Takeout

AI-generated image of a person carrying takeout bags from restaurant to their motorcycle
by David Klemt David Klemt No Comments

Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

AI-generated image of a person carrying takeout bags from restaurant to their motorcycle

I have done this. Cargo straps required.

Not too long ago, it seemed as delivery was going to overtake people’s desire to enjoy a restaurant in person, but that trend may be on a downward swing.

At first, this trend made perfect sense, for obvious reasons. For a while, the best way for consumers to enjoy their favorite restaurants and show support was to order delivery.

Rideshare companies jumped on delivery, as did several platforms. When guests were able to visit restaurants in person freely, delivery had become a habit for many of them. In fact, ordering delivery had become the de facto method of engaging with restaurants for a not-insignificant percentage of people.

However, operators and their teams weren’t shy about exposing their delivery “partners.” I think it’s fair to describe the fees operators were being charged by some of these partners as outrageous.

When the public found out about these fees, they didn’t sit well. Takeout, carryout, takeaway, order for pickup… Whatever your preferred nomenclature, people began seeing it as superior to delivery. This shift in consumer behavior was driven by a desire to support their favorite restaurants.

Of course, there are other factors that affected people’s move away from delivery. I’m confident in saying that most of us who have ordered delivery at some point in the last couple of years has experienced at least one of several downsides.

However, has delivery really fallen out of favor? Have takeout or drive-up pickup actually been passing up delivery?

Datassential’s 2024 Midyear Trends Report has some insights that can answer those questions. You can (and should) check it out for yourself here.

The State of Takeout and Delivery

To obtain a snapshot of the state of the performance of delivery and takeout, Datassential conducted a survey in May of this year. The F&B intelligence platform surveyed 400 US operators and more than 1,500 US consumers.

According to Datassential, nearly half of restaurant operators reported increases in guests dining in person at their restaurants.

Perhaps more telling, however, is that Datassential’s survey reveals that half of restaurants aren’t even offering delivery. I don’t know the breakdown of operators who once offered delivery and stopped doing so versus operators who never offered delivery.

What I do know is that there are, as I alluded to up top, many reasons for people to eschew delivery. Chief among these are cost, and the condition of the order when it arrives to the guest.

On the operator side, cost is once again a consideration, as are negative reviews and complaints. More than one study has shown that operators often get the blame when a third party botches an element of the delivery. These complaints can include food being delivered lukewarm or cold, parts of the delivery missing, or the wrong items being delivered to someone.

But, again, is demand for delivery slipping?

Per Datassential’s report, takeout and catering are outpacing the growth of delivery for US operators. Almost 40 percent of operators who participated in Datassential’s survey reported an increase in frequency for takeout and catering orders. In comparison, just 20 percent of respondents ordered an increase in delivery order.

Just eight percent of operators indicated a decrease in takeout and delivery. In fact, the greatest decrease impacts catering (14 percent), according to Datassential’s report.

Takeaway

Delivery, simply put, doesn’t work for every operator or every concept. Moreover, it looks like consumer desire for takeout is on a greater upswing in contrast to delivery.

For concepts that succeed with delivery, it’s imperative that operators control the process rather than cede to third parties, in my opinion.

The best way forward will vary from business to business. Operators and their teams need to be ruthless the quality, consistency, accuracy, and value of all orders, whether placed in person, for takeout, or for delivery. Further, when it comes to takeout and delivery, the ordering process must be convenient.

What’s clear is that every operator needs to dive into their data, determine how guests prefer to order from their restaurant, and pursue those preferences to enhance the guest experience.

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An Xbox One controller sitting on a Scorpion Gaming mouse pad
by David Klemt David Klemt No Comments

Game On: Datassential’s Midyear Report

Game On: Datassential’s Midyear Trends Report

by David Klemt

An Xbox One controller sitting on a Scorpion Gaming mouse pad

Brought to you by Xbox, Scorpion Gaming, and cool photography.

The 2024 Midyear Trends Report released by Datassential earlier this month contains an intriguing revelation that savvy operators can leverage.

There is, of course, interesting and useful information throughout. After all, Datassential conducted a survey of 1,500-plus US consumers, along with 400 US foodservice operators.

Surveying nearly 2,000 people is going to garner some helpful insights.

For example, we know that many people are concerned with their nutrition. Along with that comes reading nutrition labels. However, US consumers appear to throw that behavior to the wayside when dining out.

According to Datassential’s survey results, 62 percent of consumers in the US read the nutrition labels on new items before selecting them for purchase at grocery stores. But nearly that same percentage of consumers, 58 percent, don’t consider diets or nutrition when choosing where they’re going to eat.

What that says to me is that people still viewing dining out as a treat or an occasion. Most people, when treating themselves and others, see it as an escape. An escape from the stresses of work, of life, and from eating “boring” foods.

