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November 30, 2022by David Klemt David Klemt No Comments

The NRA’s 2023 Culinary Trend Forecast

The National Restaurant Association’s 2023 Culinary Trend Forecast

by David Klemt

Ahead of the beginning of a new year, the National Restaurant Association unveils their culinary trend predictions for 2023.

The report is the result of a collaboration between the NRA, Technomic, and the American Culinary Federation (ACF).

For those unfamiliar, Technomic is at the forefront of foodservice trend tracking, industry research, and analysis. Likewise, the ACF is a premier industry organization. Tracing its founding to 1929, the ACF promotes “the professional image of American chefs worldwide through education of culinarians at all levels.”

To predict what will be “hot” next year, the NRA, Technomic, and ACF sent the 17th annual What’s Hot survey to thought leaders and chefs. In direct partnership with the Technomic Menu Research & Insights Division, the NRA predicted the top menu trends from 110 items spanning 11 categories.

Now, this isn’t a full dive into the report in its entirety. Rather, we strongly encourage our readers to download a copy of What’s Hot 2023 Culinary Forecast for themselves and their teams.

What readers will find below are the top 10 trends for 2023. Additionally, we’ll share the top three macro trends for next year, as forecast by the NRA and their partners.

More than Food

Somewhat surprisingly, the NRA’s top-ten list of culinary trends isn’t just a list of food items. Instead, this forecast paints a picture of where restaurants are heading in 2023.

While there are some specific cuisine predictions, the NRA’s top culinary predictions show us, in part, how consumers want to experience the restaurants they visit.

Southeast Asian cuisines (examples: Vietnamese, Singaporean)
Zero waste/Sustainability/Upcycled foods
Globally inspired salads
Sriracha variations
Menu streamlining
Flatbread sandwiches/Healthier wraps
Comfort fare
Charcuterie boards
Fried chicken sandwiches and Chicken sandwiches “3.0” (example: fusion of flavors)
Experiences/Local culture and community

As we can see, operators and consumers expect tighter, more concept-specific menus. Also, comfort foods; shareable (and “Instagrammable”) items like charcuterie boards; and items that show local and global influences may be hot in 2023.

One can consider, then, streamlining their menu to include their top sellers along with local and/or global flavors authentic to their brand.

Below, readers will see that three of the trends above make up the NRA’s top-three 2023 macro trends:

Menu streamlining
Comfort fare
Experiences/Local culture and community

Operator and Consumer Behavioral Shifts

Looking at the macro trends, it’s reasonable to believe the past few years will influence 2023 heavily.

Operators are dealing with inflation, higher costs for everything, labor shortages. Further, according to Datassential, more than a third of American operators are experiencing low traffic and sales levels.

We can expect these issues to follow us into 2023, at least for Q1 and Q2. Therefore, the NRA’s macro trends forecast makes sense. Streamlining menus often leads to streamlining the back and front of house. In turn, doing so can lower costs and boost staff retention.

On the consumer side, it appears comfort foods, chicken sandwiches, and experiences are driving visits and online orders. These are, as we all know, behavioral shifts we can trace back to the start of the pandemic.

We always suggest proceeding with caution, logic, and data when considering embracing trends. Missing out on trends can be just as costly as latching onto a trend too late.

That said, the macro trends certainly seem reasonable. Only time will tell, but the NRA’s 2023 forecast certainly contains several items operators and their teams should give serious consideration.

Image: Arabi Ishaque on Unsplash

November 23, 2022by David Klemt David Klemt No Comments

Merchants Support Credit Card Act

100s of Merchants Support Credit Card Competition Act

by David Klemt

Perhaps at least somewhat unsurprisingly, support for the Credit Card Competition Act is growing rapidly among merchants.

In fact, 1,802 merchants are making their position on the bill clear. Those hundreds of merchants drafted, signed, and sent a letter to the House and Senate.

The crux of that letter? To tell our lawmakers to support and pass the Credit Card Competition Act.

To view the letter, sent by the Merchants Payments Coalition (MPC), please click here. For the bill and its status, follow this link.

The Credit Card Competition Act: A Quick Summary

According to the MPC, credit and debit card transactions just in the US reached $3.49 trillion in 2021. Along with those transactions came $77.48 billion in merchant fees—just for Visa and MasterCard.

Why call those out those two processors in particular? Well, it’s because they’re behind about 576 million credit cards. Oh, and they also control 87 percent of the processing market.

