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by David Klemt David Klemt No Comments

What You Need to Know About SBA Form 3508S

What You Need to Know About SBA Form 3508S

by David Klemt

Midway through last month, the Small Business Administration maneuvered to make the PPP loan forgiveness process simpler for loans up to $150,000.

In December of 2020, Congress passed a Covid-19 relief bill that pumped $284 billion into the Paycheck Protection Program.

Twelve billion dollars were made available to minority-owned and “very small” businesses, and $15 billion were made available to independent movie theaters, live music venues, and cultural institutions.

What is SBA Form 3508S?

Simply put, 3508S is a simplified, one-page PPP loan forgiveness form.

When Congress passed December’s relief bill, they included a requirement for the SBA to offer streamlined loan forgiveness forms.

To that end, 3508S is for businesses that received loans of $150K or less. Again, it’s a single page. As you’ll see when you check out SBA Form 3508S, the form comes with instructions.

What information do you need to provide?

With Form 3508S, you’re not even filling out an entire page. And the first roughly third is simple. Assuming you’re the person filling out, certifying and signing the form:

  • Business legal name (“Borrower”)
  • If applicable, the DBA or Tradename
  • Business address
  • North American Industry Classification System (NAICS) code (Accommodation and Food Services is 72; Arts, Entertainment and Recreation is 71, for reference)
  • Business Taxpayer Identification Number (TIN), Employer Identification Number (EIN), or Social Security Number (SSN)
  • Primary contact
  • Email address

After filling out that section and ticking the box for first-draw PPP loans or second draw, you’ll need the following info:

  • SBA PPP loan number
  • Lender PPP loan number
  • PPP loan amount
  • PPP loan disbursement date
  • The number of employees at the time of the loan application
  • Number of employees at time of loan forgiveness application
  • Covered period of PPP loan. Per the form instructions, “The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the
    Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.”
  • Total amount of loan spent on payroll costs
  • Requested amount of loan forgiveness

From there, you initial two boxes–if you can do so accurately and honestly–next to certification statements. Then you sign, print and the date form and include your title.

There’s an optional demographic information section at the top of page two of Form 3508S.

SBA Form 3508A. Sample only.

What additional documentation must you provide?

None, which is what makes this form so simple. In fact, you’re not even required to show any of your calculations corresponding form sections. However, we strongly suggest you run those calculations as you’ll need to certify that you did so and you’ll need them if the SBA audits the loan.

And while you don’t have to submit additional documents, it’s likewise required and smart that you retain required documentation for a number of years. The SBA may ask for certain documents when your application comes up for review, so you’ll want to know where they are to make the process as smooth as possible.

What’s the loan forgiveness deadline?

There’s no specific date in terms of an SBA PPP loan deadline. However, the SBA’s PPP loan forgiveness FAQ states the following:

  • “Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.”
  • “[I]f a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.

You may notice that Form 3508S has an expiration date of July 31, 2021 in the upper right-hand corner. This simply indicates the SBA’s compliance with the Paperwork
Reduction Act.

There are other SBA PPP loan forgiveness applications as well. SBA Form 3508-EZ is for borrowers who meet specific conditions, and Form 3508D is for borrowers to disclose controlling interests in the business by other companies, along with government officials involved in the business.

If none of those forms are right for you, you’ll have to fill out the standard, five-page Form 3508.

Image: Cytonn Photography from Pexels

by David Klemt David Klemt No Comments

Los Angeles Restaurants Face New Outdoor Dining Restrictions

After Weeks of Prohibition, This is What Los Angeles Restaurants are Facing

by David Klemt

Limited to delivery and takeout for several weeks, Los Angeles restaurants and breweries may now offer outdoor dining.

Of course, that easing of restrictions comes with a raft of new limitations.

The outdoor dining ban was lifted last Friday, January 29. Governor Gavin Newsom rescinded California’s statewide stay-at-home order four days prior, January 25.

Operators, still caught firmly in the vortex of opens, closures and ever-shifting restrictions, will have to weigh the potential to generate in-person dining revenue against limitations and costs.

Outdoor dining capacity of restaurants, breweries and wineries (able to open for outdoor tastings) is restricted to 50 percent. Even an operator with a significant outdoor footprint may find the revenue generated from in-person dining incapable of offsetting associated costs.

