Guest expectations | KRG Hospitality

Cocktails with edible flowers and dehydrated fruit for garnishes

September 26, 2024by David Klemt David Klemt No Comments

Are “Substituters” Leading NA Growth?

Are “Substituters” Leading NA Growth?

by David Klemt

No-ABV, low-ABV, or full strength?

Revelations shared by the IWSR recently suggest that the very generation driving non-alcohol growth may also be driving traditional beverage alcohol growth.

At least, according to the IWSR, a particular generation is over-indexing in the non-alc category and “full-strength” categories such as rum, whisky, Champagne, brandy and Cognac, and RTDs.

This is because Millennials—there it is, the big reveal—appear to be “substituters.” That is, as explained by the IWSR, much of this cohort consumes alcohol on some occasions, and non-alc beverages on others.

Now, before we proceed, let me get this out of the way: No generation is a monolith. While there’s value in understanding a given generation’s behavior, it’s important to understand that we can really only do so in broad terms.

That said, broadly speaking, members of the Millennial generation appear to be driving the growth of non-alc overall. In comparison to other generations, Millennials are consuming more non-alc spirits, more non-alc beer, and more non-alc wine.

Of course, there’s another caveat I must address: Less than half of Gen Z is of legal drinking age. So, when compared to that generation, the numbers are a bit skewed.

Generally speaking, non-alc is growing across the board in the US. What was once relegated to two or three low-alc beers and barely considered “mocktails” for many, many years is now a viable category. The category has gone from an afterthought to inspiring entire alcohol-free bar concepts, and it hasn’t taken long to achieve this growth.

Numbers

When I say Millennials are consuming more non-alc than other generations, what does that mean? Is the difference subtle, or is it eyebrow raising?

Per IWSR data, it’s the latter.

Last year, 45 percent of all non-alc beer drinkers in the US were Millennials. That number has jumped to 61 percent in 2024. Change focus to non-alc spirits and Millennials make up 66 percent of overall US consumers. That number is 59 percent when we look at who’s drinking non-alc wine.

For some context, just 22 percent of non-alc beer drinkers in the US are Gen X. Take a look at legal-drinking-age Gen Z and that number shrinks to seven percent. Again, though, most of Gen Z isn’t yet LDA.

So, back to substituters. Just under half of all Millennials, according to IWSR findings, vacillate between non-alc and full-ABV. It would appear, then, that Millennials are the most interested in exploring and experimenting with non-alc beverages.

For obvious reasons, this makes it clear that operators need to do more than just toss a couple of alcohol-free beers and sugary zero-proof cocktail concoctions on their menus.

Further, and I know I’m repeating myself, operators need to ensure they deliver the same level of service and guest experience for those abstaining from alcohol as those ordering traditional adult beverages. Failing to do so can alienate guests who choose to not consume alcohol but want to visit and socialize at a bar or restaurant. Why would they return if they receive what they perceive to be a lower level of service?

IWSR’s deep dive and data make it clear that operators need to give the non-alc element of their menu due consideration. The category is growing, interesting is increasing, and it’s smart business.

To review this data yourself, follow this link.

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AI-generated image of a person carrying takeout bags from restaurant to their motorcycle

September 6, 2024by David Klemt David Klemt No Comments

Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

I have done this. Cargo straps required.

Not too long ago, it seemed as delivery was going to overtake people’s desire to enjoy a restaurant in person, but that trend may be on a downward swing.

At first, this trend made perfect sense, for obvious reasons. For a while, the best way for consumers to enjoy their favorite restaurants and show support was to order delivery.

Rideshare companies jumped on delivery, as did several platforms. When guests were able to visit restaurants in person freely, delivery had become a habit for many of them. In fact, ordering delivery had become the de facto method of engaging with restaurants for a not-insignificant percentage of people.

However, operators and their teams weren’t shy about exposing their delivery “partners.” I think it’s fair to describe the fees operators were being charged by some of these partners as outrageous.

When the public found out about these fees, they didn’t sit well. Takeout, carryout, takeaway, order for pickup… Whatever your preferred nomenclature, people began seeing it as superior to delivery. This shift in consumer behavior was driven by a desire to support their favorite restaurants.

Of course, there are other factors that affected people’s move away from delivery. I’m confident in saying that most of us who have ordered delivery at some point in the last couple of years has experienced at least one of several downsides.

However, has delivery really fallen out of favor? Have takeout or drive-up pickup actually been passing up delivery?

Datassential’s 2024 Midyear Trends Report has some insights that can answer those questions. You can (and should) check it out for yourself here.

The State of Takeout and Delivery

To obtain a snapshot of the state of the performance of delivery and takeout, Datassential conducted a survey in May of this year. The F&B intelligence platform surveyed 400 US operators and more than 1,500 US consumers.

According to Datassential, nearly half of restaurant operators reported increases in guests dining in person at their restaurants.

Perhaps more telling, however, is that Datassential’s survey reveals that half of restaurants aren’t even offering delivery. I don’t know the breakdown of operators who once offered delivery and stopped doing so versus operators who never offered delivery.

