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F&B | KRG Hospitality - Part 34

F&B

by David Klemt David Klemt No Comments

Celebrate National Takeout Day!

Celebrate National Takeout Day!

by David Klemt

Canadian flag against blue sky and white clouds

Today is the big day: National Takeout Day in Canada!

Canada Takeout is challenging Canadians to place takeout orders and set a national record.

Obviously, this national challenge is very straightforward—if you’re in Canada, order takeout!

Take Part

As an operator, make sure your loyal customers know to participate today. You know what that means—flood social media.

If there was ever a right time to leverage your social media channels, it’s today.

Post about your takeout menu. Post about any specials you’re offering to entice your customers to place takeout orders. Show off your food. Use the hashtags #takeoutday and #Canadatakeoutrecord. Encourage your customers to post their orders and use the same hashtags.

Also, ensure your receipt printing system is set to label takeout orders as “Takeout” on receipts. That makes it possible for your customers to upload their receipts to the Takeout Tracker; make sure you tell your customers to do that so they can be counted.

Go All In

Canada Takeout’s mission is “reminding Canadians to order takeout.” The organization is helping Canada set the all-time record for takeout orders today in several ways.

We’ve been over their hashtags and that you should absolutely use them. However, Canada Takeout has also created social media assets anyone can download and use. One of these assets features a fantastic slogan: “Eat well. Support local. Set a record.”

Click here, scroll down, and download. While you’re at it, make sure you’re following Canada Takeout on Instagram and Facebook.

Keep it Going

This isn’t Canada Takeout’s first initiative. The organization launched the inaugural National Takeout Day last year, April 15, 2020.

Per a press release, the hashtag #takeoutday has earned more than 160 million impressions, reaching nearly 53 million people.

Canada Takeout also celebrates other food-related holidays. Visit the site and you’ll see that they’re looking forward to Thai Food Day (April 21), Tomato Day (April 28), and Mexican Food Day (May 5).

Get your takeout menu ready, promote it on social, and help set a record today!

Image: chris robert on Unsplash

by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: April

Stand Out with Weird Holidays: April

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar. They range from mainstream to food focused to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests.

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

April 14: National Reach as High as You Can Day

This is a holiday that will likely work best on social media. Just like there’s always a holiday and people like to say “there’s always a tweet,” there’s always a hashtag.

Use this day (and its accompanying hashtag) to highlight staff who want to participate, along with your venue.

Of course, if you want to involve your guests in person, go for it. Put your head together with your staff and get creative.

April 15: National Take a Wild Guess Day

You can take promotions centered around this day in several directions. The simplest way is to use the holiday to engage with followers on your social channels.

Consider borrowing from the “wrong answers only” posts on Instagram. Post a blurred, pixelated or “censored” item, like a bottle. In the caption, ask followers to “guess” what it is—wild guesses only.

This holiday also works well with blind tasting events.

April 16: Wear Pajamas to Work Day

I’d say this holiday is fairly self-explanatory. Let your front-of-house staff participate by wearing pajamas, with full team buy-in. Or, encourage your guests to wear their pajamas to your restaurant or bar.

If this holiday fell on a Saturday or Sunday, this would be a great day for a brunch promo. Of course, there’s nothing to say you can’t execute a Friday brunch.

April 16: National Bean Counter Day

In the United States, this holiday is taking place a month before the Tax Day deadline. If you’re so inclined, you could offer a deal to all the tax preparers and accountants in your area.

Although, you can also go a completely different direction. You can fill a large jar with beans—coffee would be great—and have guests guess how many there are. You can even post the jar full of beans to social, encouraging follower engagement. Closest guess wins a prize.

April 22: National Jelly Bean Day

Oh, hey… Remember that bean-counting holiday from way up there? I wonder if that bean-guessing idea would work for this holiday…

April 23: National Talk Like Shakespeare Day

If you think you or your social media manager can handle it, encourage your followers to describe your restaurant or bar as though they’re the Bard himself.

Or, as a Shakespearean translator would explain it, “Encourageth thy followeth’rs to describeth thy restaurant ‘r bar as though those gents’re the Bard himself.”

April 25: National DNA Day

Yesterday, I shared how our DNA plays a significant role in how we perceive bitter flavors. National DNA Day would be a great time to plan and execute a PTC strip and cocktail event.