Speaking of footprint, operators must also contend with new distance requirements. Outdoor tables must now be spaced a minimum of eight feet apart to ensure guests aren’t seated back to back. This increase from six feet must be measured from the edges of each table.

Any employee who “may come in contact” with a guest is required to wear a face mask and a face shield for the duration of such an interaction, which can’t include tableside preparations.

No live entertainment is permitted, and televisions must remain turned off. Couple the television ban with a prohibition on “coordinated, organized or invited events or gatherings” and Super Bowl parties are clearly not permitted.

Additional limitations pertain to guests and group size. No more than six people may be seated at a table, and each guest must be a member of the same household. Signage informing guests of the household requirement must be posted, and guests must also be given this information verbally.

A “household” in Los Angeles County is defined as “persons living together as a single living unit.” Click here for the County of Los Angeles Department of Public Health’s “Protocol for Restaurants, Breweries and Wineries: Appendix I.”

According to Dr. Barbara Ferrer, Los Angeles County health director, operators can expect increased scrutiny and enforcement of Covid-19 protocols.

Evidence of enhanced enforcement efforts was seen last week. LA County filed two suits on January 27 against Cronies Sports Grill in Agoura Hills and Tinhorn Flats in Burbank for failing to adhere to health directives. Both suits label the establishments as “public nuisances.”

Some Los Angeles operators may find limited outdoor dining better than no in-person dining at all. However, others may conclude that labor and PPE costs alone aren’t worth restricted reopening, to say nothing of contending with increased governmental scrutiny.

Image: David Mark from Pixabay

by krghospitality krghospitality No Comments

National Restaurant Association Opposes Elimination of Tip Credit

National Restaurant Association Opposes Elimination of Tip Credit

by David Klemt

Citing a 600-percent increase in labor costs, the National Restaurant Association opposes the elimination of the tip credit.

An email sent out yesterday by NRA executive vice president of public affairs, Sean Kennedy, stated that doing away with the credit would present “an impossible challenge to restaurant owners” to remain open.

The email also opposes boosting the national minimum wage to $15 per hour.

Not every operation would see labor costs potentially skyrocket to untenable levels but wage changes could see restaurants, bars and other businesses in some states hit the cited 600-percent increase. If the majority of restaurant operators saw sales decline last month, as a previous NRA report said operators predicted, and that trend continues, the association’s standpoint could be proven right.

While the NRA continues its support for making the RESTAURANTS Act part of any new stimulus relief bill, the association has made their positions on the matter of a minimum wage hike and elimination of the tip credit clear:

“But now is not the time to insert wage changes–a hike in the minimum wage and elimination of the tip credit–to a stimulus bill. Tipped servers generally earn between $19-$25 dollars per hour, and this plan would punish these workers who use restaurant jobs to make a better life for themselves.”

The NRA appears concerned that the Biden administration’s efforts to quickly get Congress to pass a Covid-19 relief bill are short-sighted and will end up hurting tipped workers and the hospitality industry overall.

According to the message sent out yesterday, the majority of tipped workers across the country have, historically, opposed efforts to eliminate the tip credit. Per the NRA, tipped workers earn between $19 to $25 per hour when the tip credit remains intact.

Instead, the NRA prefers the next stimulus relief bill–there are currently two competing bills, one for $1.9 trillion plan and a GOP counterplan with a price tag of around $600 billion–to go with the Senate version of the RESTAURANTS Act.

If you agree with the NRA’s concerns, click here to take action.

Image: Mathieu Turle on Unsplash

by David Klemt David Klemt No Comments

Rise of the ‘Not’ Delivery Platforms

Rise of the ‘Not’ Delivery Platforms

by David Klemt

The big third-party delivery services are facing pushback in the form of community-based competition.

We’ve kept our eye on this burgeoning trend and the push for operators to implement first-party delivery, also known as direct delivery.

It isn’t directly related to hospitality but the first of the “not” sites that grabbed our attention was Not Amazon. As the name suggests, Not Amazon is…well…not Amazon.

