Customer experience

Vintage toy robot face and torso
by David Klemt David Klemt No Comments

We Ask ChatGPT About Robots and AI

We Ask ChatGPT About Robots and AI in Restaurants

by David Klemt

Vintage toy robot face and torso

Earlier this week we had “a conversation” with ChatGPT, the now (in)famous chatbot from artificial intelligence research and development company OpenAI.

For my first time interacting with this type of tool, I keep things simple. I attempt to phrase my questions correctly, focusing on the topic of AI and robots in hospitality.

Initially, I receive a response that probably isn’t much of a surprise. But as you’ll see, the chatbot highlights an item or two that aren’t always top of mind with this topic.

Below you’ll find ChatGPT’s responses to one request and two questions.

Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.

“Robots and artificial intelligence (AI) are becoming increasingly prevalent in the restaurant industry. This is in part due to the many benefits that these technologies can offer, such as increased efficiency, improved safety, and reduced labor costs. However, it is also important to consider the perspective of the robots and AI systems themselves, and how they are integrated into the restaurant workforce.

One of the main ways that robots and AI are used in restaurants is through automation of tasks that would otherwise be performed by human workers. For example, robots can be programmed to cook food, mix drinks, and serve customers. This can help to improve the efficiency of the restaurant, as robots are able to work faster and more accurately than humans. Additionally, robots can be designed to perform tasks that are dangerous or difficult for humans, such as handling hot oil or sharp knives. This can help to improve safety in the kitchen and other areas of the restaurant.

However, the use of robots and AI in restaurants also raises some important ethical and social issues. Some people may worry that robots will take jobs away from human workers, especially in an industry that already has high turnover rates. Additionally, there may be concerns about the social and emotional impact of having robots as a major presence in the workplace. For example, some people may find it uncomfortable or strange to interact with robots in a social setting, such as a restaurant.

The robots and AI perspective, they are programed to perform their task efficiently without any error. They don’t have any emotions or preferences hence they are not impacted by the same issues that human employees may face like fatigue, stress or burnout. They can work in any environment without needing breaks or vacation days, this can help reduce labor costs, as restaurants can operate with fewer employees. However, it also means that human workers may need to be trained in new skills that allow them to work alongside robots and AI systems.

In conclusion, the integration of robots and AI in the restaurant industry can provide many benefits, including increased efficiency and improved safety. However, it is important to consider the ethical and social implications of these technologies, and to ensure that they are implemented in a way that benefits both the restaurant and its employees. With proper planning and training, robots and AI can be an [sic] valuable asset to restaurant workforce.”

Can you explain to me, in 300 to 400 words, what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

For the most part, ChatGPT repeats talking points from our first interaction. This is likely due to the phrasing of my question. Also, this chatbot is still in its “infancy.”

However, ChatGPT brings up a few new points, and expands on others.

“The use of artificial intelligence (AI) and robots in restaurants, bars, and hotels raises a number of ethical implications that should be considered by operators. One of the main concerns is the potential for these technologies to displace human workers. In an industry that already has high turnover rates and relatively low wages, the use of robots and AI could make it even more difficult for human workers to find and keep jobs. This could lead to increased unemployment, reduced income and work-life imbalance among the impacted employees.

Another ethical concern is the impact that these technologies may have on the customer experience. For example, some customers may find it unsettling or uncomfortable to interact with robots in a social setting, such as a restaurant or hotel. Additionally, customers may feel that the use of robots and AI detracts from the human element of the service experience, and could harm the overall reputation of the business. There may also be concerns about how the data collected by these systems is used and protected, raising question about data privacy and security.

Additionally, some concerns about the way these AI and robots are designed and how they make their decisions, there could be potential for bias, especially when the systems are provided with data that is not representative of the whole population. This could lead to unfair treatment of customers, employees and other stakeholders.

There are also concerns about how the maintenance and repair of these technologies are managed and who is responsible for any accidents or malfunctions that may occur. This is particularly important for safety critical tasks, such as cooking or cleaning. Operators need to ensure that the AI and robots are designed and maintained to the highest standards to prevent any harm to employees or customers.”

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

Since ChatGPT mentions bias in response to my first question, I run with that train of thought.

Below is what the chatbot has to say about that topic as it relates to AI and robots.

“Yes, there is a risk that human designers and engineers may introduce bias into customer-facing artificial intelligence (AI) and robots. This can happen in a number of ways, including:

  1. Data bias: If the AI system is trained on a dataset that is not representative of the population it will be serving, it may make decisions or predictions that are biased towards certain groups of people. For example, if an AI system used in a hotel is trained on data from primarily white and wealthy guests, it may have difficulty understanding and serving guests from other backgrounds.
  2. Algorithm bias: The way an AI system is designed and the algorithms it uses can also introduce bias. For example, if an algorithm is designed to prioritize certain inputs over others, it may make decisions that are biased towards certain groups of people.
  3. Human bias: Human bias can be introduced into AI systems through the decisions made by designers and engineers about what the system should do, how it should work and how it should interact with people. For example, if a designer and engineers decide that the robot should be more polite to older customers, it may be less polite to younger customers, or if the system is designed to recognize only certain languages, it may not be able to understand and serve customers who speak other languages.

