Statistics | KRG Hospitality

Barbecue chicken wings, chili peppers, and chili flakes

August 15, 2023by David Klemt David Klemt No Comments

Top-performing Menu Items in the US

Top-performing Menu Items in the US (So Far)

by David Klemt

Thanks to a recent mid-year report from F&B intelligence platform Datassential, we now know the top-performing menu items in the US.

For the low, low price of filling out a handful of fields, you can download a copy of Datassential’s “Foodbytes: 2023 Midyear Trend Report” for yourself.

There’s plenty of useful data packed into this short report. You may find some of the top food items a bit surprising.

But First…

Datassential does more than just list the top mid-year menu performers in their latest report. There are also a couple of interesting datapoints for operators to consider.

The first piece of information is an alarming statistic: 54 percent of consumers are of the belief that “tipping culture has gotten out of control.”

As we’ve reported earlier, it’s likely that a major driver of “tip fatigue” comes from retail. The expectation for consumers to tip at a restaurant, bar or nightclub is ingrained deeply in American culture.

However, consumers throughout America are being prompted to tip after just about every transaction they’re attempting to complete. In fact, it’s not just retail that has been encouraging (in some cases, guilting) people to tip. Some contractors are also adding tip lines when handing over tablets to clients so they can pay their invoices.

One result is that servers and bartenders are reporting lower tips; guests are so over tipping that they’re pushing back against the practice in venues where they’d traditionally have no problem doing so.

Of course, tip fatigue isn’t the only reason consumers are pushing back against tipping. Many people feel that operators should increase what they pay staff. Indeed, some people feel that operators are asking them to subsidize their employee pay. Whether they’d be happy to pay higher prices remains to be seen.

Fads Aren’t Bad?

Whenever we cover trends or discuss them with clients, we caution against chasing too many (or the “wrong” trends). And fads? It can be even riskier to hop on the bandwagon of something that may never even reach the trend stage of its lifecycle.

However, likely due to the ubiquity of TikTok, consumers expect restaurants to embrace fads. According to Datassential, 67 percent of consumers overall “want to see more fads at restaurants and retail.”

That number jumps to 74 percent when focusing on Millennials and Gen Z.

So, while we still caution operators about jumping on fads (or “micro trends”) and trends, that doesn’t mean be too cautious. If a fad or trend works with your brand and won’t cost much to feature, at least give it consideration.

Not sure you’re great at identifying fads that will work for your business? Ask your staff which fads and trends are hot at the moment.

Speaking of Hot…

Alright, let’s take a look at the F&B items Datassential identifies as popular at the midway point of 2023.

Again, I encourage you to download the report in its entirety. You can do just that by clicking here.

But for those who want instant gratification, check out these menu items:

Super Duper: Let’s kick things off with the hottest chain LTO, the Denny’s Super Slam. Per Datassential, restaurant chains have already featured in excess of 2,000 LTOs in 2023. The F&B intel agency tests them all, and the Super Slam is wearing the LTO crown at the moment.
Chef Chatbot: Datassential tapped ChatGPT to create a burger recipe and had Midjourney create an image for the resulting Caprese Avocado Burger. More than half of consumers surveyed—57 percent—want to try it at a restaurant.
Big Winner: Datassential asked consumers a simple question: Which would you rather eat for the rest of your life, a hamburger or a hot dog? A staggering 87 percent chose hamburgers, meaning just 13 percent of consumers would choose a hot dog over it’s burger buddy.
What a Pickle: Back in March we checked out Slice’s Slice of the Union report, and it predicted pickle pizzas would be a hot trend this year. Well, Datassential has crunched the numbers and says 40 percent of consumers are aware of this pizza style already. Looks like Slice may be proven right by the end of the year.
Speed Demon: Curious about the fastest-growing menu item on the US? Well, wonder no more: Datassential says it’s the barbecue chicken wing. Over the past year, they’ve grown 373 percent on menus across the States. Datassential posits the overall growth of chicken and the embracing of flavor trends like Carolina gold barbecue sauce are contributing factors.

There’s a lot to unpack here, so I’ll leave you to it. Just remember that when it comes to fads and trends, there’s a fine line between what’s hot, what’s not, and jumping on the wrong one. Good luck!

