Data

AI-generated image of a bartender serving miniature Martinis
by David Klemt David Klemt No Comments

Watch These Drink Trends in 2025

Watch These Drink Trends in 2025

by David Klemt

AI-generated image of a bartender serving miniature Martinis

Bottle of Martinis, anyone? In case you were uncertain, this image is AI-generated.

We’re nearing the end of 2024, and that means F&B intelligence platforms are releasing their year-end reports and predictions.

Among these platforms is Datassential. Recently, they released their Future of Drink preview report. You can sign up for your own copy here.

I’ve sifted through Datassential’s latest reports and trend-focused articles, and I’ve pulled a handful I think are among those that may perform the strongest in 2025.

Cheers!

Posh Jello Shots

Or as Datassential calls them in their report summary, “highbrow” jello shots.

This is the 2025 trend prediction that stands out the most to me. Your bar team will know how to produce jello shots (or learn how to make them reliably and consistently), but it’s not a difficult skill to develop.

Jello shots, or gelatin shots if you want to be pedantic, are most often associated with house parties and dive bars. However, gelatin is an interesting cocktail canvas, offering at the very least a different way to experience drinks texturally.

The simplest way to embrace this trend would be to use upmarket alcohol to craft these shots. Premium or super premium vodkas, for example. Another way would be to convert your signature cocktail(s) into jello form. And yet another approach would be layered jello shots, with each layer crafted using premium or super-premium ingredients.

An Alternative

Of course, operators don’t need to produce specialty, higher-end shots in gelatin form. With a bit of thought and experimentation, bar teams can produce shots that are essentially miniature versions of cocktails. Further, these can be offered as flights.

So, do you have a few specialty cocktails on your menu? Offer them as a flight of shots. Want to craft themed flights, such as a Negroni and two variants (Boulevardier and Sbagliato, for example)? That idea may just take off with your guests in 2025.

Creating shootable versions of more sophisticated cocktails elevates your program. Further, doing so can help introduce guests to a range of cocktails during a single visit in what can be a more responsible manner.

Think so-called “Mar-tinies” for inspiration: miniature Martinis served in miniature Martini glasses.

Heirloom Grains

It’s likely that you’re going to see “heirloom” or “heritage” a lot more in 2025 in relation to beer.

As both terms imply, brewers who produce these types of beer use grains they can trace back decades. Often times, heirloom grains are significant historically.

For example, Hanabi Lager Co. produces Haná Pilsner. Per the brewer, Haná is an heirloom grain that was used to produce the first-ever pilsner. In case you’re a beverage history buff or like sharing stories with guests who are interested, the first pilsner was brewed in 1842 by Josef Groll in the city of Pilsen.

Hanabi Lager Co. credits British farmers with “rescuing” Haná, pulling it back from the brink of extinction in 2015. Click here to check out other Hanabi beers made with heirloom barley and other heritage grains.

Operators who are interested in leveraging beers with notable ingredients should look for the words “heirloom,” “heritage,” and “ancient grain.” Further, they should ensure they know these beers would be of interest to their guests, and serve their concept in an authentic manner.

More Beer Trends

Other beer-centric trend predictions include global beers, hazy IPA, beer cocktails, and beer with a hint of lime.

I’m confident you don’t need an explanation of each of these 2025 trend predictions. However, it’s smart to approach each with careful consideration before adding them to your menu.

To provide an example, consider flights that focus on each trend: three to four hazy IPAs, half-sized beer cocktails, or specialty global beers.

Focusing on beer cocktails, or beertails or hoptails as I’ve seen over the years, I’m somewhat skeptical how they’ll rise in popularity. In my experience, they’ve never quite “hit” throughout the years. But, maybe 2025 is the year.

As far as beers with a hint of lime, consider creating snack pairings that pair well with such beers. Snacking as a trend is expected to rise in 2025, so it’s wise to engage your kitchen team to come up with a snack menu for your bar.

Cocktails on Tap

While I don’t recommend cocktails on tap of keg cocktails for every concept, I have certainly crafted beverage programs that leverage this trend.

And, in fact, I don’t consider these drinks to be a trend at all. In my opinion, cocktails on tap may not be ubiquitous, but they’re certainly no fad.

Why do I like cocktails on tap? For several reasons.

One of those is the speed of service, which benefits the team and the guest. While labor is necessary prior to service to prepare these drinks, kegged cocktails make up for all that effort. When the right cocktails are selected for the taps, they make it easy on the bar team to serve, and make it into the hands of guests in mere moments.

Another reason is the “novelty” of cocktails on tap. These drinks aren’t new yet many guests find the idea interesting, which piques their curiosity. Engaging guests is always good for business.

Now, think about bars and restaurants that include self-pour walls as a core feature of the concept. Guests have shown they’re interested in pouring their own beers and wines from pour walls. There are myriad reasons, including trying before they commit to something new to them. This applies to cocktails as well, and kegged cocktails are perfect for self-pour concepts.

Finally, they work for just about every category of bar, from casual neighborhood watering hole to upscale cocktail bar. When an operator focuses on glassware, garnish, and presentation, a cocktail on tap can appeal to even the most discerning cocktailian.

Image: Microsoft Designer

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Cocktails with edible flowers and dehydrated fruit for garnishes
by David Klemt David Klemt No Comments

Are “Substituters” Leading NA Growth?

Are “Substituters” Leading NA Growth?

by David Klemt

Cocktails with edible flowers and dehydrated fruit for garnishes

No-ABV, low-ABV, or full strength?

Revelations shared by the IWSR recently suggest that the very generation driving non-alcohol growth may also be driving traditional beverage alcohol growth.

At least, according to the IWSR, a particular generation is over-indexing in the non-alc category and “full-strength” categories such as rum, whisky, Champagne, brandy and Cognac, and RTDs.

This is because Millennials—there it is, the big reveal—appear to be “substituters.” That is, as explained by the IWSR, much of this cohort consumes alcohol on some occasions, and non-alc beverages on others.

Now, before we proceed, let me get this out of the way: No generation is a monolith. While there’s value in understanding a given generation’s behavior, it’s important to understand that we can really only do so in broad terms.

That said, broadly speaking, members of the Millennial generation appear to be driving the growth of non-alc overall. In comparison to other generations, Millennials are consuming more non-alc spirits, more non-alc beer, and more non-alc wine.

Of course, there’s another caveat I must address: Less than half of Gen Z is of legal drinking age. So, when compared to that generation, the numbers are a bit skewed.

Generally speaking, non-alc is growing across the board in the US. What was once relegated to two or three low-alc beers and barely considered “mocktails” for many, many years is now a viable category. The category has gone from an afterthought to inspiring entire alcohol-free bar concepts, and it hasn’t taken long to achieve this growth.

Numbers

When I say Millennials are consuming more non-alc than other generations, what does that mean? Is the difference subtle, or is it eyebrow raising?

Per IWSR data, it’s the latter.

Last year, 45 percent of all non-alc beer drinkers in the US were Millennials. That number has jumped to 61 percent in 2024. Change focus to non-alc spirits and Millennials make up 66 percent of overall US consumers. That number is 59 percent when we look at who’s drinking non-alc wine.

For some context, just 22 percent of non-alc beer drinkers in the US are Gen X. Take a look at legal-drinking-age Gen Z and that number shrinks to seven percent. Again, though, most of Gen Z isn’t yet LDA.

So, back to substituters. Just under half of all Millennials, according to IWSR findings, vacillate between non-alc and full-ABV. It would appear, then, that Millennials are the most interested in exploring and experimenting with non-alc beverages.

For obvious reasons, this makes it clear that operators need to do more than just toss a couple of alcohol-free beers and sugary zero-proof cocktail concoctions on their menus.

Further, and I know I’m repeating myself, operators need to ensure they deliver the same level of service and guest experience for those abstaining from alcohol as those ordering traditional adult beverages. Failing to do so can alienate guests who choose to not consume alcohol but want to visit and socialize at a bar or restaurant. Why would they return if they receive what they perceive to be a lower level of service?

IWSR’s deep dive and data make it clear that operators need to give the non-alc element of their menu due consideration. The category is growing, interesting is increasing, and it’s smart business.

To review this data yourself, follow this link.

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by David Klemt David Klemt No Comments

2024 Datassential 500: Guest Perception

2024 Datassential 500: Guest Perception

by David Klemt

An optical illusion consisting of black and white stripes that may be curving upward and outward

Last week we took a look at the data-driven findings that identify, organize, and rank chain restaurants in the US, forming the Datassential 500.

This annual report sorts the 500 top-performing chains by segment. Further, Datassential identifies the top chains by both number of units, and sales.

In doing so, the F&B intelligence agency uses hard numbers to determine numbers one through 500.

But what about guest perception? Unit and sales growth may appeal to board members, investors, executives, and other hospitality professionals, but what matters to the people their restaurants serve?

It’s doubtful that even the staunchest fans of a particular restaurant chain are aware of or, frankly, care about how many locations they operate. Nor are they likely all that concerned about their annual revenue, unless they’re an investor as well.

To get to the bottom of how the public perceives chain restaurants in the US, and what brands they rank at the top, Datassential looked at six key metrics.

Those metrics? Food quality, service, experience, affordability, value for dollar, and net promoter score.

While the results aren’t exactly shocking, they’re quite telling. A handful of US chains dominate the consumer-facing metrics. And for the most part, they’re not among the top ten of the 2024 Datassential 500.

Anyone interested in reading this year’s report can do so via this link. Alright, let’s check out how the public ranks US chain restaurants.

Perception Matters

To make the comparisons easier, the top 10 US restaurant chains by unit and by sales are below.

Top 10: Total Units

  1. Subway
  2. Starbucks
  3. McDonald’s
  4. Dunkin’
  5. Taco Bell
  6. Domino’s Pizza
  7. Burger King
  8. Pizza Hut
  9. Wendy’s
  10. Dairy Queen

Top 10: Total Sales

  1. McDonald’s
  2. Starbucks
  3. Chick-fil-A
  4. Taco Bell
  5. Wendy’s
  6. Dunkin’
  7. Burger King
  8. Chipotle
  9. Subway
  10. Domino’s Pizza

Guest Perception

Okay, so those are the top performers in the US, by the numbers. Units were counted, sales were analyzed.

Now, these are the brands that guests feel are at the very top, organized into six categories.

Food Quality

  1. Texas Roadhouse
  2. Chick-fil-A
  3. Longhorn Steakhouse
  4. Cheesecake Factory
  5. Ruth’s Chris Steak House

Service

  1. Chick-fil-A
  2. Texas Roadhouse
  3. Longhorn Steakhouse
  4. Cheesecake Factory
  5. In-N-Out Burger

Experience

  1. Chick-fil-A
  2. Ruth’s Chris Steak House
  3. Texas Roadhouse
  4. Maggiano’s Little Italy
  5. In-N-Out Burger

Affordability

  1. Little Caesars
  2. Freshii
  3. Papa Murphy’s
  4. Cici’s Pizza
  5. Pollo Tropical

Value for Dollar

  1. Papa Murphy’s
  2. Little Caesars
  3. Cici’s Pizza
  4. In-N-Out Burger
  5. Del Taco

Net Promoter Score

To determine this ranking, survey participants were asked “How likely would you be to recommend this chain to friends and family?”

  1. Chick-fil-A
  2. Texas Roadhouse
  3. In-N-Out Burger
  4. Longhorn Steakhouse
  5. Portillo’s Hot Dogs
  6. Cheesecake Factory
  7. The Capital Grille
  8. Ruth’s Chris Steak House
  9. Maggiano’s Little Italy
  10. Topgolf

Subway and McDonald’s may dominate the list in terms of number of units and annual sales, but Chick-fil-A dominates in one key area. Word-of-mouth marketing still matters, undeniably, and, according to Datassential, most consumers perceive Chick-fil-A as the restaurant chain to recommend.

Followed by Texas Roadhouse and In-N-Out Burger, smaller brands are delivering on important operational elements. Consumers at large appear to favor these brands when it comes to stretching their dollars, along with how they perceive the quality of food, the level of service, and the overall dining experience.

Operators interested in scaling their business need to set aside ego and desire, and look at their business objectively. They need to ensure they’re nailing the fundamentals and have the right systems in place first.

