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Guests dining in a light, bright restaurant featuring a glass ceiling and hanging plants

August 6, 2024by David Klemt David Klemt No Comments

SevenRooms Drops Extensive 2024 Report

SevenRooms Drops Extensive 2024 Report

by David Klemt

Today, we’re taking a look at the first-annual trends report from marketing and operations platform SevenRooms, which focuses on the guest experience.

To gain an understanding of the current state of affairs in America, SevenRooms analyzed the product data of more than 3,000 US clients. Further, the platform engaged over 250 operators, and 1,000 consumers.

The result is a data-rich report that offers helpful insights for operators.

Two findings are particularly interesting to me, and the team here at KRG Hospitality. One, it appears that Americans are back to seeking out their third spots. As a refresher, a third spot, space, or place is where one spends time when away from home or work. Consumers tend to be loyal to these places, making them part of their everyday or weekend routine.

Two, younger consumers are leading the way in terms of restaurant visits. Per SevenRooms, 38 percent of Millennials visit restaurants five or more times per month. Gen Z is also visiting restaurants frequently, with 24 percent visiting five times or more. However, that number climbs to 45 percent for Gen Z when it comes to three or four monthly visits. Among Millennials, 33 percent visit restaurants three or four times per month.

That tells us that younger consumers are eager to socialize, and restaurants can fulfill that desire. As savvy operators know, a person can eat or drink at home; food and beverages are just excuses to get out, hang out, and meet new people.

This also tells us that operators need to ensure they’re ticking several boxes to resonate with younger guests: value, convenience, and personalization. I’ll add that consumers have shown they want to support brands with values that align with their own.

There are many more insights in SevenRooms’ new report, which you can find below. To view the report in its entirety, click here.

SEVENROOMS RELEASES 2024 RESTAURANT TRENDS AND DINER EXPECTATIONS REPORT FOR THE HOSPITALITY INDUSTRY

Annual report gives an inside look at how restaurants are delivering better guest experiences and personalizing their marketing in the age of AI and automation

NEW YORK (August 6, 2024) – SevenRooms, the leading CRM, marketing and operations platform for growing restaurants, today released its first annual trends report, “2024 Restaurant Trends and Diner Expectations,“ highlighting how restaurants are filling the need for ‘third places’, connection spots outside the home and workplace, what consumers expect from their dining experiences, and how restaurants are leveraging AI and automation to keep diners coming back.

The study, commissioned through independent third-party research firm Censuswide, examines consumer and foodservice operator insights, alongside data from SevenRooms restaurant customers. It emphasizes the importance of restaurants understanding their guests and providing experiences and value to consumers, including marketing and tech trends that operators are paying attention to.

Diners Expect More From Restaurants

While it’s no surprise that diner expectations have evolved in recent years, consumers across generations and cities share key expectations when dining out — they’re looking for convenience, personalization and value from brands they trust. Restaurants must nail all aspects of the guest experience, from hospitality and service to ambiance and atmosphere, to transform diners into brand ambassadors and get them to bring their dollars back more often.

When looking across generations, Millennials are driving a dining resurgence – dining out most frequently with 38% saying they dine out more than 5x a month. They are seeking more from their restaurant visits, and are willing to spend more for elevated experiences, like theatrical elements or high-end items like caviar. For these experiences, Americans are willing to spend up to $63 per person with 45% of Gen Zers open to paying even more. As diners focus on the quality over quantity of their experiences, that means restaurants must do more to keep those diner dollars. Dining upgrades consumers are willing to spend more fall into three categories – experiential, luxurious and personal, including:

Experiential (e.g. tableside martini cart; fish presentation or deboning, etc.)
○ Dallas – a menu item with some theater (86%)
○ Washington DC – a menu item with some theater (71%)
Personal (e.g. birthday dessert; welcome drink)
○ Chicago – a mocktail or personalized item (55%)
Luxurious (e.g. caviar, freshly shaved truffles, seafood tower)
○ Los Angeles – high-end items like caviar (55%)
○ New York – high-end items like caviar (48%)

Outside of these experiential offerings, restaurants must also capitalize on influential factors that bring diners back. For example, 34% of Gen Zers want personalized surprises in service like a free dessert. Meanwhile, 26% of Millennials care about the ease of making a reservation and 24% of Gen Xers consider the rapport they develop with front-of-house staff. Tailoring guest experience and service helps operators turn one-time diners into loyal customers.

