Snack | KRG Hospitality

Are Snacks Right for Your Menu?

by David Klemt

A trio of protein shake bowls on a wooden plank, resting on a bar top

Wow, AI-generated food that actually looks like food!

The latest “-ification” to take root in food and beverage centers around people favoring consuming several meals throughout the day.

The “snackification” of F&B menus across the industry is joining “gamification” in moving from trend to standard.

So, what is snackification, and is it right for your concept, brand, and menus?

Let’s start by tackling the first part of that question.

What is Snackification?

Looking at this word from the consumer side, snackification is the replacement of full-size meals with multiple snacks.

There are several factors to which one can point to explain how this behavior went from trend to mainstay. One prevailing theory posits that people snacked more often throughout the day during the pandemic. That particular behavior simply hasn’t fallen to the wayside.

Another driver may be cost. A percentage of consumers perceive “traditional” daypart dining as more expensive than opting for smaller items whenever they feel hungry. Whether true, false, or somewhere in between, this perception exists, and it’s strengthening snacks as a viable menu category.

Of course, there’s also the treat factor. Some people simply like to treat themselves, and a snack several times a week helps them fulfill this desire.

On the operator side, snackification is the embracing of snacks as a revenue generator.

Several restaurants have created snack sections on their F&B menus. Indeed, more than a mere handful of quick-service and fast-casual concepts are leaning into snacks.

However, the creation of QSR brands that focus on snacks truly illustrates the strength of snackification.

Should You Snackify Your Menu?

Making changes to your concept and menu requires careful consideration.

Jumping on any trend should also be done with caution; the same goes for changing an element of operations to embrace a new standard.

There are several questions that need answers before deciding to snackify your menu.

What items will you offer as snacks? With the rise in usage of GLP-1 drugs, protein-rich snacks are growing in popularity. A focus on wellness is also motivating consumers to seek out snacks that are lower in sugar and calories. However, sweet treats are still sought after. Again, careful consideration is key.
How well do you know your guests? Using data, can you say with confidence that you can leverage snacks successfully? Do you know what types of snacks will resonate with guests? Are the snacks you’re considering in alignment with your brand and concept, or will the change confuse guests?
Will offering snacks increase your costs? You need to know know with certainty how snack items will affect labor and food costs.
Will the change to snacking impact other dayparts? It’s possible the shift can cannibalize dayparts, which will affect your costs, traffic, and revenue.
Can you transform items already on your menu into snacks? Doing so could keep your costs under control, and help you make the shift quickly. What on your menu is high in protein, craveable, and able to be produced in smaller portions easily?

It’s quite likely that snacks will resonate with your guests. However, you need to know, not guess. What does your data tell you about traffic, item sales, and guest preferences?

As I’ve said before, success in this business comes down to math, not magic.

Image: Microsoft Designer

Restaurants in Canada: Daypart Performance

by David Klemt

For both in-person dining and off-premise consumption, more Canadian consumers are ordering from restaurants across all dayparts.

As Restaurants Canada points out in their latest report, traffic and sales remain lower than pre-pandemic levels. However, there are reasons to be positive.

For one example, Restaurants Canada predicts 2022 sales to return to pre-pandemic levels by the end of the year. The foodservice research and advocacy organization’s 2022 Foodservice Facts report provides another positive outlook.

Just looking at Q1 of this year versus Q3, all dayparts are seeing increases in traffic.

To read more about the report and grab your own copy, follow this link.

Numbers Tell the Tale

Per Restaurants Canada, the breakfast daypart slid significantly in 2020. During that time, it fell 20 percent that year.

For the first half of this year, however, Restaurants Canada reports that breakfast traffic is just four percent lower in comparison to 2019.

On a positive note, the breakfast daypart has risen steadily from March of this year to July, or Q1 versus Q3. In fact, all dayparts have grown.

According to Restaurants Canada, 43 percent of Canadians ordered breakfast from restaurants in March 2022. That number grew to 50 percent by July of this year.

In terms of snack purchases, 55 percent of Canadian consumers made purchases from restaurants. By July, that percentage rose to 62 percent.

Continuing along, 64 percent of Canadians placed lunch orders in March. Four months later, that number had increased to 73 percent.

Per the 2022 Foodservice Facts report, a significant percentage of Canadians are placing lunch and snack orders. In fact, Restaurants Canada says that Canadians are making purchases from restaurants during those dayparts two to three times per month.

Of course, there’s one more daypart we need to discuss…

Dinner is King

By the numbers, the dinner daypart is outperforming all others in Canada.

In March of 2022, 85 percent of Canadians had placed dinner orders at restaurants. That number rose to 87 percent in April but dipped to 86 percent in May.

However, dinner saw growth again in June and July, rising to 88 and then 89 percent, respectively.

As the numbers show, dinner orders are outpacing lunch orders 14 percent. Snacks are being outpaced by dinner by nearly 30 percent. Of all dayparts, breakfast is the weakest.

In fact, dinner outperforms breakfast by nearly 40 points. This makes sense when we consider the work-from-home effect.

More people working from home means, in theory, many less people commuting to work. Restaurants that once saw great breakfast daypart traffic are seeing a significant dropoff. Less people commuting means less people popping into a restaurant for breakfast.

It appears that instead, people are clocking in, working until break time, and then going to get a snack. And when lunch rolls around, why not place an order for lunch?

Naturally, after working all day, people are tired or eager to meet up with friends and family to socialize and decompress. So, dinner ruling the daypart roost makes complete sense.

In other words, operators looking to streamline should consider this Restaurants Canada data. The dayparts that require the most labor currently are lunch and dinner, so operators should plan accordingly if that’s viable for their business.

Image: CHUTTERSNAP on Unsplash