Statistics

by David Klemt David Klemt No Comments

Menus in Canada: Who Wants What Items?

Menus in Canada: Who Wants What Items?

by David Klemt

Bar and restaurant food and drink menus

Nobody has a crystal ball telling them what they should put on their menus to boost traffic and revenue, but we do have data.

In this instance, we have useful data regarding Canadian consumers specifically. Not only do we have helpful information from Restaurants Canada, David Henkes from Technomic has also weighed in. For those who are unfamiliar, Technomic is one of the best foodservice research and consulting firms.

Before we dive into Restaurant Canada’s menu trend information, this is not a review of the top menu item orders in Canada. For a deep dive into that topic in particular, please read our article “F&B in Canada: Top Menu Items.”

Instead, in this article we’re reviewing broader menu categories and interest in them among Canadian consumers. For your own copy of the 2022 Foodservice Facts report, click here.

Word of Warning

Now, it’s important to bear in mind that the data below is a snapshot. It’s important, informative data but it shouldn’t influence your menu completely.

In other words, when considering revising your menu in any way, make sure you’re staying true to your brand and the community you serve. If your data differs from Restaurants Canada and Technomic data, that’s okay.

Not only are there always outliers, not all data applies to every concept. So, don’t take drastic action on your menus based solely on the data below.

For this particular topic, Restaurants Canada asked three age groups about their interest in eight menu categories.

The groups are: 18 to 34, 35 to 54, and 55-plus. The industry advocacy group then reviewed the numbers for those who indicated they’re “very interested” or “somewhat interested” for each category or item.

Who Wants What?

The menu category generating the most interest from Canadian consumers, according to Restaurants Canada data, is food sourced from local farmers. Overall, 93 percent of survey respondents very or somewhat interested. Those in the 55-plus age group are the most interested.

More than 80 percent are interested in comfort foods, or creative riffs on comfort foods. Age groups 18 to 34 and 35 to 54 have the most interest. Precisely 80 percent are interested in trying globally inspired foods and flavors, led by the 18 to 34 age group.

Foods that promote health and wellness come next, with 79 percent of Canadian consumers showing interest. The 55-plus age group is particularly interested. However, dishes that utilize ingredients that boost one’s immune system are only popular among 53 percent of survey respondents. Interestingly, it’s the 18 to 34 age group with the most interest in this category.

In what’s possibly a contrast from American consumers, the final three categories have no more than 41 percent of survey respondents’ interest. Forty-one percent have interest in meatless and vegetarian items. Next, just 38 percent show interest in alcohol-free cocktails. Finally, just 33 percent are interested in plant-based burgers and sausages.

For each of those categories, the greatest interest comes from the 18 to 34 age group, and the 55-plus group shows the least amount of interest.

Recommended Reading

We’ve been reviewing the 2022 Foodservice Facts report from Restaurants Canada in depth for several weeks. To learn more about this important report, please read the following:

Image: Samuel Regan-Asante on Unsplash

by David Klemt David Klemt No Comments

F&B in Canada: Top Menu Items

F&B in Canada: Top Menu Items

by David Klemt

Closeup of hands holding burger

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

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

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

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

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

Top 10 Canadian Drink Menu Trends

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

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

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

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

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

Alcohol order shares in bars, according to Restaurants Canada:

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

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

Top 10 Canadian Food Menu Trends

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

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

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

Image: Nathan Dumlao on Unsplash

by David Klemt David Klemt No Comments

Your Guests are Likely Ready for More Tech

Your Guests are Likely Ready for More Tech

by David Klemt

 

Raspberry Pi motherboard

After the past few years of innovation and implementation in our industry, guests are probably ready to use even more technology.

Driven in large part by operator adaptation to ever-changing restrictions in 2020 and 2021, guest-facing tech is far more prevalent than ever. This is particularly true in the quick-service restaurant space.

Of course, tech has certainly become a crucial operational component in the full-service space as well. However, operators many FSR operators find themselves walking a fine between tech innovation and providing personalized service.

