Carryout | KRG Hospitality

AI-generated image of a person carrying takeout bags from restaurant to their motorcycle

September 6, 2024by David Klemt David Klemt No Comments

Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

I have done this. Cargo straps required.

Not too long ago, it seemed as delivery was going to overtake people’s desire to enjoy a restaurant in person, but that trend may be on a downward swing.

At first, this trend made perfect sense, for obvious reasons. For a while, the best way for consumers to enjoy their favorite restaurants and show support was to order delivery.

Rideshare companies jumped on delivery, as did several platforms. When guests were able to visit restaurants in person freely, delivery had become a habit for many of them. In fact, ordering delivery had become the de facto method of engaging with restaurants for a not-insignificant percentage of people.

However, operators and their teams weren’t shy about exposing their delivery “partners.” I think it’s fair to describe the fees operators were being charged by some of these partners as outrageous.

When the public found out about these fees, they didn’t sit well. Takeout, carryout, takeaway, order for pickup… Whatever your preferred nomenclature, people began seeing it as superior to delivery. This shift in consumer behavior was driven by a desire to support their favorite restaurants.

Of course, there are other factors that affected people’s move away from delivery. I’m confident in saying that most of us who have ordered delivery at some point in the last couple of years has experienced at least one of several downsides.

However, has delivery really fallen out of favor? Have takeout or drive-up pickup actually been passing up delivery?

Datassential’s 2024 Midyear Trends Report has some insights that can answer those questions. You can (and should) check it out for yourself here.

The State of Takeout and Delivery

To obtain a snapshot of the state of the performance of delivery and takeout, Datassential conducted a survey in May of this year. The F&B intelligence platform surveyed 400 US operators and more than 1,500 US consumers.

According to Datassential, nearly half of restaurant operators reported increases in guests dining in person at their restaurants.

Perhaps more telling, however, is that Datassential’s survey reveals that half of restaurants aren’t even offering delivery. I don’t know the breakdown of operators who once offered delivery and stopped doing so versus operators who never offered delivery.

What I do know is that there are, as I alluded to up top, many reasons for people to eschew delivery. Chief among these are cost, and the condition of the order when it arrives to the guest.

On the operator side, cost is once again a consideration, as are negative reviews and complaints. More than one study has shown that operators often get the blame when a third party botches an element of the delivery. These complaints can include food being delivered lukewarm or cold, parts of the delivery missing, or the wrong items being delivered to someone.

But, again, is demand for delivery slipping?

Per Datassential’s report, takeout and catering are outpacing the growth of delivery for US operators. Almost 40 percent of operators who participated in Datassential’s survey reported an increase in frequency for takeout and catering orders. In comparison, just 20 percent of respondents ordered an increase in delivery order.

Just eight percent of operators indicated a decrease in takeout and delivery. In fact, the greatest decrease impacts catering (14 percent), according to Datassential’s report.

Takeaway

Delivery, simply put, doesn’t work for every operator or every concept. Moreover, it looks like consumer desire for takeout is on a greater upswing in contrast to delivery.

For concepts that succeed with delivery, it’s imperative that operators control the process rather than cede to third parties, in my opinion.

The best way forward will vary from business to business. Operators and their teams need to be ruthless the quality, consistency, accuracy, and value of all orders, whether placed in person, for takeout, or for delivery. Further, when it comes to takeout and delivery, the ordering process must be convenient.

What’s clear is that every operator needs to dive into their data, determine how guests prefer to order from their restaurant, and pursue those preferences to enhance the guest experience.

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January 17, 2024by David Klemt David Klemt No Comments

Welcome Back to the Culinary Arena

Welcome Back to the Culinary Arena: A Comprehensive Guide for 2024

by Nathen Dubé

The start of a new year is an exciting time in the restaurant world, offering a unique opportunity to reassess and rejuvenate your foodservice business.

