, increase loyalty, and boost revenue.

And while many people associate iPourIt and self-serve programs with beer, these systems can also pour wine, cocktails on tap, spirits, non-alcohol beverages, and soft drinks.

 

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Another benefit from iPourIt? Transparency and sharing of data. The company doesn’t limit providing valuable guest behavior insight to their clients. Rather, they make the data they collect available to anyone. Simply head to their website, fill out a few fields, and gain important beverage insights.

Anyone curious can choose between a standard report and a “pro” version. Both are free to download and peruse. People can also read our article that dives into their fourth-annual report via this link.

Below you’ll find key takeaways from their 2023 report. I strongly urge operators to download and review either report.

The Who

We agree that demographics are a metric that people and businesses often misuse. Valuegraphics can be far more effective for businesses looking to build loyalty and boost revenue.

Still, demographics can provide beneficial insights.

First, let’s look at how men and women used iPourIt systems in 2022. Men poured 20,477,288 ounces last year, whereas women poured 10,848,435 ounces. The average per pour for men was 6.4 ounces in comparison to 5.3 ounces per pour from women. On average, men spent $14.72 per visit to an iPourIt-equipped location; women spent $12.24.

Next, the generational breakdown. IPA was the number-one style poured for Baby Boomers, Generation X, and Millennials. For legal-drinking-age Generation Z drinkers, IPA came in second; their top pour style was cider. Likewise, Lager claimed second place for Boomers, Gen X, and Millennials. Second was IPA for Gen Z, and Lager was third. Wheat beer was third place for Boomers, fourth for Gen X and Millennials, and fifth for Gen Z. Sour came in fifth for Gen X and Millennials fourth for Gen Z; for Boomers, the style didn’t rank among the top five. Stout clinched the fifth spot for Boomers.

Finally, in terms of traffic, men of every age group poured more ounces than their female counterparts.

The What

Below, the top 10 styles of beer poured by men:

  1. Fruit beer
  2. Pale Ale
  3. Blonde
  4. Pilsner
  5. Stout
  6. Sour
  7. Wheat beer
  8. Cider
  9. Lager
  10. IPA

In descending order, the top five (download the report for the top ten) products poured by men were Michelob Ultra, Bud Light, Golden Road Brewing Mango Cart, Coors Light, and Modelo Especial.

And now the top styles of beer or category of beverage poured by women:

  1. Stout
  2. Fruit beer
  3. Blonde
  4. White wine
  5. Hard seltzer
  6. Wheat beer
  7. Sour
  8. Lager
  9. IPA
  10. Cider

Also in descending order, the top products poured by women were Michelob Ultra, Mango Cart by Golden Road Brewing, Bud Light, Ace Pineapple Cider, and Coors Light.

The Where

The 2023 Pour Report by iPourIt breaks the US down into five regions: West, Southwest, Midwest, Southeast, and Northeast.

Because our American head office is in Las Vegas and our hotel consultant is in Pennsylvania, we’ll look at the West and Northeast.

The top-five pours for the West in 2022 were:

  1. Bud Light
  2. Firestone Walker Brewing Co. 805
  3. Golden Road Brewing Mango Cart
  4. Coors Light
  5. Modelo Especial

While the top-five pours in the Northeast were:

  1. Blue Moon Brewing Co. Belgian White
  2. Allagash Brewing Co. White
  3. Lord Hobo Brewing Co. Boom Sauce
  4. Sloop Brewing Co. Juice Bomb
  5. Stella Artois

For the curious, Bud Light and Coors Light are categorized as American-style Light Lagers, 805 is a Blonde Ale, Mango Cart is a Wheat Ale, and Modelo Especial is a Mexican-style Pilsner. Blue Moon and Allagash White are both Belgian-style wheat beers (or Witbiers), Boom Sauce is a Double IPA, Juice Bomb is a Northeastern IPA, and Stella Artois is a Lager.

For further insights, please download this year’s iPourIt report here.