April 27: National Tell a Story Day

How well do your loyal guests know you and your brand? How well do they know your staff?

National Tell a Story Day is an excellent time to leverage the story features on your social channels. Show off the venue and tell your brand’s story. If you have team members who want to participate and tell share a story, that’s a great way to engage with followers and guests.

April 28: National Superhero Day

If there was a ever a day to encourage your staff and/or guests to dress up for a fun time… National Superhero Day also leverages Shudder’s “Halfway to Halloween” event.

To take this holiday in another direction, you can also celebrate members of your community who give back to others by giving back to them.

“Weird” holidays aren’t just a dynamic way to engage with guests. Asking your team for ideas for holiday promotions is an excellent way to keep them engaged, which is a smart way to retain staff.

Image: Dan Parlante on Unsplash 

by David Klemt David Klemt No Comments

The Science of Bitter Flavors

The Science of Bitter Flavors

by David Klemt

Selection of cocktails on table on patio of bar

Not only do bitter cocktail ingredients add depth and complexity to drinks, individual DNA plays a role in how we perceive them.

Campari, one of the best-known bitter aperitifs, adds herbal bitterness to cocktails.

However, not everyone perceives bitterness the same way. This is why some of your guests love bitter drinks, some can’t stand them, and others don’t have much of a response at all.

The Bitter Response

Dr. Danielle Reed is associate director of the Monell Chemical Senses Center. As her research summary states, why different people taste and smell differently, and how genotypes play a role in that perception.

A recent Campari digital event, “In a Sense: Decoding the Science of Bitter,” dives into the bitter response of humans. During this webinar, host Alison Mouratis, a Campari portfolio representative in Chicago, hosts Dr. Reed and Micah Melton, beverage director at the Alinea Group.

In the webinar, Dr. Reed asks, “Where does bitter come from?” The answer is: plants.

Obviously, plants can’t defend themselves like animals. If a predator chooses a plant as its prey, it doesn’t really have to worry about teeth and talons.

Instead, plants employ secondary defense chemicals, and they do so in an instant. Some of these defense chemicals are poisonous and humans perceive them as bitter. Often, bitter flavors activate our salivary glands to dilute the poison and protect us.

Phenylthiocarbamide

Yes, that. Phenylthiocarbamide (PTC) is a chemical compound that tastes bitter…to some of us.

As Dr. Reed explains, not everyone can detect PTC. Our parents determine whether the receptor that picks up PTC is broken or not.

In some of us (about 30 percent of people), the receptor is broken. Turns out, it’s broken in yours truly. In others, one parent passes on the receptor. And for some people, both parents pass it on and the reaction to PTC is strong.

Test Your Receptor

I discovered my receptor is broken during the Campari event on screen with more than a dozen other participants.

How does one test their reaction to PTC? Via PTC strips. One takes a strip, places it in their mouth, and they’ll know quite quickly if their receptor is active.

Not only is this interesting to do just out of personal curiosity, operators can host an event similar to Campari’s. Guests are looking for new ways to engage with the brands, restaurants, bars, and bar teams they support.

PTC strips are available for on Amazon, and they’re not expensive. Vials of 100 PTC strips can cost as little as five dollars.

Not only is this type of event educational, it’s entertaining and can help drive drink sales.

Image: Chino Rocha on Unsplash 

by David Klemt David Klemt No Comments

2020 Craft Brewing Production Infographic

2020 Craft Brewing Production Infographic

by David Klemt

Stack of beer kegs in black and white

The Brewers Association‘s latest report and infographic reveal 2020 small and independent craft brewery production numbers.

Like their restaurant, bar and brewpub cohorts, brewers are facing enduring struggles due to the Covid-19 pandemic.

However, the Brewers Association did find some good news.

First, the challenges.

Overall Market Drop

The BA’s report reveals that small and independent craft brewer production is down nine percent from 2019. Overall, draught beer sales dropped 40 percent last year.

That equates to an overall market share of 12.3 percent in 2020. Comparing 2020 to 2019, that’s a decline of 1.3 percent.

Unfortunately, 2020 craft brewer numbers also reveal significant job loss for the industry. In comparison to 2019, direct craft beer jobs are down 14 percent.

In terms of small and independent brewery closures, 2020 saw 346 brewers close their doors permanently.

Some Silver Linings

There is some good news for craft beer. Not every closure is attributable to Covid-19.