Image: Ahmed Bhutta on Pexels

Person with tattoos pouring coffee from French press

August 14, 2023by David Klemt David Klemt No Comments

Should You Offer Your Guests Brunch?

Should You Offer Your Guests Brunch?

by David Klemt

Is brunch on its way to becoming a lucrative daypart that can grow traffic, increase revenue, boost guest engagement, and promote loyalty?

If a report from Square is anything to go off, yes.

Owing in part to changes in consumer behavior from 2019 to now, brunch appears to be a solid traffic and revenue generator. The number of people working from home is impacting daypart spending, which makes sense. Traditional office workers will often pop into a QSR or cafe for coffee and breakfast on their way in to work. And when lunch rolls around, they tend to head out to restaurants nearby for their break.

Now, the data support the belief that more people are staying home on weekdays and unleashing pent-up demand for socializing and dining out on the weekends. And apparently that demand is rather voracious, because brunch appears to be on the rise.

In 2019, just over eight percent of all dining dollars were spent on Saturdays during traditional brunch hours. That has grown to just over ten percent this year.

In terms of engagement and bringing more brand awareness, the term itself is growing on social media platforms.

Along with revisiting hours of operation, it may be wise for operators to consider offering Saturday or Sunday brunch.

Bristory

Yes, that’s a brunch-style portmanteau of “brunch” and “history.” No, I’m not proud of myself but I’m leaving it in.

The portmanteau “brunch” is believed to have first been coined by a British writer named Guy Beringer in 1895. He included the word in an article he wrote for Hunter’s Weekly. Beringer was making the case for noontime meal that combined breakfast and lunch.

In arguing for what may be the world’s first hybrid meal, Beringer wrote that, “the arguments in favor of Brunch are incontestable. In the first place it renders early rising not only unnecessary but ridiculous. You get up when the world is warm, or at least, when it is not so cold. You are, therefore, able to prolong your Saturday nights…”

The word would appear a year later in a Pennsylvanian publication called the New Oxford. More than 30 years later, brunch was on its way to becoming “a thing” in the US.

Oh, and there are arguments that an American reporter, Frank Ward O’Malley, who should credit for the word “brunch.” Those who believe this is the case say O’Malley created the portmanteau some time between 1906 and 1919. As is the case with many classic cocktails, the origin of brunch is at least somewhat hazy.

By the 1970s, the stigma that once came with brunch—that drinking publicly during the day could harm one’s reputation—began to dissipate.

Brunch by the Numbers

According to Square, brunch is appealing for several reasons.

Let’s take a look at this infamous daypart by the numbers.

9.8 percent: Growth in the number of restaurants in the US offering breakfast and brunch in 2022 alone.
10 percent: Amount of overall spending in restaurants on Saturdays between the hours of 8:00 AM and 1:00 PM in 2023.
35 million: Number of #brunch Instagram posts, and the number is growing.
4.5 billion: Number of TikTok views of posts with #brunch.
71 percent: Number of Americans who wish restaurants in the US would serve breakfast items all day.

To me, the most striking statistic is that brunch spending now accounts for ten percent of all restaurant spending.

That spend is logical when we think about who tends to enjoy brunch: people with time and money to spend on a leisurely, all-day meal.

As professor Farha Ternikar, author of Brunch: A History, has said, “Brunch continues to grow anywhere there is disposable income or time.”

So, operators who are considering offering brunch for the time or investing more into brunch have some questions to answer: Who is my target audience? What’s the population density of my market? Who has disposable income and time? Should I offer brunch on Saturday, Sunday, or both days? Does brunch work for my concept? Which venues near me are already offering brunch?

Answer those questions and speak with your staff before jumping feet first into this potentially lucrative daypart.

Image: Helena Lopes on Pexels

August 4, 2023by David Klemt David Klemt No Comments

iPourIt Releases Their 2023 Pour Report

iPourIt Releases Their 2023 Pour Report

by David Klemt

Interactive self-serve beer experience platform iPourIt‘s latest report, the 2023 Pour Report, is now available for download and review.

iPourIt is a pioneer in the self-serve beverage space. While it may seem counter-intuitive to some, many guests have shown time and again that they enjoy using self-serve walls. For these guests, a not in any way insignificant number, iPourIt installations enhance the guest experience, increase loyalty, and boost revenue.

