Data | KRG Hospitality

Delivery or takeout food order in brown paper bag

February 7, 2022by David Klemt David Klemt No Comments

What Consumers Expect from Delivery

What Consumers Expect from Delivery

by David Klemt

Consumers are developing specific behaviors and opinions regarding delivery that impact their perception of restaurants and brands.

Over the course of two years and three surveys, Deloitte has attempted to learn more about consumers and delivery.

In total, Deloitte surveyed 1,550 restaurant customers. Additionally, the multinational interviewed highly positioned executives from ten casual, fast-casual, and QSR brands.

What Consumers Want

First, it should come as no surprise that delivery is here to stay. None of Deloitte’s survey results indicate otherwise.

In fact, it appears that some consumers are showing an interest in additional delivery methods. Half of survey respondents are willing to try driverless or drone delivery.

More than half—64 percent—don’t expect to return to pre-pandemic dining habits by March of this year. Illustrating the habit of ordering takeout and delivery, 61 percent of respondents engage with restaurants that way at least once per week. That represents a 32-percent increase from June 2020 to September 2021.

When dining off-premise, 57 percent of Deloitte survey respondents prefer to place orders via an app. However, 40 percent of respondents prefer a restaurant’s own branded website or app. That shows that:

A restaurant’s website matters. A significant percentage of consumers want to get information, get a feel for a restaurant, and place orders with a business directly.
Direct delivery is feasible. Consumers want to know and feel as though they’re supporting a restaurant directly rather than a third-party business.

Own the Delivery Experience

Of course, quality is a concern with consumers who place delivery orders. This points to another pitfall regarding third-party delivery beyond the fees.

Unfair as it is, three out of five restaurant customer survey respondents have quality expectations. Specifically, they expect the same food experience off-premise as they receive on-premise. That means the same quality and the same freshness.

They also indicate that wait times of up to 30 minutes are acceptable. Here’s where the risk to restaurants comes into play. Consumers will fault the restaurant for late orders; cold food (or melted or room-temperature food for cold items); iced drinks becoming watered down; and other order issues even if they’re delivered by third-party services.

So, operators must look into and invest into what they can to improve the quality of delivery orders. Containers that keep hot food hot, French fries and other fried foods crisp, and cold foods cold are paramount.

Unfortunately, problems that occur after an order has left a restaurant—which are out of the business’ hands—are often attributed to the venue. Another reason, then, to consider and implement direct delivery.

Image: Yu Hosoi on Unsplash

White and red neon restaurant sign that reads "Kitchen Open"

February 4, 2022by David Klemt David Klemt No Comments

Independent Operators are Making Changes

Despite Challenges, Independent Operators are Making Changes for the Better

by David Klemt

Independent Restaurant Coalition survey results show our industry is still struggling but some operators are making positive changes.

The hospitality industry absolutely needs and deserves help. The Restaurant Revitalization Fund absolutely needs replenishing.

However, hospitality continues to prove its resiliency, adaptability, and innovation.

It must be said, though, that it’s exhausting for owners, operators, and workers to have to constantly be resilient. Sometimes, the industry needs help. It’s past time for help to come.

But, I digress. Back to the IRC and their recently released survey results.

Still Overwhelmed

The IRC surveyed close to 1,200 respondents who are part of the restaurant and bar community. Survey participants represented all 50 states in the US.

Some respondents received RRF grants, some did not. Of course, receiving a grant wasn’t a silver bullet for surviving the pandemic.

However, the grants certainly helped:

Nineteen percent of grant recipients took out personal loans since February 2020. In comparison, that number more than doubles to 41 percent for those who didn’t receive grants.
Since the beginning of the pandemic, five percent of grant recipients took on additional investors. Again, that number more than doubles for operators who received no RRF grants. Eleven percent took on more investors to survive.
Due to the omicron variant of Covid-19, grant recipients had to reduce staff by 21 percent on average. Their counterparts had to decrease staff, on average, by 30 percent.
When it comes to selling off a personal asset to help their business survive the pandemic, ten percent of grant recipients did so. For those who didn’t receive an RRF grant, that number increases more than two-and-a-half times to 26 percent.

The challenges—an inadequate word, truly—have led to industry-wide changes. Per the IRC’s survey:

Hiring challenges have impacted 91 percent of independent restaurants and bars.
Menu prices were hiked up by 89 percent of independent businesses.
Nearly half—42 percent—reported to the IRC that they had pivoted to alternate business models after ceasing indoor and outdoor service.
Six percent of independent restaurants and bars pivoted to offering outdoor dining only.

