Delivery

by David Klemt David Klemt No Comments

Top 2022 Grubhub & Uber Eats Drinks

Top 2022 Grubhub and Uber Eats Drink Orders

by David Klemt

Margarita with dehydrated citrus garnish

The year-end Grubhub 2022 Delivered and 2022 Uber Eats Cravings reports identify this year’s delivery order drink trends.

Last week, we dove into Grubhub and Uber Eats’ top food orders. If you haven’t already, read that article here.

This week we’re going to check out what drinks were most popular in 2022 for both platforms.

Top Grubhub Coffee Orders

People are still working from home, full- or part-time. So, it makes sense that consumers are placing coffee orders for breakfast, snack, and lunch dayparts.

  1. Iced Coffee
  2. Hot Coffee
  3. Iced Caramel Coffee
  4. Iced French Vanilla Coffee
  5. Frozen Coffee

Top Grubhub Milk Alternatives

Of course, with coffee orders come milk orders. And as you’re probably well aware, milk alternatives are only growing more popular with consumers.

So, below are the top milk alternatives among 2022 Grubhub users.

  1. Oat Milk
  2. Almond Milk
  3. Coconut Milk
  4. Soy Milk
  5. Cashew Milk

As a possible explanation for the dominance of oat milk, sustainability could be a driver. According to available data, producing a pound of oats is much more sustainable than producing one pound of almonds.

It’s believed that oats are more favorable when it comes to basically every measure of sustainability.

Top Grubhub Alcohol Orders

I can’t say that I’m shocked to find the Margarita is the top cocktail order. It is, after all, the long-reigning Queen of Cocktails.

  1. Beer
  2. Margarita
  3. Hot Sake
  4. Piña Colada
  5. White Wine (Sauvignon Blanc)

I’ll admit that I’m slightly surprised that a red wine isn’t among the top five.

Top Uber Eats Alcohol Orders

Interestingly—perhaps a bit frustratingly—Uber Eats took a different approach to identifying their top drinks.

Rather than dedicating space solely to alcohol orders, their top drinks are part of combinations. As in, the “most frequently paired food + alcohol” combos.

So, here’s their list in its entirety:

  1. Steak + Margaritas
  2. Pizza + White Claw
  3. Burritos + Margaritas
  4. Chicken + Sangria
  5. Wings + Beer

However, there’s another drink in the Uber Eats “most unexpected food combos” section:

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

Therefore, we can reasonably extrapolate that the top 2022 Uber Eats alcohol orders are the Margarita, White Claw, Sangria, beer, and Martini.

Takeaway

If we compare reports and look for similarities, we see that two drinks are at the top: beer and Margaritas.

Both make sense. Beer, in can, bottle, and growler forms, travels very well. That makes beer ideal for delivery where it’s legal.

And as far as Margaritas go, there’s a wide array of canned options available. Again, canned cocktails travel well for delivery. Of course, restaurants and bars can also obtain the equipment to prebatch and package their signature Margaritas.

Ideally, your POS system can run reports to identify which drink orders are most popular for your delivery customers. Also ideal: operators should take as much control over their business as they can, implementing direct delivery as long as it’s feasible.

So, look into direct delivery, run your reports, and take more control while reducing costs.

Image: Edward Howell on Unsplash

by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

by David Klemt David Klemt No Comments

Canada’s Top 2022 DoorDash Orders

Canada’s Top 2022 DoorDash Orders

by David Klemt

Burgers, French fries and milkshakes

Operators curious about the most popular delivery items in 2022 will be happy to learn that DoorDash’s year-end report is ready for viewing.

Those who want to compare it to predictions from several sources earlier this year can click here. The DoorDash Canada report can also be compared to consumer trends in Canada revealed back in October.

Before we jump in, I’m not detailing the DoorDash report in its entirety here. To review the entire report, please click here.

Instead, I’ll be sharing the top takeaways in terms of top menu items; top cuisines; and top items by province.

Speaking of provinces, a word to New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, and the Yukon. Please don’t break out the pitchforks and come for me for not including you in this article. DoorDash’s report only covers data from six provinces—I didn’t leave you out intentionally.