“New consumer demands are pushing restaurants to find the right balance between hospitality and automation to create the experiences guests crave and return for,” said Joel Montaniel, CEO & Co-Founder at SevenRooms. “Diners want both access and recognition when spending their hard-earned dollars, and restaurants must embrace new strategies – and technologies like AI and automation – to enhance hospitality at every touch point. Whether leveraging platform data to personalize diner experiences or power marketing and retention programs, technology and data serve as a vehicle to execute hospitality that guests remember and return for. When technology is used effectively, it allows operators to focus on building deeper connections and delighting guests, one experience at a time.”

Loyalty is Never One-Size-Fits-All

In the U.S., there was a 21% year-over-year increase in reservations comparing Q1 2023 to Q1 2024 and restaurants are looking to a promising future. Whether operators are focused on opening new locations or revamping their social media marketing efforts, one factor remains the same – establishing personal relationships with diners is the strongest way to build and maintain loyal customers.

Consumers have a strong intent to dine with their favorite brands. If a guest can’t get a reservation at their preferred restaurant, 39% of guests look for a sister restaurant to dine at, and 27% check other sites for the same restaurant.

Cultivating loyalty is critical. Loyalty is not a one-size-fits-all effort and diners have different interests when it comes to the benefits they seek out from loyalty programs. Restaurants need to understand their diner demographics to curate operations and offerings, getting their guests to not only return more often but spend more in the process.

38% of diners who would spend $89-$126 on an average night are looking for exclusive VIP events, while 33% of consumers who dine out 7-8 times per month want VIP access to specialty seating areas. Breaking down generational differences:

72% of Gen Zers care most about free menu items
30% of Millennials care most about VIP access to specialty dining areas
1 in 5 Gen Xers and Baby Boomers want early access to reservations

Genuine, Tailored Marketing is Critical to Success

When it comes to marketing, authenticity and personalization reign supreme for consumers. Guests want to be known by their favorite restaurants, and restaurants want to know and understand their guests. To reach these consumers, and serve up personalized marketing that makes guests want to return, restaurants have to use all the tools in their arsenal – from social media to email and text marketing automation – to create high-touch communications that are both authentic and personal.

79% of restaurant operators spend the majority of their marketing budget on social media. Their top social media goals are to drive bookings or online orders (39%), increase brand awareness (29%) and communicate with their audiences (29%). But not all content is created equal – 39% of operators say that organic posts drive the most bookings to their restaurants. Restaurants that showcase their personality – highlighting their team, food and drinks and atmosphere – will win with consumers as they look for more genuine content from brands.

Most diners like hearing about restaurant promotions and offers via email and text, and aren’t as interested in social media DMs or phone calls, but specific preferences vary by generation. 41% of Gen Zers prefer text marketing, whereas 38% of Millennials and 37% of Gen X prefer email marketing.

With targeted Email Marketing, the data report notes that operators see 23% higher open rates and 28% higher click-to-open rates, generating 2x more revenue per email. Text marketing is fairly new for restaurants, but has huge potential, with an average open rate of 98% and $1.64 average reservation revenue generated per text message on SevenRooms. For one SevenRooms customer, Fabio Viviani Hospitality, it drove $220,000 in revenue and 3,000 new guests in just 4 months.

“The biggest thing that excites me about text messaging is that it’s very hard to ignore. When our phones beep, we are just driven to look at them,” said Harry Kaminski, CMO at Fabio Viviani Hospitality. “It’s easier to ignore an email than it is a text.”

Artificial Intelligence (AI) Comes into Play

Every industry today is using AI and automation in some way to streamline their operations and help staff work more efficiently – and the same is true for the restaurant industry. 70% of operators surveyed said they use artificial intelligence in some way to run their business, including:

35% – Processing reservations
34% – Inventory management
33% – Data analytics
27% – Scheduling
26% – Dynamic pricing

But there is room to grow with AI, with only 16% saying they use it to create marketing collateral and 15% for staff hiring and training. With personalized marketing a large focus for operators in 2024 and beyond, as well as hiring and retaining staff to deliver on high-touch hospitality, operators have an opportunity to use AI more effectively.

“AI elevates our storytelling around data,” said Kelly MacPherson, Chief Supply Chain and Technology Officer at Union Square Hospitality Group. “We have a wealth of data at our fingertips, but this can create analysis paralysis. With AI, we can more efficiently synthesize the data, create stories about what’s happening, why it’s happening, and what we can do about it, and then present these stories to our teams in a digestible format with actionable next steps.”

For more information about SevenRooms and to download the full report, please visit here.

