Family dining | KRG Hospitality

Canada and the United States of America on a globe

November 6, 2023by David Klemt David Klemt No Comments

2023 DoorDash Ordering Trends

2023 DoorDash Ordering Trends: Canada & US

by David Klemt

After checking out this year’s annual Cravings Report we’re turning our attention to the 2023 DoorDash restaurant ordering trends reports.

Luckily, there are two reports available from DoorDash: one that focuses on Canada, and one for the US.

These two countries are, of course, KRG Hospitality’s primary markets. So, the data in these DoorDash reports is relevant and compelling for our current and future clients.

Perhaps unsurprisingly, Canadian and American DoorDash users are somewhat similar by a few metrics. However, where there are differences they’re fairly glaring.

For example, 78 percent of Canadian DoorDash survey respondents picked up a takeout order from a restaurant in the month prior to being surveyed. That number is 76 percent for American survey respondents.

Regarding in-person restaurant dining, 62 percent of respondents had done so the month prior. Among American survey respondents that number is 61 percent.

But when it comes to placing an order for delivery we see a notable difference. For Canada, 58 percent of survey respondents had ordered delivery. That number jumps to 77 percent among Americans.

This tells me a few (fairly obvious) things. Generally speaking, it appears consumers in Canada and America—according to DoorDash—prefer delivery and takeout to in-person dining. Going further, it seems that overall, Canadians prefer pickup or takeout to delivery. However, Americans seem to place delivery and pickup orders at nearly identical rates.

If it’s true that consumers favor delivery or takeout to in-person dining currently, there could be a couple of simple reasons. First, convenience.

Second, fees. It’s possible that today’s consumer perceives delivery fees are lower than in-person dining fees, unfortunately. If that’s the case, third-party delivery services can exploit this perception.

More Similar than Different

In comparing both DoorDash reports, I find that Canadian and American consumers who use DoorDash are rather similar.

Survey respondents in both countries indicate that Friday is the most popular day of the week to order food. Further, 6:00 PM is the most common local time to place orders in both countries.

And when it comes to the fastest-growing dayparts for order placement? In both Canada and the US it’s late-night and breakfast. Although, I most note that both dayparts are growing faster in Canada.

Nearly half of American respondents and a little over half of Canadian respondents indicate they want to try new restaurants and dishes.

Definitely not surprisingly, consumers in both countries primarily focus on menu selection and pricing when seeking a new restaurant to try. In fact, these numbers are identical for Canadians and Americans, at 55 percent and 51 percent, respectively.

Top Canadian Food Orders

When we look at the top items ordered via DoorDash, we don’t find anything out of the ordinary.

Burgers
Fries
Pizza
Salad
Sandwiches

Looks like standard fare and comfort foods to me. This tells me that operators who have these items on their menus need to ensure they’re of the highest quality to stand out from other restaurants and bars.

Top American Food Orders

Interestingly but not too surprisingly, the list below is quite similar to the list above.

French fries
Burgers
Tacos
Salad
Pizza

With the exception of tacos and sandwiches, the list is nearly identical.

Hey, who wants to debate whether tacos and sandwiches are in the same food family?

I encourage you to review both reports in their entirety for yourself. For the Canadian Edition of DoorDash’s report, click here. And click here for the US edition.

Image: Lara Jameson on Pexels

October 27, 2023by David Klemt David Klemt No Comments

Do You Need a Restaurant Chatbot?

Do You Need a Restaurant Chatbot?

by David Klemt

The labor shortage, increasing demand for convenience, and artificial intelligence are converging to make a strong case for restaurant chatbots.

Specifically, bots that can take orders accurately. As consumers increasingly live their lives on demand, any perception of even minor inconvenience can turn someone against a brand or venue.

In addition to convenience, today’s consumer, generally speaking, also expects to find more technology when engaging with a business. Likewise, workers expect employers to implement more tech, whether it’s welcome or not.

When it comes to our industry, that means everything from streamlined POS systems and powerful CRM platforms to predictive ordering software and cobots.

Looking at generative AI and guest-facing tech, it won’t be long before guests expect to place their orders via chatbot.

In fact, some consumers are placing orders with restaurant bots now. There are already text- and voice-based restaurant bots out in the world. So far, it appears that many QSRs are implementing generative AI bots to handle orders.

As some of the companies developing restaurant bots point out, they never tire. The bots never feel overwhelmed. They can field a limitless amount of calls, working around the clock without breaks, every day of the year. Obviously, restaurant bots don’t get sick, ask for time off, or no-call, no-show.

So, for high-volume restaurants, particularly those with drive-thrus, restaurant bots are probably incredibly attractive. Clearly, labor is still an issue. And these restaurant bots promise to take the ordering process out of workers’ hands, allowing them to focus on “more important” tasks.

Now, couple that with guests seeming less patient, less forgiving, and more obsessive about convenience. On-demand solutions certainly appear great on paper.

Text Bots

We know that guests are already interacting with restaurant bots. When they visit a restaurant’s website or download its app if they have one, they’re encountering bots.

Some provide information, some can make reservations, and an increasing number can take orders. There are bots that imitate a text exchange, and those that streamline the ordering process by using canned replies.

One of the better known of these is Dom, Domino’s chatbot. Whether via app or website, Dom walks people through the ordering process easily and, in my experience playing with this tool, quite simply.