Top DoorDash Cuisines in Canada

  1. American
  2. Mexican
  3. Japanese
  4. Thai
  5. Mediterranean
  6. Indian
  7. Chinese
  8. Italian
  9. Korean
  10. Filipino

Top DoorDash Items in Canada

  1. Burgers & Fries
  2. Fried Chicken
  3. Poutine
  4. Sushi Rolls
  5. Chicken Wings
  6. Burritos
  7. Chicken Rice Bowl
  8. Shawarma Wraps
  9. Curry
  10. Pad Thai

I think there’s one key takeaway that stands out in regards to this list. Notably, it appears that while chicken isn’t number one, it’s undeniably popular amongst Canadian DoorDash users.

In fact, according to DoorDash data, chicken reigns supreme in British Columbia. When you reach the province-specific sections below, you’ll see how powerful the cravings in BC are for chicken.

Top DoorDash Late-night Items

Again, chicken rules the DoorDash roost in this category.

  1. Chicken Nuggets
  2. Fries
  3. Poutine
  4. Chicken Wings
  5. Chicken Burgers
  6. Apple Pie
  7. Cheeseburger
  8. Spinach & Cheese Dip
  9. Chocolate Fudge Sundae
  10. Crispy Chicken

Top DoorDash Items: British Columbia

  1. Burrito Bowl
  2. Szechuan Chicken Lettuce Wraps
  3. Butter Chicken
  4. California Roll
  5. Crispy Chicken Sandwich
  6. Tofu Bowl
  7. Chocolate Chip Cookies

Top DoorDash Items: Ontario

  1. Cheeseburger
  2. Coffee
  3. Burrito Bowls
  4. Chicken Shawarma
  5. Crispy Chicken
  6. Bagels
  7. Pad Thai
  8. Beef Patty
  9. Pizza
  10. Onion Rings

Top DoorDash Items:Alberta

  1. Spinach and Cheese Dip
  2. Chicken Cheddar Sandwich
  3. Chilli Chicken
  4. Kale Salad
  5. Margarita Pizza
  6. Hot Apple Turnover

Top DoorDash Items: Québec

  1. Poutine
  2. Cappuccino
  3. Pad Thai
  4. Steak and Cheese
  5. Croissant
  6. Dumplings
  7. Chips
  8. Tacos

Top DoorDash Items: Saskatchewan

Interestingly, a beverage item holds the top spot in Saskatchewan.

  1. Bubble Tea
  2. Pepperoni Pizza
  3. Pork Bun
  4. Crispy Pork
  5. Garlic Bread
  6. Pasta

Top DoorDash Items: Manitoba

  1. Fries
  2. Butter Chicken
  3. Red Velvet Cake
  4. Poke Bowl
  5. Shawarma Wrap

As I stated in Wednesday’s article detailing Grubhub and Uber Eats’ reports for the US, we believe operators should take as much control over their restaurants and bars as possible. At KRG Hospitality, that means implementing direct delivery if it makes sense: ease of use, delivery capabilities, favorable costs, etc.

It’s also helpful to know what consumers in your area are craving and ordering. Such information can provide a useful baseline for many concepts’ menu development.

Image: John Fornander on Unsplash

by David Klemt David Klemt No Comments

$28.82 per Hour for NYC Delivery Workers?

$28.82 per Hour for NYC Delivery Workers?

by David Klemt

Delivery worker on bicycle on city street

In response to the New York City Council’s proposal of $23.82 per hour for delivery workers, some “deliveristas” are asking for more.

Now, before we proceed, no, this isn’t a re-run of an article from last week. This isn’t a case of déjà vu—it’s the evolution of a news story that’s developing rapidly.

So, how much more do delivery workers in NYC want? Well, they’re after a significant bump over the council’s minimum hourly wage proposal.

Requesting that the NYC Council more accurately account for deliverista expenses, some delivery workers are asking for $28.82 per hour.

Early last week, a group consisting of Los Deliveristas Unidos and the Worker’s Justice Project members came together. They gathered at New York City Hall to make their stance on the NYC Council’s minimum wage proposal.

As the deliveristas see it, an increase from $23.82 to $28.82 more accurately reflects their operating expenses. The argument is compelling when one considers costs beyond fuel.

Asking for More

After all, not every delivery worker in NYC (and other markets) uses a car, truck or SUV to make deliveries. That should explain the use of the term “delivery worker,” not “delivery driver.” Some deliveristas ride motorcycles, mopeds, or bicycles. I’m willing to bet some even use scooters, rollerblades, or skateboards.

Using any mode of transportation as a delivery worker comes with requirements, both legal and practical. For example, deliveristas must maintain insurance, maintain their transportation, and purchase and maintain safety equipment.

