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November 29, 2023by David Klemt David Klemt No Comments

SevenRooms Unveils 3 Powerful New Tools

SevenRooms Unveils Three Powerful New Tools

by David Klemt

SevenRooms clients will have access to three new tools that will further enhance guest engagement, increase loyalty, and boost relationships with VIPs.

Each of these consumer-facing solutions is launching in time for the holiday season.

First up, 7R Priority Alerts. This tool helps operators manage their waitlists and generate revenue. We all know that even restaurants that require reservation fees end up with no-shows. Some platforms are capable of attempting to fill those available reservation slots. However, there’s not normally much control over who receives availability alerts.

Now, operators will have the power to target specific guests through automated reservation notifications. As 7R explains this tool, operators will be able to identify, label, and reward their most-valuable guests. These guests will feel like VIPs, increasing their loyalty, visits, and spends.

Then there’s Private Line. This is my favorite of the three new tools. Operators who implement this tool will be able to share an exclusive messaging line. So, a VIP such as a big spender, frequent diner, a member of the press, or an influencer can reach out to the team directly.

With Private Line, a VIP can inquire about a last-second reservation or make a special request. Again, this is the type of feature that increases loyalty and visit frequency.

Most people find new restaurants through friend, family, or coworker referrals. That got the 7R team thinking: How can restaurants reward people who refer new guests?

Enter: Word-of-Mouth Referrals, the third new tool on this list.

Pushed to guests via automated email marketing campaigns and post-visit surveys, a custom referral link is created for every diner. The guests then share that link, new guests make reservations, and the cycle continues. Operators, of course, reward guests for these referrals through any number of means, such as redeemable loyalty program points, comped F&B items, etc.

To learn more, please read the 7R press release about Priority Alerts, Private Line, and Word-of-Mouth Referrals below.

NEW GUEST-FACING SEVENROOMS FEATURES MAKE IT EASIER FOR OPERATORS TO REWARD LOYAL GUESTS AND PERSONALIZE COMMUNICATION

Priority Alerts, Private Line, and Word-of-Mouth Referrals redefine guest engagement and communication between restaurants and their most important guests

NEW YORK – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced the launch of Priority Alerts, Private Line, and Word-of-Mouth Referrals, three new consumer-facing features that help operators connect with and reward their most loyal guests. With guests expecting more from their dining experiences than ever before, these solutions were purpose-built to solve real pain points for hospitality operators. These include alerting a specific diner about reservation availability, providing new ways for guests to get in touch and making it easier for guests to recommend their favorite restaurants to friends and family.

Priority Alerts helps operators control who they send automated reservation availability notifications to so they can prioritize their most valuable guests. In comparison to other reservation notification systems, restaurants choose who receives a Priority Alert first, not just deciding between a blast to their entire waitlist or to an exclusive subset of credit card holders. Instead, they can prioritize the guests that matter most to their business – whether that’s a VIP, loyalty member, frequent or recent diner, local, high spender, or someone else. This helps restaurants reward their most valuable guests to get them through their doors more often.

Private Line was created to give important guests an easier, faster way to get in touch with their favorite restaurants. With Private Line, restaurants can now offer their high-value guests – like VIPs, press, frequent diners and top spenders – an exclusive messaging line that can be used to instantly get in touch with their team. Whether a guest is looking for a last-minute reservation, has a special request, needs to add a friend to a booking or another ask, restaurants no longer miss out on opportunities to wow the guests that matter most. All conversations are centralized within the SevenRooms mobile app, making it easy for staff to book a table, add in requests or make other changes with just a few clicks.

Word-of-Mouth Referrals, the third consumer-facing feature launching with our fall release, gives restaurants the ability to motivate, track and reward loyal guests for referring new diners. According to recent data, 61 percent of diners discover new restaurants from friends, family and co-workers. Yet, without an easy way to capture this untapped demand, restaurants have historically left dollars on the table. Word-of-Mouth Referrals automatically creates personal referral links for every diner – shared through post-meal surveys and automated email campaigns – making it simple for guests to share with their networks and be rewarded with perks they’ll want to earn and use. Restaurants can tap into this high-value marketing channel for their business, rewarding loyalty and ensuring exceptional experiences for newcomers and regulars that translate into more sales and profits.

“At SevenRooms, our focus from day one has been on building innovations that help operators increase profitability, drive sales and improve the experiences of their guests. These three new features, all integrated into the SevenRooms platform, give operators new ways to connect and communicate with their guests – helping them evolve to meet the needs of guests who know what they want, how they want it, when they want it,” said Angela DeFranco, VP of Product at SevenRooms. “In an increasingly competitive landscape where consumers have more choice than ever before in where they choose to take their business, we’re dedicated to finding new ways for restaurants to connect and market more effectively to their guests with tools that not only make them more money, but help them execute on experiences that guests remember and recommend. Restaurant marketing is no longer one-size-fits-all, and we are redefining the role that technology can play in creating truly personalized guest engagement and marketing touchpoints at every stage of the guest journey.”

