Survey | KRG Hospitality

High contrast image of blue cocktail with lemon zest

April 27, 2022by David Klemt David Klemt No Comments

Forward Progress: Trends by Venue Type

Forward Progress: Trends by Venue Type

by David Klemt

One notable difficulty with considering new trends is that they’re not all necessarily a universal fit for all venue types.

For example, what may work well in an upscale restaurant perhaps won’t perform as well in a sports bar. Pursuing a trend that isn’t a good fit, obviously.

As any operator with experience knows, chasing fads and trends just to chase them can be costly. Doing so costs money (inventory, training, labor hours) and time deserving of better allocation.

However, failing to embrace any trends can also be costly. Watching a lucrative trend pass by can cost an operator guest engagement, perception, and traffic.

Take, for instance, the success of White Claw. Plenty of operators and consumers scoffed at the hard seltzer category as a whole at first.

Then, some people decided it was a drink category “for women.” As it exploded in popularity, hard seltzers proved immensely popular with men.

Basically, it’s an incredibly strong beverage alcohol category that resonates with a wide range of consumers. On some menus, hard seltzers are listed alongside beers.

So, hard seltzer, led largely by White Claw, showed itself to be a worthwhile trend to adopt.

Clearly, however, hard seltzer doesn’t resonate with all guests on all occasions in all types of hospitality venue types. For instance, generally speaking, a bucket of White Claws likely to be a top seller in a high-end restaurant specializing in seven- to nine-course meals.

Drink Trends by Venue

During Bar & Restaurant Expo in March of this year, Amanda Torgerson of Datassential presented 2022 drink trends operators should know.

One trend has essentially proliferated the industry. Really, it’s likely wise for us to all view this trend—hard seltzer—as mainstream now.

In the context of Torgerson’s presentation, Datassential is saying that hard seltzers are here to stay.

Among other trends, Torgerson shared Datassential’s data-backed view of drink trends segmented by venue category.

While every venue is unique and not every trend will work for every bar or restaurant in a given category, the results are no less intriguing.

Pubs: Dry-hopped beers, pastry stouts, and hard or spiked coffee.

Sports Bars: Mini-beers, hard seltzer, and reusable growlers.

Casual Bars: Seltzers with unique flavors, hard tea, hard lemonade, and drinks featuring local ingredients.

Upscale Bars: Negroni, wine-barrel-aged spirits, and flaming cocktails.

Nightclubs: Hard seltzers served with spirits, cocktails and punch bowls served with dry ice, and flaming cocktails.

Casual Restaurants: Wine cocktails, elevated brunch cocktails, and tea-based alcohol beverages.

Upscale Restaurants: Flaming cocktails (smoked may be better), all-natural wines, and made-to-order cocktail cart presentations.

Hotels, Resorts and Casinos: Made-to-order cocktail carts, alcohol vending machines, and drinks made with cold-pressed juices.

Interestingly, a few of the above trends identified by Datassential appear in multiple venue types.

The main things for an operator to keep in mind is what will resonate with their guests and what’s authentic to their brand. When it comes to trends, one size doesn’t fit all and an individual venue’s mileage will vary.

However, the above list should at least show operators what Datassential sees resonating with guests in an array of venues.

Image: Ozge Karabal on Pexels

April 26, 2022by David Klemt David Klemt No Comments

Forward Progress: 2022 Drink Trends

Forward Progress: 2022 Drink Trends

by David Klemt

Curious about what drink trends to leverage throughout 2022 to fulfill guest desires and expectations? Datassential has answers.

Of course, nobody has a crystal ball. However, as their name suggests, Datassential has something similar: data.

A trove of their valuable data was shared during Bar & Restaurant Expo 2022. Amanda Torgerson, senior account manager at Datassential, revealed the trends operators should be aware of this year.

Datassential MegaTrends

During this informative session, Torgerson shared what Datassential has identified as three “megatrends.” In other words, two trends that are particularly noteworthy.

First up, self-service. Whether beer, wine, or cocktails, Datassential thinks today’s guest wants more control.

Self-service beverage alcohol taps offer control in multiple ways, pour size and customization among them.

In addition, guests don’t have to wait for servers or bartenders when serving themselves. And, of course, self-service cuts down on front-of-house labor costs.

