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2023 DoorDash Ordering Trends

2023 DoorDash Ordering Trends: Canada & US

by David Klemt

Canada and the United States of America on a globe

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.

  1. Burgers
  2. Fries
  3. Pizza
  4. Salad
  5. 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.

  1. French fries
  2. Burgers
  3. Tacos
  4. Salad
  5. 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

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2023 Cravings Report: “The Most” Orders

2023 Uber Eats Cravings Report: “The Most…” Orders

by David Klemt

Kentucky Fried Chicken packaged for delivery or pickup

Let’s take a look at the top orders, delivery requests, order combinations, surprising pairings, and more from the 2023 Uber Eats Cravings Report.

It appears that the chicken sandwich dominance we’ve seen over the years is winding down. At least, that seems to be the case among Uber Eats users.

As you’ll see below, not only is the chicken sandwich not the most popular item, it’s not even among the top five. It does edge out the cheeseburger and wings among the most popular combos, but it doesn’t outperform French fries and salt as a combo.

Another eyebrow-raising detail? Pizza doesn’t show up anywhere among the most ordered items, most popular combos, or even the most surprising combos.

Now, if you’re curious about the 2022 Uber Eats Cravings Report, you’re in luck. You can click here for the top food orders from that report, and here for the top beverage orders.

The Most…Ordered Items

  • French fries
  • Garlic naan
  • Pad Thai
  • Miso soup
  • California roll

Am I the only one who expected to see burgers, chicken sandwiches, and pizza on this list?

The Most…Popular Combos

  1. Burrito bowl + cheese
  2. French fries + salt
  3. Chicken sandwich + shredded lettuce
  4. Cheeseburger + mustard
  5. Wings + ranch

Fairly standard, really. Every one of these orders makes complete sense. Now, the category coming up next…it’s a different story.

However, before we move on, let’s compare these items to those found on the 2022 Uber Eats Cravings Report.

Interestingly, the number-one item is nearly identical: burrito + cheese. And French fries + salt is the second most-popular item on both lists.

The Most…Surprising Combos

  1. Steak + jelly
  2. Cottage cheese + mustard
  3. Condensed milk + avocado
  4. Seaweed + pasta sauce
  5. Butter + pickled onions

I really have nothing to say after reviewing this short list. I mean…hey, do your thing, everyone. Make your order yours.

To the operators out there, be ready for some odd order combos.

The Most…Popular Requests

  1. No onions
  2. Dressing on the side
  3. Ranch
  4. Extra soy sauce
  5. Spicy
  6. Sauce on the side
  7. No lettuce
  8. No jalapenos
  9. Extra gravy
  10. No slaw

Looking at the top request, Uber Eats has a theory as to what’s driving it: the return to the office.

People, it appears, are self-conscious about their breath in an in-person, face-to-face setting.

The Most…Popular Food and Alcohol Combos

  1. Ribeye + Vodka
  2. Cheeseburger + Frozen Margarita
  3. Chicken + Frozen Piña Colada
  4. Lobster tail + Apple whiskey
  5. Tamales + Daiquiris

Last year’s report reveals the following combos:

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

Overall, a lot of change from the 2022 Cravings Report to this year’s report.

Image: Nik on Unsplash

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Do You Need a Restaurant Chatbot?

Do You Need a Restaurant Chatbot?

by David Klemt

Robot hand reaching for human hand

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

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New Review Platform Rejects Negativity

It’s Good: New Review Platform Rejects Negativity

by David Klemt

"Just be nice" sign on wall with graffiti

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

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Mastering the Art of Knife Skills

Mastering the Art of Knife Skills: A Culinary Journey

by Nathen Dubé

Collection of various vintage knives surrounding a cutting board

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

KRG Hospitality menu development. Restaurant. Bar. Cafe. Lounge. Hotel. Resort. Food. Drinks.

by David Klemt David Klemt No Comments

Chicago to Phase Out the Tip Credit

Chicago to Phase Out the Tip Credit

by David Klemt

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

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

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

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Taco Bell Racking Up Rewards Program Wins

Taco Bell Racking Up Rewards Program Wins

by David Klemt

"Say yes to tacos" graffiti

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.

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Leisure and Hospitality Adds 96,000 Jobs

Leisure and Hospitality Adds 96,000 Jobs

by David Klemt

"Optimist" graffiti

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.

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The Top-performing New Restaurant Type

The Top-performing New Restaurant Type

by David Klemt

A bowl of ramen with beers in the background

According to a midyear Yelp report, one category of new restaurant is experiencing a surge in growth across the US unlike any other.

No, it’s not ramen, as the image above suggests. Instead, it’s pop-up restaurants.

We can trace the growth of this category, at least on the operator side, to cost. Sure, pop-ups were popular before 2020. However, they grew even more popular during the pandemic.

One can argue the life cycle of the pop-up is fad to trend to cost-saving adaptation to proliferation.

There are even those who transform shipping containers into mobile, pop-up restaurants and bars. With the right permits and hookups (water, electricity, etc.), an operator can test a new market or an entirely new concept before committing fully to a brick-and-mortar location.