And while many people associate iPourIt and self-serve programs with beer, these systems can also pour wine, cocktails on tap, spirits, non-alcohol beverages, and soft drinks.

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Another benefit from iPourIt? Transparency and sharing of data. The company doesn’t limit providing valuable guest behavior insight to their clients. Rather, they make the data they collect available to anyone. Simply head to their website, fill out a few fields, and gain important beverage insights.

Anyone curious can choose between a standard report and a “pro” version. Both are free to download and peruse. People can also read our article that dives into their fourth-annual report via this link.

Below you’ll find key takeaways from their 2023 report. I strongly urge operators to download and review either report.

The Who

We agree that demographics are a metric that people and businesses often misuse. Valuegraphics can be far more effective for businesses looking to build loyalty and boost revenue.

Still, demographics can provide beneficial insights.

First, let’s look at how men and women used iPourIt systems in 2022. Men poured 20,477,288 ounces last year, whereas women poured 10,848,435 ounces. The average per pour for men was 6.4 ounces in comparison to 5.3 ounces per pour from women. On average, men spent $14.72 per visit to an iPourIt-equipped location; women spent $12.24.

Next, the generational breakdown. IPA was the number-one style poured for Baby Boomers, Generation X, and Millennials. For legal-drinking-age Generation Z drinkers, IPA came in second; their top pour style was cider. Likewise, Lager claimed second place for Boomers, Gen X, and Millennials. Second was IPA for Gen Z, and Lager was third. Wheat beer was third place for Boomers, fourth for Gen X and Millennials, and fifth for Gen Z. Sour came in fifth for Gen X and Millennials fourth for Gen Z; for Boomers, the style didn’t rank among the top five. Stout clinched the fifth spot for Boomers.

Finally, in terms of traffic, men of every age group poured more ounces than their female counterparts.

The What

Below, the top 10 styles of beer poured by men:

Fruit beer
Pale Ale
Blonde
Pilsner
Stout
Sour
Wheat beer
Cider
Lager
IPA

In descending order, the top five (download the report for the top ten) products poured by men were Michelob Ultra, Bud Light, Golden Road Brewing Mango Cart, Coors Light, and Modelo Especial.

And now the top styles of beer or category of beverage poured by women:

Stout
Fruit beer
Blonde
White wine
Hard seltzer
Wheat beer
Sour
Lager
IPA
Cider

Also in descending order, the top products poured by women were Michelob Ultra, Mango Cart by Golden Road Brewing, Bud Light, Ace Pineapple Cider, and Coors Light.

The Where

The 2023 Pour Report by iPourIt breaks the US down into five regions: West, Southwest, Midwest, Southeast, and Northeast.

Because our American head office is in Las Vegas and our hotel consultant is in Pennsylvania, we’ll look at the West and Northeast.

The top-five pours for the West in 2022 were:

While the top-five pours in the Northeast were:

For the curious, Bud Light and Coors Light are categorized as American-style Light Lagers, 805 is a Blonde Ale, Mango Cart is a Wheat Ale, and Modelo Especial is a Mexican-style Pilsner. Blue Moon and Allagash White are both Belgian-style wheat beers (or Witbiers), Boom Sauce is a Double IPA, Juice Bomb is a Northeastern IPA, and Stella Artois is a Lager.

For further insights, please download this year’s iPourIt report here.

Image: cottonbro studio on Pexels

May 17, 2023by David Klemt David Klemt No Comments

Leverage These 3 Sports for Growth

Leverage These 3 Sports for Growth

by David Klemt

Sports receive more than three million mentions daily on social media and in online communities, and three sports are driving conversations.

Media-monitoring and SaaS platform Meltwater‘s recent report shows growth in media mentions and community engagement. The report, “2023 Industry Snapshot: Sports,” also identifies three sports that are growing globally.

Most restaurant and bar concepts, at least throughout North America, can benefit from sports. They have televisions, at least decent audio, and the proper licenses to air sports and other programs.