About SevenRooms

SevenRooms is a CRM, marketing and operations platform for growing restaurants in the hospitality industry. From Michelin star gems to local favorites, the all-in-one platform helps restaurants increase sales, delight guests, and keep them coming back, automatically. The full suite of products includes reservations, waitlist and table management, review aggregation, referrals, email marketing, and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures and PSG, SevenRooms has more than 10,000 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, Union Square Hospitality Group, Australian Venue Co., Maple & Ash, The Wolseley Hospitality Group, Dishoom, Groot Hospitality, MLSE, Live Nation and Topgolf.

Research Methodology

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 1,004 U.S. consumers. Fieldwork was undertaken between March 4-11, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 16+).

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 251 U.S. operators (hospitality decision-makers). Fieldwork was undertaken between March 4-19, 2024. The survey was carried out online. The figures have been weighted and are representative of U.S. hospitality operators.

SevenRooms provided anonymized internal data representative of U.S.-based restaurants using the SevenRooms platform and surveyed a sample of operators at various restaurant sizes and types across the U.S. from March-May 2024.

Image: kayleigh harrington on Unsplash

A well-crafted chicken sandwich with pickles, lettuce, and sauce, served next to a basket of French fries

July 29, 2024by David Klemt David Klemt No Comments

Campbell’s Shares Tips for LTOs

Campbell’s Shares Tips for LTOs that Generate ROI

by David Klemt

Yes, the Chicken Sandwich Wars are still going strong in 2024.

We appreciate Campbell’s Foodservice’s reports and posts, and their most recent insights address how operators can succeed with LTOs.

For example, our look into their tips for leveraging nostalgia is here. And our thoughts on Campbell’s Culinary TrendPulse 2024 report are here for your review.

This time out, Campbell’s Foodservice, utilizing data from Technomic, Datassential, and other sources, is tackling LTOs.

If you’re a regular reader of KRG Hospitality’s industry insights, you know we love an LTO—if an operator executes it effectively. Along those lines, you probably also know that we view Taco Bell as a leader in the industry when it comes to leveraging the power of LTOs.

Not only does the QSR giant know what their guests want, they know how to generate demand. In fact, Taco Bell understands the power not just of LTOs but of tying them to their subscriptions. Take, for example, their Taco Lover’s Pass and the Toasted Breakfast Taco menu drop.

When approached with thoughtful consideration, well-executed LTOs are a crucial element of an operator’s marketing and branding strategy. They drive traffic and sales, boost guest engagement and loyalty, and attract attention from first-time guests.

Of course, crafting a gainful LTO—gaining profits, loyalty, and positive public perception—can be easier said than done. However, there are a number of steps you can take to get the ball rolling and come up with one that reflects your brand, and resonates with guests.

Four Steps

Kicking off their tips, Campbell’s Foodservice recommends keeping LTOs simple. As they say in their report, which you can read here, operators need not “reinvent the wheel” when developing these promotions.

You can differentiate an LTO menu item from its standard counterpart in a number of simple ways. A few examples are using a unique cooking process, crafting a limited-edition sauce, and featuring a distinctive and specific topping or two.

Another tip is to do your best to offer LTOs that embrace current trends. While sharing these tips, Campbell’s cites Datassential and the revelation that just 20 percent of all LTOs are recurring. That means that the vast majority of LTOs are new creations, not stalwarts like the McRib. To draw the attention of a wider swath of guests, feature regional and local items and flavors. Per Datassential, 70 percent of guests are interested in such LTOs.

Speaking of attention, operators should learn how to take and edit attractive F&B images. Or, as Campbell’s says, “make LTOs pretty.” Per Datassential, roughly a third of consumers will try an LTO if it looks appealing in an advertisement or in-store imagery.

Finally, and this one is crucial as it embodies the previous three tips, leverage seasonality. It’s currently summer, so what can you add in the way of flavor to an existing item? Is that item regional and locally sourced? Will photographing it and crafting a sharp post communicate the season and inspire a bit of FOMO? These questions can help guide your approach to crafting profitable LTOs.

Oh, and to help you get started, I’ve shared Campbell’s season flavor suggestions below. Cheers!

Campbell’s Foodservice Seasonal Flavors

Not only did Campbell’s share tips for succeeding with LTOs, they also provided several examples of seasonal flavors to inspire you and your team.

Since it’s July, I’ll start with their summer suggestions.