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Slice Releases 2023 “Slice of the Union”

Indie Pizzeria App Slice Releases 2023 Report

by David Klemt

Wood-fired pizza on paddle

The annual Slice of the Union report from independent pizzeria ordering app Slice offers excellent insight into the indie pizza space.

Per the company’s website, Slice serves all 50 states and works with 19,000 pizzerias. For context, that’s a network of pizzerias more than double in size in comparison to Domino’s.

In my opinion, then, the company is well-positioned to deliver data regarding the indie pizzeria space.

Additionally, Slice says they save independent operators money. To date, Slice claims partners have saved more than $265 million in fees that would have gone to third-party delivery services.

In part, that’s due to a 2021 innovation by the company. At the International Pizza Expo in Las Vegas in August of 2021, Slice unveiled fixed-price, tiered packages for partners.

 

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Essentially, Slice intends to help local, indie pizzerias boost their reach, discoverability, and revenue. The company’s mission is “empowering independent pizzerias.” In part, Slice accomplishes their mission to “Keep Local Thriving” by offering indie pizzeria operators access to technology and services that rival the big pizza chains.

Below you’ll find some of the insights from the 2023 Slice of the Union that most stand out to me. To review the report in its entirety yourself, please click here. Not only is it an informative read, it’s actually fun.

Ordering Occasion

Kicking things off, ordering occasions. As all operators should know, many guests seek out particular cuisine, drinks, or venues dependent upon their dining or drinking occasion.

In the 2023 Slice of the Union, Slice takes a look at a couple occasions that motivate people to order pizza: sports and awards shows.

Now, it’s no surprise that people order pizza to enjoy while watching sports. So, since that’s common knowledge, Slice goes deeper and identifies the top sports leagues:

  1. Football
  2. Basketball
  3. Baseball
  4. Hockey

No mention of my two favorites, F1 and MotoGP, but at least hockey makes the cut. (My Vegas side says, “Go Knights!” but my born-in-Chicago side says, “Go ‘Hawks!”)

When we look at awards shows, the top spot may be somewhat of a surprise:

  1. People’s Choice Awards
  2. Tony Awards
  3. Emmy Awards
  4. Golden Globes
  5. The Oscars

Interestingly, the Grammys only manage an honorable mention. And there’s something poetic about pizza being the “people’s choice” for the People’s Choice.

Another bit of compelling data. Slice says that most people buckle and give up on their New Year’s resolution to keep away from pizza on January 13.

What’s in a Name?

There are certainly some creative pizzeria names out there.

However, Slice identifies not just some of the most common names but how many pizzerias use them:

  1. Joe: 206 pizzerias
  2. Sal: 206 pizzerias
  3. Tony: 114 pizzerias
  4. Johnny: 56 pizzerias
  5. Ray: 43 pizzerias
  6. Nino: 21 pizzerias

Flavors on the Rise

Wondering what the top topping is? What Slice sees as the pizza trends to watch?

Well, Slice has the answers to those questions (and more) in their annual report.

Pepperoni, as Slice says, “is a classic.” So, it wouldn’t provide much insight to just say, “Hey, pepperoni is popular.” Operators who offer pepperoni—and why wouldn’t they?—are already aware of its ubiquity.

Instead, Slice identifies the topping that’s showing the most growth. Per Slice, mushrooms has shown up on 8.9 percent more pizzas. Also, ranch dressing showed up on 9.7 percent more pizza orders in 2022.

Now, which trends may gain more significant footholds in the pizza space this year? Slice identifies two in their report:

  • Roman-style pizza
  • Pickle pizza

A Roman-style pizza is thin crust and pushes the toppings out all the way to the edges. A pickle pizza features—shocker—pickles heavily. According to Slice, this style of pizza normally includes a garlic sauce and mozzarella cheese.

Again, you’ll want to check this report out for yourself as there’s much more useful information. Click here to read it now.

Image: Dylan Sauerwein on Unsplash

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Do Super Bowl Ads Work on Consumers?