Second, experiential imbibing. In this context, this doesn’t simply relate to occasion, service, location, and ambiance.

Rather, the drink itself is an experience. Experiential cocktails engage multiple senses and include:

color-changing cocktails (those using butterfly pea powder, for example);
cocktail carts (similar to tableside guacamole preparations, tableside cocktail prep and service);
fire and smoke: smoked, charred, and burnt cocktails;
drinks that invoke nostalgia and guests’ childhoods;
frozen drinks; and
beer, wine, spirit, and cocktail flights.

Finally, botanicals. As we know, scent is a crucial component of taste. Botanicals, obviously, activate one’s olfactory sense.

Additionally, botanicals can affect a drink’s appearance and taste. So, break out the Chartreuse, Lillet, and elderflower liqueurs.

And while your team is at it, consider how else scent can be used to entice guests and enhance the drinking experience.

Best of the Rest

Treating this as more of a speed round, let’s review Datassential’s trend predictions in four major categories.

Seltzer/Beer

When it comes to hard seltzer, Datassential has (re)confirmed what we all know: This category has staying power. And as many operators found out during the pandemic, seltzers can boost to-go and delivery sales.

Beer cocktails are also trending up, per Datassential. Mini-bottles of beer also having a moment, and can easily tie into the beer cocktail trend.

Finally, heirloom beers—those made with heirloom grains—are proving popular with consumers.

Wine

According to Torgerson, wine seltzer is poised for a moment. Relating it to the hard seltzer trend, consider this Wine Cooler 2.0, as Torgerson said.

Other key wine trends are frizzante and red sparkling wines, orange wines, and canned sake.

Then there’s fruit wines, which means any wine not made from grapes. During her session, Torgerson suggested using these in cocktails.

Cocktail

In addition to cocktails on tap, Datassential sees the following as cocktail trends to watch:

Drinks made with genever.
Hybrid rums, blends of light and dark rums.
Ranch Water (typically a highball made with tequila and lime juice, topped with Topo Chico).
Single-serve, premade cocktails such as RTDs. These are great for off-premise sales.
Boozy frozen desserts.

Global

Focusing first on increasingly popular spirits, Datassential’s data shows that pisco, mezcal, and Japanese whisky are trending up.

In terms of wine, operators should look into regions that are perhaps “lesser known” in North America. Some examples from Torgerson’s presentation are Georgian and Hungarian wines.

And finally, what Datassential identifies as “drinking for a cause.” Such causes and beverage activations can be local or global as the world is so much more connected.

Image: ABHISHEK HAJARE on Unsplash

April 20, 2022by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

Technomic presented the state of chain restaurants, now and next, during Restaurant Leadership Conference 2022 in Scottsdale, Arizona.

Obviously, the entire hospitality industry is facing significant struggles. Rising costs, supply chain chaos, labor shortages and challenges, inflation… The past two-years-plus haven’t been easy.

However, there’s reason for operators and their leadership teams and staff to be optimistic. Additionally, independent and small-chain operators can learn from Technomic’s findings.

Challenges & Threats

Well, let’s take our medicine first, starting with the supply chain. In short, it’s bedlam.

Joe Pawlak (standing in for David Henkes) and Richard Shank of Technomic said as much during RLC 2022. Per their data, 35 percent of operators dropped at least one manufacturer between 2020 and 2021.

Whether because of rising costs, an inability to consistently deliver product, or other factors, operators had to adapt. Clearly, there’s a nasty trickle-down effect when an operator drops a supplier.

And then there’s inflation. Interestingly, Shank calls what we’re seeing currently as “existential inflation.” Relating to consumers, this means their confidence is shaken in terms of spending.

Of course, this type of consumer perception manifests in several ways. For example, some guests cut down on visits. Others will cut down on ordering, skipping appetizers and desserts. Perhaps they have one less beer, glass of wine, or cocktail.

Also, some guests “trade down.” Meaning, there are consumers who opt for casual restaurants rather than fine dining. Or, they’ll move from fast-casual to QSR.

Looking at the numbers, however, nearly 40 percent respondents to a Technomic survey say they’re visiting restaurants less. This makes sense, as 81 percent are concerned about how inflation will impact them personally.

On the operator side of inflation comes pricing. During Pawlak and Shank’s presentation, they used QSR dinner pricing as a real-world example.