Summer: basil, blackberries, corn, cucumbers, peaches, tomatoes, watermelon, zucchini

Fall: artichokes, cranberries, edamame, parsnips, pears, pumpkin, sweet peppers, tomatillos, turnips,

Winter: butternut squash, persimmons, radishes, salsify (a root vegetable), sunchokes, sweet potatoes, tangerines

Spring: asparagus, fava beans, pea greens, rhubarb, snap peas, spring onions, strawberries

Campbell’s Foodservice sources:

Foodservice and Hospitality: A strong LTO strategy helps operators retain and grow their customer base (March 2024)
Datassential: Limited Time Offers Keynote Report
Technomic: 162 Best-in-Class LTOs for 2023
Food & Drink Resources: A Limited Time Offer Strategy For Restaurants
Your Guide to Seasonal Fruits and Vegetables, The Spruce Eats
Datassential: State of the LTO 2024

Image: Hybrid Storytellers on Unsplash

May 24, 2024by David Klemt David Klemt No Comments

Want to Leverage Nostalgia? Spin It

Want to Leverage Nostalgia? Put Your Spin on It

by David Klemt

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

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

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

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

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

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

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

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

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

“New” Nostalgia

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

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

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

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

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

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

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

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

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

Image: Alex Haney on Unsplash

Pop art image of a giant money bag wrapped in golden chains looming over a city skyline

April 30, 2024by David Klemt David Klemt No Comments

The Top 10 Restaurant Chains in 2023

Check Out the Top 10 Restaurant Chains by Sales in 2023

by David Klemt

Well, I asked for an image of a giant money bag wrapped in golden chains, looming over a city skyline. Nailed it, AI.

Technomic data reveal the top-performing restaurant chains in the United States of America by sales volume in 2023, and number one won’t be a surprise.

For a bit of context and history, Technomic has been ranking the top chain restaurants in the US since 1978. And, according to reporting, the same chain has held the number-one spot every year.

Feel free to take a moment and make your guess as to which chain continues to lead all others each year.

Alright, if you guessed McDonald’s, congratulations.

Not only is McDonald’s the largest chain in the US by sales, the company outperformed the rest of the list by a significant margin. In 2023, McDonald’s generated more than $53 billion in sales via more than 13,450 units.

That’s nearly $20 billion more in sales than the chain that clinches the number-two spot. Going deeper, that’s more than double the sales of the number-three restaurant chain. In fact, McDonald’s generated just a $100 million dollars less than the sales of the second- and third-biggest chains combined.

Coming in at number two is Starbucks, achieving sales of $31.6 billion in the US from 16,466 units. Number three is Chik-fil-A, seeing $21.6 billion in sales through 2,964 stores.

The Top 10 Chain Restaurants in the US

Below, the full list of the ten top-performing restaurant chains in the US.

Perhaps unsurprisingly, quick- and limited-service restaurants account for the entirety of the top-ten list.

Notably, each of the ten chains saw sales growth last year, though that growth fluctuates from chain to chain. Some, like Chipotle, increased sales by more than 15 percent. For others, like Subway, growth was just over two percent.

Further, just two of the top-ten chains shuttered locations in 2023. Last year, Burger King reduced its US footprint by almost four percent. Likewise, Subway shrunk by two percent.

Judging by the sales numbers, closing stores last year may have proven to be a smart business decision for Burger King and Subway.

Domino’s: $9 billion (up 3.1 percent)
Chipotle: $9.9 billion (up 15.3 percent)
Subway: $10 billion (up 2.1 percent)
Burger King: $11 billion (up 6.6 percent)
Dunkin’: $11.9 billion (up 5.7 percent)
Wendy’s: $12.3 billion (up 5.1 percent)
Taco Bell: $15 billion (up 8.2 percent)
Chik-fil-A: $21.6 billion (up 14.7 percent)
Starbucks: $31.6 billion (up 12.5 percent)
McDonald’s: $53.1 billion (up nine percent)

Ending on one more interesting revelation, one chain moved up the list. Bear in mind, this is no small feat.

Domino’s, once number nine on the list, was passed by Chipotle in sales last year. We’ll see if anything changes when Technomic reveals next year’s rankings.

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

A cheeseburger with chicken patties, pizza, and steak on it

March 25, 2024by David Klemt David Klemt No Comments

Which Chains are America’s Favorites?

NRN & Technomic Identify America’s Favorite Chains

by David Klemt

Alright, which one of you maniacs out there is going to make this AI-generated chicken-patty-pizza-steak burger a reality and put it on your menu?

Toward the beginning of 2024, Nation’s Restaurant News collaborated with Technomic to identify America’s favorite restaurant chains.

To my understanding, this is the first such partnership between the independent foodservice publication and the foodservice intelligence platform.

Providing more than just a glimpse into America’s favorite chains, the rankings span several categories. For instance, the partnership between NRN and Technomic reveals the top QSRs, along with the country’s favorite fast-casual, family-style, and miscale restaurants.