In the span of just one decade, Visa and MasterCard swipe fees have risen 137 percent. So, it’s not surprising that merchants are supportive of the Credit Card Competition Act.

There are, indeed, restaurant and hospitality groups attached to the MPC’s letter to Congress. Taking a quick glance, Denny’s franchisees, Dutchman Hospitality Group, and Mandalay Hospitality Group are among the signees.

Obviously, this makes sense—swipe fees are among the highest costs operators face every day.

Where’s this Bill Currently?

It shouldn’t be too shocking to find that this has yet to make much progress. The bill’s sponsors, Sens. Richard Durbin (D-IL) and Richard Marshall (R-KS), introduced it in the senate at the end of July.

Three months later, October 28, an attempt was made to include the bill in the National Defense Authorization Act (NDAA). For those who are unfamiliar, the NDAA is known as a “must-pass” bill. After all, it specifies the US Department of Defense’s (DoD) budget and expenditures each year.

Along with a reported 900 other “riders,” Sens. Durbin and Marshall tried to get their bill passed within the NDAA. Unfortunately for the senators and supporters of the bill, the NDAA vote was pushed until the middle of November…which we’re now past.

Of course, the US did just undergo a mid-term election cycle. So, I suppose it’s reasonable to be a bit more patient with the Senate and the progress of this bill.

Those who work in or support our industry can make their opinion of this bill known. Just follow this link to the National Restaurant Association Credit Card Competition Act portal.

Image: Clay Banks on Unsplash

Newfoundland and Labrador during daytime

November 16, 2022by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

If you’re wondering which province in Canada is the happiest, Statistics Canada has the answer—and the happiest may surprise you.

Of course, those who live and work in the happiest province won’t find it shocking. After all, they’re largely happy to be there.

However, if you expect the happiest province to be the home of Toronto, Vancouver, Montreal or Canada… Well, you’re in for a surprise.

Earlier this week we took a look at the happiest cities and states in America. Congratulations Fremont, California, and Hawaii, respectively. To learn where 181 other cities and 49 states rank, please click here.

The Happiness Survey

Or more accurately, the “life satisfaction” survey. For this survey, that’s what Statistics Canada reveals: life satisfaction.

Interestingly, the survey is very simple. Apparently, Statistics Canada simply asked participants to rate the satisfaction of living in their province, zero through ten. For this survey, zero is least satisfied, ten is most.

Ages 15 through 75 (and older) were able to participate. The survey was also broken down to gauge the satisfaction of men and women.

Before we jump into the breakdown of province satisfaction or happiness, some good news. Reviewing the Statistics Canada data, most participants across all age groups are happy. In fact, age groups 65 to 74 and 75-plus appear to be happiest.

On the other side, ages 15 to 54 had the most people who rated their life satisfaction between zero and five. Even so, just over 20 percent of survey respondents rated their satisfaction a five or less.

So, on the whole, Canadians seem satisfied or happy with their lives, regardless of the province in which they live. Personally, I find that to be great news.

The Happiest Province

Okay, let’s dive into the reason you’re here: to learn which province is the happiest.

Newfoundland and Labrador
Prince Edward Island
Quebec
New Brunswick
Manitoba
Alberta
Saskatchewa
Nova Scotia
Ontario
British Columbia

The above rankings are determined by the percentage of survey respondents who rated their life satisfaction eight, nine or ten. So, if you’re in Newfoundland and Labrador, Prince Edward Island or Quebec, wow—you’re apparently one incredibly happy person.

Conversely, below you’ll find the rankings as determined by the largest percentage of respondents who rated their satisfaction a five or lower. As you’ll find, the list below isn’t simply the inverse of the one above.

Ontario
British Columbia
New Brunswick
Alberta
Nova Scotia
Prince Edward Island
Manitoba
Saskatchewa
Quebec
Newfoundland and Labrador

As far as Canada overall, the results of this particular survey are positive. Just 19.4 percent of survey respondents rated their satisfaction or happiness zero through five. And only 28.9 percent provided a rating of six or seven.

More than half of Canadians, 51.7 percent, rate their lives an eight, nine or ten. That’s some great and welcome news.

Image: Erik Mclean on Unsplash

November 9, 2022by krghospitality krghospitality No Comments

2023: Year of the POS Systems?

2023: Year of the POS Systems?

by David Klemt

Image from SpotOn press release

According to SpotOn, the industry could be in for a tech revolution next year as independent operators pursue more powerful POS solutions.