Image: BP Miller on Unsplash

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An AI-generated hotel bar area with seating next to large windows, with numbers superimposed over the image
by David Klemt David Klemt No Comments

Modern Day Revenue Management for Hotels

Modern Day Revenue Management for Hotels

by Doug Radkey

An AI-generated hotel bar area with seating next to large windows, with numbers superimposed over the image

Note: Image generated by artificial intelligence.

The landscape of hotel revenue management has evolved significantly in recent years, driven by both tech advancements and changing consumer behaviors.

With this in mind, I think now would be a good time to explore these current trends, tools, and strategies in hotel revenue management.

Below, I outline the importance of data analytics, dynamic pricing, and AI in maximizing revenue today, and as we move forward in this industry.

The Evolution of Revenue Management

In the early days of the hotel industry, revenue management was a relatively straightforward affair.

While the overall concept of revenue management originated in the airline industry in the 1980s, it was later adapted by hotels. Traditional practices relied primarily on static pricing models, where room rates were set based on the season, room type, and booking lead time. Rates were adjusted infrequently (often just a few times per year), and they were influenced mainly by historical data documented internally, and the intuition of revenue managers.

Hotels used simple tools such as spreadsheets and reservation logs to track bookings and manage their inventory. The focus was on achieving high occupancy rates rather than maximizing revenue per available room (RevPAR) and the other key metrics that we follow today.

Discounts and promotions were applied sporadically, without a deep understanding of market segments or consumer behavior, to help drive revenue during off-season periods. Group rates and corporate contracts were negotiated based on fixed rates, with little consideration for fluctuating market conditions.

From Static Pricing to Dynamic, Data-Driven Strategies

The transition from those early days to modern revenue management practices began in the late 1990s and early 2000s, driven by tech advancements and increased competition in the accommodation space.

The advent of online travel agencies (OTAs), real-time booking systems, and sophisticated data analytic tools transformed how hotels approached their pricing and inventory management.

So, what’s the modern approach?

  • Data-Driven Decision Making: The incorporation of advanced data analytics revolutionized revenue management. Hotels began leveraging large datasets from various sources, such as reservation systems, customer relationship management (CRM) software, and market intelligence platforms. This data-driven approach enabled more accurate forecasting, segmentation, and pricing strategies. Revenue managers could now analyze booking patterns, guest preferences, and demand fluctuations to make informed decisions.
  • Dynamic Pricing Models: Dynamic pricing involves adjusting room rates continuously based on real-time market demand, competitor pricing, and other external factors. This approach allows hotels to maximize revenue by selling the right room to the right guest at the right time and price. Dynamic pricing models consider various data points, including booking pace, market trends, weather, and special events, to optimize their recommended rates.
  • Automation and Real-Time Adjustments: Modern revenue management systems (RMS) introduced automation, allowing hotels to implement real-time rate adjustments. These systems use algorithms and machine learning to analyze data and update rates across all distribution channels automatically. This automation minimizes manual errors, and ensures consistent pricing across platforms, enhancing the hotel’s ability to respond to market changes quickly.
  • Focus on Total Revenue Management: While traditional revenue management focused primarily on room revenue, modern practices embrace a more holistic view known as total revenue management. This approach considers all revenue streams, including food and beverage, spa services, and other on-property offerings. By optimizing pricing and promotions across all areas, hotels can now maximize total revenue and profitability.

The Importance of Data Analytics

Data analytics involves the systematic analysis of data to uncover patterns, correlations, and trends that inform strategic decisions.

Sounds fairly important, right? In the hospitality industry, data analytics helps you understand market dynamics, predict demand, and tailor your hotel’s offering to meet guest needs. This level of analysis is paramount for developing effective revenue management strategies that maximize profitability.

One of the primary functions of data analytics in hotel revenue management is demand forecasting. By analyzing historical booking data, seasonal trends, and external factors such as local events, weather, or economic conditions, hotels can predict future demand accurately. This forecasting through data analytics enables hotels to adjust room rates more dynamically, optimize inventory allocation more efficiently, and implement targeted marketing campaigns that drive results.

Modern analytics platforms have revolutionized hotel revenue management by providing sophisticated tools for data analysis, strategic planning, and dynamic pricing. Atomize RMS stands out as a prime example of an advanced analytics tool that leverages data-driven decision-making to optimize hotel performance through dynamic pricing. This cloud-based revenue management system (RMS) uses sophisticated algorithms and machine learning to provide real-time pricing recommendations, as well as market insights.

Atomize enables hotels to make informed decisions based on real-time market conditions and predictive analytics by leveraging machine learning and big data. This data-driven approach leads to more precise pricing strategies, optimized inventory management, and improved profitability.

Moreover, the system’s ability to automate and streamline revenue management processes reduces the risk of human error, and frees up time for hotel staff to focus on other critical aspects of operations, such as providing a memorable guest experience, and elevating service quality.

The Role of Artificial Intelligence (AI)

Artificial Intelligence (AI) has further revolutionized the field of revenue management in the hotel industry, offering advanced capabilities that enhance both efficiency and profitability. Another AI-powered RMS provider is Duetto Cloud’s Game Changer, designed to analyze large datasets, identify patterns, and make real-time decisions.

One of the key capabilities of an AI-powered RMS is the automated pricing optimization. The system monitors market conditions continuously and adjusts room rates based on real-time data, with limited rules in the back-end. This dynamic pricing approach allows hotels to capitalize on fluctuations in demand, ensuring that they are charging the optimal rate at any given time.

These accurate forecasts can enable hotels to plan more effectively, manage inventory, and allocate resources more efficiently.

For example, AI can help predict when a hotel is likely to experience high demand and adjust staffing levels accordingly, ensuring optimal service quality. Additionally, accurate forecasting helps in identifying potential periods of low occupancy, allowing hotels to implement targeted marketing campaigns and promotional offers to boost bookings.

Beyond pricing and forecasting, AI-powered RMS can also enhance the guest experience through personalization. By analyzing guest data such as booking history, preferences, and feedback, AI systems can tailor offers and recommendations to individual guests.

For instance, an advanced RMS can identify a guest’s preference for specific room types, amenities, or dining options and use this information to provide personalized packages or upsell relevant services.

As AI technology continues to evolve, its role in revenue management is expected to grow, offering even more sophisticated capabilities and insights for hotels. Embracing AI-powered RMS now is going to be essential for hotel operators who are looking to compete and win in today’s fast-paced and data-driven market.

Integrating Revenue Management with Other Hotel Operations

As mentioned above, modern hotel revenue management is moving away from the siloed approach of focusing solely on room-based revenue. Increasingly, that outdated method is being replaced by a more holistic perspective that encompasses the entire guest experience.

This shift necessitates cross-department collaboration, aligning revenue management with sales, marketing, and operations to create cohesive strategies that optimize total revenue. Integrating efforts across departments means hotels can enhance their revenue streams and also provide a seamless and enriching experience for their guests.

To maximize total revenue, hotels must look beyond room revenue to optimize ancillary revenue streams, such as food and beverage (F&B), spa services, events, and so much more. This approach, known as total revenue management (TRM), involves a comprehensive strategy that considers all aspects of the guest experience.

For example, coordinating F&B with revenue management ensures that the on-property restaurant reservations and event bookings align with the hotel’s overall occupancy and pricing strategies.

The obvious and ultimate goal of cross-department collaboration is to enhance the guest journey and experience. Aligning efforts across revenue management, sales, marketing, and operations ensures hotels can create a seamless and personalized experience for their guests.

This can include personalized room amenities, customized dining options, and exclusive access to hotel facilities. Engaging with guests before, during, and after their stay through targeted communications and personalized offers can further enhance their experience and encourage repeat visits.

Looking Ahead

As you can see, modern hotel revenue management has become an intelligent discipline driven by data analytics, dynamic pricing, and artificial intelligence (AI). These elements are really becoming a non-negotiable for optimizing revenue, enhancing guest experiences, and maintaining a competitive edge.

Data analytics provides deep insights into market trends, guest behaviors, and demand patterns, enabling more accurate forecasting and strategic decision-making. Dynamic pricing, powered by real-time data and AI, allows hotel operators to adjust room rates fluidly, maximizing revenue by responding to market conditions.

AI further enhances revenue management through advanced capabilities such as predictive analytics and personalized guest services, all of which streamline operations and improve efficiency when integrated with other departments within your hotel.

Looking ahead, the future of hotel revenue management promises exciting innovations and trends. As AI and machine learning technologies continue to advance, we can expect even more precise forecasting models, and highly personalized guest experiences. The integration of big data from diverse sources, including social media, online reviews, and IoT devices, will provide richer datasets for analysis, leading to more nuanced insights and strategic opportunities.

Additionally, the increasing importance of TRM and revenue per available guest (RevPAG) will encourage hotels to optimize not just room revenue but also ancillary streams such as dining, spa services, events, and more.

Move Forward Today

For hotel operators like yourself, you must embrace and invest in advanced analytics tools, AI-powered RMS, and dynamic pricing strategies.

Adopting a data-driven approach will position you to better understand your hotel’s market, anticipate demand fluctuations, and tailor your offering to meet guest expectations.

This proactive stance will not only drive revenue growth but also enhance your brand equity.

Stay ahead of the curve and adopt cutting-edge technologies and strategies to navigate the complexities of the modern market and ensure long-term success. Now is the time to invest in the future, leverage the power of data and AI, and lead your hotel to new heights of profitability and excellence.

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AI-generated image of a person carrying takeout bags from restaurant to their motorcycle
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Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

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

I have done this. Cargo straps required.

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

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

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

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

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

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

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

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

The State of Takeout and Delivery

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

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

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

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

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

But, again, is demand for delivery slipping?

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

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

Takeaway

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

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

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

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

Image: Microsoft Designer

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An Xbox One controller sitting on a Scorpion Gaming mouse pad
by David Klemt David Klemt No Comments

Game On: Datassential’s Midyear Report

Game On: Datassential’s Midyear Trends Report

by David Klemt

An Xbox One controller sitting on a Scorpion Gaming mouse pad

Brought to you by Xbox, Scorpion Gaming, and cool photography.

The 2024 Midyear Trends Report released by Datassential earlier this month contains an intriguing revelation that savvy operators can leverage.

There is, of course, interesting and useful information throughout. After all, Datassential conducted a survey of 1,500-plus US consumers, along with 400 US foodservice operators.

Surveying nearly 2,000 people is going to garner some helpful insights.

For example, we know that many people are concerned with their nutrition. Along with that comes reading nutrition labels. However, US consumers appear to throw that behavior to the wayside when dining out.

According to Datassential’s survey results, 62 percent of consumers in the US read the nutrition labels on new items before selecting them for purchase at grocery stores. But nearly that same percentage of consumers, 58 percent, don’t consider diets or nutrition when choosing where they’re going to eat.

What that says to me is that people still viewing dining out as a treat or an occasion. Most people, when treating themselves and others, see it as an escape. An escape from the stresses of work, of life, and from eating “boring” foods.

People are still driven to leave home to gather, socialize, and have fun. And restaurants and bars still play a major role in meeting those needs and desires.

Negative and fear-mongering stories may be getting all the clicks, but Datassential’s findings are much less on the doom-and-gloom side of the equation. Per their midyear report, nearly 90 percent of US restaurant operators have seen increases in traffic (46 percent) or had their traffic remain the same (42 percent) so far this year. Just 12 percent of operators reported decreases in traffic, according to Datassential.

Game On

Now, let’s look at the data in this report that really caught my attention.

The Datassential report reveals that 61 percent of survey respondents play video games. Citing Entertainment Software Association data, close to 200 million Americans are gamers. Going further, gaming spans all ages. Last year, gamers spent well over $50 billion on this particular hobby. MarketWatch claims even combined, the global sports and movie industries don’t outperform video games financially.

Of all respondents to the Datassential survey, a quarter aren’t gamers, and 15 percent “used to” play video games. That latter group consists mainly of Gen Xers. And, hey, fair enough—some people don’t enjoy or have time for video games.

In contrast, however, 23 percent of survey respondents label themselves “avid gamers.” Gen Z, Millennials, and men make up the majority of this group of consumers.

Almost 40 percent (38%) classify themselves as “casual.” This group consists mainly of Gen X, Gen Z, and women.

