Customer experience

Moth Margarita canned cocktails stacked on a black, wood table
by David Klemt David Klemt No Comments

Can It? NA Canned Cocktail Performance

Can It? Zero-proof Canned Cocktail Performance

by David Klemt

Moth Margarita canned cocktails stacked on a black, wood table

Veylinx, a behavioral research platform trusted by some of the world’s biggest brands, has turned their attention alcohol-free canned cocktails for a recent study.

They’ve researched demand for non-alcohol before. In fact, you can find our analysis of their 2022 study here. We’ve also covered their look into the effectiveness of Super Bowl ads.

For their latest study, consumer demand for non-alcoholic canned cocktails, Veylinx showed how seriously they take research and methodology.

Conducted between November and December of 2023, the platform created a fictional canned cocktail brand, Elixir. This was done to account for brand bias.

Further, the “brand” produced two benchmark products—alcohol and alcohol-free—and four variations. These non-alcoholic variants offered four different benefits: CBD, mood boost, zero-calorie, and natural detox.

All participants were 21 or older:

  • 21 to 25
  • 26 to 35
  • 36 to 45
  • 46 to 55
  • 56 to 65
  • Older than 65

Half of the study identified as male, and the other half as female. Most, 73 percent, were alcohol drinkers, while 27 percent were not.

For the study, Veylinx had each participant, 410 in total, bid on the six Elixir products with their own money. The bidding took place in randomized, sequential auction.

After the auction, the participants completed a questionnaire. The following is a sample question:

“What would be the main reasons for you NOT to buy non-alcoholic beverages? Please select all that apply.”

Possible answers to that question were: Limited availability, Limited variety, Flavor, and/or Other.

With methodology explained, let’s check out the results.

Canned Cocktails by the Numbers

While demand for non-alcohol canned cocktails appears to be growing, their counterparts remain most popular.

Per Veylinx, demand for Elixir’s alcoholic canned cocktails surged by 20 percent in their study. In comparison, average demand for the fictional brand’s non-alcoholic benchmark and variants canned cocktails increased by four percent.

Further, the full-proof and zero-proof CBD products garnered the most interest. The alcoholic version saw an uplift of seven percent, and CBD saw a three-percent uplift. Consumers showed the least interest in non-alcohol, zero-calorie variants.

Comparing 2022 to 2023, demand for “standard” alcohol-free canned cocktails is up 14 percent. This is followed by the CBD variant with four-percent growth in consumer demand. Next, non-alcoholic canned cocktails with a “mood-boosting” benefit, which grew by two percent. Natural detox saw an increase in demand of just one percent. And consumer demand for zero-calorie, zero-alcohol canned cocktails fell by one percent.

So, today’s consumer, at least according to research conducted by Veylinx, is most interested in alcoholic canned cocktails. Still, there’s growing interest in alcohol-free canned cocktails, something for operators to keep in mind.

Changes in Behavior

Speaking of interest in zero-proof, Veylinx uncovered some other interesting information.

In 2022, around 56 percent of consumers expressed interest reducing their alcohol consumption. That number fell by 18 percent to 38 percent in 2023. That’s still a significant percentage of consumers looking to make a big change in their lives.

Forty-one percent of consumers aged 21 to 35 are trying to reduce their alcohol intake. That number drops slightly to 36 percent for those aged 36 and older.

Veylinx also found that half of consumers would drink less alcohol if one simple change took place. All it would take is better-quality, non-alcohol versions at better prices to hit the market.

In fact, per Veylinx, consumers cited flavor and price as the two top influences on their decision to consume zero-proof canned cocktails. So far, energy drinks are the go-to for most consumers trying to drink less alcohol.

If they’re smart, brands with an interest in producing successful non-alcohol canned cocktails will work to improve costs, flavors, and health benefits, if this Veylinx study is taken to heart.

To review this study in its entirety yourself, click here. The press release for the study is below.

The Year of Canned Cocktails: Consumer Demand Increases for Non-Alcholic and Alcoholic Variations

NEW YORK, December 20, 2023 —  According to a new, year-over-year study from behavioral research platform Veylinx, consumer demand is increasing for both non-alcoholic and alcoholic canned cocktails. Using Veylinx’s proprietary methodology—which measures actual demand rather than intent— the study found that demand for non-alcoholic canned cocktails grew by 4%, while demand for alcoholic canned cocktails surged by 20% over last year.   

While interest remains strong for non-alcoholic alternatives, the percentage of people trying to reduce their alcohol consumption fell by 18%, to 38%. This decline from 2022 could lead to lower participation in abstinence events like Dry January. 

Half of respondents claimed they would drink less alcohol if better non-alcoholic alternatives were available, showing opportunity for yet more innovation in the beverage sector. Those looking to reduce their alcohol consumption are 50% more interested in non-alcoholic cocktails.

In 2022, “Never tried before,” was the top reason consumers gave for not buying canned non-alcoholic beverages. That is no longer the case in 2023, suggesting that non-alcoholic canned cocktails increased their market penetration over the last year. Flavor and price are now the primary reasons people don’t buy non-alcoholic cocktails.

“Even with fewer people trying to reduce their alcohol consumption, demand for non-alcoholic canned cocktails continues to grow,” said Veylinx founder and CEO Anouar El Haji. “Drinkers and non-drinkers alike are receptive to ready-to-drink alternatives that are better for their health and wallets.”

The study also measured demand for non-alcoholic cocktails enhanced with functional benefits like mood boosters, detoxifiers and CBD. Demand for the standard non-alcoholic version increased 14% from last year, while the enhanced variations increased only slightly and the zero-calorie version fell by 1%. This suggests consumers might be losing interest in what they perceive as marketing gimmicks. The CBD version saw a 4% increase in demand, remaining the most popular non-alcoholic variation. 

Additional key findings: 

  • The optimal price for non-alcoholic canned cocktails that maximizes revenue for brands is $12 for a four-pack

  • The brands consumers have tried the most are: 1) Mocktail Club, 2) Wild Tonic, 3) Spiritless, 4) DRY,  and 5) Hella Cocktail Co

  • 44% of people expressed support for an additional 10% tax on alcohol as a public health measure for reducing consumption 

  • For those aiming to drink less alcohol by replacing it with other beverages, energy drinks experienced the greatest increase in popularity

  • Physical Health and Cost are the two most popular reasons for reducing alcohol consumption

  • Grocery stores are the most popular place to buy non-alcoholic canned cocktails

  • Flavor options have the most influence on which brand consumers choose

  • A lower price would convince 20% of consumers to buy more non-alcoholic cocktails

To download more detailed results from the 2023 Non-Alcoholic Canned Cocktail study or for more information about Veylinx, visit https://veylinx.com/canned-cocktails. 

About the research 

Unlike typical surveys where consumers are simply asked about their preferences, Veylinx uses behavioral research to reveal how much 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 about their reasons to buy or not to buy. The research was conducted in November and December 2023 among U.S. consumers ages 21 and over. It is a follow-up to a similar study Veylinx conducted in October 2022. The 2022 study can be found at https://info.veylinx.com/non-alcoholic-cocktails

Image: Ambitious Studio* – Rick Barrett on Unsplash

Bar Nightclub Pub Brewery Menu Development Drinks Food

The roman numeral for the number 10 on a clock
by David Klemt David Klemt No Comments

2023 KRG Recap: Top 10 Articles

2023 KRG Recap: Top 10 Articles

by David Klemt

The roman numeral for the number 10 on a clock

Here it is! The final roundup of 2023, a collection of the top ten articles spanning all categories, including news, operations, and F&B.

Unlike our previous three year-end roundups, some of these articles aren’t from 2023. As an example, one of our most-read articles is from 2022, and it’s about the happiest provinces in Canada.

We’re humbled and grateful that you continue to view us as a trustworthy source of hospitality industry analysis, advice, and news. We look forward to serving you further in 2024.

Cheers!

Three hands holding up three pineapples

Raise the Bar: The 3 Ps of Hospitality

Nightlife, bar, and cocktail experts Mia Mastroianni, Phil Wills, and Art Sutley want operators to focus on what they call “the Three Ps.”

The engaging trio shared their trio of Ps recently in Las Vegas at the 2023 Bar & Restaurant Expo.

So, what are the Three Ps of hospitality? People, Place, and Product. Operators who pull the threads tighter on each of these crucial elements will be well on their way to improving operations and the guest experience.

People

Remember all the way back to a week ago when I shared Mastroianni, Wills, and Sutley’s thoughts on service versus hospitality? Consider the first P a deeper dive into that topic.

Operators need to focus on two categories of people who help their businesses succeed: their teams and their guests.

Addressing the former, the trio feels that operators are centering a disproportionate amount of their attention on guests in comparison to staff.

“We’re not lacking for people who want to work in the business and are outperforming other industries, but we’re not focusing on staff like we focus on guests,” says Wills. “Treat everyone with respect, including through the hiring process. If you don’t engage your staff, you won’t retain them. You need to show them they can grow in your business.”

According to Sutley, 89 percent of operators say that labor costs present a “significant challenge.” It follows, then, that committing to treating staff with respect and nurturing their careers isn’t just the right thing to do, it’s smart business.

Look for people with passion, those you can motivate to go above and beyond so you’re not stuck with a team full of space-fillers who are just after a paycheck, suggests Mastroianni.

Of course, operators and their teams must also focus on providing exceptional service and experiences to guests.

“Treat ever guest like a pearl in an oyster,” advises Wills. “They’re the pearl, we’re the oyster. We need to ‘protect’ them.” Anything less, cautions Sutley, and guests won’t return.

For the rest of the Three Ps, click here.

Tortilla with beans, cotija cheese and egg

Canadian Trends 2023: Technomic

Restaurant, bar, and hotel operators will find this year’s data-driven trend predictions from Technomic for 2023 insightful.

Interestingly but perhaps not surprisingly, some operators may be looking beyond North America for inspiration.

Per Technomic, Central and South American cuisines could influence menus in Canada this year. Other food trends that might take hold are “retro” health items, and all manner of pickled foods.

Of course, not every Canadian trend prediction involves F&B. According to Technomic, tech and the guest experience will play important roles.

To review last year’s Technomic predictions, click here. Now, let’s jump into Technomic’s 2023 predictions.

Guest Experience

Certainly, the guest experience should always be top of mind for operators, their leadership teams, and their staff.

In this instance, Technomic isn’t suggesting that the guest experience in general will be a trend. Obviously, with as important as it is to the success of any business, it’s a cornerstone.