Further, Dom can “remember” previous orders (when a customer is logged into their account) and reorder them. The bot can make recommendations, and it will search for and apply coupons or promotions.

These functions are, of course, the pros of restaurant bots. As their ability to handle more complex tasks increases, the promise is that they’ll do more than offer convenience or solve some labor issues.

Rather, they’ll also generate more revenue by making personalized recommendations, upselling customers, and reaching out to customers to prompt them to place an order.

Voice Bots

As operators whose phone lines light up from open to close can attest, there are people who prefer to talk to someone to place an order.

Well, there are now restaurant bots that can field those calls.

One provider of this tech is ConverseNow. The company uses voice AI, which they explain is also known as conversational AI on their website. Their tech handles phone and drive-thru orders, and the experience is close to, if not exactly like, speaking with their human counterparts.

According to ConverseNow, operators no longer have to worry about unanswered calls. Customers won’t call in only to hear a busy signal. Drive-thru times are reduced. Workers can focus solely on service, prep, and fulfilling orders.

Additionally, the company is focusing on accuracy. There’s an agent-assisted solution, for example. If a complex order comes in, an agent can take over before things go sideways. Agents can also help ConverseNow’s AI to learn from new situations, ensuring the customer experience is painless and even more accuracy.

The tech is so good that Domino’s uses it along with Dom. Per the ConverseNow website, the tech integrates with leading POS systems like Toast; is live in more than 1,200 restaurants in over 40 states; and has taken 8.5 million orders and freed up one million labor hours for their clients.

Along with ConverseNow, operators can look into HungerRush, Yellow.ai, and other solutions.

Takeaway

Restaurant bots certainly make sense for high-volume, limited-service, and QSR operators. They can reduce labor costs and capture more (if not every) order with ease.

However, we need to consider the impact of reducing or eliminating human interactions in hospitality. Whether in the front or back of house, we appear to be heading toward an industry putting less emphasis on the human element.

Yes, team members still interact with guests to take in-person orders and for in-person dining. That is, for now.

In the QSR space in particular, ordering kiosks are becoming more common. At some point, AI-powered kiosks, along with other AI tools, will replace the need to interact with humans in fast-casual and casual-dining restaurants.

It seems at odds with the spirit of hospitality for guests to not have to interact with a team member until their food needs to be dropped. And with cobots, that’s also a task an operator can automate.

I’m all for progress and innovation. And I’m all for delivering on the guest expectation of convenience. However, it’s a balancing act. An operator opting to automate tasks so team members can better engage with guests needs to ensure that’s actually happening.

I don’t think we need less human interaction. And I, for one, have a growing concern that some operators are journeying further down the path of barely seeing the people they employ as people. Rather, too many are increasingly seeing team members as liabilities and nothing more.

I point that out to say this: When considering implementing any new tech, consider the impact on more than just P&Ls. This is a people business, and dedicating yourself to slashing costs and boosting revenue ruthlessly runs the risk of making a restaurant less hospitable for guests and staff.

Image: Cash Macanaya on Unsplash

"Just be nice" sign on wall with graffiti

October 25, 2023by David Klemt David Klemt No Comments

New Review Platform Rejects Negativity

It’s Good: New Review Platform Rejects Negativity

by David Klemt

Combine equal parts incredible team of founders, love for food and travel, and respect for an expression that we should all adhere to more closely, and you get a new review platform.

The expression from which this team derives their platform’s ethos?

“If you don’t have something good to say, don’t say it at all.” But how can a review platform embody that age-old expression?

Well, it turns out that answer is rather simple: by refusing to allow negative reviews. That’s the foundation of how It’s Good plans to operate.

That is, of course, quite the departure from Yelp, Google Reviews, Tripadvisor, and other review platforms. In my experience, Yelp draws the ire of most operators. Obviously, it doesn’t help Yelp’s reputation among operators that people can review bomb a venue rather easily, among other issues.

On It’s Good, there’s no “star” ratings system. Negative comments? The platform is “not even built for” those, according to co-founder John Legend.

“Either you recommend [a place or experience] or you don’t,” says Legend, elaborating further on It’s Good.

The team of founders also includes Kevin Auerbach (who comes from Apple), Meghan Raab (from Snap), and director and photographer Mike Rosenthal.

With Auerbach and Raab guiding what is likely a top-notch engineering team, It’s Good should be simple and fun to use.

The User Experience

At the moment, It’s Good is an invite-only platform. According to articles online, Legend and Rosenthal have been working on the app for four years.

So, the initial idea is to lay the user foundation ahead of its public launch. Logical, since it would be challenging to sift through recommendations without a core user group populating the app first.

“Our mission is to be your go-to place for saving & sharing your most favorite places to eat and drink. Trustworthy recommendations for you, by you – from the people you know or admire, all in one beautiful space,” reads the waitlist confirmation email I received from Shirene Niksadat, It’s Good head of community.

Interestingly, one of the motivating factors behind this platform is Legend himself. Apparently, he’s a go-to source for recommendations amongst his friends.

“My friends always reach out to me for ‘my list’ of restaurants in the cities I’ve visited,” Legend is quoted as saying on the It’s Good website.

From what I can gather, the platform will allow people to find new restaurants, bars, and experiences via location-based and themed lists. I’m sure there’s more functionality, but the main takeaways are:

organized recommendations;
personalized recommendations from trusted sources and friends; and
recommendations that answer a simple question: Is this place or experience good?