The founder highlights businesses owned and operated by women and BIPOC and LGBTQA+ people. However, Not Amazon goes even further, as illustrated in their mission statement:

“Providing the most we can, while taking as little as possible, in order to build a new kind of community.”

Community and neighborhood support is at the core of Not Amazon. The digital era has been marked by local, mom-and-pop brick-and-mortar businesses suffering in the wake of online shopping. Convenience has outweighed community. More often than not, women-, BIPOC- and LGBTQA+-owned businesses have been disproportionately affected by “convenience.”

Of course, it makes sense with a global pandemic to shop online. Not Amazon, which currently serves Calgary, Halifax, Toronto and Vancouver, provides a viable alternative to its behemoth of an online retail counterpart.

That brings us to two compelling hospitality industry-specific platforms.

It’s not a secret that KRG Hospitality supports first-party and last-mile delivery. In fact, we’ve very clearly explained that operators lose guest data and control over the guest journey when they sign with a third-party delivery company.

That’s to say nothing of the fees third-party services charge their F&B “partners.” Is it convenient that DoorDash, UberEats, Postmates and other companies provide a semblance of infrastructure, the lure of reaching a larger pool of customers, and drivers (including the associated liability)? Sure.

But are the costs associated with doing business with a third-party delivery company worth it? Most likely not.

Studies have also shown that when a delivery goes wrong on the third-party’s end–cold food, for instance–it’s the restaurant that tends to get the blame.

There are two websites that, like Not Amazon, have popped up to put supporting local restaurants front and center: Not UberEats and NotGrubhub.

The former serves Toronto and operates as a non-profit, according to their FAQ page. The latter is mainly focused on the United States, offers the option to purchase gift cards, and is powered by Lunchbox. NotGubhub also boasts more than 100,000 direct ordering links.

Both operate in similar fashion: Restaurants submit their information to be added to the respective platforms, provide an ordering link, and obtain a listing. From there, people can search by location for restaurants in their area to place a delivery order.

In the case of NotUberEats, deliveries are fulfilled by Ritual or DoorDash. As noted on their FAQ page, Ritual is offering Toronto restaurants free delivery through 2021. Restaurants can also DoorDash because, as NotUberEats explains in their FAQs, the service is charging a flat rate and not collecting any commissions.

People can also send restaurant information to NotUberEats to help grow their listings. Anyone who wishes to do so is asked to provide at least 50 businesses in their city and submit them here.

Operators ready to make the move to first-party/direct delivery and own their guest journey should consider the following platforms:

With delivery here to stay, the sooner operators transition to direct delivery, the better. There’s no longer a reason to lose control of guests, a profitable operational element, or costs.

Image: Nathan Dumlao on Unsplash

by David Klemt David Klemt No Comments

California’s Restrictive Regional Stay-at-Home Order Rescinded

California’s Restrictive Regional Stay-at-Home Order Rescinded

by David Klemt

Expectation became reality yesterday when Governor Gavin Newsom rescinded California’s highly restrictive regional stay-at-home order.

It had been reported for at least a day prior that Gov. Newsom was expected to do so on January 25.

The order, which choked the life out of restaurants, bars and other businesses, has been in place since the start of December 2020.

As we reported several weeks ago, a group of Orange County operators pushed back against the order shortly after it was imposed. The #OPENSAFE collective released a statement announcing their intention to protest Gov. Newsom’s stay-at-home order by remaining open for in-person dining.

Other states that imposed seemingly arbitrary and illogical orders that crushed restaurants and bars also experienced open defiance from operators. One of the highest-profile protests came from New York City restaurants.

Speaking for the first time in well over a week about California’s efforts to combat Covid-19, Gov. Newsom said, “Everything that should be up is up, everything that should be down is down.”

That’s an interesting claim given California experienced a record number of Covid-19-related deaths on January 21 with 761. During his press conference, the embattled governor claimed he lifted his stay-at-home order due to ICU numbers and not because of the multiple lawsuits filed against him or the current recall campaign.

Rather, Gov. Newsom said that he made his decision based on Covid-19 cases and hospitalizations decreasing while vaccination rates are reportedly trending upward. However, as one source cited, just 26 percent of California’s allotted vaccine doses had been administered as of last week.