Rather, Technomic predicts that guests will continue to feel the need to rein in their spending due to ricing costs and prices. However, the foodservice research firm also believes there’s still heavy desire for social interaction.

So, both those financial and social influences translate to the following: overdelivery.

Operators and their teams must ensure they position their brands well; make guests feel special every visit; and really dial in the guest experience. Specifically, Technomic suggests focusing on younger generations and menus with at least a couple specialty items that aren’t easy for a guest to replicate at home.

In other words, do whatever it takes to entice guests with memorable experience and quality menu items, and keep them coming back for more.

Follow this link to continue reading.

Server carrying two plates with one hand

Just.Safe.Food. and More Alternatives to ServSafe

ServSafe, the National Restaurant Association‘s food safety training program, isn’t the only food handler training game in town.

Certainly, the program is the most well known in our industry. However, it’s fair to say that ServSafe is closer to infamous than just ubiquitous due to a New York Times article from January.

While it’s the most recognizable of the food safety programs, it’s not the only one. Although, ServSafe’s omnipresence likely gives many the impression that it’s ServSafe or nothing.

There are, however, alternatives to ServSafe. In fact, one challenger was announced a day after the explosive New York Times article that thrust ServSafe into a spotlight the NRA probably isn’t enjoying. (After all, one result of that article was a letter from six US senators demanding answers from the NRA about ServSafe by March 3.)

At any rate, the newest alternative to ServSafe comes from One Fair Wage. The program is Just.Safe.Food. and costs just $10. (As a reminder, ServSafe costs $15.)

For that $10, Just.Safe.Food. gives an individual three attempts to pass their exam and unlimited access to training materials. Additionally, One Fair Wage (OFW) says profits they raise from the program will go toward advocating for restaurant workers.

OFW, as many in the industry know, is owned and operated by restaurant workers. Two cornerstones of the organization’s mission are increasing the minimum wage, and ending the tip credit. OFW is also attempting to convince lawmakers to stop accepting donations from the NRA.

Basically, OFW and the NRA are—and it appears always have been—at odds with with one another.

To learn more, click here.

Newfoundland and Labrador during daytime

These are the Happiest Provinces in Canada

If you’re wondering which province in Canada is the happiest, Statistics Canada has the answer—and the happiest may surprise you.

Of course, those who live and work in the happiest province won’t find it shocking. After all, they’re largely happy to be there.

However, if you expect the happiest province to be the home of Toronto, Vancouver, Montreal or Canada… Well, you’re in for a surprise.

Earlier this week we took a look at the happiest cities and states in America. Congratulations Fremont, California, and Hawaii, respectively. To learn where 181 other cities and 49 states rank, please click here.

The Happiness Survey

Or more accurately, the “life satisfaction” survey. For this survey, that’s what Statistics Canada reveals: life satisfaction.

Interestingly, the survey is very simple. Apparently, Statistics Canada simply asked participants to rate the satisfaction of living in their province, zero through ten. For this survey, zero is least satisfied, ten is most.

Ages 15 through 75 (and older) were able to participate. The survey was also broken down to gauge the satisfaction of men and women.

Before we jump into the breakdown of province satisfaction or happiness, some good news. Reviewing the Statistics Canada data, most participants across all age groups are happy. In fact, age groups 65 to 74 and 75-plus appear to be happiest.

On the other side, ages 15 to 54 had the most people who rated their life satisfaction between zero and five. Even so, just over 20 percent of survey respondents rated their satisfaction a five or less.

So, on the whole, Canadians seem satisfied or happy with their lives, regardless of the province in which they live. Personally, I find that to be great news.

Click here to keep reading.

Glendalough Distillery Wild Gin Irish gin

8 Glendalough Distillery Cocktail Recipes

Offer your guests something different for your St. Patrick’s Day promotion with Glendalough Distillery cocktail recipes.

Without a doubt, you should have plenty of the expected Irish whiskeys on hand. However, Glendalough Distillery Double Barrel, Pot Still, Wild Gin, and Rose Gin are extraordinary Irish whiskeys and gins.

Each spirit the distillery crafts honors the art of Irish distillation, a craft that stretches back centuries. What’s more, each whiskey Glendalough crafts is single malt—there are no light-bodied blends in their lineup.

To learn more, check out episode 71 of the Bar Hacks podcast with Glendalough Distillery co-founder and national brand ambassador Donal O’Gallachoir.

Sláinte!

Glendalough Distillery Double Barrel Single Malt Irish Whiskey

The Lough Inn

This highball is made with Glendalough Double Barrel, a single-grain Irish whiskey aged in ex-bourbon barrels before being finished in Oloroso sherry casks.

  • 2 oz. Glendalough Double Barrel Single Grain Irish Whiskey
  • 1 oz. Spiced honey syrup (see note)
  • 1 oz. Fresh lemon juice
  • Soda to top
  • Lemon wheel or slice to garnish
  • Mint leaf to garnish
  • 1 cup Honey for spiced honey syrup
  • 0.5 cup Water for spiced honey syrup
  • 4 Cinnamon sticks for spiced honey syrup
  • 1 pod Star anise for spiced honey syrup

Add ice to a highball glass, then add first three ingredients. Top with soda water. Garnish with lemon wheel or slice and freshly torn mint leaf.

For spiced honey syrup: Add honey, water, cinnamon sticks, and star anise to pot. Bring to a boil, then stir. Strain into container.

For more Glendalough Distillery recipes, click here.

White Russian cocktail made with Mr. Black Coffee Liqueur

7 Coffee Liqueurs You Need to Know

Whether you and your bar team are making Espresso Martinis, riffing on classics or creating something new, consider these coffee liqueurs.

National Espresso Martini Day takes place on Tuesday, March 15. Leading up to this bar holiday, the cocktail is experiencing yet another resurgence.

In fact, this cocktail more than any other seems to maintain an enviable rate of “surging back” in popularity. Maybe it’s time to just admit that it’s a modern classic people love to hate…but still order and enjoy.

Below are seven coffee liqueurs that shine in an Espresso Martini, Old Fashioned, Negroni, Irish Coffee, or any number of rich, flavorful cocktails. Cheers!

Mr. Black

Most of the reviews out there place Mr. Black at the top when it comes to coffee liqueurs. Once you’ve sipped it neat, you understand why. The coffee flavor is outstanding, and that should come as no surprise. After all, Mr. Black is crafted in Australia, a country with a rich coffee culture.

Additionally, Mr. Black occasionally releases special batches. In the past, the brand has produced Single Origin Ethiopia, Single Origin Colombia, and collaborations with WhistlePig and St. Ali Coffee Roasters. They also have a coffee amaro available.

Grind Espresso Shot

You really can’t go wrong making an Espresso Martini with an espresso liqueur. Grind Espresso Shot gives Mr. Black a run for their money in the coffee liqueur showdown.

This blend of Caribbean rum, espresso, coffee, and coffee extract that shines in just about any cocktail.

Click here for more coffee liqueurs to consider adding to your inventory.

Group of Big Game cocktails at Ocean Casino Resort

Ocean Casino Resort Offers Big Game Cocktails

Ocean Casino Resort, Atlantic City’s award-winning oceanfront casino and resort, is ready for the Big Game with four cocktails that team with the theme.

Now, by “Big Game,” we all know what I’m talking about. We know the sport, we the know the league, and we know precisely which game is under discussion.

However, due to very “enthusiastic” attorneys, we also have to talk like we’re spies or actors in a mob movie. We wouldn’t want to tempt anyone to file a lawsuit now, would we?

And I’m going to encourage you to continue following this childish way of speaking about the Big Game. When you’re promoting your Sunday, February 12 event, don’t use any trademarked terms, logos, images, etc.

Alright, the Big Game legalese is out of the way. Let’s talk themed cocktails!

Big Game Cocktail Inspiration

Midway through last year, Ocean Casino Resort showed us all their marketing prowess. When news of the Choco Taco’s demise made headlines, Ocean created a cocktail homage: the Chocotini.

To ensure the LTO could be enjoyed by most guests, the cocktail was available at four venues on the property.

Now, Ocean Casino Resort is tackling the Big Game. (Note: I’m legally required to include sports puns when writing about any major game.)

Guests have four specialty LTO cocktails from which to choose. Two representing the team from Philadelphia, two for the team in Kansas City. Each drink is available at venues throughout the casino resort, including their Topgolf Swing Suite (largest in America), Nola’s Bar & Lounge, and the Gallery Bar Book & Games.

In news that should appeal to you and your bar team, these drinks are quick to make. That’s a relief when you plan to be slammed on a particular day.

Of course, you don’t have to attempt to replicate these cocktails. They serve as excellent inspiration to motivate you and your team to come up with your own liquid homages and LTOs.

In case you’re wondering what to charge, Ocean is charging $14 each for the Brotherly Love, Hurts So Good, and Big Red cocktails. The Arrowhead carries a price tag of $15.

Click here to continue reading.

Closeup of keyboard

Can ChatGPT Write Food and Drink Menus?

After my “conversation” last month with ChatGPT about AI, I had another conversation during which I asked it to write me four menus.

Of course, I did this to prove a point. And upon reviewing the ChatGPT menus, you’ll likely reach the same conclusion.

Curious about how creative the AI-powered chatbot could be, I asked for four specific menus. As you’ll see, two are cocktail specific, one focuses on food, and one is a 20-item F&B menu for a specific event.

So, yes, ChatGPT can write food and drink menus. But there’s a caveat. I could leave you in suspense but that’s not very nice. Let’s jump in.

Write me a cocktail menu using the most popular cocktails from 2022.

Cocktail Menu

  1. Aperol Spritz – Aperol, Prosecco, and soda water, garnished with an orange slice
  2. Old Fashioned – Bourbon, sugar, bitters, and a citrus peel
  3. Margarita – Tequila, triple sec, lime juice, and salt rim
  4. Daiquiri – Rum, lime juice, and simple syrup
  5. Moscow Mule – Vodka, ginger beer, and lime juice
  6. Paloma – Tequila, grapefruit juice, lime juice, and soda water
  7. Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish
  8. Whiskey Sour – Bourbon, lemon juice, and simple syrup
  9. French 75 – Gin, Champagne, lemon juice, and simple syrup
  10. Mai Tai – Rum, orange liqueur, lime juice, and orgeat syrup

*All cocktails are served over ice, unless otherwise requested.