“We believe a restaurant rec from 1 trusted friend is more valuable than recs from 10,000 strangers,” says the It’s Good site, right at the top.

That should give us all an idea of how this platform will operate, and what to expect when it goes live for the general public.

Obviously, I can’t provide a review of this review platform. But I can say that I’m looking forward to my opportunity to take it for a spin.

To get your name on the waitlist, click here.

Image: A A on Unsplash

Collection of various vintage knives surrounding a cutting board

October 20, 2023by David Klemt David Klemt No Comments

Mastering the Art of Knife Skills

Mastering the Art of Knife Skills: A Culinary Journey

by Nathen Dubé

In the realm of culinary arts, the knife is not merely a kitchen tool; it’s the extension of a chef’s hands, the paintbrush for a culinary masterpiece.

In the hand of a skilled chef, a knife is the instrument that transforms raw ingredients into delectable works of art.

Therefore, knife skills are the backbone of every great chef’s repertoire, and they form the cornerstone of culinary excellence.

In this exploration, we embark on a journey to unravel the significance of knife skills, the techniques that define them, and the artistry they enable in the culinary world.

The Role of Knives in Culinary Excellence

Knives are the most fundamental tools in any kitchen. They are the bridge between raw ingredients and the final dish, and their importance cannot be overstated.

Here are some key aspects of the role knives play in culinary excellence.

Precision and Consistency

Imagine a chef creating uniform, paper-thin slices of cucumber for an elegant salad. The precision required for such delicate work comes from mastering knife skills.

Consistency in slicing, dicing, and chopping ensures even cooking and a visually appealing presentation.

Efficiency

In a bustling restaurant kitchen, time is of the essence. Efficient knife skills enable chefs to prepare ingredients quickly and streamline the cooking process.

The ability to swiftly and skillfully handle a knife can make all the difference in meeting the demands of a busy service.

Safety

Knife safety is paramount in the culinary world.

Proper knife skills not only enhance efficiency but also minimize the risk of accidents. A chef with well-honed knife skills knows how to handle the blade safely, reducing the likelihood of cuts and injuries.

Artistry

Beyond their utilitarian functions, knives are tools of artistic expression in the culinary world.

A chef’s ability to craft intricate cuts and designs with a knife can elevate a dish from ordinary to extraordinary.

From garnishes to decorative vegetable carvings, knife skills allow chefs to showcase their creativity.

Essential Knife Techniques

Knife skills encompass a range of techniques, each serving a specific purpose in the kitchen.

Let’s delve into some of the fundamental knife skills that every chef should master.

1. The Pinch Grip

The pinch grip is the foundation of proper knife handling. It involves gripping the knife handle with three fingers while using the thumb and index finger to pinch the blade near the bolster.

This grip provides control and precision, allowing for accurate cuts.

2. The Rock Chop

The rock chop is a rhythmic cutting motion during which the knife’s blade rocks back and forth on the cutting board. It’s ideal for chopping herbs, garlic, and onions.

Mastering this technique involves maintaining a consistent rocking motion to achieve uniform cuts.

3. The Slice

Slicing is a technique used to create thin, even pieces of ingredients.

The key is to maintain a smooth, forward and backward motion of the knife while keeping the fingers tucked safely away from the blade.

4. The Julienne

Julienne is the art of cutting vegetables or fruits into long, thin strips, resembling matchsticks.

Achieving uniformity in julienne cuts requires precision and practice. This is a technique often used in salads and stir-fries.

5. The Dice

Dicing involves cutting ingredients into small, uniform cubes.

Chefs use this technique for creating perfectly diced onions, tomatoes, and other vegetables. It’s a fundamental skill in many classic recipes.

6. The Chiffonade

Chiffonade is a technique for slicing leafy greens or herbs into thin, ribbon-like strips. This technique is commonly used for garnishing soups, salads, and pasta dishes.

7. The Tourne

The tourne, also known as “turned” vegetables, involves creating seven-sided, oblong shapes from root vegetables like potatoes and carrots.

This technique showcases precision and artistry.

8. The Batonnet

Batonnet cuts involve creating evenly sized, rectangular sticks from ingredients like potatoes and cucumbers.

This technique is often used for making French fries and crudités.

The Journey to Mastery

Becoming proficient in knife skills is a journey that requires dedication, practice, and a commitment to precision.

Below are a number of essential tips for aspiring chefs on their path to mastering this art.

1. Start with the Basics

Begin by mastering the fundamental techniques, such as the pinch grip, slice, and rock chop.

These skills form the building blocks for more advanced cuts.

2. Invest in Quality Knives

A chef is only as good as their tools.

Invest in high-quality knives that are well-balanced and comfortable to handle. Regularly sharpen and maintain them to ensure optimal performance.

3. Practice, Practice, Practice

Knife skills improve with practice.

Set aside time to hone your cutting techniques regularly. Consider using inexpensive ingredients like potatoes and carrots for practice to minimize food wastage.

4. Seek Guidance

Don’t hesitate to seek guidance from experienced chefs or culinary instructors.

Taking a knife skills class or watching instructional videos can provide valuable insights and feedback.

5. Prioritize Safety

Safety should always come first.