In other words, the pop-up simply makes sense for our industry. This category of restaurant (or bar) clearly doesn’t cost anywhere as much as its permanent brick-and-mortar counterparts, for one. Secondly, a pop-up doesn’t (shouldn’t, anyway) require more than a skeleton crew. And thirdly, they do seem to enjoy pops in interest whenever they come to a new market or new address.

There are, of course, other benefits. However, the low(er) cost is the most attractive element for most operators.

Keep in mind that Double Chicken Please started life as a pop-up cocktail concept. In fact, DCP is the current Best Bar in North America according to the World’s 50 Best Bars.

Covering more than 10,000 miles and serving over 1,200 cocktails, the DCP pop-up toured the US for three years before finding a brick-and-mortar home. And what a home. The concept is now a jewel in New York’s Lower East Side F&B crown.

Top Restaurant Types by Opening

According to Yelp, the following restaurant categories are experiencing the most growth.

The numbers below represent the changes in business openings from April 2021 to March 2022 in comparison to April 2022 to March 2023.

  • Pop-ups: +105 percent
  • Ramen: +45 percent
  • Noodles: +40 percent
  • Tacos: +28 percent
  • Chicken shops: +28 percent
  • Food stands: +23 percent
  • Japanese: +20 percent
  • Breakfast and brunch: +20 percent
  • Sushi: +13 percent
  • Steakhouses: +9 percent

As the numbers above show, the growth of pop-ups far exceeds that of any of the other categories. In fact, they’re growing by nearly three times that of the second-place category, ramen restaurants.

Make a Pop-up Work for You

For a pop-up to work the concept must be realized fully. The brand and its story must be communicated clearly.

And while the menus can perhaps change more easily, signatures should be dialed in to generate buzz.

At KRG Hospitality, our view of pop-ups is a popular one. We think they’re excellent branding tools and are a viable way for new operators to test the waters.

However, we believe that a successful pop-up should be paired with a fully customized feasibility study and in-depth concept development. Both are core services offered by KRG Hospitality, and both are specialties that set us apart.

They may be mobile, they may feel niche and “temporary” or experimental, but they’re still a business.

A pop-up can only transform into a brick-and-mortar concept with a shot at longevity if the operator treats it as a roving proving ground.

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Pumpkin Spice Everything is Already Here

Pumpkin Spice Everything is Already Here

by David Klemt

Black and white image of jack-o'-lantern with smoke coming of its eyes

In what perhaps is an attempt to encourage people to think of cooler autumnal temperatures, pumpkin spice is descending upon us earlier than ever before.

Operators who are finalizing their pumpkin spice menu items are basically already late to the party.

Luckily, it isn’t like the brands for which fall’s most infamous LTO flavor works are too far behind. A significant percentage of consumers are drawn to pumpkin spice menu items like trick or treaters to homes handing out full-size candy bars.

So, operators still have time to put the final touches on pumpkin spice menu items…but they’ll want to get a move on.

That’s exactly what restaurant chains did this year. Their pumpkin spice-flavored onslaught began with the start of this month.

Pumpkin Spice, Now a Summer Flavor?

Spirit Halloween stores. Christmas music. And now, it appears, Pumpkin Spice.

What do these three things have in common? Well, it seems like they’re making their debuts earlier and earlier each year.

When we think of summer and seasonality, I don’t think pumpkin or even baking spices enters into most people’s minds.

Unless, however, those people are in marketing and branding.

According to Restaurant Business, Krispy Kreme went all in on pumpkin spice on August 7. On that day, the chain unveiled four donuts and a number of beverages featuring pumpkin flavors.

Interestingly, the company’s global chief brand officer, Dave Skena, states that their pumpkin spice releases came one day earlier this year. Last year, they say, pumpkin spice arrived “significantly earlier than the year before.”

7-11 may have crossed the pumpkin spice dateline first this year. Dunkin’ is already offering pumpkin spice F&B items. And Starbucks, famous for their PSL LTO, is rumored to be launching their specialty menu this Thursday.

Given these August releases, can we expect a brand to attempt to get the jump on everyone else and launch pumpkin spice LTOs in July?

Consumer Cravings

Brands wouldn’t gamble on releasing their pumpkin spice LTOs in August if they didn’t think their decision would pay off.

Considering what Krispy Kreme’s Skena says about pumpkin spice’s August arrival, consumers have already spoken. Apparently, a significant percentage of people have an interest in fall flavors midway through summer.

Of course, there are a few considerations for independent operators in terms of seasonal releases. Rolling out new menus and menu items can be a costly endeavor. Pulling the plug on one revenue-generating seasonal menu or LTO in favor of significantly different items may be harmful to the bottom line.

One approach operators could take is to plan far enough ahead to pull the trigger on LTOs when 7-11, Dunkin’, or Starbucks launch theirs. In other words, be ready, but don’t jump the gun.

This also speaks to the importance of operators knowing their core guests and listening to feedback. Are front-of-house staff hearing murmurs from guests that they’re craving new flavors? Perhaps it could be lucrative to leverage that anticipation.

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