Restaurants Canada addresses QSR and FSR tech implementation in their 2022 Foodservice Facts report. Click here for your own copy of the report.

QSR vs FSR Implementation

One benefit of updating a given operation’s tech stack is automation. After all, more tasks handled automatically via tech solutions means a reduction in labor costs.

In theory, removing mundane tasks from front-of-house team members should equate to guests receiving more personalized service. Equally as impactful: Many guests would rather have more control over their visit in the names of convenience and speed.

A couple of examples are placing orders and paying via tablet or other table-side device. For some guests, this is more convenient than the traditional method.

As stated above, QSRs have been quick to embrace and implement tech innovations. And according to a Restaurants Canada survey, nearly three-quarters of QSR operators will wade deeper into tech waters within the next two years. Almost half—49 percent—of QSR survey respondents “probably will” increase their usage of technology by April 2024; a quarter “definitely will.”

On the FSR side, operators are a bit more cautious in their approach to their tech stacks. Of these survey respondents, 37 percent will probably adopt more tech within the next two years, while 15 percent say they “definitely will” do so.

Per Restaurants Canada, the three main concerns of operators relating to implementing more tech are:

  • cost;
  • guest acceptance; and
  • people being able to relate to the equipment (which to me seems directly tied to guest acceptance).

However, FSR operators have also indicated another concern: the perception from guests that tech innovations are leading to a loss of personalized service. So, individual operators must decide not just what tech solutions to embrace but how they may impact the guest experience in negative ways.

Guest Expectations

When Restaurants Canada looked into tech in the restaurant space, they didn’t just focus on operators. The restaurant industry advocacy organization also surveyed consumers.

Perhaps unsurprisingly, the 18 to 34 age group appears to be the most eager to embrace new tech in restaurants. However, they’re not that far ahead of the 35 to 54 group. Interestingly, the 55-plus demographic is less tech-resistant in at least one area than one may assume.

Let’s take a look at Restaurant Canada’s survey results, broken down by tech solution.

  • Order and pay via tablet at FSR: 18 to 34 (55%), 35 to 54 (54%), 55+ (41%)
  • Place an order for food that’s prepared by automated method, either robots or other systems: 18 to 34 (27%), 35 to 54 (17%), 55+ (11%)
  • Order food that’s delivered on-premises by an automated system or a robot: 18 to 34 (32%), 35 to 54 (28%), 55+ (18%)
  • Place an order through a ghost or virtual kitchen: 18 to 34 (34%), 35 to 54 (26%), 55+ (13%)
  • Order food that’s then delivered off-premises via robot or self-driving car: 18 to 34 (36%), 35 to 54 (29%), 55+ (19%)

Considerations

Looking at the above data, most guests are already comfortable placing orders and paying through a tablet. Interestingly, the age group people think of as most tech-averse seem to be open to the idea of robots preparing and delivering their orders.

The keys to implementing tech solutions are deceptively simple: initial costs, subscription costs, maintenance fees, ease of use by staff, and ease of use by guests.

With inflation driving costs up, operators are likely most concerned with what it will cost to add to or upgrade their tech stacks. However, there may be a significant reduction in labor costs that justifies the initial costs. Additionally, some solutions can be leased rather than purchased up front.

But the comfort levels of guests must also receive careful consideration. If a solution is going to alienate or drive away a significant portion of guests, it’s likely not worth the time and cost of implementing it.

Your guests likely want more tech in your restaurant, but it has to be the right tech. Solutions need to deliver convenience and speed without failing to deliver on hospitality.

Image: Harrison Broadbent on Unsplash

by David Klemt David Klemt No Comments

The Numbers on Food Delivery in Canada

The Numbers on Food Delivery in Canada

by David Klemt

Burger in container inside car

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

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

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

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

Who’s Placing Orders?

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

  • 18 to 34
  • 35 to 54
  • 55-plus

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

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

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

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

In 2021, the delivery order percentages were:

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

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

How do People Want to Order?

