Quick-service restaurant | KRG Hospitality

Canada and the United States of America on a globe

November 6, 2023by David Klemt David Klemt No Comments

2023 DoorDash Ordering Trends

2023 DoorDash Ordering Trends: Canada & US

by David Klemt

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

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

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

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

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

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

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

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

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

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

More Similar than Different

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

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

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

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

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

Top Canadian Food Orders

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

Burgers
Fries
Pizza
Salad
Sandwiches

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

Top American Food Orders

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

French fries
Burgers
Tacos
Salad
Pizza

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

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

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

Image: Lara Jameson on Pexels

Kentucky Fried Chicken packaged for delivery or pickup

October 31, 2023by David Klemt David Klemt No Comments

2023 Cravings Report: “The Most” Orders

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

by David Klemt

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

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

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

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

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

The Most…Ordered Items

French fries
Garlic naan
Pad Thai
Miso soup
California roll

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

The Most…Popular Combos

Burrito bowl + cheese
French fries + salt
Chicken sandwich + shredded lettuce
Cheeseburger + mustard
Wings + ranch

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

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

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

The Most…Surprising Combos

Steak + jelly
Cottage cheese + mustard
Condensed milk + avocado
Seaweed + pasta sauce
Butter + pickled onions

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

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

The Most…Popular Requests

No onions
Dressing on the side
Ranch
Extra soy sauce
Spicy
Sauce on the side
No lettuce
No jalapenos
Extra gravy
No slaw

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

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

The Most…Popular Food and Alcohol Combos

Ribeye + Vodka
Cheeseburger + Frozen Margarita
Chicken + Frozen Piña Colada
Lobster tail + Apple whiskey
Tamales + Daiquiris

Last year’s report reveals the following combos:

Steak + Margaritas
Pizza + White Claw
Burritos + Margaritas
Chicken + Sangria
Wings + Beer

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

Image: Nik on Unsplash

October 27, 2023by David Klemt David Klemt No Comments

Do You Need a Restaurant Chatbot?

Do You Need a Restaurant Chatbot?

by David Klemt

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

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

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

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

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

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

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

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

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

Text Bots

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

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

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

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

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

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

Voice Bots

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

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

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

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

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

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

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

Takeaway

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

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

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

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

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

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

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

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

Image: Cash Macanaya on Unsplash

"Just be nice" sign on wall with graffiti

October 25, 2023by David Klemt David Klemt No Comments

New Review Platform Rejects Negativity

It’s Good: New Review Platform Rejects Negativity

by David Klemt

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

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

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

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

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

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

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

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

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

The User Experience

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

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

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

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

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

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

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

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

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

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

To get your name on the waitlist, click here.

Image: A A on Unsplash

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

October 16, 2023by David Klemt David Klemt No Comments

Chicago to Phase Out the Tip Credit

Chicago to Phase Out the Tip Credit

by David Klemt

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

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

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

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

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

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

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

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

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

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

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

A Compromise

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

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

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

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

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

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

The Future

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

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

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

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

Image: Trace Hudson via Pexels

October 11, 2023by David Klemt David Klemt No Comments

Brand Love: BrandVue’s 2023 Rankings

Brand Love: BrandVue’s 2023 Rankings

by David Klemt

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

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

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

Download the full report here.

Top Restaurant in Each Category

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

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

Other Categories

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

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

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

Caviar
DoorDash
UberEats

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

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

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

Top 26 Restaurant Brands

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

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

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

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

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

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

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

Image: Joshua Golde on Unsplash

Closeup view of buttons on vintage, antique cash register

September 28, 2023by David Klemt David Klemt No Comments

SevenRooms Reveals Revenue Management Tool

SevenRooms Reveals Revenue Management Tool

by David Klemt

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

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

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

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

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

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

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

Growth Recap

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

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

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

SEVENROOMS LAUNCHES REVENUE MANAGEMENT TO HELP OPERATORS INCREASE SALES & PROFITABILITY

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

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

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

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

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

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

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

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

About SevenRooms

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

Image: Erik Mclean via Pexels

Tray with In N Out burgers and French fries

September 18, 2023by David Klemt David Klemt No Comments

FAST Act Fight Appears to be Over

FAST Act Fight Appears to be Over

by David Klemt

Well, that was fast: If recent reports are accurate—and it appears they are—the battle over the FAST Act has come to a close.