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

Cocktail Menu

  1. Gin and Tonic – Gin, tonic water, and a lime wedge
  2. Vodka Martini – Vodka, dry vermouth, and an olive garnish
  3. Bourbon Manhattan – Bourbon, sweet vermouth, and bitters
  4. Tequila Sunrise – Tequila, orange juice, and grenadine syrup
  5. Rum Runner – Rum, blackberry liqueur, orange juice, pineapple juice, and grenadine
  6. Whiskey Sour – Bourbon, lemon juice, and simple syrup
  7. Margarita – Tequila, triple sec, lime juice, and salt rim
  8. Daiquiri – Rum, lime juice, and simple syrup
  9. Long Island Iced Tea – Vodka, gin, rum, tequila, triple sec, lemon juice, and cola
  10. Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish

*All cocktails are served over ice, unless otherwise requested.

Click here to keep reading.

Developing a Bar Concept w/ Sensory Experiences

Once your idea has been researched and the market, location, technical, business, and financial viability of the idea has passed a series of reviews throughout a feasibility study, a concept development plan can then be started.

Remember, outside of being scalable, you want to build a concept that is sustainable, profitable, memorable, and consistent.

Bar concepts over the years have gone from being tame (or lame) or overplayed, like tiki bars or sports bars, to concepts that push the boundaries of what a bar can be. One of the best ways to build a customer base is to go off the beaten path to create a bold and fresh new bar concept.

A concept plan will focus on ‘chapters’ and visual storyboards that include an overall:

  • Concept Summary (a one page summarization similar to that of an Executive Summary)
  • Statement Overview (Value, Vision, Mission, Culture)
  • Architectural Design (characteristics, features, costs)
  • Bar/Kitchen Production (your equipment specs)
  • Entertainment & Guest Experience Summary
  • Menu Design Attributes (food & beverage)

Owning a bar is a dream for most that must be met with the right research, planning, and mind-set.

One’s market will, and must, define the concept. To be successful, you must be open to building a venue the market both wants and needs.

Concept development is giving your ‘idea’, both soul and character. A bar’s concept is the lifeline of its brand and longevity in the market. It makes your venue stand apart from the competition, and it’s ultimately your bar’s unique selling proposition.

Have you ever walked into a bar and been confused about its identity? The interior doesn’t match the beverage offerings, the social media experience doesn’t reflect the actual experience, and even the music doesn’t seem to match the vibe of the bar.

This is what happens when there isn’t a clear and detailed concept development plan in place, and it is a sure fire way to be just average at best.

Continue reading here.

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

Repeated restaurant and bar closures have, tragically, become a hallmark of 2020.

Operators have had to learn how to communicate closures to potential indoor guests, as well as delivery and takeout guests.

For most operators, the possibility of closing their doors—temporarily or otherwise—has moved well past “if” territory. At this point, it’s not even a question of when a restaurant or bar will have to close, it’s a matter of when it will happen again.

There are a few reasons a F&B business will have to close due to the Covid-19 outbreak: official mandate, reduced indoor and outdoor dining capacities, and voluntary temporary closures.

Mandated closures are, on the surface, straightforward. Government officials decree that certain types of businesses must close their doors by a specific date and time, and owners are expected to comply.

Closures induced by capacity restrictions are less straightforward. It has become woefully apparent that most lawmakers don’t understand (or don’t care) that at a certain threshold, reducing indoor and outdoor dining capacities is as good as forcing a restaurant or bar to close; the value proposition of remaining open simply isn’t there.

A voluntary temporary closure can come about because of capacity limitations, but they can also be the result of other factors. A significant workforce reduction, lack of traffic, rising costs of goods, or an internal Covid infection.

The stark reality is that the likelihood today’s operators are going to have to craft social media posts and emails announcing temporary (and possibly extended) closures is anything but slim.

Click here to keep reading.

Image: Anne Nygård on Unsplash

KRG Hospitality Start-Up Restaurant Bar Hotel Consulting Consultant Solutions Plans Services

Close-up shot of a white neon "8" sign
by David Klemt David Klemt No Comments

2023 KRG Recap: Top 8 Ops Articles

2023 KRG Recap: Top 8 Operations Articles

by David Klemt

Close-up shot of a white neon "8" sign

The third installment in our annual article roundup is a collection of our readers’ favorite operations and service articles of 2023.

Below, articles about a multitude of topics: food safety, pricing, menu programming, leadership, setting your non-negotiable standards, and much more.

If you’re looking to really dial in your operations and service for 2024, these articles are an excellent place to start for tips and inspiration.

Cheers!

Server carrying two plates with one hand

Just.Safe.Food. and More Alternatives to ServSafe

ServSafe, the National Restaurant Association‘s food safety training program, isn’t the only food handler training game in town.

Certainly, the program is the most well known in our industry. However, it’s fair to say that ServSafe is closer to infamous than just ubiquitous due to a New York Times article from January.

While it’s the most recognizable of the food safety programs, it’s not the only one. Although, ServSafe’s omnipresence likely gives many the impression that it’s ServSafe or nothing.

There are, however, alternatives to ServSafe. In fact, one challenger was announced a day after the explosive New York Times article that thrust ServSafe into a spotlight the NRA probably isn’t enjoying. (After all, one result of that article was a letter from six US senators demanding answers from the NRA about ServSafe by March 3.)

At any rate, the newest alternative to ServSafe comes from One Fair Wage. The program is Just.Safe.Food. and costs just $10. (As a reminder, ServSafe costs $15.)

For that $10, Just.Safe.Food. gives an individual three attempts to pass their exam and unlimited access to training materials. Additionally, One Fair Wage (OFW) says profits they raise from the program will go toward advocating for restaurant workers.

OFW, as many in the industry know, is owned and operated by restaurant workers. Two cornerstones of the organization’s mission are increasing the minimum wage, and ending the tip credit. OFW is also attempting to convince lawmakers to stop accepting donations from the NRA.

Basically, OFW and the NRA are—and it appears always have been—at odds with with one another.

To learn more, click here.

Three hands holding up three pineapples

Raise the Bar: The 3 Ps of Hospitality

Nightlife, bar, and cocktail experts Mia Mastroianni, Phil Wills, and Art Sutley want operators to focus on what they call “the Three Ps.”

The engaging trio shared their trio of Ps recently in Las Vegas at the 2023 Bar & Restaurant Expo.

So, what are the Three Ps of hospitality? People, Place, and Product. Operators who pull the threads tighter on each of these crucial elements will be well on their way to improving operations and the guest experience.

People

Remember all the way back to a week ago when I shared Mastroianni, Wills, and Sutley’s thoughts on service versus hospitality? Consider the first P a deeper dive into that topic.

Operators need to focus on two categories of people who help their businesses succeed: their teams and their guests.

Addressing the former, the trio feels that operators are centering a disproportionate amount of their attention on guests in comparison to staff.

“We’re not lacking for people who want to work in the business and are outperforming other industries, but we’re not focusing on staff like we focus on guests,” says Wills. “Treat everyone with respect, including through the hiring process. If you don’t engage your staff, you won’t retain them. You need to show them they can grow in your business.”

According to Sutley, 89 percent of operators say that labor costs present a “significant challenge.” It follows, then, that committing to treating staff with respect and nurturing their careers isn’t just the right thing to do, it’s smart business.

Look for people with passion, those you can motivate to go above and beyond so you’re not stuck with a team full of space-fillers who are just after a paycheck, suggests Mastroianni.

Of course, operators and their teams must also focus on providing exceptional service and experiences to guests.

“Treat ever guest like a pearl in an oyster,” advises Wills. “They’re the pearl, we’re the oyster. We need to ‘protect’ them.” Anything less, cautions Sutley, and guests won’t return.

For the rest of the Three Ps, click here.

"Be optimistic" sign on black door

5 Toxic Mindsets that Hinder the Success of Your Business

Your frame of mind matters, and if you want a team and business that’s thriving and growing, it’s time to examine your own mindset.

How you show up day to day in your business and in your life will either hinder or promote your success. Like the popular phrase goes, “It starts from the top.”

You can set the tone for the day with the energy you bring. As Anese Cavanaugh, author of the book Contagious You, states, “Whatever we put out there and whatever we take on affects our ability to influence, lead, and create the impact we want.”

A positive mindset is contagious: it can inspire, motivate, and make others feel good. A toxic mindset is equally as contagious: it can halt growth, increase unhappiness, and lower productivity.

Here’s a list of five toxic thoughts that lead to a negative mindset and can hinder success.

Blame Game

Always looking for someone else to lay the blame on when things go wrong is a surefire way to a toxic team environment. If you’re quick to blame others when things go wrong, perhaps it’s time to take a step back and examine why something went wrong in the first place.

Was there inadequate training provided? Are there no clear systems to follow? Do you have an environment that’s hostile to asking for help? Fault rarely lies in one person only; there are typically several factors in play.

A positive mindset will examine facts, look at all potential causes, and then come up with solutions. Blame never enters the picture.

Second Guessing

Not being confident in the choices you make hinders growth. Uncertainty in your decision making leads others to question or doubt your role as leader.

If you don’t have the utmost confidence in making decisions, and it’s your business, how can you expect your team to have confidence in you or the work that they do?

This doesn’t mean that you have to make snap decisions without thinking them over. Planning and deliberating over the right move to make is critical to success. But once the decision is made…it’s made. If it doesn’t work out you can then problem solve to get back on the right path.

Second guessing your decisions along the entire way is only going to slow you and your business down.

Click here to continue reading.

Several spray paint cans next to one another

Raise the Bar: Service vs. Hospitality

During the 2023 Bar & Restaurant Expo in Las Vegas, Mia Mastroianni, Art Sutley, and Phil Wills addressed what separates service from hospitality.

For the sake of those who are unfamiliar, a brief summary of each member of this informative panel. Art Sutley is a nightlife and hospitality expert recognized by Forbes, the Wall Street Journal, and Thrillist (among other publications).

Phil Wills and Mia Mastroianni should be recognizable to anyone who has watched Bar Rescue. Wills co-founded Spirits in Motion, a beverage consulting agency. He’s also a bartender’s bartender who’s passionate about hospitality. Mastroianni, equally as passionate about the art of hospitality, is a seriously talented bar professional and hospitality expert who doesn’t take herself too seriously.

It’s difficult to imagine a more qualified trio when it comes to discussing the differences between service and hospitality.

What is Service?

Before they all dove in, Sutley shared a simple but impactful take on the guest experience.

“It’s checking boxes,” said Sutley. “We want each guest to check every box, and a few extra.”

That description helps draw a line between service and hospitality. Per Sutley, Mastroianni, and Wills, service is a transaction and meeting expectations. Reinforcing this idea, Wills said, “Service is black and white; it’s simple.”