What I do know is that there are, as I alluded to up top, many reasons for people to eschew delivery. Chief among these are cost, and the condition of the order when it arrives to the guest.

On the operator side, cost is once again a consideration, as are negative reviews and complaints. More than one study has shown that operators often get the blame when a third party botches an element of the delivery. These complaints can include food being delivered lukewarm or cold, parts of the delivery missing, or the wrong items being delivered to someone.

But, again, is demand for delivery slipping?

Per Datassential’s report, takeout and catering are outpacing the growth of delivery for US operators. Almost 40 percent of operators who participated in Datassential’s survey reported an increase in frequency for takeout and catering orders. In comparison, just 20 percent of respondents ordered an increase in delivery order.

Just eight percent of operators indicated a decrease in takeout and delivery. In fact, the greatest decrease impacts catering (14 percent), according to Datassential’s report.

Takeaway

Delivery, simply put, doesn’t work for every operator or every concept. Moreover, it looks like consumer desire for takeout is on a greater upswing in contrast to delivery.

For concepts that succeed with delivery, it’s imperative that operators control the process rather than cede to third parties, in my opinion.

The best way forward will vary from business to business. Operators and their teams need to be ruthless the quality, consistency, accuracy, and value of all orders, whether placed in person, for takeout, or for delivery. Further, when it comes to takeout and delivery, the ordering process must be convenient.

What’s clear is that every operator needs to dive into their data, determine how guests prefer to order from their restaurant, and pursue those preferences to enhance the guest experience.

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May 24, 2024by David Klemt David Klemt No Comments

Want to Leverage Nostalgia? Spin It

Want to Leverage Nostalgia? Put Your Spin on It

by David Klemt

A recent report from Campbell’s Foodservice—along with supporting data from external sources—supports what many operators assume about food trends.

Our dive into Campbell’s Culinary TrendPulse 2024 report is here for those who want to take a look. Anyone who wants to download a copy of the report for themselves can click here.

However, I’m referencing a fresh, quick-hit report from Campbell’s. While it only takes a handful of minutes to read, it’s chock-full of useful insights.

In particular, this latest menu trend analysis looks into succeeding with nostalgia. Citing a study from Symrise in their post, 70 to 76 percent of guests ages 22 to 65 cherish nostalgic items.

Put simply, that translates to a truth most operators know: guests of all ages like comfort foods. This really doesn’t need much explanation. Comfort foods are—insert shocked Pikachu face here—comforting. And I think we’re all seeking comfort these days.

So, yes, operators should—in an authentic manner—speak to and fill this guest desire. Authentically in this context means putting comfort foods on the menu that make sense. Doing this successfully requires menu programming that fits with the brand and within the venue’s theme. It also necessitates really knowing your guests and what they expect.

For example, will a particular restaurant’s guests find mac and cheese comforting? Will they stop scanning the menu when they come across pozole? What about cacio e pepe or beef braciole? How receptive will they be to sukiyaki?

A sharp operator should know their guests’ tastes better than just about anyone. Therefore, they should know what foods they’ll find comforting.

However, there’s another way to succeed with nostalgia and enhance the guest experience.

“New” Nostalgia

There are a couple of ways to interpret the term “new nostalgia.”

One way is to tap into what foods, generally speaking since they’re not monoliths, different generations view as comfort foods. This can be something as simple as a certain candy or beverage from their childhood.

Another way is for an operator and their kitchen team to take a nostalgic dish and put their own spin on it. Using candy as an example again, a scratch-made interpretation of a treat to create a dessert may work.

Consider, as a real-world model for this approach, the Chocotini that Oceans Resort Casino featured toward the end of August in 2022. This was a direct response to the news that Klondike had retired the Choco Taco, a nostalgic treat for millions of people spanning multiple generations.

Of course, operators can also cross-utilize items to craft new menu items that tap into the craving for nostalgic comfort foods. These dishes can be permanent additions, seasonal menu updates, or LTOs.

Take a look at the image atop this article. Mac and cheese is a classic comfort dish. Now, feature it as a topping for a signature burger. That’s a prime example of new nostalgia.

Going farther, kitchen teams can combine nostalgia with another trend to get even more creative: global flavors. Are there tacos on the menu? Maybe bulgogi tacos featuring beef short rib, Korean slaw, and soy-lime dressing would resonate with guests.

I’m not saying anyone should menu these specific items. Rather, my aim here is to get operators and their kitchen and bar teams to put their heads together and create undeniable, irresistible takes on classics.

The key, again, is an understanding of the market, community, and guests. From there, it’s about getting creative and crafting dishes that guests can’t get anywhere else.

Image: Alex Haney on Unsplash

March 11, 2024by David Klemt David Klemt No Comments

Loud Luxuries: Martinis and Caviar

Loud Luxuries: Opulent Martinis & Caviar Bumps

by David Klemt

Taking a look at what’s going down in the bar and restaurant world, it appears that luxury sips and bites are the latest darlings in the F&B space.