It is important for human designers and engineers to be aware of the potential for bias in AI systems, and to take steps to minimize it. This can be done by using diverse and representative data when training the AI system, being mindful of the potential for bias in the algorithms used, and involving stakeholders from diverse backgrounds in the design and testing process. Additionally, monitoring and audit the system performance regularly, and providing ways for users to provide feedback on the performance and make adjustments accordingly.

It is important to remember that this is an ongoing process and it requires continuous monitoring and adjustment as the data and environment changes. There is also a need for more research in the field of explainable AI, which would allow human designers and engineers to understand why the AI system is making certain decisions, which can help to identify and mitigate any biases that may have been introduced.”

Takeaways

Obviously, I don’t think ChatGPT “speaks” for the machines. And I don’t think the chatbot was attempting to convince me of anything. There’s nothing overtly nefarious afoot here—this was mainly an entertaining exercise with a newsworthy tool.

That said, I’m not entirely certain how I feel about my interaction with ChatGPT. On one hand, the answers in favor of AI and robots are what one expects: efficiency, speed, consistency, cost reductions, improvements to safety.

But what about what ChatGPT says about biases, programming, representation, and human interactions with tech? To alter a phrase, “Who watches the programmers?”

Hospitality is about the human element. It’s about service and the guest experience. Personally, I don’t think the world will be in a better place if we reduce human interaction.

Dropping baskets into hot oil? Slicing and dicing? Sure, send in the robots…maybe. Reducing the human element in the name of efficiency and profits? I don’t see a benefit worth the risks.

Image: Rock’n Roll Monkey on Unsplash

Tortilla with beans, cotija cheese and egg
by David Klemt David Klemt No Comments

Canadian Trends 2023: Technomic

Canadian Trends 2023: Technomic

by David Klemt

Tortilla with beans, cotija cheese and egg

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.

Technology

Multiple industry sources believe that 2023 is the Year of Tech for the hospitality industry. In particular, some sources believe that POS systems will receive significant attention from operators looking to upgrade.

Compellingly, Technomic sees the situation a bit differently. In particular, they’re suggesting that QR code menus may find themselves on the sidelines. Traditional menu, according to Technomic, will make their comeback this year.

Also making a (possible) resurgence? Per Technomic, in-person ordering for carryout and in-person dining.

As far as tech innovations that Technomic expects to take off this year, they see the following as standouts:

  • loyalty programs;
  • enhanced/upgraded cooking equipment;
  • automated inventory software/platforms; and
  • digital menu boards for back of house.

Culinary

As hinted at above, Central and South American cuisines are expected to take off in Canada, per Technomic.

The research firm provides specific—and delicious—examples:

  • Honduras: Baleadas tacos
  • Dominican Republic: Wasakaka sauce
  • El Salvador: Curtido slaw or relish
  • Peru: Aji amarillo and rocoto peppers
  • Bolivia: Saltenas, similar to empanadas

Another culinary trend Technomic predicts will perform well in Canada? Pickled everything.

Okay, maybe not everything. However, Technomic expects “pickling, fermenting, dehydrating and freeze-drying” to “increasingly pop up on menus.” The firm expects that operators will offer a wide range of “unusually pickled items outside of the typical veggies, including proteins and seeds.”

So, if you’re an operator reading this, it may be time to motivate your back-of-house staff to get creative with their pickling ideas.

Finally, pandemic-driven, health-based trend foods like turmeric and ginger may start to fade in popularity. Instead, predicts Technomic, items with “classic” health descriptors such as “natural,” “real,” “free,” “reduced,” and “lower” will get attention from guests looking to eat and drink healthier.

For your own copy of this Technomic report in its entirety, click here.

Image: Roman Odintsov on Pexels

The word "play" painted on a wall
by David Klemt David Klemt No Comments

SevenRooms and CSV form Partnership

SevenRooms and Competitive Social Ventures form Partnership

by David Klemt

The word "play" painted on a wall

Guest experience and retention platform SevenRooms will kick off 2023 with a partnership with Competitive Social Ventures.

This new partnership is yet another example of SevenRooms’ continuous growth. For technology in general and our industry in particular, this is excellent news.

Consider how long it has taken, up until recently, for hospitality to embrace tech innovations. Navigating tech solutions can be daunting. Equally intimidating can be the cost of implementing new tech in a restaurant, bar, or hotel.

Watching a tech platform continue to innovate and grow, therefore, is good news for operators and their teams.

SevenRooms traces their founding to 2011. In comparison, many “solutions” never escape the vaporware stage, existing only on paper. With more than a decade of operation under its belt, SevenRooms is established and positioned for longevity.

In other words, the platform is worthy of operator consideration and investment. We make no secret of our preference for SevenRooms at KRG Hospitality. Unless they prove we should think otherwise, the platform is our favorite tech-based guest retention solution.