From utilizing downtime effectively to setting strategic priorities, this guide is designed to help you navigate the year ahead with confidence and creativity.

Whether you’re a seasoned chef or a budding restaurateur, these insights will equip you with the tools to make 2024 a year of remarkable culinary experiences and business growth.

Part 1: Strategic Use of Downtime

Menu Innovation and Optimization

The start of the year is ideal for re-evaluating your menu.

Begin by analyzing customer feedback and sales data from the previous year. Identify which dishes were most popular and which underperformed. Consider removing items that aren’t selling well and focus on the dishes that your customers love.

This is also an excellent time to experiment with new flavors and culinary trends. For instance, with the growing demand for plant-based options, think about introducing a few vegan or vegetarian dishes.

Keep an eye on food trends. Are there new ingredients or cooking techniques that you can incorporate into your menu? This not only keeps your offerings fresh and exciting but also shows your commitment to culinary innovation.

Remember, a well-crafted menu is a balance between popular staples and innovative dishes. It should reflect your restaurant’s identity while also appealing to your target customer base.

Consider a seasonal menu that takes advantage of fresh, local produce, which can provide inspiration for new dishes and help reduce costs.

Staff Training and Empowerment

The quieter months are a perfect opportunity for staff training and development.

Conduct a skills audit to identify areas where your team could improve or learn new competencies. This could range from culinary skills, like mastering a new cooking technique, to soft skills, such as guest service or conflict resolution.

Training doesn’t have to be formal or expensive. You can leverage online courses, in-house mentoring, or even cross-training within your team.

For instance, front-of-house staff could benefit from basic kitchen training to better understand the dishes they are serving, while kitchen staff could learn about customer service to appreciate the end-to-end dining experience.

Team building is another key aspect. Organize activities that foster communication and collaboration. This could be something as simple as a team meal or a group outing.

A cohesive team that communicates well will provide better service, leading to happier guests and a more pleasant working environment.

Finally, empower your staff by involving them in decision-making processes. This could be in menu development, process improvements, or even marketing ideas.

When staff feel valued and part of the business, they are more likely to be motivated and committed.

Facility Revitalization

Use this quieter period to assess and upgrade your facilities.

Start with a thorough cleaning and maintenance check. This includes checking kitchen equipment, dining area furniture, and the overall infrastructure of your establishment.

Evaluate your kitchen equipment and consider if anything needs to be repaired or replaced. Upgrading to more efficient equipment can improve productivity and reduce long-term costs. For instance, investing in energy-efficient appliances not only cuts down on utility bills but is also better for the environment.

Look at your dining area from a customer’s perspective. Is the seating comfortable? Is the lighting appropriate? Small changes in décor can significantly enhance the dining experience. Consider refreshing the paint, adding new artwork, or even rearranging the layout to improve flow and ambiance.

Also, think about your back-of-house operations. Is your storage area organized? Can you improve the workflow in the kitchen? An efficient back-of-house leads to smoother service and a better customer experience.

Part 2: Setting Priorities for the Year

Elevating Customer Experience

The guest experience is paramount in the food service industry. This year, make it a priority to enhance every aspect of your guest’s journey.

From the moment they walk in, to the service they receive, to the food they enjoy, each element should contribute to a memorable experience.

Focus on training your staff to provide exceptional service. This includes being knowledgeable about the menu, attentive to guest needs, and quick to resolve any issues.

Personalized service can make a big difference. Remembering regulars’ preferences or celebrating special occasions with them can turn a one-time visit into repeat patronage.

Ambiance plays a crucial role in the dining experience. The right music, lighting, and décor can create an inviting atmosphere that complements your culinary offerings. If your budget allows, consider investing in upgrades that enhance the ambiance, such as new lighting fixtures or comfortable seating.

Implementing a feedback system is also important. Encourage customers to share their experiences, whether through comment cards, online reviews, or direct conversations. This feedback is invaluable for continuous improvement and can help you address any issues promptly.