Rather than fight on the ballot, fast-food chain operators and labor groups have struck a deal. Per some reports, this puts a halt to a referendum battle that could have cost more than $100 million in campaign funds.

On its face, the deal is quite simple. AB 257, known as the Fast Food Accountability and Standards Recovery—or FAST Act—is dead. That is, dead save for one provision: the creation of the Fast Food Council will move forward.

The council will have a total of eleven members. Nine will have the power to vote, two will be non-voting members. The breakdown will be as follows:

two representatives of the fast-food restaurant industry (2);
two franchisees or restaurant owners (2);
two restaurant employees (2);
two advocates for fast-food restaurant employees (2);
member of the public who is not affiliated with either side (1, will serve as chair); and
members from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development (2, non-voting)

Their first meeting is on the schedule for March 15.

In exchange, fast-food workers will see the minimum wage bump up to $20 per hour should they be in the employ of a fast-food chain with more than 60 locations throughout the US. That pay rise will come in April 2024.

When it comes to further pay rises, the council has two options:

An annual wage increase of 3.5 percent; or
An increase based on average changes to the consumer price index each year.

As one might expect, the rise will be whichever number is lower.

What was AB 257?

To summarize, FAST would’ve done the following:

Establishes the Fast Food Council, ten members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will operate until January 1, 2029.
Defines “the characteristics of a fast food restaurant.”
Gives the Fast Food Council the authority to set “minimum fast food restaurant employment standards, including standards on wages, working conditions, and training.”
Provides the council the power to “issue, amend, and repeal any other rules and regulations, as necessary.”
Allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Click here to review the bill’s text in its entirety.

Why is this Important?

It’s entirely possible that similar bills will pop up in other states in the coming years.

If this result is anything go by, such bills may be used by QSR operators and labor groups as negotiating tactics. The most recent news regarding the FAST Act should have the attention of both operators and hospitality workers. In California alone, the pay rise is expected to affect at least 500,000 workers.

However, there is one provision of the FAST Act that workers may find less than encouraging. The deal that has been struck kills a notable provision: fast-food operators, at least in California, won’t be held legally responsible for labor violations that occur in franchise locations.

Operators in other states should keep an eye out for similar bills, as should all hospitality professionals.

Image: Kenny Eliason on Unsplash

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

August 28, 2023by David Klemt David Klemt No Comments

Pumpkin Spice Everything is Already Here

Pumpkin Spice Everything is Already Here

by David Klemt

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

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

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

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

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

Pumpkin Spice, Now a Summer Flavor?

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

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

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

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

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

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

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

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

Consumer Cravings

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

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

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

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

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

Image: Colton Sturgeon on Unsplash

Taco Bell Doritos Locos Taco and sauce packet

August 11, 2023by David Klemt David Klemt No Comments

Taco Bell Celebrates Taco Tuesday Win

Taco Bell Celebrates Taco Tuesday Win

by David Klemt

Taco Bell, fresh off their victory in petitioning for the cancellation of the “Taco Tuesday” mark, will open a $5 million taco tab on September 12.

There’s no arguing that over at least the past few years Taco Bell has become the master of LTOs and attention-grabbing, loyalty-strengthening, and headline-generating promotions.

This campaign further solidifies the brand’s status as king of the fast-food campaigns.

“Taco T**sday” to “Taco Tuesday”

It’s highly unlikely that consumers and operators alike are unaware of the company’s “Taco T**sday” ads. The campaign, while playful, put a spotlight on the fact that, until recently, “Taco Tuesday” was a registered trademark.