Operators and their leadership teams, after developing their steps of service, can literally or figuratively track the service transaction. Training staff—from onboarding to pre-shifts—on the steps of service and an operator’s non-negotiable standards ensures the guest experience transaction is delivered as expected.

Worryingly, Mastroianni expressed her concern that the quality of service appears to be dropping. If that’s true, however, that provides an opportunity.

Per Sutley, the industry is getting more difficult. There are more competitors out there, and guest expectations are becoming increasingly stringent. So, if Mastroianni is correct and more concepts are failing to deliver on the expected service transaction, operators who commit to building and training teams that deliver high-level service will stand out.

Keep reading here.

Two restaurant food menus

Real-world Menu Tips from Chef Brian Duffy

Call it an education session, call it a workshop, one of the best features of the Bar & Restaurant Expo is live menu feedback from Chef Brian Duffy.

This is certainly true of the 2023 Bar & Restaurant Expo. During this year’s BRE (formerly Nightclub & Bar Show, or NCB), Chef Duffy delivered well over two hours of real-world menu feedback.

To be sure, BRE educational programming is always beneficial. Attendees who take the time to plan their schedules to include education sessions will take invaluable tips back to their businesses.

However, watching in real time as Chef Duffy critiques real menus submitted by BRE attendees provides insight that will impact the guest experience and success of a restaurant or bar immediately.

When delivering his feedback, Chef Duffy is unacquainted with the menus. He’s also unfiltered. So, attendees of these sessions are provided a window to Chef Duffy’s professional opinions, on the fly, in real time.

Take, for example, this blunt statement: “If you serve tilapia in your restaurant, you suck.” Before anyone has a conniption, Chef Duffy is referring to unethically farm-raised tilapia that’s often exposed to waste.

Technical Difficulties

Due to unforeseen AV issues, Chef Duffy was unable to use the large screens in the room to review menus for 30 to 40 minutes.

Now, some speakers may be shaken when encountering such a technical difficulty. This isn’t the case for Chef Duffy. In fact, all in attendance from the start of his session were lucky enough to gain insights beyond menu design because of the AV issues.

First, we all gained some insight into Chef Duffy’s consulting process. When engaged for restaurant consultation, he watches an evening service. Next day, he’s in your kitchen at 10:00 AM. What he sees in your kitchen tells him what’s happening throughout your restaurant. By the way, if he encounters just two spelling errors on your menu, he’s done reviewing it—you need a fresh start.

Second, inventory. Chef Duffy assumes you keep eleven percent of your overall revenue on your shelves. So, if you’re generating $100,000 each month, your shelves hold $11,000 of product. When reviewing your financial situation, take a look at that number for your own restaurant or bar.

Third, executive chefs versus head chefs. Chef Duffy has been on the ground for more than 100 restaurant openings. He has interviewed countless chefs. Have you ever wondered about the difference between an executive chef and a head chef? Knowledge of the financial aspects of running a kitchen. Without it, someone’s not an executive chef—they’re a head chef. Executive chefs know (and in theory can be trusted with) finances; head chefs make sure the brigade comes to work on time.

Finally, a cost-reduction tip. When you speak with your food reps, ask about DWO items: “Discontinued When Out.” You may be able to get your hands on some great items for a fraction of the cost.

Follow this link for more tips from Chef Brian Duffy.

Person writing down notes

The Importance of Sticking to Your Standards

One crucial task for all restaurant, bar, nightclub, and hotel operators is to set the acceptable standards and commit to maintaining them.

Hospitality operations are subject to an interesting paradox. We’re all told to prepare for things to go sideways during any given shift. We’re also told that adhering to our standards of service will help us weather a storm of challenges. Oftentimes, however, the first thing to slip at the first sign of trouble is: our standards.

When a client signs on with KRG Hospitality, they are given the task of identifying their core values. There’s an exercise for this key development step; it’s part of our standards.

Your core values inform your standards (and so much more): leadership team standards; front- and back-of-house team member standards; and standards of service. Additionally, you should spell out these standards during the onboarding process, utilizing an employee manual—which new hires must sign and date—and practical training.

It’s absolutely crucial that you and your team commit to your standards fully. They’re inviolable, what both KRG president Doug Radkey and Chef Brian Duffy call your “non-negotiables” during speaking engagements and when working with clients.

Are people going to make mistakes, including you? Yes. On occasion, a standard is going to slip. The key is understanding that maintaining standards helps reduce these occasions; panicking and allowing them to slip just drops us deeper into quicksand.

Someone on the team is going to miss a service step. Something will occur during a shift that’s not up to standards. What’s important in those moments is the ability for the team to recognize the slip quickly and correct course immediately.

Setting Standards

There are different ways for operators to select their standards. The example I provide at the top of this article is one approach KRG implements.

Michael Tipps, co-founder of Invictus Hospitality and friend of KRG Hospitality, has an intriguing approach of his own. He shared this during the 2023 Bar & Restaurant Expo in Las Vegas.

“Standards separate operators and their teams,” says Tipps. While he doesn’t encourage operators to look at every other operator in their market as competition, he does advocate for differentiation.

Tipps shared a three-step approach to standards. (Step two, by the way, is the one I find intriguing.)

  1. Create your standards. Again, there are different approaches.
  2. Pick your committee. I’m going to explain this further.
  3. Set standards against the grandest vision of your venue.

So, what does it mean to “pick your committee”? Well, it means surrounding yourself with people you respect…real or imagined. As Tipps explained during BRE, he has people in his life that he considers his committee. The real-life members of this committee are a sounding board for any number of ideas, questions, challenges, and even mistakes.

And yes, his committee also includes “imaginary” members, such as Michael Jordan and Phil Jackson. These are people that he doesn’t know personally but are known to have incredibly high standards. They’re high achievers and, of course, many have biographies and we can know their standards. Tipps has “asked” these committee members, “How should I handle X?”

This creative approach isn’t for everyone but every operator should at least give it a shot. When we step that far out of our comfort zones the results can be incredible.

Gain more insights via this link.

Chess pieces on chess board in grayscale

Do You Empower Your Team to Make Decisions?

Empowerment is about so much more than trusting someone to follow clearly defined rules; you must learn to trust your team’s judgement.

Yes, even when things don’t go according to plan. If you’re only training your team on the “rules,” you’re doing a disservice to them and yourself. So, let’s have a little chat about empowerment. What does it mean to you? What are your expectations of your team when you tell them they are empowered?

Looking back throughout your own work history, have you ever had a job where your boss told you that you were empowered to make decisions, but you didn’t actually know what to do or how to make decisions? Did anyone ever explain “the how” of decision making to you?

Now, look at yourself as a leader. Have you ever had employees that you’ve told are empowered to make decisions, yet they get a manager every time someone needs something out of the ordinary? Are you explaining to your staff “the how” of decision making, along with your expectations?

It’s frustrating to feel like the house might fall down when you’re not in it. That’s no way to operate a business. We all want our staff to be able to make educated decisions when we’re not around. We shouldn’t have to hold their hands and be part of every single decision.

Still, there are times when, left to their own devices, a team member doesn’t make the decision you’d want them to make. This makes owners and leadership team members feel as though they must be at work every second.

So, how do you move away from micromanagement and learn to trust your team’s decision making?

Leverage Teachable Moments

You’ll never be able to give an example of every possible situation that may arise. Therefore, you’ll never be able to train your team on everything that they’ll encounter on any shift.

How do you tell someone how to handle situations when you’re not around? You don’t, and I don’t suggest you even try. Instead, you need to instill a sense of empowerment in your team.

However, “empowerment” is just a word if you’re not educating your team. You need to teach staff how to make good decisions. And how do you even start to do that? Cash in on all the teachable moments that happen throughout the day!

Once upon a time we were all new to this industry. I’m sure you have a few stories of some mistakes you’ve made along the way. I know I certainly do.

Think back to those situations. Did someone explain to you why you made a mistake? More importantly, did they then help you understand what to do next time? Or did they just get mad and make you feel like a failure?

I’ve had the privilege of working with some amazing people over the years. There are several people that really put effort into teaching me. The different things they taught me helped me to understand the ins and outs of decision making, even in situations I know very little about.

Keep reading here.

White "Reserved" sign in wooden block on table

Why You Need to Use Direct Bookings

A new report from guest retention platform SevenRooms shows that like delivery, guests prefer to support restaurants directly when it comes to reservations.

Similar to their awareness of third-party delivery platform fees, today’s guest appears to be aware that third-party marketplaces cost restaurants and bars too much.

Let’s consider the guest discovery journey. According to their 2023 Dining Discovery & Booking Report, SevenRooms says most guests discover new restaurants via word of mouth. In fact, 61 percent of people rely on family, friends, and co-workers to find new restaurants. A third of diners use Google (33 percent), and nearly as many use social media (29 percent).

So, what role do third-party marketplaces play in restaurant and bar discovery? Per SevenRooms, not even ten percent of people who discover new places to grab a bite or a drink use such platforms.

Their research shows that just nine percent of diners use OpenTable to find new restaurants. However, that’s three times the number of diners that Resy (three percent) is seeing use their platform for discovery.

Okay, so what does this mean to you, the operator? It means that you should be leveraging a direct-booking feature. Guests are telling us how they want to experience restaurants and bars. They’ve let us know they prefer direct delivery. Now, they’re letting us know they prefer direct booking.

In other words, give them what they want: user-friendly ways to support your business. Make it easy to find you on social. Ensure your website is functional and easy to navigate. And give delivery and booking buttons prime real estate on your website so guests can find them quickly.

I also recommend communicating that you offer direct bookings, and thanking those who use that functionality for supporting your business directly. This can, of course, be done via automated marketing emails.

Click here to continue reading.

Image: Maximalfocus on Unsplash

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Gold number 10 on a teal or aqua background
by David Klemt David Klemt No Comments

2023 KRG Recap: Top Bar Hacks Episodes

2023 KRG Recap: Top Bar Hacks Episodes

by David Klemt

Gold number 10 on a teal or aqua background

For your listening pleasure and convenience we’ve rounded up the top ten Bar Hacks episodes of 2023, also known as season four of the podcast.

Every year we reflect on the caliber of the guests who take time out of their busy lives to come onto the podcast. And every year we’re grateful for the honor of helping to share their stories and insights.

Below are the top ten Bar Hacks episodes of 2023. We’re presenting them in numeric order—no playing favorites here! To make it easy to enjoy these conversations, we’ve embedded the Spotify version of each episode.