The rescinding of the regional stay-at-home order doesn’t mean that businesses can reopen and resume operations as usual. Each of the state’s counties will be color-coded according to California’s “Blueprint for a Safer Economy.” Projections will be set aside for actual transmission rate data.

Tier 4 is color-coded yellow and its Covid-19 transmission risk is labeled “Minimal.” Tier 3 is orange and “Moderate,” where as Tier 2 is red and “Substantial.” Tier 1, which is purple, is labeled “Widespread.”

At the moment, most counties in California are purple.

Restaurants located in a Tier 1 county can offer only outdoor in-person dining. Those in Tier 2 can offer indoor dining but only at 25-percent capacity or 100-person maximum capacity (whichever is lower). Tier 3 bumps capacity to 50 percent or 200 people, and Tier 4 dictates a maximum of 50 percent capacity.

As expected, bars (along with breweries distilleries) that don’t serve food receive much harsher treatment than restaurants. Those located in a county designated purple or red must close. Bars in orange counties can open for outdoor service only, and those in yellow counties can offer indoor service at 50-percent maximum capacity. Bars “where [a] meal is provided” follow restaurant guidelines for the four applicable tiers.

Movie theaters, for context concerning how bars are being treated, are subject to the same guidance as restaurants in California’s blueprint. Such venues aren’t exactly known for providing meals.

Before operators who have chosen to work within California’s guidelines throw their doors open, they need to know two things. One, county officials are permitted to impose their own restrictions. If they choose to do so, those restrictions can be stricter than those that come down from state officials.

Two, for those operators in Los Angeles County, confusion remains regarding outdoor dining. Some interpret the rescinding of the state’s prohibition on outdoor dining as a lifting the ban. However, LA County implemented its own ban before the state did so. That county-issued ban expired on December 16 but outdoor dining was banned under the statewide stay-at-home order.

It may seem cut and dry that the expiration of the county order and the lifting of the state’s ban shifts LA County to Tier 1 restrictions. Operators should make sure they’re clear to resume outdoor service before incurring the costs associated with doing so.

How long California will revert back to the state’s Blueprint for a Safer Economy is anyone’s guess. Operators in several states have found themselves caught in a vicious open-close, open-close vortex. At any rate, 25-percent capacity restrictions will still more than likely make it more cost-effective for some operations to remain closed for indoor service.

Image: Paul Hanaoka on Unsplash

by David Klemt David Klemt No Comments

February’s Big Game Presents an Opportunity for Operators

February’s Big Game Presents an Opportunity for Operators

by David Klemt

The most American of sporting events goes down on February 7.

This season’s Super Bowl match-up was decided yesterday.

In the NFC Championship game, the 14-5 Tampa Bay Buccaneers, led by Tom Brady, defeated Aaron Rodgers and the 14-4 Green Bay Packers. The game was close, with the Bucs winning 31 to 26.

Later in the day, Patrick Mahomes and the 16-2 Kansas City Chiefs, led by Josh Allen, knocked the 15-4 Buffalo Bills out of the championship game yesterday, beating them 38-24. That 14-point win clinched the AFC Championship for the Chiefs.

The final contest of the season will take place on February 7 at Raymond James Stadium in Tampa, Florida. Kickoff is scheduled for 6:30 PM EST.

2020 marked an unusual 101st season for the NFL. Making it even more unique is the fact that the 2021 Super Bowl marks the first time in history that a team competing in the big game will play at their own stadium.

Super Bowl LV is the third NFL Championship game to be played at Raymond James Stadium and the fifth to take place in Tampa. The Weeknd will headline the halftime show.

Another unique development concerns Super Bowl advertising. Reportedly, Budweiser, Pepsi, Coca-Cola, Little Caesars, Ford, Hyundai, Avocados From Mexico, and Olay won’t be running ads during this year’s game.

The pandemic, unemployment, and political division have been cited as reasons some corporations have decided to pass on Super Bowl LV. Several companies don’t believe it’s possible to produce and air a commercial that won’t offend and be met with backlash.

Operators who have yet to finalize their Super Bowl promotions need to jump on that now. Of course, state Covid-19 protocols will play a major role in big game planning.

For example, Governor Gavin Newsom is expected to “relax” California’s stay-at-home restrictions later today. It has been reported that restaurants will be permitted to offer outdoor dining. Of course, local officials could impose limits on businesses, so California operators must monitor the situation closely.