Progress Being Made

Operators have been facing hiring challenges for several months now. In response, some operators offer various incentives.

As examples: meals for honoring scheduled interviews; cash for showing up to interviews; large cash bonuses for remaining in position for 90 or more days.

However, none of the above really address longstanding, widespread issues hospitality workers have given as reasons for quitting jobs (and the industry entirely).

To name just two, livable wages and benefits. Despite the challenges operators are facing, they have made positive changes. We’re not talking a small percentage, either.

Per the IRC, independent businesses reported the following changes:

84 percent of restaurants increased wages.
37 percent of restaurants, bars and other independent hospitality businesses added paid sick leave to the benefits they provide.
21 percent of employers have added paid vacation to their benefits.

These changes (and others) are a promising start, showing that operators are listening to workers. Bringing traffic and revenue back to pre-pandemic levels—and beyond—is a great goal. But how will the industry get there?

One answer is for operators to listen to the hospitality professionals they rely on for their businesses to thrive. Listening, and then acting in meaningful ways.

Image: Patrick Tomasso on Unsplash

December 27, 2021by David Klemt David Klemt No Comments

Global Trends 2022: Technomic

Global Trends 2022: Technomic

by David Klemt

What? You didn’t think we would focus only on Canada and America when it comes to 2022 trends, did you?

It’s difficult to keep up with restaurant, bar, and cuisine trends if you keep your focus too narrow.

Technomic is acutely aware of this. So, we took a look at senior research manager Aaron Jourden’s 2022 Global Restaurant Trends Forecast report.

One specific item, a coffee, is a striking standout. But we’ll get to that in a moment…

Operations

First, let’s take a look at restaurant and bar operations.

It’s not just North America that’s facing a labor shortage. And in 2022, Technomic expects this challenge to persist.

There are a few ways we can look at labor shortages and other challenges.

One: We can make no internal changes, pretending hope is a strategy and things will work themselves out magically. Two: We can get cynical and hostile, putting the blame on workers.

Three: We can look at the industry as a whole and operations in particular to make meaningful changes. Working conditions can be improved, leadership skills can be developed, operations can be streamlined, inventory can be cross-utilized and maximized. What are we offering workers and guests? What can be changed to reduce costs, and to increase traffic and revenue?

In other words, operators are in a position to adapt, innovate, and make meaningful changes that will ensure our industry’s long-term survival.

Labor, supply chain, and cost issues will continue in 2022. However, Technomic predicts that 2022 will be the year of measurable recovery.

Fading Ghosts

Technomic isn’t saying that ghost kitchens are going put to rest.

Rather, the firm expects the hype around them to fade away. To be sure, ghost (and virtual—not the same thing) kitchens enjoyed quite a bit more than 15 minutes of fame in 2020 and 2021.

However, we’ve seen recent reports of certain ghost kitchen chains facing logistic and legal troubles. The shine very much seems to be dulling on this pandemic trend.

Again, Technomic doesn’t think ghost kitchens will suddenly disappear. But the incessant coverage? That may be on the way out in 2022.

Food & Flavor Trends

Now, the fun stuff. If Jourden’s report proves accurate, menus throughout the world are going to see some intriguing additions:

Breakfast Comes Back. With people heading back to the office and children back in school, the breakfast daypart will return. Operators who did away with breakfast may see value in bringing breakfast food and beverages back.
Chicken or the Egg? Per Jourden’s report, the egg sandwich is in a position to knock chicken sandwiches off their pedestal. So, chicken wins either way. Jourden points to an interesting element of this prediction: Eggs are fun, allowing for puns on menus, marketing, and branding.
Regional vs. Global. A number of regional brands will stand out against global brands in 2022. Regional brands speak to what today’s consumer wants: locality and hyper-locality; sustainability and responsible business practices; and a focus on healthfulness.
What Coffee?! Jourden’s report identifies a number of truly innovative and intriguing F&B trends for 2022. The one that grabbed my attention immediately? Avocado coffee. Already popular in Indonesia, avocado coffee is expected to find its way onto menus across the globe. Other items Jourden thinks will gain traction in 2022: Pão de queijo (Brazilian cheese bread), Mexican flatbreads, vegetarian-friendly meat alternative halloumi, mutabal or moutabal (baba ghanoush’s cousin), regional comfort soups, and plant-based eggs.
Functional Foods. If you didn’t find avocado coffee intriguing, what about dessert foods imbued with healthful characteristics? Jourden identifies a few desserts that do more than satisfy a sweet tooth: Hand pies that boost immune systems, macarons made to enhance moods, and even ice cream that will enhance a person’s skin health and appearance.