Reviewing the 2020 numbers, the BA says there are 8,764 craft breweries operating in the United States. That’s an all-time high.

The breakdown is as follows:

  • 220 Regional craft breweries
  • 1,854 Microbreweries
  • 3,219 Brewpubs
  • 3,471 Taproom breweries

Impressively, the number of new craft brewery openings more than double the number of closures at 716.

Per Bart Watson, chief economist at the BA, the total number of craft breweries and openings in 2020 proves the “resilient and entrepreneurial nature” of small and independent brewers.

BA Infographic

You’ll find more information below. The BA’s infographic neatly tells the story of the association’s latest report.

Perhaps the biggest positive takeaway is the steady growth in operational craft breweries. Since 2016, the number of breweries in this category has increased by nearly 3,100.

That’s an average of 785 new brewery openings each year. Given the number of openings in 2020, it’s possible craft brewers will gain ground on the jobs lost over the course of last year.

It’s also likely production and sales numbers will see a boost in 2021 through a culmination of easing restrictions, reopening markets, pent-up demand, vaccination rates, and guest comfort levels.

2020 Small and Independent US Craft Brewer Annual Production Report

Infographic: Brewers Association

Image: Hennie Stander on Unsplash

by David Klemt David Klemt No Comments

Dial In Your Brunch Before Mother’s Day

Dial In Your Brunch Before Mother’s Day

by David Klemt

Warming weather, pent-up demand, and less-restrictive Covid rules—at least in the United States—make brunch viable in many markets.

Plus, we’re just a month away from Mother’s Day. If everything goes right, dining restrictions won’t keep operators from capitalizing on this big brunch holiday.

Considering your brunch menu now—including your Champagne and sparkling drinks—will help you dial it in before Mother’s Day.

To help you perfect your brunch operations, let’s look at a casual chain, a taco shack, a fine-dining restaurant, and a casual independent restaurant that focuses on comfort foods.

Las Vegas

Things are looking up for Las Vegas. Nevada’s current Covid-19 status is Mitigation.

Restaurants, bars, pubs, breweries, distilleries and wineries may operate at 50-percent indoor capacity. There’s no occupancy limit for outdoor dining, but operators must follow social distancing guidelines.

The city is known for its buffets, of course. Some are open again, thanks to the easing of restrictions. However, Las Vegas buffets are known globally—let’s focus on a more traditional restaurant for this list. I also want to venture off the Strip—but not too far.

Lazy Dog is a casual dining chain with a focus on craft beer and dog-friendly operations. Canine buddies are welcome on their patios.

You may be wondering why, given all the incredible restaurants in Las Vegas, I’m looking at a casual chain. The answer, quite simply, is that I want to offer an array of suggestions to get you thinking about your own brunch offerings.

First, there’s the $20 DIY Mimosa. For $20, guests get a 750mL of Freixenet Cava with either orange juice of Kern’s Peach Nectar.

Then there are the brunch menu food items. There’s a generous portion of avocado toast that comes with cheesy scrambled eggs; a Breakfast Burger; a Breakfast Club Sandwich; a couple of breakfast quiches; and Bacon Candy, which is bacon with brown sugar, crushed red pepper chili flakes and black pepper.

Lazy Dog’s brunch is a good example of how to make bottle service fun and accessible, and elevating brunch menus in a way that’s familiar and appealing to guests.

Nashville

It’s still standard operating procedure for guests in restaurants and bars to wear face coverings unless eating or drinking. Capacity is 175 people maximum per floor. There’s a limit of 10 guests per table inside, 25 outside.

However, restaurants and bars are open in Nashville for indoor dining. Venues that serve alcohol must cease service at 1:00 AM and close at 2:00 AM. If there is no alcohol service, a restaurant may remain open for 24 hours.

Redheaded Stranger takes brunch in a deceptively simple direction: breakfast tacos. Brunch doesn’t have to be standard breakfast foods, after all.

Flour tortillas are made in house and pair well with mouthwatering brunch fillings. There are tacos with bacon, tater tots, egg and cheddar cheese; chorizo, egg, sour cream and cheddar; and tater tots, jalapeño crema, red hatch chiles, and American cheese. Oh, and don’t forget their inventive sauces, like Dr. Pepper Hot Sauce.