In particular, I’m talking about the stories going around about $40 Martinis. Oh, and the interest consumers are showing in caviar. Specifically, caviar bumps, though people seem to be craving this luxury bite any way they can get it.

At the risk of coming across as snobby or hipster-ish, Las Vegas has been offering guests caviar bumps at parties and restaurants for several years now. A close friend of mine has hired a caviar bump service for private business events and personal parties on more than one occasion.

To explain, a caviar bump is a much less formal way of consuming salt-cured roe. One takes a small spoon, dabs a bit of caviar in the area of their hand between their thumb and index finger, and licks it off. Contrary to what some people think (probably only once), the caviar isn’t snorted. Although, I’m not here to police how people choose to consume their food.

Interestingly, there are plant-based “caviar” brands on the market. So, vegetarian and vegan guests can get in on the caviar bump fun.

Now, back to the $40 Martinis. If that makes some operators and bartenders raise an eyebrow, their jaws will likely drop when they read what’s next. It’s not difficult to find Martinis that cost well in excess of $100.

This trend is belongs to the “loud luxury” movement. As one can infer reasonably, the phrase describes spending a lot of money on an item or experience because it’s expensive. Engaging in ostentatious spending is the point.

Given the state of many people’s finances these days, such flashy displays are justifiably viewed as vulgar by some. However, if recent stories are to be believed, 2024 is the year of loud luxury.

Get Loud

Or, more accurately, operators should encourage their guests to get loud.

That is, of course, if loud luxury matches the concept and market. Although, having a $40 Martini on a dive bar menu is only silly if it costs an operator money. There’s nothing wrong with putting such a drink on a menu if it doesn’t offend a venue’s base of loyal guests and run them off.

So, what’s in a $40-plus Martini? Pricey booze, put simply. These luxe libations aren’t made with $20 or $30 gins or vodkas. Rather, these spendy sips feature spirits that cost $100 or more.

Further, these trendy, tony tipples pair quite well with caviar bumps. There’s no reason an operator can’t leverage both of these extravagant trends simultaneously. Depending on which caviar is on offer, bumps can command upsell costs of $10 to $20 (or more).

That can mean that an operator’s $40 Martini can become a $50 or $60 Martini-and-caviar pairing experience.

Again, offering guests such an extravagant experience requires careful consideration and execution. Operators need to make an informed decision that includes understanding how their guests will respond to these loudly luxurious menu items.

That said, if a concept and brand can deliver such an over-the-top experience without alienating their guests, it can be fun, memorable, and profitable.

Something to consider as we approach Espresso Martini Day, which takes place on March 15. Who wants to take a shot at making one that costs more than $40?

Image: Ambitious Studio* – Rick Barrett on Unsplash

February 21, 2024by David Klemt David Klemt No Comments

Did This Beer Win Super Bowl LVIII?

Did This Beer Win Super Bowl LVIII?

by David Klemt

Now that the Super Bowl is over, behavioral insight platform Veylinx is revealing the impact on brands that advertised during this year’s big game.

If Veylinx sounds familiar to you, you may be a regular KRG Hospitality news reader. Last month we looked at their dive into alcohol-free canned cocktails. Last year, we shared a Veylinx report with a focus on whether Super Bowl ads really work on consumers. And in 2022, Veylinx wondered if the interest in zero-proof drinks was all hype or worth leveraging.

This month, Veylinx is at it again. This time, however, they’re revealing which brands—those that advertised during Super Bowl LVIII—saw the biggest ROI. For context, a 30-second spot during the big game cost approximately $7 million this year.

That’s a ton of cash to shell out in the hopes of seeing a sales increase on- and off-premise.

Speaking of on-premise, Veylinx’s findings should be of interest to operators. The beer that Veylinx says “won” the Super Bowl will likely be top of mind among your guests who watched the game and the accompanying ads.

So, it stands to reason that they’ll either expect to find that beer on a menu. Likewise, they may be swayed to order the beer if they see it when scanning a bar’s taps, menu, or fridges.

With that in mind, operators may want to watch their sales of Michelob Ultra.

Study Methodology

For their latest report, Veylinx used similar methodology to their Elixir non-alcoholic canned cocktail study.

A mix of 50 percent men and fifty percent women participated in the study. All 1,604 participants were US residents aged 21 or older. Looking deeper into the participants, the age breakdown is as follows:

21 to 27: 30 percent
28 to 43: 25 percent
44 to 59: 25 percent
60 and older: 20 percent

Like the Elixir (a fake brand invented by Veylinx) study, participants bid on products with their own money. The auction mix consisted of products that advertised during Super Bowl LVIII and those that did not advertise during the game.

Study Results

Among all viewers of Super Bowl LVIII, brands that advertised during the game saw an average lift of 16 percent.

However, those brands saw the biggest boost in demand—24 percent—among men. Gen Z followed, with demand in advertised brands growing by 11 percent. Among women, brands that advertised saw just a nine-percent boost in demand.