Beyond functionality, ease of use, and effectiveness, the company’s continuous growth motivates our support. Look at how SevenRooms grew in 2021 alone:

The platform also started 2022 with the hiring of a chief revenue officer, Brent-Stig Kraus.

Social Entertainment

With its headquarters in Alpharetta, Georgia, Competitive Social Ventures blends sports, socializing, and entertainment.

In fact, the company refers to the brands it has brought to market as “competitive socializing entertainment concepts.”

Last year, CSV brought Fairway Social Alpharetta and Roaring Social Alpharetta to market. The former focuses on sports simulators. Roaring Social, on the other hand, delivers a speakeasy experience combined with bowling.

Arriving in 2023, the real estate holding company plans to launch Pickle & Social concepts throughout the Metro Atlanta. As the name suggests, the concept features indoor and outdoor pickleball courts. Guests will also have access to table tennis. And like Fairway Social and Roaring Social, Pickle & Social will feature live music and an elevated F&B experience.

CSV already makes use of SevenRooms’ reservation and guest data management tools. Going into 2023, this partnership will evolve into review aggregation, marketing automation, and table waitlist management. The latter makes it easier for any concept to handle walk-ins as painlessly as possible.

Most importantly, the partnership with SevenRooms empowers CSV to pursue their growth plans. While the growth of SevenRooms is impressive and confidence-inspiring, their commitment to client growth is the real story here.

When choosing their tech stack, operators need to know the relationship is mutually beneficial. In fact, they need to be confident that each platform is here for long-term success.

In fact, operators should look at every relationship through this lens: Is every partner working to help you grow?

Image: Ben Hershey on Unsplash

Friends toasting with pink drinks
by David Klemt David Klemt No Comments

Is There Demand for Non-alcohol?

As the Holidays Approach, is There Demand for Non-alcohol?

by David Klemt

Friends toasting with pink drinks

There’s no denying that non-alcohol is a growing beverage category, but does the data support the hype and operator consideration?

A report by behavioral research firm Veylinx offers compelling insight into non-alcohol and consumers.

By now, there’s really no excuse for failing to give non-alc serious consideration. When planning menus, operators should treat non-alc as much more than an afterthought.

Admitting fully that I’m repeating myself, giving alcohol-free beverages the same attention as their full-proof counterparts is crucial. Doing so is smart business; non-alc is capable of driving traffic and revenue.

And then there’s the guest experience element of the non-alc equation. Hospitality is about service, about ensuring every guest is comfortable. Giving guests who are abstaining from alcohol consumption a different experience than others isn’t hospitality—it’s alienation. Not only is that the antithesis of hospitality, it’s bad business.

Reviewing Veylinx data shows that non-alc is worthy of operators’ time and consideration. In my opinion, it’s even more important that non-alc menus and offerings be dialed in now. After all, the end-of-year holidays on our doorsteps.

The infamous Busiest Bar Night of the Year is nearly here. From November 23 through New Year’s Eve, people will be meeting up with family and friends. Many will also be seeking an escape from the stress of those gathering and the holidays.

Non-alcohol by the Numbers

One of the most important points made by Veylinx is this: Abstinence from alcohol isn’t limited to “social media” events like Dry January and Sober October.

Rather, consumers are choosing to abstain from alcohol throughout the year for myriad reasons. Specifically, Veylinx data reveals that more than 75 percent of Americans have abstained from alcohol consumption at some point for at least one moment.

Further, 46 percent of Americans plan to reduce their consumption of alcohol “right now.” As in, the holidays may be upon us but they’re actively working on a plan to drink less, not more.

Two major factors motivating this behavioral change are mental well-being and physical health. In service of those factors, more than half of LDA drinkers in America plan to replace beverage alcohol with non-alc beverages.

Interestingly, Veylinx finds that these consumers will pay more for non-alc alternatives in comparison to the general population.

Drilling down further, this shift in consumer behavior appears to be driven by a handful of consumer types:

  • 21- to 35-year-old consumers;
  • “light” drinkers; and
  • consumers who have set aside alcohol consumption for one month or more.

Speaking of the first group, demand for RTDs is 48 percent greater in comparison to those aged 35 or older. Add CBD to RTD and the demand among the 21 to 35 cohort grows by 18 percent.

However, not all non-alc growth comes from the 21-to-35 group. Non-alc beverages with mood boosters see an increase in demand from the 35-plus group of 29 percent.

In short, if an operator is ignoring the non-alc consumer, they’re harming their own business and reputation. Alcohol-free RTDs, cocktails, beer, and wine are growing.

Savvy operators will leverage that growth.

Image: Helena Yankovska via Unsplash

Newfoundland and Labrador during daytime
by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

Newfoundland and Labrador during daytime

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.

The Happiest Province

Okay, let’s dive into the reason you’re here: to learn which province is the happiest.

  1. Newfoundland and Labrador
  2. Prince Edward Island
  3. Quebec
  4. New Brunswick
  5. Manitoba
  6. Alberta
  7. Saskatchewa
  8. Nova Scotia
  9. Ontario
  10. British Columbia

The above rankings are determined by the percentage of survey respondents who rated their life satisfaction eight, nine or ten. So, if you’re in Newfoundland and Labrador, Prince Edward Island or Quebec, wow—you’re apparently one incredibly happy person.