Next year is going to be challenging. That simply isn’t up for debate. But it’s also going to be rife with opportunity and innovation for savvy operators.

Image: Jon Tyson on Unsplash

December 24, 2021by David Klemt David Klemt No Comments

American Trends 2022: Technomic

American Trends 2022: Technomic

by David Klemt

Two weeks ago, I reviewed and shared Technomic’s “Canadian Trends: Looking Ahead to 2022” report, and now it’s America’s turn.

Not too surprisingly, the US and Canada are similar in terms of a few 2022 trend predictions.

And while the Omicron variant of Covid-19 is causing some restaurants and bars to close, there is some good news from Technomic.

Salt

First, a difference between America and Canada. As you may recall from my review of Canadian predictions, Technomic predicts butter will be even more important next year.

Interestingly, salt is the big prediction for the United States. The reasoning is similar: people are seeking out comfort in these difficult times.

Technomic’s “2022: The Year of the Climb” report states flat out that, “Salt is the new fat.”

The industry intelligence firm predicts that salt will be increasingly important in kitchens—and on tables—in 2022.

For example, Technomic expects operators to focus salt-cured fish and meats. Of course, that doesn’t just meet a predicted consumer demand. Cured foods can be preserved for longer, which is appealing to operators.

Seaweeds, salt blends, and salty sauces will be used in the kitchen. According to Technomic, some of those will replace (or accompany) traditional salt on tables.

Going further, Technomic predicts that salt will find its way into cocktails. This can be in the form of salty ingredients or salt water, a trend from a few years ago.

Creative Prep

Let’s stick with the kitchen a bit longer.

This is one of the strongest similarities shared by the US and Canada. Technomic predicts that operators will need to focus on cross-utilization and creativity.

As you’ve likely already figured out, this is because of supply chain issues. The more ways items can be used without introducing new SKUs, the easier things may be for operators.

Some examples of cross-utilization suggested by Technomic:

Roasting, grilling, and blistering items normally served raw.
Pickling ingredients.
Fermenting items.
Turning some items into jams.
Aging some ingredients.

Labor Challenges

Obviously, the labor shortage is felt throughout North America. Unfortunately, this is another similarity when comparing Technomic’s American and Canadian 2022 trend predictions.

KRG Hospitality has addressed the need for the industry to make significant changes several times this year. In particular, founder and president Doug Radkey published a book, Hacking the New Normal, calling for change to improve working conditions and the industry’s long-term survival.

Technomic is suggesting the same. The firm predicts the following for 2022:

Wage increases across the board.
Benefits (healthcare, emergency child care, 401(k), and more).
Virtual hiring events.
Referral and signing bonuses.

However, more needs to be done. The industry doesn’t simply need to revamp its image, it needs to:

address—and not dismiss—issues raised by current hospitality professionals;
solve the problems that led to so many hospitality workers quitting jobs and giving up on the industry;
implement real solutions for the problems the industry has faced and, frankly, nurtured for decades.

And that’s just the start. If we don’t face our industry’s challenges head-on, there won’t be much of an industry in the future.

The Battle for Comfort

Yes, comfort food will be important next year. Hence the entire section on salt above.

However, when I mention comfort in this section I’m referring to personal comfort levels.

You’ve likely been hearing from industry peers and seeing on social media that a number of bars are closing until December 29 or December 30. These temporary closures are due to spikes in positive Covid-19 cases, mostly driven by Omicron.

Many Americans, eager to return to a semblance of their pre-Covid lives, want to spend time in restaurants and bars. However, people need to balance their comfort levels with their desire for social experiences.

In response, Technomic predicts that operators will need to balance the on-premise and off-premise. In other words, omni-channel operators must dial in their offerings.

Per Technomic, operators have to figure out their mix: interactive in-person experiences, takeout, and delivery.

Good News

Technomic is making two 2022 predictions that should come as a relief to operators.

First, Q1 of 2022, per Technomic, “will reveal a particularly strong year-over-year performance” in comparison to 2021.

Overall, the firm projects a 10.4-percent sales increase for 2022 when compared to 2019 sales.

There is, however, a caveat. We’ll have to take rising menu prices into account when analyzing this year’s and next year’s sales levels.

For those wondering which category is predicted to perform the best, Technomic identifies limited-service restaurants will recover quickest.

In contrast, full-service will see slower recovery. Business, leisure, and indeed “bleisure” travel will have an impact on full-service traffic.