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

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

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

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

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

Preferences for QSR customers:

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

Full-service customer preferences:

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

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

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

Is Ordering Here to Stay?

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

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

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

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

Order frequency for QSR customers:

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

Frequency of orders for full-service customers:

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

Here to Stay?

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

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

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

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

Image: Oliur on Unsplash

by David Klemt David Klemt No Comments

Restaurants Canada Reveals Pandemic Impact

Two Years On, Restaurants Canada Reveals Pandemic Impact

by David Klemt

Canon accounting calculator

Restaurants Canada looks at the impact of the pandemic on the foodservice industry in their latest Foodservice Facts report.

Canada’s foodservice industry research and advocacy non-profit sees a return to pre-pandemic operations. However, the path forward toward pre-pandemic traffic and sales levels won’t be without its challenges.

“While nominal sales are expected to return to pre-pandemic levels before the end of the year, traffic still remains below what it was before,” says Restaurants Canada president and CEO Christian Buhagiar.

To access your own copy of 2022 Foodservice Facts, click here.

Industry Still Struggling

As an owner, operator, or foodservice professional, you probably have the answer to a specific question in mind.

When will we be “back to normal?” And, of course, the natural followup to that question. Will the industry surpass 2019 traffic and sales?

Restaurants and bars throughout Canada have survived six waves of Covid-19 over the course of two-plus years. There have been an inordinate amount of lockdowns that inarguably forced the permanent closure of far too many businesses.

As Restaurants Canada states (and the rest of us know all too well), there’s no telling if another Covid-19 variant will rear its ugly head. It’s conceivable (but with any luck unlikely) that Canada could face future lockdowns.

At the moment, according to Restaurants Canada, foodservice sales are currently 11 percent below 2019 levels. And yes, that’s after adjustment for inflation. Speaking of which, one reason traffic and sales remain below those of 2019 is consumer confidence. Many Canadians are concerned about a possible recession.

In addition, operators in Canada continue to face a labor shortage.

News Not All Bad

Now, anyone who read the previous section would be justified in lacking confidence in the industry. However, there is good news.

First, let’s compare Q1 of 2022 to Q2. Per Restaurants Canada, just 15 percent of restaurants were able to seat guests with zero restrictions. By April, though, approximately 90 percent of restaurants in Canada could serve in-person guests restriction-free.

Second, Q2 had more positivity in store for operators. According to Restaurants Canada, the FSR segment endured an 18-month decline in traffic when Covid-19 took hold. When restrictions were lifted, the floodgates of consumer demand burst. By Q2, traffic was a mere one percent lower in comparison to 2019.

Going a bit granular, QSR performance also improved in Q2. Per Restaurants Canada, QSR traffic lagged eight percent behind pre-pandemic levels. However, that number improved to just two percent under pre-pandemic levels by Q2.

Compellingly, Q2 still wasn’t done with foodservice industry positivity. While QSRs outpaced FSRs three-fold in terms of traffic, their numbers combined bring the industry back to 2019 Q2 levels.

Restaurant Canada’s positive outlook predicts that the industry will return to pre-pandemic levels by Q4.

Image: StellrWeb on Unsplash

by David Klemt David Klemt No Comments

Pumpkin Spice Season Descends Upon Us

Pumpkin Spice Season Descends Upon Us

by David Klemt

Jack o' lantern and smoke

Once again, the unstoppable march of the spooky season is upon us, bringing with it a frightening assortment of pumpkin spice items and expectations.

In the blink of an eye, hordes will descend on your restaurant or bar. “Pumpkin spiiiiiice,” they’ll croak.

Okay, so that’s overly dramatic. For the most part, pumpkin spice season is anything but scary. And really, very few people will transform into singularly focused pumpkin spice zombies.

However, fall is nearly here. So, you do need to finalize your fall/autumn menu. Beginning in September, that really does mean considering offering at least one pumpkin spice LTO item.