According to Technomic, the tipping point for guest perception of good value is just $7. At only $10, consumers feel things are getting expensive.

As Pawlak and Shank pointed out, this is a problem. After all, the average price for dinner at a QSR is $10.08. That number may already be higher today.

Opportunities

Medicine taken, we can move to the good news.

First, Technomic predicts a strong Q3 this year. Additionally, they don’t expect double-digit year-over-year inflation.

In terms of labor, Technomic doesn’t expect costs to go down. However, they do anticipate that they’ll level off rather than rise.

Then there are the numbers. For the top 500 chains in the US in particular, 2021 was a “banner year,” according to Pawlak. On an aggregate basis, sales for the top 500 (McDonald’s is number one, for those wondering) are up 17.9 percent.

Also, every category of restaurant is performing better. The top 500 chains, for instance, are up 18 percent year-over-year. Midscale restaurants are up 38.5 percent. Casual is up 30.2 percent while fast is up 22.2 percent, QSRs are up 13.2 percent. As far as the biggest bump, fine dining is up 56.9 percent.

Looking at 2019 for obvious reasons, the industry was down 49.1 percent in sales in April 2020. However, the industry was down just about a single percentage point in February of this year compared to the same time in 2019.

So, how do we keep sales trending upward when facing inflation and other threats? Pawlak, Shank, and Technomic have some advice.

Operators, for instance, can implement the “balanced barbell” pricing strategy. In this model, high-value items drive business alongside premium offerings. In other words, don’t discount the entire menu just to entice guests to keep visiting.

Once guests get a taste for falling prices, they’ll consider the lower prices the standard. After that, any increase can be perceived as “too expensive.” Of course, discounting the whole menu also impacts guest perception of the brand negatively.

In addition, Technomic suggests offering higher net profit discount bundles, and implementing off-premise, large-party strategies.

Should Technomic’s predictions prove true, the industry may see an even stronger Q4 and start to 2023.

Image: Alex Haney on Unsplash

Delivery or takeout food order in brown paper bag

February 7, 2022by David Klemt David Klemt No Comments

What Consumers Expect from Delivery

What Consumers Expect from Delivery

by David Klemt

Consumers are developing specific behaviors and opinions regarding delivery that impact their perception of restaurants and brands.

Over the course of two years and three surveys, Deloitte has attempted to learn more about consumers and delivery.

In total, Deloitte surveyed 1,550 restaurant customers. Additionally, the multinational interviewed highly positioned executives from ten casual, fast-casual, and QSR brands.

What Consumers Want

First, it should come as no surprise that delivery is here to stay. None of Deloitte’s survey results indicate otherwise.

In fact, it appears that some consumers are showing an interest in additional delivery methods. Half of survey respondents are willing to try driverless or drone delivery.

More than half—64 percent—don’t expect to return to pre-pandemic dining habits by March of this year. Illustrating the habit of ordering takeout and delivery, 61 percent of respondents engage with restaurants that way at least once per week. That represents a 32-percent increase from June 2020 to September 2021.

When dining off-premise, 57 percent of Deloitte survey respondents prefer to place orders via an app. However, 40 percent of respondents prefer a restaurant’s own branded website or app. That shows that:

A restaurant’s website matters. A significant percentage of consumers want to get information, get a feel for a restaurant, and place orders with a business directly.
Direct delivery is feasible. Consumers want to know and feel as though they’re supporting a restaurant directly rather than a third-party business.

Own the Delivery Experience

Of course, quality is a concern with consumers who place delivery orders. This points to another pitfall regarding third-party delivery beyond the fees.

Unfair as it is, three out of five restaurant customer survey respondents have quality expectations. Specifically, they expect the same food experience off-premise as they receive on-premise. That means the same quality and the same freshness.

They also indicate that wait times of up to 30 minutes are acceptable. Here’s where the risk to restaurants comes into play. Consumers will fault the restaurant for late orders; cold food (or melted or room-temperature food for cold items); iced drinks becoming watered down; and other order issues even if they’re delivered by third-party services.

So, operators must look into and invest into what they can to improve the quality of delivery orders. Containers that keep hot food hot, French fries and other fried foods crisp, and cold foods cold are paramount.

Unfortunately, problems that occur after an order has left a restaurant—which are out of the business’ hands—are often attributed to the venue. Another reason, then, to consider and implement direct delivery.