Of course, no brunch is complete without cool, refreshing drinks. The taco hot spot offers Bloody Marys, Mimosas, Margaritas, and frozen cocktails.

Orlando

Florida is in Phase 3 of their reopening plan. That means restaurants, bars and nightlife venues are open for business.

There’s an executive order in place in Orange County, Florida, mandating face masks in public settings. Orlando is in Orange County.

Otherwise, it’s business as usual.

Chef’s Table at the Edgewater is an award-winning fine dining restaurant. People travel from all over the world for the food and experience.

The Chef’s Table brunch menu features upscale but accessible fare. There are Duck Fat Fries to share (or keep to yourself); Lobster Mac & Cheese; a trio of Mini Beef Wellingtons; Chicken and Waffles made with sweet-tea-brined chicken and bourbon maple syrup; Vegan Chilaquiles Verdes to which one can add a sunny-side-up egg.

Philadelphia

As of April 4, restaurants and bars are able to enjoy relaxed Covid restrictions. One of the biggest reasons for restaurants and bars to rejoice is the return of bar services. Barriers are required promote social distancing.

As far as indoor capacity restrictions, restaurants and bars that self-certify may operate at 75 percent. Venues that don’t self-certify may open at 50 percent indoor capacity.

Establishments can serve alcohol without the purchase of food, and there’s no longer a curfew for removing alcohol from tables.

One Philly restaurant that got our attention with their brunch menu is the Twisted Tail. The Headhouse Square eatery offered a $39/person prix fixe menu for Easter, taking full advantage of Pennsylvania’s new Covid regulations.

Their “standard” brunch menu features creative items such as Crawfish Mac & Cheese, Beer-Battered Cheese Curds, and Buttermilk Chicken Sandwich.

Image: Natasha Kapur on Unsplash 

by David Klemt David Klemt No Comments

Grilled Cheese Day: Mastering the Melt

Grilled Cheese Day: Mastering the Melt

by David Klemt

Person pulling apart melty grilled cheese sandwich

There are few comfort foods more popular than a well-made, melty grilled cheese sandwich.

It’s such a perfect comfort food that it has its own national holiday in the United States.

National Grilled Cheese Sandwich Day is April 12 in the US. From what I’ve read, Canada also gets in on the fun.

Melt Mastery

If you want to make the best grilled cheese sandwiches, not just any cheese will do.

The saying goes that you can’t squeeze blood from a stone. Well, you also can’t squeeze a melt out of a hard cheese cheese.

So, you want to make one of the comfiest of comfort foods. Cheese selection matters. Here’s what to consider:

  • Moisture content. Hard cheeses have very little water content and therefore don’t fully liquify.
  • Fat content. Cheeses with a high fat content melt very well.
  • Acidity. Cheeses that are highly acidic get stringy when melted. Acid-curded cheeses (vegan, many goat cheeses) don’t melt much, if at all.
  • Age. If you want melty cheese that results in that visually appealing cheese pull, look for fresh and unaged cheeses.

Melt Mates

It’s tempting to throw the cheese drawer at a sandwich. If one cheese is great, more cheeses are even better, right?

Wrong. Certain cheeses melt together better than others. Consider this:

There are restaurants that have grilled cheese eating challenges. Complete such a challenge, bask in glory forever. The reason this particular challenge must be completed quickly is melting points. As the sandwich cools, the cheeses congeal. The harder, lower-fat cheeses make it much more difficult to finish the admittedly ridiculous challenge sandwich.

So, which challenges melt the best and tend to play well together? Check out the list below:

  • American
  • Blue Cheese
  • Brie (works particularly well with fruit slices, jam and aged Cheddar)
  • Cheddar (look for younger versions for the best melt)
  • Colby
  • Comté
  • Fontina
  • Gruyère (again, younger versions tend to be better for grilled cheese sandwiches)
  • Monterey Jack
  • Mozzarella
  • Muenster
  • Pepper Jack
  • Provolone
  • Raclette
  • Taleggio

Become Legend

Comfort foods have become big-time revenue generators during the pandemic in America and Canada. There’s no reason to believe that’s going to change any time soon.

Master your melt and your sandwiches will become legend. Master the sides, dips and other accoutrements that enhance your legendary sandwich(es) and you’ll become a grilled cheese god.