At the risk of oversimplifying, that means that any bar or restaurant can be a sports bar. Before anyone begins furiously hammering out an email to send me, I’m not saying any bar or restaurant can automatically become a great sports bar because they have TVs. I’m simply saying that operators who want to leverage sports and specific sporting events are at a good starting point to do so.

With that caveat out of the way, let’s check out what Meltwater has uncovered regarding sports.

Sports Conversations

According to Meltwater, sports is a hot topic every day of the year. On average, there are 3.16 millions mentions of sports each day.

And that’s just on a “normal” day. Last year, that number jumped to well over 12 million mentions during the FIFA World Cup.

Meltwater identifies 2022 as a particularly strong year in terms of growth for sports conversations. That boost is expected to carry into 2023, providing savvy operators with opportunities to leverage sports.

Per Meltwater, sports social media handles, hashtags, and keywords have grown by more than 20 percent. That’s significant growth.

Now, let’s look at the sports driving much of that growth.

Football

When I say “football” in this context, I mean the sport some people call “soccer.” So, not American football, which Dave Grohl and Crown Royal pointed out is a Canadian invention during Super Bowl LVII.

For the past few decades (at least), much has been made of Americans maligning football (soccer). Well, all the tropes of that mockery may be wearing very thin.

Last year, mentions of football keywords were up 56 percent—in the US. The second-place country was Nigeria with an increase of 33 percent.

Globally, the sport’s online conversations went up by 32 percent. The day of the FIFA World Cup final? That number exploded to 630 percent. Could be smart for operators to begin planning their World Cup promotions soon.

Baseball

There are some interesting stats surrounding baseball and online conversations.

Last year, conversations of this sport grew by just three percent. And for a country that claims the sport as their national pastime, American baseball convos saw a notable dropoff: a decrease of 11 percent.

However, baseball grew by nine percent in Canada in 2022. Japan saw an increase of 36 percent, and Venezuela was up 22 percent.

Unsurprisingly, the sport’s two largest organizations dominate baseball conversations.

Leading the charge, Major League Baseball mentions grew by 16 percent in 2022 globally, and by 54 percent in Japan. Right on MLB’s heels, Nippon Professional Baseball 23 percent globally and 28 percent in the US.

For those who are curious, three teams stood out in the baseball conversation: the Los Angeles Dodgers (+59 percent), New York Yankees (+55 percent), and NY Mets (+46 percent). However, LA Angels pitcher Shohei Ohtani saw truly incredible growth with an increase of 74 percent.

An important takeaway: Baseball fans in America appear quite interested in watching (or listening to) NPB. That gives operators another organization—and all their scheduled games—to leverage.

Formula 1

Ah, my favorite sport. I’m happy (for the most part) to see this motorsport growing around the world. In fact, Formula 1 keyword mentions grew 13 percent globally, and #F1 was among the hashtags used most in 2022.

On July 3, 2022, Ferrari driver Carlos Sainz, Jr. (driver #55) won the British Grand Prix at Silverstone. Red Bull’s Sergio Perez (#11) took second and Mercedes’ Lewis Hamilton (#44) took third. And on this day the F1 conversation skyrocketed, growing by 338 percent.

The country leading the way for F1-related keyword mentions in 2022 was Japan, growing by a staggering 91 percent.

Much of the increase in interest in F1 can be traced back to Netflix and its Drive to Survive docu-series (some call it a reality-TV drama).

Looking at American interest in the sport, it helps that there are now three races on the calendar that take place in the US: the Miami Grand Prix, the US Grand Prix at Circuit of the Americas in Austin, TX, and the Las Vegas Grand Prix. That’s three opportunities (Miami has already happened) for American operators to take advantage of this sport’s growing popularity.

Last year, former Aston Martin driver Sebastian Vettel (#5), Red Bull driver Max Verstappen (current champion and #1), and Ferrari driver Charles Leclerc (#16) saw the most growth in terms of individual drivers.

I can only hope that my other favorite motorsport, MotoGP, starts to become more popular throughout North America.

Takeaways

Some operators may find that sports don’t work for their concept, such as a high-end cocktail bar or fine-dining restaurant. Those are two venue types that tend to eschew televisions as they don’t work with their vibe and aesthetic.