Do Super Bowl Ads Work on Consumers?

by David Klemt

Pepsi Zero Sugar bottle

One of the biggest Super Bowl ad winners is Pepsi Zero Sugar.

Brands spent hundreds of millions of dollars to advertise during Super Bowl LVII, but do their ads actually translate to demand for their products?

A week ago we shared our ten favorite beverage-focused Big Game ads. Along with those ads we shared some numbers.

One of those numbers was $7 million, the cost of a 30-second Super Bowl ad on Fox. Other numbers? $500 million and $700 million, the range of revenue it’s estimated that Fox generated this year from Super Bowl ads.

At this point, these ads and the Halftime Show have essentially become their own entities. Some people watch the Big Game for the ads, some for the show halfway through. It stands to reason that brands are well aware of this development. So, they try to create the most impactful ad possible in the hopes of generating consumer demand.

In other words, these brands aren’t spending all this money just so they’re commercial can be deemed cool. Sure, brands want that buzz. But they also want an ROI on the millions they spend.

The big question is, then, are they seeing a return? Well, it just so happens that behavioral insight platform Veylinx has a data-driven answer to that question.

In short, the answer is yes. Of course, it’s a nuanced yes. For example, it appears Gen Z doesn’t care much about Super Bowl ads, as you’ll see below. Also, non-advertisers in the same categories as Super Bowl advertisers appear to see a benefit from the ads.

You’ll learn more from the Veylinx press release below. It’s an interesting read with valuable data for restaurant, bar, and hotel operators.

NEW YORK, Feb. 22, 2023 — A new study from behavioral research company Veylinx determined whether or not Super Bowl commercials boost consumer demand for the products advertised. The results show that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.

The overall increase in consumer demand was driven by women, who accounted for a 21% increase in demand growth. The commercials had minimal impact on men, yielding just 1% demand growth for the brands tested. Gen Z viewers were largely unimpressed by the Super Bowl ads, with demand among 18 to 25 year olds actually shrinking by 1%.

2023 Veylinx impact of Super Bowl ads on consumers chart

“It’s not really a surprise to see that Super Bowl ads improve sales, but the short term bump alone may not be enough to justify the $7 million price tag,” said Veylinx founder and CEO Anouar El Haji. 

Using Veylinx’s proprietary methodology—which measures actual demand rather than intent—the study tested purchase behavior during the week before the Super Bowl and again the week after. The research focused on measuring the change in consumer demand for eight brands with Super Bowl ads: Michelob Ultra, Heineken 0.0%, Hellmann’s Mayo, Downy Unstopables, Crown Royal Whisky, Frito-Lay PopCorners, Pringles and Pepsi Zero Sugar. 

Super Bowl Advertising Winners Overall

Michelob Ultra – 19% increase in demand

Pepsi Zero Sugar – 18% increase in demand

Frito-Lay PopCorners – 12% increase in demand

Heineken 0.0% – 11% increase in demand

Super Bowl Advertising Winners Among Women

Pepsi Zero Sugar – 45% increase in demand

Michelob Ultra – 40% increase in demand

Heineken 0.0% – 40% increase in demand

Crown Royal Whisky – 26% increase in demand

Veylinx, top performing brands during 2023 Super Bowl

Halo Effect for Non-Advertisers

The biggest winners were arguably brands in the same product categories as Super Bowl advertisers. Non-advertisers in those categories appeared to benefit nearly as much as the advertisers: demand grew by 4.2% percent for the study’s control group of non-advertising competitors. Corona Extra, Kraft Mayo and Lay’s STAX were the greatest beneficiaries in a control group that also included Budweiser Zero, Arm & Hammer Clean Scentsations, Canadian Club Whisky, Popchips, and Coke Zero Sugar. Notably, every non-advertiser saw at least a slight increase in post-Super Bowl demand.

“The goal of our study was to look specifically at how consumer demand is affected by running a commercial during the Super Bowl,” El Haji said. “It’s possible that the non-advertisers deployed other marketing efforts to offset or take advantage of the Super Bowl advertising—or they simply benefited from increased exposure for their categories.” 