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White and red neon restaurant sign that reads "Kitchen Open"

February 4, 2022by David Klemt David Klemt No Comments

Independent Operators are Making Changes

Despite Challenges, Independent Operators are Making Changes for the Better

by David Klemt

Independent Restaurant Coalition survey results show our industry is still struggling but some operators are making positive changes.

The hospitality industry absolutely needs and deserves help. The Restaurant Revitalization Fund absolutely needs replenishing.

However, hospitality continues to prove its resiliency, adaptability, and innovation.

It must be said, though, that it’s exhausting for owners, operators, and workers to have to constantly be resilient. Sometimes, the industry needs help. It’s past time for help to come.

But, I digress. Back to the IRC and their recently released survey results.

Still Overwhelmed

The IRC surveyed close to 1,200 respondents who are part of the restaurant and bar community. Survey participants represented all 50 states in the US.

Some respondents received RRF grants, some did not. Of course, receiving a grant wasn’t a silver bullet for surviving the pandemic.

However, the grants certainly helped:

Nineteen percent of grant recipients took out personal loans since February 2020. In comparison, that number more than doubles to 41 percent for those who didn’t receive grants.
Since the beginning of the pandemic, five percent of grant recipients took on additional investors. Again, that number more than doubles for operators who received no RRF grants. Eleven percent took on more investors to survive.
Due to the omicron variant of Covid-19, grant recipients had to reduce staff by 21 percent on average. Their counterparts had to decrease staff, on average, by 30 percent.
When it comes to selling off a personal asset to help their business survive the pandemic, ten percent of grant recipients did so. For those who didn’t receive an RRF grant, that number increases more than two-and-a-half times to 26 percent.

The challenges—an inadequate word, truly—have led to industry-wide changes. Per the IRC’s survey:

Hiring challenges have impacted 91 percent of independent restaurants and bars.
Menu prices were hiked up by 89 percent of independent businesses.
Nearly half—42 percent—reported to the IRC that they had pivoted to alternate business models after ceasing indoor and outdoor service.
Six percent of independent restaurants and bars pivoted to offering outdoor dining only.

Progress Being Made

Operators have been facing hiring challenges for several months now. In response, some operators offer various incentives.

As examples: meals for honoring scheduled interviews; cash for showing up to interviews; large cash bonuses for remaining in position for 90 or more days.

However, none of the above really address longstanding, widespread issues hospitality workers have given as reasons for quitting jobs (and the industry entirely).

To name just two, livable wages and benefits. Despite the challenges operators are facing, they have made positive changes. We’re not talking a small percentage, either.

Per the IRC, independent businesses reported the following changes:

84 percent of restaurants increased wages.
37 percent of restaurants, bars and other independent hospitality businesses added paid sick leave to the benefits they provide.
21 percent of employers have added paid vacation to their benefits.

These changes (and others) are a promising start, showing that operators are listening to workers. Bringing traffic and revenue back to pre-pandemic levels—and beyond—is a great goal. But how will the industry get there?

One answer is for operators to listen to the hospitality professionals they rely on for their businesses to thrive. Listening, and then acting in meaningful ways.

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Classic vintage Dodge pickup truck with winter wreath on grille

December 6, 2021by David Klemt David Klemt No Comments

Hard Numbers for the Holidays

Hard Numbers for the Holidays

by David Klemt

From comfort foods and specific seasonal flavors to LTOs and traditional tastes, data reveal what consumers want this holiday season.

As we reported last week, there’s reason to be optimistic about this year’s holiday season.

According to Datassential, consumers are eager to visit sit-down restaurants this month. One of their key findings was that the average group size will likely be smaller than normal.

Specifically, most groups will probably consist of seven to 12 guests. Crucially, Datassential sees potential from people eager to gather with family and friends for the holidays. Even better, of all options, sit-down restaurants are the top choice for gatherings outside of homes.

But drilling down deeper, what do guests want from restaurants during the holidays?

The Numbers

So, when it comes to the holidays, Datassential wants operators to remember that December includes more than Christmas and New Year’s Eve.