However, the top three chains across more granular categories are also identified. Examples include America’s favorite chicken, pizza, burger, and Mexican restaurants.

In fact, I’m going to kick things off with the more specific, specialized categories. Then, I’ll move into the broader segments.

That said, I encourage you to review NRN‘s article revealing America’s favorite midscale, casual, QSR, etc. restaurants for yourself. Written by Joanna Fantozzi, the piece is full of valuable insights beyond simple rankings.

Further, you may find it interesting to compare these rankings to the results of BrandVue’s Most Loved Eating Out Brands 2023 report, which we reviewed here.

Cheers to NRN and Technomic! Here’s to hoping that this becomes an annual release.

Beverage or Snack

Tropical Smoothie Cafe
Smoothie King
Jamba

Burger

Culver’s
In-N-Out
Freddy’s Frozen Custard & Steakburger

Chicken

Chick-fil-A
Jollibee
Raising Cane’s

Italian (FSR)

Carrabba’s Italian Grill
Maggiano’s Little Italy
Mellow Mushroom

Mexican

Chuy’s Tex-Mex
Torchy’s Tacos
Moe’s Southwest Grill

Pizza

Papa Murphy’s
Marco’s Pizza
Cici’s Pizza

Sandwich

Jersey Mike’s Subs
Newk’s Eatery
Jason’s Deli

Steak

Ruth’s Chris Steak House
Fleming’s Prime Steakhouse
Longhorn Steakhouse

Varied Menu

Seasons 52
Bahama Breeze Island Grille
Cooper’s Hawk

QSR

Dutch Bros Coffee
Topical Smoothie Cafe
Smoothie King
Cold Stone Creamery
Chik-fil-A

Fast Casual

Jersey Mike’s Subs
Newk’s Eatery
Jason’s Deli
McAlister’s Deli
Sweetgreen

Family Style

First Watch
Cracker Barrel
Golden Corral

Casual

Seasons 52
Bahama Breeze Island Grille
Bonefish Grill
Longhorn Steakhouse
Cooper’s Hawk

Midscale

First Watch
Cracker Barrel
Golden Corral
Shoney’s
Black Bear Diner

Favorite Chains: Overall

Ruth’s Chris Steak House
Season 52
Dutch Bros Coffee
Fleming’s Prime Steakhouse
Bahama Breeze Island Grille
Longhorn Steakhouse
Cooper’s Hawk
Tropical Smoothie Cafe
The Capital Grille
Smoothie King

When it comes to this list of the top-ten favorite chain restaurants, Technomic data scores a number of crucial insights.

Click here to see how each of these industry leaders ranked in:

Service and hospitality
Unit appearance and ambience
F&B
Convenience and takeout
Value

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

Slice of pepperoni pizza on a plate, on top of a table

March 22, 2024by David Klemt David Klemt No Comments

Slice Releases 2024 Report

Indie Pizzeria App Slice Releases 2024 Report

by David Klemt

Still the most popular pizza topping.

It’s finally here, one of our favorite food-forward hospitality industry reports providing operators with valuable insider insights.

In keeping with tradition, Slice released their 2024 Slice of the Union report the day before National Pizza Day. Truly, this is one of the reports I most look forward to each year.

As one would expect, the fifth-annual Slice of the Union is stuffed with helpful information.

Before we dig in, a quick rundown of Slice. The platform serves all 50 states and works with more than 20,000 independent pizzerias. To put that in context, that’s a network of pizzerias in the US larger than Domino’s, Little Caesars, and Pizza Hut combined.

If you’re an independent pizzeria owner and you have yet to partner with Slice, I encourage you to look into doing so. Should a partnership with Slice be feasible, it should increase brand awareness, engagement, traffic, and revenue to a notable degree.

Seasoning

Kicking things off, Slice sprinkles a bit of trivia onto this year’s report.

Last year, consumers apparently gorged themselves on pizza. How much was eaten? Just over 29,000 tons.

Providing context, Slice says to imagine 11,572,064,136 pennies. That’s a Scrooge McDuck dive-worthy pile of coins.

However, one category of pizza experienced a drop in popularity last year. According to Slice, pizzerias saw a 5.21-percent dip in vegan pizza orders.

Now, on to toppings.

Toppings

There’s a reason I chose a photo of a single slice of pepperoni pizza for this article.

Operators who track their data probably already know what I’m about to say: According to Slice, pepperoni is the most popular pizza topping in the US.

This is followed by, in descending order of popularity, mushrooms, sausage, extra cheese, onions, bacon, and black olives. For those wondering, kale was one of the “least-loved” toppings last year.