And if you’re curious, these ten only just edge out the rest of this year’s episodes. We thank our loyal listeners for giving all of our guests and episodes a listen.

Cheers!

Episode 89 with Doug Radkey

Doug Radkey, co-founder and president of KRG Hospitality, stops by the Bar Hacks podcast. Not only is Doug the co-founder and president of KRG, he’s also the author of the book Bar Hacks and its followup Hacking the New Normal, and the creator of the Bar Hacks podcast.

During his visit, Doug and David talk about their expectations for 2023, what KRG is working on in the new year so far, the importance of technology in hospitality, and dynamic pricing versus dynamic menus. Doug also shares his thoughts on what operators can work on starting today to position themselves for success in 2023 and beyond.

Episode 90 with Mark Sansom

Mark Sansom, content director for the World’s 50 Best Bars, drops by the Bar Hacks podcast to share some big news. After years of dialing in the process and waiting out the pandemic, the World’s 50 Best Hotels will be revealed at a ceremony in September 2023! If you haven’t watched or attended a World’s 50 Best Bars ceremony, they truly take great pains to ensure they’re the Oscars of bar awards. So, we expect the World’s 50 Best Hotel awards ceremony to blow us out of the water.

This list and its accompanying specialty awards completes the hospitality and travel puzzle. Restaurants and bars, after all, are inextricably intertwined with hotels and resorts. Mark shares the details of the World’s 50 Best Hotels Academy Chairs, voting panel, and voting process in this episode. As a bonus, you’ll also get to hear host David Klemt try and fail to say “inaugural awards” without any issue!

Episode 93 with Adrián Michalčík

In September 2022, Adrián Michalčík earned the title of Diageo World Class Global Bartender of the Year. Colloquially, this achievement is known as the Best Bartender in the World. That’s a bold and weighty mantle but as you’ll learn during this conversation, Adrián is humble and focused on his team and guests.

Adrián is the director of mixology at the award-winning Pier 42 inside the Amerikalinjen hotel in Oslo, Norway. The bar has been recognized by the World’s 50 Best and has won Best Bar of Norway twice. In addition to taking home the title of 2022 Diageo World Class Global Bartender of the Year, Adrián has won several bartending competitions throughout the years.

He popped by the Bar Hacks podcast to chat with host David Klemt about his bartender journey. Adrián has worked in several types of bars and each helped him develop the skills that allowed him to elevate his skills behind the bar. Mentors, his endless quest for knowledge, his passion for hosting others, and his focus on empathy have informed his approach to team building, delivering top-level hospitality, and tapping into his creativity to develop Pier 42’s cocktail menus.

Adrián shares the three pillars he believes great bars are built upon, what he looks for in bar team members, transforming people from guests to friends, the importance of storytelling, and much more.

Episode 95 with Bob Peters

We know it’s been a few weeks. Between client projects and trade shows we had to take a little break. But we’re back!

And to make our absence up to you, our loyal listeners, we’re bringing you a great chat with an awesome guest. Bob Peters returns to the Bar Hacks podcast for episode 95!

Bob has big news to share, and you can hear in his voice how excited he is to share it with everyone. He’s taking on the perfect role. In fact, he calls it his dream job during this episode. Cocktails and cuisine are about to get even better in North Carolina and South Carolina…

But it doesn’t stop there! Bob also shares his approach to bar training to make sure everyone is engaged; his assessment of the Charlotte dining and drinking scene; a simple step all restaurants and bars can take today to improve operations, team engagement, and the guest experience; a very cool project he’s taking on; and more.

Episode 97 with Dragos Axinte

Dragos Axinte, the founder of Novo Fogo Organic Cachaça, returns to the Bar Hacks podcast. Axinte and Novo Fogo have been very busy since, his first appearance on the pod.

On this episode, Axinte shares the details and stories behind three important Novo Fogo initiatives and partnerships: Tree-keeper, with Seattle Sounders goalkeeper Stefan Frei, the Un-endangered Forest, and the brand’s new Chief Alegrias Officers (ChAOs), Sophie Hawley-Weld and Tucker Halpern, also known as SOFI TUKKER.

The two also discuss Axinte’s approach to partnerships—a philosophy that will serve operators and entrepreneurs very well—as well as distillers “discovering” amburana wood finishing. And, of course, Axinte shares product news and insights. If you’re headed to Tales of the Cocktail this year, you’re in for some incredible news. This conversation spans several topics and Axinte always imparts wisdom when he speaks in approachable and helpful ways.

Episode 99 with Michele Mariotti

Bartender Michele Mariotti leads an illustrious career. He has worked behind the bars at some of the best hotels around the world, including the Savoy in London and Mandarin Oriental in Singapore.

As of 2020, Michele has held the title head of bars at the Gleneagles Hotel in Perthshire, Scotland. In this role, he heads the programs at 11 F&B venues on the property, overseeing dozens of bar professionals.

On this episode, Michele and Bar Hacks podcast host David Klemt talk about mentorship, interviewing potential bartenders, menu development, using a flavor map when assigning new cocktail builds to bar team members, finding inspiration, interesting hotel guests, bespoke glassware, investing in platforms and programs that boost staff retention, and more.

Episode 101 with Ryan Chetiyawardana a.k.a. Mr. Lyan

Ryan Chetiyawardana, also known as Mr. Lyan, is one of the bar world’s true visionaries. He opened his first bar, White Lyan, in 2013 and the venue immediately achieved its intended purpose. Beyond being an award-winning bar and one of London’s best places to grab a drink, White Lyan started a much-needed conversation about sustainability in the industry.

Dandelyan, Lyaness, Super Lyan, Cub, and Silver Lyan would follow shortly after, making an even bigger splash not only in London but also Amsterdam and Washington, DC. All Mr. Lyan venues, while showcasing incredible innovation, accomplish something just as important: each bar is a place people to want to spend their time and money, and where professionals want to work.

During this fantastic conversation, Ryan shares insights into the menu programming processes at each venue; discusses seasonality; provides a look into hiring and engaging each team; the reissue of his book and his foray into the RTD cocktail space; and much more. Cheers!

Episode 102 with Jordan Bushell

Thank you for being patient during our summer hiatus. We’re back with a great conversation with an awesome guest.

Global Hennessy brand ambassador Jordan Bushell returns to the Bar Hacks podcast. While Jordan may know people with more Cognac knowledge, we don’t know anyone who knows more about this spirit category. More importantly, he’s as generous with his time as he is knowledgeable about Cognac. If you have a question about the spirit of Hennessy you can reach out to him and he’ll answer you.

On this episode of Bar Hacks, Jordan talks about special Hennessy releases, initiatives, collaborations, and what sets the maison apart from others in the Cognac region of France. He also talks about how operators can introduce guests to Cognac and Hennessy, including paying attention how they price their menus. Cheers!

Episode 104 with Simone Caporale

Simone Caporale, an internationally renowned bartender and operator, swings by the Bar Hacks podcast to talk spirits, branding, the guest experience, and operations.

Noticing a gap in the industry and seeing a way to lend his expertise to help grow spirits brands, Simone and Luca Missagli founded Cocktail Concierge, a brand-building agency focusing on craft spirits brands. One of the most recent brands Cocktail Concierge has helped introduce to the world is Amaro Santoni.

Of course, Simone is also one of forces behind SIPS Drinkery House, number three on the World’s 50 Best Bars list, and the World’s Best Bar according to Tales of the Cocktail. Simone shares his thoughts on what he thinks makes SIPS so successful, why he views service as a privilege, three tips operators can implement today to plant the seeds for long-term success, and more!

Episode 107 with Anne Becerra

When it comes to curating a beer program, creating a complementary cocktail program, and delivering an incredible beer program, we can’t think of anyone better than Anne Becerra. And lucky for us, she stopped by the Bar Hacks podcast!

Anne is the first female Certified Cicerone in New York City and has been working in beer for more than a decade. More importantly, however, she’s as passionate as she is educated about beer. Anne’s also passionate about hospitality, which comes across in this conversation. Truly, she loves hospitality, the beverage world, and how the two pair to make people feel amazing.

On this episode Anne talks introducing guests to beer; serving beer aficionados, beer neophytes, and the beer wary; how to make guests feel comfortable in a beer-centric concept; what she’s excited about in the beer world; tips for operators who want to succeed with a beer-forward venue; and much, much more. Cheers!

Image: Miguel Á. Padriñán on Pexels

KRG Hospitality. Bar Consultant. Nightclub. Lounge. Mixology. Cocktails.

A veritable sea of pickle chips
by David Klemt David Klemt No Comments

Grubhub Reveals 2023 Order Trends

Grubhub Reveals 2023 Order Trends

by David Klemt

A veritable sea of pickle chips

Just under the wire Grubhub releases their annual end-of-year report, revealing their customers’ top ordering trends of 2023.

Uber Eats and DoorDash unveiled their reports at the end of October and start of November, respectively.

To revisit 2022 for a moment, the top food item ordered via Grubhub was the burrito. So, the unofficial theme of last year’s annual report was warmth and comfort wrapped in layers.

I’m providing that context because this year’s report also comes with a theme. This year, it’s “doing it for the vibes.” For Grubhub, this means that users of the service broke out of their comfort zones to try new F&B items.

Providing an example, one of the standout trends for 2023 is heat. As in, Grubhub users added spice to quite a lot of orders, as you’ll see below.

Click here to review Grubhub’s top 2022 food orders, and here for their 2022 beverage orders. To review this year’s Grubhub report in its entirety, click here.

Now, let’s take a look at a number of this year’s ordering trends.

Soft Drinks & Coffee

Usually, I start with food items when reviewing these reports. Well, once you become predictable, you become beatable. So, I’m going to shake things up and begin with beverages.

According to Grubhub, a TikTok trend—#dietcokebreak—is responsible for the growth of Diet Coke on the platform. In fact, the third-party delivery service says that in-office orders of Diet Coke grew by 17 percent. No surprise, then, that the soda grabbed the top spot in 2023.

Top 5 Sodas

  • Diet Coke
  • Coke
  • Sprite
  • Dr. Pepper
  • Ginger Ale

Next, coffee orders. Per this year’s Grubhub report, people weren’t shy about ordering coffee outside of the breakfast and lunch dayparts.

According to their data, more than 10 million coffee orders were placed after 5:00 PM.