Pay close attention to hand placement, keep your fingers tucked away from the blade, and use a cutting board with a non-slip surface.

6. Embrace Creativity

Once you have mastered the basics, allow your creativity to flourish.

Experiment with decorative cuts and intricate garnishes to add flair to your dishes.

Knife Skills in the Professional Kitchen

In professional kitchens, the importance of knife skills is not up for debate. Chefs in high-end restaurants are expected to demonstrate exceptional precision and speed when handling knives.

Here’s how knife skills come into play in the professional culinary world.

Speed and Efficiency

In a busy restaurant kitchen, the ability to prep ingredients quickly and efficiently is essential.

Knife skills enable chefs to meet the demands of a fast-paced environment while maintaining quality.

Consistency

Consistency is crucial in ensuring that every dish leaving the kitchen meets the restaurant’s standards.

Uniform cuts, achieved through precise knife skills, contribute to consistent cooking times and presentation.

Artistry and Presentation

Fine-dining establishments often emphasize presentation as much as taste.

Knife skills allow chefs to create intricate designs and garnishes that enhance the visual appeal of each dish, turning it into a work of art.

Safety in High-stress Environments

Professional kitchens can be high-stress environments.

Chefs with excellent knife skills can handle the pressure more effectively and safely, reducing the risk of accidents.

Knife Skills for Home Cooks

While professional chefs rely on knife skills in their daily work, these skills are equally valuable for home cooks.

Whether you’re preparing a simple family meal or hosting a dinner party, below you’ll find how knife skills can elevate your home cooking.

Save Time and Effort

Efficient knife skills allow you to prep ingredients more quickly, making meal preparation a breeze even on busy weeknights.

Elevate Home Cooking

Mastering knife skills enables you to create restaurant-quality dishes at home.

You can impress your family and guests with beautifully plated meals.

Safety and Confidence

Proper knife skills at home reduce the risk of accidents and boost your confidence in the kitchen.

Experimentation and Creativity

With the right knife skills, you can experiment with different cuts and techniques, adding variety and creativity to your home-cooked meals.

Conclusion

In the world of culinary arts, knives are not just tools; they are extensions of a chef’s creativity and skill.

Knife skills are the foundation of culinary excellence, enabling chefs to transform ingredients into works of art.

Whether you aspire to be a professional chef or simply want to elevate your home cooking, mastering knife skills is a journey worth embarking on. It’s a journey of precision, creativity, and the pursuit of culinary perfection—a path that leads to the heart of the culinary world, where the artistry of knives comes to life.

As you embark on your own culinary journey, remember that every slice, chop, and dice brings you one step closer to mastering the art of knife skills—an art form that transcends the kitchen and allows you to create culinary magic with every cut.

So, sharpen your knives, practice your techniques, and let your culinary creativity flourish. The world of flavors and possibilities awaits at the tip of your blade.

Image: Sergey Kotenev on Unsplash

The Federal Trade Commission Building in Washington, DC

October 18, 2023by David Klemt David Klemt No Comments

Restaurant Fees Facing FTC Scrutiny

Restaurant Fees Facing FTC Scrutiny

by David Klemt

The focus on rising costs and hidden or “junk” fees over the past few years is bringing the Federal Trade Commission’s attention to the restaurant space.

Really, it was only a matter of time. Consumers are quite clearly fed up with being hit with unexpected fees. Whether purchasing concert tickets or popping into a QSR for a quick bite, they’re over the perceived nickel and diming.

That’s to say nothing of the other businesses that consumers feel are going too far with fees.

However, much of the public conversation about junk fees revolves around restaurants, and in some instances bars, as well. A common refrain on social media and online communities is, to paraphrase, “Just tell tell us what it costs on the menu!”

Of course, there are consumers who don’t want businesses to raise their prices at all. There’s no reasoning with these people, and they see all increases and fees—even those that aren’t hidden or bogus—as ripoffs.

But there are those who understand the challenges operators are facing. Understandably, these people just want transparency. And they want to have a clear idea of what it will cost to dine and drink somewhere before they plan their visit or are handed their check.

These consumers now have allies in state and federal governments.

FTC Focuses In

Some people may be surprised to learn that the FTC’s focus on junk fees isn’t entirely new. In fact, the agency has been digging into this topic for nearly a year.

Last November, the FTC asked for the public for their opinions on deceptive and unfair practices. Specifically, practices that relate to junk fees. Per the FTC, American consumers are paying tens of billions of dollars in junk fees annually.

According to the agency, they received 12,000 comments.

Now, with the support of the White House, one would assume, the FTC is asking for public input again. This time, the agency is seeking comments about a rule their proposing to address junk fees.

Last week, both the White House and FTC proposed rules that will make it mandatory for businesses to disclose all fees up front. Additionally, the White House wants to curtail “excessive” bank fees for basic services.

Put simply, the FTC’s proposal will ban hidden fees, require transparency regarding all fees, and allow the agency to impose penalties.

And now, after zeroing in on airlines, landlords, utilities, entertainment, and banking, the FTC is looking at hospitality.

Restaurants Under Scrutiny

As they did in November of last year, the FTC is once again asking for the public to comment on fees. This time, however, restaurants have been included by the agency.

To be sure, this focus isn’t exactly new. Washington, DC, for example has addressed junk fees in the restaurant space. As with other jurisdictions that have tackled this topic, restaurants must be conspicuous and make guests aware of all fees before their checks arrive. Additionally, operators must be clear about their intended use for fees.

