Quick-service restaurant | KRG Hospitality

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

July 10, 2023by David Klemt David Klemt No Comments

Seemingly Simple: The French Fry

Seemingly Simple: The French Fry

by David Klemt

We celebrate the humble French fry—at once a living legend and deceptively simple side—on Thursday, July 13, National French Fry Day.

Now, I know I tend to dive into the history, disputed or not, of a given item when a holiday comes around. However, that’s not the point of this article.

Of course, I could easily point out that this iconic item’s origins aren’t settled history. That Belgium claims ownership as of 1680. Or that Chile may have beaten Belgium by 61 years. And that France gets credit because the recipe for “modern” French fries appear in the cookbook La Cuisinière Républicaine from 1775. I’m not even going to get into the debacle that was 2003’s Freedom Fries…

Again, that’s not the point. Whether you call them French fried potatoes, French fries, fries, pomme frites, or chips, they’ve been around for anywhere from 400-plus to almost 250 years in some form.

And still they manage to confound many a cook.

We’ve all gotten an order of flaccid, cold, mushy or otherwise cheerless chips. And we’ve all managed to muscle down at least a handful of those dismal, forlorn fries, each soggy bite driving us deeper into despair.

Okay, that may be the tiniest bit dramatic. My point is, French fries are deceptively simple to get just right. And a subpar fry can—let’s face it, will—ruin a guest’s perception of a restaurant. They may return, but they’ll be apprehensive.

Fry Infatuation

If you thought maybe I’d try to create a portmanteau like “infrytuation,” I did think about it. But that would be far too silly, even for me. I wouldn’t even type such a thing out loud.

Anyway, we may not know the origin of fries or chips for a fact. But we do know that for the most part, people love a fry. Those who don’t, well, they’re not to be trusted. Should you come across such a person, grab a handful of fries—or the entire basket—and run away. You don’t need that kind of negativity in your life.

But why? Why do we love a fry?

Perhaps it’s the versatility. They complete many a limited-service restaurant or QSR meal. At this point, the “bag fry” is almost its own varietal.

They’re at home at a dive or neighborhood bar. But they’ll also step up and accompany a steak at a French bistro or steakhouse. Fish house, shack or upscale seafood restaurant? Please—fish and chips are a power couple comfortable in any environment.

Speaking of versatility, chips are also happy to indulge a chef or cook’s most debaucherous thoughts. A vessel to carry short rib, cheeses, and an array of seasonings? They’re down.

Of course, it’s likely that fry popularity comes down to comfort. A hit of salt, fat, heat, crispness, and creaminess? That’s at the bare minimum. Toss on some parmesan or pecorino romano and that hit of dopamine doubles, at least.

Chip Tips

One professional, personality, and purveyor who knows his way around a French fry is Chef Brian Duffy.

Indeed, he takes fries seriously. So seriously, in fact, that he has promoted Lamb Weston for several years. For the unfamiliar, America-based Lamb Weston is on of the biggest producers of French fries in the world.

One of their products, the Extra Crispy series of fries, retains crispness for 30 minutes.

Chef Duffy also understands the importance of fries. They can, as stated above, make or break a guest’s visit.

Additionally, as you can see in the Instagram post below, Chef Duffy certainly sees the humble fry as a blank canvas for experimentation.

View this post on Instagram

A post shared by Chef Brian Duffy (@chefbriduff)

Given his strongly held views on fries, I reached out for his thoughts. And, of course, Chef Duffy didn’t disappoint. If you want to master your fries, take the Duffified approach.

Make sure you’re following Chef on Instagram, Facebook, Twitter, and Pinterest. From knife skills to thoughts on seasonings and techniques, you’ll gain helpful culinary insights. Oh, and he’s funny, too.

Duffified Fries

Elevate your French fries. Realize that they’re not “just” a side dish and therefore an afterthought.

For many brands, their fry is a calling card. That “card” can either tempt people through your doors or warn them to stay away.

Are they seasoned well?