The results of a survey conducted by the cloud-based POS platform are rather revealing. In an effort to better understand where the industry is heading, SpotOn surveyed 300 independent and small-chain restaurant operators.

Both full-service and limited-service (LSR) concept operators participated in this SpotOn survey. Intended to identify the challenges operators face currently, the results reveal much more.

Below, the picture these survey results paint for the industry.

Legacy vs. Innovation

This isn’t the first time I’ve stated the following: Our industry hasn’t been the fastest to implement new technology.

However, we did appear to turn that around in 2021. Now, heading into 2023, our industry may be pursuing cutting-edge tech solutions even more fervently. Today’s guest expects more tech, and your team likely wants access to more modern tech that makes their jobs easier.

Per SpotOn’s survey, 81 percent of independent operators still use so-called “legacy” POS systems. These are “traditional” systems from companies that have been around for quite some time.

It’s not difficult to understand why the vast majority of independent operators continue using legacy systems:

Investing in a new platform requires expenditures of money and time.
Introducing a new POS platform requires staff training.
Staff need to grow adept at using the new system.
It can be daunting to research the available platforms and implementing change.

So, independent and small-chain operators have a choice to make: Stick with the familiar or invest in the future. Change can not only be intimidating, it can be expensive.

However, it seems that most operators are ready to throw comfort to the wayside and embrace innovation.

State-of-the-art Benefits

Should the SpotOn survey prove to be accurate snapshot of the industry, 75 percent of operators will implement new tech next year. According to SpotOn, this is largely in response to growing labor challenges, such as scheduling and retention.

The restaurant, bar, nightclub, and food truck platform found that operators are spending as much as 20 hours per week on administrative tasks. State-of-the-art POS systems can slash those hours by:

streamlining operations;
making scheduling simpler;
calculating tips and payout for payroll; and
managing overtime, an increasingly common task.

More modern POS platforms can automate labor management tasks, saving operators time, money, and frustration. Automation and streamlining give operators something invaluable: time.

In particular, innovative and helpful tech solutions provide an operator with time to focus on growing their business. When weighing whether to keep a familiar but less feature-rich POS system or invest in a modern platform that seamlessly integrates many solutions, ask yourself a couple important questions:

What’s my time worth?
What am I focusing on every day?
Am I growing my business or stagnating?
Is my current POS system helping or hindering my team?
Does my POS system streamline and automate any tasks?

Image: SpotOn

November 7, 2022by David Klemt David Klemt No Comments

Tipping is on the Ballot in Washington, DC

Tipping is on the Ballot in Washington, DC

by David Klemt

Out of concern that people who work for tips aren’t making minimum wage in Washington, DC, Initiative 82 is on the ballot.

This is interesting for several reasons. One of which is the fact this isn’t the first time this issue has been voted on in DC.

Back in 2018, Initiative 77 was presented to Washington, DC, voters. The initiative took the $3.33 per hour minimum wage for tipped workers up to $15 per hour, the full minimum wage.

In June 2018, the measure was approved by voters. However, the Washington, DC, Council held a vote and repealed Initiative 77 after if had been passed.

Phil Mendelson (D-Chairman) of the Washington, DC, Council, introduced the bill that ultimately repealed Initiative 77 in October 2018.

“The Council amends laws all the time. And if a law is a bad law it should be amended or repealed,” said Mendelson at the time. “It doesn’t matter if the law was adopted by Congress, the voters, or ourselves.”

Further, Mendelson claimed that tipped workers themselves—bartenders, servers, valets, manicurists, and more—didn’t hold a favorable view of the passing of the initiative.

“77 may be well-intentioned, but the very people the Initiative is intended to help are overwhelmingly opposed. If we want to help workers – protect them from harassment and exploitation – there are better ways than Initiative 77,” Mendelson said.

One council member, Mary Cheh (D-Ward 3), opposed repealing Initiative 77 and addressed claims that it was harmful to tipped workers.

“Although I take these claims seriously, in my view they are speculative and not borne out by the experience of the other jurisdictions that have one wage,” said Cheh.

Support

Whenever increasing tipped worker wages to full minimum wage comes up, we tend to encounter the same arguments for and against.

Currently, the tipped hourly wage in DC is $5.35 per hour. In comparison, full minimum wage in DC is $16.10 per hour.

Now, as the law reads, if a tipped worker’s wages don’t equate to full minimum wage, their employer is expected to bridge the gap.

The key argument for the passing of Initiative 82 is simple: tipped workers should make at least minimum wage. These workers deserve the stability of knowing how much they’ll make each shift and earning a living wage (consistently, hopefully).