In Washington, DC, a violation of these rules can lead to a $5,000 fine for a first-time offense. That penalty can rise to $10,000 for additional violations.

California has also passed Senate Bill 478, signed into law by Governor Gavin Newsom. This law, which also targets hidden fees, takes effect on July 1, 2024.

Most likely, the FTC is seeking comment to make adjustments to their proposed junk fee rule in order to include restaurants. From what I’ve seen, restaurant delivery fees in particular are drawing the ire of consumers and attention of state and federal agencies.

“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape. These junk fees now cost Americans tens of billions of dollars per year—money that corporations are extracting from working families just because they can,” says Lina M. Khan, FTC Chair.

Consumers will have 60 days to submit their comments to the FTC.

Takeaway

Proactive operators who haven’t already done so should make their in-person dining and delivery fees obvious.

Best practices for fee transparency include highlighting them on menus; announcing them via table tents or talkers; including fees on websites; and including a notice or disclaimer on reservation pages.

However, operators should avoid viewing being transparent about fees through a lens of compliance. Rather, being clear and upfront with guests is just good business. In fact, it’s in keeping with the spirit of hospitality and service.

If the final experience a guest has with a restaurant is being unpleasantly surprised by their check due to junk fees, how should be expected to respond? Their perception of the venue or brand will plummet, and they won’t return. How long can a restaurant sustain that guest reaction before the damage is irreparable and an operator has to close their doors?

Operators are being asked to thread a needle every day. Costs are rising and there are only so many solutions available to most operators that can keep their doors open, keep guests and staff happy, and pull the business toward long-term success.

To be clear, fees are generally fine—if consumers feel they know what to expect ahead of their visit. Nobody wants to be surprised, and that shouldn’t be difficult to understand.

So, operators need to be transparent about fees. They need to consider dynamic pricing for menus. That requires an absolute understanding of costs, guest tolerances for pricing, and the market.

The payoff, however, is happier guests who are far more likely to return for in-person dining and to place delivery or takeout orders. Savvy operators will put the work in now to get ahead of the junk fee fallout.

Image: Ian Hutchinson on Unsplash

Closeup shot of the flag of the City of Chicago with Wrigley Building in background

October 16, 2023by David Klemt David Klemt No Comments

Chicago to Phase Out the Tip Credit

Chicago to Phase Out the Tip Credit

by David Klemt

In a move that some are celebrating and others claim will kill jobs, Chicago will phase out the tip credit incrementally by the year 2028.

Currently, pay for tipped workers amounts to 60 percent of the minimum wage. Starting next year, that will change.

Beginning July 1, 2024, tipped workers will earn eight-percent increases on an annual basis. This will continue until July 1, 2028. On that date, tipped workers must receive the full minimum wage.

Put another way, the city of Chicago will eliminate the tip credit entirely midway through 2028. To add clarification, this phasing out of the tax credit applies to all 77 of the city’s neighborhoods.

Overwhelmingly, Chicago’s City Council voted for the so-called “One Fair Wage Ordinance.” Thirty-six alderpeople voted “yea,” while just ten voted “nay.”

As one would expect, not everyone is happy that the ordinance was passed on Friday, October 6. Nor are they pleased that Mayor Brandon Johnson signed off on the bill a week ago today.

Specifically, Alderman Nicholas Sposato referred to the One Fair Wage Ordinance as a “job and business killer.”

Further, as reported by Restaurant Dive last week, the Illinois Restaurant Association opposes the decision to eliminate the tip credit in Chicago.

“We wholeheartedly disagree with the decision to move forward with the elimination of the tip credit,” Restaurant Dive reports a representative of the IRA saying in a statement emailed to the publication.

The National Restaurant Association also opposes the ordinance, reportedly vowing to fight any such legislation that introduced throughout the country.

However, One Fair Wage and the Service Employees International Union are celebrating the plan to phase out the tip credit. However, the SEIU would like the elimination to apply statewide.

A Compromise

Attempting to negotiate for legislation they found more palatable, the IRA had proposed a different approach.

Their version would have seen tipped workers make a minimum of $20.54 per hour. However, that ordinance would only have applied to restaurants that generate $3 million or more in annual revenue. Additionally, the IRA proposed tripling fines related to violations of the proposed ordinance.

Had that proposal been accepted, the pay situation would have been unchanged for tipped workers in smaller operations.

In the end, the IRA agreed to eliminating the tip credit over the course of five years to make the transition smoother for operators. This is due, in part, to the possibility of a two-year phasing out of the tip credit being passed by Chicago’s City Council.

The IRA, NRA, and others who oppose eliminating tip credits point to hardships on the operator side. Increased labor costs will lead to increases in menu prices, reductions in traffic and hours, the elimination of jobs, and, ultimately, the shuttering of many businesses.

However, those who support such ordinance point to the financial stability of vulnerable people, and those who work throughout the industry to earn a living wage.

The Future

While Chicago is the largest city in America to vote to eliminate the tip credit, it’s not the first pass such legislation.

The city joins Alaska, California, Minnesota, Montana, Nevada, and Oregon in doing so. Additionally, Washington, DC, will eliminate the tip credit fully by July 1, 2027. Phase one of DC’s tip credit elimination started May 1 of this year.