Rather than spend millions of dollars to fight Taco Bell, Taco John’s, who previously had the rights to the mark, opted to relinquish the rights to the mark. Taco Bell’s argument was that nobody should be permitted to mark a common phrase.

“We’ve always prided ourselves on being the home of Taco Tuesday, but paying millions of dollars to lawyers to defend our mark just doesn’t feel like the right thing to do,” said Jim Creel, Taco John’s CEO. “As we’ve said before, we’re lovers, not fighters, at Taco John’s. So in that spirit, we have decided to begin sharing Taco Tuesday with a pledge to contribute $100 per location in our system to restaurant employees with children who are battling a health crisis, death or natural disaster. And we’re challenging our litigious competitors and other taco-loving brands to join us in supporting the people who serve our favorite food to guests across the nation.”

In fact, Creel fired a shot across the bow at Taco Bell at other rivals. After announcing their pledge to CORE, the CEO challenged other brands that want to use “Taco Tuesday” to do the same. The result would be quite the donation, considering that Taco John’s operates 400 restaurants in 21 states and Taco Bell alone operates more than 7,200 in the US. Look overseas and that number jumps up by about 1,000 locations in 30 countries.

Taco John’s has reportedly made good on their pledge, donating $40,000 to CORE, Children of Restaurant Employees.

What’s in a Mark?

Fast-food chain Taco John’s trademarked the phrase back in 1989. However, back in 1984, a California-based restaurant, Tortilla Flats, registered the trademark. According to some sources, the mark lapsed and Taco John’s snapped it up. That said, Tortilla Flats has sued other California restaurants for using the phrase throughout the years.

Interestingly, Taco John’s only had rights to the mark in 49 states. The exception is New Jersey, where Gregory’s owns the trademark. In fact, anyone who visits their site (as of the publication of this article) will see the phrase “Home of the Original Taco Tuesday!” right at the top.

However, it may surprise some to learn that a celebrity who appeared in Taco Bell’s “Taco T**sday” ads attempted to trademark the phrase in 2019. That celebrity? None other than Lebron James.

Clearly, this seemingly simple two-word phrase is a valuable trademark. It’s also likely that plenty of restaurants across the US have been surreptitiously using the phrase to drive traffic to their venues on Tuesdays for years.

The fact that Lebron James showed interest in the trademark and Taco Bell likely spent millions of dollars in ad revenue to have Taco John’s mark canceled shows the value. Time will tell how many millions of dollars the phrase will be worth to Taco Bell and other restaurant brands across the US.

Taco Tab

Some will see Taco Bell’s campaign as a massive brand bullying a smaller rival. Others will agree that it’s unfair for anyone to own the rights to such a common phrase.

In terms of exposure, I think this battle will help Taco John’s experience further growth. Last year was a banner year for growth for the franchise, and the brand was seeing growth back in 2021 as well.

After doing some digging, I learned that seven Taco John’s locations are owned by corporate; the plan for 2023 is to go from 375 stores to 400; and another 20 to 25 locations are planned for 2024. Per the Taco John’s website, initial layout for a franchise is between $942,000 and $1.4 for a single unit. A single franchise location generates annual revenue of around $1.2 million, on average.

Regarding Taco Bell, the brand is celebrating their victory—framed as a victory for all restaurants—with another of their famous and effective LTOs. On August 15, August 22, August 29, and September 5, Taco Bell guests can score a free Doritos Locos Taco. But the big celebration comes on September 12.

For that upcoming Taco Tuesday, Taco Bell will open a $5 million tab with DoorDash across the United States, with the exception of New Jersey. Again, Gregory’s owns the rights to the “Taco Tuesday” mark in the Garden State.

On September 12, Taco Bell will cover a portion of orders placed through the third-party delivery app to participating restaurants that offer Mexican cuisine. This does help the fast-food titan make the case that they fought this battle not just for themselves but all foodservice brands that wish to use the phrase “Taco Tuesday” without fear of legal action.