While Doritos Dinamita was the number-one brand among all viewers in general, and men and Gen Z in particular, Michelob Ultra is a close second. Interestingly, the beer brand was the top-performer among women in terms of demand growth.

For those wondering, no alcohol brands were among the top three performers for Gen Z.

So, operators who have noticed in uptick in Michelob Ultra sales may have Super Bowl LVIII to thank. If that’s the case, if sales of Michelob Ultra have increased in bars and restaurants since this year’s big game, it appears that yes, Super Bowl ads still work on consumers.

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February 6, 2024by David Klemt David Klemt No Comments

Pizza Today Reveals Top New Cheeses

Pizza Today Reveals Top New Cheeses for 2024

by David Klemt

Pizza Today‘s informative 2024 Pizza Industry Trends Report is full of useful information, from top styles and toppings to new cheeses guests can choose.

Two weeks ago we did a deep dive into the top eleven pizza styles going into 2024, per Pizza Today. Click here to read that article.

Last week we checked out what the pizza publication had to say about top pizza styles by region. Additionally, we looked at the top toppings nationally and regionally. You can read that article here.

Now, we’re going to talk about what Pizza Today has learned about the top cheeses operators are putting on their menus.

Top Pizza Styles, Nationally and Regionally

Before we jump into the cheeses, a quick recap of the top pizza styles in America.

New York
Traditional American
Sicilian
Deep Dish
Neapolitan / Napoletana
Chicago Thin / Tavern-style
Detroit
Grandma
California / American Artisan
NEOpolitan / Neo-Neapolitan and Chicago Thick (tie)

And now, the top trending pizza styles.

Detroit
Deep Dish and Grandma (tie)
Sicilian
New York
Chicago Thin

Finally, the top pizza styles by region. For a more detailed explanation of each region, click here.

The West

New York Style
Traditional America
California/American Artisan
Sicilian
Neapolitan

The South

New York Style
Traditional America
Sicilian
Deep Dish
Neapolitan

The Midwest

Traditional America
Chicago Thin
New York Style
Deep Dish
Detroit

The Northeast

New York Style
Sicilian
Traditional America
Neapolitan
Grandma

Top Pizza Toppings, Nationally and Regionally

We’re almost to the cheeses. First, a recap of the most popular items to put on top of cheese.

Well, unless we’re talking a stuffed pizza. Click here and scroll to Deep Dish to see what I mean.

Now, the top toppings across the US.

Pepperoni
Sausage
Mushroom
Extra Cheese
Bacon
Chicken
Onion
Red/Green Bell Pepper
Ham
Black Olives
Meatballs
Canadian Bacon
Jalapenos
Pineapple
Beef
Basil
Banana Peppers
Fresh garlic
Tomatoes
Spinach

Below, how toppings break down regionally.

The West

Pepperoni
Sausage
Mushroom
Chicken
Bacon

The South

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon

The Midwest

Pepperoni
Sausage
Mushroom
Bacon
Onion

The Northeast

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon

Top “New” Cheeses

Okay, so we’ve reviewed top pizza styles. We’ve done a recap for toppings.

So, what are some of the top “new” cheeses going onto those pizza styles and being covered in all those toppings?

It may seem odd the refer to the cheeses below as “new.” In this context, “new” means, “not mozzarella” or “not provolone,” for the most part. Or, if you’re in St. Louis, “not Provel.”

Ricotta
Cheddar
Fresh Mozzarella
Goat Cheese
Parmigiano Crema
Cotija Cheese
Scamorza
Vegan Cheese
Blue Cheese
Feta

Guests love personalization, and they love the opportunity to try new foods and new takes on foods they know.

Scamorza

For the most part, you’re likely familiar with all the cheeses above. However, if you’re like me, you may be unfamiliar with scamorza. If that’s the case, I looked into it for both of us.

Like mozzarella, scamorza is made from either stretched cow or water buffalo milk cheese curds. This cheese originates from Italy and comes in two styles: scamorza bianca or and scamorza affumicata. The former is white or natural, while the latter is smoked and brownish in appearance.

Further, bianca is a mild, somewhat sweet cheese. Affumicata, being smoked, delivers a more savory and, as one would expect, smoky flavor.

Vegan Cheese

If you aren’t offering vegan or plant-based cheese for your pizzas, you may not know what brands to use.

Well, don’t worry. I’ve also done some legwork into this topic.

Brands to check out are Violife, Diya, Chao, and Miyoko’s. As plant-based alternatives become more commonplace and expected by guests, I expect more commercial vegan-friendly cheeses to become available. Perhaps we’ll see some at this year’s National Restaurant Association Show.

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January 30, 2024by David Klemt David Klemt No Comments

Top Pizza Styles & Toppings by Region

Top Pizza Styles & Toppings by Region

by David Klemt

That’s one way to pick up a slice of pizza…

Now that we know the top 11 pizza styles in North America thanks to Pizza Today, let’s see how they break down by region.