Football fans and people who are simply eager to get out of their homes will likely flock to any restaurant, bar, brewery or distillery able to host an in-person Super Bowl event.

While that represents opportunities to generate revenue—and possibly turn a much-needed profit—it’s important that operators work within their mandated pandemic guidelines. Businesses hosting Super Bowl parties should expect to face increased scrutiny and must be as prepared as possible to avoid fines, shutdowns or suspended licenses.

That said, delivery and takeout packages programmed around the Super Bowl will likely be attractive to customers. Pizza, chicken wings, chicken sandwiches, burgers, snacks and other popular items should be considered for packages. Click here for our coverage of the top delivery items for 2020 and 2021 predictions.

One other word of caution: The NFL is notoriously protective—and litigious—when it comes to their branding. Operators must keep that in mind when promoting Super Bowl events and specials.

Avoid mentioning the NFL, both teams, and the term Super Bowl when marketing February 7’s event. For years, “the big game” has been the go-to to avoid legal trouble. (We’re not attorneys, so proceed with caution when advertising the Super Bowl as this warning doesn’t constitute legal advice.)

Operators have a real opportunity to ring their registers in two weeks. Be informed, be creative, be fun, and be cautious but optimistic.

Image: 3D Animation Production Company from Pixabay

by David Klemt David Klemt No Comments

Las Vegas Vegan Culinary School Slated for April Opening

Las Vegas Vegan Culinary School Slated for April Opening

by David Klemt

This has been a big year for veganism already.

Multiple sources have named vegan food as a hot (and therefore lucrative) “trend” to watch this year.

The Michelin Guide France awarded a star to an entirely vegan restaurant in France for the first time in history.

And now, news out of Las Vegas is further making this Veganuary one for the books.

Global destination that it is, Las Vegas does its best to appeal to the greatest number of people possible. There are close to two dozen restaurants considered wholly vegan, and hundreds of other venues have vegan-friendly options. For several years now, every restaurant at Wynn Las Vegas has had vegan options on their menus.

The fact that Las Vegas is picking up steam as a vegan-friendly hotspot can be attributed to a few factors.

One, destination cities are about delivering on top-notch experiences. Vegas is no exception—amazing experiences keep people coming back. Two, if it’s trending, it’s very likely available somewhere in Vegas. The more popular it becomes, the more widely available it is throughout the city. And three, Las Vegas operators aren’t in the habit of letting a lucrative opportunity slide by them. People are willing to pay money for vegan food? Then vegan food they shall have!

Vegas Vegan Culinary School & Eatery is slated to open in April 2021. Located in the Arts District of Downtown Las Vegas, the venue will operate as a vegan deli, coffee shop, weekly meal delivery service, space for events and fundraisers, and brick-and-mortar and online culinary school.

According to Vegas Vegan’s Instagram page, demo at their location began around the middle of this month. A post from two days ago shows buildout progress.

This type of project moving from concept to buildout is a big deal for the city, culinary students, vegans, and those curious about the vegan diet. It’s also a big development for vegan food in general.

It’s certainly too early to declare 2021 food trend predictions accurate, of course. However, the opening of a dedicated vegan culinary school and restaurant certainly hints at vegan food ramping up in popularity this year. The same can be said for vegetarian and plant-based diets as well.

Moving forward, it’s going to be important and profitable for operators to have at least a few vegan-friendly F&B menu options. To fail to do so is to alienate vegans, and in this industry alienation equals lost revenue, something no operator can afford.

For those uncertain about what food items to add to their main, delivery and takeout menus, Grubhub listed the below as their top five vegan orders of 2020:

  1. Tofu spring rolls (263 percent more popular in 2020 than 2019)
  2. Plant based burger (251 percent more popular in 2020 than 2019)
  3. Black bean taco (242 percent more popular in 2020 than 2019)
  4. Vegan chocolate cake (211 percent more popular in 2020 than 2019)
  5. Vegan ramen (183 percent more popular in 2020 than 2019)

Succeeding with vegan or other diet-specific items comes down to thoughtful consideration of what will be authentic to a particular restaurant or bar. Just slapping anything vegan on the menu is simply not good enough.