Sustainability as a Cornerstone

Sustainability is becoming increasingly important to consumers, and incorporating sustainable practices into your business can have a significant impact. Start by assessing your current practices and identifying areas for improvement.

One key area is waste reduction. Conduct a waste audit to understand where most of your waste is coming from and develop strategies to reduce it. This could involve better inventory management to prevent overordering and spoilage, composting food waste, or finding creative ways to use leftovers.

Local sourcing is another aspect of sustainability. Building relationships with local suppliers not only supports the local economy but also reduces your carbon footprint. Local ingredients are often fresher and can inspire seasonal menus.

Also, consider the sustainability of your operations. This could involve using eco-friendly packaging, reducing energy consumption, or even installing water-saving devices.

Communicating your sustainability efforts to your customers can also enhance your brand’s image and attract environmentally conscious patrons.

Innovative and Integrated Marketing Strategies

In today’s digital age, effective marketing is crucial for any business.

Utilize social media platforms to engage with your audience. Share behind-the-scenes glimpses of your kitchen, showcase your signature dishes, and highlight your team. This not only promotes your offerings but also builds a connection with your guests.

Email marketing is another powerful tool. Regular newsletters can keep your guests informed about new menu items, special events, or promotions. Personalized emails on birthdays or anniversaries can make your guests feel special and encourage repeat visits.

Don’t overlook the power of community involvement. Participate in local events, collaborate with other businesses, or sponsor local sports teams. This can increase your visibility in the community and build goodwill.

Financial Health and Diversification

Keeping a close eye on your financials is crucial.

Regularly review your costs and revenues and look for ways to optimize them. This might involve renegotiating supplier contracts, adjusting menu prices, or reducing unnecessary expenses.

Consider diversifying your revenue streams. This could include offering catering services, hosting private events, or selling branded merchandise.

These additional streams can provide a buffer during slower periods and increase your overall profitability.

Conclusion

As we look forward to 2024, let’s embrace the opportunities and challenges that come our way.

By using downtime strategically, setting clear priorities, and striving for excellence continuously, we can ensure that this year is not just successful but also fulfilling.

Remember, in the dynamic world of foodservice, adaptation and innovation are key. Let’s make this year a celebration of our culinary passion, business acumen, and commitment to our guests.

Here’s to a year of delicious discoveries and unparalleled success in the culinary world!

Image: 愚木混株 cdd20 on Unsplash

Kentucky Fried Chicken packaged for delivery or pickup

October 31, 2023by David Klemt David Klemt No Comments

2023 Cravings Report: “The Most” Orders

2023 Uber Eats Cravings Report: “The Most…” Orders

by David Klemt

Let’s take a look at the top orders, delivery requests, order combinations, surprising pairings, and more from the 2023 Uber Eats Cravings Report.

It appears that the chicken sandwich dominance we’ve seen over the years is winding down. At least, that seems to be the case among Uber Eats users.

As you’ll see below, not only is the chicken sandwich not the most popular item, it’s not even among the top five. It does edge out the cheeseburger and wings among the most popular combos, but it doesn’t outperform French fries and salt as a combo.

Another eyebrow-raising detail? Pizza doesn’t show up anywhere among the most ordered items, most popular combos, or even the most surprising combos.

Now, if you’re curious about the 2022 Uber Eats Cravings Report, you’re in luck. You can click here for the top food orders from that report, and here for the top beverage orders.

The Most…Ordered Items

French fries
Garlic naan
Pad Thai
Miso soup
California roll

Am I the only one who expected to see burgers, chicken sandwiches, and pizza on this list?

The Most…Popular Combos

Burrito bowl + cheese
French fries + salt
Chicken sandwich + shredded lettuce
Cheeseburger + mustard
Wings + ranch

Fairly standard, really. Every one of these orders makes complete sense. Now, the category coming up next…it’s a different story.