“The plan was to always move to SevenRooms because the technology was far superior, the potential for integration with our point of sale system was a lot stronger and owning the data was a huge deal,” said Kim McDiarmid, Partner at Liquid and Larder. “SevenRooms’ Priority Alerts has been a dream for us. Compared to our previous platform, it’s a lot more customizable and fully automated so it does the heavy lifting for us. We’re going to use it to give priority to guests who match criteria such as those who dine with us regularly, and with that, it will work even harder for us.”

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

About SevenRooms

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

Image: Carson Masterson on Unsplash

Aerial view of Chicago skyline and Lake Michigan coastline

November 27, 2023by David Klemt David Klemt No Comments

Indies: Which Cities Lead the Way?

Independents: Which Cities Lead the Way?

by David Klemt

The majority of the top ten indie restaurants on the Restaurant Business Top 100 Independents ranking are in two American cities.

Those two cities are Miami Beach, Florida, and Chicago, Illinois. While Miami Beach claims two spots among the top three, Chicago has the most restaurants in the top ten. However, the top three indies are all in Florida, with number two being the Boathouse in Orlando.

So, Florida and Illinois are home to nearly the entire top ten of Restaurant Business’ Top 100 Independents. That’s impressive.

What’s even more impressive is the combined annual sales figure of the top ten: $333.4 million. Now, let’s separate Miami Beach. The three indies in the Florida city generated nearly $114 million themselves. Chicago’s four indies among the top ten generated $118 million.

Taken together, the top 100 indies generated $1.95 billion.

All told, 14 of the top 100 indies as ranked by Restaurant Business are in Chicago. Five are in Miami Beach, and five are in Miami. Before I move on, no, Miami Beach and Miami aren’t the same city; they’re entirely separate municipalities. In total, 16 restaurants on this list are in Florida.

New York boasts 15 restaurants on the list. Four are in San Francisco, and just two are in Los Angeles. However, California claims 15 restaurants in total.

However, as you’ll see below, this Restaurant Business list consists of more than just the usual big cities.

Restaurant Business Top 100 Independents: The Top Ten

Below, the top ten independent restaurants, per Restaurant Business.

Joe’s Stone Crab Restaurant (Miami Beach, Florida)
The Boathouse (Orlando, Florida)
Komodo Miami (Miami Beach, Florida)
Maple & Ash Chicago (Chicago, Illinois)
Mila (Miami Beach, Florida)
Sierra Mar (Big Sur, California)
Gibsons Bar & Steakhouse (Chicago, Illinois)
Gibsons Italia (Chicago, Illinois)
Alexxa’s (Las Vegas, Nevada)
Alinea (Chicago, Illinois)

Alinea commands the highest average check among the top ten, at $650. The most reasonable is the Boathouse, averaging $45.

Interestingly—and perhaps logically—these two restaurants find themselves in the inverse when it comes to annual meals served. The Boathouse serves the most: just over one million. And Alinea, among the top ten indies, serves the least: nearly 45,700.

Notably, when we move on to numbers 11 to 20, Las Vegas, Miami, and New York account for six restaurants.

However, it’s also notable that it’s not just the usual big cities with restaurants on this list. Smaller cities, such as Frankenmuth in Michigan, are home to some of America’s top-performing independent restaurants.

For some context, Frankenmuth has a population of less than 5,200 people. However, Michigan’s “Little Bavaria” draws three million tourists per year. So, it’s no surprise that Zehnder’s Restaurant generates more than $19 million in annual sales.

Restaurant Business Top 100 Independents: The Bottom Ten

Just for fun, let’s take a look at the bottom ten on the Restaurant Business list.

Siena Tavern (Chicago, Illinois)
Fleet Landing Restaurant & Bar (Charleston, South Carolina)
Electric Lemon NY (New York, New York)
Bar Siena (Chicago, Illinois)
El Vez (Philadelphia, Pennsylvania)
Mi Vida (Washington, DC)
Scoma’s Restaurant (San Francisco, California)
Mexican Sugar (Las Colinas, Texas)
The Shed Barbecue & Blues Joint (Ocean Springs, Mississippi)
Chef Adrianne’s Vineyard Restaurant and Bar (Miami, Florida)

Adding context, these ten restaurants have generated $114.6 million in annual sales. That’s roughly the same amount of annual sales as the three restaurants in Miami Beach in the top ten.

Each of the “bottom” ten has annual sales ranging from $11.2 million to $11.9 million.

Takeaway

We all know the following axiom: “Location, location, location.”

It’s tempting to assume this means a business must be in a major city. That’s a woeful oversimplification. Myriad considerations must be made when looking at a market, whether the population is in the hundreds or millions. Assuming a concept will drive traffic and generate millions of dollars solely because it’s in a major city is foolish.