Image: Free To Use Sounds on Unsplash

by David Klemt David Klemt No Comments

Recently Awarded Michelin Star Shines Spotlight on Vegan Menus and Operations

Recently Awarded Michelin Star Shines Spotlight on Vegan Menus and Operations

by David Klemt

If there was any question that vegan restaurant concepts are viable, a recently awarded Michelin star has provided a firm and affirmative answer.

Michelin Guide France awarded ONA (Origine Non Animale or “Non-Animal Origin” in English) a Michelin star earlier this week. This marks the first time in the award’s history that a restaurant in France that uses no animal products received a star.

Chef and owner Claire Vallée opened ONA in the city of Arès in the southwest of France in 2016 leveraging a combination of crowdfunding a loan from La Nef, an ethical bank. It has been reported that volunteers helped to finish the project when funds ran out before construction had been completed.

The vegan diet has endured mockery for decades in the United States and Canada. It’s only in recent years that veganism has flourished, bolstered by a belief that the diet is healthier, more sustainable, and more ethical. Growing interest in plant-based diets have also no doubt boosted veganism.

In France, however, the vegan diet hasn’t been embraced as widely as it has throughout North America. Sifting through online searches, travel blogs and posts shows that, generally speaking, vegan options aren’t widely available throughout France’s rich and storied restaurant scene.

For ONA to win a Michelin star shows that attitudes toward the vegan diet in one of the gastronomy and culinary capitals of the world is undergoing a possibly seismic shift.

A number of chefs have returned their Michelin stars or requested their restaurants not be considered for the accolade. For now, however, Michelin stars still recognize outstanding food and operations.

The awarding of a star to ONA is a significant achievement for Chef Vallée and her team.

Image: Jo Sonn on Unsplash

by David Klemt David Klemt No Comments

Delivery and Takeout Food Trends for 2021: United States

Delivery and Takeout Food Trends for 2021: United States

by David Klemt

Yesterday we reviewed food delivery data and 2021 food trend predictions for Canada. Now it’s the United States’ turn.

Before we jump into the data and predictions, a word on succeeding with delivery in 2021 and beyond.

As I pointed out yesterday, when an operator signs up with a third-party delivery service, their guest data becomes the delivery company’s data.

That means that company and not the restaurant or bar owns the guest journey and guest engagement, and therefore owns the guest for all intents and purposes.

When a restaurant, bar or other F&B business enters into a contract with a third-party delivery company—unless otherwise explicitly stated—they give up control of targeted marketing efforts. In other words, third-party delivery platforms disrupt the guest journey.

Delivery became a way for many businesses to generate revenue during 2020, for obvious reasons. Operators who can afford to implement first-part and last-mile delivery should do so to maximize their revenue and control the guest journey and marketing.

To help operators own delivery, we’ve reviewed end-of-year reports from three delivery titans—UberEats, Grubhub and DoorDash—to share their 2020 findings. When it comes to the most ordered items, cuisines and categories, some third-party platforms are willing to share data.

According to UberEats, comfort foods were the most popular category:

  • Burgers and fries
  • Burritos
  • Pad Thai
  • Mac and cheese
  • California rolls
  • Chicken Tikka Masala
  • Miso soup
  • Mozzarella sticks

Per the platform, the following cuisines proved most popular:

  • American
  • Italian
  • Mexican
  • Chinese
  • Japanese
  • Thai
  • Indian
  • French
  • Caribbean
  • Greek

As UberEats stated in their report, it appears that customers found a way to travel after all—they just did it through food.

Pizza, bagels, wings, tacos, burgers and dumplings led the way for Grubhub in 2020. The most popular pizza order was Hawaiian (because some people are monsters and put pineapple on their pies), while the most popular burger was garlic mushroom. Grubhub revealed that their top French fry was the loaded curly fry, and the most popular plant-based item was the eggplant burger.

In descending order, the top F&B Grubhub orders overall from 2020 were:

  • Spicy chicken sandwich
  • Chicken burrito bowl
  • Chicken wings
  • Waffle fries
  • Cold brew coffee
  • Steak quesadilla
  • Iced latte
  • Fish and chips
  • Strawberry shake
  • Roast beef sandwich

Per Grubhub, the top breakfast item was the acai bowl, the top side dish was French fries, the number-one late-night order was strawberry cheesecake, and the most ordered dessert was apple pie.