To that end, the first numbers I’m presenting are dates:

Hanukkah: November 28 to December 6 (ends this evening!)
Soyal: December 21
Christmas: December 25
Boxing Day: December 26
Kwanzaa: December 26 to January 1
New Year’s Eve: December 31
New Year’s Day: January 1

Those dates reveal something compelling: Plenty of opportunity to get creative and ramp up limited-time offers. Per Datassential, nearly half (44 percent) of consumers look forward to seasonal, holiday-themed LTOs.

In fact, roughly two out of five consumers find seasonality to be an important factor in their decisions to order LTOS and new menu items.

However, it’s important to know your audience and brand when coming up with special menu items. That’s because according to Datassential, 62 percent of consumers, at least for 2021, want classics and comfort food this season.

So, Datassential cautions operators against veering “too far” from traditional seasonal menu items and comfort foods. That said, you should know how far outside the box you can push your guests.

The Flavors

We’re not technically out of the fall just yet. The start of winter is December 21.

It can be smart to begin transitioning from fall to winter flavors over the next week or so. However, it may not be wise to toss fall flavors out entirely.

Datassential identifies the following as key fall flavors:

Apple cranberry
Butternut squash
Chestnut
Duck
Pumpkin pie
Stuffing

And these are important winter flavors, per Datassential:

Chocolate almond
Candy cane
Lobster cream
Lox
Red velvet
Toasted coconut

Those are by no means the only fall and winter flavors that will appeal to your guests. However, Datassential identifies them as top fall and winter flavors.

Something to think about when finalizing your winter LTO food and beverage menus.

Another thing to think about? Updating your listings to include holiday hours, LTOs, and other menu changes.

Image: Ryan Wallace on Unsplash

Friends and family around a dinner table at home

June 29, 2021by David Klemt David Klemt No Comments

Consumers May Keep Eating at Home

Consumers May Keep Eating at Home

by David Klemt

A recent report suggests that consumer interest in eating at home more will continue even after we return to “normal.”

This is the finding from a survey conducted by the Food Industry Association (FMI)l, formerly known as the Food Marketing Institute.

The FMI surveyed grocery shoppers to determine habits influenced by the pandemic.

Emphasis on Nutrition

I look to a wide variety of sources to analyze consumer behavior. Even their grocery habits can be valuable for operators to know.

In this case, knowing about the dining habits of today’s consumer provides important insights. For instance, knowing what types of food items shoppers are purchasing can be very telling.

Per the FMI, nearly half of survey respondents (49 percent) indicate they’re choosing healthier foods when grocery shopping. Clearly, living through a public health crisis is influencing this decision.

Today’s consumer, with more information at their fingertips and the purchasing power to demand more transparency from company’s, has become increasingly focused on their health. That interest grew stronger during the pandemic as a healthier lifestyle can lead to a reduced risk for illness.

This particular finding should tell operators a few things. First, they may want to consider updating their menus with healthier items. Second, that’s not limited to food—many guests are interested in no- and low-ABV drinks. Third, operators who use healthier ingredients should make that clear via their menu item descriptions.

At-home Dining

The FMI also found that 41 percent of survey respondents plan to prepare and enjoy more meals at home moving forward than they did before the pandemic.

That ties directly to 44 percent saying they “like” or ‘love” cooking at home more now.

While this survey was intended to provide consumer behavior insights for grocers, there’s clearly value for operators.

As many learned during the pandemic, guests are interested in supporting restaurants and bars buy ordering meal and cocktail kits.

Since it’s important to meet guests where they are, operators may want to keep such kits on offer. People have shown they’re eager to engage with restaurants and bars via virtual tastings and cooking classes. Clearly, many are also happy to order meal kits from restaurants to make in the comfort of their own homes.

Yes, there’s pent-up demand set to be unleashed. And yes, people are eager to get back out there and socialize. But there are also financial, health, and safety concerns that will keep some people from dining out as often as they did pre-pandemic.

That doesn’t mean they’re out of reach of restaurants and bars entirely. However, it does mean operators will need to adapt and get creative to earn their business.

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March 15, 2021by David Klemt David Klemt No Comments

SevenRooms Reveals Third Party Impact

SevenRooms Reveals Third Party Delivery Impact

by David Klemt

New findings from SevenRooms, the powerful reservation and guest relationship platform, show the impact third-party delivery has on restaurants.

In partnership with YouGov, a respected internet-based market research and data analytics firm, SevenRooms finds that direct delivery saves operators thousands of dollars per month.