Let’s take another look at Zehnder’s in Frankenmuth. The restaurant, number 47 on the list, generated $19.2 million in annual sales. Moreover, it’s in a town with a population under 5,200.

Number 46 generated $19.3 million and is in (on?) Waimea in Hawaii. Number 48 boasted annual sales of $19 million and is in a city with a population of almost 2.7 million: Chicago.

Clearly, tourism a key contributing factor to the success of Zehnder’s. Not population, not the demographics of the permanent residents, not big-city status.

So, what about check average? Alinea, number ten, has the highest at $650 and generated $28.3 million in sales. However, the Spot, number 85, has an average check of $18 and generated $12.3 million.

The success of any restaurant, bar, nightlife or eatertainment concept doesn’t come down to a single element. What sets a concept apart is a deep understanding of a specific market, the surrounding markets, “sister” sites and competitors, guest desires and expectations, and so much more.

How does an operator come to understand their operation and their market? A feasibility study to start. Then comes a thorough, coherent concept plan and a complete business plan, and an obsession with data.

Operators who put in the work to attain strategic clarity have the potential to earn their way onto the Top 100 Independents list.

Image: Cameron Casey on Pexels

Person looking at restaurants on a map on their phone

November 24, 2023by David Klemt David Klemt No Comments

Two New Review Platforms You Need to Know

Two New Review Platforms You Need to Know

by David Klemt

Operators should be aware of two new review platforms that will help people discover their restaurant, bar, nightclub, or eatertainment venue.

At this point, we’re all aware of the mainstream review sites. Google, Yelp, OpenTable, Tripadvisor… Whether viewed as a helpful discovery tool or nuisance, each is a well-known player.

Well, there are new platforms on the scene. Importantly, each one is putting their own stamp on how people review venues and discover new experiences.

For example, I wrote about a new platform that rejects negative reviews a few weeks ago. It’s Good “believe[s] a restaurant rec from 1 trusted friend is more valuable than recs from 10,000 strangers.”

The founders, including Kevin Auerbach (former Apple), Meghan Raab (former Snap), director and photographer Mike Rosenthal, and songwriter and performer John Legend, have also eschewed the standard star rating.

So, that’s one modern-day take on the review platform. Now, two others.

Atmosfy

By now, most people are aware that video content outperforms static photography on social media. In other words, people engage more with video.

That’s not to say that static photography is obsolete. Rather, when it comes to discovery, video appears to be king at the moment.

Enter: Atmosfy.

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A post shared by Atmosfy | Discover With Video (@atmosfyapp)

This platform is all about video reviews. In fact, their website reads, “A video is worth a thousand pictures.” Restaurant, bar, nightlife, and eatertainment operators should see the value in users showing off their experiences via video.

In addition, users get access to a personal map. They can bookmark places they’ve been and want to go, and share their experiences so others can discover them.

And with $12 million in seed funding from Redpoint Ventures and other venture capital firms, operators can be certain this is no flash in the pan. In fact, Atmosfy supports in excess of one million businesses in over 10,000 cities in more than 150 countries.

Recs

First, the T-rex mascot of this platform is pretty cool.

Second, Recs takes a similar approach to It’s Good. However, the founders, Jesse Berns and Sean Conrad, have put their own spin on review platforms.

Like It’s Good, Recs sees far more value in recommendations from friends than strangers. Also, there’s no star rating system, nor will users find negative reviews.

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A post shared by Recs (@getrecs)

Another interesting detail: Users aren’t able to leave anonymous reviews. This is because Recs is built for recommendations among friends. Were a user to be anonymous, they wouldn’t be discoverable to friends, and therefore they’d be leaving recommendations to…nobody.

However, the most important element of Recs (arguably) is that users either recommend a place or they don’t.

So, in theory, if a business is blowing the guest experience, they won’t even be discoverable on Recs because nobody will be recommending it. At least to a specific core of users, that business won’t exist in their world on Recs.

As far as the Recs user experience, people save venues as “recommend” or “wanna go.” Users find their friends, share their lists, and discover new places to try by checking out their friends’ lists. A simple, straightforward way for people to eat, drink, and hang out together throughout a city.

Takeaway

Simply put, an operator needs to know how people are discovering their business. Operators need to meet guests where they are, which means online.

So, operators need to know about new platforms. When sending a post-visit survey—it doesn’t need to be lengthy—operators should ask how guests learned about their venue. This is one way to stay up to date on social media and review sites.

A comprehensive and effective marketing strategy includes review and discovery platforms. Certainly, operators ignore discovery tools at their peril.

Image: abillion on Unsplash

November 21, 2023by David Klemt David Klemt No Comments

2023 State of the Menu: Datassential

2023 State of the Menu: Datassential

by David Klemt

The annual 2023 State of the Menu by Datassential includes an interesting metric to gauge restaurant recovery: menu size by segment.