Interestingly, though, pumpkin spice may not deserve its perception as the flavor of fall. According to Datassential, there are ten flavors that index high enough to give pumpkin spice a challenge for the fall throne.

What are they? Well, it just so happens that Datassential has those answers, along with a bit of useful advice.

Lord of the LTO

Recently, Datassential released “Food Industry Trend Report: 2022 Pumpkin Spice Season.” As the research firm points out, pumpkin spice seems to be encroaching on summer more each year.

How far away are we, I wonder, from pumpkin spice claiming summer for itself? Will we be subjected to pumpkin spice dry rubs at summer barbecues? Is some intrepid operator going to create a pumpkin spice lemonade?

Those terrifying questons aside, pumpkin spice season coming earlier means more opportunities to benefit from LTOs. Just as it seems that pumpkin spice is descending upon us earlier and earlier, it also seems to dominate the LTO space.

In fact, per Datassential research, major chains executed 174 pumpkin spice LTOs. Now, that’s still with a five-percent drop in menuing for pumpkin space over the past 12 months. Further, that number doesn’t include small, regional chains and independents who also launched pumpkin spice LTOs.

Of course, there are also other fall flavors that deserve a place on operators’ menus. And they’re perfectly cromulent as LTO drivers.

Fall Flavor Favorites

To inspire operators to create LTOs that entice consumers this fall, Datassential has identitied ten flavors on which to focus. Helpfully, they separate them into two main categories.

Top five sweet fall flavors:

  • Vietnamese cinnamon
  • Spicy ginger
  • Allspice
  • Eggnog
  • Pumpkin pie

Top five savory flavors:

  • Coconut milk
  • “Oktoberfest”
  • Mustard cream
  • Turkey gravy
  • Cranberry sauce

Personally, I can see operators and their teams needing to get creative to leverage mustard cream and turkey gravy. Interestingly, Datassential suggests a few flavors not on either list above.

According to their report, Datassential expects apple and blood orange to be popular for LTOs this year. According to the firm, apple was popular last year. When it comes to blood orange, Datassential says 38 percent of consumers like or love the flavor.

Whichever flavors you choose, Datassential has the following advice, which we co-sign: Ensure your LTOs are fresh; make sure they’re easy and quick to make; and don’t discount them. In fact, you should create premium LTOs that come with a premium price.

Image: Colton Sturgeon on Unsplash

by David Klemt David Klemt No Comments

Hotels, Guest Data and Guest Expectations

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

Fountains outside Bellagio Las Vegas

We sit down with Austen Asadorian, vice president of sales at SevenRooms, to chat about pent-up demand for travel.

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

Hi Austen, thank you for taking the time to speak with us. Can you tell us a little about yourself and your role at SevenRooms?

Thanks, David! My name is Austen Asadorian and I’m the Vice President of Sales at SevenRooms. I first started my career in hospitality early in high school, getting a job at a local restaurant in New Jersey, learning everything from protein fabrication to catering and dealing with daily customers, even managing events. I continued working in hospitality through college, while going to the Culinary Institute of America for a degree in hospitality management, and ultimately, landed at Hillstone Restaurant Group where I ran back of house operations as well as the company’s Manager Training Program. Before joining SevenRooms, I worked as Peloton’s Director of Sales, leading their go-to-market strategy for retail growth and expansion from 2014-2017.

Today, I support SevenRooms’ global expansion efforts to accelerate our goal of being the best-in-class solution for hospitality operators around the world. Having previous experience in the hospitality industry, I joined SevenRooms because I was hyper aware of the pain points in the industry surrounding technology and the need for better guest management after having lived it day-to-day for several years. More importantly, I believe in SevenRooms’ vision and have a true passion for helping hospitality businesses, big and small, drive revenue, and create loyal guests for life.

Let’s talk hotels. What does the hotel industry look like two years after (or into) the Coronavirus pandemic?