Unfortunately, they don’t include regions throughout Canada in their trends report. However, the information is still incredibly valuable.

Pizza Today has put a lot of effort into their 2024 Pizza Industry Trends Report. So, make sure to click this link and check it out for yourself.

Before we jump into the regional breakdown, let’s check out which pizza toppings lead the way across the nation. As you’ll see later, while many regions follow national trends, they also deviate in notable ways.

If you read last week’s article, you already know which pizza styles dominate North America. For those of you haven’t yet read that article, click here.

That said, here are the top 20 toppings in America.

Top Toppings: Nationwide

If you operate a pizzeria or pizza is a significant focus of your business, you probably know the number one topping.

The image at the top of this article is a hint.

Per Pizza Today, these are the top 20 toppings in the US:

Pepperoni
Sausage
Mushroom
Extra Cheese
Bacon
Chicken
Onion
Red/Green Bell Pepper
Ham
Black Olives
Meatballs
Canadian Bacon
Jalapenos
Pineapple
Beef
Basil
Banana Peppers
Fresh garlic
Tomatoes
Spinach

Due to outright bias, I hope to see meatballs break into the top ten one of these days. That’s my number one topping.

Now that we’ve shared the top 20 toppings according to Pizza Today, let’s check out the regional breakdown.

The West

This region includes two subregions, Pacific and Mountain.

In alphabetical order, the Pacific states are Alaska, California, Hawaii, Oregon, and Washington. The Mountain region includes Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming.

So, if you’re in one of those 13 states, the info below is relevant to you.

Top Styles

New York Style
Traditional America
California/American Artisan
Sicilian
Neapolitan

Number three makes sense, given this region includes California. Otherwise, the West follows the top five pizza styles in the US rather closely.

Top Toppings

Pepperoni
Sausage
Mushroom
Chicken
Bacon
Extra cheese
Black Olives
Onion
Jalapenos
Pineapple

In the West, the top three toppings are the same as the rest of the nation. However, chicken and bacon overtake extra cheese in the this region.

The South

Pizza Today divides the South into three subregions: East South Central, South Atlantic, and West South Central.

The former consists of Alabama, Kentucky, Mississippi, and Tennessee. The South Atlantic includes Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, Washington, D.C., and West Virginia. And West South Central is made up of Arkansas, Louisiana, Oklahoma, and Texas.

As you’ll see, the top five pizza styles in the South are the same as the top across the US. Further, the top five toppings in the region are also the same top five nationally. It isn’t until numbers six through ten that we encounter deviations.

Top Styles

New York Style
Traditional America
Sicilian
Deep Dish
Neapolitan

Top Toppings

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon
Onion
Chicken
Red/Green pepper
Beef
Ham

Beef is number 15 nationally, if you don’t want to scroll up and check for yourself.

The Midwest

The Midwest, per Pizza Today, is organized into two subregions. Those are East North Central and West North Central.

Illinois, Indiana, Michigan, Ohio, and Wisconsin make up the former. Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota are the states in the latter subregion.

Top Styles

As a proud Midwesterner, I’m happy to report that the region didn’t disappoint when it comes to the region’s top pizza styles.

Traditional America
Chicago Thin
New York Style
Deep Dish
Detroit

The argument that Chicago Thin (a.k.a. Chicago Tavern) rather than Deep Dish is the true Chicago pizza style is bolstered with these rankings.

Top Toppings

Pizza Today shares only five toppings for this region. Notably, extra cheese doesn’t make it in, kicked out by onion.

Pepperoni
Sausage
Mushroom
Bacon
Onion

The Northeast

The Middle Atlantic and New England are the two subregions of the Northeast.

For their report, Pizza Today identifies New Jersey, New York, and Pennsylvania as the three Middle Atlantic states. New England is Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

Top Style

Number five, given where it was reportedly created, isn’t a surprise.

In fact, the whole list makes sense:

New York Style
Sicilian
Traditional America
Neapolitan
Grandma

It’s also not a surprise that Deep Dish doesn’t make it into the Northeast’s top five pizza styles.

Top Toppings

Further, the top five of ten top toppings in the Northeast are the same nationally.

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon
Chicken
Onion
Red/Green pepper
Meatballs
Banana Peppers

However, as you can see, meatballs (my favorite) and banana peppers break into the top ten in this region.

Takeaways

Obviously, there are more than just 20 toppings finding their way onto pizzas in the US. Pizza Today reports that birria, fig jam, hot honey, pasilla peppers, and pickled vegetables have earned their way onto menus in at least the past 12 months.

And when it comes the top 20 toppings, there’s nuance. For example, there are multiple styles of pepperoni and preparation, and the same holds true for sausage.

All this is to say the following: A blend of popular, traditional toppings along with the unexpected and new is likely a winning combination. This can include exotic ingredients, plant-based analogs, and international herbs and spices.

Remember, it’s pizza; it’s supposed to tempting and fun.