Hosts Jack Li, Mike Kostyo, and Claire Conaghan discuss a handful of topics during this webinar. Host Li touches on food-forward cities at the beginning of this presentaiton. Kostyo shares some of the most innovative menu items out there right now. And Conaghan dives deep into menu trends.

Industry professionals interested in watching this webinar on demand can register to do so here.

There are a handful of metrics people are using to measure post-pandemic restaurant recovery. Labor is, of course, receiving a lot of attention. People are also tracking traffic, average check size, revenue, and profits.

One metric Datassential is keeping tabs on is menu size per restaurant segment. Additionally, they’re tracking each segment’s top-growing food and beverage items.

Notably, however, in tracking menu size, Conaghan focuses solely on food and non-alcohol beverage items, omitting catering and alcohol.

Chains vs. Independents

Starting things off, Conaghan addresses the overall menu size trend. That is, menus are noticeably smaller in comparison to pre-pandemic sizes.

Interestingly, chain restaurants don’t appear to be in any rush to move away from this trend. In fact, Conaghan notes that chains appear to be further reducing the size of their menus. This has been the trend over the past 12 months.

According to Conaghan, fine dining also seems to be happy to shrink their menus. Menu size shrunk the most among restaurants in this segment. In comparison, quick-service menu sizes decreased the least.

However, independent restaurant operators appear to be going in the opposite direction from their chain counterparts. In contrast, indies have been growing the size of their menus the past 12 months.

Menu Size by Segment

Fast Casual

Per Conaghan, the only segment to reach pre-pandemic menu size is fast casual. In fact, this category of restaurant is often exceeding pre-pandemic items-per-menu size.

This increase in menu size is attributable to operators “leaning into” core cuisine items. For example, sandwiches, Mexican entrees, and pizza.

However, the fastest-growing food item on fast-casual menus is the chicken wing. According to Conaghan, it’s easy for operators to innovate with chicken wings.

A restaurant doesn’t have chicken wings? All they have to do is add them, starting with simple preparations. If a restaurant does have chicken wings on the menu already, innovation is as simple as adding new flavors.

As far as the fastest-growing drink for fast-casual restaurants, it’s dessert beverages.

QSR, Casual Dining, and Midscale

These three segments are “very, very close” to reaching pre-pandemic menu sizes.

As midscale operators are likely very aware, this segment tends to have the largest menus. I wouldn’t be surprised, therefore, if a number of midscale concepts review their items per menu, their costs, and decide they can perform well with slightly smaller menus moving forward.

Unsurprisingly, chicken wings are the food item growing most quickly on QSR food menus. Oh, and barbecue chicken wings are the fastest-growing food item among casual dining restaurants.

Perhaps a bit more eyebrow-raising is the fastest-growing beverage type for QSRs: energy drinks. Boba and flavored iced teas are growing fastest on casual-dining drink menus.

For midscale restaurants, dessert samplers are the fastest-growing food items. Think “dessert charcuterie” when trying to picture a dessert platter. Another way to think about the dessert sampler is a static dessert cart with small bites of each dessert on the menu.

Fine Dining

Again, this segment is the furthest from pre-pandemic menu size. And, again, operators in this category seem happy with this trend.

An interesting note Conaghan makes about this segment is what many operators are using to fill out their menus: desserts. This is, she says, an area where fine dining can differentiate itself from other concepts.

Per Conaghan, bao, applesauce, and summer squash are growing the fastest on fine-dining food menus.

Now, I may have slipped into a fever dream during this portion of the Datassential webinar. Because unless I’m mistaken, the Shirley Temple has been identified as the fastest-growing beverage in the fine-dining space.

Pricing

Okay, so this segment of the 2023 State of the Menu webinar isn’t really a recovery metric.

However, it’s interesting, and something Jack Li says about chain restaurant pricing made me chuckle.

Most Expensive vs. Least Expensive

First, some straightforward data.

The following list identifies the five most-expensive ZIP codes for chain restaurant menu pricing. Anyone who wants the full list of 15 most-expensive ZIP codes can watch the webinar.

10036 (New York, NY)
96707 (Kapolei, HI)
98902 (Yakima, WA)
96815 (Honolulu, HI)
99503 (Anchorage, AK)

It’s understandable to think this would consist entirely of New York City, Los Angeles, or San Francisco ZIPs. But when we consider what it costs operators to import food to Hawaii and Alaska. Additionally, Washington and New York are among the states with the highest minimum wage. Operators need to recover those costs somehow.

And now the five least-expensive ZIP codes:

78526 (Brownsville, TX)
75224 (Dallas, TX)
76106 (Fort Worth, TX)
31907 (Columbus, GA)
31701 (Albany, GA)

Pricing Logic

Now, on to what Li says during the webinar that makes me laugh.