Fries are seasoned perfectly when seasoned within 3-5 seconds of being removed from the fryer. Create a fry seasoning that has a good salt-to-seasoning ratio. My Fry base is 1 cup sea salt, 1/8 cup fresh ground black pepper, 1/2 cup onion powder, 1/4 cup garlic powder, 1/8 cup dark chili powder.

Are they crispy?

A good quality fry holds its crispiness for 10 to 15 minutes, unless it’s designed with a coating like a Crispy on Delivery^™fry from Lamb Weston that can stay crispy for up to 30 minutes. There’s nothing worse that taking that first bite and having a cold, soggy fry.

Are they hot?

A hot fry has a creaminess in the center that enhances the ultimate experience of the fry. Having that crispy exterior and creamy interior ensures a perfect fry!

Hand-cut fries.

Let’s be real: They’re amazing within the first few minutes. But anything longer than that is a soggy fry, rarely cooked perfectly due to the labor involved and the variations between the type of potato, the time of the year, and the starch to sugar content. It’s just a super inconsistent product unless it’s a huge focus for your concept. I’d stay away.

What are your sauces?

Just ketchup? Just ranch? Make up a few new dipping sauces that will assist you in creating a fry program that isn’t just as a side. Three different fry cuts and three different sauces are now a $14 appetizer that will make people happy.

Choose a fry or a fry program that matches your concept!

Is it a wedge, a concertina, a waffle, a dipper or a steak…? Choose wisely because the wrong fry can take your menu from great to, “Well, that sucked.”

Takeaway

Speaking of featuring fries as a premium appetizer that justifies a premium price, Chef Duffy has a couple of ideas.

One, a fry board. We’ve seen cheese boards, meat boards, pretzel boards… Why not fries?

Sift through Instagram and you’ll also find a Chef Duffy take on build-your-own nacho fries.

View this post on Instagram

A post shared by Lamb Weston for Chefs (@lambweston4chefs)

Get creative. Don’t just have fries, engage your kitchen and have them build a fry program. Innovation draws people in and converts them to loyal, repeat guests while justifying premium pricing.

Image: Vincent Rivaud on Pexels

Disclaimer: Neither the author nor KRG Hospitality received compensation, monetary or otherwise, from Lamb Weston or any other entity in exchange for this post.

July 4, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: July 2023

5 Books to Read this Month: July 2023

by David Klemt

Our inspiring and informative June book selections will take your front and back of house to the next level, and help develop your leadership skills.

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

Let’s jump in!

Sugar Shack Au Pied de Cochon (Cabane à Sucre Au Pied de Cochon)

This is the English-language edition of the 2012 World Gourmand Book of the Year. You can pick it up at Amazon via this link, but it will cost you over $150 to do so. So, here’s the link to the book from the Au Pied de Cochon online store.

Those who have read this book describe it as one part recipe book, one part art piece. It’s difficult to categorize this book at all, really. It’s a journal, a recipe book, a culinary masterpiece, and a collection of scientific knowledge. In less than 400 pages, Martin Picard chronicles a year in the life of his restaurant, and shares 100 recipes and 2000 photographs, along a depth of culinary information, the value of which can’t be overstated. Pick it up today or find it at a library if you can.

Catching Fire: How Cooking Made Us Human

If you look at your role in foodservice as more than just a paycheck, you already view cooking as important. It has real value and inspires you, stoking your passion for this business. But what if the importance of cooking is beyond just “important”? What if it’s directly responsible for human evolution? This book by anthropologist and primatologist Richard Wrangham puts forth and defends this evolutionary theory.

From Amazon: “In a groundbreaking theory of our origins, Wrangham shows that the shift from raw to cooked foods was the key factor in human evolution. When our ancestors adapted to using fire, humanity began. Once our hominid ancestors began cooking their food, the human digestive tract shrank and the brain grew. Time once spent chewing tough raw food could be used instead to hunt and to tend camp. Cooking became the basis for pair bonding and marriage, created the household, and even led to a sexual division of labor.

“Tracing the contemporary implications of our ancestors diets, Catching Fire sheds new light on how we came to be the social, intelligent, and sexual species we are today. A pathbreaking new theory of human evolution, Catching Fire will provoke controversy and fascinate anyone interested in our ancient origins – or in our modern eating habits.”