Conversely, below you’ll find the rankings as determined by the largest percentage of respondents who rated their satisfaction a five or lower. As you’ll find, the list below isn’t simply the inverse of the one above.

  1. Ontario
  2. British Columbia
  3. New Brunswick
  4. Alberta
  5. Nova Scotia
  6. Prince Edward Island
  7. Manitoba
  8. Saskatchewa
  9. Quebec
  10. Newfoundland and Labrador

As far as Canada overall, the results of this particular survey are positive. Just 19.4 percent of survey respondents rated their satisfaction or happiness zero through five. And only 28.9 percent provided a rating of six or seven.

More than half of Canadians, 51.7 percent, rate their lives an eight, nine or ten. That’s some great and welcome news.

Image: Erik Mclean on Unsplash

Chocolate cookie and cookie crumbles
by David Klemt David Klemt No Comments

How a Chain Lost My Business Forever

How the Staff at a National Chain Lost My Business Forever

by David Klemt

Chocolate cookie and cookie crumbles

An unfortunate and entirely avoidable guest experience debacle guarantees that I’ll never spend another dollar at a particular national American chain.

What was supposed to be a small treat and excuse to get outside for a bit went downhill quickly.

Now, before I begin, I tend to shrug at poor service. Truly, a front-of-house team member has to go pretty far for me to do more than raise an eyebrow.

Given how the past two years-plus have gone, my tolerance has only grown. Everyone has bad days, including restaurant, bar, and hotel staff. In fact, I tend to assume that someone is simply having an off day due to an array of reasons: working several days in a row, opening and closing multiple times a week; having more responsibilities heaped on them due to being short staffed; a seeming increase in abuse from guests; stress spilling over onto the job; etc.

However, that doesn’t mean I’ll always return to be subjected to poor service in the future. What I experienced yesterday falls into this category: I won’t spend my money with this chain ever again.

Third-party Issues

As stated above, my visit to this national chain (600-plus locations) was intended to be a small treat. It was Halloween, they specialize in a particular type of confection, so why not?

Also, the temperatures have been in the 70s and lower in Las Vegas—perfect for a trip on my motorcycle. So, two treats in one, really.

Okay, so I’m going to do something I don’t like doing here: making an assumption or two. I think, however, I’m basing them on sound reasoning.

Additionally, I don’t like to use third-party delivery. In this case, the order was placed via Uber Eats for pickup using a monthly credit. Zero offense to third-party delivery drivers—it’s the corporations behind the services and the fees they charge operators I don’t support.

So, my assumption is that because the order came in via Uber Eats the staff figured I was “just” a delivery driver.

Downhill Fast

I’ll concede that this visit didn’t start off on the wrong foot: I received a decent welcome. Since I was picking up the order, I stood at the pickup counter, and confirmation came in before I arrived that the order was ready.

There were three guests waiting when I walked in, and one by one they got their orders and left. I didn’t think anything was going wrong until people walked in after me and received their orders. In terms of this chain, my order was on the smaller side.

After several minutes of being ignored, I was asked if I was picking up for Uber Eats. I clarified that no, I’m not an Uber Eats driver, I was picking up my order placed via Uber Eats.

Another several minutes went by as I watched larger orders get fulfilled ahead of mine. And then I was asked again—by the same staff member—who I was picking up for. Again, not an Uber Eats driver—my order.

At this point, I had been waiting more than 10 minutes. When I was finally given my order, I noticed another difference. Staff members showed guests their orders to confirm the contents before handing them over. My order, however, was taped closed behind the counter and handed to me.

It didn’t strike me that this is how this staff treats Uber Eats driver until I was on my bike. And that’s the problem.

Standards of Service

If this is how staff treats third-party delivery drivers, it’s appalling. There’s no excuse for treating drivers differently just because they aren’t the guest themselves or fellow employees.

Let’s be clear: anyone walking through a restaurant, bar or hotel’s doors deserves at least decent service. There are several reasons for this, and I shouldn’t have to address them. But, hey, we’re already here, so why not address a couple?

First, standards. If your staff is purposely treating a group of people poorly because they think they can do so without ramifications, your standards have slipped or there simply aren’t any. That’s a problem.

Are team members going to get to know regulars? Absolutely. Are they going to have favorites. Of course! And there’s nothing wrong with that. In fact, that’s what should happen—every front-of-house team member should cultivate their own regulars.

So, yes, some guests will treated differently. There’s a huge difference, however, between subjecting some guests to poor service intentionally and delivering outstanding service to favorites.

Quite simply, the minimum standard of service should be great service. “Decent” sucks; great should be the baseline.

Regulars and guests who staff have rapport with should receive service that’s above and beyond the standard level. Rock star servers and bartenders deliver outstanding service to everyone, regular or first-timer, gracious guest or grump.

Different Treatment?