Nationwide, the average price of a McDonald’s Big Mac in the US is $5.26. (A caveat: This webinar took place in October. This price may have increased or decreased by now.)

However, the lowest price for a Big Mac is $3.49 at a location in Wilburton, Oklahoma.

So, what’s the highest price, and where can one find these pricey Big Macs? Three McDonald’s locations sell the burger for $8.29. That’s nearly two-and-a-half times the lowest-priced Big Mac.

Summarizing pricing variations among chain restaurants succinctly, Li made me laugh with the following: “Store pricing often just doesn’t make sense.”

Going further, Li says Datassential shows that the more franchised a restaurant chain is, the more variances in pricing will occur.

The full webinar can be viewed here.

Image: Leonardo Luz on Pexels

November 20, 2023by David Klemt David Klemt No Comments

Datassential Ranks Food-forward Cities

Datassential Ranks America’s Most Food-forward Cities

by David Klemt

Let’s take a look at food and beverage intel platform Datassential’s ranking of the 158 most food-forward cities in America as 2023 comes to a close.

We are, in part, reviewing this list because of Wallethub’s “Best Foodie Cities in America” report. You can find our thoughts on that ranking here.

To summarize, however, Wallethub prioritizes “wallet-friendliness,” or “the best and cheapest” cities for foodies. In contrast, Datassential’s ranking is a scientific attempt to quantify the “food-forward” status of a given city.

“It’s the diversity of cuisines, the prevalence of emerging foods and flavor trends and residents’ appetite for varied menus, that make a city food forward,” writes Samantha Des Jardins, content marketing manager at Datassential.

We at KRG Hospitality are big fans of Datassential and find the company to be a credible source of industry insight. Earlier this year they tackled video versus static photography, and the flavors and menu items they predicted would be big in 2023.

To review Datassential’s ranking and download the full list for yourself, click here.

The Top 25 Food-forward Cities

Alright, I know why you’re here. Below, you’ll find the highest-ranked cities on the Datassential list.

(Note: Due to the scoring, some cities are tied in terms of overall points. Where this is the case, it has been noted.)

San Francisco, California
Los Angeles, California
Miami, Florida
Washington, DC
San Diego, California
New York, New York
Houston, Texas
Monterey, California
Las Vegas, Nevada
Austin, Texas
Sacramento, California
West Palm Beach, Florida
Atlanta, Georgia
Dallas, Texas (tie with Atlanta)
Albuquerque, New Mexico
Phoenix, Arizona
Portland, Oregon
Palm Springs, California
Seattle, Washington
Orlando, Florida
Denver, Colorado (tie with Orlando)
Honolulu, Hawaii (tie with Orlando and Denver)
Salt Lake City, Utah
Tampa, Florida
Fresno, California (tie with Tampa)

So, the top ten—the entire top 25, really—are most likely not much of a surprise. When I talk about cities as the “usual suspects” for rankings like these, I’m talking about New York, LA, San Francisco, Miami, etc.

However, not every usual suspect is among the top 25. Notably, Chicago just fails to make the cut, earning number 26 on this list. In fact, five “big cities” are absent from Datassential’s top ten: Dallas, Phoenix, San Antonio, Chicago, and Philadelphia.

Another interesting detail? Whereas Orlando holds the number-one spot on Wallethub’s list, it’s number 20 on Datassential’s ranking.

Of their respective top tens, the two lists have just five cities in common: Miami, San Francisco, San Diego, Las Vegas, and Austin.

Methodology

Since the two lists are vastly different when we contextualize what they quantify, it should come as no surprise that Datassential and Wallethub’s methodologies are likewise dissimilar.

Whereas Wallethub scored affordability, and diversity, accessibility, and quality, Datassential weighed different metrics.

For their “Most Food-forward Cities in US,” Datassential scored the following:

Race to 90;
Ethnic restaurant diversity; and
Trend-forwardness.

During Datassential’s annual State of the Menu webinar, Jack Li, executive chairman, board of directors explained each of these metrics.

Race to 90

The number different cuisine types required in a particular metro area before reaching 90 percent of restaurants.

For the curious, Miami is the most-diverse city by this metric.

Ethnic Restaurant Diversity

Datassential asks the following question to measure this metric: What is the proportion of ethnic restaurants compared to all restaurants in a metro area?

Trend-forwardness

Based on a dataset developed by Datassential which tracks a number of points, from food and drink items to flavors, keywords, and beyond.

The company continuously polls consumers by ZIP code to measure consumer knowledge of upcoming trends, then aggregates the ZIP codes to measure a metro area.

The Bottom Eleven

Why am I listing the bottom eleven rather than bottom ten? There’s a tie for number 149 among these 158 cities.