Alright, so…what does this have to do with restaurant operators? Well, gamers spent $57 billion just on video games. Per Datassential, 45 percent of survey respondents have made F&B purchases after consuming video game-related ads or content. This is true of 63 percent of US Gen Z consumers, and 56 percent of US Millennials.

These stats tell me that gaming pays not just for console manufacturers and game producers, but also for F&B operators. It would seem to me, then, that operators with concepts that can leverage video games in an authentic manner should give strong consideration to doing so.

So, game on?

Image: Jose Gil on Unsplash

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Elote en vaso, or vaso de elote, also known as street corn in a cup, on a bar
by David Klemt David Klemt No Comments

Soup Season: Transforming Comfort Classics

Soup Season: Transforming Comfort Classics

by David Klemt

Elote en vaso, or vaso de elote, also known as street corn in a cup, on a bar

Elote en vaso or vaso de elote, also known as “street corn in a cup.”

The latest and greatest from Campbell’s Foodservice is all about operators making the most of cooler weather by maximizing soup season.

If you read KRG Hospitality articles regularly, you’re likely aware that we like the helpful information Campbell’s makes available. For example, I’ve written articles that share their tips for leveraging nostalgia, crushing it with LTOs, and 2024 culinary trends.

Their newest tips aim to help operators succeed with soup. Further, much of Campbell’s Foodservice’s tips are in direct response to Datassential and Technomic data. In fact, Campbell’s references Technomic’s Soup & Salad Consumer Trend Report directly.

To be sure, the first bit of advice that Campbell’s shares is the most obvious: Leverage seasonal flavors. In this case, we’re talking fall and winter flavors.

You may already see stores where you live and operate unleashing Halloween decorations. I know I have; it may be 105 degrees in Las Vegas as I write this, but people are getting into an autumnal mood.

Of course, when you take advantage of seasonality for LTOs or menu updates, it’s important to let your guests know.

“Calling out seasonal items on your menu demonstrates the operator is being relevant and using ingredients that are in season,” says Campbell’s Foodservice Executive Chef Gerald Drummond. “From a consumer standpoint, that’s something that they really look towards.”

We agree wholeheartedly. Going deeper, we recommend working with local suppliers to procure seasonal ingredients, and calling that out as well.

Another tip comes from Datassential and Technomic insights. Three in ten younger consumers would like to see soups that feature plant-based proteins. And around half want at least one vegetarian-friendly soup on a menu.

The Standout Tip

When you’re through reading this article, I encourage you to scroll back to the top, click the “soup season” link, and read this Campbell’s Foodservice report for yourself.

That way, you’ll see all of their latest tips for getting the most out of seasonal soups.

However, I’m going to share the tip that stood out the most to me: transforming comfort food dishes into soups. Hence, the image at the top of this article: vaso de elote, or elote en vaso. That dish translates to “street corn in a cup” from Spanish.

Now, elote or street corn is undeniably a comforting street food. If I see it on a menu, I’m going to order it. Were I to see street corn in a cup, particularly if it came with the presentation at the top of this article, I’m going to order it.

So, if a culinary team were to transform street corn in a cup into street corn in a cup of soup, I’m all in.

Think about your concept, the approach to cuisine, and the community you serve. Then, think about the comfort dishes that work well with your concept and resonate with your guests.

In their report, Campbell’s Foodservice recommends beer cheese soup, of which I’m a fan. They also suggest lasagna soup (I’d try it), and chicken pot pie soup (again, I’m down).

Real-Word, Professional Advice

I asked our chef consultant Nathen Dubé for a couple of quick tips for transforming a comforting food dish into a soup. (By the way, you can book a call with him to discuss your menu or kitchen here.)

“I would look at the overall profile of the dish, and then decide if you’re going to combine everything into a puree or a broth,” says Nathen.

Then, the kitchen team needs to decide “which ingredients would be incorporated, and which could be left whole afterwards for texture, and stronger stand-out flavours.” As he explained to me, some ingredients definitely translate better to slow cooking versus finishing towards the end of the process.

With that advice given, take a look at your menu. Do you have some comfort foods that would be intriguing to guests in soup form? What about some of your signature dishes?

Once you’ve determined which dishes to transform into seasonal, LTO soups, engage your kitchen team. They’ll likely be excited to do something new, and show off their culinary talent.

Some people may harbor the misconception that soup isn’t exciting. I think creative operators and culinary teams can disabuse skeptical guests of this notion. Cheers!

Image: Jarritos Mexican Soda on Unsplash

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Eliminate Hesitation: Streamline Your Menu

Eliminate Hesitation: Streamline Your Menu

by David Klemt

An AI-generated image of a person holding a stopwatch at a restaurant table while guests read the menu

That’s an interesting stopwatch layout. Also, we don’t recommend sitting with guests and timing them as they review your menu.

Operators should develop an understanding of the concept of the paradox of choice to understand how American guests make menu item selections.

So, allow me a crash course in this psychological concept. There are two prevailing components to the paradox of choice. One is that the more options one has, the less satisfaction they’ll feel upon making a choice. The other is that when presented with an overwhelming number of choices, also known as “choice overload,” people often just fall back to their usual choice rather than trying something new.

A quick note: The paradox of choice isn’t the same as the fallacy of choice. That concept relates to presenting someone with limited, extreme choices to drive them to ignore all of the other choices they could consider and select.

Understanding the paradox of choice will help an operator tackle a key task: streamlining their menus.

A survey from US Foods earlier this year contains quite a few intriguing revelations. Among their findings, one stands head and shoulders above the rest, at least to me: Almost 80 percent of Americans find deciding what they want to order at a restaurant difficult. Further, one factor outpaces all others when it comes to difficulty choosing.

Hence, my explanation of the paradox of choice at the top of this article.

Menus are too Big

There are two key factors making it difficult for Americans to choose what to order at a restaurant. Nearly a quarter of respondents—23 percent—indicate that they’re simply picky people. Alright, fair enough.

But the main factor, unsurprisingly, is that restaurants are presenting guests with too many options. That’s according to 54 percent of survey respondents. Quick math tells me that’s more than double the picky eaters.

Another 15 percent of US Foods survey respondents, however, say they have no trouble deciding what they want to order. Eight percent say they’re indifferent, which is an entirely different problem. A guest who’s indifferent to the restaurant and menu isn’t an engaged guest, and that’s not going to inspire loyalty and repeat visits.

Of course, no operator can please everyone, and some people aren’t going to be blown away no matter how good the food, drinks, and service can be.

So, does this mean that Americans are indecisive, facing paralysis whenever a servers asks for their order? Well…maybe. We have a lot going on, and “overwhelmed” would describe many of my fellow Americans right now.

However, the real culprit is menu size. In trying to please and retain guests, some operators are loathe to shrink their menus.

Most KRG clients can attest to the following: the president of our agency, Doug Radkey, prefers a smaller, streamlined menu. In fact, he prefers menus not pass the 25-item mark. Given his druthers, Radkey favors 12 to 15 items.

There are several reasons for this preference. Chief among these are controlling and reducing labor and food costs. (Radkey prefers to control costs rather than cut them, realistically.) Other reasons are less strain on the back of house, easier cross-utilization of ingredients, consistency, and reduced ticket times.

We can also add improving guest satisfaction to the list. On average, an American restaurant guest takes nine minutes to decide what they want to order at a restaurant. Streamline and shrink the menu, and this number should fall, while satisfaction rises.

Anyone should see that a smaller, sharper menu represents wins across the board.

AI image generator: Microsoft Designer

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Text, Email & Social Media Marketing

Text, Email & Social Media Marketing: Which is Best?

by David Klemt

A woman wearing a black-and-white-striped top checking her smartphone

Text-message marketing versus email marketing: which is best for your business?

One of the key topics that SevenRooms addresses in the first of their annual trends report is how operators can make the most of their marketing efforts.

Today, the primary marketing channels are text/SMS, email, and social media. An operator needs to understand their guests to know which will be most effective for their business.

Or, more accurately, an understanding of one’s guests is the key to leveraging a mix of those channels effectively.

An operator must consider their target audiences, and how they tend to engage with brands. Further, consideration must be given to people’s relationships with their phones.

As a real-world example, one of our clients’ guest pools skews significantly toward Baby Boomers. When discussing marketing strategy, the client expressed a concern when text marketing came up. They stated that their older guests would likely push back against this form of marketing.

However, no generation is a monolith. Therefore, I’ll be speaking in generalities when it comes to generational cohorts and their behavior.

Marketing Channel Engagement

Generally speaking, younger generations don’t seem to find text marketing invasive. Younger consumers are also used to engaging with and discovering brands and businesses via social media.

In contrast, an operator may find that their older Gen X and Baby Boomer guests prefer email marketing. It’s important to bear in mind that older generations also consume social media content. For example, SevenRooms findings show that 24 percent of Gen X and Baby Boomers can be influenced to visit a restaurant via F&B posts. However, these generations appear to engage with menu posts from restaurants they already follow.

That last bit of information tells me that older guests follow restaurants they’re considering visiting or have visited previously. Per SevenRooms data, the same goes for Millennials. That said, 43 percent of this generation are influenced by posts that showcase a restaurant’s personality.

Interestingly, just over half of Gen Z is influenced via video content from businesses they don’t already follow. These accounts are pushed to them via a platform’s engagement and discovery algorithms.

With the caveat that I’m painting different generations with broad strokes, posts that show off the menu may work best to engage older consumers. Posts that illustrate the personality of a brand and its team may resonate best with Millennials, and video content is king for grabbing the attention of younger consumers.

Businesses targeting a mix of consumers will want to develop a varied social media strategy. Content should consist of still photos and video that show off menu items, team members, and what guests can expect during a visit. Engagement will show an operator which posts are resonating the most with their followers and guests.

So, which marketing channel is best? All of them, when combined strategically.

An Effective Mix

Speaking of developing an effective strategy, SevenRooms asked operators about their social media marketing results.

Since the point behind marketing is to increase bookings to boost traffic and revenue, SevenRooms looked into which social media content achieved the best results.

Nearly 40 percent of operators surveyed said that organic posts result in the most bookings. This is followed by paid social media advertising, at 33 percent. Just over a quarter of operators surveyed pointed to influencer content as driving the greatest number of bookings.

One percent of operators say they don’t track their social media marketing results. For obvious reasons, this isn’t part of a winning strategy. If the results of an operator’s marketing efforts can’t be tracked, how can they know what works, and if they need to change an element of their strategy (such that it is)?

Nuance

As SevenRooms makes clear in their 2024 Restaurant Trends and Diner Expectations report, a multi-channel marketing strategy is a key to success.

Results will boil down to more than texting younger consumers and emailing older consumers. SevenRooms suggests what we at KRG Hospitality would also recommend: nuance.

An actual strategy is necessary, and that means being intentional with each marketing channel.

For context, an operator is likely best served to keep marketing text messages short. So, think reservation availability due to cancellations or no-shows. Email is a marketing channel best suited to longer messages. When it comes to social media marketing, a restaurant or bar’s social accounts should be viewed as relationship-building avenues.

In closing, an operator’s multi-channel marketing strategy requires a multi-pronged approach. Each channel must be leveraged differently. Text marketing shouldn’t be used the same way as email marketing messages, and neither should be used in the same way as a brand’s social accounts. When it comes to those accounts, a mix of posts is most effective for reaching different types of consumers.

The real keys are for operators to know who they’re targeting, track their marketing efforts, and develop an understanding of their guests. Throwing things against the wall to see what sticks just creates a mess; operators must be intentional in their marketing and operations to convert guests and achieve long-term success.

Image: Andrea Piacquadio via Pexels

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SevenRooms Drops Extensive 2024 Report

SevenRooms Drops Extensive 2024 Report

by David Klemt

Guests dining in a light, bright restaurant featuring a glass ceiling and hanging plants

Today, we’re taking a look at the first-annual trends report from marketing and operations platform SevenRooms, which focuses on the guest experience.

To gain an understanding of the current state of affairs in America, SevenRooms analyzed the product data of more than 3,000 US clients. Further, the platform engaged over 250 operators, and 1,000 consumers.

The result is a data-rich report that offers helpful insights for operators.