Of course, the news out of Chicago also comes on the heels of the FAST Act fight ending in California.

These developments beg the question: Which city or state will introduce legislation next, and how will it play out for workers and operators?

Image: Trace Hudson via Pexels

October 11, 2023by David Klemt David Klemt No Comments

Brand Love: BrandVue’s 2023 Rankings

Brand Love: BrandVue’s 2023 Rankings

by David Klemt

As we near the end of the year, Savanta has revealed their BrandVue’s Most Loved Eating Out Brands 2023 report, ranking 100 restaurant brands in America.

The B2B and B2C market consultancy has been publishing this report since 2019. Their fifth-annual report includes 16 categories, including ranking consumer opinion of third-party delivery services.

As a category, Burger boasts the greatest presence with 17 loved restaurant brands. In second is Italian or Pizza with 13 brands. With ten brands, Specialty comes in third as a category. Tied for fourth are Mexican and Chicken, featuring eight brands each.

Download the full report here.

Top Restaurant in Each Category

Below you’ll find the gold medalist in each category, in alphabetical order by restaurant type.

Asian: Panda Express
Burger: McDonald’s
Café or Bakery: Starbucks
Chicken: Chick-fil-A
Family Style: Cracker Barrel Old Country Store
Frozen Dessert: Cold Stone Creamery
Italian or Pizza: Olive Garden
Mexican: Taco Bell
Sandwich: Subway
Seafood: Red Lobster
Specialty: Krispy Kreme
Steak: Texas Roadhouse
Varied Menu: The Cheesecake Factory

Other Categories

There are a handful of other categories on the BrandVue list. Namely, Delivery, Sports Bar, and Meal-kit.

I’ve separated Delivery in particular because it doesn’t represent brick-and-mortar brands. Rather, these are third-party services.

For this year’s list, Savanta ranks five delivery services. Below, the top three:

Caviar
DoorDash
UberEats

However, it’s important to note that DoorDash bought their one-time rival Caviar back in 2019. So, it’s really as though DoorDash claims two spots among the top three.

Of course, UberEats owns Postmates, which is among the five Delivery brands on this list. So is Seamless, owned by Grubhub. However, Grubhub itself doesn’t appear on this list.

The other two categories, Sports Bar and Meal-kit, count just one brand each among them: Buffalo Wild Wings and Plated, respectively.

Top 26 Restaurant Brands

Below, the top quarter of the 2023 BrandVue list. As you’ll see, the gold medalists among the top 25 are in bold.

Why did I decide to show the top 26 rather than the top 25? My reasoning is simple: one of the top 25 is a delivery service, not a brick-and-mortar restaurant.

Domino’s (Italian or Pizza)
Red Lobster (Seafood)
Cold Stone Creamery (Frozen Dessert)
Culver’s (Burger)
Caviar (Delivery)
Cinnabon (Specialty)
Braum’s (Burger)
Auntie Anne’s (Specialty)
Wingstop (Chicken)
Popeyes (Chicken)
Wendy’s (Burger)
Pizza Ranch (Italian or Pizza)
Pizza Hut (Italian or Pizza)
KFC (Chicken)
The Cheesecake Factory (Varied Menu)
Subway (Sandwich)
In-N-Out Burger (Burger)
Dunkin’ Donuts (Café or Bakery)
Taco Bell (Mexican)
Raising Cane’s (Chicken)
Olive Garden (Italian or Pizza)
Krispy Kreme (Specialty)
Texas Roadhouse (Steak)
McDonald’s (Burger)
Starbucks (Café or Bakery)
Chick-fil-A (Chicken)

Unsurprisingly, the top six spots go to gold medalists. In total, gold medalists claim seven slots amongst the top ten. Twelve of the top performers out of all 16 categories are in the top 25.

Interestingly, the list also puts America’s love for burgers, chicken, and pizza on full display. Of the top 25 most-beloved restaurant brands, five fall into the Burger category, and five fall into Chicken. Four slots belong to the Italian or Pizza category.

Notably, there are no Asian or Family Style restaurants among the top 26. However, I expect more Asian and Mexican restaurants to earn places in the top quarter over the next few years.

To see the full list of the 100 most-beloved restaurant (and delivery) brands in the US, click here.

Image: Joshua Golde on Unsplash

October 10, 2023by David Klemt David Klemt No Comments

Taco Bell Racking Up Rewards Program Wins

Taco Bell Racking Up Rewards Program Wins

by David Klemt

Taco Bell, masters of the limited-time offer and loyalty program, continue to rack up wins with the return of a fan-favorite promotion, and more.

The fast-food giant operates more than 7,800 restaurants in the US alone. However, the company understands that sheer numbers aren’t enough to turn a profit.

Rather, Taco Bell continually proves they understand the power of promotions, loyalty, and LTOs.

The QSR routinely releases specialty items, then packs them away to generate buzz and traffic by making them available once again—for a limited time. Compellingly, Taco Bell also ties their LTOs to their loyalty program. Often times, the only way for guests to enjoy special perks and items is to be a Taco Bell Rewards member.

Not only does this help to engage existing members, this approach drives new program signups.

Case in point: the Taco Lover’s Pass.

National Taco Day Promotion

If you’re industry or a fan of Taco Bell, you should be aware of the Taco Lover’s Pass by now.