If you read through the 2023 Slice of the Union report or read our article reviewing it, you know they made a couple of trend predictions. Last year, Slice guessed that pickle pizzas would be in demand. Well, they were right. Orders for pickle pizzas jumped by 32 percent in 2023.

So, when Slice makes a pizza-based prediction, it’s probably in your best interest to take it to heart. Oh, wait—Slice has a prediction for 2024. According to the platform, tinned fish will be a standout pizza topping this year.

Sauce

In case you’re wondering about how much data Slice has at their fingertips, here’s an interesting bit of trivia. Last year, 4,744 people ordered pizzas with anchovies, garlic, or onions on Valentine’s Day. Alrighty, then.

They also know that orders for pizza with pineapple as a topping saw an increase of nearly six percent in 2023.

Further, the 2024 Slice of the Union reveals the most and least “pizzaful” days of 2023. The former? December 1. And the latter? Thanksgiving.

Last year, Fridays accounted for the most orders, at 23.5 percent. However, only 8.7 percent of pizza orders were placed on Mondays.

For data that’s a bit more esoteric, what if Slice could reveal which Zodiac signs order the most and least pizza? Would this be useful to operators? Honestly, it could be, I suppose. Particularly for those who have loyalty programs and engage with their guests via email and text marketing.

Apparently, a Taurus (April 20 to May 20) is the most likely to order pizza. Conversely, Capricorns (December 22 to January 19) either don’t like placing food orders in general or don’t like eating pizza specifically, because they ordered the least amount last year.

By the way, if you happen to operate a pizzeria in New Jersey, you may want to search for a guest named Dominic. According to Slice, someone named Dominic in NJ placed 348 pizza orders in 2023. Sounds like Dom has earned a special perk from his favorite pizza joint.

Extra Cheese

Pizzeria owners and their teams in Hawaii, Alabama, Oregon, South Carolina, and Montana may have the happiest wallets. That’s because people who ordered pizza for delivery in those five states tipped their drivers the most.

However, people who order pizza in Washington may have slightly lighter wallets than their fellow Americans. That’s because while the average price for a large cheese pizza in the US is $18.33, that number jumps to $25.75 in the Evergreen State.

If you’d like to see the average price for a large cheese pizza in each of the 50 states, click here. As an example, the average price in Nevada (KRG Hospitality’s American HQ is in Las Vegas) is $21.09.

Speaking of price, while Dom in NJ placed the most pizza orders, Frances in New York placed the most expensive order last year: $2,867.07. Frances, I want to attend one of your pizza parties (I think).

Finally, let’s end on data that can help operators when reviewing their labor costs. On average, pizza delivery distance was 9.14 miles in 2023. And, on average, pizzerias completed the process of producing an order and delivering it in 42.5 minutes.

For more insights from the 2024 Slice of the Union, click here.

Image: Sydney Troxell on Pexels

March 15, 2024by David Klemt David Klemt No Comments

What are You Changing in 2024?

What are You Changing in Your Restaurant or Bar in 2024?

by David Klemt

More fun with AI-generated images. That’s quite the busy bar setup.

Toward the end of last year, Nation’s Restaurant News identified what changes operators chose to make after analyzing their operational data.

The publication surveyed hundreds of operators about how data drove their decisions. This survey was an element of their year-end report, Market Leader Report: The Data-driven Restaurant.

As one would imagine, this report focuses on data collection, analysis, and usage. However, NRN‘s report doesn’t just address the importance of data collection in the F&B space. Rather, they seek to understand if operators are collecting the “right” data; whether they can optimize the data they collect; what metrics they’re tracking; and how they’re acting on all that data.

Simply put, it’s an important report addressing a topic crucial to today’s restaurant and bar operations. Those who want their own copy of The Data-driven Restaurant can download it free here.

While entire report is valuable, the focus of this article is one question and the answers provided. Below, to provide context, is a breakdown of the survey respondents.

The Who

Most of the respondents identified as independent restaurant operators.

Indie: 37 percent
Chain (franchisee): 21 percent
Chain (company owned): 18 percent
Multi-concept: 15 percent
Single-site operator: 6 percent
HQ or brand level of foodservice company: 3 percent

By a slim margin, most survey respondents categorized their restaurants as full service or casual dining.

Perhaps unsurprisingly, the fewest respondents operate in the upscale or fine dining category.

Full service / casual dining: 30 percent
Fast casual: 28 percent
Quick service: 20 percent
Midscale / family dining: 15 percent
Upscale / fine dining: 7 percent

The What

So, what question caught our attention at KRG Hospitality?