Two findings are particularly interesting to me, and the team here at KRG Hospitality. One, it appears that Americans are back to seeking out their third spots. As a refresher, a third spot, space, or place is where one spends time when away from home or work. Consumers tend to be loyal to these places, making them part of their everyday or weekend routine.

Two, younger consumers are leading the way in terms of restaurant visits. Per SevenRooms, 38 percent of Millennials visit restaurants five or more times per month. Gen Z is also visiting restaurants frequently, with 24 percent visiting five times or more. However, that number climbs to 45 percent for Gen Z when it comes to three or four monthly visits. Among Millennials, 33 percent visit restaurants three or four times per month.

That tells us that younger consumers are eager to socialize, and restaurants can fulfill that desire. As savvy operators know, a person can eat or drink at home; food and beverages are just excuses to get out, hang out, and meet new people.

This also tells us that operators need to ensure they’re ticking several boxes to resonate with younger guests: value, convenience, and personalization. I’ll add that consumers have shown they want to support brands with values that align with their own.

There are many more insights in SevenRooms’ new report, which you can find below. To view the report in its entirety, click here.

SEVENROOMS RELEASES 2024 RESTAURANT TRENDS AND DINER EXPECTATIONS REPORT FOR THE HOSPITALITY INDUSTRY

Annual report gives an inside look at how restaurants are delivering better guest experiences and personalizing their marketing in the age of AI and automation

NEW YORK (August 6, 2024) – SevenRooms, the leading CRM, marketing and operations platform for growing restaurants, today released its first annual trends report, “2024 Restaurant Trends and Diner Expectations,“ highlighting how restaurants are filling the need for ‘third places’, connection spots outside the home and workplace, what consumers expect from their dining experiences, and how restaurants are leveraging AI and automation to keep diners coming back.

The study, commissioned through independent third-party research firm Censuswide, examines consumer and foodservice operator insights, alongside data from SevenRooms restaurant customers. It emphasizes the importance of restaurants understanding their guests and providing experiences and value to consumers, including marketing and tech trends that operators are paying attention to.

Diners Expect More From Restaurants

While it’s no surprise that diner expectations have evolved in recent years, consumers across generations and cities share key expectations when dining out — they’re looking for convenience, personalization and value from brands they trust. Restaurants must nail all aspects of the guest experience, from hospitality and service to ambiance and atmosphere, to transform diners into brand ambassadors and get them to bring their dollars back more often.

When looking across generations, Millennials are driving a dining resurgence – dining out most frequently with 38% saying they dine out more than 5x a month. They are seeking more from their restaurant visits, and are willing to spend more for elevated experiences, like theatrical elements or high-end items like caviar. For these experiences, Americans are willing to spend up to $63 per person with 45% of Gen Zers open to paying even more. As diners focus on the quality over quantity of their experiences, that means restaurants must do more to keep those diner dollars. Dining upgrades consumers are willing to spend more fall into three categories – experiential, luxurious and personal, including:

  • Experiential (e.g. tableside martini cart; fish presentation or deboning, etc.)
    ○ Dallas – a menu item with some theater (86%)
    ○ Washington DC – a menu item with some theater (71%)
  • Personal (e.g. birthday dessert; welcome drink)
    ○ Chicago – a mocktail or personalized item (55%)
  • Luxurious (e.g. caviar, freshly shaved truffles, seafood tower)
    ○ Los Angeles – high-end items like caviar (55%)
    ○ New York – high-end items like caviar (48%)

Outside of these experiential offerings, restaurants must also capitalize on influential factors that bring diners back. For example, 34% of Gen Zers want personalized surprises in service like a free dessert. Meanwhile, 26% of Millennials care about the ease of making a reservation and 24% of Gen Xers consider the rapport they develop with front-of-house staff. Tailoring guest experience and service helps operators turn one-time diners into loyal customers.

“New consumer demands are pushing restaurants to find the right balance between hospitality and automation to create the experiences guests crave and return for,” said Joel Montaniel, CEO & Co-Founder at SevenRooms. “Diners want both access and recognition when spending their hard-earned dollars, and restaurants must embrace new strategies – and technologies like AI and automation – to enhance hospitality at every touch point. Whether leveraging platform data to personalize diner experiences or power marketing and retention programs, technology and data serve as a vehicle to execute hospitality that guests remember and return for. When technology is used effectively, it allows operators to focus on building deeper connections and delighting guests, one experience at a time.”

Loyalty is Never One-Size-Fits-All

In the U.S., there was a 21% year-over-year increase in reservations comparing Q1 2023 to Q1 2024 and restaurants are looking to a promising future. Whether operators are focused on opening new locations or revamping their social media marketing efforts, one factor remains the same – establishing personal relationships with diners is the strongest way to build and maintain loyal customers.

Consumers have a strong intent to dine with their favorite brands. If a guest can’t get a reservation at their preferred restaurant, 39% of guests look for a sister restaurant to dine at, and 27% check other sites for the same restaurant.

Cultivating loyalty is critical. Loyalty is not a one-size-fits-all effort and diners have different interests when it comes to the benefits they seek out from loyalty programs. Restaurants need to understand their diner demographics to curate operations and offerings, getting their guests to not only return more often but spend more in the process.

38% of diners who would spend $89-$126 on an average night are looking for exclusive VIP events, while 33% of consumers who dine out 7-8 times per month want VIP access to specialty seating areas. Breaking down generational differences:

  • 72% of Gen Zers care most about free menu items
  • 30% of Millennials care most about VIP access to specialty dining areas
  • 1 in 5 Gen Xers and Baby Boomers want early access to reservations

Genuine, Tailored Marketing is Critical to Success

When it comes to marketing, authenticity and personalization reign supreme for consumers. Guests want to be known by their favorite restaurants, and restaurants want to know and understand their guests. To reach these consumers, and serve up personalized marketing that makes guests want to return, restaurants have to use all the tools in their arsenal – from social media to email and text marketing automation – to create high-touch communications that are both authentic and personal.

79% of restaurant operators spend the majority of their marketing budget on social media. Their top social media goals are to drive bookings or online orders (39%), increase brand awareness (29%) and communicate with their audiences (29%). But not all content is created equal – 39% of operators say that organic posts drive the most bookings to their restaurants. Restaurants that showcase their personality – highlighting their team, food and drinks and atmosphere – will win with consumers as they look for more genuine content from brands.

Most diners like hearing about restaurant promotions and offers via email and text, and aren’t as interested in social media DMs or phone calls, but specific preferences vary by generation. 41% of Gen Zers prefer text marketing, whereas 38% of Millennials and 37% of Gen X prefer email marketing.

With targeted Email Marketing, the data report notes that operators see 23% higher open rates and 28% higher click-to-open rates, generating 2x more revenue per email. Text marketing is fairly new for restaurants, but has huge potential, with an average open rate of 98% and $1.64 average reservation revenue generated per text message on SevenRooms. For one SevenRooms customer, Fabio Viviani Hospitality, it drove $220,000 in revenue and 3,000 new guests in just 4 months.

“The biggest thing that excites me about text messaging is that it’s very hard to ignore. When our phones beep, we are just driven to look at them,” said Harry Kaminski, CMO at Fabio Viviani Hospitality. “It’s easier to ignore an email than it is a text.”

Artificial Intelligence (AI) Comes into Play

Every industry today is using AI and automation in some way to streamline their operations and help staff work more efficiently – and the same is true for the restaurant industry. 70% of operators surveyed said they use artificial intelligence in some way to run their business, including:

  • 35% – Processing reservations
  • 34% – Inventory management
  • 33% – Data analytics
  • 27% – Scheduling
  • 26% – Dynamic pricing

But there is room to grow with AI, with only 16% saying they use it to create marketing collateral and 15% for staff hiring and training. With personalized marketing a large focus for operators in 2024 and beyond, as well as hiring and retaining staff to deliver on high-touch hospitality, operators have an opportunity to use AI more effectively.

“AI elevates our storytelling around data,” said Kelly MacPherson, Chief Supply Chain and Technology Officer at Union Square Hospitality Group. “We have a wealth of data at our fingertips, but this can create analysis paralysis. With AI, we can more efficiently synthesize the data, create stories about what’s happening, why it’s happening, and what we can do about it, and then present these stories to our teams in a digestible format with actionable next steps.”

For more information about SevenRooms and to download the full report, please visit here.

About SevenRooms

SevenRooms is a CRM, marketing and operations platform for growing restaurants in the hospitality industry. From Michelin star gems to local favorites, the all-in-one platform helps restaurants increase sales, delight guests, and keep them coming back, automatically. The full suite of products includes reservations, waitlist and table management, review aggregation, referrals, email marketing, and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures and PSG, SevenRooms has more than 10,000 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, Union Square Hospitality Group, Australian Venue Co., Maple & Ash, The Wolseley Hospitality Group, Dishoom, Groot Hospitality, MLSE, Live Nation and Topgolf.

Research Methodology

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 1,004 U.S. consumers. Fieldwork was undertaken between March 4-11, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 16+).

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 251 U.S. operators (hospitality decision-makers). Fieldwork was undertaken between March 4-19, 2024. The survey was carried out online. The figures have been weighted and are representative of U.S. hospitality operators.

SevenRooms provided anonymized internal data representative of U.S.-based restaurants using the SevenRooms platform and surveyed a sample of operators at various restaurant sizes and types across the U.S. from March-May 2024.

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Campbell’s Shares Tips for LTOs

Campbell’s Shares Tips for LTOs that Generate ROI

by David Klemt

A well-crafted chicken sandwich with pickles, lettuce, and sauce, served next to a basket of French fries

Yes, the Chicken Sandwich Wars are still going strong in 2024.

We appreciate Campbell’s Foodservice’s reports and posts, and their most recent insights address how operators can succeed with LTOs.

For example, our look into their tips for leveraging nostalgia is here. And our thoughts on Campbell’s Culinary TrendPulse 2024 report are here for your review.

This time out, Campbell’s Foodservice, utilizing data from Technomic, Datassential, and other sources, is tackling LTOs.

If you’re a regular reader of KRG Hospitality’s industry insights, you know we love an LTO—if an operator executes it effectively. Along those lines, you probably also know that we view Taco Bell as a leader in the industry when it comes to leveraging the power of LTOs.

Not only does the QSR giant know what their guests want, they know how to generate demand. In fact, Taco Bell understands the power not just of LTOs but of tying them to their subscriptions. Take, for example, their Taco Lover’s Pass and the Toasted Breakfast Taco menu drop.

When approached with thoughtful consideration, well-executed LTOs are a crucial element of an operator’s marketing and branding strategy. They drive traffic and sales, boost guest engagement and loyalty, and attract attention from first-time guests.

Of course, crafting a gainful LTO—gaining profits, loyalty, and positive public perception—can be easier said than done. However, there are a number of steps you can take to get the ball rolling and come up with one that reflects your brand, and resonates with guests.

Four Steps

Kicking off their tips, Campbell’s Foodservice recommends keeping LTOs simple. As they say in their report, which you can read here, operators need not “reinvent the wheel” when developing these promotions.

You can differentiate an LTO menu item from its standard counterpart in a number of simple ways. A few examples are using a unique cooking process, crafting a limited-edition sauce, and featuring a distinctive and specific topping or two.

Another tip is to do your best to offer LTOs that embrace current trends. While sharing these tips, Campbell’s cites Datassential and the revelation that just 20 percent of all LTOs are recurring. That means that the vast majority of LTOs are new creations, not stalwarts like the McRib. To draw the attention of a wider swath of guests, feature regional and local items and flavors. Per Datassential, 70 percent of guests are interested in such LTOs.

Speaking of attention, operators should learn how to take and edit attractive F&B images. Or, as Campbell’s says, “make LTOs pretty.” Per Datassential, roughly a third of consumers will try an LTO if it looks appealing in an advertisement or in-store imagery.

Finally, and this one is crucial as it embodies the previous three tips, leverage seasonality. It’s currently summer, so what can you add in the way of flavor to an existing item? Is that item regional and locally sourced? Will photographing it and crafting a sharp post communicate the season and inspire a bit of FOMO? These questions can help guide your approach to crafting profitable LTOs.

Oh, and to help you get started, I’ve shared Campbell’s season flavor suggestions below. Cheers!