So, 2022 isn’t going to magically return to pre-pandemic “normal.” However, should Technomic’s conservative sales prediction prove accurate, recovery is on the menu.

Image: Jason Tuinstra on Unsplash

December 21, 2021by David Klemt David Klemt No Comments

Square: 2022 Threats & Opportunities

Square: 2022 Threats & Opportunities

by David Klemt

As all hospitality professionals know, the past nearly two years is imposing rapid change on the industry, necessitating rapid, strategic adaptation.

The key word in the above sentence isn’t “adaptation,” it’s “strategic.”

Of course, it’s hard to make strategic choices without as much information as possible.

To that end, we’ve reviewed Square‘s recently released “Future of Restaurants: 2022 Edition.” This is the company’s second annual Future of Restaurants report.

Square partnered with Wakefield Research, surveying 500 operators and 1,000 consumers to identify 2022 threats and opportunities.

Threat: Labor Shortage

Most operators aren’t going to want to read this prediction from Square. However, we can’t identify and adapt for opportunities if we don’t acknowledge threats.

Per Square’s report, the labor shortage may never see a correction. In other words, welcome to yet another new normal.

More than 70 percent of operators say they’re facing a labor shortage, per Square. Just over 20 percent of available positions were, at the time the survey was conducted, unfilled.

Instead, operators will likely, according to Square, need to make operational and work culture changes:

Improve working conditions. For example, encouraging and acting on team feedback. Another example? Modernizing scheduling.
Ensure workers are being mentored and not simply managed.
Hire, train, assign tasks, and schedule more strategically to operate with a smaller team.
Offering incentives that entice higher-quality candidates to work for you.

One participant quoted in the Square report claims that QR code ordering dropped their labor cost percentage by 150 percent.

Threat: Lack of Tech

As SevenRooms suggested when looking forward to 2022, technology solutions can lessen the burden of labor shortages. That leads us to another big threat: failing to embrace tech.

Some operators bristle at the word “automation.” For many, it conjures an image of robots in the kitchen and delivering food to tables.

Obviously, we’re opposed to replacing staff with any form of automation. However, we support automating tasks if that means team members are better utilized.

Why not automate inventory? Why not automate online order filling? If it improves operations and the guest experience, automation is less threatening.

According to Square’s report, 62 percent of operators think automation is appealing for managing online, delivery, and contactless orders. Ninety percent of operators say that back-of-house automation—if staff can focus on more important tasks—is a good idea.

More than 90 percent think automated inventory is an appealing solution.

It has taken a lot of time for hospitality to catch up to other industries in embracing tech. But Square reports that 36 percent of restaurants upgraded their business tech in 2021.

Of course, automation will become a threat if operators lean too heavily into it and stop paying attention to detail.

Phrased another way, be tech-savvy, not tech-reliant.

Opportunity: Omni-channel

Square see implementing an omni-channel strategy as the way forward. In fact, their general manager for Square Restaurants, Bryan Solar, said the following:

“We see the time of the dine-in only or takeout only as largely done forever.”

Going omni-channel (diversifying) in the restaurant space means making online ordering and delivery important elements within the overall business strategy. To that end, Solar posits kitchens will grow in size to better handle online orders.

Square’s survey reveals some intriguing numbers:

13 percent of consumers say they’ll avoid restaurants that don’t offer online ordering.
Among restaurants with online ordering, those channels generate 34 percent of their revenue.
Over the past year, 54 percent of restaurants either added or expanded online ordering channels.
Online ordering is likely here to stay: 69 percent of respondents plan to offer it post-Covid-19.
24 percent of operators are planning to allow guests to order alcohol from them online.

Another interesting set of numbers pertains to first- and third-party delivery. As we’ve stated several times, we much prefer operators offer first-party or direct delivery. According to Square, 49 percent of operators plan go direct delivery. More than half—62 percent—will pursue third-party delivery. That suggests that some operators will offer both.

Opportunity: Direct Ordering

When it comes to engaging online guests, operators need to control the experience. As I wrote for another publication years ago, a restaurant or bar’s website is still very important.

This statistic proves that statement true: Per Square, 68 percent of online guests want to order via a restaurant’s website or app, not a third-party.

More than likely, a significant portion of those guests want to know they’re supporting a restaurant and its staff directly. Hence the importance placed on ordering via the website or their own branded app.

So, operators would do well to ensure their websites feature an ordering widget. Or, they can opt to have an app built (or at least skinned) for their business.

Opportunity: Kiosks

According to Square’s survey results, 79 percent of consumers prefer ordering from kiosks over ordering from staff.