The overall finding of the “Data & Dollars: Revealing the Impact of Third-Party Marketplaces” report is startling. Operators are relying on a technology that in reality is harming them and their bottom line.

Cost of Convenience

Foodservice operators and workers, along with being hospitable in their mission to serve others, are adaptable.

The industry proves this time and time again. This is particularly true of the past 12 months.

Nimble operators pivot quickly, so it makes sense that so many restaurants, bars and other foodservice businesses embrace delivery, takeout and curbside pickup. Doing so is a direct and seemingly logical response to a major shift in consumer behavior to lockdowns, restrictions, and health concerns.

Most operators are well aware that state third-party delivery platforms take a 30-percent commission on average. However, the cost goes beyond devastatingly high fees: operators also lose control of the guest journey.

Real-world Example

SevenRooms illustrates the negative financial impact third-party delivery platforms with three examples: a high-end Italian restaurant in New York; a high-end steakhouse in Los Angeles; and a high-volume casual restaurant in California.

Let’s take a look at the last example.

Over a six-month period, the restaurant fulfills 19,000 combined orders. Delivery makes up 75 percent of these orders, takeout/pickup account for 25 percent. The average order is $33, and over the six-month period the total order volume is $617,500. Had the restaurant implemented direct delivery rather than third-party, they would have saved about $154,000.

Break those savings down and the restaurant would save approximately $25,600 per month that could go to:

PPE: 853 boxes of face masks or 196 boxes of gloves.
Takeout: 101,000 food containers.
Guest experience: 522 tanks of propane to keep guests warm on patios.

Using an average rent amount of $6,000-15,000 per month in Los Angeles, that’s also two to four months’ rent.

Guests Support Direct Delivery

The impact of third-party delivery on restaurants isn’t lost on consumers. Many view ordering food as more than just convenient, they see it as a way to support their favorite businesses.

Luckily, consumers are supportive of ordering delivery, takeout and pickup directly from restaurants.

Per SevenRooms:

Firstly, 37 percent of Americans are eager to do anything they can to help restaurants.
Nearly half, 48 percent, think it’s more economical to order directly from a restaurant.
28 percent who say they prefer ordering directly to third-party delivery feel that way after seeing their favorite restaurants suffer.
23 percent are informed and think third-party delivery platforms charge restaurants too much in fees.
16 percent feel that the harm done to restaurants by third-party delivery outweighs any benefits.

Leverage Direct Delivery Support

SevenRooms identifies several ways in their report that operators can succeed in getting consumers to order directly.

One way is the platforms’ own Direct Delivery solution. We speak to SevenRooms CEO Joel Montaniel about this solution on our Bar Hacks podcast.

Then, of course, there are an array of incentives consumers are willing to accept in exchange for direct delivery and ordering:

41 percent of Americans would order directly over ordering via third-party if a restaurant has its own app with features such as tracking and communication.
37 percent consider a complimentary item such as an appetizer, drink or dessert in addition to their order an appealing incentive.
32 percent like the idea of a personalized promotion applied to a future order or in-person visit.
28 percent indicate interest in a personalized promotion for their meal such as a discount code or comp item.
17 percent are fans of restaurants using ordering history to customize their menu and experience.

Read the entire report here. To learn more about SevenRooms, please click here. Connect with SevenRooms on Twitter, Facebook, LinkedIn and Instagram.

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February 23, 2021by David Klemt David Klemt No Comments

Datassential Finds Operators Optimistic

Datassential Finds Operators Optimistic

by David Klemt

The latest report from Datassential finds that the vast majority of operators are optimistic or at least confident their businesses will survive the pandemic.

Per Datassential, operator outlook appears to be more positive than it was in December.

That’s largely due to the distribution of the Covid-19 vaccine.

Datassential Covid-19 Resources & Reports

Datassential has been releasing informative Covid-19 reports throughout the pandemic to provide helpful industry, consumer and operator data.

“Trending Upward” is Datassential’s 46th installment, and the research firm provides their Covid-19 resources at no charge.

For this report, Datassential surveyed 400 “decision makers for restaurants and on-site foodservice locations.”

Operator Outlook

Most of the operators surveyed, 220 or 55 percent, are still concerned about the challenges facing them and the industry. However, they’re “fairly confident” that their businesses will make it through.