There are nearly 800 cities in the US with populations of 50,000 or more. Therefore, it’s reasonable to argue that even the bottom of this list boast respectable food scenes.

Youngstown, Ohio
Rockford, Illinois
Peoria, Illinois
Johnstown, Pennsylvania
Billings, Montana
Traverse City, Michigan
Sioux Falls, South Dakota
La Crosse, Wisconsin
Green Bay, Wisconsin
Fargo, North Dakota
Wausau, Wisconsin

In case you’re wondering, Datassential and Wallethub’s lists don’t share any bottom ten (or eleven) cities.

So, there you have it: San Francisco earns the top spot among Datassential’s food-forward cities. And Wausau earns number 158, which is still notable.

Image: Daiwei Lu on Unsplash

Daytime photo of the Toronto, Ontario, Canada, skyline

November 15, 2023by David Klemt David Klemt No Comments

Ontario Updates Employment Standards Act

Ontario Updates Employment Standards Act

by David Klemt

Yesterday, Ontario, Canada’s government tabled updates to the province’s Employment Standards Act meant largely to protect restaurant and hospitality workers.

These explicit protections are known as Bill 79, Working for Workers Four Act, 2023.

Interestingly and timely, the updates seem to be, at least in part, a direct response to technological developments.

For example, Bill 79 addresses digital payment apps and artificial intelligence. I’ll expand on that below.

These updates certainly appear to have been drawn up to protect restaurant workers specifically, and hospitality professionals overall.

An End to Unpaid Trial Shifts

One of the most significant updates addresses hours and pay.

It likely shouldn’t have to be said but, according to Ontario law, an employee must be paid for all the hours they work. This includes trial shifts.

Specifically, the new legislation expressly prohibits unpaid trial shifts.

Pooling Tips

Employers in Ontario are well within their rights to share in pooled tips. That is, if the employer is performing the same tasks as staff.

However, there’s now an update to this practice within the Employment Standards Act.

If any employer intends to share in a tip pool, they must make this clear and inform staff.

Speaking of Tips…

For the most part, digital payment platforms bring with them transaction fees. This includes fees for restaurant workers to get their tips.

“We’re seeing apps that are taking a cut every time…a worker accesses their tips, and that’s not acceptable,” says Piccini.

So, moving forward, employees who are paid tips via direct deposit will have more control. The updates to the Employment Standards Act now state that employees paid this way can choose where their tips will be deposited.

Deducting Wages

Per multiple studies, one in 20 diners has dined and dashed. Apparently, it has been common practice for some employers to deduct wages in response.

Personally, I think it’s ridiculous for any employers to pass a business loss on to their workers. That’s neither good leadership, ethical, or a healthy work culture. I’m not saying I’m surprised it happens; I’m disgusted that it still happens.

Now, the practice of penalizing employees monetarily for guests dining and dashing is prohibited specifically. Will that stop it from happening? Probably not, although perhaps it will happen much less moving forward.

This also includes language that makes it illegal to deduct pay from employees due to customer “gassing and dashing.” For anyone wondering, gas theft affected Ontario businesses to the tune of $3 million CAD in 2022.

Artificial Intelligence

Some employers, as many job hunters are aware, use artificial intelligence during the hiring process.

Now, these employers will have to disclose their use of AI in job listings. In theory, this update addresses privacy and data collection concerns.

Further, job listings will now have to include salary ranges. Also, employers are now prohibited from requiring work Canadian work experience in their job listings or on their application forms.

To review Bill 79 in its entirety, click here.

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A candy cane surrounded by red smoke in a studio

November 14, 2023by David Klemt David Klemt No Comments

Peppermint is the Latest Flavor Superstar

Peppermint is the Latest Flavor Superstar

by David Klemt

Just when you think you have a handle on seasonal flavors, along comes the latest and greatest demand from consumers: peppermint.

Perhaps it’s because pumpkin spice shows up earlier each year. Maybe it’s because that hit of frosty peppermint hits the nostalgia button.

It could be as simple as consumers thinking:

pumpkin is for fall; and
peppermint is for winter.

Regardless, it appears that people are turning their attention to peppermint.

Of course, that doesn’t mean that pumpkin and pumpkin spice are out of favor completely. A recent trip to a grocer with shelves devoid of pumpkin butter and other pumpkin spice flavors show me people are still snapping it up.

And no, it wasn’t a product shift; staff says those products are flying out the door after each restock.

Instead, I think people are just ready for the next thing. In this case, the next flavor thing. And that flavor, it seems, is peppermint.

Considering that pumpkin spice LTOs appeared in early August this year, it makes sense for many consumers to want something new. After all, they’ve had four months to indulge their pumpkin and pumpkin spice cravings. That’s a third of the year.

Peppermint on the Rise

When delving into F&B and hospitality trends I tend to look at Datassential and Technomic. Both are credible, reliable sources of information.