Additional Findings

Study participants also answered a series of follow-up questions about their preferences, perceptions and how they watched the Super Bowl. More than three-quarters watched at home through various platforms, the most popular being the live cable/satellite broadcast (38%), followed by YouTube TV (15%) and Hulu (10%). When asked why they watched, it’s no surprise that participants were all about the game (64%)—but the commercials were the next most popular reason for watching (39%), followed by halftime (35%), the social aspect (26%) and fear of missing out (13%). 

About the Research

Veylinx studied the behavior of 1,610 U.S. consumers pre- and post- Super Bowl LVII. Unlike typical surveys where consumers are simply asked about their purchase intent, Veylinx measures whether consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions.

For more information about the study and the Veylinx methodology, visit info.veylinx.com/super-bowl

About Veylinx

Veylinx is the most realistic behavioral insights platform for confidently answering critical business questions during all stages of product innovation. To reliably predict demand, Veylinx captures insights through a Nobel Prize-winning approach in which consumers have real skin in the game. This is a major advance from traditional market research practices that rely on what consumers say they would hypothetically buy. Veylinx’s unique research methodology is trusted by the world’s largest and most innovative consumer goods companies.

Main article image: PepsiCo / Article body images: Veylinx

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4 Takeaways from Resy’s State of Dining

4 Takeaways from Resy’s State of Dining Report

by David Klemt

Guests enjoying an array of dishes at a restaurant

The State of Dining and What’s To Come in 2023 from Resy is an informative report that highlights several key developments to watch this year.

In fact, Resy’s report shines a light on ten trends and predictions for operators to consider. However, I’m going to address the four that stand out the most (to me).

For those who may be unfamiliar with Resy, the company is an online reservation platform. While Resy mostly serves major American cities, it does have a presence in Toronto, Canada, and London, UK.

Most importantly, the platform has a unique view of the industry. Resy looks at the industry through the lens of reservations, meaning they collect data concerning consumer behavior in real time.

So, let’s start with some compelling revelations based on reservation data. To view this report in its entirety, visit Resy via this link.

1. 5:00 PM

According to Resy, one reservation time is standing out from the rest. In comparison to 2019 and 2021, 5:00 PM reservations grew by two percent in 2022.

Now, two percent may seem like insignificant growth. However, given Resy’s reach and the platform’s number of active users, the opposite is true.

A two percent increase equates to hundreds of thousands of reservations.

Now, think about your restaurant or bar and consider your reservation distribution. Do you know which hour sees the most reservations? Not an assumption—do you have the data and therefore know the time?

If not, that’s information you need. Not only is this important for scheduling and controlling costs, it’s the benchmark you need to know if you have any chance of tracking change.

2. The Return of In-person Dining

This is one prediction that multiple industry (and even non-industry) publications are making for 2023. It’s the same for hospitality industry platforms: Companies see 2023 as the year restaurants and bars really come roaring back.

But when Resy makes this prediction, they’re using their reservation data to back it up.

First, last summer represents the single busiest season in the platform’s nine-year history. Second, a specific event, a dinner with chef-operator Massimo Bottura, sold out via Resy in a minute.

Third, October 2022. Why is this month worth pointing out in particular? By October, more Resy users had visited restaurants in 2022 than they had during the entirety of 2021.

Clearly, Resy expects this trend to continue and strengthen in 2023. Given their access to reservation data, this seems like a well-informed prediction.

3. Miami

In December of last year we checked out the best states in America for starting a business. Pennsylvania stood out to us for obvious reasons: our Northeastern office is in Philadelphia, with Kim Richardson at the helm.

Overall, Pennsylvania holds the number four spot on the Forbes list. For comparison, Florida slots in at number 45.

However, Miami appears to be an outlier for restaurant and bar entrepreneurs when it comes to Florida.