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life

If you prefer your self-improvement and leadership books coated in gobs of sugar and wrapped in sheets of positivity, prepare for a shock. Author Mark Manson isn’t a sunshine, daisies, unicorns, and lemons-to-lemonade type of person. Instead, Manson thinks people need to toughen up and learn how to simply deal with being handed lemons. However, this isn’t a nonstop punch to the gut or blast to the chops. Rather, Manson wants people to change their mindset and focus on what should matter.

From Amazon: “Manson makes the argument, backed by both academic research and well-timed poop jokes, that improving our lives hinges not on our ability to turn lemons into lemonade but on learning to stomach lemons better. Human beings are flawed and limited – “not everybody can be extraordinary; there are winners and losers in society, and some of it is not fair or your fault”. Manson advises us to get to know our limitations and accept them. Once we embrace our fears, faults, and uncertainties, once we stop running and avoiding and start confronting painful truths, we can begin to find the courage, perseverance, honesty, responsibility, curiosity, and forgiveness we seek.

“There are only so many things we can give a f*ck about, so we need to figure out which ones really matter, Manson makes clear. While money is nice, caring about what you do with your life is better, because true wealth is about experience. A much-needed grab-you-by-the-shoulders-and-look-you-in-the-eye moment of real talk, filled with entertaining stories and profane, ruthless humor, The Subtle Art of Not Giving a F*ck is a refreshing slap for a generation to help them lead contented, grounded lives.”

Pick this book up here!

Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech

During a recent team meeting, KRG Hospitality executive chef and culinary expert Nathen Dubé recommended this book. And while it’s the story of a massive corporation, it doesn’t read like a collection of boring essays. Rather, Samsung Rising is the true story of a family-run business that has grown from 40 employees to more than 300,000. After taking big risks and committing to building a technology empire, Samsung has nearly doubled in size in comparison to rivals Apple and Google. However, the road to creating a dynasty has been anything but smooth.

From Amazon: “Forty years ago, Samsung was a rickety Korean agricultural conglomerate that produced sugar, paper, and fertilizer, located in a backward country with a third-world economy. With the rise of the PC revolution, though, Chairman Lee Byung-chul began a bold experiment: to make Samsung a major supplier of computer chips. The multimillion- dollar plan was incredibly risky. But Lee, wowed by a young Steve Jobs, who sat down with the chairman to offer his advice, became obsessed with creating a tech empire. And in Samsung Rising, we follow Samsung behind the scenes as the company fights its way to the top of tech. It is one of Apple’s chief suppliers of technology critical to the iPhone, and its own Galaxy phone outsells the iPhone.”

Grab Samsung Rising today.

Salt & Straw Ice Cream Cookbook

Recently, we had the opportunity to attend a pre-opening event for the first Las Vegas location of Salt & Straw. Those who have visited a Salt & Straw ice cream shop know how creative the brand is when it comes to flavors. We also found their team’s service to be impeccable.

The Salt & Straw Ice Cream Cookbook, as you may imagine, shares the brand’s recipes. Impressively, these all spring from a “base” recipe that takes just five minutes to make. This recipe book should help to inspire your own desserts.

From Amazon: “Based out of Portland, Oregon, Salt & Straw is the brainchild of two cousins, Tyler and Kim Malek, who had a vision but no recipes. They turned to their friends for advice—chefs, chocolatiers, brewers, and food experts of all kinds—and what came out is a super-simple base that takes five minutes to make, and an ice cream company that sees new flavors and inspiration everywhere they look.

“Using that base recipe, you can make dozens of Salt & Straw’s most beloved, unique (and a little controversial) flavors, including Sea Salt with Caramel Ribbons, Roasted Strawberry and Toasted White Chocolate, and Buttered Mashed Potatoes and Gravy.

“But more importantly, this book reveals what they’ve learned, how to tap your own creativity, and how to invent flavors of your own, based on whatever you see around you. Because ice cream isn’t just a thing you eat, it’s a way to live.”

Image: Mikołaj on Unsplash