Those who support Initiative 82 also say that since the measure doesn’t outlaw tipping, tipped workers would earn more than minimum wage.

Opposition

Opponents, however, argue that the initiative will harm tipped workers. Some say that operators will cut shifts and increase prices in response to Initiative 82 passing. This will, of course, lead to servers, bartenders, and other tipped workers making much less than they did in the past.

Traffic may also decrease because it’s assumed that operators will increase costs significantly.

There’s also the argument that’s often (if not always) made when this topic comes up: Tipped workers themselves don’t support these initiatives.

“I have not met a single server who wants this,” Washington, DC, bar owner David Perruzza told the Washington Blade. Perruzza added, “The people who support this don’t know anything about the service industry.”

A Few Questions…

I’ve made no secret of my cynicism when it comes to politicians and their relationships with our industry.

My main argument was made for me: the Restaurant Revitalization Fund saga. We watched for months as Congress failed to replenish the RRF, leaving more than 177,000 operators and their staffs to fend for themselves. This, after months of dangling replenishment in front of all of us. Ultimately, they abandoned us.

Tellingly, Senator Rand Paul (R-KY) referred to RRF replenishment as a “bailout.” And apparently he doesn’t think much of the challenges operators have faced since the start of the pandemic, asking, “Where’s the emergency?” The closures of tens of thousands of restaurants and bars, often the cornerstones of communities across the country, doesn’t rank as an emergency, apparently.

So, Initiative 77, Initiative 82, and similar measures beg a few questions:

Do politicians actually ask their tipped-wage constituents their thoughts on this topic before introducing these ballot measures?
When these initiatives are being considered, do people just ask a few operator friends their opinions?
Do local, state, and federal politicians really have a grasp of our industry?

One thing is certain: Industry eyes across the country are on Initiative 82. If it passes, we can likely expect similar measures to be introduced in cities and states. Should it fail, it may be a while before another jurisdiction sees this type of initiative again.

Image: Annie Spratt on Unsplash

October 26, 2022by David Klemt David Klemt No Comments

F&B in Canada: Top Menu Items

F&B in Canada: Top Menu Items

by David Klemt

Those wondering what food and beverage menu items are performing best among consumers throughout Canada need wonder no more.

And why is that? Well, Restaurants Canada has the answers, revealing the top ten food and top ten beverage items.

Further, the organization compares each item’s performance. In this instance, Restaurants Canada analyses the percentage of orders that contained each food or beverage item from January to April 2022 in comparison to 2019.

These insights (and many more) are available in Restaurants Canada’s 2022 Foodservice Facts report. In fact, you can find our reviews of several of the restaurant advocacy group’s report topics via the links below:

For your own copy of this year’s Foodservice Facts report, click here.

Top 10 Canadian Drink Menu Trends

As you’ll see below, coffee is outperforming nearly every other beverage category. Specifically, Hot coffee is at the top, while Iced or frozen coffee is ranked third.

Unsurprisingly, Carbonated soft drinks / Pop / Soda split the two coffee categories. According to Restaurants Canada, the Carbonated soft drink category can credit its performance in large part to QSRs.

Milk: 1.8% (2019) to 1.8% (2022)
Iced tea: 2.9% (2019) to 1.6% (2022)
Milkshakes / Smoothies: 2.1% (2019) to 2.0% (2022)
Fruit juice: 3.8% (2019) to 3.0% (2022)
Hot tea: 5.5% (2019) to 4.5% (2022)
Alcohol beverages: 5.1% (2019) to 5.7% (2022)
Water: 6.6% (2019) to 5.0% (2022)
Iced or frozen coffee: 5.3% (2019) to 7.5% (2022)
Carbonated soft drinks / Pop / Soda: 19.7% (2019) to 20.2% (2022)
Hot coffee: 40.9% (2019) to 41.9% (2022)

Compellingly, Alcohol beverage performance in restaurants fluctuated by age group between 2021 and 2022. Alcohol order shares in restaurants, per Restaurants Canada:

Legal drinking Age (LDA) to 34: 46% (2021) to 43% (2022)
35 to 49: 17% (2021) to 21% (2022)
50-plus: 37% (2021) to 36% (2022)

Alcohol order shares in bars, according to Restaurants Canada:

LDA to 34: 35% (2021) to 35% (2022)
35 to 49: 17% (2021) to 19% (2022)
50-plus: 49% (2021) to 47% (2022)

Overall, the 35 to 49 age group appears to be consuming less alcohol in bars and restaurants in comparison to the LDA to 34 and 50-plus cohorts.