And yes, that safety equipment is crucial. According to some reports, around a third of NYC those who deliver on two wheels have been injured on the job. Tragically, 33 delivery workers have been killed since 2020. In fact, NYC says delivery workers have the highest injury rate.

Another interesting development may seem semantic. However, when one takes time to truly consider the point it’s rather poignant.

In asking for the proposal of $23.82 to rise by $5 by 2025, are asking for a living wage. Not minimum wage, as the proposal frames the hike, but a living wage.

One worker, Antonio Solís, as quoted by The City, a non-profit NYC news publication, explained: “We are asking the city to make a $5 adjustment, to go that extra mile to ensure we get to a living wage.”

A Request, not a Rejection

It’s also important to note that NYC’s delivery workers aren’t rejecting the council’s minimum wage proposal. Rather, the request is that the council considers updating their proposal ahead of a December 16 public hearing on the matter.

So far, companies like DoorDash, Grubhub, and Uber Eats haven’t released much in the way of statements. However, there have been reports quoting a handful of representatives. In pushing back against the proposal, they’ve mentioned increased costs; reduced deliveries; and the possibility of “locking out” deliveristas if delivery demand is low at a given time.

Should legislation go into effect after the public hearing, it’s likely we’ll see lawsuits from the delivery companies.

Image: Patrick Connor Klopf on Unsplash

by David Klemt David Klemt No Comments

$23.82 Minimum Wage for Delivery Workers?

$23.82 Minimum Wage for Delivery Workers in NYC?

by David Klemt

Red "New York" sign on building

With a public hearing on the docket for December 16, the New York City Council is proposing “fairer pay for delivery workers.”

The move is a year in the making. Last year, the NYC Council approved legislation with the goal of improving delivery worker pay and working conditions.

Now, the council is moving to increase minimum wage for the 60,000-plus delivery workers in the city.

At the risk of coming across as pessimistic, the legislation is likely to be unpopular with third-party delivery services. After all, when NYC and San Francisco passed laws to cap third-party delivery commissions, the big services filed lawsuits.

So, again, increasing the minimum wage for delivery workers in NYC will probably not go down well with companies like Uber, DoorDash, and Grubhub.

It’s possible we’ll find out before the end of this year. After the public hearing, the NYC Council will consider public comments. Then, the council could move forward and enact the legislation.

What’s in the Proposal?

Should the rule go into effect after the public hearing on December 16, minimum wage would rise to $17.87 per hour for third-party delivery workers. By April 1, 2025, that rate would increase to $23.82.

“This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city,” says New York City Mayor Eric Adams.

According to reports, Brooklyn Borough President Antonio Reynoso is in favor of the legislation as well.

“It’s absolutely unacceptable that the restaurant delivery workers who provide for so many in this city are not justly compensated for their time, reimbursed for their expenses or provided essential benefits,” says Reynoso.

So, how did the council arrive at the $23.82 per hour figure? Well, we actually have that information:

  • $19.86, which matches standards set by the New York City Taxi and Limousine Commission for ride-hail drivers;
  • $2.26 for expenses delivery workers incur; and
  • $1.70 for worker’s compensation.

Why Legislate Delivery Worker Pay?

It appears the main reason is an incredibly simple one. In short, third-party delivery workers aren’t making minimum wage in NYC.

Per the Department of Consumer and Worker Protection (DCWP), delivery workers average less than the city’s $15 minimum wage. With tips, they’re averaging $14.18. And without tips? As one can imagine, the hourly rate plummets: $7.09 per hour.

According to the DCWP, the average hourly expense a delivery worker incurs is $3.06. So, that drives their hourly pay to $11.12 with tips, $4.03 without.

In an argument likely to be cited in any lawsuit filed by DoorDash (or at least shared in a public statement), the company claims its delivery workers make almost $29 per hour.

Clearly, there’s a discrepancy somewhere. Either delivery drivers are woefully underpaid for the service they provide or multiple researchers are misinterpreting hourly pay data.

Several sources have cited a statement made by a DoorDash representative about the NYC Council’s proposal:

“Dashing allows so many across New York City to earn when, where and how often they choose,” says the rep. “Unfortunately, the proposed rule does not appropriately account for this flexibility or that Dashers are able to choose which deliveries they accept or reject.”

Their statement continues, addressing a possible rise in costs and drop in orders:

“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support.”

Why Should I Care if I Don’t Operate in New York City?