Second, your staff shouldn’t be treating third-party delivery workers like they don’t matter. There’s zero room in hospitality for treating people poorly—doing so is in direct opposition to the spirit of this profession.

In fact, they shouldn’t treat difficult guests with anything but your expected standards. Leadership team members should be confronting rude or difficult guests, protecting the rest of the team.

I’ve read and heard about restaurant staff treating third-party delivery drivers poorly. Always, of course, with justifications thrown in: retaliation toward rude drivers, drivers not tipping…pick a reason. Again, if there’s a rude driver, staff should alert leadership and they should handle it.

Look, I’ve made no secret of my view on third-party delivery apps. Their fees and taking advantage of operators, particularly during the pandemic, infuriate me. And it’s easy to point at me and say I’m part of the problem, using a credit to place a third-party delivery. I’ll accept that criticism.

What I won’t do is return to a business with staff who think it’s acceptable to allow standards to slip and treat delivery drivers poorly. Most people seem to take delivery jobs to make ends meet. Hell, some of them are likely service industry professionals themselves working another job or jobs.

The labor shortage isn’t a valid justification for slipping standards or poor service. Dislike of third-party delivery services is no justification, either.

In fact, this chain obviously sees these delivery services as a viable income stream. The fact their staff doesn’t is a problem. If there’s a standard of service for this chain, it certainly wasn’t met when I was there. And if there’s a standard that I didn’t receive, there are several other problems.

Either way, the damage is done.

Image: Andre Moura via Pexels

Bar and restaurant food and drink menus
by David Klemt David Klemt No Comments

Menus in Canada: Who Wants What Items?

Menus in Canada: Who Wants What Items?

by David Klemt

Bar and restaurant food and drink menus

Nobody has a crystal ball telling them what they should put on their menus to boost traffic and revenue, but we do have data.

In this instance, we have useful data regarding Canadian consumers specifically. Not only do we have helpful information from Restaurants Canada, David Henkes from Technomic has also weighed in. For those who are unfamiliar, Technomic is one of the best foodservice research and consulting firms.

Before we dive into Restaurant Canada’s menu trend information, this is not a review of the top menu item orders in Canada. For a deep dive into that topic in particular, please read our article “F&B in Canada: Top Menu Items.”

Instead, in this article we’re reviewing broader menu categories and interest in them among Canadian consumers. For your own copy of the 2022 Foodservice Facts report, click here.

Word of Warning

Now, it’s important to bear in mind that the data below is a snapshot. It’s important, informative data but it shouldn’t influence your menu completely.

In other words, when considering revising your menu in any way, make sure you’re staying true to your brand and the community you serve. If your data differs from Restaurants Canada and Technomic data, that’s okay.

Not only are there always outliers, not all data applies to every concept. So, don’t take drastic action on your menus based solely on the data below.

For this particular topic, Restaurants Canada asked three age groups about their interest in eight menu categories.

The groups are: 18 to 34, 35 to 54, and 55-plus. The industry advocacy group then reviewed the numbers for those who indicated they’re “very interested” or “somewhat interested” for each category or item.

Who Wants What?

The menu category generating the most interest from Canadian consumers, according to Restaurants Canada data, is food sourced from local farmers. Overall, 93 percent of survey respondents very or somewhat interested. Those in the 55-plus age group are the most interested.

More than 80 percent are interested in comfort foods, or creative riffs on comfort foods. Age groups 18 to 34 and 35 to 54 have the most interest. Precisely 80 percent are interested in trying globally inspired foods and flavors, led by the 18 to 34 age group.

Foods that promote health and wellness come next, with 79 percent of Canadian consumers showing interest. The 55-plus age group is particularly interested. However, dishes that utilize ingredients that boost one’s immune system are only popular among 53 percent of survey respondents. Interestingly, it’s the 18 to 34 age group with the most interest in this category.

In what’s possibly a contrast from American consumers, the final three categories have no more than 41 percent of survey respondents’ interest. Forty-one percent have interest in meatless and vegetarian items. Next, just 38 percent show interest in alcohol-free cocktails. Finally, just 33 percent are interested in plant-based burgers and sausages.

For each of those categories, the greatest interest comes from the 18 to 34 age group, and the 55-plus group shows the least amount of interest.

Recommended Reading

We’ve been reviewing the 2022 Foodservice Facts report from Restaurants Canada in depth for several weeks. To learn more about this important report, please read the following:

Image: Samuel Regan-Asante on Unsplash

Overhead shot of hand holding cocktail
by David Klemt David Klemt No Comments

The Delicious ‘Mistake’ Causing an Uproar

The Delicious ‘Mistake’ Causing an Uproar

by David Klemt

Overhead shot of hand holding cocktail

Are you hearing your bar team or fellow bartenders debating Negroni specs or catching them rolling their eyes when a guest orders a particular variant?

Well, there’s a good reason. For some reason, the Negroni Sbagliato is getting roasted across social media.

 

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A post shared by Mover & Shaker (@moverandshakerco)

Perhaps it’s for the way it’s apparently being ordered. If the memes are anything to go by—a portion of a sentence I can’t believe I just typed—guests are asking for, “A Negroni Sbagliato, with Prosecco.”