However, I’m turning to another source, Tastewise, to dive into pumpkin spice and peppermint. For the unfamiliar, Tastewise is an F&B insight platform that uses artificial intelligence to collect real-time consumer behavior data.

First up, pumpkin spice. According to Tastewise, the flavor is up nearly 75 percent in terms of social conversations in 2023. Additionally, four percent of restaurants in the US have pumpkin spice items on their menus. That may not sound like a lot, but that’s more than 33,000 restaurants.

Now, let’s look at peppermint. Per Tastewise, social conversations about this frosty flavor are up almost 22 percent this year. However, peppermint liqueur conversations are up just over 77 percent.

Interestingly, according to Tastewise, peppermint items are on almost eight percent of menus in the US. That’s more than 67,000 restaurants, over double the amount of pumpkin spice.

One note: peppermint is not the same as mint. While peppermint is trending (most likely due to seasonal shift), mint is down nearly 109 percent. So, not all mint flavors and items are equal. This seems particularly true at the moment.

Takeaway

Is everyone on social media, talking about food? No, of course not.

It’s important to note, though, Tastewise’s current market overview. At the time of publication, Tastewise is scanning:

8,151,698 people on social media;
57,220,294 social media posts;
937,070 restaurants;
136,278,759 dishes; and
5,878,416 recipes.

Operators can and should take industry insights with a grain of salt. Not every fad, trend or item works for every operator and concept.

However, it’s important to know what consumers are talking about and posting to social media. Being a part of some conversations can be a boon for an operator and their bottom line.

So, if introducing a peppermint LTO (or LTOs) will appeal to an operator’s guests—because they take the time to understand them and track their menu item sales—and works with their concept authentically, they should consider becoming a part of this conversation.

Image: Shutterstock. Disclaimer: This content was generated by an Artificial Intelligence (AI) system.

Golden cocktail in Champagne flute on bar top

November 10, 2023by David Klemt David Klemt No Comments

The Pinnacle Guide Launches

New Global Bar Recognition System, the Pinnacle Guide, Launches

by David Klemt

Today’s the day that the passionate minds behind London Cocktail Week launch “the Michelin Guide” for bars, open to venues across the globe.

Open to submissions as of today, the Pinnacle Guide is open to any bar in the world. Compellingly and refreshingly, the Guide’s system intends to maximize transparency and minimize subjectivity.

Further, the process begins with the self-nomination of a venue. Truly, this is open to any bar, anywhere.

Two of the team’s founders are recent Bar Hacks podcast guests. On episode 105, Hannah Sharman-Cox and Siobhan Payne explain the Pinnacle Guide ahead of its launch today. You can listen to their episode below.

Dan Dove, owner and operator of Global Bartending, completes the Pinnacle Guide’s founder trio. Speaking of trios, Global Bartending’s areas of expertise are strategy, talent, and events.

I’m likely not the only person who has wondered why the Michelin Guide has yet to recognize bars. Now, I’m grateful they haven’t done so.

That’s not a dig at the Michelin Guide. However, the organization’s expertise is restaurants, not bars. It’s far more appropriate—and more credible—that passionate people dedicated to and enamored with bars are launching this recognition system and platform.

The Process

So, what are you in for when you nominate your bar? The process is quite straightforward.

Simply speaking, the

Front of house
Drinks program(me)
Look and feel
Staff
Operations
Community

Once someone who self-nominates their bar completes and submits their application, the anonymous review part of the process begins.

As this step’s phrasing suggests, anonymous reviewers will visit the venue. These reviewers could be industry professionals. They may be passionate, educated consumers whose opinions are valued and trusted.

Either way, they’ll have been vetted, tested, and completed the Pinnacle Guide Reviewer Training Programme.

For even more information, click this link. You’ll find a series of the Pinnacle Guide Round Table Discussions recordings that dive deep into the system as well.

Interestingly, the founders of the Pinnacle Guide believe undergoing the self-nomination process may also help operators enhance or refine their operation:

“Beyond being a measure of excellence, this transparent and detailed approach is also designed to give venues pause for thought on where they may have room for improvement, with the ambition of elevating the industry by encouraging higher standards across the globe.”

Moreover, the Pinnacle Guide doesn’t pit operator against operator, team against team. Should a bar be recognized by the Guide, they’ll be awarded at least one PIN. A single PIN identifies a bar as Excellent. Two carries the Outstanding designation, and three means a venue is Exceptional.

Receiving a PIN doesn’t mean a bar has beaten out another venue to be recognized; that operation stands on its own as one of the best in the world.

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Are You Ready?

Thousands of owners and operators—and the teams that bring their visions to life every day—deserve acknowledgement for meeting the demands this industry makes of them.

From empowering their teams and serving as the backbone of their communities to delivering world-class service and pairing unforgettable experiences with incredible, welcoming atmospheres, hospitality is chock-full of people whose daily contributions should be recognized.