Image: Nathan Dumlao on Unsplash

by krghospitality krghospitality No Comments

NRN Shares Inclusion Insights Report

NRN Shares Inclusion Insights Report

by David Klemt

Light bulb idea concept on wood background

Featuring insights from their 2021 Power List, an inclusion report from American trade publication Nation’s Restaurant News is now available.

Overall, NRN’s 2021 Power List consists of C-suite and executive heavy hitters from some of the most influential restaurant groups.

For example, Domino’s, Yum Brands, &pizza, and Momofuku Restaurant Group, are on this year’s list.

To compile their 2021 Power List: Leadership & Inclusion Insights report, NRN asked their power players to identify a team member who embody inclusivity.

Lessons Learned from 2020

NRN’s report is broken down into five sections; this is the first.

Reading through the insights in this section, you’ll find that agility and adaptability are crucial to navigating crises. That will come as no surprise to many.

However, what really strikes me are the words of Donnie Upshaw, SVP for people at Wingstop. Upshaw cites the importance of culture and core values:

“Our core values, known as ‘The Wingstop Way’—service-minded, authentic, entrepreneurial and fun—have been and will continue to be our guiding light through all seasons of our business.”

Those core values, along with Wingstop culture and a focus on retaining top talent, are keys to their successful navigating of the pandemic.

Accomplishments During a Pandemic

The pandemic has torn apart the hospitality industry and continues to do so. In America, we’re just now seeing specific relief targeting foodservice businesses.

Given the situation, just surviving the pandemic is an accomplishment.

Still, chain and independent operators are forging paths forward and inspiring others inside and outside of the industry.

Erika Palomar, COO of the Independent Restaurant Coalition, says the group “faced the darkest hours, together.”

Palomar continues: “They held fast to their commitment to change the most lives possible. This group has the remarkable ability to look beyond their door and inspire others to take action and make bold changes that will serve this industry and our society for the better.”

Importance of Leadership & Impact

The job of owners, operators, managers, and mentors is to lead. Doing so is one of the most effective tools for growing a business and retaining talent.

Adversity, of course, is one of the—if not the—greatest challenges to leadership.

Beth Scott, president of Fleming’s, says building trust is the first step in realizing the core of what it means to be a leader: inspiring and influencing, not commanding.

Jason Crain, CRO of Slutty Vegan, says, “Leading is dynamic and solution oriented.” Crain points to knowing when to implement different forms of leadership as a crucial element.

Further Insights

NRN’s report has two more categories, “Fostering Diversity & Inclusion” and “The Future of Foodservice.” There are insights from several more power players who drive the missions of inclusivity, diversity and equity.

We encourage you to follow this link and review the report for invaluable motivation and inspiration for your own business.

Image: Free-Photos from Pixabay

by krghospitality krghospitality No Comments

Kitchen Showdown: Virtual vs. Ghost

Kitchen Showdown: Virtual vs. Ghost

by David Klemt

Person ordering Uber Eats

The lines between virtual and ghost kitchens are growing increasingly blurry as they rise in popularity.

The terms aren’t interchangeable—they’re separate concepts.

Let’s snap the two into focus so operators can decide for themselves which, if either, is for them.

Virtual Kitchen

A virtual kitchen or virtual restaurant supports a brick-and-mortar concept. This includes food trucks.

Standard process is as follows:

  • A concept in a certain category seeks to expand their menu options without diluting or otherwise damaging their brand.
  • They create new menu items and sometimes a new brand.
  • Their existing kitchen or kitchens create these new items, which are online- and delivery-only.

A virtual kitchen has a brick-and-mortar location in a technical sense, but the brand’s existence is essentially digital as far as consumers know.

Ghost Kitchen

These facilities are delivery-only and commonly produce virtual brands’ items, which is a possible source of the confusion surrounding ghost and virtual kitchens. A truly virtual brand is only available online, either via its own ordering site or a delivery app—it has no brick-and-mortar location of its own.

We’ve known since the Chicken Wars first started that chicken sells, apparently in all forms. Several virtual brands, largely focused on wings and sandwiches, are succeeding with the help of ghost kitchens.

However, ghost kitchens also rent themselves out to or otherwise enter into contracts with third-party concepts with brick-and-mortar locations of their own to produce their delivery menu items.

The explosive rise of delivery is driving investment in ghost kitchens (former Uber executive Travis Kalanick’s CloudKitchens is an excellent example). It’s also the reason that so many industry experts and speculators declare ghosts “the future of restaurants.”