Campbell’s Foodservice Seasonal Flavors

Not only did Campbell’s share tips for succeeding with LTOs, they also provided several examples of seasonal flavors to inspire you and your team.

Since it’s July, I’ll start with their summer suggestions.

Summer: basil, blackberries, corn, cucumbers, peaches, tomatoes, watermelon, zucchini

Fall: artichokes, cranberries, edamame, parsnips, pears, pumpkin, sweet peppers, tomatillos, turnips,

Winter: butternut squash, persimmons, radishes, salsify (a root vegetable), sunchokes, sweet potatoes, tangerines

Spring: asparagus, fava beans, pea greens, rhubarb, snap peas, spring onions, strawberries

Campbell’s Foodservice sources:

  1. Foodservice and Hospitality: A strong LTO strategy helps operators retain and grow their customer base (March 2024)
  2. Datassential: Limited Time Offers Keynote Report
  3. Technomic: 162 Best-in-Class LTOs for 2023
  4. Food & Drink Resources: A Limited Time Offer Strategy For Restaurants
  5. Your Guide to Seasonal Fruits and Vegetables, The Spruce Eats
  6. Datassential: State of the LTO 2024

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Want to Leverage Nostalgia? Spin It

Want to Leverage Nostalgia? Put Your Spin on It

by David Klemt

A recent report from Campbell’s Foodservice—along with supporting data from external sources—supports what many operators assume about food trends.

Our dive into Campbell’s Culinary TrendPulse 2024 report is here for those who want to take a look. Anyone who wants to download a copy of the report for themselves can click here.

However, I’m referencing a fresh, quick-hit report from Campbell’s. While it only takes a handful of minutes to read, it’s chock-full of useful insights.

In particular, this latest menu trend analysis looks into succeeding with nostalgia. Citing a study from Symrise in their post, 70 to 76 percent of guests ages 22 to 65 cherish nostalgic items.

Put simply, that translates to a truth most operators know: guests of all ages like comfort foods. This really doesn’t need much explanation. Comfort foods are—insert shocked Pikachu face here—comforting. And I think we’re all seeking comfort these days.

So, yes, operators should—in an authentic manner—speak to and fill this guest desire. Authentically in this context means putting comfort foods on the menu that make sense. Doing this successfully requires menu programming that fits with the brand and within the venue’s theme. It also necessitates really knowing your guests and what they expect.

For example, will a particular restaurant’s guests find mac and cheese comforting? Will they stop scanning the menu when they come across pozole? What about cacio e pepe or beef braciole? How receptive will they be to sukiyaki?

A sharp operator should know their guests’ tastes better than just about anyone. Therefore, they should know what foods they’ll find comforting.

However, there’s another way to succeed with nostalgia and enhance the guest experience.

“New” Nostalgia

There are a couple of ways to interpret the term “new nostalgia.”

One way is to tap into what foods, generally speaking since they’re not monoliths, different generations view as comfort foods. This can be something as simple as a certain candy or beverage from their childhood.

Another way is for an operator and their kitchen team to take a nostalgic dish and put their own spin on it. Using candy as an example again, a scratch-made interpretation of a treat to create a dessert may work.

Consider, as a real-world model for this approach, the Chocotini that Oceans Resort Casino featured toward the end of August in 2022. This was a direct response to the news that Klondike had retired the Choco Taco, a nostalgic treat for millions of people spanning multiple generations.

Of course, operators can also cross-utilize items to craft new menu items that tap into the craving for nostalgic comfort foods. These dishes can be permanent additions, seasonal menu updates, or LTOs.

Take a look at the image atop this article. Mac and cheese is a classic comfort dish. Now, feature it as a topping for a signature burger. That’s a prime example of new nostalgia.

Going farther, kitchen teams can combine nostalgia with another trend to get even more creative: global flavors. Are there tacos on the menu? Maybe bulgogi tacos featuring beef short rib, Korean slaw, and soy-lime dressing would resonate with guests.

I’m not saying anyone should menu these specific items. Rather, my aim here is to get operators and their kitchen and bar teams to put their heads together and create undeniable, irresistible takes on classics.

The key, again, is an understanding of the market, community, and guests. From there, it’s about getting creative and crafting dishes that guests can’t get anywhere else.

Image: Alex Haney on Unsplash

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The Top 10 Restaurant Chains in 2023

Check Out the Top 10 Restaurant Chains by Sales in 2023

by David Klemt

Pop art image of a giant money bag wrapped in golden chains looming over a city skyline

Well, I asked for an image of a giant money bag wrapped in golden chains, looming over a city skyline. Nailed it, AI.

Technomic data reveal the top-performing restaurant chains in the United States of America by sales volume in 2023, and number one won’t be a surprise.

For a bit of context and history, Technomic has been ranking the top chain restaurants in the US since 1978. And, according to reporting, the same chain has held the number-one spot every year.

Feel free to take a moment and make your guess as to which chain continues to lead all others each year.

Alright, if you guessed McDonald’s, congratulations.

Not only is McDonald’s the largest chain in the US by sales, the company outperformed the rest of the list by a significant margin. In 2023, McDonald’s generated more than $53 billion in sales via more than 13,450 units.

That’s nearly $20 billion more in sales than the chain that clinches the number-two spot. Going deeper, that’s more than double the sales of the number-three restaurant chain. In fact, McDonald’s generated just a $100 million dollars less than the sales of the second- and third-biggest chains combined.

Coming in at number two is Starbucks, achieving sales of $31.6 billion in the US from 16,466 units. Number three is Chik-fil-A, seeing $21.6 billion in sales through 2,964 stores.

The Top 10 Chain Restaurants in the US

Below, the full list of the ten top-performing restaurant chains in the US.

Perhaps unsurprisingly, quick- and limited-service restaurants account for the entirety of the top-ten list.

Notably, each of the ten chains saw sales growth last year, though that growth fluctuates from chain to chain. Some, like Chipotle, increased sales by more than 15 percent. For others, like Subway, growth was just over two percent.

Further, just two of the top-ten chains shuttered locations in 2023. Last year, Burger King reduced its US footprint by almost four percent. Likewise, Subway shrunk by two percent.

Judging by the sales numbers, closing stores last year may have proven to be a smart business decision for Burger King and Subway.

  1. Domino’s: $9 billion (up 3.1 percent)
  2. Chipotle: $9.9 billion (up 15.3 percent)
  3. Subway: $10 billion (up 2.1 percent)
  4. Burger King: $11 billion (up 6.6 percent)
  5. Dunkin’: $11.9 billion (up 5.7 percent)
  6. Wendy’s: $12.3 billion (up 5.1 percent)
  7. Taco Bell: $15 billion (up 8.2 percent)
  8. Chik-fil-A: $21.6 billion (up 14.7 percent)
  9. Starbucks: $31.6 billion (up 12.5 percent)
  10. McDonald’s: $53.1 billion (up nine percent)

Ending on one more interesting revelation, one chain moved up the list. Bear in mind, this is no small feat.

Domino’s, once number nine on the list, was passed by Chipotle in sales last year. We’ll see if anything changes when Technomic reveals next year’s rankings.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

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A cheeseburger with chicken patties, pizza, and steak on it
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Which Chains are America’s Favorites?

NRN & Technomic Identify America’s Favorite Chains

by David Klemt

A cheeseburger with chicken patties, pizza, and steak on it

Alright, which one of you maniacs out there is going to make this AI-generated chicken-patty-pizza-steak burger a reality and put it on your menu?

Toward the beginning of 2024, Nation’s Restaurant News collaborated with Technomic to identify America’s favorite restaurant chains.

To my understanding, this is the first such partnership between the independent foodservice publication and the foodservice intelligence platform.

Providing more than just a glimpse into America’s favorite chains, the rankings span several categories. For instance, the partnership between NRN and Technomic reveals the top QSRs, along with the country’s favorite fast-casual, family-style, and miscale restaurants.

However, the top three chains across more granular categories are also identified. Examples include America’s favorite chicken, pizza, burger, and Mexican restaurants.

In fact, I’m going to kick things off with the more specific, specialized categories. Then, I’ll move into the broader segments.

That said, I encourage you to review NRN‘s article revealing America’s favorite midscale, casual, QSR, etc. restaurants for yourself. Written by Joanna Fantozzi, the piece is full of valuable insights beyond simple rankings.

Further, you may find it interesting to compare these rankings to the results of BrandVue’s Most Loved Eating Out Brands 2023 report, which we reviewed here.

Cheers to NRN and Technomic! Here’s to hoping that this becomes an annual release.

Beverage or Snack

  1. Tropical Smoothie Cafe
  2. Smoothie King
  3. Jamba

Burger

  1. Culver’s
  2. In-N-Out
  3. Freddy’s Frozen Custard & Steakburger

Chicken

  1. Chick-fil-A
  2. Jollibee
  3. Raising Cane’s

Italian (FSR)

  1. Carrabba’s Italian Grill
  2. Maggiano’s Little Italy
  3. Mellow Mushroom

Mexican

  1. Chuy’s Tex-Mex
  2. Torchy’s Tacos
  3. Moe’s Southwest Grill

Pizza

  1. Papa Murphy’s
  2. Marco’s Pizza
  3. Cici’s Pizza

Sandwich

  1. Jersey Mike’s Subs
  2. Newk’s Eatery
  3. Jason’s Deli

Steak

  1. Ruth’s Chris Steak House
  2. Fleming’s Prime Steakhouse
  3. Longhorn Steakhouse

Varied Menu

  1. Seasons 52
  2. Bahama Breeze Island Grille
  3. Cooper’s Hawk

QSR

  1. Dutch Bros Coffee
  2. Topical Smoothie Cafe
  3. Smoothie King
  4. Cold Stone Creamery
  5. Chik-fil-A

Fast Casual

  1. Jersey Mike’s Subs
  2. Newk’s Eatery
  3. Jason’s Deli
  4. McAlister’s Deli
  5. Sweetgreen

Family Style

  1. First Watch
  2. Cracker Barrel
  3. Golden Corral

Casual

  1. Seasons 52
  2. Bahama Breeze Island Grille
  3. Bonefish Grill
  4. Longhorn Steakhouse
  5. Cooper’s Hawk

Midscale

  1. First Watch
  2. Cracker Barrel
  3. Golden Corral
  4. Shoney’s
  5. Black Bear Diner

Favorite Chains: Overall

  1. Ruth’s Chris Steak House
  2. Season 52
  3. Dutch Bros Coffee
  4. Fleming’s Prime Steakhouse
  5. Bahama Breeze Island Grille
  6. Longhorn Steakhouse
  7. Cooper’s Hawk
  8. Tropical Smoothie Cafe
  9. The Capital Grille
  10. Smoothie King

When it comes to this list of the top-ten favorite chain restaurants, Technomic data scores a number of crucial insights.

Click here to see how each of these industry leaders ranked in:

  • Service and hospitality
  • Unit appearance and ambience
  • F&B
  • Convenience and takeout
  • Value

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

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Slice of pepperoni pizza on a plate, on top of a table
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Slice Releases 2024 Report

Indie Pizzeria App Slice Releases 2024 Report

by David Klemt

Slice of pepperoni pizza on a plate, on top of a table

Still the most popular pizza topping.

It’s finally here, one of our favorite food-forward hospitality industry reports providing operators with valuable insider insights.

In keeping with tradition, Slice released their 2024 Slice of the Union report the day before National Pizza Day. Truly, this is one of the reports I most look forward to each year.

As one would expect, the fifth-annual Slice of the Union is stuffed with helpful information.

Before we dig in, a quick rundown of Slice. The platform serves all 50 states and works with more than 20,000 independent pizzerias. To put that in context, that’s a network of pizzerias in the US larger than Domino’s, Little Caesars, and Pizza Hut combined.

If you’re an independent pizzeria owner and you have yet to partner with Slice, I encourage you to look into doing so. Should a partnership with Slice be feasible, it should increase brand awareness, engagement, traffic, and revenue to a notable degree.

Seasoning

Kicking things off, Slice sprinkles a bit of trivia onto this year’s report.

Last year, consumers apparently gorged themselves on pizza. How much was eaten? Just over 29,000 tons.

Providing context, Slice says to imagine 11,572,064,136 pennies. That’s a Scrooge McDuck dive-worthy pile of coins.