Top 5 Coffee Orders

  • Iced Coffee
  • Caramel Frappe
  • Mocha Frappe
  • Cappuccino
  • Hot Coffee

Food & Flavors

Here’s an interesting revelation: more than 600,000 Grubhub users chose to order salads with a side of French fries.

In fact, the French fry is the top ordered side in 2023 on the platform. So, Grubhub ranked fries by style.

Top 5 French Fry Styles

  • Classic cut
  • Waffle fries
  • Cheese fries
  • Sweet potato fries
  • Curly fries

Hey, let’s reignite the pineapple on pizza debate. According to Grubhub’s year-end report, pineapple as a pizza topping grew by 33 percent in comparison to 2022.

However, Hawaiian pizza has some more growth to do if it wants to take the number one spot.

Top 5 Pizza Styles

  • Cheese Pizza
  • Margherita Pizza
  • Pepperoni Pizza
  • Buffalo Chicken Pizza
  • Hawaiian Pizza

Finally, top flavors. In short, heat is a hit.

Grubhub users added spice to a staggering 53 million orders this year. For further context, sriracha was added to more than 91,000 orders.

And when it comes to chicken wings, Buffalo was the dominant style. I find it interesting, though, that no style of wing made the top five for this category.

Top 5 Spicy Items

  • Spicy potato soft tacos
  • Spicy chicken sandwich
  • Spicy tuna roll
  • Hot and sour soup
  • Drunken noodles

Bringing this report to a close, the item with the most growth. Pickles grew by 89 percent in 2023, accounting for 6.9 million orders.

So, I guess make sure your pickles, French fries, cheese pizzas, and salads are on point as we head into the New Year.

Image: Nathan Dumlao on Unsplash

Gloved chef's hand pressing down on cheeseburger bun
by David Klemt David Klemt No Comments

Transactional vs. Experiential Service

Is Your Business Transactional or Experiential?

by David Klemt

Gloved chef's hand pressing down on cheeseburger bun

When you consider your restaurant or bar honestly, is the service you and your team are providing to guests transactional or experiential?

It’s an important distinction, and it applies to every restaurant and bar category. Whether operating a QSR or FSR, today’s guests want more for more their money.

Further, they expect more just for choosing to leave their homes. A recent report from CWB Franchise Finance, in partnership with Circana and fsStrategy, indicates strongly that experiential concepts are on the path to weathering economic challenges and achieving long-term success.

Now, to be clear, of course all businesses are transactional. In that regard, restaurants and bars are clearly no different from other businesses.

Guests come in, they place orders, and they pay for the goods they receive. Transactional, right?

However, restaurants and bars are in a position to deliver memorable experiences.

Sure, for some people those memories are fleeting. There are those who are always seeking the next thing. But operators who become known for providing more than just menu items will remain on the radar of even the most fickle guest.

When a restaurant or bar delivers goods plus phenomenal services, when the guest experience involves more than just ordering and paying, it becomes experiential.

Think back to the times this year you’ve popped into a QSR or fast-casual restaurant. Can you remember much about the experience? If yes, fantastic—that operator understands the power of an experiential business model. Should the answer be no, that operator sees value only in being transactional.

Which are you happy to return to in the future?

Experience is King

I’m going to assume you’re much happier to return to an experiential concept than a strictly transactional one. And if that’s a correct assumption, you should apply that to your own restaurant or bar.

According to studies Circana has conducted over the past couple of years, Canadian consumers are reacting to economic uncertainty and financial instability as one would expect: cutting back on discretionary spending.

Generally speaking, that means reducing their spending at restaurants and bars. However, there’s a bit of good news tucked into those Circana studies.

Per Circana, half of Canadians plan to increase spending on something in particular: experiences. Further, 91 percent of Canadians say they’ve spent money at experiential restaurants recently.

“A restaurant visit isn’t necessarily just about nourishment, but instead is a platform for socializing, entertainment and exploration,” reads the joint CWB, Circana, and fsStrategy report.

Importantly, an operator need not go to extremes to deliver an experience. Something as simple as creating an LTO around craveable drinks can pay huge dividends. For proof of that, simply look at McDonald’s in the US and the hype that surrounded the berry-flavored Grimace Shake.

Operators throughout Canada and around the globe need to understand how impactful being experiential can be.

Takeaway

It’s true that operators are competing against one another. However, it goes deeper than that now.

Operators are also battling convenience and comfort. Between working from home, pandemic-induced isolation, and technology, people are used to staying in and ordering whatever they want.

So, not only are operators faced with the challenge of standing out from one another, they’re up against the phones in people’s pockets.

For many people, choosing to leave home to dine and drink in person is a big deal. To some, restaurants and bars are about celebrating special occasions or socializing. For others, the motivation is as simple as the need to finally get out of their home.

It’s imperative, therefore, for operators to be more than transactional. Being experiential, whether the experience is small but impactful or over the top and unforgettable, is the way forward.

Restaurants and bars that deliver a memorable experience are better positioned to remain top of mind for a guest’s future in-person visits, delivery and takeout orders, and large-party special events. Don’t think of being experiential just in terms of nailing each visit, think of elevating the guest experience to capture future business.

A focus on the experiential builds loyalty from existing guests, and it encourages those guests to become ambassadors of your brand. Ask what you can do with your menu, team, and space today to become more experiential than transactional.

Image: Thiago Miranda on Pexels

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Booth seating inside a restaurant or bar
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SevenRooms Unveils 3 Powerful New Tools

SevenRooms Unveils Three Powerful New Tools

by David Klemt

Booth seating inside a restaurant or bar

SevenRooms clients will have access to three new tools that will further enhance guest engagement, increase loyalty, and boost relationships with VIPs.

Each of these consumer-facing solutions is launching in time for the holiday season.

First up, 7R Priority Alerts. This tool helps operators manage their waitlists and generate revenue. We all know that even restaurants that require reservation fees end up with no-shows. Some platforms are capable of attempting to fill those available reservation slots. However, there’s not normally much control over who receives availability alerts.

Now, operators will have the power to target specific guests through automated reservation notifications. As 7R explains this tool, operators will be able to identify, label, and reward their most-valuable guests. These guests will feel like VIPs, increasing their loyalty, visits, and spends.

Then there’s Private Line. This is my favorite of the three new tools. Operators who implement this tool will be able to share an exclusive messaging line. So, a VIP such as a big spender, frequent diner, a member of the press, or an influencer can reach out to the team directly.

With Private Line, a VIP can inquire about a last-second reservation or make a special request. Again, this is the type of feature that increases loyalty and visit frequency.

Most people find new restaurants through friend, family, or coworker referrals. That got the 7R team thinking: How can restaurants reward people who refer new guests?

Enter: Word-of-Mouth Referrals, the third new tool on this list.

Pushed to guests via automated email marketing campaigns and post-visit surveys, a custom referral link is created for every diner. The guests then share that link, new guests make reservations, and the cycle continues. Operators, of course, reward guests for these referrals through any number of means, such as redeemable loyalty program points, comped F&B items, etc.

To learn more, please read the 7R press release about Priority Alerts, Private Line, and Word-of-Mouth Referrals below.

NEW GUEST-FACING SEVENROOMS FEATURES MAKE IT EASIER FOR OPERATORS TO REWARD LOYAL GUESTS AND PERSONALIZE COMMUNICATION

Priority Alerts, Private Line, and Word-of-Mouth Referrals redefine guest engagement and communication between restaurants and their most important guests

NEW YORK – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced the launch of Priority Alerts, Private Line, and Word-of-Mouth Referrals, three new consumer-facing features that help operators connect with and reward their most loyal guests. With guests expecting more from their dining experiences than ever before, these solutions were purpose-built to solve real pain points for hospitality operators. These include alerting a specific diner about reservation availability, providing new ways for guests to get in touch and making it easier for guests to recommend their favorite restaurants to friends and family.

Priority Alerts helps operators control who they send automated reservation availability notifications to so they can prioritize their most valuable guests. In comparison to other reservation notification systems, restaurants choose who receives a Priority Alert first, not just deciding between a blast to their entire waitlist or to an exclusive subset of credit card holders. Instead, they can prioritize the guests that matter most to their business – whether that’s a VIP, loyalty member, frequent or recent diner, local, high spender, or someone else. This helps restaurants reward their most valuable guests to get them through their doors more often.

Private Line was created to give important guests an easier, faster way to get in touch with their favorite restaurants. With Private Line, restaurants can now offer their high-value guests – like VIPs, press, frequent diners and top spenders – an exclusive messaging line that can be used to instantly get in touch with their team. Whether a guest is looking for a last-minute reservation, has a special request, needs to add a friend to a booking or another ask, restaurants no longer miss out on opportunities to wow the guests that matter most. All conversations are centralized within the SevenRooms mobile app, making it easy for staff to book a table, add in requests or make other changes with just a few clicks.

Word-of-Mouth Referrals, the third consumer-facing feature launching with our fall release, gives restaurants the ability to motivate, track and reward loyal guests for referring new diners. According to recent data, 61 percent of diners discover new restaurants from friends, family and co-workers. Yet, without an easy way to capture this untapped demand, restaurants have historically left dollars on the table. Word-of-Mouth Referrals automatically creates personal referral links for every diner – shared through post-meal surveys and automated email campaigns – making it simple for guests to share with their networks and be rewarded with perks they’ll want to earn and use. Restaurants can tap into this high-value marketing channel for their business, rewarding loyalty and ensuring exceptional experiences for newcomers and regulars that translate into more sales and profits.

“At SevenRooms, our focus from day one has been on building innovations that help operators increase profitability, drive sales and improve the experiences of their guests. These three new features, all integrated into the SevenRooms platform, give operators new ways to connect and communicate with their guests – helping them evolve to meet the needs of guests who know what they want, how they want it, when they want it,” said Angela DeFranco, VP of Product at SevenRooms. “In an increasingly competitive landscape where consumers have more choice than ever before in where they choose to take their business, we’re dedicated to finding new ways for restaurants to connect and market more effectively to their guests with tools that not only make them more money, but help them execute on experiences that guests remember and recommend. Restaurant marketing is no longer one-size-fits-all, and we are redefining the role that technology can play in creating truly personalized guest engagement and marketing touchpoints at every stage of the guest journey.”

“The plan was to always move to SevenRooms because the technology was far superior, the potential for integration with our point of sale system was a lot stronger and owning the data was a huge deal,” said Kim McDiarmid, Partner at Liquid and Larder. “SevenRooms’ Priority Alerts has been a dream for us. Compared to our previous platform, it’s a lot more customizable and fully automated so it does the heavy lifting for us. We’re going to use it to give priority to guests who match criteria such as those who dine with us regularly, and with that, it will work even harder for us.”