For further information, read the official Taco Bell press release below.

TACO BELL WILL HELP PAY FOR YOUR TACO TUESDAY CELEBRATION — EVEN IF IT’S NOT AT TACO BELL

Irvine, Calif. (August 8, 2023) – To celebrate the liberation of the Taco Tuesday trademark registration in 49 states, and to support and spotlight restaurants who now have the right to freely use Taco Tuesday, Taco Bell has announced that on Tuesday, September 12, Taco Tuesday fans (nearly) everywhere* can celebrate Taco Tuesday (nearly) anywhere – and Taco Bell will help pay for it.

On Taco Tuesday, September 12, Taco Bell, in partnership with DoorDash, is opening a $5 million taco tab to cover a portion of taco fans’ orders from any participating vendor selling Mexican cuisine. Because now that Taco Tuesday is free* – your tacos should be, too.

Leading up to the September 12 celebration, all Taco Bell locations will be offering a free Doritos® Locos Taco every Tuesday, no purchase necessary, on 8/15, 8/22, 8/29 and 9/5**.

“Taco Tuesday belongs to all who make, sell, eat and celebrate tacos, and this Free-For-All will not only thank taco fans who supported the cause, but will also spotlight local restaurants and vendors who can now embrace Taco Tuesdays without fear of legal action,” said Taco Bell U.S. Chief Marketing Officer, Taylor Montgomery. “When tacos win, we all win. We all win when Taco John’s decides to release its trademark registration, we all win when taco vendors everywhere are free to join the movement, and we all win when taco fans can freely celebrate and support Taco Tuesdays at Taco Bell or anywhere else.”

The Road to Freeing Taco Tuesday

In May 2023, Taco Bell took a bold step on behalf of taco lovers nationwide by filing legal petitions to cancel the two Taco Tuesday trademark registrations. The aim was simple: to free the phrase for restaurants nationwide. The message was clear: Taco Tuesday belongs to everyone, from Taco Bell to Taco John’s to your favorite local taco spot.

In late July, Taco John’s courageously decided to abandon its Taco Tuesday trademark registration. Not only did Taco John’s act benefit thousands of businesses across 49 states by making the term Taco Tuesday more freely available, Taco John’s also made a meaningful donation to Children of Restaurant Employees (CORE) for $40,000, which the Taco Bell Foundation has matched.

Supporting The Taco Community

Taco Bell has also committed to donating $1 million in partnership with the Taco Bell Foundation to support young people who make, sell, eat and celebrate tacos. Donations made by Rounding Up at checkout on Tuesdays will be matched up to $1 million. These donations will continue to fund the Taco Bell Foundation’s Community Grants and the Live Más Scholarship for fans and team members.

*The Taco Tuesday trademark registration has been canceled in all states except New Jersey. Therefore, the DoorDash offer will be limited to the 49 states where Taco Tuesday has been freed.

**NO PURCHASE NECESSARY. Offer valid on Tuesdays 8/15, 8/22, 8/29, and 9/5 only during local store operating hours while supplies last. Limit one (1) regular Free Seasoned Beef Nacho Cheese Doritos®

Locos Tacos per person, per offer day, available at participating U.S. Taco Bell® locations only. Not available with delivery orders unless placed directly on the Taco Bell app (delivery fees, taxes and tip apply). App and web orders require inputting offer code and customer must add a DLT to their cart. Not valid with any other offer. No substitutions. No cash value. Void where prohibited. Terms: ta.co/terms.

About Taco Bell Corp.

For more information about Taco Bell, visit our website at www.TacoBell.com, our Newsroom at www.TacoBell.com/news or www.TacoBell.com/popular-links. You can also stay up to date on all things Taco Bell by following us on LinkedIn, TikTok, Twitter, Instagram, Facebook and subscribing to our YouTube channel.

Images: Taco Bell