Per Resy, the restaurant footprint in Miami grew fourfold from 2017 to 2022. Moreover, Resy is seeing continuous growth in Miami. Going even further, this growth is coming from local and outside operators.

In fact, Resy describes South Florida as “white hot for high-profile sequels.” An operator has a top-tier concept? They’re likely to expand into Miami.

4. TikTok

Last week I addressed Datassential weighing in on photos versus videos. According to the F&B research firm, video is now dominating social media engagement.

And also last week, I explained the importance of discovery functionality. Operators who are considering adding a platform to their tech stack should consider whether it will help people discover their restaurant, bar, or hotel.

Resy is a platform that doesn’t just offer discoverability, it’s a core feature. So, when they say that TikTok appears to be a powerful discovery tool for restaurants and bars, that’s likely true.

Now, a poll Resy cites in their report reveals that traditional word of mouth is the top method of discovery. However, the same poll cites that TikTok is the top discovery platform for 43 percent of Gen Zers. Or, in other words, video, or digital word of mouth.

Should operators jump on TikTok? That’s something only individuals can determine is good for their business.

But if they’re courting Gen Z, well…they may need to add TikTok to their social media toolbox.

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Image: Meredith Jenks for Resy

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Picture vs. Video: Datassential Weighs In

Picture vs. Video: Datassential Weighs In

by David Klemt

Vintage Rolleiflex camera

If you want to meet guests—both regular and new—where they are, it helps to know how they prefer to consume social media content.

However, I’m not talking about which platforms are the most popular. We’ll get to that, but I’m talking about the content itself.

It appears that two camps are emerging: Team Picture and Team Video. And yes, they appear to follow demographic delineations.

Veteran operators and front-of-house teams know the drill. It’s standard for a server to drop food off and phones to hover over dishes immediately.

Bartenders, of course, also know the routine. In fact, bartenders working behind the stick across the globe know chronically online guests will come seeking specific drinks because they’re “Instagrammable.”

Hey, I’m not above it—I’ve snapped pics at bars and restaurants known for their innovative drink presentations. The same can be said about certain dishes at particular restaurants.

But is that camera just rapid-fire snapping photos? Or is it becoming more common for the guest holding the phone to record video?

Luckily, F&B market research agency Datassential has data-driven answers to those questions.

Still Photography vs. Moving Pictures

Okay, I’ll admit that this subheading title is a bit lame. Whatever—I’m keeping it in.

At any rate, you know what I’m talking about here, pictures versus videos. Interestingly, Datassential suggests that our industry is already at least a bit behind in this debate.

As they say in their latest Foodbytes report, 2023 Food Trends, “It seems like the food industry only just figured out how to cater to the importance of photography and Instagram and now it’s all being replaced by video.”

Specifically, Datassential speaks about short-form video in this report. Essentially, the agency is saying that guests (younger generations, in particular) are “over” still or static images of F&B items.

Today, just like video killed the radio star, video is on a still photography killing spree. And as I mention above, Datassential’s data reveals what people expect regarding this topic when it comes to age groups.

Unsurprisingly to some, Gen Z is most likely to consume video content. It follows, then, that 67 percent of this group has taken video of food at a restaurant or at home.

Next up, at 54 percent, is Millennials. Forty percent of Gen X says they’ve taken video of food at a restaurant at home. Just 18 percent of Baby Boomers have done so.

Where are People Consuming Video Content?

So, that’s the “who.” Now for the “where.”

According to Datassential, these are the top platforms for video consumption:

  1. BeReal: 11 percent
  2. TikTok Live: 25 percent
  3. Twitter video: 27 percent
  4. Snapchat video: 35 percent
  5. Instagram Reels: 38 percent
  6. TikTok: 41 percent
  7. Facebook Live: 41 percent
  8. Instagram videos: 44 percent
  9. Instagram Stories: 45 percent
  10. Facebook Stories: 48 percent
  11. YouTube: 77 percent

Does this mean you need to create content for each platform? Well, unless you somehow have the time or a digital marketing team, probably not.