That said, each operator must choose how to best implement sports and related promotions. This includes understanding which sports, teams, and players their guests like. Then, of course, it’s also a matter of gauging interest.

With that determined, operators must also decide how to make sports work with their concept. Some things to consider are themed F&B menus, sports-related LTOs, FoH uniforms, and how far to go with promotions. That latter consideration will depend on how rabid a fan base each operator is targeting. A truly dedicated fan base encourages some bars to “officially” support a certain team.

Another important consideration? Will leveraging a particular sport or team alienate other guests due to rivalries or a lack of interest or comfort? Sometimes the cost of implementing promotions includes pushing away a percentage of guests on particular days.

Because I live in Las Vegas, I have an array of venues available to me around the clock. It’s conceivable that I could find a home bar or restaurant to watch F1 and MotoGP. Personally, the capability of comfortably watching my two favorite sports would boost my loyalty and visits. However, there may not be a large pool of people like me in this market. Would a bartender want to turn on an F1 race just for me?

There’s a lot to consider when choosing how to best leverage sports. The upsides include converting customers to loyal, repeat guests; a realistic idea of what to consider in terms of labor and inventory for specific days, weeks, months, and seasons; and boosts in traffic, revenue, and online engagement (which in turn can translate to more traffic and revenue).

Image: Photo by PRAT clement via Pexels

March 27, 2023by David Klemt David Klemt No Comments

Why Pickleball Should Have Your Attention

Why Pickleball Should Have Your Attention

by David Klemt

The explosive popularity of pickleball and its legions of rabid players should have the attention of restaurant, bar, and hotel operators.

In fact, the sport may just result in the next Topgolf-esque eatertainment concept.

According to an October 2022 Fortune article, pickleball is the fastest-growing sport in America for three years running. That article follows previous coverage from an array of publications that come to the same conclusion.

In Canada, the popular sport is also growing fast. It’s up against soccer, lacrosse, and cricket, but the numbers are impressive. In 2020, estimates showed 350,000 Canadian households playing pickleball. As of last year, that number was growing past 900,000.

Another sign that the sport is gaining incredible traction throughout North America? Doctors are encountering growing numbers of pickleball injuries. The Journal of Emergency Medicine says that about 19,000 people suffer pickleball injuries per year.

That may not seem like a lot when considering how many Americans play. According to the Association of Pickleball Professionals, there are 36.5 million Americans playing, from beginners to professionals.

Speaking of professional pickleball, there are professional leagues and teams. And those teams have the attention—and backing—of big-name sports celebrities. Major League Pickleball (MLP) boasts investments by Lebron James, Draymond Green, and Kevin Love. Tom Brady and Kim Clijsters are investing in an MLP expansion team.

Attention-grabbing Statistics

There’s a website—Pickleheads—that helps people locate pickleball courts. When I visit the site it shows me three casino resorts with courts immediately.

And the site just happens to have a page of useful statistics. I choose to accept that these stats are accurate.

Those who want to take a look themselves can do so by following this link. However, I’m going to share a few below:

Pickleball growth: 158.6 percent over the last three years
Top age bracket: 18 to 34 years old
Compound annual growth rate through 2028: 7.7 percent

Also per Pickleheads, the only popular sports with higher participation rates than pickleball are running and hiking.

The Next Topgolf?

The stats above should get operators’ creative juices flowing. The current growth of the sport along with the largest age group, growth projections, and support in the form of leagues, teams, and celebrities, is highly appealing.

Will a pickleball-forward eatertainment concept be the next Topgolf? It’s possible, and that’s why people considering their first or next concept need to look into pickleball.

The sport is perfect for our industry. It’s easy to learn, simple to play, and popular with most operators’ ideal age bracket—ages 21 to 34. However, pickleball is also very popular amongst the 50 to 70 set, a group with disposable income and time to indulge their interests.

Then there’s the undeniable fact that the sport is often described as fun and social. There are even articles lauding pickleball for encouraging networking.

Finally, there are organizations with which pickleball-centric eatertainment concepts can partner. An illuminating example comes from Shake Shack.