Top 10 Canadian Food Menu Trends

As Restaurants Canada notes, the Sandwich / Sub category has grown in 2022. Interestingly, the category just below it in growth, Chicken, is partially responsible for boosting Sandwich / Sub performance.

As far as entrees or “main attractions,” the Burger category remains at the top, beating out Breakfast, Sandwich / Sub, Chicken, and Pizza menu items.

Cake / Squares / Muffins: 3.7% (2019) to 3.3% (2022)
Salad: 4.3% (2019) to 3.8% (2022)
Donuts / Beignets: 3.0% (2019) to 3.8% (2022)
Breads: 4.3% (2019) to 3.4% (2022)
Pizza / Panzerotti / Calzone: 4.1% (2019) to 4.3% (2022)
Chicken: 7.6% (2019) to 8.5% (2022)
Sandwich / Sub: 8.0% (2019) to 8.5% (2022)
Breakfast: 10.8% (2019) to 11.4% (2022)
Burger: 9.0% (2019) to 10.9% (2022)
French fries / Potato / Sweet potato / Onion rings: 15.0% (2019) to 16.1% (2022)

Image: Nathan Dumlao on Unsplash

October 25, 2022by David Klemt David Klemt No Comments

Bon Appétit Reveals Best New Restaurants

Bon Appétit Reveals the Best New Restaurants in 2022

by David Klemt

Condé Nast’s American food and restaurant publication Bon Appétit identifies the 50 restaurants they deem the very best in 2022.

The intriguing list highlights the consumer desire to try a wide range of global cuisines. Indeed, were one to eat their through Bon Appétit‘s 2022 list, they’d enjoy both traditional and modern:

African (notably, Nigerian)
Cantonese
Caribbean
Eastern European (Hungarian, in particular)
Filipino
French
Indian (including Goan and Kashmiri)
Italian
Japanese
Jewish
Korean
Laotian
Mexican
Palestinian
Portuguese
Vietnamese

Of course, one will also find American cuisine. Of note, Texas barbecue, elements of Memphis barbecue, Low Country, Cajun cooking, and Midwest comfort food. There are also restaurants offering creative takes on traditional steakhouse fare. One restaurant’s focus, The Nicolett in Lubbock, Texas, is High Plains cuisine. (For those wondering, Bon Appétit describes this as “West Texas terroir.”)

This is a compelling list, showing that consumers crave a balance between comfort food and stepping outside of their comfort zones to discover cuisines that are new to them. I encourage everyone to look into these restaurants for inspiration and motivation.

Regional Performance

For simplicity, Bon Appétit arranges their list by dividing the US into four large regions: Midwest, Northeast & Mid-Atlantic, South, and West.

Interestingly, the South claims the most restaurants on this list of the 50 best, earning 17 spots. Northeast & Mid-Atlantic restaurants grab 15 spots, the West takes 12, and the Midwest claims just six.

When it comes to the South, Texas performs the best in terms of number of restaurants on the list. There are two in Austin, and one each in Fort Worth, Garland, Houston, Lubbock, and San Antonio.

However, Florida, Georgia and Louisiana also do well for the South, earning three spots each in the following cities:

Miami (2) and North Miami (1)
Atlanta (2) and Savannah (1)
New Orleans (3)

Unsurprisingly, New York leads the way for the Northeast & Mid-Atlantic region. Drilling down, Brooklyn boasts four of Bon Appétit‘s 50 Best New Restaurants 2022; New York City is the home of three; and one is in Hudson.

Pennsylvania, however, claims three spots, all in Philadelphia.

Equally as foreseeable, California boasts the most restaurants among this list of fifty. Predictably, most are in Los Angeles, which claims three in total. Oakland, San Diego, and San Francisco round out California’s spots with one each. Coming in second in terms of Western states with multiple restaurants on the list is Oregon, with two in Portland.

Unfortunately, the Midwest simply doesn’t perform nearly as well on this year’s list as its counterparts. In fact, it has just half the number of restaurants as the third-place region with six. Cincinnati, Ohio, takes a third of those spots. Surprisingly, Chicago is home to just one restaurant on this list.

The 50 Best New Restaurants

Below you’ll find Bon Appétit‘s list in alphabetical order.