It’s possible that some bartenders are bristling at the “with Prosecco” portion of the order. A Sbagliato, which translates to “mistake,” “bungled,” or “incorrect” from Italian, is a gin-less Negroni. As you may already know or are putting together by now, sparkling wine stands in for the gin.

There’s also another possibility as well: some bartenders can’t stand when a cocktail suddenly explodes in popularity and it’s all they seem to make for weeks on end.

Of course, it could just be that some bartenders don’t feel that the drink is worthy of the hive-mind ordering frenzy. I’ve seen more than one comment on social media posts (again, I can’t believe that’s a relevant method of providing context, but here we are) pointing out that there’s nothing groundbreaking about the Sbagliato.

“All that’s happening is gin being swapped out for sparkling wine,” is a common refrain. It’s a good point.

If the phrase, “No Negroni without Campari,’ holds true, how can a Negroni be a Negroni without gin?

Guest Experience

So, that’s the gist of this “scandal” or “outrage.” Really, it just seems like a bit of fun from the bartender and cocktail communities. Why not vent a little spleen at something innocuous if nobody gets hurt?

Unless, of course, the guest experience is being affected negatively. There was a time not long ago during which a number of “serious” cocktail bar teams belittled guests for any number of reasons, and seemed to get away with it.

Didn’t know something about a particular element of ingredient of a drink? Ridicule. Asked for a drink “beneath” the bar team? Outward contempt.

Not great, as you can imagine, for the guest experience, growing a loyal base, and earning repeat visits.

Personally, I have no issue with front-of-house team members rolling their eyes at someone causing problems. Being rude or creepy to team members and/or guests? Difficult guests get what they deserve if they’re mocked, set straight, and kicked out.

But for ordering what they want to drink, well within reason? Sorry, but I don’t feel like that’s worthy of outward scorn. It’s not the spirit of hospitality, and it’s certainly not good for business.

However, I don’t think anyone has addressed the Negroni Sbagliato (non)issue as well as bartender Giuseppe González via Instagram:


If you don’t want to check out the post, even though you should, here’s a relevant snippet:

“So I say this with love: Unless they are ordering a Pumpkin Spice Negroni Sbagliato, let it go and look at this human knowing one thing: it’s actually a really cool drink and I’m not mad at it.”

Negroni Sbagliato

Remember, one of the keys to the balance that defines the original Negroni is the 1:1:1 ratio. For this riff on the classic, that ratio remains the same—it’s an ingredient change that makes the difference.

As you’ll see below, the Sbagliato recipe calls for Prosecco rather than gin. While the substitution is simple, the change to the cocktail is significant in terms for flavor and mouthfeel.

I’d also say this an fun fall or winter cocktail, so why not put one on your menu?

  • 1 oz. Campari
  • 1 oz. Sweet vermouth
  • 1 oz. Prosecco
  • Orange slice or peel to garnish

First, prepare an Old Fashioned glass with a large ice cube or sphere. Next, add ice, Campari and sweet vermouth to a mixing glass. Stir until well chilled, then strain into the prepared glass. Now, add the Prosecco to the glass and stir once more. Finally, garnish with orange slice or peel.

If you so choose, you can build this drink entirely with Campari portfolio elements. There’s Campari itself, of course. Then there’s Cinzano Vermouth Rosso and Cinzano Prosecco.

Image: Matheus Frade on Unsplash

People toasting with Dunkin' Donuts cups
by David Klemt David Klemt No Comments

Restaurant Rewards Making Headlines

Restaurant Rewards Making Headlines

by David Klemt

People toasting with Dunkin' Donuts cups

Loyalty programs are making waves and grabbing headlines but not all of the news is good, according to consumers.

Dunkin’, Chipotle, Taco Bell, and Starbucks are among the restaurants whose programs are receiving attention.

Now, there are still those who cling to the idea that all publicity is good. Personally, I’ve found that idiom to be outdated. In fact, I’ve believed that phrase to be false for several years.

Instead, when it comes to publicity, I find this quote from Warren Buffet to be far more accurate: “It takes 20 years to build a reputation and five minutes to ruin it.”

It’s important for operators—for all entrepreneurs, really—to protect their brand’s reputation. At the end of the day, long-term success depends on the reputation one builds. And make no mistake, that reputation is made—or broken—every day, with every interaction.

So, what does all of that have to do with loyalty or rewards programs? It’s simple—such programs aren’t just about revenue. A loyalty program, when executed well, is a branding tool that boosts engagement, recognition, and perception.

When a loyalty or rewards program is executed poorly it doesn’t just mean low membership numbers. A brand’s reputation can take a severe hit if loyal consumers cry foul.

Let’s take a look at some brands that have made headlines the past couple of weeks.

Taco Bell

This rewards program, the Taco Lover’s Pass, is a bit of an anomaly in the loyalty space.

It was first launched in Arizona in September 2021. Depending on the location, the pass cost either $5 or $10. In exchange, people could get a free taco a day for 30 consecutive days, and they could choose from seven tacos.