Most consumers and operators likely associate ordering kiosks with fast food restaurants. However, other categories can also benefit from these devices.

Close to half—45 percent—identified it as a preference when ordering at a casual-dining restaurant.

And fine dining isn’t immune to the convenience of tech. A little over 20 percent of consumers prefer to order via kiosk in the fine-dining space.

Overall, kiosks speak to the guest desires for convenience and safety. More than a third indicated that ordering via digital menu is appealing because they don’t have to touch a menu someone else has touched. And 37 percent like a digital option because they don’t have to wait for a server to bring them a physical menu.

Eleven percent of Square survey respondents will avoid a restaurant if they don’t offer digital menus.

Nearly half (45 percent) of restaurants are planning to offer QR code menus post-Covid-19. Another benefit of digital menus is dynamic pricing. As costs fluctuate, operators can increase or reduce prices easily without printing new menus.

Outlook

Representing a stark contrast from 2020 survey results, nearly 60 percent of operators say the survival of their restaurants is a concern in 2022.

That’s still a high number but vastly lower than how operators answered about 2021. Last year, 92 percent of operators surveyed said they were worried about survival.

According to Square’s report, operators are looking past surviving and making long-term plans. That’s a welcome sign that confidence is improving.

To review Square’s “Future of Restaurants: 2022 Edition” report in its entirety, click here.

Image: Patrick Tomasso on Unsplash

December 20, 2021by David Klemt David Klemt No Comments

SevenRooms Predicts 2022

SevenRooms Predicts 2022

by David Klemt

As we near the end of a tumultuous 2021 we must look ahead to 2022 to set our industry up for best strategies, innovations, and recovery.

SevenRooms is doing just that, looking at what operators should consider to meet guest expectations next year.

In a blog post on the company’s website, SevenRooms reveals what they believe are the keys to success in 2022.

Let’s jump in.

More is More

The first quarter of 2022 will mark two years of the pandemic and its affects on the industry.

As SevenRooms says, some guests will not have been out of their homes for two years. The company predicts this contingent will be looking to unleash pent-up demand.

Of course, that represents an opportunity for operators. Another wave of pent-up demand can mean a boost in traffic and revenue.

However, guest expectations will be sky high. That cliché that less is more? Yeah, you can toss that right out.

More will be more for this contingent of guests looking to dine and drink out after feeling cooped up for month after endless month.

Sure, some guests are aware that operators are facing labor shortages, increased costs, and other pandemic-driven challenges. They know that workers are overwhelmed and finding themselves in hostile confrontations they certainly don’t deserve.

And sure, some guests are sympathetic to those struggles. However, they have their demands and expect restaurants, bars, and hotels to meet them.

What can operators do to meet those demands? In fact, what can they do to anticipate and overdeliver on guest expectations?

SevenRooms has a couple suggestions.

Collect guest data. At this point, this should be a given. How can an operator engage with and retain guests if they don’t really know anything about them?

Embrace more tech. Platforms like SevenRooms can handle a restaurant or bar’s reservations quickly and easily. This is a feature that, per SevenRooms, more than half of guests expect a restaurant or bar offer. Some platforms can also automate marketing; send guests post-visit surveys; and tackle review aggregation.

Convenience Reigns Supreme

Here’s a quick, impromptu survey:

Do you prefer a seamless restaurant, bar or hotel experience, or do you like frustrating dining, drinking and lodging experiences?

I’m going to go ahead and assume you prefer the former option. In other words, you like what your guests like: convenience.

Well, SevenRooms is predicting that the desire for convenience will only grow stronger among guests.

Yes, delivering on the increasingly important topic of convenience will rely on collecting data. But rather than view it as just one more task, SevenRoom suggests looking at it in a more positive light.

A number of the conveniences guests expect can be automated. They can even help ease the burden of the labor shortage somewhat.

For example, contactless ordering and contactless pay are close to becoming standards. Offering those features to guests means meeting expectations, thereby delivering an excellent guest experience. On-demand ordering and paying can also ease some front- and back-of-house pressure.

Collecting guest data allows management and front-of-house staff to add personal touches before a guest is even seated. Again, seamless, excellent guest service.

Another convenience? Online ordering. SevenRooms isn’t the first to predict that on-demand ordering is here to stay. In fact, a suite of conveniences will be important moving forward:

Online ordering during in-person visits and for delivery or pickup.
A user-friendly reservation system that goes deeper than just picking a date and time. Why not allow guests to select seats and even request upgrades?
A virtual waitlist. Not only is this convenient, SevenRooms says this feature can boost walk-in traffic and reduce abandonment.
Contactless, mobile paying options.