We’ll see—quickly, apparently—if this proposal becomes law. Should that happen, there’s reason to assume similar proposals will pop up in other cities and states.

We’ll also see whether or not third-party delivery companies file lawsuits in response. They’ve done so for commission caps, after all.

At any rate, this is one to watch. Similar legislation could be coming to your market.

Image: Nik Shuliahin 💛💙 on Unsplash

by David Klemt David Klemt No Comments

How a Chain Lost My Business Forever

How the Staff at a National Chain Lost My Business Forever

by David Klemt

Chocolate cookie and cookie crumbles

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

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

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

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

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

Third-party Issues

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

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

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

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

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

Downhill Fast

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

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

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

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

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

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

Standards of Service

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

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

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

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

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

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

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

Different Treatment?

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

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

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

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

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

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

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

Either way, the damage is done.

Image: Andre Moura via Pexels

by David Klemt David Klemt No Comments

The Numbers on Food Delivery in Canada

The Numbers on Food Delivery in Canada

by David Klemt

Burger in container inside car

For most restaurants, delivery is now a crucial service element rather than a “nice-to-have” option a small percentage of guests expect.

This is true whether your restaurant is in the US or Canada. But who’s placing orders? How are they ordering? And will they continue to order for the foreseeable future?

Well, Restaurants Canada has answers to all those questions and more. So, we let’s take a look at what their 2022 Foodservice Facts report says about delivery.

To download your own copy of this informative report, click here.

Who’s Placing Orders?

In their 2022 Foodservice Facts report, Restaurants Canada looks at three age groups:

  • 18 to 34
  • 35 to 54
  • 55-plus

Perhaps unsurprisingly, the 18- to 34-year-old cohort leads the charge when it comes to ordering delivery. It’s also not surprising that 35 to 54 comes in second, and 55 and older is third.

However, the first two groups are closer than some may assume. Eighty-three percent of the the 18 to 34 cohort placed orders at quick-service or full-service restaurants between December 2021 and May 2022.

That number does drop for the same time period among the 35 to 54 group, but not by a significant amount. Of that cohort, 77 percent ordered delivery. Just over half of the 55-plus group placed delivery orders: 52 percent.

Now, those numbers are down a bit from 2021, which makes sense. Things were much more restrictive in 2021 and people were just getting back to a sense of normalcy at the start of this year.

In 2021, the delivery order percentages were:

  • 18 to 34: 89 percent
  • 35 to 54: 81 percent
  • 55-plus: 67 percent

Looking at these numbers, it appears the 55-plus cohort is more comfortable dining out in person. Conversely, the 18 to 34 age group is clearly comfortable making delivery a part of their everyday lives.

How do People Want to Order?

Believe it or not, your website still matters. I’ve been saying this for years but the pervasiveness of delivery and takeout ordering is really driving this point home.

The fact is, a notable percentage of your guests want to support your restaurant and staff directly. Over the past couple of years, consumers have become well aware that third-party delivery services are incredibly costly for operators.

Consumers are also aware of third-party delivery debacles, such as the abysmal Grubhub “Free Lunch” mess from May of this year.

So, direct delivery is something that operators need to at least consider. Implementation is often less difficult than most business owners believe. And many platforms, SevenRooms, for example, make implementing direct delivery simple and affordable.

Interestingly, Restaurants Canada data supports the need for direct delivery. Back in May, the industry advocacy organization asked survey respondents how they prefer to place delivery orders from restaurants.

Preferences for QSR customers:

  • No preference: 10 percent
  • Over the phone: 19 percent
  • Third party: 35 percent
  • Restaurant website or app: 36 percent

Full-service customer preferences:

  • No preference: 8 percent
  • Over the phone: 28 percent
  • Third party: 29 percent
  • Restaurant website or app: 35 percent

Honestly, I find it surprising anyone calls a QSR to place an order. However, I suppose that makes sense for an office or catering.

At any rate, make sure your website is up-to-date, you offer direct or “last-mile” delivery, and make it easy to navigate your menu and the ordering process.

Is Ordering Here to Stay?

Now, we all know why restaurant delivery has been supercharged the past two years. However, consumer trend data show that delivery was on the rise before the Covid-19 pandemic.

But now that people are eager to return to normal and the industry is on its way to returning to pre-pandemic levels, is delivery really here to stay?

According to another question asked of survey respondents by Restaurants Canada, more than half of QSR and full-service restaurant customers plan to stick with delivery.