Image: Maksim Goncharenok on Pexels

Moth Margarita canned cocktails stacked on a black, wood table

January 8, 2024by David Klemt David Klemt No Comments

Can It? NA Canned Cocktail Performance

Can It? Zero-proof Canned Cocktail Performance

by David Klemt

Veylinx, a behavioral research platform trusted by some of the world’s biggest brands, has turned their attention alcohol-free canned cocktails for a recent study.

They’ve researched demand for non-alcohol before. In fact, you can find our analysis of their 2022 study here. We’ve also covered their look into the effectiveness of Super Bowl ads.

For their latest study, consumer demand for non-alcoholic canned cocktails, Veylinx showed how seriously they take research and methodology.

Conducted between November and December of 2023, the platform created a fictional canned cocktail brand, Elixir. This was done to account for brand bias.

Further, the “brand” produced two benchmark products—alcohol and alcohol-free—and four variations. These non-alcoholic variants offered four different benefits: CBD, mood boost, zero-calorie, and natural detox.

All participants were 21 or older:

21 to 25
26 to 35
36 to 45
46 to 55
56 to 65
Older than 65

Half of the study identified as male, and the other half as female. Most, 73 percent, were alcohol drinkers, while 27 percent were not.

For the study, Veylinx had each participant, 410 in total, bid on the six Elixir products with their own money. The bidding took place in randomized, sequential auction.

After the auction, the participants completed a questionnaire. The following is a sample question:

“What would be the main reasons for you NOT to buy non-alcoholic beverages? Please select all that apply.”

Possible answers to that question were: Limited availability, Limited variety, Flavor, and/or Other.

With methodology explained, let’s check out the results.

Canned Cocktails by the Numbers

While demand for non-alcohol canned cocktails appears to be growing, their counterparts remain most popular.

Per Veylinx, demand for Elixir’s alcoholic canned cocktails surged by 20 percent in their study. In comparison, average demand for the fictional brand’s non-alcoholic benchmark and variants canned cocktails increased by four percent.

Further, the full-proof and zero-proof CBD products garnered the most interest. The alcoholic version saw an uplift of seven percent, and CBD saw a three-percent uplift. Consumers showed the least interest in non-alcohol, zero-calorie variants.

Comparing 2022 to 2023, demand for “standard” alcohol-free canned cocktails is up 14 percent. This is followed by the CBD variant with four-percent growth in consumer demand. Next, non-alcoholic canned cocktails with a “mood-boosting” benefit, which grew by two percent. Natural detox saw an increase in demand of just one percent. And consumer demand for zero-calorie, zero-alcohol canned cocktails fell by one percent.

So, today’s consumer, at least according to research conducted by Veylinx, is most interested in alcoholic canned cocktails. Still, there’s growing interest in alcohol-free canned cocktails, something for operators to keep in mind.

Changes in Behavior

Speaking of interest in zero-proof, Veylinx uncovered some other interesting information.

In 2022, around 56 percent of consumers expressed interest reducing their alcohol consumption. That number fell by 18 percent to 38 percent in 2023. That’s still a significant percentage of consumers looking to make a big change in their lives.

Forty-one percent of consumers aged 21 to 35 are trying to reduce their alcohol intake. That number drops slightly to 36 percent for those aged 36 and older.

Veylinx also found that half of consumers would drink less alcohol if one simple change took place. All it would take is better-quality, non-alcohol versions at better prices to hit the market.

In fact, per Veylinx, consumers cited flavor and price as the two top influences on their decision to consume zero-proof canned cocktails. So far, energy drinks are the go-to for most consumers trying to drink less alcohol.

If they’re smart, brands with an interest in producing successful non-alcohol canned cocktails will work to improve costs, flavors, and health benefits, if this Veylinx study is taken to heart.

To review this study in its entirety yourself, click here. The press release for the study is below.

The Year of Canned Cocktails: Consumer Demand Increases for Non-Alcholic and Alcoholic Variations

NEW YORK, December 20, 2023 — According to a new, year-over-year study from behavioral research platform Veylinx, consumer demand is increasing for both non-alcoholic and alcoholic canned cocktails. Using Veylinx’s proprietary methodology—which measures actual demand rather than intent— the study found that demand for non-alcoholic canned cocktails grew by 4%, while demand for alcoholic canned cocktails surged by 20% over last year.

While interest remains strong for non-alcoholic alternatives, the percentage of people trying to reduce their alcohol consumption fell by 18%, to 38%. This decline from 2022 could lead to lower participation in abstinence events like Dry January.

Half of respondents claimed they would drink less alcohol if better non-alcoholic alternatives were available, showing opportunity for yet more innovation in the beverage sector. Those looking to reduce their alcohol consumption are 50% more interested in non-alcoholic cocktails.

In 2022, “Never tried before,” was the top reason consumers gave for not buying canned non-alcoholic beverages. That is no longer the case in 2023, suggesting that non-alcoholic canned cocktails increased their market penetration over the last year. Flavor and price are now the primary reasons people don’t buy non-alcoholic cocktails.