Not the Same

This quick rundown should clarify the differences between virtual kitchens and ghosts. Their missions may be similar but their operations are not.

Image: Charles Deluvio on Unsplash

by David Klemt David Klemt No Comments

Rediscovering Your Guests in 2021

Rediscovering Your Guests in 2021

by David Klemt

Guests in a restaurant and bar

Labatt Breweries of Canada wants operators to get to know their guests all over again in 2021.

Luckily, this isn’t a massive undertaking. However, it requires commitment and an understanding of altered consumer behavior.

During the 2021 Restaurants Canada Show, Labatt presented “Rediscover Your Guest: The 2021 Consumer.”

Christina Veira, bar and beverage curator for the RC Show, hosted the digital session. Labatt panelists included Michelle Tham, head of education and certified Cicerone, and Megan Harris, director of insights and strategy. Casey Ferrell, vice president of US and Canada Monitors for Kantar Consulting rounded out the panel.

Who’s Your 2021 Guest?

The good news is that Canadians are still consuming beverage alcohol. The less-good news is that they’ve gotten used to drinking mainly at home.

In fact, per Megan Harris, 95 percent of beverage alcohol occasions now happen at home. Harris also says there’s excitement about a return to in-person restaurant and bar service. However, several pandemic-driven behaviors will persist, including:

  • Takeout
  • Delivery
  • Daytime drinking
  • Working from home

Guests are set to unleash a torrent of pent-up demand when they can safely return to restaurants and bars. They want to indulge themselves, have fun and new experiences, but also feel safe.

Generally speaking, younger guests are more tolerant of risk. Conversely, guests over 50 years old are more cautious.

Vaccine Influence

Per Ferrell, there are four distinct vaccine groups in Canada and the United States:

  • People have gotten a Covid-19 vaccine.
  • People who can’t wait to get a Covid-19 vaccine.
  • People who are unsure about Covid-19 vaccines.
  • People who refuse to get a Covid-19 vaccine.

Ferrell says to remove the final group on that list. Doing so shows that about two-thirds of Canadians (and Americans) are in the process of getting the vaccine. Therefore, operators need consider how to address vaccination safety along with vaccination requirements for guests and employees. For Ferrell, the best lever to pull is the one that addresses Covid-19 and vaccine risks.

Additionally, just because the calendar ticked over to 2021 doesn’t mean everything is different. Accordingly, Ferrell feels that Q1 is the “More of 2021” stage of this year. He expects people to open up their bubbles during possibly Q2 or Q3, the “Less Covid-19” stage. Parties that include multiple households will return in force in Q4.

How to Meet 2021 Guest Expectations

First, we must be cautious when people return to restaurants, bars and other venues en masse. That initial boost in traffic driven by pent-up demand will ebb quicker than one would expect.

To get people through the doors, operators will need to focus on:

  1. health and safety;
  2. staff expectations and training;
  3. social interactions and the joy deficit; and
  4. guest experience and journey.

Harris sums up the first point succinctly: Anything that can be touchless, should be touchless. Operators should expect contactless features to remain moving forward. The expectation for hygiene will also remain. Guests will want to see employees cleaning and sanitizing, for instance.

Speaking of employees, operators must address the role they’ll plan in crowd management. Unfortunately, management and employees will have to be ready to enforce health and safety protocols strongly.

As Ferrell notes, long-term lockdown means large swaths of the population need to re-learn how to interact with others. One way to drive guests through restaurant or bar doors is promoting the role they play in socializing. Hospitality businesses facilitate social interaction—it’s one of the industry’s greatest strengths. Equally, restaurants and bars fill people’s joy deficits.

Operators, says Harris, need to consider:

  • every way they can offer an experience guests can’t have at home;
  • how they can capitalize on the daytime drinking experience;
  • how to extend the guest experience—pre-visit and post-visit;
  • how to attract older guests to their venues;
  • leveraging patio spaces; and
  • focusing on messaging that promotes escapism and excitement.

Another interesting consideration concerns table distances. Every operator needs to weigh square feet per guest and distancing tables. Social distance will likely remain important to guests for at least a little while post-pandemic.

Bonus

Ferrell answered a question I asked about Las Vegas specifically. Dayclubs, which largely focus on elevating pool parties, are an integral part of Vegas hospitality.