“In the past 12 months, which initiatives did your organization undertake after analyzing data?”

NRN conducted this survey in November 2023. Not surprisingly, respondents mostly made changes to their menus after reviewing their data. Streamlining menus and adjusting prices were two of the biggest operational trends last year, as many operators are no doubt well aware.

That theory is supported by the survey results. Below, the top four answers to the question above.

Changed menu prices (48 percent)
Removed items from or added items to our menu (47 percent)
Improved the way we trained our staff (26 percent)
Adjusted our loyalty program’s rewards and/or incentives (24 percent)

Honestly, it’s heartening to see that training is among the top-three data-driven actions operators took last year. And, of course, it’s not shocking that the menu was the focus of the most attention. Streamlining is an effective way to reduce food and labor costs. Further, pricing is always (please excuse the pun) on the menu.

Our question is: What changes, if any, do you plan to implement this year now that we’re headed into Q3?

The What: The Sequel

If the menu received the most attention after operators reviewed their data, what received the least?

Well, it appears marketing fell to the wayside, along with the kitchen. The following are the bottom four answers to the question in the section above:

A/B tested marketing campaigns and increased ROI (6 percent)
Changed specs on our kitchen equipment or technology (10 percent)
Identified lapsed customers and marketed to them (11 percent)
Increased throughput in our kitchen during peak periods (13 percent)

Now, I’ll concede that one marketing action found itself in the middle of the pack when it came to this survey question. Upon analyzing their data, 18 percent of respondents identified new potential guests and marketed to those people.

Still, in comparison to making changes to menus, the fewest respondents took marketing action or made changes to the kitchen directly.

Does this mean that menu changes have the greatest impact on guests and ROI? Well, that’s possible. However, I think something else is at play.

Personally, I think collecting data is the easy part. At this point, most platforms serving our industry are collecting data for operators.

But tracking the correct metrics, analyzing the associated data, and knowing what to do after analyzing said data? That’s difficult. It can be overwhelming, which is why it’s so important to build and implement the proper tech stack for a specific concept. This is why one of the services we offer our clients is tech-stack development.

Further, the tech stack needs to be built around an operator and their leadership team. If nobody knows how to use it or what to do with the data they’re collecting, it’s useless.

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

February 21, 2024by David Klemt David Klemt No Comments

Did This Beer Win Super Bowl LVIII?

Did This Beer Win Super Bowl LVIII?

by David Klemt

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

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

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

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

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

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

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

Study Methodology

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

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

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

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

Study Results

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

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

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

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

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

Image: cottonbro studio on Pexels

Aerial photograph of Pittsburgh, Pennsylvania, at night

February 7, 2024by David Klemt David Klemt No Comments

Best and Worst Cities for Servers

Service Wins and Woes: Best and Worst Cities for Servers

by David Klemt

A recent survey from gaming industry site Casinos.US identifies the 25 best and two-dozen worst cities for servers in America.

I can share two details about the methodology that Casinos.US employed.

One, they surveyed 2,000 current and former hospitality professionals. And two, they were asked to rate the overall rudeness of their guests on a scale of one to ten. One is the kindest, ten is the rudest.

Further, I can share that the average rudeness of guests being served in the US is 4.9 out of ten. Unfortunately, the three worst cities on the Casinos.US list rank between 7.0 and 7.6 on the rudeness scale. In fact, 22 of the 24 worst cities come in at 5.0 or above.

No city is perfect. The best of the best earns a score of 2.0, with the next best hitting a 3.0. Still, not bad at all.

Sadly, 45 percent of respondents reported finding themselves interacting with rude guests at least twice per day. As far as the worst of the worst, respondents identified “older adults” as the rudest, and Sunday as the day of the week with the most incidents. Do with that information as you will.

There are two sides to the coin, of course. Impressively, 24 percent of respondents “rarely” encounter rudeness from guests. Even better, 28 percent don’t expect to come across rude guests on a daily basis at work. So, there’s some hope out there.

To review the results of this survey for yourself, click here.

The Worst

Alright, let’s get it out of the way. Below, the worst cities in America for servers, according to Casinos.us.

To the right, their rudeness score. Again, the score is out of ten, with ten being the absolute worst.