For their 2022 Foodservice Facts report, Restaurants Canada asked back in May how often consumers planned to place delivery orders in the next six months.

Order frequency for QSR customers:

  • Never placed a delivery order and don’t plan to now: 29 percent
  • Order less often: 20 percent
  • Will order with the same frequency: 45 percent
  • Will order more often: 7 percent

Frequency of orders for full-service customers:

  • Never placed a delivery order: 24 percent
  • Order less often: 23 percent
  • Will order with the same frequency: 44 percent
  • Will order more often: 9 percent

Here to Stay?

Of course, there are multiple factors feeding the numbers above. Some people simply don’t like ordering and waiting for delivery. For these consumers, the practice doesn’t just seem convenient.

There’s also the consumer demand to return to in-person dining, socializing with family and friends. And, of course, meeting new people while dining out.

We must also consider inflation and rising costs. Often, restaurant spending is among the first to be reduced when consumers need to be more frugal. Rising menu costs are sure to curtail some delivery spending.

That said, it’s clear delivery is here to stay and must be considered a crucial element for most restaurant operations. QSR and full-service operators need to bear in mind is placing orders; how often they’re placing orders; and get them in the habit of placing orders directly.

Image: Oliur on Unsplash

by David Klemt David Klemt No Comments

Restaurants in Canada: Daypart Performance

Restaurants in Canada: Daypart Performance

by David Klemt

White clock on red background

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

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

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

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

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

Numbers Tell the Tale

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

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

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

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

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

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

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

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

Dinner is King

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

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

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

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

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

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

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

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

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

Image: CHUTTERSNAP on Unsplash

by David Klemt David Klemt No Comments

Will Virtual Kitchens Persist?

Will Virtual Kitchens Persist or Go Brick-and-Mortar?

by David Klemt

Closeup shot of double cheeseburger

Virtual kitchens and virtual brands are back in the headlines after a record-setting grand opening in Rutherford, New Jersey.

Well, I should clarify: A restaurant may now hold a specific record.

The restaurant in question is the first brick-and-mortar MrBeast Burger location. And the record it may hold claim to is most burgers sold in a single day by a single restaurant.

 

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A post shared by MrBeast Burger (@mrbeastburger)

Now, if you don’t spend much time on YouTube, you may not know MrBeast. So, here’s a quick rundown: He’s Jimmy Donaldson, a YouTube personality known for “expensive stunts.” In fact, he may be the pioneer of that type of content.

Right about now you may be wondering what this all has to do with virtual kitchens and brands. It’s quite simple, really. MrBeast was among the highest-profile virtual brands to launch during the pandemic.

Incredibly, MrBeast Burger boasts more than 1,700 virtual kitchen locations. And now, one brick-and-mortar MrBeast restaurant.

Leveraging Demand and Popularity

So, you’re an influential YouTube content creator with tens of millions of subscribers. Obviously, your channel is monetized. What else can you do to leverage your popularity?

Well, if there’s a pandemic crippling the globe and people are stuck at home, maybe you notice the demand for takeout and delivery. And perhaps you learn about something known as a “virtual kitchen.”

If you’re a foodie or maybe just a savvy businessperson, maybe you’d jump into the virtual space. It is, it goes without saying, much less expensive than opening your own restaurant. And if you perform well, that’s an excellent way to collect data and guest feedback.

Also, an efficient way to hone your brand without a lease, buildout or the overhead of a physical restaurant. In a way, a virtual brand is akin to a pop-up restaurant, only you can test hundreds of markets simultaneously.

Okay, so now let’s say you reach a rare milestone in the creator space: 100 million subscribers. MrBeast did just that in July of this year. Do you think you’d want to leverage the support of millions of fans willing to support you and your brand?

The first physical MrBeast Burger opened last week at the American Dream mall in New Jersey. Reports claim that over 10,000 people waited in line for the grand opening.

Oh, and that’s when the location may have claimed the aforementioned record: 5,500 burgers sold in one day. After just one day of operation, MrBeast wondered if the brand should franchise:

Virtual to Physical

This (potential) record-setting event brings virtual kitchens and brands back into the spotlight.

Of course, most virtual brands don’t have the same origin story as MrBeast. One hundred million supporters? That’s rarified air.

At any rate, virtual kitchens do offer potential physical restaurant operators a less expensive method of testing their concepts. Couple data collection and feedback with an accurate feasibility study and taking the next step may make sense. And it may make a tidy profit.