“Even with fewer people trying to reduce their alcohol consumption, demand for non-alcoholic canned cocktails continues to grow,” said Veylinx founder and CEO Anouar El Haji. “Drinkers and non-drinkers alike are receptive to ready-to-drink alternatives that are better for their health and wallets.”

The study also measured demand for non-alcoholic cocktails enhanced with functional benefits like mood boosters, detoxifiers and CBD. Demand for the standard non-alcoholic version increased 14% from last year, while the enhanced variations increased only slightly and the zero-calorie version fell by 1%. This suggests consumers might be losing interest in what they perceive as marketing gimmicks. The CBD version saw a 4% increase in demand, remaining the most popular non-alcoholic variation.

Additional key findings:

The optimal price for non-alcoholic canned cocktails that maximizes revenue for brands is $12 for a four-pack
The brands consumers have tried the most are: 1) Mocktail Club, 2) Wild Tonic, 3) Spiritless, 4) DRY, and 5) Hella Cocktail Co
44% of people expressed support for an additional 10% tax on alcohol as a public health measure for reducing consumption
For those aiming to drink less alcohol by replacing it with other beverages, energy drinks experienced the greatest increase in popularity
Physical Health and Cost are the two most popular reasons for reducing alcohol consumption
Grocery stores are the most popular place to buy non-alcoholic canned cocktails
Flavor options have the most influence on which brand consumers choose
A lower price would convince 20% of consumers to buy more non-alcoholic cocktails

To download more detailed results from the 2023 Non-Alcoholic Canned Cocktail study or for more information about Veylinx, visit https://veylinx.com/canned-cocktails.

About the research

Unlike typical surveys where consumers are simply asked about their preferences, Veylinx uses behavioral research to reveal how much consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions about their reasons to buy or not to buy. The research was conducted in November and December 2023 among U.S. consumers ages 21 and over. It is a follow-up to a similar study Veylinx conducted in October 2022. The 2022 study can be found at https://info.veylinx.com/non-alcoholic-cocktails

Image: Ambitious Studio* – Rick Barrett on Unsplash

November 7, 2023by David Klemt David Klemt No Comments

DoorDash Names 2023 Global F&B Trends

DoorDash Names 2023 Global F&B Trends

by David Klemt

As we get close to winding down 2023 and welcoming 2024, DoorDash takes a shot at identifying the global F&B trends to watch.

This is an exciting and insightful time of year for our industry. In the last quarter, different sources start publishing their data-backed F&B predictions for the year ahead.

Take, for example, Technomic’s Global, Canadian, and American trend predictions for 2023. Oh, and don’t worry—we’ll be taking a look at their predictions for 2024 soon.

Today, however, we’re checking in on DoorDash. Admittedly, I’m not the biggest fan of third-party delivery. It’s no secret I favor direct delivery for operators.

There’s no denying, though, that third-party delivery companies have access to valuable data. From the top food and drink orders to the dayparts seeing the most delivery and pickup order growth, they can help operators see shifts in consumer behavior.

So, I’m happy to take a look at what food trends DoorDash thinks operators should watch moving forward.

Before we jump in, I’m happy that DoorDash includes this cautionary statement in their article: “Finally, always consider whether or not a trend actually fits in at your restaurant.”

At KRG Hospitality, we couldn’t agree more. Jumping on every trend, as tempting as that may be, is unwise and can do harm than good. So, while the lists below identify trends that are gaining traction currently, operators need to be discerning.

Food Trends

Let’s start with a trend multiple sources identified toward the end of 2022 that appears to still be on an upward trajectory: pickles.

Seriously, it seems that people can’t get enough pickles. Pickle pizza appears to the current darling when it comes to this food trend. Speaking of pizza, DoorDash sees square pizzas as a trend to watch.

Another trend that multiple sources have been keeping tabs on is chimichurri. According to DoorDash, this condiment is finding its way onto all manner of food item.

Other food trends that operators should be aware of are bowls (deconstruct a sandwich, burrito, etc., and you have a bowl); oyster mushrooms subbing in for meat; higher-end tinned fish; and gluten-free menu options.

To be honest, I don’t think that last one is just a trend. At this point, offering gluten-free options or entire menus is mainstream.

Now, there are two more food trends I want to address separately. One, smaller menus. This is a trend I believe most operators can and should get behind. Shrinking a menu can result in lower food and labor costs, and a happier team. Making a menu smaller can also make a restaurant more nimble and engaging as LTOs may have more impact.

And then there’s aburi sushi, which is presented after the top of the fish is torched. This gives sushi a smoky flavor and brings in a different texture element.

To be fair, I’ve expected this to take off for the past several years. Now, it appears it’s taking hold and moving from fad to trend.

TikTok Trends

Yes, we have to talk about TikTok. There’s no question that the platform is a trend-producing powerhouse.

Clearly, TikTok has an influence on food trends. If you want to know what your younger guests want to try, check TikTok. The same goes for your guests who are highly engaged with social media influencers.

Below, the trends DoorDash sees taking hold.