However, one category of pizza experienced a drop in popularity last year. According to Slice, pizzerias saw a 5.21-percent dip in vegan pizza orders.

Now, on to toppings.

Toppings

There’s a reason I chose a photo of a single slice of pepperoni pizza for this article.

Operators who track their data probably already know what I’m about to say: According to Slice, pepperoni is the most popular pizza topping in the US.

This is followed by, in descending order of popularity, mushrooms, sausage, extra cheese, onions, bacon, and black olives. For those wondering, kale was one of the “least-loved” toppings last year.

If you read through the 2023 Slice of the Union report or read our article reviewing it, you know they made a couple of trend predictions. Last year, Slice guessed that pickle pizzas would be in demand. Well, they were right. Orders for pickle pizzas jumped by 32 percent in 2023.

So, when Slice makes a pizza-based prediction, it’s probably in your best interest to take it to heart. Oh, wait—Slice has a prediction for 2024. According to the platform, tinned fish will be a standout pizza topping this year.

Sauce

In case you’re wondering about how much data Slice has at their fingertips, here’s an interesting bit of trivia. Last year, 4,744 people ordered pizzas with anchovies, garlic, or onions on Valentine’s Day. Alrighty, then.

They also know that orders for pizza with pineapple as a topping saw an increase of nearly six percent in 2023.

Further, the 2024 Slice of the Union reveals the most and least “pizzaful” days of 2023. The former? December 1. And the latter? Thanksgiving.

Last year, Fridays accounted for the most orders, at 23.5 percent. However, only 8.7 percent of pizza orders were placed on Mondays.

For data that’s a bit more esoteric, what if Slice could reveal which Zodiac signs order the most and least pizza? Would this be useful to operators? Honestly, it could be, I suppose. Particularly for those who have loyalty programs and engage with their guests via email and text marketing.

Apparently, a Taurus (April 20 to May 20) is the most likely to order pizza. Conversely, Capricorns (December 22 to January 19) either don’t like placing food orders in general or don’t like eating pizza specifically, because they ordered the least amount last year.

By the way, if you happen to operate a pizzeria in New Jersey, you may want to search for a guest named Dominic. According to Slice, someone named Dominic in NJ placed 348 pizza orders in 2023. Sounds like Dom has earned a special perk from his favorite pizza joint.

Extra Cheese

Pizzeria owners and their teams in Hawaii, Alabama, Oregon, South Carolina, and Montana may have the happiest wallets. That’s because people who ordered pizza for delivery in those five states tipped their drivers the most.

However, people who order pizza in Washington may have slightly lighter wallets than their fellow Americans. That’s because while the average price for a large cheese pizza in the US is $18.33, that number jumps to $25.75 in the Evergreen State.

If you’d like to see the average price for a large cheese pizza in each of the 50 states, click here. As an example, the average price in Nevada (KRG Hospitality’s American HQ is in Las Vegas) is $21.09.

Speaking of price, while Dom in NJ placed the most pizza orders, Frances in New York placed the most expensive order last year: $2,867.07. Frances, I want to attend one of your pizza parties (I think).

Finally, let’s end on data that can help operators when reviewing their labor costs. On average, pizza delivery distance was 9.14 miles in 2023. And, on average, pizzerias completed the process of producing an order and delivering it in 42.5 minutes.

For more insights from the 2024 Slice of the Union, click here.

Image: Sydney Troxell on Pexels

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What are You Changing in 2024?

What are You Changing in Your Restaurant or Bar in 2024?

by David Klemt

Restaurant owner reviewing their menu

More fun with AI-generated images. That’s quite the busy bar setup.

Toward the end of last year, Nation’s Restaurant News identified what changes operators chose to make after analyzing their operational data.

The publication surveyed hundreds of operators about how data drove their decisions. This survey was an element of their year-end report, Market Leader Report: The Data-driven Restaurant.

As one would imagine, this report focuses on data collection, analysis, and usage. However, NRN‘s report doesn’t just address the importance of data collection in the F&B space. Rather, they seek to understand if operators are collecting the “right” data; whether they can optimize the data they collect; what metrics they’re tracking; and how they’re acting on all that data.

Simply put, it’s an important report addressing a topic crucial to today’s restaurant and bar operations. Those who want their own copy of The Data-driven Restaurant can download it free here.

While entire report is valuable, the focus of this article is one question and the answers provided. Below, to provide context, is a breakdown of the survey respondents.

The Who

Most of the respondents identified as independent restaurant operators.

  • Indie: 37 percent
  • Chain (franchisee): 21 percent
  • Chain (company owned): 18 percent
  • Multi-concept: 15 percent
  • Single-site operator: 6 percent
  • HQ or brand level of foodservice company: 3 percent

By a slim margin, most survey respondents categorized their restaurants as full service or casual dining.

Perhaps unsurprisingly, the fewest respondents operate in the upscale or fine dining category.

  • Full service / casual dining: 30 percent
  • Fast casual: 28 percent
  • Quick service: 20 percent
  • Midscale / family dining: 15 percent
  • Upscale / fine dining: 7 percent

The What

So, what question caught our attention at KRG Hospitality?

“In the past 12 months, which initiatives did your organization undertake after analyzing data?”

NRN conducted this survey in November 2023. Not surprisingly, respondents mostly made changes to their menus after reviewing their data. Streamlining menus and adjusting prices were two of the biggest operational trends last year, as many operators are no doubt well aware.

That theory is supported by the survey results. Below, the top four answers to the question above.

  • Changed menu prices (48 percent)
  • Removed items from or added items to our menu (47 percent)
  • Improved the way we trained our staff (26 percent)
  • Adjusted our loyalty program’s rewards and/or incentives (24 percent)

Honestly, it’s heartening to see that training is among the top-three data-driven actions operators took last year. And, of course, it’s not shocking that the menu was the focus of the most attention. Streamlining is an effective way to reduce food and labor costs. Further, pricing is always (please excuse the pun) on the menu.

Our question is: What changes, if any, do you plan to implement this year now that we’re headed into Q3?

The What: The Sequel

If the menu received the most attention after operators reviewed their data, what received the least?

Well, it appears marketing fell to the wayside, along with the kitchen. The following are the bottom four answers to the question in the section above:

  • A/B tested marketing campaigns and increased ROI (6 percent)
  • Changed specs on our kitchen equipment or technology (10 percent)
  • Identified lapsed customers and marketed to them (11 percent)
  • Increased throughput in our kitchen during peak periods (13 percent)

Now, I’ll concede that one marketing action found itself in the middle of the pack when it came to this survey question. Upon analyzing their data, 18 percent of respondents identified new potential guests and marketed to those people.

Still, in comparison to making changes to menus, the fewest respondents took marketing action or made changes to the kitchen directly.

Does this mean that menu changes have the greatest impact on guests and ROI? Well, that’s possible. However, I think something else is at play.

Personally, I think collecting data is the easy part. At this point, most platforms serving our industry are collecting data for operators.

But tracking the correct metrics, analyzing the associated data, and knowing what to do after analyzing said data? That’s difficult. It can be overwhelming, which is why it’s so important to build and implement the proper tech stack for a specific concept. This is why one of the services we offer our clients is tech-stack development.

Further, the tech stack needs to be built around an operator and their leadership team. If nobody knows how to use it or what to do with the data they’re collecting, it’s useless.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

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A pint glass overflowing with beer
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Did This Beer Win Super Bowl LVIII?

Did This Beer Win Super Bowl LVIII?

by David Klemt

A pint glass overflowing with beer

Now that the Super Bowl is over, behavioral insight platform Veylinx is revealing the impact on brands that advertised during this year’s big game.

If Veylinx sounds familiar to you, you may be a regular KRG Hospitality news reader. Last month we looked at their dive into alcohol-free canned cocktails. Last year, we shared a Veylinx report with a focus on whether Super Bowl ads really work on consumers. And in 2022, Veylinx wondered if the interest in zero-proof drinks was all hype or worth leveraging.

This month, Veylinx is at it again. This time, however, they’re revealing which brands—those that advertised during Super Bowl LVIII—saw the biggest ROI. For context, a 30-second spot during the big game cost approximately $7 million this year.

That’s a ton of cash to shell out in the hopes of seeing a sales increase on- and off-premise.

Speaking of on-premise, Veylinx’s findings should be of interest to operators. The beer that Veylinx says “won” the Super Bowl will likely be top of mind among your guests who watched the game and the accompanying ads.

So, it stands to reason that they’ll either expect to find that beer on a menu. Likewise, they may be swayed to order the beer if they see it when scanning a bar’s taps, menu, or fridges.

With that in mind, operators may want to watch their sales of Michelob Ultra.

Study Methodology

For their latest report, Veylinx used similar methodology to their Elixir non-alcoholic canned cocktail study.

A mix of 50 percent men and fifty percent women participated in the study. All 1,604 participants were US residents aged 21 or older. Looking deeper into the participants, the age breakdown is as follows:

  • 21 to 27: 30 percent
  • 28 to 43: 25 percent
  • 44 to 59: 25 percent
  • 60 and older: 20 percent

Like the Elixir (a fake brand invented by Veylinx) study, participants bid on products with their own money. The auction mix consisted of products that advertised during Super Bowl LVIII and those that did not advertise during the game.

Study Results

Among all viewers of Super Bowl LVIII, brands that advertised during the game saw an average lift of 16 percent.

However, those brands saw the biggest boost in demand—24 percent—among men. Gen Z followed, with demand in advertised brands growing by 11 percent. Among women, brands that advertised saw just a nine-percent boost in demand.

While Doritos Dinamita was the number-one brand among all viewers in general, and men and Gen Z in particular, Michelob Ultra is a close second. Interestingly, the beer brand was the top-performer among women in terms of demand growth.

For those wondering, no alcohol brands were among the top three performers for Gen Z.

So, operators who have noticed in uptick in Michelob Ultra sales may have Super Bowl LVIII to thank. If that’s the case, if sales of Michelob Ultra have increased in bars and restaurants since this year’s big game, it appears that yes, Super Bowl ads still work on consumers.

Image: cottonbro studio on Pexels

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Aerial photograph of Pittsburgh, Pennsylvania, at night
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Best and Worst Cities for Servers

Service Wins and Woes: Best and Worst Cities for Servers

by David Klemt

Aerial photograph of Pittsburgh, Pennsylvania, at night

A recent survey from gaming industry site Casinos.US identifies the 25 best and two-dozen worst cities for servers in America.

I can share two details about the methodology that Casinos.US employed.

One, they surveyed 2,000 current and former hospitality professionals. And two, they were asked to rate the overall rudeness of their guests on a scale of one to ten. One is the kindest, ten is the rudest.

Further, I can share that the average rudeness of guests being served in the US is 4.9 out of ten. Unfortunately, the three worst cities on the Casinos.US list rank between 7.0 and 7.6 on the rudeness scale. In fact, 22 of the 24 worst cities come in at 5.0 or above.

No city is perfect. The best of the best earns a score of 2.0, with the next best hitting a 3.0. Still, not bad at all.

Sadly, 45 percent of respondents reported finding themselves interacting with rude guests at least twice per day. As far as the worst of the worst, respondents identified “older adults” as the rudest, and Sunday as the day of the week with the most incidents. Do with that information as you will.

There are two sides to the coin, of course. Impressively, 24 percent of respondents “rarely” encounter rudeness from guests. Even better, 28 percent don’t expect to come across rude guests on a daily basis at work. So, there’s some hope out there.

To review the results of this survey for yourself, click here.

The Worst

Alright, let’s get it out of the way. Below, the worst cities in America for servers, according to Casinos.us.

To the right, their rudeness score. Again, the score is out of ten, with ten being the absolute worst.