Toss and Spin, a racket sports organization, is partnering with Shake Shack this year. Their 2023 campaign is called the Shake Shack Pickleball Club. This nationwide activation centers around a nationwide tour across America featuring one-day pickleball clinics for all skill levels and tournaments.

One can only assume that this tour, backed by such a visible restaurant brand, will introduce even more people to pickleball. In turn, that creates an even larger pool of potential customers for the right concept.

Opportunity

We speak with a hospitality group pursuing an F&B-driven pickleball concept on the Bar Hacks podcast.

Brian Harper, a partner in Competitive Social Ventures and the company’s senior vice president of sales and marketing speaks about Pickle and Social on episode 94. Not only do his partners on the leadership team see potential for the sport, they love to play it themselves.

Should you think you have a solid idea for a successful pickleball concept, let us know.

Our industry standard feasibility studies will help you select the right market and site. Our fully customized concept development plans will help you and others visualize your big idea. And our in-depth business plan will provide a realistic roadmap for you to throw open your doors and march toward success.

Someone out there has the next big eatertainment concept inside their head. Is it you?

Image: Brendan Sapp on Unsplash

March 24, 2023by David Klemt David Klemt No Comments

Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Recent posts about employee theft in the hospitality industry throughout Canada and the US have the KRG Hospitality team talking.

Indeed, the statistics are startling. For instance, there’s the claim that a staggering 75 percent of employees admit to stealing from their employers “at least once.”

A few years back, the Retail Council of Canada reported that while “customers” stole $175 on average, employees stole $2,500 before being caught.

Then there’s the incredible economic impact. Multiple sources claim employee theft in the US costs businesses $50 billion annually. In Canada, theft costs businesses more than $1 billion per year. Both numbers are shocking.

Looking at US restaurants specifically, the number ranges from $3 billion to $6 billion in losses due to employee theft. According to Business.com, employee theft affects four percent of a restaurant’s sales and accounts for 75 percent of shortages in inventory.

At this point, you’re probably Googling security cameras. But hold on for a moment.

Disclaimer

Before proceeding, know this: I’m going to make a few points that will seem like victim blaming. In part, this perception will be the result of my addressing recruiting, hiring, onboarding, training, the leadership team, and workplace culture.

Let me be clear: I’m not excusing employee theft. I don’t think there’s any justification for it.

Despite what a (hopefully) small number of loud voices claim on various social media platforms and forums, I don’t think it’s acceptable to steal from a corporation or business owner. No, theft isn’t a justifiable response to feeling slighted by ownership or leadership. And no, it’s not “okay” because a company generates “so much” revenue, has insurance, and can “write it off.”

With that out of the way, let’s proceed.

People are Going to Steal

Here’s one immutable fact: You’re going to hire someone who’s going to steal from your business.

Is your business up and running and serving guests? You employ someone right now who has either stolen from you already or is going to steal.

So, you can run your business under a cloud of suspicion and distrust. Or, you can improve your odds of reducing theft and ferreting out thieves before they do too much damage.

Again, you can install security cameras and place them above each POS terminal and every cash drawer. You can ensure you have clear, cutting-edge CCTV coverage of the entire bar and dining areas. Walk-ins and storage areas can have clear, high-resolution camera coverage.

Honestly, you should have that type of coverage. That type of security can improve employee and guest safety, and your insurance carrier will likely be happy about it.

But you don’t need to impose an atmosphere of suspicion, fear, and intimidation along with the cameras. If you were an employee, would you want to work somewhere that makes it clear you’re always under suspicion? Would you want to work alongside a leadership team whose default setting is that all employees are thieves unworthy of trust?

Workplace Culture

You’re never going to have a theft-free business, period. That’s another reason to not “lead” with fear, anger, and suspicion.

Truly, all that style of leadership will do is drive good, honest employees out. So, the approach should be attracting honest workers. You build a strong, trustworthy team through respect and empowerment.

Yes, there will be employees who take advantage of that respect. They were going to behave that way and steal or otherwise disrespect you, your business, and the team regardless.

Putting in the work to reflect on your leadership style and that of your leadership team pays dividends. It aids in recruitment and fosters an atmosphere of respect and honesty.