Tracing its genesis to 2021 in Arizona, the LTO pops up every now and then. In exchange for $10, those who grab a pass can get one free taco each day for 30 consecutive days.

Oh, and the pass is now only available via the Taco Bell app, and to members of the Taco Bell Rewards program. Again, this is an excellent way to boost engagement. Do guests want to take advantage of this LTO? Great—they’ll need to exchange their info and provide access to themselves to do so.

Normally, the Taco Lover’s Pass is available for purchase for just one day. However, this time around Taco Bell gave rewards members two days to snag one. This is likely due to a new menu item drop coming tomorrow.

For quite some time now, Taco Bell has been hinting that they’ll be making breakfast easier and better. And now we know how they plan to accomplish that goal.

Joining the Seasoned Beef Crunchy Taco, Seasoned Beef Crunchy Taco Supreme, Seasoned Beef Soft Taco, Seasoned Beef Soft Taco Supreme, Spicy Potato Soft Taco, Seasoned Beef Doritos® Locos Tacos, and Seasoned Beef Doritos® Locos Tacos Supreme on the Taco Lover’s Pass is the new Toasted Breakfast Taco.

Today, October 12 (a Taco Tuesday!), Taco Bell drops the Toasted Breakfast Taco, and holders of their coveted pass can grab one for free.

Clearly, Tuesdays are important to Taco Bell. Let’s not forget that they very publicly challenged the “Taco Tuesday” trademark, and very publicly celebrated its cancellation. So, launching an all-new item that will drive traffic to Taco Bell during the breakfast daypart makes perfect sense. The drop also further solidifies their branding and marketing.

Steal a Base…

…Steal a Taco. Not only is the Taco Lover’s Pass back, so is Taco Bell’s Major League Baseball promotion.

And, once again, it’s available only via the Taco Bell app, and only to Taco Bell Rewards members.

Focusing on the Fall Classic, “Steal a Base, Steal a Taco” is a collaboration between Taco Bell, the MLB, and Topps.

Starting October 27 (not a Tuesday), the first player to steal a base will earn the title Taco Hero. That player will also earn free Nacho Cheese Doritos® Locos Tacos for Taco Bell Rewards members.

Taking things further, however, is Topps. The iconic trading card brand has put a limited run of Topps TacoFractor cards into circulation. People who hold the card of the first player to steal a base during the 2023 World Series could win Taco Bell for life. For this promotion, that comes in the form of a digital $15,000 Taco Bell gift card.

Alternatively, the holders of Topps TacoFractor Wild Cards could win the big prize.

On October 10 (a Tuesday!), Taco Bell Rewards members will have the chance to score free Topps Chrome or Cosmic Chrome packs. This limited Tuesday Drop could lead to a Taco Hero card, which in turn can lead to winning Taco Bell for life.

Takeaway

Unquestionably, Taco Bell understands the power of marketing messaging, branding, promotions, and the LTO.

However, they also understand the need for loyalty and rewards programs to do more than just offer discounts and free menu items. A great loyalty program needs to be big, bold, and encourage constant engagement.

With that in mind, it’s more than likely time for most operators, regardless of size, to review and rethink their programs.

Image: Chad Stembridge on Unsplash

October 9, 2023by David Klemt David Klemt No Comments

Leisure and Hospitality Adds 96,000 Jobs

Leisure and Hospitality Adds 96,000 Jobs

by David Klemt

Update: The figure of 61,000 restaurant and bar jobs was adjusted to 48,300 after revisions.

The latest report from the US Bureau of Labor Statistics reveals that the outlook looks promising for hospitality.

Put together, leisure and hospitality added 96,000 jobs in September. However, hospitality certainly leads the way according to the most recent report.

In particular, the news is wonderful for the restaurant and bar sector. Adding 61,000 jobs in September, “food services and drinking places” are back to February 2020 levels.

Put more simply, restaurants and bars are back to pre-pandemic employment numbers. It has taken more than three years, but we can finally breathe a collective (but cautious) sign of relief.

In fact, one in five jobs created in September was in a restaurant or bar. That’s incredible growth and welcome news.

But reaching this point hasn’t been easy. Operators, along with restaurant and bar workers, have clawed their way through the past several years.

The industry has changed, and operators need to avoid the temptation of regressing. Yes, employment levels are back to where they were before the pandemic. Worker and guest expectations will not return to where they were before February 2020. The changes are here to stay.

Lodging/Accommodation

Unfortunately, not every sector of hospitality is back to pre-pandemic employment levels.

First, the positive news. Lodging (or accommodation, if you prefer) did add jobs in September. Whereas restaurants and bars rose 61,000 jobs, lodging is up 16,000.

That’s good growth and reason to be optimistic regarding that sector. That’s where the good news ends when it comes to hard employment numbers.

On the negative side, lodging hasn’t yet returned to pre-pandemic employment levels. In fact, the sector is remains down by 217,000 jobs when compared to February 2020.

Should lodging/accommodation continue to add jobs at this pace, we could see a full recovery in Q4 2024.

However, the past few years have been an eyeopener for many lodging and accommodation operators. Many hotels, for example, have reduced the sizes of their teams.

It’s possible that as long as guest feedback remains positive, hotels and resorts will continue to operate with smaller teams. Indeed, technological innovations have made it simpler for mid- and large-scale properties to pare back labor.