Agi’s Counter (Brooklyn, NY)
Baba’s Pantry (Kansas City, MO)
Bacanora (Phoenix, AZ)
Bata (Tucson, AZ)
Birdie’s (Austin, TX)
Bocadillo Market (Chicago, IL)
Bonnie’s (Brooklyn, NY)
Cafe Mochiko (Cincinnati, OH)
Cafe Mutton (Hudson, NY)
Canje (Austin, TX)
Common Thread (Savannah, GA)
Daru (Washington, DC)
Daytrip (Oakland, CA)
Dear Annie (Cambridge, MA)
Dept. of Culture (Brooklyn, NY)
El Rincon del Maiz (Garland, TX)
Gage & Tollner (Brooklyn, NY)
Good Good Culture Club (San Francisco, CA)
Her Place (Philadelphia, PA)
Irwin’s (Philadelphia, PA)
Juniper Cafe (Atlanta, GA)
Kingfisher (San Diego, CA)
Korshak Bagels (Philadelphia, PA)
La Diabla Pozole y Mezcal (Denver, CO)
La Onda (Forth Worth, TX)
Lasita (Los Angeles, CA)
Lengua Madre (New Orleans, LA)
Los Félix (Miami, FL)
Lucian Books and Wine (Atlanta, GA)
Ma Der Lao Kitchen (Oklahoma City, OK)
March (Houston, TX)
Mid-City Restaurant (Cincinnati, OH)
Mister Mao (New Orleans, LA)
Morchella (Portland, OR)
The Nicolett (Lubbock, TX)
One White Street (New York, NY)
Paradis Books & Bread (North Miami, FL)
Phởcific Standard Time (Seattle, WA)
Quarter Sheets (Los Angeles, CA)
Reese Bros Barbecue (San Antonio, TX)
Regards (Portland, ME)
República (Portland, OR)
Seafood Sally’s (New Orleans, LA)
Semma (New York, NY)
Sozai (Clawson, MI)
Sunny’s Steakhouse (Miami, FL)
Supperland (Charlotte, NC)
Uncle Lou, New York, NY)
Yangban Society (Los Angeles, CA)
Z&Z Manoushe Bakery (Rockville, MD)

Image: Kiyoshi on Unsplash

October 21, 2022by David Klemt David Klemt No Comments

Cali Chains Move Quickly to Kill FAST

California Chains Move Quickly to Kill FAST

by David Klemt

If recent reporting is accurate, fast food chains with locations in California are fighting the Fast Food Accountability and Standards Recovery Act.

Several well-known restaurant chains have reportedly already dumped well over $10 million into a ballot drive effort. Among the chains lobbying to kill the bill are In N Out, McDonald’s, Wendy’s, and Chipotle.

In other words, the group of chains aiming to defeat AB-257 in California have very deep pockets. These heavy hitters are reaching deep to contribute millions of dollars to Save Local Restaurants, the coalition responsible for starting the ballot initiative.

And who are the Save Local Restaurants coalition members? The National Restaurant Association (NRA), US Chamber of Commerce (USCC), and International Franchise Association (IFA).

What is AB-257?

The Fast Food Accountability and Standards Recovery Act, also known as the FAST Act, is a California bill. Enacted on September 5 of this year, FAST amends a section of the state’s labor code that relates to food facilities and employment.

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

To summarize, FAST does 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.

It’s that third bullet point that likely stands out the most to chain operators. On January 1, 2023, California’s minimum wage increases to $15.50 an hour. If the Save Local Restaurants ballot initiative fails, the Fast Food Council could boost the minimum wage to $22 per hour right after we all yell, “Happy New Year!”

Proponents say the bill protects the health, safety, and welfare of fast-food workers. Opponents call it radical.

Fighting FAST

According to Save Local Restaurants, it’s not just chains that want to kill FAST:

“The FAST Act is opposed by small and family-owned businesses, minority-rights groups, workers, consumers, your favorite restaurants, taxpayers and community-based organizations,” reads their website.

Among their reasons for attempting to kill the bill are:

a resulting increase in the price of food;
the elimination of thousands of jobs in California;
an increase in the cost of living in the state; and
the millions of dollars the coalition claims the bill will cost California taxpayers annually.

Reportedly, full-service restaurant operators also oppose FAST. The reason is simple: If the Fast Food Council hikes fast-food worker minimum hourly wages significantly, FSRs will struggle to compete. FSR operators will have to hike menu item prices further, a situation that’s growing untenable as consumers balk at paying more at restaurants.

Then, there’s the fact that bills similar to FAST could pass in other states. So, chains are contributing millions to see that the Save Local Restaurants ballot initiative succeeds.