Moving on to DoorDash, the platform identified their top ten 2020 items back in November:

  • Chicken fingers and French fries
  • Fried chicken sandwich
  • Mac and cheese
  • Chips and guacamole
  • Apple pie
  • Pad Thai
  • Chicken quesadilla
  • Iced coffee
  • California roll
  • Chicken Tikka Masala

The UberEats, Grubhub and DoorDash revelations align with data collected by the National Restaurant Association between November and December of 2020. Per the NRA, the following were the top items sold by full-service casual, family and fine-dining restaurants:

  • Burgers
  • Seafood
  • Pizza
  • Steak
  • Chicken (excluding chicken wings)
  • Breakfast items
  • Pasta
  • Mexican food
  • Sandwiches, subs and wraps
  • Chicken wings

According to the NRA, the items below were the most popular for limited-service restaurants (fast casual, quick-service, coffee and snack):

  • Sandwiches, subs and wraps
  • Pizza
  • Burgers
  • Chicken (excluding chicken wings)
  • Ice cream, cookies and cakes
  • Baked goods
  • Breakfast items
  • Mexican food
  • BBQ items
  • Seafood

For 2021, DoorDash predicted the following items to see a lift:

  • Sausage, egg and cheese on a biscuit
  • Create your own omelettes
  • Carrot cake
  • Cinnamon roll
  • Caramel latte
  • Chocolate brownies
  • Black coffee
  • Donuts
  • Blueberry muffin
  • Biscuits

DoorDash revealed that Mexican, Chinese and Tex-Mex were the top cuisines ordered via the platform. The company also predicted five cuisines would be popular in 2021:

  • Taiwanese
  • French
  • Filipino
  • Australian
  • Moroccan

When it comes to 2021, multiple sources have named vegetarian, vegan, plant-based, and health and wellness items as the foods to watch. Even this early into the year it’s not exactly a controversial statement to say that all of those categories are going to perform well in 2021.

According to DoorDash, nearly half of Americans (47 percent) plan to consume more plant-based items. Whether it’s truly healthier than its traditional counterparts, plant-based is perceived that way. In total, per DoorDash, 72 percent of Americans plan to make a concerted effort to eat healthier in 2021. This is likely due to an increased interest in boosting immune systems due to Covid-19.

Put another way, operators will likely struggle if they don’t add vegan, vegetarian, and plant-based foods to their streamlined menus, another trend expected to continue through 2021.

Predictions from the Specialty Food Association in particular caught our attention. For 2021, the association has predicted spices and herbs native to West Africa (Senegal, for example) will be in demand. Scandinavian and Cambodian flavors are also expected to perform well, as are Latin American and Southeast Asian items.

Due to interest in tahini sauce and black sesame, the SFA expects halva, which is a Middle Eastern confection, to get plenty of attention. The SFA and Datassential both named fermented honey as an item to watch in 2021.

Along with vegan and plant-based items, creative meal kits are expected to perform well. Restaurants and bars will continue to face restrictions and indoor dining bans over the course of at least the next few months. Creative meal kits will get the attention of customers who have grown tired of preparing the same meals over and over.

Whether an operator chooses to stick with their current menu or embrace one or more food trends, they should look into first-party or last-mile delivery. It’s imperative that operators own their guest journey and marketing efforts.

For more information about first-party and last-mile delivery, please listen to Bar Hacks episode 13 with “Rev” Ciancio, an advocate of keeping delivery and data in-house.

Image: Robert Anasch on Unsplash

by David Klemt David Klemt No Comments

Delivery and Takeout Food Trends for 2021: Canada

Delivery and Takeout Food Trends for 2021: Canada

by David Klemt

Patrons, analysts and experts have spoken: delivery and takeout will remain standards in the new era of hospitality.

Analysts and experts have spoken with data, and consumers have spoken with their dollars.

But there’s another consequential voice that matters when it comes to delivery: that of the operator.