Washington, DC (4.9)
Orlando, Florida (4.9)
San Antonio, Texas (5.0)
Sacramento, California (5.0)
Columbus, Ohio (5.0)
Buffalo, New York (5.0)
Houston, Texas (5.1)
St. Louis, Missouri (5.1)
Atlanta, Georgia (5.1)
Louisville, Kentucky (5.3)
Miami, Florida (5.3)
Nashville, Tennessee (5.4)
New York, New York (5.4)
Phoenix, Arizona (5.6)
Detroit, Michigan (5.7)
San Diego, California (5.8)
Las Vegas, Nevada (5.8)
New Orleans, Louisiana (5.8)
Milwaukee, Wisconsin (6.0)
Providence, Rhode Island (6.3)
Oklahoma City, Oklahoma (6.3)
Jacksonville, Florida (7.0)
Cincinnati, Ohio (7.0)
Virginia Beach, Virginia (7.6)

This list, if accurate, leaves me with one question: What’s going on, Virginia Beach? Sheesh. Calm down—your side of ranch isn’t that important, I promise.

It’s tempting to label this a tourist issue. Well over 10 million people—nearly 20 million in 2019—visit Virginia Beach annually.

And, hey, look at the rest of the list; it’s loaded with destination cities that draw millions upon millions of tourists each year.

However, when you look at the list of the best cities for servers below you’ll find more destination cities.

The Best

Now that we know the worst, let’s check out the best.

The cities below rank the lowest as far as rude behavior from guests.

Dallas, Texas (4.8)
Minneapolis, Minnesota (4.8)
Boston, Massachusetts (4.8)
Birmingham, Alabama (4.8)
Salt Lake City, Utah (4.8)
Los Angeles, California (4.7)
San Francisco, California (4.7)
Philadelphia, Pennsylvania (4.7)
Raleigh, North Carolina (4.6)
Riverside, California (4.5)
Kansas City, Missouri (4.5)
Seattle, Washington (4.5)
Charlotte, North Carolina (4.4)
Richmond, Virginia (4.3)
Cleveland, Ohio (4.3)
Indianapolis, Indiana (4.2)
Chicago, Illinois (4.1)
Denver, Colorado (4.1)
Portland, Oregon (4.0)
Tampa, Florida (3.8)
Hartford, Connecticut (3.8)
Austin, Texas (3.8)
Baltimore, Maryland (3.7)
Memphis, Tennessee (3.0)
Pittsburgh, Pennsylvania (2.0)

Philly may be the City of Brotherly Love but the Steel City, Pittsburgh, is the best for servers in terms of guest behavior. At least, according to Casinos.US.

If you live in one of the cities above, go out to bars and restaurants, and aren’t a jerk to your servers, congratulations on being a decent person.

Takeaway

Let’s say you’re an owner, operator, or leadership team member. And let’s say you operate or work in one of the cities above, whether the best or worst.

If your service team routinely on edge, regularly upset, find out why. Leaders look out for their teams and strive to provide a healthy work environment.

I’m not saying you need to get into the details of their personal lives. What I am saying is that if there are issues in the workplace, you need to get to the bottom of them. More importantly, you then need to engage the team and get their feedback.

How do they want guest issues handled by the leadership team? Are their problematic regulars who need to be “fired” to protect the team? Some guests simply aren’t worth the revenue and tips in exchange for the emotional and mental distress they’re inflicting on the team.

That is, however, something that must be discussed. Most importantly, when the feedback is taken into account and a procedure is put in place, leadership must adhere to it and act accordingly. Any deviation will result in a loss of trust, and that will decimate team morale even more quickly than an encounter with a rude guest.

Lose trust from your team, lose the business.

Image: Venti Views on Unsplash

February 6, 2024by David Klemt David Klemt No Comments

Pizza Today Reveals Top New Cheeses

Pizza Today Reveals Top New Cheeses for 2024

by David Klemt

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

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

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

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

Top Pizza Styles, Nationally and Regionally

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

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

And now, the top trending pizza styles.

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

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

The West

New York Style
Traditional America
California/American Artisan
Sicilian
Neapolitan

The South

New York Style
Traditional America
Sicilian
Deep Dish
Neapolitan

The Midwest

Traditional America
Chicago Thin
New York Style
Deep Dish
Detroit

The Northeast

New York Style
Sicilian
Traditional America
Neapolitan
Grandma

Top Pizza Toppings, Nationally and Regionally

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

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

Now, the top toppings across the US.

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

Below, how toppings break down regionally.

The West

Pepperoni
Sausage
Mushroom
Chicken
Bacon

The South

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon

The Midwest

Pepperoni
Sausage
Mushroom
Bacon
Onion

The Northeast

Pepperoni
Sausage
Mushroom
Extra cheese
Bacon

Top “New” Cheeses

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

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

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

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

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

Scamorza

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

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

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

Vegan Cheese

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

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

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

Image: Pablo Pacheco on Unsplash