Instead, you’ll want to pick the platforms that make the most sense for your brand and audience. There are also cross-posting tools that can save you time and simplify the process.

Takeaway

It’s up to individual operators to choose their social channels. The same is true for what they plan to post, photos or videos.

There’s a different consideration I want operators to keep top of mind. If video continues to dominate social, think about what could happen to dining rooms. It won’t be unusual for “influencers” to break out handheld lighting equipment to create videos. And I think we all know what that will do to the atmosphere in restaurants, bars, and lounges.

As strange as it may seem, operators may need to post signs banning flash photography and lighting for videos. Otherwise, the guest experience will diminish. Who pays the price for that negatively impacted experience? Not the influencer; the operator takes the hit in their reviews and traffic.

If video is here to stay, operators need to observe their dining rooms and adjust accordingly. That doesn’t just mean crafting video-worthy interiors and menu items. Now, it also means protecting the guest experience.

Image: Alexander Andrews on Unsplash

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by David Klemt David Klemt No Comments

Datassential: The Flavors of 2023

Datassential: The Flavors and Menu Items of 2023

by David Klemt

Basket of hot chicken wings

Food and beverage market research agency Datassential has some data-driven thoughts on the flavors and menu items that will define 2023.

Featured in their latest Foodbytes report are 20 items for operators to consider this year. There are ten food items, drinks, and ingredients Datassential predicts will be on basically every menu.

And there are another ten food items, drinks, and ingredients the agency feels could suddenly hit in 2023.

For you own copy of Datassential’s 2023 Food Trends, click here.

Prolific Performers

As Datassential refers to them in their report, these are the items “that will be everywhere” this year.

Food

  • Birria. This one makes sense as birria only appears to be capable of continually growing in popularity.
  • Mushroom. In Datassential’s opinion, we should expect more menus to feature mushroom snacks. Also, expect to see (or add yourself) lesser-known, rare, and exotic mushrooms on menus.
  • Salsa macha. Over the past four years, according to Datassential, salsa macha as grown a staggering 339 percent on menus.

Drink

  • London Fog. A compelling earl grey tea latte.
  • Mangonada. Salty, tart, fruity, and bold, the Mangonada is a flavorful frozen drink.
  • Ranch Water. Simple, timeless, and refreshing. In 2022, per Datassential, Ranch Water was the fastest-growing cocktail.
  • Soju. According to Datassential, soju is the third fastest-growing spirit on restaurant and bar menus.

Ingredient

  • Spicy maple. As the image atop this article suggests, expect spicy maple to replace or at least give hot honey a run for its money.
  • Ube. A striking purple yam from the Philippines.
  • Yuzu. Datassential predicts this citrus fruit will start showing up on many chain restaurant menus.

Promising Performers

In Datassential’s data-driven opinion, the following items need to be on every operator’s radar.

These are the items that have the potential to “hit it big” in 2023.

Food

  • Pickled strawberries. Interestingly, this matches up with Technomic’s trend prediction for the US, Canadaworldwide, really.
  • Savory granola. Not only on its own but as an element of savory, healthy bowl.
  • Sisig. A Filipino delicacy with pork belly, pig’s face, and chicken liver as key elements.

Drink

  • White coffee. As Datassential states, “there’s always room for coffee innovation on menus.”

Ingredient

  • Black tahini. The appearance of black tahini is quite striking, making for dramatic presentations. And as we know, striking presentations are perfect for social media marketing and engagement.
  • Cannabis. The legalization of recreational cannabis use in almost half of US states is leading to innovation in this space. And as more markets legalize public consumption in the form of F&B items on-premise, restaurants and bars will add cannabis-infused items to their menus.
  • Cherry blossom, or sakura. It seems that cherry blossoms are poised to take off in the US market.
  • Chestnut flower. Per Datassential, this ingredient is gaining popularity for use in winter baked goods.
  • MSG. For decades, restaurants proudly proclaimed “no MSG” or “MSG-free” on menus due to misconceptions. Now that consumers are better educated about ingredients, restaurants are proudly proclaiming their use of MSG.
  • Verjus. An ancient juice made by crushing unripened wine grapes. It can be an ingredient in a sauce, as a condiment, or to deglaze a pan.