That 55 percent represents no change from December of last year, when Datassential last gauged operator outlook.

The next two survey respondent segments tell the tale of optimism.

Of the 400 operators surveyed, 148 or 37 percent are “cautiously optimistic.” In fact, they expect to be even stronger post-pandemic.

Compared to December, that’s a seven-percent increase in operators who feel optimistic. That seven percent shifted from the “very nervous” segment,

Just 32 of survey respondents (eight percent) reported that they don’t think they’ll survive the pandemic. Losing any businesses to the pandemic and its terrible impact on the industry is beyond horrific, and the results of this Datassential report in no way minimize that awful truth. However, the percentage of operators who feel “very nervous” or otherwise pessimistic reducing by nearly half provides at least a semblance of hope for the future of the industry.

Staff Cuts

According to Datassential, more than 80 percent of operators who were forced to cut staff at some point during the pandemic have been able to bring back some of their workers.

Of the 400 respondents surveyed by Datassential, 21 percent of operators reported they hadn’t laid off any of their employees

Another 20 percent had to cut staff but were able to rehire all of them.

Nearly half (48 percent) have only been able to hire some of the staff they laid off back. Twelve percent have been unable to rehire any of the staff they had to let go.

Takeaway

Optimism is great for emotional and mental health. So is targeted relief. Operators and employees will likely feel far more confident and relieved if the industry receives actual targeted relief. This Datassential report’s findings are positive but we need Congress to act.

Click here to tell your representatives to pass the RESTAURANTS Act now.

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Chef preparing burgers inside restaurant

February 15, 2021by David Klemt David Klemt No Comments

This Generation is Most Likely to Dine In

This Generation is Most Likely to Dine In

by David Klemt

The National Restaurant Association’s 2021 State of the Restaurant Industry report revealed the generation most likely to dine in-person at a restaurant.

That is, of course, if such restaurant service—from quick-service to fine dining—is permitted where they’re located.

So, do you have a guess? Because we have the answer.

Most Likely to Dine In

Per an NRA survey, Gen Z is most eager to return to in-person restaurant dining.

However, it’s more of a simple majority that’s after a restaurant experience beyond delivery, takeout and curbside pickup than an overwhelming one.

Just 53 percent of adult members of Gen Z surveyed by the NRA are willing to dine inside restaurants over the course of the next few months.

Overall, 67 percent of Gen Z, Millennial, Gen X and Baby Boomer adults would like to engage with restaurants like they did before the pandemic. That’s not a huge stretch, of course; we all want to return to normal and put Covid-19 behind us.

Still, the survey results make it clear there’s demand for in-person dining. The convenience of interacting with and ordering from restaurants is here to stay. However, that convenience hasn’t replaced the desire to dine (and socialize) out.

So, Who’s Most Likely to Order In?

You’d be forgiven for assuming the answer to this question is also Gen Z. After all, just about every development regarding technology and how people engage with the world has been laid at their feet.

When Gen Z isn’t being accused of “killing” a tradition, sense of normalcy or an entire industry, the finger is pointed at Millennials.

Well, it turns out the usual finger-pointing suspects are the consumers most likely to order from restaurants.

According to the NRA’s report, 81 percent of Boomers and 80 percent of Gen X will continue to order from restaurants, at least for the next few months.

Put it All Together

At least for the next several months, the industry’s recovery will hinge on the full-strength return of in-person service and the convenience of delivery and takeout.

In other words, some consumers are champing at the bit to once again make restaurant visits a regular part of their lives while others plan to proceed with caution. Successful restaurant operations will maintain a mixture of traditional and digitally-driven services.

Nearly 90 percent of adults surveyed by the NRA say they enjoy going out to restaurants and that doing so with family and friends is a better way to spend leisure time than cooking at home.

“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, senior vice president, Research and Knowledge Group, NRA, in a press release announcing the Association’s 2021 State of the Restaurant Industry. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”

The NRA predicts foodservice sales to reach $731 billion in 2021, an 11 percent increase over 2020. Unfortunately, that estimate is about 15 percent lower than sales generated in 2019.

Still, that’s a reason to be optimistic. Consumers are pent-up and eager to make restaurants a significant part of their lives once again.

Nobody is more eager, evidently, than Gen Z.

Image: Jesson Mata on Unsplash