When the pandemic struck, travel came to a complete halt and hotel occupancy in the US fell from 70% in March 2019 to less than 25% in March 2020—rooms were empty. Now, as the world is back to what we can consider a new “normal,” we’re seeing an extreme surge in travel and hotels are busier than ever.

However, what guests expect from hotels experience-wise has changed and they demand more. They’re making up for lost time and they want to make it count. Coming out of the pandemic, hotel operators are taking a harder look at their entire tech stack. It’s no longer optional to have a tech stack that is fully integrated from top to bottom across their operations—it’s a must-have—and technology providers are adapting to meet those needs. Additionally, operators have put a strong emphasis on the importance of ownership over their guest data. Both trends have positioned SevenRooms incredibly well within the hotel sector, as this has been our business philosophy from day one.

How can hotel operators and managers live up to these high expectations?

The simple answer is by taking advantage of technology solutions into their everyday practices and processes. These tech solutions can be anything from a QR code for mobile order and pay, allowing guests to order food and drink from anywhere on the property without ever needing a server to approach them, to an integrated customer relationship management (CRM) platform that speaks to and pulls data from their F&B CRM, easily sharing that information across teams at the hotel. For example, passing information along to a guest services team to ensure that in-room amenities don’t include nuts if a guest has a peanut allergy.

Operators and managers should also make sure they’re utilizing loyalty programs. According to a recent SevenRooms survey of American consumers, 44% say that loyalty programs play a part in their hotel choice and there are certain incentives that will bring them back.

For example, some want loyalty points to enjoy on property restaurants and bars, whereas others want a personal greeting when they check in, or a complimentary glass of champagne waiting for them when they get to their room.

Technology and loyalty programs both play into an exceptional experience and it’s important for operators to use both to create the total package.

You mentioned collecting guest data. Can you tell us a little bit more about why that is so important?

When we talk about data and hotels, we’re talking about using it to power a one-of-a-kind unique experience. We don’t mean taking or selling personal information, and that’s an important distinction.

The data we’re collecting for operators centers around a guest’s profile—who they are and what they like. This can be anything from their dietary preferences to their favorite table in the hotel restaurant’s dining room, to what dessert they order most often when they visit.

By having this data, operators can build a direct relationship with these guests and, in turn, build an incredible experience that keeps them coming back. For example, if a guest stays at a specific hotel on their vacation and takes full advantage of the pool cabanas, the data collected on those visits can then be used to retarget them with a special marketing promotion or offer to visit their local hotel property for a staycation, complete with a discount on a cabana day rental.

Creating these unique, personalized experiences not only increases revenue for operators, but also drives loyalty, as a loyal guest is more important than a one-time guest.

About Austen

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: Antonio Janeski

by David Klemt David Klemt No Comments

This Year’s Big Trend: Moderation

This Year’s Big Trend: Moderation

by David Klemt

Two drinks in mason jars

Beverage-top media platform Ripples is reporting 2022’s big drink trend, focusing heavily on Gen Z imbibing habits.

The unique company produces devices that make it possible to print images atop drinks. With beverages of all types as their focus, the company is a great position to study drink trends.

Interestingly, Ripples focuses primarily on Gen Z drinking habits. However, the company’s data identifies an intriguing trend that transcends a single generation.

Let’s jump in.

Zero-proof Beverage Growth

At KRG Hospitality, we appreciate numbers; we’re a data-driven agency. Well, amongst all the stats Ripples latest findings reveal, two are massive.

First, in comparison to 2019, zero-alcohol products are up 166 percent. Second, the non-alcohol category is growing four times faster than its low-ABV counterpart.

Another impressive number? Non-alcohol spirits have grown by over 113 percent since 2020.

Per Ripples, Gen Z is driving the growth in the no-alcohol space. According to the beverage-tech company, this is likely due to social media presence.

I’m sure you read articles at least from time to time about Gen Z social media habits. Those written by their older counterparts make it seem like Gen Z doesn’t understand the risks of recording their every action.