There you have it—20 items to consider adding in your next menu update, featuring in your next LTO, or at least keeping an eye on in 2023.

Image: Scott Eckersley on Unsplash

by David Klemt David Klemt No Comments

Global Trends 2023: Technomic

Global Trends 2023: Technomic

by David Klemt

Shawarma stacked with fire in the background

Not content to focus solely on North America, foodservice research firm Technomic is predicting foodservice trends that will span the globe in 2023.

As the firm points out themselves, making predictions is a best-guess proposition. Many of Technomic’s 2022 predictions for Canada, the USA, and the globe have proven true. However, a handful of their trend predictions have yet to manifest.

Further, not all trends will work for all operators and their concepts. Chasing every passing fad or trend is great if you like to watch your costs spiral. Doing so is also an excellent way to confuse guests and stress staff.

So, when considering any trend, make sure it works with your concept, has some staying power, and will resonate with your guests. Speaking to that last point, this is one reason it’s crucial to collect guest data. Making important menu and guest-impacting operational decisions without data just doesn’t make sense.

When you’re done with this article, take a look at our examination of Technomic’s other predictions. The firm’s Canadian predictions are here. And you can read the American trends by clicking this link.

For your own copy of Technomic’s international trends report, click here.

Operations

For 2023, Technomic is making predictions that certainly appear plausible. A number of them pertain to operations.

Kicking things off, sustainability. Driven in part by the global impact of the pandemic, the health of our planet is top of mind for many people.

For example, Canada’s single-use plastics ban is now in effect. England plans to move forward with a similar ban by October of this year.

Alongside such bans, Technomic believes operators—small independents and global chains alike—will implement entire sustainability strategies. These will range “from packaging and restaurant operations to marketing and menu development.”

Does your concept have a dedicated pickup window? Perhaps a takeaway counter? Maybe even a drive-thru? If not, 2023 may be the year you make that change. Not only that, you’ll likely want to position them front and center.

Per Technomic, many consumers are done with delivery. From rising costs outweighing convenience to delivery failures, pickup may become more appealing. Pickup is still convenient, it’s less expensive, and the consumer is in control.

Additionally, many people are well aware of how costly third-party platforms are to operators. In fact, Technomic identifies these platforms and their fees as “the biggest industry villain” of 2023.

Menu

One of Technomic’s predictions is particularly enticing: Lebanese street foods. To clarify, the firm believes all manner of street foods from around the globe will perform well in 2023.

However, they feel Lebanon’s street foods will stand out from the rest. So, think shawarma, labneh, kibbe, and pickled vegetables. That last item, by the way, follows Technomic’s prediction that pickling and fermenting will be hot trends in the US and Canada.

Of course, there are other items that Technomic thinks will shine in 2023. If the firm is correct, there’s a new “holy trinity” to keep an eye on and consider for your menu: sushi, poke, and ceviche. According to Technomic, each performs very well when it comes to takeout.

Interestingly, the research firm suggests that this particular holy trinity will spawn new virtual brands. If Technomic’s predictions prove accurate, some of these brands will focus on fried chicken or plant-based versions.

Speaking to that last point, Technomic is predicting that plant-based will “evolve” in 2023. This evolution will focus on more traditional meat counterparts. Providing examples, Technomic suggests that avocado, modern takes on black bean patties, cauliflower, tofu, tempeh, and seitan will be this year’s plant-based rock stars.

Are this year’s 2023 Technomic predictions going to prove accurate? It’s far too early to tell. However, one thing I can say with confidence is this: their predictions are rooted deeply in data. When Technomic makes a “guess,” it’s always an informed one.

Click here to read Technomic’s report in its entirety.

Image: Slashio Photography on Unsplash

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