Become known for a healthy, positive workplace and you’ll attract the best workers. Nurture that culture and the team will police itself; they won’t tolerate anyone harming the business.

Am I suggesting you view your business through rose-colored lenses? Absolutely not. Install security cameras. Maintain the right insurance coverage. Conduct regular inventory checks. Review comps and voids for irregularities. Limit access to cash. Outline what constitutes theft—including time theft—and make consequences clear.

And here’s a crucial item: Prove you respect and care about your workers. Not say it, prove it.

You don’t need to know their life stories and everything going on in their lives. But you can let it be known that if they’re struggling with something, you and your leadership team are there to listen and help how they’re able.

Nothing you do will eradicate employee theft completely. You can, however, reduce it and learn to quickly stamp it out. And you can do that while maintaining a happy, healthy workplace.

Image: Tobias Tullius on Unsplash

Guests enjoying an array of dishes at a restaurant

February 1, 2023by David Klemt David Klemt No Comments

4 Takeaways from Resy’s State of Dining

4 Takeaways from Resy’s State of Dining Report

by David Klemt

The State of Dining and What’s To Come in 2023 from Resy is an informative report that highlights several key developments to watch this year.

In fact, Resy’s report shines a light on ten trends and predictions for operators to consider. However, I’m going to address the four that stand out the most (to me).

For those who may be unfamiliar with Resy, the company is an online reservation platform. While Resy mostly serves major American cities, it does have a presence in Toronto, Canada, and London, UK.

Most importantly, the platform has a unique view of the industry. Resy looks at the industry through the lens of reservations, meaning they collect data concerning consumer behavior in real time.

So, let’s start with some compelling revelations based on reservation data. To view this report in its entirety, visit Resy via this link.

1. 5:00 PM

According to Resy, one reservation time is standing out from the rest. In comparison to 2019 and 2021, 5:00 PM reservations grew by two percent in 2022.

Now, two percent may seem like insignificant growth. However, given Resy’s reach and the platform’s number of active users, the opposite is true.

A two percent increase equates to hundreds of thousands of reservations.

Now, think about your restaurant or bar and consider your reservation distribution. Do you know which hour sees the most reservations? Not an assumption—do you have the data and therefore know the time?

If not, that’s information you need. Not only is this important for scheduling and controlling costs, it’s the benchmark you need to know if you have any chance of tracking change.

2. The Return of In-person Dining

This is one prediction that multiple industry (and even non-industry) publications are making for 2023. It’s the same for hospitality industry platforms: Companies see 2023 as the year restaurants and bars really come roaring back.

But when Resy makes this prediction, they’re using their reservation data to back it up.

First, last summer represents the single busiest season in the platform’s nine-year history. Second, a specific event, a dinner with chef-operator Massimo Bottura, sold out via Resy in a minute.

Third, October 2022. Why is this month worth pointing out in particular? By October, more Resy users had visited restaurants in 2022 than they had during the entirety of 2021.

Clearly, Resy expects this trend to continue and strengthen in 2023. Given their access to reservation data, this seems like a well-informed prediction.

3. Miami

In December of last year we checked out the best states in America for starting a business. Pennsylvania stood out to us for obvious reasons: our Northeastern office is in Philadelphia, with Kim Richardson at the helm.

Overall, Pennsylvania holds the number four spot on the Forbes list. For comparison, Florida slots in at number 45.

However, Miami appears to be an outlier for restaurant and bar entrepreneurs when it comes to Florida.

Per Resy, the restaurant footprint in Miami grew fourfold from 2017 to 2022. Moreover, Resy is seeing continuous growth in Miami. Going even further, this growth is coming from local and outside operators.

In fact, Resy describes South Florida as “white hot for high-profile sequels.” An operator has a top-tier concept? They’re likely to expand into Miami.

4. TikTok

Last week I addressed Datassential weighing in on photos versus videos. According to the F&B research firm, video is now dominating social media engagement.

And also last week, I explained the importance of discovery functionality. Operators who are considering adding a platform to their tech stack should consider whether it will help people discover their restaurant, bar, or hotel.

Resy is a platform that doesn’t just offer discoverability, it’s a core feature. So, when they say that TikTok appears to be a powerful discovery tool for restaurants and bars, that’s likely true.