Chopped sandwiches. Do you have sandwiches on your menu? Can your guests watch as your team makes them? You may want to create a chopped version of your signature or best-selling sandwich.
Pasta salad summer. Apparently, this summer was the Summer of Pasta Salad. Specifically, pasta salads made with fresh ingredients, and made without ingredients like mayonnaise.
Cottage cheese. According to DoorDash, TikTokers are putting cottage cheese in scrambled eggs, adding it to pasta sauce, and using it to make cheese toasts. I’ve personally tried the TikTok trend of using cottage cheese to make nacho cheese sauce.

One word of caution: TikTok trends come and go in the blink of an eye. So, operators need to hop on trends that work with their restaurant or bar before they’re already out of favor. It’s a daunting task.

To review this DoorDash report in its entirety, including beverage and grocery trends, follow this link.

Image: Ivan Samkov on Pexels

July 8, 2022by David Klemt David Klemt No Comments

Hotels, Guest Data and Guest Expectations

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

We sit down with Austen Asadorian, vice president of sales at SevenRooms, to chat about pent-up demand for travel.

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

Hi Austen, thank you for taking the time to speak with us. Can you tell us a little about yourself and your role at SevenRooms?

Thanks, David! My name is Austen Asadorian and I’m the Vice President of Sales at SevenRooms. I first started my career in hospitality early in high school, getting a job at a local restaurant in New Jersey, learning everything from protein fabrication to catering and dealing with daily customers, even managing events. I continued working in hospitality through college, while going to the Culinary Institute of America for a degree in hospitality management, and ultimately, landed at Hillstone Restaurant Group where I ran back of house operations as well as the company’s Manager Training Program. Before joining SevenRooms, I worked as Peloton’s Director of Sales, leading their go-to-market strategy for retail growth and expansion from 2014-2017.

Today, I support SevenRooms’ global expansion efforts to accelerate our goal of being the best-in-class solution for hospitality operators around the world. Having previous experience in the hospitality industry, I joined SevenRooms because I was hyper aware of the pain points in the industry surrounding technology and the need for better guest management after having lived it day-to-day for several years. More importantly, I believe in SevenRooms’ vision and have a true passion for helping hospitality businesses, big and small, drive revenue, and create loyal guests for life.

Let’s talk hotels. What does the hotel industry look like two years after (or into) the Coronavirus pandemic?

When the pandemic struck, travel came to a complete halt and hotel occupancy in the US fell from 70% in March 2019 to less than 25% in March 2020—rooms were empty. Now, as the world is back to what we can consider a new “normal,” we’re seeing an extreme surge in travel and hotels are busier than ever.

However, what guests expect from hotels experience-wise has changed and they demand more. They’re making up for lost time and they want to make it count. Coming out of the pandemic, hotel operators are taking a harder look at their entire tech stack. It’s no longer optional to have a tech stack that is fully integrated from top to bottom across their operations—it’s a must-have—and technology providers are adapting to meet those needs. Additionally, operators have put a strong emphasis on the importance of ownership over their guest data. Both trends have positioned SevenRooms incredibly well within the hotel sector, as this has been our business philosophy from day one.

How can hotel operators and managers live up to these high expectations?

The simple answer is by taking advantage of technology solutions into their everyday practices and processes. These tech solutions can be anything from a QR code for mobile order and pay, allowing guests to order food and drink from anywhere on the property without ever needing a server to approach them, to an integrated customer relationship management (CRM) platform that speaks to and pulls data from their F&B CRM, easily sharing that information across teams at the hotel. For example, passing information along to a guest services team to ensure that in-room amenities don’t include nuts if a guest has a peanut allergy.

Operators and managers should also make sure they’re utilizing loyalty programs. According to a recent SevenRooms survey of American consumers, 44% say that loyalty programs play a part in their hotel choice and there are certain incentives that will bring them back.

For example, some want loyalty points to enjoy on property restaurants and bars, whereas others want a personal greeting when they check in, or a complimentary glass of champagne waiting for them when they get to their room.

Technology and loyalty programs both play into an exceptional experience and it’s important for operators to use both to create the total package.

You mentioned collecting guest data. Can you tell us a little bit more about why that is so important?

When we talk about data and hotels, we’re talking about using it to power a one-of-a-kind unique experience. We don’t mean taking or selling personal information, and that’s an important distinction.

The data we’re collecting for operators centers around a guest’s profile—who they are and what they like. This can be anything from their dietary preferences to their favorite table in the hotel restaurant’s dining room, to what dessert they order most often when they visit.

By having this data, operators can build a direct relationship with these guests and, in turn, build an incredible experience that keeps them coming back. For example, if a guest stays at a specific hotel on their vacation and takes full advantage of the pool cabanas, the data collected on those visits can then be used to retarget them with a special marketing promotion or offer to visit their local hotel property for a staycation, complete with a discount on a cabana day rental.

Creating these unique, personalized experiences not only increases revenue for operators, but also drives loyalty, as a loyal guest is more important than a one-time guest.

About Austen

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: Antonio Janeski