Back in January of this year, Taco Bell brought back the Taco Lover’s Pass. This time, the program was available throughout the US, and it cost $10. Again, those who snagged a pass through the chain’s app could get a free taco each day for 30 consecutive days.

And just two weeks ago, Taco Bell made the Taco Lover’s Pass available again. This time, people had one day to download the app (if they didn’t have it already) and grab the pass.

Time will tell if Taco Bell will eventually make this wildly popular program permanent. For now, this occasional reward program seems to be serving the chain just fine, and their loyal guests don’t seem to be angry that the Taco Lover’s Pass, thus far, appears fleetingly.

Starbucks

Another interesting approach to loyalty sees Starbucks partnering with Delta Airlines.

As of yesterday, members of Starbucks Rewards and Delta SkyMiles can link the programs together. Members of the former can receive double stars on days on which they’re flying Delta (at participating locations). For the latter, members will earn one mile for every dollar they spend at Starbucks.

Essentially, linking the two accounts ensures that members earn points across both programs for a single purchase. Not a bad move—it should be an effective way to boost loyalty for both companies.

Chipotle

Ah, Chipotle. It’s safe to say this brand has experienced plenty of ups and downs over the past several years.

But credit where credit is due: It seems that the chain manages to come back from each scandal or mistake. And that’s what’s so frustrating—they wouldn’t have to correct missteps if they took care to avoid making them in the first place.

So, why are people upset with Chipotle now? The backlash concerns the restaurant chain’s Chipotle Rewards program.

When someone signs up the program, they can redeem a nice perk immediately: free chips and guacamole. On their birthday, they have access to another perk. In general, the biggest benefit is earning up to 10 points for every dollar spent at Chipotle.

The points a member earns are redeemable in multiple ways: free menu items, a charitable donation, or merchandise. Seems very straightforward, right?

Well, Chipotle updated their rewards program, and it’s not an upgrade. In response to inflation, Chipotle has increased prices, just as innumerable restaurants have also done.

However, the chain updated Chipotle Rewards so that members must spend more to get their free entree reward. Members must now spend an additional $20-plus to get their reward, and they’re understandably unhappy.

It should go without saying but a rewards program is for increasing visits or orders per member. With people declaring they’re “done” with Chipotle, the brand’s update is driving down visits and potentially harming their reputation.

Dunkin’

Things in the reward and reputation space may be worse for Dunkin’ than any other restaurant brand at the moment.

The chain first launched its DD Perks loyalty program eight years ago. Last week, Dunkin’ “reworked” loyalty, launching Dunkin’ Rewards.

Unfortunately, according to several reports, social media, and Reddit, the new program deflated the value of members’ points. From what I’ve seen members must now earn more than double the points they needed to prior to the Dunkin’ Rewards rollout for a gratis beverage.

Oh, and free drinks on a member’s birthday? The new program eliminates that perk. As is often the case on social media, some people are seething.

However, a statement from Scott Murphy, the president of Dunkin’, suggests that people are perhaps misunderstanding or misrepresenting the new program.

“Dunkin’ loyalists told us they wanted the ability to redeem for more than just beverages and we listened,” Murphy said to The Washington Post. “They also wanted to bundle points for larger orders, which we accomplished. And they told us they wanted to be recognized for their loyalty, which they can now achieve through Boosted Status and earn points even faster when they come to Dunkin’ more often.”

In short, Dunkin’ Rewards is built to allow members to redeem points for a wider array of menu items, including meals. For now, however, it seems the knee-jerk reaction is that many members feel the points they earned prior to the new program’s launch are devalued. And they’re furious, with some calling for a boycott.

Obviously, a boycott is the opposite effect one wants from their loyalty program.

Loyalty is a Tightrope Act

If there’s one takeaway here, it’s that rewarding guests for their loyalty isn’t as simple as offering points for dollars.

Perhaps it should be simple, and maybe it was was that simple a while back. But now, operators must be far more cautious when designing a loyalty program.

I’ll continue to dislike offering discounts for most brands. In my opinion, once a guest becomes accustomed to receiving a discount regularly, that discount becomes the standard price. That’s not good for most operators.

It may seem counterintuitive, but I’d rather see loyalty program members receive a free item than discounts. At least they’ve paid full price to earn that perk.

Another issue, however, is making changes to loyalty programs. Operators are facing incredible strain when it comes to costs, and this industry’s margins are already razor thin. It appears that some brands aren’t just increasing costs, they’re also increasing the points it takes to earn loyalty perks.

That may make sense on paper but program members are showing that they don’t take kindly to this type of change.

Slow Down

Look at loyalty programs through the eyes of consumers, not just the eyes of an accountant.

When the costs of living rise and a person’s dollars don’t go as far as they did before, they tend to cut back or eliminate expenditures. Commonly, restaurant visits are among the first things suffer. Loyalty programs can offer guests a way to stretch their dollars—there’s an attractive perk around the bend that allows them to justify continual visits.