Should the effort be successful, FAST will be included on California’s 2024 ballot. That means it will be suspended until 2024 and be in the hands of the voters.

Image: Tima Miroshnichenko via Pexels

October 12, 2022by David Klemt David Klemt No Comments

The Numbers on Food Delivery in Canada

The Numbers on Food Delivery in Canada

by David Klemt

For most restaurants, delivery is now a crucial service element rather than a “nice-to-have” option a small percentage of guests expect.

This is true whether your restaurant is in the US or Canada. But who’s placing orders? How are they ordering? And will they continue to order for the foreseeable future?

Well, Restaurants Canada has answers to all those questions and more. So, we let’s take a look at what their 2022 Foodservice Facts report says about delivery.

To download your own copy of this informative report, click here.

Who’s Placing Orders?

In their 2022 Foodservice Facts report, Restaurants Canada looks at three age groups:

18 to 34
35 to 54
55-plus

Perhaps unsurprisingly, the 18- to 34-year-old cohort leads the charge when it comes to ordering delivery. It’s also not surprising that 35 to 54 comes in second, and 55 and older is third.

However, the first two groups are closer than some may assume. Eighty-three percent of the the 18 to 34 cohort placed orders at quick-service or full-service restaurants between December 2021 and May 2022.

That number does drop for the same time period among the 35 to 54 group, but not by a significant amount. Of that cohort, 77 percent ordered delivery. Just over half of the 55-plus group placed delivery orders: 52 percent.

Now, those numbers are down a bit from 2021, which makes sense. Things were much more restrictive in 2021 and people were just getting back to a sense of normalcy at the start of this year.

In 2021, the delivery order percentages were:

18 to 34: 89 percent
35 to 54: 81 percent
55-plus: 67 percent

Looking at these numbers, it appears the 55-plus cohort is more comfortable dining out in person. Conversely, the 18 to 34 age group is clearly comfortable making delivery a part of their everyday lives.

How do People Want to Order?

Believe it or not, your website still matters. I’ve been saying this for years but the pervasiveness of delivery and takeout ordering is really driving this point home.

The fact is, a notable percentage of your guests want to support your restaurant and staff directly. Over the past couple of years, consumers have become well aware that third-party delivery services are incredibly costly for operators.

Consumers are also aware of third-party delivery debacles, such as the abysmal Grubhub “Free Lunch” mess from May of this year.

So, direct delivery is something that operators need to at least consider. Implementation is often less difficult than most business owners believe. And many platforms, SevenRooms, for example, make implementing direct delivery simple and affordable.

Interestingly, Restaurants Canada data supports the need for direct delivery. Back in May, the industry advocacy organization asked survey respondents how they prefer to place delivery orders from restaurants.

Preferences for QSR customers:

No preference: 10 percent
Over the phone: 19 percent
Third party: 35 percent
Restaurant website or app: 36 percent

Full-service customer preferences:

No preference: 8 percent
Over the phone: 28 percent
Third party: 29 percent
Restaurant website or app: 35 percent

Honestly, I find it surprising anyone calls a QSR to place an order. However, I suppose that makes sense for an office or catering.

At any rate, make sure your website is up-to-date, you offer direct or “last-mile” delivery, and make it easy to navigate your menu and the ordering process.

Is Ordering Here to Stay?

Now, we all know why restaurant delivery has been supercharged the past two years. However, consumer trend data show that delivery was on the rise before the Covid-19 pandemic.

But now that people are eager to return to normal and the industry is on its way to returning to pre-pandemic levels, is delivery really here to stay?

According to another question asked of survey respondents by Restaurants Canada, more than half of QSR and full-service restaurant customers plan to stick with delivery.

For their 2022 Foodservice Facts report, Restaurants Canada asked back in May how often consumers planned to place delivery orders in the next six months.

Order frequency for QSR customers:

Never placed a delivery order and don’t plan to now: 29 percent
Order less often: 20 percent
Will order with the same frequency: 45 percent
Will order more often: 7 percent

Frequency of orders for full-service customers:

Never placed a delivery order: 24 percent
Order less often: 23 percent
Will order with the same frequency: 44 percent
Will order more often: 9 percent

Here to Stay?

Of course, there are multiple factors feeding the numbers above. Some people simply don’t like ordering and waiting for delivery. For these consumers, the practice doesn’t just seem convenient.

There’s also the consumer demand to return to in-person dining, socializing with family and friends. And, of course, meeting new people while dining out.