So, to any operator anywhere in the world, if you believe your team has earned at least one Pinnacle Guide PIN, this is your day. However, carve out some time to truly sit with the application and consider your team and venue.

The Pinnacle Guide is a long time coming. Let’s give it the respect it deserves.

Image: Jakub Dziubak on Unsplash

Canada and the United States of America on a globe

November 6, 2023by David Klemt David Klemt No Comments

2023 DoorDash Ordering Trends

2023 DoorDash Ordering Trends: Canada & US

by David Klemt

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

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

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

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

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

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

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

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

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

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

More Similar than Different

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

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

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

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

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

Top Canadian Food Orders

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

Burgers
Fries
Pizza
Salad
Sandwiches

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

Top American Food Orders

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

French fries
Burgers
Tacos
Salad
Pizza

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

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

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

Image: Lara Jameson on Pexels

November 3, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: November 2023

5 Books to Read this Month: November 2023

by David Klemt

Our inspiring and informative November book selections will help you and your team transform your operations and F&B programming.

This month, we look at a new branding and marketing book. We also dive into agave spirits and cuisine from the Canadian Prairies.

There’s an eye-opening exploration into the topic of technology, culture, and the “alignment problem,” as well.

To review the book recommendations from October 2023, click here.

Let’s jump in!

The Restaurant Marketing Mindset: A Comprehensive Guide to Establishing Your Restaurant’s Brand, from Concept to Launch and Beyond

If you haven’t had the opportunity to hear Chip Klose speak, look into his books. His latest The Restaurant Marketing Mindset, came out in early October. As the title suggests, this book is for anyone who’s struggling with branding and marketing, or who simply wants a fresh perspective on this crucial element of operations.

From Amazon: “Restaurants boast some of the highest failure rates of any industry, yet even worse is the sheer number of concepts that struggle just to break even. In The Restaurant Marketing Mindset, Chip Klose introduces a series of mindset shifts and actionable frameworks to help owners and operators finally take control of their marketing.

With more than twenty years of operational experience—plus an MBA in food marketing—Klose has the authority, experience, and track record needed to speak confidently on the subject. Each lesson stacks one on top of the other, giving the reader a step-by-step plan to attract more diners, retain those diners, and spark word of mouth with the ones who matter most.

This book is for any chef, owner, or operator who’s ever felt overwhelmed when it comes to marketing their restaurant. Each chapter is filled with powerful insights to help you build a more profitable (and sustainable) business.”

Pick it up today!

Prairie: Seasonal, Farm-Fresh Recipes Celebrating the Canadian Prairies

This engaging cookbook features 1oo traditional and creative recipes highlighting Canadian Prairie cuisine. These seasonal, farm-to-table recipes are sure to impress your guests.

From Amazon: “No matter the season, the Prairies are all about preserving every ounce of food, so of course there’s also tons of helpful tips and tricks on reducing food waste. There’s even a Staples chapter with recipes for stocking your pantry to keep you cooking all year long. Both a love letter to Canada’s grandest provinces and an indispensable collection of recipes, Prairie is as inviting and bountiful as the region it celebrates.”

Agave Spirits: The Past, Present, and Future of Mezcals

The authors of this informative book visited eight Mexican states to learn all they could about mezcal. By extension, they learned not only about traditional production but also where this hugely popular spirits category is headed for the future.

From Amazon: “The result of the authors’ fieldwork and on-the-ground interviews with mezcaleros in eight Mexican states, Agave Spirits shows how traditional methods of mezcal production are inspiring a new generation of individuals, including women, both in and beyond the industry. And as they reach back into a rich, centuries-long history, Nabhan and Suro Pinera make clear that understanding the story behind a bottle of mezcal, more than any other drink, will not only reveal what lies ahead for the tradition―including its ability to adapt in the face of the climate crisis―but will also enrich the drinking experience for readers.”

The Alignment Problem: Machine Learning and Human Values

When we build automated systems, we’re placing a lot of trust in our expertise. And because humans are fallible, the systems we build are far from perfect.

From Amazon: “Today’s ‘machine-learning’ systems, trained by data, are so effective that we’ve invited them to see and hear for us—and to make decisions on our behalf. But alarm bells are ringing. Recent years have seen an eruption of concern as the field of machine learning advances. When the systems we attempt to teach will not, in the end, do what we want or what we expect, ethical and potentially existential risks emerge. Researchers call this the alignment problem.”

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

The world around us has changed. The food and beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? Will perhaps the restaurant, bar, and hospitality industry come out even stronger? With the right changes to the previous status quo, it is possible. There’s no question, resets are major undertakings, but a major reset will provide us with a clean start and that’s what this industry needs.

Pick up KRG Hospitality president Doug Radkey’s second book today! Click here.

Image: Mikołaj on Unsplash