If a brand devalues a loyalty program member’s points or requires them to spend more to earn the same benefits, why would they be happy? Why would they remain loyalty? As far as they’re concerned, their incentive to do so no longer exists. The perceived value is no longer there.

Before an operator launches or “revisits” a loyalty program, they need to slow down and analyze it from every angle. These programs are a delicate balancing act, demanding they make sense for both the bottom line and the guests.

If an operator hasn’t yet implemented a loyalty program, perhaps they should hold off until costs become more reasonable. With inflation affecting costs and therefore prices, the wisest move may be to take the time to really dial in the program, prepare the necessary assets, and implement when it won’t impact revenue negatively.

On the flip side, operators considering making significant changes to their loyalty programs need to take the time to strategize before implementation. A misstep, even if it’s a misunderstanding from the member side, can do irreparable harm.

Image: Isabella and Zsa Fischer on Unsplash

Fountains outside Bellagio Las Vegas
by David Klemt David Klemt No Comments

Hotels, Guest Data and Guest Expectations

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

Fountains outside Bellagio Las Vegas

We sit down with Austen Asadorian, vice president of sales at SevenRooms, to chat about pent-up demand for travel.

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

Hi Austen, thank you for taking the time to speak with us. Can you tell us a little about yourself and your role at SevenRooms?

Thanks, David! My name is Austen Asadorian and I’m the Vice President of Sales at SevenRooms. I first started my career in hospitality early in high school, getting a job at a local restaurant in New Jersey, learning everything from protein fabrication to catering and dealing with daily customers, even managing events. I continued working in hospitality through college, while going to the Culinary Institute of America for a degree in hospitality management, and ultimately, landed at Hillstone Restaurant Group where I ran back of house operations as well as the company’s Manager Training Program. Before joining SevenRooms, I worked as Peloton’s Director of Sales, leading their go-to-market strategy for retail growth and expansion from 2014-2017.

Today, I support SevenRooms’ global expansion efforts to accelerate our goal of being the best-in-class solution for hospitality operators around the world. Having previous experience in the hospitality industry, I joined SevenRooms because I was hyper aware of the pain points in the industry surrounding technology and the need for better guest management after having lived it day-to-day for several years. More importantly, I believe in SevenRooms’ vision and have a true passion for helping hospitality businesses, big and small, drive revenue, and create loyal guests for life.

Let’s talk hotels. What does the hotel industry look like two years after (or into) the Coronavirus pandemic?

When the pandemic struck, travel came to a complete halt and hotel occupancy in the US fell from 70% in March 2019 to less than 25% in March 2020—rooms were empty. Now, as the world is back to what we can consider a new “normal,” we’re seeing an extreme surge in travel and hotels are busier than ever.

However, what guests expect from hotels experience-wise has changed and they demand more. They’re making up for lost time and they want to make it count. Coming out of the pandemic, hotel operators are taking a harder look at their entire tech stack. It’s no longer optional to have a tech stack that is fully integrated from top to bottom across their operations—it’s a must-have—and technology providers are adapting to meet those needs. Additionally, operators have put a strong emphasis on the importance of ownership over their guest data. Both trends have positioned SevenRooms incredibly well within the hotel sector, as this has been our business philosophy from day one.

How can hotel operators and managers live up to these high expectations?

The simple answer is by taking advantage of technology solutions into their everyday practices and processes. These tech solutions can be anything from a QR code for mobile order and pay, allowing guests to order food and drink from anywhere on the property without ever needing a server to approach them, to an integrated customer relationship management (CRM) platform that speaks to and pulls data from their F&B CRM, easily sharing that information across teams at the hotel. For example, passing information along to a guest services team to ensure that in-room amenities don’t include nuts if a guest has a peanut allergy.

Operators and managers should also make sure they’re utilizing loyalty programs. According to a recent SevenRooms survey of American consumers, 44% say that loyalty programs play a part in their hotel choice and there are certain incentives that will bring them back.

For example, some want loyalty points to enjoy on property restaurants and bars, whereas others want a personal greeting when they check in, or a complimentary glass of champagne waiting for them when they get to their room.

Technology and loyalty programs both play into an exceptional experience and it’s important for operators to use both to create the total package.

You mentioned collecting guest data. Can you tell us a little bit more about why that is so important?

When we talk about data and hotels, we’re talking about using it to power a one-of-a-kind unique experience. We don’t mean taking or selling personal information, and that’s an important distinction.

The data we’re collecting for operators centers around a guest’s profile—who they are and what they like. This can be anything from their dietary preferences to their favorite table in the hotel restaurant’s dining room, to what dessert they order most often when they visit.

By having this data, operators can build a direct relationship with these guests and, in turn, build an incredible experience that keeps them coming back. For example, if a guest stays at a specific hotel on their vacation and takes full advantage of the pool cabanas, the data collected on those visits can then be used to retarget them with a special marketing promotion or offer to visit their local hotel property for a staycation, complete with a discount on a cabana day rental.

Creating these unique, personalized experiences not only increases revenue for operators, but also drives loyalty, as a loyal guest is more important than a one-time guest.

About Austen

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: Antonio Janeski

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