Well, it’s highly likely that much of Gen Z would rather not have their drunken shenanigans on display on every social platform.

Values Drive Purchase Decisions

Beyond risk aversion, Ripples identifies values as key to Gen Z purchase and consumption decisions.

Generally speaking, members of Gen Z value transparency and authenticity. Brands that share those values are more likely to succeed with Gen Z.

And, again, speaking broadly, smaller, independent brands are often perceived as more transparent, authentic, and responsible. Large, mainstream brands are often seen as anything but green and responsible, never mind transparent or authentic.

Ripples posits that small indies aren’t encountering daunting barriers to entry. So, small-batch, craft non-alcohol brands are apt to find Gen Z support.

Craft sodas, RTDs offering health benefits, and zero-proof cocktails in cans or bottles are flooding the market. And they’re finding success. In fact, according to Ripples, RTD sales are up 400 percent on Drizly since 2019.

The Big Trend

If you’re a listener of our Bar Hacks podcast you’ve likely heard our episodes with David Allison. If you haven’t heard them, they’re episode 46 and episode 67.

As the founder of the Valuegraphics Project, Allison isn’t a fan of focusing on demographic stereotypes. Instead, he recommends a focus on values in conjunction with demographic and psychographic data.

In part, the Valuegraphics Project approach encourages business owners and operators to identify and target their customers’ values. This is, according to Allison, far more powerful than focusing on age and sex. As important is the fact that demographics tend to divide us, and stereotypes are dangerous.

So, he and the Valuegraphics Project team probably wouldn’t like all the focus on a single generation in this article and Ripples’ findings. Well, there’s some good news and it pertains to what’s likely this year’s biggest drinking trend.

Across all generations, one drinking trend is common: Moderation. An interest in no- and low-alcohol beverages is shared among all generations.

In fact, according to Ripples, 78 percent of consumers purchasing zero-proof drinks aren’t doing so exclusively. These consumers are still buying they’re favorite full-alcohol beverages.

Takeaway

Leveraging the moderation trend is fairly simple. The growth of all zero-proof categories means operators can succeed with alcohol-free spirits, beer, and wine.

RTD cocktails—full-, low- and zero-proof—are selling very well and work in restaurants and bars.

In short, ensure you have low-ABV and zero-alcohol versions of your full-ABV drinks on your menu. Include these in a dedicated non-alcohol section.

Operators don’t need to be afraid of guests drinking more moderately. The stereotype that guests who choose zero- or low-proof drinks are bad for the bottom line simply isn’t true.

Image: Chris Curry on Unsplash

by David Klemt David Klemt No Comments

Square: 2022 Threats & Opportunities

Square: 2022 Threats & Opportunities

by David Klemt

Square terminal in restaurant kitchen

As all hospitality professionals know, the past nearly two years is imposing rapid change on the industry, necessitating rapid, strategic adaptation.

The key word in the above sentence isn’t “adaptation,” it’s “strategic.”

Of course, it’s hard to make strategic choices without as much information as possible.

To that end, we’ve reviewed Square‘s recently released “Future of Restaurants: 2022 Edition.” This is the company’s second annual Future of Restaurants report.

Square partnered with Wakefield Research, surveying 500 operators and 1,000 consumers to identify 2022 threats and opportunities.

Threat: Labor Shortage

Most operators aren’t going to want to read this prediction from Square. However, we can’t identify and adapt for opportunities if we don’t acknowledge threats.

Per Square’s report, the labor shortage may never see a correction. In other words, welcome to yet another new normal.

More than 70 percent of operators say they’re facing a labor shortage, per Square. Just over 20 percent of available positions were, at the time the survey was conducted, unfilled.

Instead, operators will likely, according to Square, need to make operational and work culture changes:

  • Improve working conditions. For example, encouraging and acting on team feedback. Another example? Modernizing scheduling.
  • Ensure workers are being mentored and not simply managed.
  • Hire, train, assign tasks, and schedule more strategically to operate with a smaller team.
  • Offering incentives that entice higher-quality candidates to work for you.