So, how can they signal their commitment to health and safety as relates to infections?

Ferrell’s answer is that evidence appears to indicate that pools are Covid-19 infection spreaders. Therefore, dayclub operators should focus more on the crowd control aspect of health and safety. Additionally, messaging should focus on indulgence.

After all, says Ferrell, not much is more indulgent than saying, “I’m going to take the day for myself and go to a daylife venue.”

Image: Nick Hillier on Unsplash

by David Klemt David Klemt No Comments

SevenRooms Reveals Third Party Impact

SevenRooms Reveals Third Party Delivery Impact

by David Klemt

Person using Uber Eats on their iPhone

New findings from SevenRooms, the powerful reservation and guest relationship platform, show the impact third-party delivery has on restaurants.

In partnership with YouGov, a respected internet-based market research and data analytics firm, SevenRooms finds that direct delivery saves operators thousands of dollars per month.

The overall finding of the “Data & Dollars: Revealing the Impact of Third-Party Marketplaces” report is startling. Operators are relying on a technology that in reality is harming them and their bottom line.

Cost of Convenience

Foodservice operators and workers, along with being hospitable in their mission to serve others, are adaptable.

The industry proves this time and time again. This is particularly true of the past 12 months.

Nimble operators pivot quickly, so it makes sense that so many restaurants, bars and other foodservice businesses embrace delivery, takeout and curbside pickup. Doing so is a direct and seemingly logical response to a major shift in consumer behavior to lockdowns, restrictions, and health concerns.

Most operators are well aware that state third-party delivery platforms take a 30-percent commission on average. However, the cost goes beyond devastatingly high fees: operators also lose control of the guest journey.

Real-world Example

SevenRooms illustrates the negative financial impact third-party delivery platforms with three examples: a high-end Italian restaurant in New York; a high-end steakhouse in Los Angeles; and a high-volume casual restaurant in California.

Let’s take a look at the last example.

Over a six-month period, the restaurant fulfills 19,000 combined orders. Delivery makes up 75 percent of these orders, takeout/pickup account for 25 percent. The average order is $33, and over the six-month period the total order volume is $617,500. Had the restaurant implemented direct delivery rather than third-party, they would have saved about $154,000.

Break those savings down and the restaurant would save approximately $25,600 per month that could go to:

  • PPE: 853 boxes of face masks or 196 boxes of gloves.
  • Takeout: 101,000 food containers.
  • Guest experience: 522 tanks of propane to keep guests warm on patios.

Using an average rent amount of $6,000-15,000 per month in Los Angeles, that’s also two to four months’ rent.

Guests Support Direct Delivery

The impact of third-party delivery on restaurants isn’t lost on consumers. Many view ordering food as more than just convenient, they see it as a way to support their favorite businesses.

Luckily, consumers are supportive of ordering delivery, takeout and pickup directly from restaurants.

Per SevenRooms:

  • Firstly, 37 percent of Americans are eager to do anything they can to help restaurants.
  • Nearly half, 48 percent, think it’s more economical to order directly from a restaurant.
  • 28 percent who say they prefer ordering directly to third-party delivery feel that way after seeing their favorite restaurants suffer.
  • 23 percent are informed and think third-party delivery platforms charge restaurants too much in fees.
  • 16 percent feel that the harm done to restaurants by third-party delivery outweighs any benefits.

Leverage Direct Delivery Support

SevenRooms identifies several ways in their report that operators can succeed in getting consumers to order directly.

One way is the platforms’ own Direct Delivery solution. We speak to SevenRooms CEO Joel Montaniel about this solution on our Bar Hacks podcast.

Then, of course, there are an array of incentives consumers are willing to accept in exchange for direct delivery and ordering:

  • 41 percent of Americans would order directly over ordering via third-party if a restaurant has its own app with features such as tracking and communication.
  • 37 percent consider a complimentary item such as an appetizer, drink or dessert in addition to their order an appealing incentive.
  • 32 percent like the idea of a personalized promotion applied to a future order or in-person visit.
  • 28 percent indicate interest in a personalized promotion for their meal such as a discount code or comp item.
  • 17 percent are fans of restaurants using ordering history to customize their menu and experience.

Read the entire report here. To learn more about SevenRooms, please click here. Connect with SevenRooms on Twitter, Facebook, LinkedIn and Instagram.

Image: cottonbro from Pexels

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