There you have it. Two seemingly basic predictions—higher expectations and a desire for even more convenience—with the potential to boost traffic, loyalty, and revenue.

Image: SevenRooms

Yellow neon "butter" sign and scaffolding

December 8, 2021by David Klemt David Klemt No Comments

Canadian Trends 2022: Technomic

Canadian Trends 2022: Technomic

by David Klemt

Curious about what to expect in 2022 as a Canadian restaurant, bar or hotel operator?

Technomic has some predictions for next year.

Reviewing their “Canadian Trends: Looking Ahead to 2022” report, creativity and streamlining will be keys to success.

Let’s jump in!

Butter

Yes, this is why I chose the image above. Technomic is very specifically identifying butter as an important 2022 F&B trend.

And no, they don’t appear to be predicting the popularity a particularly rare or esoteric butter. The industry intelligence firm means butter will prove important in 2022.

In large part, Technomic is pointing to comfort food as a driver for butter.

Generally, the firm points to how versatile butter is in the kitchen. Browned and herb-infused butters, says Technomic, will find its way into cocktails.

Flavor and texture will play an important role, extending the butter prediction into buttery foods territory. For example, Technomic predicts butterscotch, buttermilk and ghee will see a boost in usage and demand.

Additionally, the plant-based movement will help nut butters grow more popular. In fact, Technomic says nut butters will find their ways onto burgers and into cocktails.

Interestingly, the firm’s butter prediction gives operators two larger trends to watch: comfort food and plant-based.

Cross-utilization

You don’t need me to tell you that North America—and the rest of the world—is facing supply chain issues.

I know you’re exhausted from just the past nearly two years of constant adaptation and pivoting. In 2022, you’ll have to continue with your creative problem solving.

The supply chain challenge (there’s an understatement) requires creativity in several areas. This includes the kitchen and menu.

Technomic suggests that one path forward through supply chain problems involves ingredient preparations:

Pickling
Candying
Salt-baking

The firm says these creative takes on ingredients operators already have will extend product life; add new flavors to dishes; and deliver new textures. Those last two offer guests new experiences.

In addition, getting creative with the ingredients you may be able to get more readily will help streamline and update 2022 menus. However, revising your menu will require careful consideration of your supply chain and cross-utilization, with a heavy helping of creative prep.

Running Lean

Smaller footprints. Shrunken staff. Streamlined menus. Smaller, shrunken, streamlined, optimized, leaner…

Call the process whatever you want, Technomic is predicting that operators will need to “optimize” (read: make smaller) their businesses.

Of course, there isn’t a one-size-fits-all solution. We’ve read and heard predictions since last year about what will need to shrink moving forward.

While some recent news reports say that ghost kitchens are out, Technomic seems to think that’s not the case. Technomic suggests ghost kitchens will remain viable for operators who want to expand without investing in real estate.

Additionally, Technomic’s report suggests something that should come as no surprise. In short, if it works for a brand or location, smaller may be better and here to stay.

Growth

Now, this is the most promising of Technomic’s predictions: Growth.

Per the firm, the foodservice industry in Canada was down 29 percent in Q1 of 2021. Pre-pandemic, sales reached $95 billion. That represents a loss of nearly $30 billion.

However, there’s reason to be optimistic in 2022, according to Technomic.

The firm expects growth of 21 percent in 2022 over 2021, or sales of $74.8 billion. Should this prediction prove accurate, 2022 would close just three percent under pre-pandemic sales.

Technomic identifies full-service as the foodservice segment to experience the most growth next year at 26.2 percent. In comparison, the firm predicts limited-service to grow 7.3 percent.

Next year won’t be easy. 2022 won’t be a magical return to normalcy. But there is room for optimism if Technomic’s predictions are correct.

Image: Jon Tyson on Unsplash

Classic vintage Dodge pickup truck with winter wreath on grille

December 6, 2021by David Klemt David Klemt No Comments

Hard Numbers for the Holidays

Hard Numbers for the Holidays

by David Klemt

From comfort foods and specific seasonal flavors to LTOs and traditional tastes, data reveal what consumers want this holiday season.

As we reported last week, there’s reason to be optimistic about this year’s holiday season.

According to Datassential, consumers are eager to visit sit-down restaurants this month. One of their key findings was that the average group size will likely be smaller than normal.