We must also consider inflation and rising costs. Often, restaurant spending is among the first to be reduced when consumers need to be more frugal. Rising menu costs are sure to curtail some delivery spending.

That said, it’s clear delivery is here to stay and must be considered a crucial element for most restaurant operations. QSR and full-service operators need to bear in mind is placing orders; how often they’re placing orders; and get them in the habit of placing orders directly.

Image: Oliur on Unsplash

March 8, 2022by David Klemt David Klemt No Comments

A Lesson in Guest Perception

A Lesson in Guest Perception

by David Klemt

At this point, it’s becoming more of a surprise to not be told that the ice cream machine isn’t working at a McDonald’s restaurant.

Per a report from earlier this year, 25 percent of their machines are broken at any time. In fact, the brand made a joke about it in 2020.

we have a joke about our soft serve machine but we’re worried it won’t work

— McDonald’s (@McDonalds) August 11, 2020

Interestingly, with all the road trips and flights I’ve taken, I had never encountered a nonfunctional ice cream at a McDonald’s. Until last week.

Feeling nostalgic, I drove to a McDonald’s near my home for a Shamrock Shake. Growing up, my father always enjoyed the Shamrock Shake LTO. I’ve had maybe one or two in my entire life.

So, I drove over, got in line, and confidently asked for a Shamrock Shake and a Mint Oreo Shamrock McFlurry. And then I heard the words I’d never heard before:

“I’m so sorry, our machine isn’t working.”

Devastated, I did what any well-adjusted adult would do: I ordered a double cheeseburger and a 10-piece Chicken McNuggets combo. Same thing as a shake and McFlurry, right?

Guest Perception

I won’t dive too far into the minutiae of the longstanding McDonald’s ice cream machine saga. By now, we’re all familiar:

These machines break so often there’s a website dedicated to the problem. McBroken shows people where ice cream machines are working and where they’re broken. (If only I had used that before my ill-fated visit…)
The machines reportedly take four hours per day to clean.
There are claims that Taylor, the manufacturer of the machines, makes 25 percent of their revenue from performing repairs.
Outlets have reported the FTC is investigating the situatithe machine’s manufacturer, Taylor.
The latest news is that Kytch is suing McDonald’s for $900 million.

I’m not a McDonald’s board member, nor am I a franchisee. So, I’m not privy to any discussions swirling around the ice cream machines in use currently.

However, I do find it surprising that a brand as massive as McDonald’s would allow this issue to continue. For a brand that claims nothing is more important than delivering a high-standard of quality food, this joke is no longer funny.

What’s more, the issue is an opening for their competitors.

Leave an Opening and a Competitor will Take it

Jack in the Box has roasted McDonald’s for their ice cream machines in the past. This month, however, they’ve amped up their trolling.

Now that the Shamrock Shake has returned, Jack in the Box has pounced.

It would’ve been enough for Jack to mock McDonald’s on Twitter during Shamrock Shake season. But nope—Jack is dragging McDonald’s even harder.

No one:
Me: Takes over https://t.co/yjghUCVmpT to promote my New St Paddy’s day shake pic.twitter.com/lToscUsynP

— Jack in the Box (@JackBox) March 4, 2022

Head over to McBroken and you’ll see a huge banner that reads, “DON’T GET McSHAMMED.” You’ll notice that the map is now also populated with Jack in the Box locations.

Click the aforementioned banner and you’ll find yourself on the Jack in the Box website. More specifically, it’s a page promoting their mobile app.

Taking it further, there’s currently a promotion encouraging the download: using the code “McSHAMMED” scores the user a $2 shake.

Since we’re in Shamrock Shake season, Jack is offering their new Oreo Cookie Mint Shake. And yes, it’s green.

Innovation and Problem Solving are Crucial

Look, I’m in no position to tell McDonald’s how to run their business. If they’re comfortable with negative guest perception and experiences, that’s on them.

It’s also on them if they want to show their guests and competitors a failure to innovate, solve problems, and be agile.

The ice cream machine debacle should be a lesson for all operators. Leave an opening and your competition will take it, slamming it shut behind them.

At best, maybe you’ll be able to adapt and overcome. At worst, they’ll be social media and marketing savvy, and roast you publicly. Once a brand’s perception slips, it can be incredibly difficult to get it back to where it once was.

As an operator, you’re an entrepreneur. Entrepreneurs innovate and solve problems.

Image: Joshua Austin on Unsplash