One participant quoted in the Square report claims that QR code ordering dropped their labor cost percentage by 150 percent.

Threat: Lack of Tech

As SevenRooms suggested when looking forward to 2022, technology solutions can lessen the burden of labor shortages. That leads us to another big threat: failing to embrace tech.

Some operators bristle at the word “automation.” For many, it conjures an image of robots in the kitchen and delivering food to tables.

Obviously, we’re opposed to replacing staff with any form of automation. However, we support automating tasks if that means team members are better utilized.

Why not automate inventory? Why not automate online order filling? If it improves operations and the guest experience, automation is less threatening.

According to Square’s report, 62 percent of operators think automation is appealing for managing online, delivery, and contactless orders. Ninety percent of operators say that back-of-house automation—if staff can focus on more important tasks—is a good idea.

More than 90 percent think automated inventory is an appealing solution.

It has taken a lot of time for hospitality to catch up to other industries in embracing tech. But Square reports that 36 percent of restaurants upgraded their business tech in 2021.

Of course, automation will become a threat if operators lean too heavily into it and stop paying attention to detail.

Phrased another way, be tech-savvy, not tech-reliant.

Opportunity: Omni-channel

Square see implementing an omni-channel strategy as the way forward. In fact, their general manager for Square Restaurants, Bryan Solar, said the following:

“We see the time of the dine-in only or takeout only as largely done forever.”

Going omni-channel (diversifying) in the restaurant space means making online ordering and delivery important elements within the overall business strategy. To that end, Solar posits kitchens will grow in size to better handle online orders.

Square’s survey reveals some intriguing numbers:

  • 13 percent of consumers say they’ll avoid restaurants that don’t offer online ordering.
  • Among restaurants with online ordering, those channels generate 34 percent of their revenue.
  • Over the past year, 54 percent of restaurants either added or expanded online ordering channels.
  • Online ordering is likely here to stay: 69 percent of respondents plan to offer it post-Covid-19.
  • 24 percent of operators are planning to allow guests to order alcohol from them online.

Another interesting set of numbers pertains to first- and third-party delivery. As we’ve stated several times, we much prefer operators offer first-party or direct delivery. According to Square, 49 percent of operators plan go direct delivery. More than half—62 percent—will pursue third-party delivery. That suggests that some operators will offer both.

Opportunity: Direct Ordering

When it comes to engaging online guests, operators need to control the experience. As I wrote for another publication years ago, a restaurant or bar’s website is still very important.

This statistic proves that statement true: Per Square, 68 percent of online guests want to order via a restaurant’s website or app, not a third-party.

More than likely, a significant portion of those guests want to know they’re supporting a restaurant and its staff directly. Hence the importance placed on ordering via the website or their own branded app.

So, operators would do well to ensure their websites feature an ordering widget. Or, they can opt to have an app built (or at least skinned) for their business.

Opportunity: Kiosks

According to Square’s survey results, 79 percent of consumers prefer ordering from kiosks over ordering from staff.

Most consumers and operators likely associate ordering kiosks with fast food restaurants. However, other categories can also benefit from these devices.

Close to half—45 percent—identified it as a preference when ordering at a casual-dining restaurant.

And fine dining isn’t immune to the convenience of tech. A little over 20 percent of consumers prefer to order via kiosk in the fine-dining space.

Overall, kiosks speak to the guest desires for convenience and safety. More than a third indicated that ordering via digital menu is appealing because they don’t have to touch a menu someone else has touched. And 37 percent like a digital option because they don’t have to wait for a server to bring them a physical menu.

Eleven percent of Square survey respondents will avoid a restaurant if they don’t offer digital menus.

Nearly half (45 percent) of restaurants are planning to offer QR code menus post-Covid-19. Another benefit of digital menus is dynamic pricing. As costs fluctuate, operators can increase or reduce prices easily without printing new menus.