Specifically, most groups will probably consist of seven to 12 guests. Crucially, Datassential sees potential from people eager to gather with family and friends for the holidays. Even better, of all options, sit-down restaurants are the top choice for gatherings outside of homes.

But drilling down deeper, what do guests want from restaurants during the holidays?

The Numbers

So, when it comes to the holidays, Datassential wants operators to remember that December includes more than Christmas and New Year’s Eve.

To that end, the first numbers I’m presenting are dates:

Hanukkah: November 28 to December 6 (ends this evening!)
Soyal: December 21
Christmas: December 25
Boxing Day: December 26
Kwanzaa: December 26 to January 1
New Year’s Eve: December 31
New Year’s Day: January 1

Those dates reveal something compelling: Plenty of opportunity to get creative and ramp up limited-time offers. Per Datassential, nearly half (44 percent) of consumers look forward to seasonal, holiday-themed LTOs.

In fact, roughly two out of five consumers find seasonality to be an important factor in their decisions to order LTOS and new menu items.

However, it’s important to know your audience and brand when coming up with special menu items. That’s because according to Datassential, 62 percent of consumers, at least for 2021, want classics and comfort food this season.

So, Datassential cautions operators against veering “too far” from traditional seasonal menu items and comfort foods. That said, you should know how far outside the box you can push your guests.

The Flavors

We’re not technically out of the fall just yet. The start of winter is December 21.

It can be smart to begin transitioning from fall to winter flavors over the next week or so. However, it may not be wise to toss fall flavors out entirely.

Datassential identifies the following as key fall flavors:

Apple cranberry
Butternut squash
Chestnut
Duck
Pumpkin pie
Stuffing

And these are important winter flavors, per Datassential:

Chocolate almond
Candy cane
Lobster cream
Lox
Red velvet
Toasted coconut

Those are by no means the only fall and winter flavors that will appeal to your guests. However, Datassential identifies them as top fall and winter flavors.

Something to think about when finalizing your winter LTO food and beverage menus.

Another thing to think about? Updating your listings to include holiday hours, LTOs, and other menu changes.

Image: Ryan Wallace on Unsplash

November 30, 2021by David Klemt David Klemt No Comments

Global Cuisine Performance

Global Cuisine Performance

by David Klemt

We don’t have a crystal ball to help us see which cuisines will be most popular. Obviously, the same holds true for knowing which are just now getting recognition.

However, we do have the next-best thing: data from Datassential.

Recently, the food and beverage analytics firm ranked dozens of global cuisines according to their current state of popularity among diners.

Then, they shared that information in October during their “Around the World in 80 Trends” webinar.

“Ubiquity”

When analyzing food and beverage trends, Datassential funnels them into four distinct designations: Inception, Adoption, Proliferation, and Ubiquity.

Arguably, once a trend reaches Proliferation and Ubiquity it becomes a mainstay. So, we can more than likely stop referring to it as a trend.

Now, the two most precarious stages for a trend are Inception and Adoption. Plenty of trends die on the Inception vine. Several won’t make it out of Adoption.

When you see Datassential’s list of global cuisines that fly under the Ubiquity banner, I doubt there will be much surprise:

Italian
Southern
Mexican
Creole/Cajun
Tex Mex
Chinese

So, any shocks to your system there? Most likely not.

“Proliferation”

Another to label this Datassential designation is “second most popular.” Each of these cuisines has a clear shot at reaching Ubiquity.

In fact, I find one of the global cuisines in this category surprising. It’s the first one in this list:

Japanese
Regional Italian
Regional Mexican
Greek
Mediterranean
Regional US
Southwestern
Cuban

As you’ll see, the lists grow longer steadily as we move down from Ubiquity.

“Adoption”

For me, it’ll be interesting to review follow-up data from Datassential regarding global cuisines.

As such, I’m eager to learn which cuisine from the list below reaches Proliferation in 2022:

Caribbean
Indian
French
Regional Chinese
Oaxacan
German
Middle Eastern
Korean
Ashkenazi
Hawaiian
Vietnamese
Venezuelan
Spanish
Sicilian
Jamaican
Israeli
Thai
British

To be honest, my first reaction to seeing French cuisine under the Adoption banner was surprise. Of course, I then thought back to how many French restaurants we have here in Las Vegas.

Sure, this little city in the desert is a foodie destination. However, French restaurants don’t dot the landscape like those that focus on other cuisines.

“Inception”

That brings us to the first stage of any trend: Inception.

Now, the first thing you’ll notice is that this category contains the most global cuisines. Whereas Adoption features 18, Proliferation lists eight, and a mere six have reached Ubiquity, Inception identifies two dozen.