However, before we move on, let’s compare these items to those found on the 2022 Uber Eats Cravings Report.

Interestingly, the number-one item is nearly identical: burrito + cheese. And French fries + salt is the second most-popular item on both lists.

The Most…Surprising Combos

Steak + jelly
Cottage cheese + mustard
Condensed milk + avocado
Seaweed + pasta sauce
Butter + pickled onions

I really have nothing to say after reviewing this short list. I mean…hey, do your thing, everyone. Make your order yours.

To the operators out there, be ready for some odd order combos.

The Most…Popular Requests

No onions
Dressing on the side
Ranch
Extra soy sauce
Spicy
Sauce on the side
No lettuce
No jalapenos
Extra gravy
No slaw

Looking at the top request, Uber Eats has a theory as to what’s driving it: the return to the office.

People, it appears, are self-conscious about their breath in an in-person, face-to-face setting.

The Most…Popular Food and Alcohol Combos

Ribeye + Vodka
Cheeseburger + Frozen Margarita
Chicken + Frozen Piña Colada
Lobster tail + Apple whiskey
Tamales + Daiquiris

Last year’s report reveals the following combos:

Steak + Margaritas
Pizza + White Claw
Burritos + Margaritas
Chicken + Sangria
Wings + Beer

Overall, a lot of change from the 2022 Cravings Report to this year’s report.

Image: Nik on Unsplash

September 28, 2022by David Klemt David Klemt No Comments

Restaurants in Canada: Daypart Performance

Restaurants in Canada: Daypart Performance

by David Klemt

For both in-person dining and off-premise consumption, more Canadian consumers are ordering from restaurants across all dayparts.

As Restaurants Canada points out in their latest report, traffic and sales remain lower than pre-pandemic levels. However, there are reasons to be positive.

For one example, Restaurants Canada predicts 2022 sales to return to pre-pandemic levels by the end of the year. The foodservice research and advocacy organization’s 2022 Foodservice Facts report provides another positive outlook.

Just looking at Q1 of this year versus Q3, all dayparts are seeing increases in traffic.

To read more about the report and grab your own copy, follow this link.

Numbers Tell the Tale

Per Restaurants Canada, the breakfast daypart slid significantly in 2020. During that time, it fell 20 percent that year.

For the first half of this year, however, Restaurants Canada reports that breakfast traffic is just four percent lower in comparison to 2019.

On a positive note, the breakfast daypart has risen steadily from March of this year to July, or Q1 versus Q3. In fact, all dayparts have grown.

According to Restaurants Canada, 43 percent of Canadians ordered breakfast from restaurants in March 2022. That number grew to 50 percent by July of this year.

In terms of snack purchases, 55 percent of Canadian consumers made purchases from restaurants. By July, that percentage rose to 62 percent.

Continuing along, 64 percent of Canadians placed lunch orders in March. Four months later, that number had increased to 73 percent.

Per the 2022 Foodservice Facts report, a significant percentage of Canadians are placing lunch and snack orders. In fact, Restaurants Canada says that Canadians are making purchases from restaurants during those dayparts two to three times per month.

Of course, there’s one more daypart we need to discuss…

Dinner is King

By the numbers, the dinner daypart is outperforming all others in Canada.

In March of 2022, 85 percent of Canadians had placed dinner orders at restaurants. That number rose to 87 percent in April but dipped to 86 percent in May.

However, dinner saw growth again in June and July, rising to 88 and then 89 percent, respectively.

As the numbers show, dinner orders are outpacing lunch orders 14 percent. Snacks are being outpaced by dinner by nearly 30 percent. Of all dayparts, breakfast is the weakest.

In fact, dinner outperforms breakfast by nearly 40 points. This makes sense when we consider the work-from-home effect.

More people working from home means, in theory, many less people commuting to work. Restaurants that once saw great breakfast daypart traffic are seeing a significant dropoff. Less people commuting means less people popping into a restaurant for breakfast.