There’s no denying that the operator is shoved aside in the third-party delivery relationship. At the very least, that’s the overwhelming perception. Once an operator signs on with such a service, their guest data becomes the delivery company’s data.

Whatever company owns the data owns the guest, their journey and engagement, and the targeted marketing efforts. That means a restaurant or bar’s guests receive offers and promotions for their competitors.

In short, third-party delivery platforms disrupt the guest journey.

However, there are some data the third-party delivery services do share. As we saw midway through 2020, for example, Uber Eats and Grubhub released the top orders and other useful information in publicly available reports. Some of the services also release end-of-year or year-in-review reports, as SkipTheDishes did for Canada.

Most of these reports are laser-focused on the United States. That’s logical given the number of bars, restaurants and other hospitality businesses to which Grubhub, Uber Eats, Postmates, Instacart, Seamless and other services have access.

SkipTheDishes, for the Americans reading this, is the Grubhub of Canada. For the Canadians reading, below are SkipTheDishes’ data regarding top orders, cuisine, and demographics in 2020:

  • Top Cuisines: Chinese, Italian, American/Canadian
  • Top Orders (General): Asian dishes, pizza, burgers
  • Top Orders by Item: Chicken sandwiches (also the top item in 2020 in the US), burgers, and French fries (mid-year data)
  • Top Vegan Provinces: Manitoba, Saskatchewan, British Columbia
  • Top Organic Provinces: British Columbia, Ontario, Alberta
  • Top Gluten-free Provinces: Manitoba, Alberta, The Maritimes
  • Top Dairy-free Provinces: British Columbia, Alberta, The Maritimes
  • Top Kosher Provinces: Alberta, Ontario, Saskatchewan
  • Top Dayparts: 5:00 PM was the most popular order time, and late afternoon (3:00-4:00 PM) and weekdays saw lifts. Late-night ordering (9:00 PM and beyond) slowed. (Mid-year data.)
  • Top Pre-order Daypart: 5:00 PM. More Canadians got into the habit of pre-ordering their dinners. (Mid-year data.)
  • Fastest-growing Segment by Age Group: 65+
  • Most Revealing Datum: 81% of customers ordered from restaurants they’d never visited in person.

That was last year. What’s in store for Canada this year? A scan of a few sources—Food Network Canada, Restaurants Canada, and Chatelaine—offers some valuable insights.

Plant-based items and foods recognized for boosting a person’s immune system are expected to be popular. The pandemic has given many consumers a reason to reevaluate what they’re putting into their bodies. All three sources predict people will be interested in and order plant-based foods and focus on health and wellness.

Both Food Network Canada and Chatelaine predicted chickpeas—an inexpensive, versatile and plant-based protein source—will be among the top food items sought out by restaurant guests (in-person) and customers (takeout, delivery). Most operators should be able to adapt and get creative to add chickpea-based items to their menus. The two sources also predicted that snacking will replace meals (at least occasionally), so snackable items and sides may take off this year.

Food Network Canada pointed to sauerkraut as an example of a health and wellness food item that may see a boost in popularity and demand due to its probiotic and gut health properties. The source also predicted that coffee and coffee-based F&B items will get a lift in 2021.

Restaurants Canada predicted that comfort food, popular throughout 2020, will remain in high demand. However, 2021 will bring in an interest in elevated riffs on comfort food classics. Citing specific examples, Restaurants Canada suggested Pad Thai French fries and Pulled Pork Mac and Cheese. The Canadian food industry association predicted that interest in and support of Black, Indigenous, and People of Color (BIPOC) cuisine, flavors and businesses will continue through 2021.

All three sources listed plant jerky as food item to watch in 2021.

What else should be in store for this year? Operators embracing first-party or so-called “last-mile” delivery to grab their share of the orders of this year’s trendy food items. Platforms such as Lunchbox, Olo, ChowNow can provide operators with the ability to own delivery and therefore the entire guest journey in the new era of hospitality. It’s likely an operator’s current POS can be updated to “unlock” in-house delivery, which would then need to be supported by a delivery menu, delivery supplies, and staff training.

For more information about first-party and last-mile delivery, please listen to Bar Hacks episode 13 with “Rev” Ciancio, an advocate of keeping delivery and data in-house.

Image: Norma Mortenson from Pexels

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