It’s possible we’ll see MrBeast franchise off the success of two years of operating virtually and opening a physical location. And it’s possible we’ll see other virtual brands expand beyond the virtual kitchen.

However, it’s important that virtual brand owners keep a few things in mind. One, online success doesn’t always translate to brick-and-mortar success. Two, the restaurant space doesn’t care about your subscriber count—the KPIs are entirely different here. Three, potential operators need to perform the proper studies—or retain an agency with experience performing them—rather than rushing into the restaurant space.

It’s highly likely we’ll see more virtual brands enter the physical restaurant world. How many will do so successfully remains to be seen.

Image: Eiliv-Sonas Aceron on Unsplash

by David Klemt David Klemt No Comments

Tech Shows Up in a Big Way at NRA Show

Tech Shows Up in a Big Way at 2022 National Restaurant Association Show

by David Klemt

NCR Aloha NRA Show booth

The number of tech platforms and solutions at the 2022 National Restaurant Association Show in Chicago was a sight to behold.

Once seemingly technology averse, our industry is awash in platform integrations, apps, and smart devices.

Drive-thru signs are reading license plates and collecting data. Digital menu signs are implementing facial recognition software. Automation is taking on more and more tasks.

Amazingly, the digital paint on the innovations we’re seeing isn’t even dry yet. While some developments may have taken years to come to market, it feels like they’re only one or two years “old.”

Here to Stay

People are still talking about a “return to normal” when it comes to the Covid-19 pandemic. To some, that means going back to their 2019 habits and lifestyles.

Well, that’s not going to happen in the restaurant, bar, or lodging spaces.

Delivery? Here to stay. Contactless payment? Not going anywhere. QR and digital menus? Commonplace at this point.

And contactless pickup? NRA Show 2022 attendees exploring the North Building encountered multiple pickup platforms.

To state the obvious, delivery is expensive. Combine inflation and rising gas prices with third-party delivery platform fuel surcharges and it’s only getting pricier.

Clearly, contactless pickup is becoming a more appealing solution for operators and their customers.

On the one hand, operators who invest in smart, contactless pickup lockers can avoid the exorbitant costs they incur from third-delivery companies. And on the other hand, customers know they can save money by picking up their orders themselves. Moreover, they know they can do so safely with contactless pickup.

Operators can now choose from an array of smart locker setups to leverage customer demand for safe, convenient takeout.

Your New Marketing Partner

Remember when people were blown away by QR code menus? Well, those are already old news.

As an aside, the fine-dining and luxury categories have been over QR codes for quite some time. However, they’re probably not going to be interested in the latest menu innovation. No, they’re much more eager to return to traditional, tactile, luxurious physical menus.

Other categories, though, will likely be interested in smart digital menus. As this tech gets smarter—perhaps terrifyingly so—your menu will be a supercharged sales associate.

There are digital menus coming to market that can recognize an operators guests…and then attempt to upsell them. The more a guest visits a venue with smart signs, the more the platform learns about them and their preferences. From there, the signs can attempt to sell them on a promotion like an LTO item.

Not long ago at all we learned that texting a consumer is a powerful way to market to them. Well, now we’re going to have the opportunity to sell them in a direct, interactive way straight from our menus.

Oh, and if this isn’t impressive enough, there are digital sign platforms capable of displaying surge prices. In the blink of an eye an operator will be able to leverage this type of pricing and revenue generation.

More Powerful POS

There were no shortage of powerful POS systems at the 2022 NRA Show. If anything, there are almost too many options out there for operators to consider.

However, we don’t think this is a bad problem to have. In fact, tech stack selection is one of KRG Hospitality’s key services.

Now, I’m not saying operators need to chase the newest, shiniest POS on the market. If what an operator has is working smoothly and they’re getting the most of their POS every day, there’s no reason to invest in a completely new platform.

But along with POS developments come powerful integrations. Case in point, Lunchbox. In simple terms, Lunchbox is an online ordering, marketing, loyalty, and guest subscription platform.

Lunchbox 2022 NRA Show booth display

Recently revamped, this fun brand (one of the coolest booths at the show, if not the coolest) boasts an average increase in same-store sales of 52 percent. Additionally, Lunchbox customers (per the company) experience an average of 42 percent month-over-month revenue growth.

As impressive is the fact that this platform integrates with several top POS systems, including Toast, Oracle’s Micros, NCR’s Aloha, and Revel.

What a time, eh?

Photos taken by and property of author

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