It appears that instead, people are clocking in, working until break time, and then going to get a snack. And when lunch rolls around, why not place an order for lunch?

Naturally, after working all day, people are tired or eager to meet up with friends and family to socialize and decompress. So, dinner ruling the daypart roost makes complete sense.

In other words, operators looking to streamline should consider this Restaurants Canada data. The dayparts that require the most labor currently are lunch and dinner, so operators should plan accordingly if that’s viable for their business.

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Bottled Negroni mixed drinks and to-go cocktails

May 21, 2021by krghospitality krghospitality No Comments

Where are To-Go Cocktails Legal?

Where are To-Go Cocktails Legal?

by David Klemt

We’re still coming to grips with what the industry will look like post-pandemic. One pandemic-driven adaptation is to-go cocktails.

For this article, “cocktails” means mixed drinks specifically, as that is how most jurisdictions are defining such to-go drinks.

In some markets, operators can now offer to-go mixed drinks permanently. Some jurisdictions are offering extensions to temporary sales, while others are considering bills.

The To-Go Pivot

Clearly, our industry responds to guest demands and expectations. And what does today’s guest expect? For their every customized whim to be fulfilled—conveniently.

Therefore, it only makes sense that operators constantly adapt to encourage guest loyalty (as far as that’s possible).

People are itching to get out more, impatient to return to their pre-pandemic lives. Even so, the convenience of drinking and dining at home appeals to large swaths of the public.

Of course, it’s not just convenient.

Providing guests the choice to enjoy a restaurant or bar’s F&B offerings and semblance of their unique experience at home—including cocktails—is also about safety and comfort levels.

Obviously, we want guests to be able to comfortably and safely gather in restaurants, bars, hotels, and every other type of hospitality venue. That’s a given.

However, if some people are more comfortable at home for now, operators in a position to meet guests where they are to generate revenue should do so.

Lawmakers Respond

Carryout and delivery beer and wine sales have been legal for some time in many states. Mixed drinks, not so much.

The rules addressing “to-go” cocktails (carryout and delivery are more accurate) were relaxed in several markets in response to indoor dining bans and shutdowns.

However, “loose” laws aren’t permanent changes. Some jurisdictions will eventually rescind their relaxed approach and ban to-go cocktails unless specific legislation passes.

Iowa is the first American state to legalize to-go cocktails permanently. The vote was unanimous in the Iowa House and nearly so in the Iowa Senate.

Operators in Canada or America who intend to sell to-go cocktails must be aware of their jurisdiction’s specific rules, including but not limited to packaging requirements, volume restrictions, food sale components, and transportation laws.

Canada: Delivery and Carryout Rules

Currently, KRG Hospitality operates in Alberta, British Columbia, and Ontario for the Canadian market. Therefore, we’re focusing on those provinces for this article.

Alberta

While packaged, unopened liquor may be sold for off-site consumption, pre-made cocktails may not. Food sales must accompany liquor sales.

British Columbia

The province’s approach to liquor sales for delivery and carryout are the same as Alberta’s. Operators can’t sell to-go mixed drinks.

Ontario

Restaurants and bars can sell pre-made cocktails sealed in bottles, cans, and bags. Like the other two provinces, food sales must accompany to-go liquor sales.

America: Permanent, Extended, Up for Consideration

In total, 11 states have made the move to legalize to-go mixed drinks permanently:

Arkansas
Florida
Georgia
Iowa
Kentucky
Montana
Ohio
Oklahoma
Texas
West Virginia
Wisconsin

Others have introduced bills to make to-go cocktails legal permanently:

Arizona
California
Kansas
Minnesota
Missouri
Nebraska
New Hampshire
New Jersey
New York
Oregon
Pennsylvania

A handful have extended to-go cocktails until at least 2022:

Delaware (March 2022)
Illinois (2024)
Maine (September 2022)
Virginia (July 2022)
Washington (July 2023)

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