Outlook

Representing a stark contrast from 2020 survey results, nearly 60 percent of operators say the survival of their restaurants is a concern in 2022.

That’s still a high number but vastly lower than how operators answered about 2021. Last year, 92 percent of operators surveyed said they were worried about survival.

According to Square’s report, operators are looking past surviving and making long-term plans. That’s a welcome sign that confidence is improving.

To review Square’s “Future of Restaurants: 2022 Edition” report in its entirety, click here.

Image: Patrick Tomasso on Unsplash

by David Klemt David Klemt No Comments

SevenRooms Predicts 2022

SevenRooms Predicts 2022

by David Klemt

SevenRooms guest data image

As we near the end of a tumultuous 2021 we must look ahead to 2022 to set our industry up for best strategies, innovations, and recovery.

SevenRooms is doing just that, looking at what operators should consider to meet guest expectations next year.

In a blog post on the company’s website, SevenRooms reveals what they believe are the keys to success in 2022.

Let’s jump in.

More is More

The first quarter of 2022 will mark two years of the pandemic and its affects on the industry.

As SevenRooms says, some guests will not have been out of their homes for two years. The company predicts this contingent will be looking to unleash pent-up demand.

Of course, that represents an opportunity for operators. Another wave of pent-up demand can mean a boost in traffic and revenue.

However, guest expectations will be sky high. That cliché that less is more? Yeah, you can toss that right out.

More will be more for this contingent of guests looking to dine and drink out after feeling cooped up for month after endless month.

Sure, some guests are aware that operators are facing labor shortages, increased costs, and other pandemic-driven challenges. They know that workers are overwhelmed and finding themselves in hostile confrontations they certainly don’t deserve.

And sure, some guests are sympathetic to those struggles. However, they have their demands and expect restaurants, bars, and hotels to meet them.

What can operators do to meet those demands? In fact, what can they do to anticipate and overdeliver on guest expectations?

SevenRooms has a couple suggestions.

Collect guest data. At this point, this should be a given. How can an operator engage with and retain guests if they don’t really know anything about them?

Embrace more tech. Platforms like SevenRooms can handle a restaurant or bar’s reservations quickly and easily. This is a feature that, per SevenRooms, more than half of guests expect a restaurant or bar offer. Some platforms can also automate marketing; send guests post-visit surveys; and tackle review aggregation.

Convenience Reigns Supreme

Here’s a quick, impromptu survey:

Do you prefer a seamless restaurant, bar or hotel experience, or do you like frustrating dining, drinking and lodging experiences?

I’m going to go ahead and assume you prefer the former option. In other words, you like what your guests like: convenience.

Well, SevenRooms is predicting that the desire for convenience will only grow stronger among guests.

Yes, delivering on the increasingly important topic of convenience will rely on collecting data. But rather than view it as just one more task, SevenRoom suggests looking at it in a more positive light.

A number of the conveniences guests expect can be automated. They can even help ease the burden of the labor shortage somewhat.

For example, contactless ordering and contactless pay are close to becoming standards. Offering those features to guests means meeting expectations, thereby delivering an excellent guest experience. On-demand ordering and paying can also ease some front- and back-of-house pressure.

Collecting guest data allows management and front-of-house staff to add personal touches before a guest is even seated. Again, seamless, excellent guest service.

Another convenience? Online ordering. SevenRooms isn’t the first to predict that on-demand ordering is here to stay. In fact, a suite of conveniences will be important moving forward:

  • Online ordering during in-person visits and for delivery or pickup.
  • A user-friendly reservation system that goes deeper than just picking a date and time. Why not allow guests to select seats and even request upgrades?
  • A virtual waitlist. Not only is this convenient, SevenRooms says this feature can boost walk-in traffic and reduce abandonment.
  • Contactless, mobile paying options.

There you have it. Two seemingly basic predictions—higher expectations and a desire for even more convenience—with the potential to boost traffic, loyalty, and revenue.

Image: SevenRooms

Top