For more details on SevenRooms’ newest innovations, please visit sevenrooms.com/new.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, José Andrés Group, Union Square Hospitality Group, Australian Venue Company, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Carson Masterson on Unsplash

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Aerial view of Chicago skyline and Lake Michigan coastline
by David Klemt David Klemt No Comments

Indies: Which Cities Lead the Way?

Independents: Which Cities Lead the Way?

by David Klemt

Aerial view of Chicago skyline and Lake Michigan coastline

The majority of the top ten indie restaurants on the Restaurant Business Top 100 Independents ranking are in two American cities.

Those two cities are Miami Beach, Florida, and Chicago, Illinois. While Miami Beach claims two spots among the top three, Chicago has the most restaurants in the top ten. However, the top three indies are all in Florida, with number two being the Boathouse in Orlando.

So, Florida and Illinois are home to nearly the entire top ten of Restaurant Business’ Top 100 Independents. That’s impressive.

What’s even more impressive is the combined annual sales figure of the top ten: $333.4 million. Now, let’s separate Miami Beach. The three indies in the Florida city generated nearly $114 million themselves. Chicago’s four indies among the top ten generated $118 million.

Taken together, the top 100 indies generated $1.95 billion.

All told, 14 of the top 100 indies as ranked by Restaurant Business are in Chicago. Five are in Miami Beach, and five are in Miami. Before I move on, no, Miami Beach and Miami aren’t the same city; they’re entirely separate municipalities. In total, 16 restaurants on this list are in Florida.

New York boasts 15 restaurants on the list. Four are in San Francisco, and just two are in Los Angeles. However, California claims 15 restaurants in total.

However, as you’ll see below, this Restaurant Business list consists of more than just the usual big cities.

Restaurant Business Top 100 Independents: The Top Ten

Below, the top ten independent restaurants, per Restaurant Business.

  1. Joe’s Stone Crab Restaurant (Miami Beach, Florida)
  2. The Boathouse (Orlando, Florida)
  3. Komodo Miami (Miami Beach, Florida)
  4. Maple & Ash Chicago (Chicago, Illinois)
  5. Mila (Miami Beach, Florida)
  6. Sierra Mar (Big Sur, California)
  7. Gibsons Bar & Steakhouse (Chicago, Illinois)
  8. Gibsons Italia (Chicago, Illinois)
  9. Alexxa’s (Las Vegas, Nevada)
  10. Alinea (Chicago, Illinois)

Alinea commands the highest average check among the top ten, at $650. The most reasonable is the Boathouse, averaging $45.

Interestingly—and perhaps logically—these two restaurants find themselves in the inverse when it comes to annual meals served. The Boathouse serves the most: just over one million. And Alinea, among the top ten indies, serves the least: nearly 45,700.

Notably, when we move on to numbers 11 to 20, Las Vegas, Miami, and New York account for six restaurants.

However, it’s also notable that it’s not just the usual big cities with restaurants on this list. Smaller cities, such as Frankenmuth in Michigan, are home to some of America’s top-performing independent restaurants.

For some context, Frankenmuth has a population of less than 5,200 people. However, Michigan’s “Little Bavaria” draws three million tourists per year. So, it’s no surprise that Zehnder’s Restaurant generates more than $19 million in annual sales.

Restaurant Business Top 100 Independents: The Bottom Ten

Just for fun, let’s take a look at the bottom ten on the Restaurant Business list.

  1. Siena Tavern (Chicago, Illinois)
  2. Fleet Landing Restaurant & Bar (Charleston, South Carolina)
  3. Electric Lemon NY (New York, New York)
  4. Bar Siena (Chicago, Illinois)
  5. El Vez (Philadelphia, Pennsylvania)
  6. Mi Vida (Washington, DC)
  7. Scoma’s Restaurant (San Francisco, California)
  8. Mexican Sugar (Las Colinas, Texas)
  9. The Shed Barbecue & Blues Joint (Ocean Springs, Mississippi)
  10. Chef Adrianne’s Vineyard Restaurant and Bar (Miami, Florida)

Adding context, these ten restaurants have generated $114.6 million in annual sales. That’s roughly the same amount of annual sales as the three restaurants in Miami Beach in the top ten.

Each of the “bottom” ten has annual sales ranging from $11.2 million to $11.9 million.

Takeaway

We all know the following axiom: “Location, location, location.”

It’s tempting to assume this means a business must be in a major city. That’s a woeful oversimplification. Myriad considerations must be made when looking at a market, whether the population is in the hundreds or millions. Assuming a concept will drive traffic and generate millions of dollars solely because it’s in a major city is foolish.

Let’s take another look at Zehnder’s in Frankenmuth. The restaurant, number 47 on the list, generated $19.2 million in annual sales. Moreover, it’s in a town with a population under 5,200.

Number 46 generated $19.3 million and is in (on?) Waimea in Hawaii. Number 48 boasted annual sales of $19 million and is in a city with a population of almost 2.7 million: Chicago.

Clearly, tourism a key contributing factor to the success of Zehnder’s. Not population, not the demographics of the permanent residents, not big-city status.

So, what about check average? Alinea, number ten, has the highest at $650 and generated $28.3 million in sales. However, the Spot, number 85, has an average check of $18 and generated $12.3 million.

The success of any restaurant, bar, nightlife or eatertainment concept doesn’t come down to a single element. What sets a concept apart is a deep understanding of a specific market, the surrounding markets, “sister” sites and competitors, guest desires and expectations, and so much more.

How does an operator come to understand their operation and their market? A feasibility study to start. Then comes a thorough, coherent concept plan and a complete business plan, and an obsession with data.

Operators who put in the work to attain strategic clarity have the potential to earn their way onto the Top 100 Independents list.

Image: Cameron Casey on Pexels

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by David Klemt David Klemt No Comments

Taco Bell Leveraging Subscriptions & LTOs

Taco Bell Leveraging Subscriptions & LTOs

by David Klemt

Taco Bell Grilled Cheese Nacho Fries

Not for the first time, Taco Bell is showing the industry the power of offering fan-favorite limited-time offers and leveraging subscriptions.

These days, everything seems to be subscription-based. We stream shows and movies via subscriptions. We can have food, clothing, gadgets, collectibles, and knick-knacks delivered to us by subcription.

Car features like heated seats, remote engine start, and self-driving? Subscriptions. Want to use software we used to buy once and install? Now we’re paying monthly to use it (or up front for a “discounted” yearly fee).

So, why should people find it odd to subscribe to one of their favorite restaurants? If the value is there for a consumer it’s no different than paying a monthly fee for other products and services to which they subscribe.

Clearly, Taco Bell has an acute understanding of people’s comfort with subscriptions. For many consumers, they’re the norm, just part of their daily routine.

As evidence, I introduce Exibit A, the Taco Lover’s Pass.

What makes this subscription noteworthy is the fact that it’s only a few years old, and it’s not even a permanent subscription. As Taco Bell Rewards members know all too well, only they can cop a Taco Lover’s Pass, and it only comes available every so often.

Most times, members have just one day to grab a pass. However, people had two whole days to decide the last time it became available.

And now, Exhibit B, the Nacho Fries Lover’s Pass.

An LTO Subscription and Item

Look, tens of millions of people love tacos. So, it’s logical that the Taco Lover’s Pass is so successful.

And if the past several years have shown us anything, millions of people also love Nacho Fries. The LTO menu item first appeared in Taco Bell restaurants in 2018. A few years later, in 2021, the Taco Lover’s Pass was tested in Arizona.

Why wouldn’t we eventually see a Nacho Fries Lover’s Pass, given the hype that follows every reintroduction of this popular item? Taco Bell has mastered the art of the LTO and the subscription. More specifically, they’ve mastered the recurring subscription. Remember, their passes aren’t permanent offerings.

Further, the iconic QSR also understands the power of the “drop.” At this point, it seems as though Taco Bell has noticed the rabid stir a limited-edition shoe or clothing drop can create for the fashion industry, studied it, and adapted it to foodservice.

With that said, the last Taco Lover’s Pass was accompanied by a menu item drop: the Toasted Breakfast Taco. If you think the Nacho Fries Lover’s Pass also ushered in an LTO, you’re correct.

The first-ever Nacho Fries Lover’s Pass comes along with the limited-time-only offer of Grilled Cheese Nacho Fries.

Take the Nacho Fries, slather them in a sauce of melted mozzarella, monterey pepper jack, and cheddar cheeses, add Taco Bell nacho cheese and chipotle sauce, and toss on some marinated steak. There you go—Grilled Cheese Nacho Fries. They’re just $4.99 while supplies last, and there’s a spicy version made with jalapeños.

It’s no surprise that Taco Bell is BrandVue’s most-loved Mexican restaurant brand, and number eight on their overall list of most-loved restaurant brands.

Takeaway

Loyalty and rewards programs, subscription services, hyped LTO menu drops… These aren’t the exclusive domain of global chain restaurants.

Independent operators can absolutely leverage LTOs and subscriptions. Moreover, indies can do so with as much—if not more—specificity. Independent and regional chain operators tend to be far more nimble than their large chain counterparts.

After all, it’s much easier to implement change in one or a handful of restaurants than it is hundreds or thousands of locations. In theory, single-unit operators also know their loyal guests on a more intimate level. Where that’s the case, they should know what levers to pull to generate interest and encourage repeat visits.

It’s no small task to create a subscription program, let alone a free-to-use-but-engaging, branded rewards program. And that’s to say nothing of coming up with menu item so powerful that taking it away for months at a time is a feasible, profitable thing to do. Although, if you’ve shrunk your menu and eliminated a decent food or drink performer, you may have somewhere to start.

With time and thoughtful consideration, independent and regional operators can absolutely nail rewards, subscriptions, and LTOs.

Image: Taco Bell

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People holding phones over a pizza
by David Klemt David Klemt No Comments

Gen Z Shifting the Restaurant Landscape

Gen Z Shifting the Restaurant Landscape

by Nathen Dubé

People holding phones over a pizza

I think we can admit every demographic snaps pics of their food now.

The next wave of restaurant guests is ready to be won over. Our industry is on the cusp of a monumental shift, and Generation Z is at the helm.

As they come into their own, both socially and economically, this vibrant generation is poised to redefine dining as we know it. With their digital-first mindset, staggering spending power, and penchant for loyalty, Gen Z is a demographic that no restaurant can afford to overlook.