  1. Washington, DC (4.9)
  2. Orlando, Florida (4.9)
  3. San Antonio, Texas (5.0)
  4. Sacramento, California (5.0)
  5. Columbus, Ohio (5.0)
  6. Buffalo, New York (5.0)
  7. Houston, Texas (5.1)
  8. St. Louis, Missouri (5.1)
  9. Atlanta, Georgia (5.1)
  10. Louisville, Kentucky (5.3)
  11. Miami, Florida (5.3)
  12. Nashville, Tennessee (5.4)
  13. New York, New York (5.4)
  14. Phoenix, Arizona (5.6)
  15. Detroit, Michigan (5.7)
  16. San Diego, California (5.8)
  17. Las Vegas, Nevada (5.8)
  18. New Orleans, Louisiana (5.8)
  19. Milwaukee, Wisconsin (6.0)
  20. Providence, Rhode Island (6.3)
  21. Oklahoma City, Oklahoma (6.3)
  22. Jacksonville, Florida (7.0)
  23. Cincinnati, Ohio (7.0)
  24. Virginia Beach, Virginia (7.6)

This list, if accurate, leaves me with one question: What’s going on, Virginia Beach? Sheesh. Calm down—your side of ranch isn’t that important, I promise.

It’s tempting to label this a tourist issue. Well over 10 million people—nearly 20 million in 2019—visit Virginia Beach annually.

And, hey, look at the rest of the list; it’s loaded with destination cities that draw millions upon millions of tourists each year.

However, when you look at the list of the best cities for servers below you’ll find more destination cities.

The Best

Now that we know the worst, let’s check out the best.

The cities below rank the lowest as far as rude behavior from guests.

  1. Dallas, Texas (4.8)
  2. Minneapolis, Minnesota (4.8)
  3. Boston, Massachusetts (4.8)
  4. Birmingham, Alabama (4.8)
  5. Salt Lake City, Utah (4.8)
  6. Los Angeles, California (4.7)
  7. San Francisco, California (4.7)
  8. Philadelphia, Pennsylvania (4.7)
  9. Raleigh, North Carolina (4.6)
  10. Riverside, California (4.5)
  11. Kansas City, Missouri (4.5)
  12. Seattle, Washington (4.5)
  13. Charlotte, North Carolina (4.4)
  14. Richmond, Virginia (4.3)
  15. Cleveland, Ohio (4.3)
  16. Indianapolis, Indiana (4.2)
  17. Chicago, Illinois (4.1)
  18. Denver, Colorado (4.1)
  19. Portland, Oregon (4.0)
  20. Tampa, Florida (3.8)
  21. Hartford, Connecticut (3.8)
  22. Austin, Texas (3.8)
  23. Baltimore, Maryland (3.7)
  24. Memphis, Tennessee (3.0)
  25. Pittsburgh, Pennsylvania (2.0)

Philly may be the City of Brotherly Love but the Steel City, Pittsburgh, is the best for servers in terms of guest behavior. At least, according to Casinos.US.

If you live in one of the cities above, go out to bars and restaurants, and aren’t a jerk to your servers, congratulations on being a decent person.

Takeaway

Let’s say you’re an owner, operator, or leadership team member. And let’s say you operate or work in one of the cities above, whether the best or worst.

If your service team routinely on edge, regularly upset, find out why. Leaders look out for their teams and strive to provide a healthy work environment.

I’m not saying you need to get into the details of their personal lives. What I am saying is that if there are issues in the workplace, you need to get to the bottom of them. More importantly, you then need to engage the team and get their feedback.

How do they want guest issues handled by the leadership team? Are their problematic regulars who need to be “fired” to protect the team? Some guests simply aren’t worth the revenue and tips in exchange for the emotional and mental distress they’re inflicting on the team.

That is, however, something that must be discussed. Most importantly, when the feedback is taken into account and a procedure is put in place, leadership must adhere to it and act accordingly. Any deviation will result in a loss of trust, and that will decimate team morale even more quickly than an encounter with a rude guest.

Lose trust from your team, lose the business.

Image: Venti Views on Unsplash

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Cheese pull from cheese pizza
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Pizza Today’s 2024 Report Reveals Most Popular Cheeses

Pizza Today‘s informative 2024 Pizza Industry Trends Report is full of useful information, from top styles and toppings to new cheeses guests can choose.

Two weeks ago we did a deep dive into the top eleven pizza styles going into 2024, per Pizza Today. Click here to read that article.

Last week we checked out what the pizza publication had to say about top pizza styles by region. Additionally, we looked at the top toppings nationally and regionally. You can read that article here.

Now, we’re going to talk about what Pizza Today has learned about the top cheeses operators are putting on their menus.

by David Klemt

Cheese pull from cheese pizza

Top Pizza Styles, Nationally and Regionally

Before we jump into the cheeses, a quick recap of the top pizza styles in America.

  1. New York
  2. Traditional American
  3. Sicilian
  4. Deep Dish
  5. Neapolitan / Napoletana
  6. Chicago Thin / Tavern-style
  7. Detroit
  8. Grandma
  9. California / American Artisan
  10. NEOpolitan / Neo-Neapolitan and Chicago Thick (tie)

And now, the top trending pizza styles.

  1. Detroit
  2. Deep Dish and Grandma (tie)
  3. Sicilian
  4. New York
  5. Chicago Thin

Finally, the top pizza styles by region. For a more detailed explanation of each region, click here.

The West

  1. New York Style
  2. Traditional America
  3. California/American Artisan
  4. Sicilian
  5. Neapolitan

The South

  1. New York Style
  2. Traditional America
  3. Sicilian
  4. Deep Dish
  5. Neapolitan

The Midwest

  1. Traditional America
  2. Chicago Thin
  3. New York Style
  4. Deep Dish
  5. Detroit

The Northeast

  1. New York Style
  2. Sicilian
  3. Traditional America
  4. Neapolitan
  5. Grandma

Top Pizza Toppings, Nationally and Regionally

We’re almost to the cheeses. First, a recap of the most popular items to put on top of cheese.

Well, unless we’re talking a stuffed pizza. Click here and scroll to Deep Dish to see what I mean.

Now, the top toppings across the US.

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Extra Cheese
  5. Bacon
  6. Chicken
  7. Onion
  8. Red/Green Bell Pepper
  9. Ham
  10. Black Olives
  11. Meatballs
  12. Canadian Bacon
  13. Jalapenos
  14. Pineapple
  15. Beef
  16. Basil
  17. Banana Peppers
  18. Fresh garlic
  19. Tomatoes
  20. Spinach

Below, how toppings break down regionally.

The West

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Chicken
  5. Bacon

The South

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Extra cheese
  5. Bacon

The Midwest

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Bacon
  5. Onion

The Northeast

  • Pepperoni
  • Sausage
  • Mushroom
  • Extra cheese
  • Bacon

Top “New” Cheeses

Okay, so we’ve reviewed top pizza styles. We’ve done a recap for toppings.

So, what are some of the top “new” cheeses going onto those pizza styles and being covered in all those toppings?

It may seem odd the refer to the cheeses below as “new.” In this context, “new” means, “not mozzarella” or “not provolone,” for the most part. Or, if you’re in St. Louis, “not Provel.”

  • Ricotta
  • Cheddar
  • Fresh Mozzarella
  • Goat Cheese
  • Parmigiano Crema
  • Cotija Cheese
  • Scamorza
  • Vegan Cheese
  • Blue Cheese
  • Feta

Guests love personalization, and they love the opportunity to try new foods and new takes on foods they know.

Scamorza

For the most part, you’re likely familiar with all the cheeses above. However, if you’re like me, you may be unfamiliar with scamorza. If that’s the case, I looked into it for both of us.

Like mozzarella, scamorza is made from either stretched cow or water buffalo milk cheese curds. This cheese originates from Italy and comes in two styles: scamorza bianca or and scamorza affumicata. The former is white or natural, while the latter is smoked and brownish in appearance.

Further, bianca is a mild, somewhat sweet cheese. Affumicata, being smoked, delivers a more savory and, as one would expect, smoky flavor.

Vegan Cheese

If you aren’t offering vegan or plant-based cheese for your pizzas, you may not know what brands to use.

Well, don’t worry. I’ve also done some legwork into this topic.

Brands to check out are Violife, Diya, Chao, and Miyoko’s. As plant-based alternatives become more commonplace and expected by guests, I expect more commercial vegan-friendly cheeses to become available. Perhaps we’ll see some at this year’s National Restaurant Association Show.

Image: Pablo Pacheco on Unsplash

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Person clawing slice of pepperoni pizza
by David Klemt David Klemt No Comments

Top Pizza Styles & Toppings by Region in the USA

Now that we know the top 11 pizza styles in North America thanks to Pizza Today, let’s see how they break down by region.

Unfortunately, they don’t include regions throughout Canada in their trends report. However, the information is still incredibly valuable.

Pizza Today has put a lot of effort into their 2024 Pizza Industry Trends Report. So, make sure to click this link and check it out for yourself.

Before we jump into the regional breakdown, let’s check out which pizza toppings lead the way across the nation. As you’ll see later, while many regions follow national trends, they also deviate in notable ways.

If you read last week’s article, you already know which pizza styles dominate North America. For those of you haven’t yet read that article, click here.

That said, here are the top 20 toppings in America.

by David Klemt

Person clawing slice of pepperoni pizza

That’s one way to pick up a slice of pizza…

Top Toppings: Nationwide

If you operate a pizzeria or pizza is a significant focus of your business, you probably know the number one topping.

The image at the top of this article is a hint.

Per Pizza Today, these are the top 20 toppings in the US:

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Extra Cheese
  5. Bacon
  6. Chicken
  7. Onion
  8. Red/Green Bell Pepper
  9. Ham
  10. Black Olives
  11. Meatballs
  12. Canadian Bacon
  13. Jalapenos
  14. Pineapple
  15. Beef
  16. Basil
  17. Banana Peppers
  18. Fresh garlic
  19. Tomatoes
  20. Spinach

Due to outright bias, I hope to see meatballs break into the top ten one of these days. That’s my number one topping.

Now that we’ve shared the top 20 toppings according to Pizza Today, let’s check out the regional breakdown.

The West

This region includes two subregions, Pacific and Mountain.

In alphabetical order, the Pacific states are Alaska, California, Hawaii, Oregon, and Washington. The Mountain region includes Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming.

So, if you’re in one of those 13 states, the info below is relevant to you.

Top Styles

  1. New York Style
  2. Traditional America
  3. California/American Artisan
  4. Sicilian
  5. Neapolitan

Number three makes sense, given this region includes California. Otherwise, the West follows the top five pizza styles in the US rather closely.

Top Toppings

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Chicken
  5. Bacon
  6. Extra cheese
  7. Black Olives
  8. Onion
  9. Jalapenos
  10. Pineapple

In the West, the top three toppings are the same as the rest of the nation. However, chicken and bacon overtake extra cheese in the this region.

The South

Pizza Today divides the South into three subregions: East South Central, South Atlantic, and West South Central.

The former consists of Alabama, Kentucky, Mississippi, and Tennessee. The South Atlantic includes Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, Washington, D.C., and West Virginia. And West South Central is made up of Arkansas, Louisiana, Oklahoma, and Texas.

As you’ll see, the top five pizza styles in the South are the same as the top across the US. Further, the top five toppings in the region are also the same top five nationally. It isn’t until numbers six through ten that we encounter deviations.

Top Styles

  1. New York Style
  2. Traditional America
  3. Sicilian
  4. Deep Dish
  5. Neapolitan

Top Toppings

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Extra cheese
  5. Bacon
  6. Onion
  7. Chicken
  8. Red/Green pepper
  9. Beef
  10. Ham

Beef is number 15 nationally, if you don’t want to scroll up and check for yourself.

The Midwest

The Midwest, per Pizza Today, is organized into two subregions. Those are East North Central and West North Central.

Illinois, Indiana, Michigan, Ohio, and Wisconsin make up the former. Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota are the states in the latter subregion.

Top Styles

As a proud Midwesterner, I’m happy to report that the region didn’t disappoint when it comes to the region’s top pizza styles.

  1. Traditional America
  2. Chicago Thin
  3. New York Style
  4. Deep Dish
  5. Detroit

The argument that Chicago Thin (a.k.a. Chicago Tavern) rather than Deep Dish is the true Chicago pizza style is bolstered with these rankings.

Top Toppings

Pizza Today shares only five toppings for this region. Notably, extra cheese doesn’t make it in, kicked out by onion.

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Bacon
  5. Onion

The Northeast

The Middle Atlantic and New England are the two subregions of the Northeast.

For their report, Pizza Today identifies New Jersey, New York, and Pennsylvania as the three Middle Atlantic states. New England is Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

Top Style

Number five, given where it was reportedly created, isn’t a surprise.