They are as follows:

Brazilian
Mizrahi
Russian
Malaysian
Croatian
Moroccan
Lebanese
South African
Native American
Central American
Argentinian
Peruvian
Filipino
Appalachian
Sephardic
Ethiopian
Senegalese
Scandinavian
Sonoran
Nigerian
Iranian
Persian
Turkish
Polish

Again, there are some surprises here, at least for me. For example, I expected Ethiopian cuisine to have reached Adoption by now.

Takeaways

Of course, there are multiple ways to interpret this data.

First, you can embrace Ubiquity, leveraging their incredible popularity. However, standing out and building traffic will be challenging.

Second, you can feature Proliferation cuisine. Sure, these have yet to reach the Ubiquity stage. But they’re close to doing so, and you’ll also face stiff competition.

Third, focusing on cuisine from the Adoption designation involves taking a risk but mitigating it somewhat. These cuisines are developing a following and guest demand.

Finally, the riskiest move, depending on location: featuring Inception cuisines. But with risk comes reward. Identify a gap in a certain area—something we can do with our signature feasibility studies—and you may realize staggering success.

So, what do you think? Did you find any of Datassential’s designations surprising for certain cuisines? Let us know on our Instagram, Facebook, Twitter or LinkedIn pages!

Image: Jorge Zapata on Unsplash

Friends toasting with Champagne outside during the winter

November 29, 2021by David Klemt David Klemt No Comments

Things Looking Up For December

Things Looking Up For December

by David Klemt

Food and beverage research and analytics firm Datassential’s end-of-year insights point to a positive outlook for restaurants in December.

While many consumers still have reservations about spending time in public, others are eager to return to “normal.”

Restaurants and bars are expected to play an important role in reaching normalcy this holiday season.

Let’s take a look at Datassential’s 2021 Holiday Issue statistics.

Hesitancy Waning?

Let’s get the less-promising data out of the way first. Some consumers still find the idea of in-person restaurant visits uncomfortable.

Nearly half of Boomers surveyed by Datassential (46 percent) said they’re “significantly less likely” to visit a fast-casual or fast-food restaurant in December.

And, interestingly, 42 percent of men gave the same answer for visiting traditional sit-down restaurants.

However, of all the in-person options presented to participants by Datassential, restaurants performed the best.

More than half of all respondents—men, women, Gen Z, Millennials, Gen X, Boomers—plan to visit fast-casual, fast-food, and sit-down restaurants more in December than they have in recent months.

It’s most likely that anticipation for restaurant visits is driven by the desire to gather and celebrate the holidays.

Overall, 57 percent of respondents plan to visit fast-casual and fast-food restaurants more. And 47 percent expect to visit sit-down restaurants more.

That makes those two options the top answers.

Only 16 percent of respondents indicated they don’t plan on visiting any on-site foodservice venues.

Regarding bars, sports bars, lounges, and nightclubs, men are “significantly more likely” (23 percent) to visit those types of venues in December.

Holiday Opportunity

According to Datassential’s report, the opportunity for holiday bookings is out there.

More than likely, gatherings will simply be smaller than they were prior to the pandemic.

Asked about plans to gather at restaurants in December, get-togethers are expected to be “moderately sized.”

Almost half of survey respondents (44 percent) plan on gathering at restaurants in parties of seven to twelve.

Just over a quarter (29 percent) plan on get-togethers of six or fewer of people. Only 18 percent of respondents are planning large (13 to 18 people) gatherings at restaurants in December.

As far as parties of 19 or more, just nine percent of respondents plan “very large” gatherings.

Of course, individual operations’ results will vary. However, this information gives us an idea of what traffic may look like for many operators.

2021 Spending

This is where the news looks even better for restaurants, bars and nightclubs in December.

When asked about spending money on going out to eat and for drinks, just 18 percent of respondents said they planned to spend less this year than in 2020.

Very nearly half (49 percent) plan to spend the same as they did last year. However, 32 percent said they think they’ll increase their spending.

When it comes to New Year’s Eve, the numbers shift a bit. However, 50 percent of respondents plan to spend the same on NYE in 2021 as they did in 2020.

Twenty-six percent plan to spend more on NYE in 2021. Just 24 percent plan to spend less this year on NYE.

Per Datassential, Millennials are most likely to splash out for NYE this year.

So, things won’t be returning to pre-pandemic normalcy by 2021’s end. However, if Datassentials findings prove accurate, things are looking healthier for December.

Image: Christine Jou on Unsplash