Comprising nearly a quarter of the American economy, Gen Z is a force to be reckoned with. Born in 1993 or later, they command an awe-inspiring $250 billion in spending power.

But what’s truly remarkable is their approach to dining. Generally speaking, eating out is not an occasional indulgence for this generation; it’s a regular part of life.

In fact, the majority of Gen Zers frequent restaurants at least once a week, a statistic that’s all the more astonishing when you consider that many are not even old enough to drive.

As this generation matures and their financial standing improves, they are set to become the next wave of loyal restaurant patrons. To capture their attention and build lasting relationships, restaurants must focus on three pivotal areas: cutting-edge technology, customizable menus/personalization, and one-of-a-kind experiences.

By proactively adapting to meet the unique needs and desires of Gen Z, restaurants can not only win their business but also secure a prosperous future in an ever-evolving industry.

So, the question isn’t whether to adapt to Gen Z. Rather, the question is, how quickly can you do it?

The next generation of restaurant-goers is not just knocking at the door, they’re already here. And they’re ready to dine.

Technology

Generation Z is a digitally native cohort, seamlessly integrating smart technology into every facet of their lives—from smart cars to smartphones.

To engage with this generation of guests effectively, it’s imperative for restaurants to have a mobile-optimized online menu. Given Gen Z’s penchant for quick, easily digestible information, a streamlined, fast-loading menu is key.

Highlighting elements like flavors and health-conscious options can serve as compelling selling points.

The Digital Investment Dilemma

While the allure of digital innovation is undeniable, it comes with its own set of challenges, primarily financial.

However, there is good news.

Investing in robust digital systems is essential for ensuring a smooth guest experience. This investment often yields dividends in the form of operational efficiency and heightened customer loyalty—two factors crucial to long-term success.

Gen Z, in particular, is quick to embrace modern conveniences like alcohol delivery and digital ordering, signaling a clear trajectory for the restaurant industry’s future.

Additionally, many innovative tech solutions integrate with platforms operators use currently. Where this is the case, the new tools can enhance operations, automation, marketing campaigns, back of house, etc., which justifies the initial outlay.

Augmented Reality: A New Frontier in Dining

Augmented reality (AR) in the dining space is an emerging trend with boundless potential. Although the initial costs of integrating AR can be steep, the payoff in terms of guest engagement is substantial.

Imagine a dining scenario during which guests can use AR glasses or goggles to access nutritional information about their meal instantly. The possibilities are as limitless as they are exciting.

Staying ahead of the curve with tech ensures restaurants not only attract Gen Z but also offer an enhanced dining experience that sets them apart in a competitive market and attracts guests of all ages.

The future of dining is here, and it’s digital, customizable, and incredibly interactive. Are you ready to be a part of it?

Social Media

When it comes to capturing the attention of Gen Z, social media is a goldmine.

While Facebook may not be their platform of choice, YouTube, Instagram, and TikTok are where they’re most active.

These platforms are ideal for sharing quick, engaging six- to 15-second videos that resonate with Gen Z’s fast-paced and humorous nature. Bear in mind, video not only killed the radio star, it has surpassed static photography as the engagement format of choice.

And don’t underestimate the influence of even the youngest among them; they often have a significant say in family dining decisions.

Social Media: The Modern-Day Word-of-Mouth

In today’s digital landscape, social media isn’t just a platform—it’s a potent marketing arsenal.

Gen Z is particularly vocal about their dining experiences, often sharing them online for their followers to see. This user-generated content serves as invaluable, organic marketing that can drive both foot traffic and revenue.

In essence, social media has become the new word-of-mouth, and restaurants should actively encourage this form of authentic promotion.

The WiFi Factor

Offering free WiFi isn’t just a courtesy, it’s strategic.

By becoming a wireless hotspot, you’re also positioning yourself as a dining hotspot.

Free WiFi enables Gen Z patrons to stay connected, even while enjoying a meal with family or friends. They can easily share texts, photos, and perhaps even a glowing review, providing your restaurant with the kind of word-of-mouth advertising that money can’t buy.

By embracing these digital and social strategies, restaurants can not only attract the Gen Z audience but also create a dynamic, interactive dining environment that appeals to all.

The future of the restaurant industry is undeniably digital, and those who adapt will not just survive but thrive. Are you prepared for this exciting new chapter in dining?

Authenticity

The culinary landscape is evolving, and Gen Z is at the forefront of this transformation.

Authentic and Global Flavors: The Culinary Passport

In an era marked by globalization, Gen Z’s palate is as diverse as their worldview.

Their affinity for authentic, global flavors is more than a trend, it’s a reflection of a world where borders are increasingly blurred. As international cuisines become more accessible, they’re also becoming a staple on restaurant menus.

For restaurateurs, this provides an opportunity to diversify and enrich their culinary offerings.

Fusion: The Art of Culinary Innovation

Fusion foods are not merely a passing fad. Truly, fusion is a celebration of culinary creativity.

This trend allows chefs to push the boundaries of traditional cooking, often creating unique, high-value dishes that enhance a restaurant’s revenue potential.

In many ways, fusion embodies the inclusive and diverse spirit of Gen Z, making this culinary approach a hit among this demographic.

Experiential Dining: The Rise of the Experience Economy

The move towards experiential dining is part of a larger shift in consumer behavior, where experiences are valued over material goods.

Restaurants offering interactive experiences like cooking classes, wine tastings, or farm-to-table events are tapping into this lucrative trend.

Gen Z, in particular, is drawn to such experiential dining options, as well as to culinary fusions and fresh, natural ingredients.

A New Wave of Flavors and Dining Options

Unique flavors like yuzu, tamarind, and lemongrass are more than just exotic additions. These flavors and ingredients are becoming mainstream, particularly among Gen Z.

Educational food services, from grade schools participating in the National Restaurant Association’s Kids LiveWell program to college campuses offering “campus cuisine,” are also playing a role.

These institutions are introducing Gen Z to a wide array of international flavors and dietary options, including vegan, vegetarian, and gluten-free choices.

By understanding and embracing these trends, restaurants can position themselves as forward-thinking establishments ready to meet the diverse needs and preferences of Gen Z.

The future of dining is here, and it’s as varied, interactive, and global as the generation it serves. Are you ready to be a part of this culinary revolution?

Crafting the Ultimate Customizable Dining Experience

When it comes to dining, Gen Z values customization above all else. They want their meals tailored to their preferences, and they want them now.

While staples like burgers and pizza remain popular, it would be a mistake to pigeonhole their tastes.

According to Technomic’s The Generational Consumer Trend Report, Gen Z has a broader palate, embracing a range of global cuisines like Chinese, Mexican, and pasta at rates higher than any other generation.

A Melting Pot of Influences

This global appetite is more than just a random preference. Rather, it’s a reflection of Gen Z’s diverse background and the adventurous spirit of their Gen X parents.

But the driving force behind it all is the allure of customization.

Imagine a dining table where each person has their own uniquely crafted taco, creating a communal dining experience rich in personalization. This aligns perfectly with insights from Flavor & The Menu’s Generational Flavors report, which highlights the importance of affordability, value, and convenience to Gen Z diners.

The Customization Kings: Why Subway and Chipotle Reign Supreme

It’s no coincidence that eateries like Subway and Chipotle are among Gen Z’s favorites. These establishments have mastered the art of customization while also offering affordability and convenience—three key factors that resonate with this generation.

By recognizing and capitalizing on these trends, restaurants can craft the ultimate dining experience that not only appeals to Gen Z but also sets them apart in a highly competitive market.

The future of dining is customizable, diverse, and incredibly exciting. Are you prepared to meet the demands of this new generation of discerning diners?

Social Responsibility

A Win-Win for Brands and Consumers

For Gen Z, social responsibility isn’t just a buzzword, it’s a way of life. And this focus translates into tangible economic gains for restaurants.

Brands that actively engage in social responsibility have seen a four-percent uptick in sales. This demonstrates that doing good is also good for business.

This generation is more likely to patronize establishments that resonate with their values, making corporate social responsibility not just an ethical imperative but a savvy business strategy.

Health and Wellness: The New Currency

Gen Z’s emphasis on better-for-you options extends to their dining choices.

According to Technomic, features like recycling, sustainable food practices, and health-conscious menu items can significantly boost restaurant traffic.

But it doesn’t stop there.

This generation is willing to pay a premium for quality and health benefits, opening up lucrative revenue streams for restaurants that offer premium, health-focused menus. This is not a fleeting trend but a market shift, propelled by Gen Z’s prioritization of quality over quantity.

Sustainability: The Green Dividend

The push for sustainability is evolving from an ethical stance to an economic imperative. With government incentives encouraging eco-friendly practices and a consumer base willing to pay extra for sustainable options, going green is increasingly profitable.

This creates a virtuous cycle where businesses can contribute to environmental conservation while also boosting their bottom line.

By aligning with these core values—social responsibility, health and wellness, and sustainability—restaurants can attract the discerning Gen Z but also position themselves for long-term success in a rapidly evolving market.

The future of dining is socially responsible, health-conscious, and eco-friendly. Are you ready to embrace it?

The Social Hub

Coffee Shops as Gen Z’s Gathering Grounds

Starbucks and similar coffee shops have become social hubs for Gen Z.

Offering specialty coffee experiences in an adult-like setting, these establishments have become the go-to spots for socializing among those too young for adult beverages.

A Diverse Palette of Beverages

When it comes to drinks, Gen Z’s preferences are as diverse as their food choices.

While soda remains a popular option, this generation is also more inclined than others to opt for healthier alternatives like lemonade, bottled water, fruit juice, and smoothies.

Highlighting these better-for-you options can be a smart move for restaurants looking to cater to this health-conscious demographic.

Nutritional Transparency: A Win for All

In a world where regulatory scrutiny around food labeling is intensifying, transparency is key.

Restaurants that provide nutritional information voluntarily not only cater to the health-focused mindset of Gen Z but also position themselves as responsible businesses in the eyes of both regulators and the broader community.

In Conclusion: The Future of Dining is Here, and It’s Gen Z

As we’ve explored, Gen Z is redefining the dining landscape in numerous ways—from their penchant for customization and global flavors to their focus on social responsibility, health, and sustainability.

By understanding and adapting to these multifaceted preferences, restaurants can not only attract this influential demographic but also set themselves up for long-term success in an ever-changing industry.

The future of dining is not just about food; it’s about creating an experience that resonates with the values and lifestyles of the next generation of consumers.

Are you ready to be a part of this exciting culinary evolution?

Image: Yoav Aziz on Unsplash

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