In fact, the whole list makes sense:

  1. New York Style
  2. Sicilian
  3. Traditional America
  4. Neapolitan
  5. Grandma

It’s also not a surprise that Deep Dish doesn’t make it into the Northeast’s top five pizza styles.

Top Toppings

Further, the top five of ten top toppings in the Northeast are the same nationally.

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Extra cheese
  5. Bacon
  6. Chicken
  7. Onion
  8. Red/Green pepper
  9. Meatballs
  10. Banana Peppers

However, as you can see, meatballs (my favorite) and banana peppers break into the top ten in this region.

Takeaways

Obviously, there are more than just 20 toppings finding their way onto pizzas in the US. Pizza Today reports that birria, fig jam, hot honey, pasilla peppers, and pickled vegetables have earned their way onto menus in at least the past 12 months.

And when it comes the top 20 toppings, there’s nuance. For example, there are multiple styles of pepperoni and preparation, and the same holds true for sausage.

All this is to say the following: A blend of popular, traditional toppings along with the unexpected and new is likely a winning combination. This can include exotic ingredients, plant-based analogs, and international herbs and spices.

Remember, it’s pizza; it’s supposed to tempting and fun.

Image: Maksim Goncharenok on Pexels

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Moth Margarita canned cocktails stacked on a black, wood table
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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

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

Paddle and ball on pickleball court
by David Klemt David Klemt No Comments

af&co. x Carbonate: 2024 Trends to Watch

af&co. x Carbonate: 2024 Trends to Watch

by David Klemt

Paddle and ball on pickleball court

Marketing and creative agencies af&co. and Carbonate Group‘s 16th annual Hospitality Trends Report provides in-depth insight across several categories.

This is an in-depth, insightful report operators should review in its entirety. The “Sweet Sixteen” edition of this yearly report is available for download here.

There are two interesting details toward the end of af&co. and Carbonate’s report. First, a list of 2023 clients. Second, an explanation for the design of the report itself.

This makes sense: Carbonate is a creative agency that works in the hospitality space, after all. Further, af&co. is a hospitality industry marketing agency.

Now, I won’t be sharing every trend or insight found in these two agencies’ report. Rather, I’m highlighting a number of items across four of the report’s six categories. Again, I think operators and leadership team members should download the report for themselves.

Food

While af&co. and Carbonate identify specific cuisines and items that are trending, it’s their 10,000-foot view of food that I find most compelling. In terms of the big picture, “rigid” adherence to authentic cuisine is falling out of favor.

Chefs, in the agencies’ opinions, are taking a more modern approach to menus. Instead of following the “rules” of certain cuisines, they’re creating dishes and programs that defy labels. Of course, for those who feel the need to label, one could call this approach “contemporary fusion.”

Examples given are Good Luck Gato’s Okonomiyaki Baked Potato, and the Birria Dumplings at Little Bull.

Cuisine Trends

Of course, af& co. and Carbonate also zoom in on food. Their Cuisine of the Year goes to Korean.

Dessert of the Year goes to the Pavlova or Eton Mess. So, one can argue that operators should connect with their back-of-house teams about meringue-based desserts.

Other food trends include making pastries with buckwheat; getting inventive with mortadella; serving borek in snack and entree size; and Brazilian-style pizza.

However, it’s a presentation trend that stood out the most to me. Accompanied by a timeline complete with images, the agencies state confidently that we’re in the “Crescent Moon” era of plating.

Visualize a plate, then place all of the food along the edge, with roughly two-thirds of the space open. That’s the crescent moon presentation.

Beverage

A number of the trends in this section aren’t exactly new. That tells me that some are likely on the brink of moving from trend to ubiquity.

That, or they’re at risk of bumping against their expiration date.

Two trends that have been popping their fins out of the sea of cocktails for a bit make it into the af&co. and Carbonate report. One is clarified cocktails.

Spend a bit of time looking up cocktails on social media and you’ll see these are a bit divisive. Some bartenders are all for them, some appear to absolutely despise this trend. Guests, however, seem to like the novelty of well-known, opaque or translucent classic turning transparent.

Another drink trend? Culinary cocktails. For food-driven concepts, it makes perfect sense to encourage the bar team to work closely with the kitchen team. Offering culinary cocktails is one method of pulling a concept’s threads tighter, telling a more complete story.

Along those lines, the agencies identify another divisive cocktail trend: cheese.

Personally, cocktails that feature cheese aren’t my thing. However, these drinks are, at the minimum, going to grab a guest’s attention. And those who order these drinks aren’t likely to forget the experience any time soon, good or bad.

That last point is important for operators and their teams to remember. A negative experience can be more powerful and stick with a guest longer than a positive one. So, pursue trends with caution.

Hotel

One of the biggest hotel developments the Hospitality Trends Report identifies is the dual-brand hotel. This is also a trend with which KRG Hospitality is well acquainted, both through industry research and client projects.

So far, the most common approach tends to include two towers, a shared lobby and fitness center, and shared F&B concepts. However, there are properties that incorporate not only brand-specific design for each tower but separate the bars and restaurants as well.

Notably, Marriott opened the first-ever tri-brand hotel in Nashville in 2019. The hotel and resort colossus combined an AC Hotel, a Residence Inn, and a SpringHill Suites.

Another interesting hotel trend? Eco-friendly, pre-fab construction. An excellent example of this approach is Moliving. To learn more about this brand, check out Bar Hacks podcast episode 68 with Jordan and Hanna Bem.

Interest by consumers in supporting eco-friendly brands informs two other trends identified by af&co. and Carbonate. One of these is hotels and resorts including e-bikes among their amenities.

Another is rewarding guests for engaging in a number of green initiatives. For example, cleaning up the beach in front of a hotel, or helping to plant trees on or near the property.

Speaking further of amenities, hotel and resort operators are likely aware that if they have courts for racquet sports, they need to include pickleball.

Design

Operators considering a refresh or starting from a clean slate for a new space may want to work with a designer on the following approach: maximalism.

According to the 16th annual Hospitality Trends Report, this bold, playful design language is on the rise. Following this trend, af&co. and Carbonate think that maximalism is working particularly well for “concept-driven, design-forward” bars.

As far as colors and materials operators may want to ask designers about, the agencies suggest pink, bronze, gold, and velvet. These colors are warm and welcoming, exactly what a hospitality venue should be.

To download the Hospitality Trends Report, click here. Two categories not covered in this article are Marketing Ideas and Social Media Trends, so follow that link!

Image: Mason Tuttle on Pexels

Bar Nightclub Pub Brewery Menu Development Drinks Food

Korean fried chicken wings
by David Klemt David Klemt No Comments

2023 State of the Menu: Datassential

2023 State of the Menu: Datassential

by David Klemt

Korean fried chicken wings

The annual 2023 State of the Menu by Datassential includes an interesting metric to gauge restaurant recovery: menu size by segment.

Hosts Jack Li, Mike Kostyo, and Claire Conaghan discuss a handful of topics during this webinar. Host Li touches on food-forward cities at the beginning of this presentaiton. Kostyo shares some of the most innovative menu items out there right now. And Conaghan dives deep into menu trends.

Industry professionals interested in watching this webinar on demand can register to do so here.

There are a handful of metrics people are using to measure post-pandemic restaurant recovery. Labor is, of course, receiving a lot of attention. People are also tracking traffic, average check size, revenue, and profits.

One metric Datassential is keeping tabs on is menu size per restaurant segment. Additionally, they’re tracking each segment’s top-growing food and beverage items.

Notably, however, in tracking menu size, Conaghan focuses solely on food and non-alcohol beverage items, omitting catering and alcohol.

Chains vs. Independents

Starting things off, Conaghan addresses the overall menu size trend. That is, menus are noticeably smaller in comparison to pre-pandemic sizes.

Interestingly, chain restaurants don’t appear to be in any rush to move away from this trend. In fact, Conaghan notes that chains appear to be further reducing the size of their menus. This has been the trend over the past 12 months.

According to Conaghan, fine dining also seems to be happy to shrink their menus. Menu size shrunk the most among restaurants in this segment. In comparison, quick-service menu sizes decreased the least.

However, independent restaurant operators appear to be going in the opposite direction from their chain counterparts. In contrast, indies have been growing the size of their menus the past 12 months.

Menu Size by Segment

Fast Casual

Per Conaghan, the only segment to reach pre-pandemic menu size is fast casual. In fact, this category of restaurant is often exceeding pre-pandemic items-per-menu size.

This increase in menu size is attributable to operators “leaning into” core cuisine items. For example, sandwiches, Mexican entrees, and pizza.

However, the fastest-growing food item on fast-casual menus is the chicken wing. According to Conaghan, it’s easy for operators to innovate with chicken wings.

A restaurant doesn’t have chicken wings? All they have to do is add them, starting with simple preparations. If a restaurant does have chicken wings on the menu already, innovation is as simple as adding new flavors.

As far as the fastest-growing drink for fast-casual restaurants, it’s dessert beverages.

QSR, Casual Dining, and Midscale

These three segments are “very, very close” to reaching pre-pandemic menu sizes.

As midscale operators are likely very aware, this segment tends to have the largest menus. I wouldn’t be surprised, therefore, if a number of midscale concepts review their items per menu, their costs, and decide they can perform well with slightly smaller menus moving forward.

Unsurprisingly, chicken wings are the food item growing most quickly on QSR food menus. Oh, and barbecue chicken wings are the fastest-growing food item among casual dining restaurants.

Perhaps a bit more eyebrow-raising is the fastest-growing beverage type for QSRs: energy drinks. Boba and flavored iced teas are growing fastest on casual-dining drink menus.

For midscale restaurants, dessert samplers are the fastest-growing food items. Think “dessert charcuterie” when trying to picture a dessert platter. Another way to think about the dessert sampler is a static dessert cart with small bites of each dessert on the menu.

Fine Dining

Again, this segment is the furthest from pre-pandemic menu size. And, again, operators in this category seem happy with this trend.

An interesting note Conaghan makes about this segment is what many operators are using to fill out their menus: desserts. This is, she says, an area where fine dining can differentiate itself from other concepts.

Per Conaghan, bao, applesauce, and summer squash are growing the fastest on fine-dining food menus.

Now, I may have slipped into a fever dream during this portion of the Datassential webinar. Because unless I’m mistaken, the Shirley Temple has been identified as the fastest-growing beverage in the fine-dining space.

Pricing

Okay, so this segment of the 2023 State of the Menu webinar isn’t really a recovery metric.

However, it’s interesting, and something Jack Li says about chain restaurant pricing made me chuckle.

Most Expensive vs. Least Expensive

First, some straightforward data.

The following list identifies the five most-expensive ZIP codes for chain restaurant menu pricing. Anyone who wants the full list of 15 most-expensive ZIP codes can watch the webinar.

  • 10036 (New York, NY)
  • 96707 (Kapolei, HI)
  • 98902 (Yakima, WA)
  • 96815 (Honolulu, HI)
  • 99503 (Anchorage, AK)

It’s understandable to think this would consist entirely of New York City, Los Angeles, or San Francisco ZIPs. But when we consider what it costs operators to import food to Hawaii and Alaska. Additionally, Washington and New York are among the states with the highest minimum wage. Operators need to recover those costs somehow.

And now the five least-expensive ZIP codes:

  • 78526 (Brownsville, TX)
  • 75224 (Dallas, TX)
  • 76106 (Fort Worth, TX)
  • 31907 (Columbus, GA)
  • 31701 (Albany, GA)

Pricing Logic

Now, on to what Li says during the webinar that makes me laugh.

Nationwide, the average price of a McDonald’s Big Mac in the US is $5.26. (A caveat: This webinar took place in October. This price may have increased or decreased by now.)

However, the lowest price for a Big Mac is $3.49 at a location in Wilburton, Oklahoma.

So, what’s the highest price, and where can one find these pricey Big Macs? Three McDonald’s locations sell the burger for $8.29. That’s nearly two-and-a-half times the lowest-priced Big Mac.

Summarizing pricing variations among chain restaurants succinctly, Li made me laugh with the following: “Store pricing often just doesn’t make sense.”

Going further, Li says Datassential shows that the more franchised a restaurant chain is, the more variances in pricing will occur.

The full webinar can be viewed here.

Image: Leonardo Luz on Pexels

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