Now, a poll Resy cites in their report reveals that traditional word of mouth is the top method of discovery. However, the same poll cites that TikTok is the top discovery platform for 43 percent of Gen Zers. Or, in other words, video, or digital word of mouth.

Should operators jump on TikTok? That’s something only individuals can determine is good for their business.

But if they’re courting Gen Z, well…they may need to add TikTok to their social media toolbox.

Image: Meredith Jenks for Resy

Cheesy chicken sandwich on paper wrapper

November 30, 2022by David Klemt David Klemt No Comments

The NRA’s 2023 Culinary Trend Forecast

The National Restaurant Association’s 2023 Culinary Trend Forecast

by David Klemt

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

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

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

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

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

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

More than Food

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

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

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

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

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

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

Menu streamlining
Comfort fare
Experiences/Local culture and community

Operator and Consumer Behavioral Shifts

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

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

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

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

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

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

Image: Arabi Ishaque on Unsplash

November 18, 2022by David Klemt David Klemt No Comments

Is There Demand for Non-alcohol?

As the Holidays Approach, is There Demand for Non-alcohol?

by David Klemt

There’s no denying that non-alcohol is a growing beverage category, but does the data support the hype and operator consideration?

A report by behavioral research firm Veylinx offers compelling insight into non-alcohol and consumers.

By now, there’s really no excuse for failing to give non-alc serious consideration. When planning menus, operators should treat non-alc as much more than an afterthought.

Admitting fully that I’m repeating myself, giving alcohol-free beverages the same attention as their full-proof counterparts is crucial. Doing so is smart business; non-alc is capable of driving traffic and revenue.

And then there’s the guest experience element of the non-alc equation. Hospitality is about service, about ensuring every guest is comfortable. Giving guests who are abstaining from alcohol consumption a different experience than others isn’t hospitality—it’s alienation. Not only is that the antithesis of hospitality, it’s bad business.

Reviewing Veylinx data shows that non-alc is worthy of operators’ time and consideration. In my opinion, it’s even more important that non-alc menus and offerings be dialed in now. After all, the end-of-year holidays on our doorsteps.

The infamous Busiest Bar Night of the Year is nearly here. From November 23 through New Year’s Eve, people will be meeting up with family and friends. Many will also be seeking an escape from the stress of those gathering and the holidays.

Non-alcohol by the Numbers

One of the most important points made by Veylinx is this: Abstinence from alcohol isn’t limited to “social media” events like Dry January and Sober October.

Rather, consumers are choosing to abstain from alcohol throughout the year for myriad reasons. Specifically, Veylinx data reveals that more than 75 percent of Americans have abstained from alcohol consumption at some point for at least one moment.

Further, 46 percent of Americans plan to reduce their consumption of alcohol “right now.” As in, the holidays may be upon us but they’re actively working on a plan to drink less, not more.

Two major factors motivating this behavioral change are mental well-being and physical health. In service of those factors, more than half of LDA drinkers in America plan to replace beverage alcohol with non-alc beverages.

Interestingly, Veylinx finds that these consumers will pay more for non-alc alternatives in comparison to the general population.

Drilling down further, this shift in consumer behavior appears to be driven by a handful of consumer types:

21- to 35-year-old consumers;
“light” drinkers; and
consumers who have set aside alcohol consumption for one month or more.

Speaking of the first group, demand for RTDs is 48 percent greater in comparison to those aged 35 or older. Add CBD to RTD and the demand among the 21 to 35 cohort grows by 18 percent.

However, not all non-alc growth comes from the 21-to-35 group. Non-alc beverages with mood boosters see an increase in demand from the 35-plus group of 29 percent.

In short, if an operator is ignoring the non-alc consumer, they’re harming their own business and reputation. Alcohol-free RTDs, cocktails, beer, and wine are growing.

Savvy operators will leverage that growth.

Image: Helena Yankovska via Unsplash

Newfoundland and Labrador during daytime

November 16, 2022by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

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

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

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

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

The Happiness Survey

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

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

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

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

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

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

The Happiest Province

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

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

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

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

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

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

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

Image: Erik Mclean on Unsplash