Takeaway

While returning to pre-pandemic employment levels in restaurants and bars is great news, we must still be cautious.

This is a delicate situation, and one month of growth isn’t enough to shout, “We’re back!” There’s reason to be optimistic, to be sure, but adding jobs is just one part of an equation that features many variables.

For example, the unemployment level in the US remains unchanged at 3.8 percent.

So, be optimistic. Allow yourself to feel some hope. But be cautious. Continue to work toward empowering your teams, increasing traffic and revenue, mastering the guest experience, and achieving short- and long-term goals.

Image: George Pagan III on Unsplash

Closeup view of buttons on vintage, antique cash register

September 28, 2023by David Klemt David Klemt No Comments

SevenRooms Reveals Revenue Management Tool

SevenRooms Reveals Revenue Management Tool

by David Klemt

Just when you think SevenRooms is done launching new solutions for the year they announce a new tool that will excite operators.

That new tool is Revenue Management. Much more than “just another” plugin, SevenRooms Revenue Management is an engine.

This new engine is feature-rich and automates a number important tasks. In fact, one feature in particular has our attention: the “do-it-for-me” function.

What does that feature give operators the power to accomplish while saving time and labor costs? Below are just a handful of benefits:

party size recommendations
dining duration configurations
decrease last-minute cancellations via cancellation policy implementation
floor plan configuration recommendations

Should this automation feature prove easy to understand and use, we can see that this latest tool may become the most popular among SevenRooms users.

To learn more about Revenue Management, scroll down to the latest SevenRooms press release.

Growth Recap

Let’s take a look at just some of the growth SevenRooms has achieved over the course of just the past few years.

March 2021: SevenRooms appoints Pamela Martinez as the company’s chief financial officer.
September 2021: SevenRooms announces a multi-year partnership with TheFork. The partnership is big news for operators throughout Europe and Australia. Further, the partnership illustrates how the company is pursuing global growth.
October of 2021: The company forms a partnership with Olo. This ensures clients who also use Olo are able to capture data from a key group: off-premise customers. That data creates profiles for such customers automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.
December 2021: SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—make their partnership public. Interestingly, this partnership also includes ThinkFoodGroup joining SevenRooms in an advisory role.
January 2022: The platform announces the hiring of a chief revenue officer, Brent-Stig Kraus.
December 2022: SevenRooms enters into a partnership with Competitive Social Ventures.
January 2023: The company announces the appointment of their first-ever chief marketing officer.
March 2023: SevenRooms announces that Danny Meyer and EHI are investors in the platform. Following that announcement, SevenRooms launches Email Marketing Integration less than two weeks later.
May 2023: The company drops their Pre-Shift tool. Two weeks after that launch, SevenRooms announces a new global partnership with Marriott.

Most platforms launch a new solution or announce new partnerships once or twice per year. Not SevenRooms. And it’s this constant growth that encourages us to recommend the platform to our clients.

SEVENROOMS LAUNCHES REVENUE MANAGEMENT TO HELP OPERATORS INCREASE SALES & PROFITABILITY

Automated revenue management solution will provide restaurants with the tools they need to optimize their operations and fill more seats, more often

NEW YORK (September 28, 2023) – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced the launch of a new solution for restaurants: Revenue Management. The product serves as an engine for operators to generate more sales and profitability from the same seats, using data science to recommend how to optimize availability and increase table utilization.

To survive current economic conditions, restaurants need solutions that can save them time, reduce their labor costs and increase their sales and profits. Inspired by effective revenue management strategies long-used by the travel industry, Revenue Management extends this practice to the restaurant industry. The product automates these processes without the need for analysts, additional staff or high-priced consultants to manage changes, helping to:

Fill more seats, more often to increase sales by reducing the time seats sit empty
Save time and reduce burdensome labor costs by automating in-depth analysis, quickly making changes with a ‘do-it-for-me’ option
Provide operators with easy-to-digest insights along with ready-to-use actions that demystify proven steps taken by revenue leaders

Other systems on the market today may offer reporting on a handful of insights, but none help operators immediately action revenue-focused suggestions with a ‘do-it-for-me’ option that has an instant impact on their operations. Sample actions include recommendations on party size or dining duration configurations, when to institute cancellation policies to decrease last-minute cancellations, floor plan configuration recommendations and more. Diners also benefit, with more available reservations, a better dining experience (e.g. being sat on time and not being rushed out the door) and more unique experiences and offerings to choose from when dining out as operators have more time to focus on the guest experience.

Notably, Revenue Management also gives operators insights into how much demand was missed across booking channels by summarizing data on recent reservation attempts. This helps operators better manage these channels and optimize their books to offer more reservations across their most profitable channels.

“With Revenue Management, we are delivering on our promise to help operators make more money, providing a product that automatically executes on strategies used by the most successful hospitality brands throughout the world – without having to add team members or search out implementation experts,” said Angela DeFranco, VP of Product at SevenRooms. “This tool is both proactive and reactive, helping operators uncover untapped opportunities while simultaneously working to identify potentially harmful configuration issues that may restrict venues from maximizing sales and profitability. Today’s operators are busier than ever, and we are excited to bring Revenue Management to hospitality operators, helping them automatically fill more seats, more often while continuing to elevate their guest experiences.”

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

About SevenRooms

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

Image: Erik Mclean via Pexels