People are still driven to leave home to gather, socialize, and have fun. And restaurants and bars still play a major role in meeting those needs and desires.

Negative and fear-mongering stories may be getting all the clicks, but Datassential’s findings are much less on the doom-and-gloom side of the equation. Per their midyear report, nearly 90 percent of US restaurant operators have seen increases in traffic (46 percent) or had their traffic remain the same (42 percent) so far this year. Just 12 percent of operators reported decreases in traffic, according to Datassential.

Game On

Now, let’s look at the data in this report that really caught my attention.

The Datassential report reveals that 61 percent of survey respondents play video games. Citing Entertainment Software Association data, close to 200 million Americans are gamers. Going further, gaming spans all ages. Last year, gamers spent well over $50 billion on this particular hobby. MarketWatch claims even combined, the global sports and movie industries don’t outperform video games financially.

Of all respondents to the Datassential survey, a quarter aren’t gamers, and 15 percent “used to” play video games. That latter group consists mainly of Gen Xers. And, hey, fair enough—some people don’t enjoy or have time for video games.

In contrast, however, 23 percent of survey respondents label themselves “avid gamers.” Gen Z, Millennials, and men make up the majority of this group of consumers.

Almost 40 percent (38%) classify themselves as “casual.” This group consists mainly of Gen X, Gen Z, and women.

Alright, so…what does this have to do with restaurant operators? Well, gamers spent $57 billion just on video games. Per Datassential, 45 percent of survey respondents have made F&B purchases after consuming video game-related ads or content. This is true of 63 percent of US Gen Z consumers, and 56 percent of US Millennials.

These stats tell me that gaming pays not just for console manufacturers and game producers, but also for F&B operators. It would seem to me, then, that operators with concepts that can leverage video games in an authentic manner should give strong consideration to doing so.

So, game on?

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"2024" dessert concept
by David Klemt David Klemt No Comments

Welcome Back to the Culinary Arena

Welcome Back to the Culinary Arena: A Comprehensive Guide for 2024

by Nathen Dubé

"2024" dessert concept

The start of a new year is an exciting time in the restaurant world, offering a unique opportunity to reassess and rejuvenate your foodservice business.

From utilizing downtime effectively to setting strategic priorities, this guide is designed to help you navigate the year ahead with confidence and creativity.

Whether you’re a seasoned chef or a budding restaurateur, these insights will equip you with the tools to make 2024 a year of remarkable culinary experiences and business growth.

Part 1: Strategic Use of Downtime

Menu Innovation and Optimization

The start of the year is ideal for re-evaluating your menu.

Begin by analyzing customer feedback and sales data from the previous year. Identify which dishes were most popular and which underperformed. Consider removing items that aren’t selling well and focus on the dishes that your customers love.

This is also an excellent time to experiment with new flavors and culinary trends. For instance, with the growing demand for plant-based options, think about introducing a few vegan or vegetarian dishes.

Keep an eye on food trends. Are there new ingredients or cooking techniques that you can incorporate into your menu? This not only keeps your offerings fresh and exciting but also shows your commitment to culinary innovation.

Remember, a well-crafted menu is a balance between popular staples and innovative dishes. It should reflect your restaurant’s identity while also appealing to your target customer base.

Consider a seasonal menu that takes advantage of fresh, local produce, which can provide inspiration for new dishes and help reduce costs.

Staff Training and Empowerment

The quieter months are a perfect opportunity for staff training and development.

Conduct a skills audit to identify areas where your team could improve or learn new competencies. This could range from culinary skills, like mastering a new cooking technique, to soft skills, such as guest service or conflict resolution.

Training doesn’t have to be formal or expensive. You can leverage online courses, in-house mentoring, or even cross-training within your team.

For instance, front-of-house staff could benefit from basic kitchen training to better understand the dishes they are serving, while kitchen staff could learn about customer service to appreciate the end-to-end dining experience.

Team building is another key aspect. Organize activities that foster communication and collaboration. This could be something as simple as a team meal or a group outing.

A cohesive team that communicates well will provide better service, leading to happier guests and a more pleasant working environment.

Finally, empower your staff by involving them in decision-making processes. This could be in menu development, process improvements, or even marketing ideas.

When staff feel valued and part of the business, they are more likely to be motivated and committed.

Facility Revitalization

Use this quieter period to assess and upgrade your facilities.

Start with a thorough cleaning and maintenance check. This includes checking kitchen equipment, dining area furniture, and the overall infrastructure of your establishment.

Evaluate your kitchen equipment and consider if anything needs to be repaired or replaced. Upgrading to more efficient equipment can improve productivity and reduce long-term costs. For instance, investing in energy-efficient appliances not only cuts down on utility bills but is also better for the environment.

Look at your dining area from a customer’s perspective. Is the seating comfortable? Is the lighting appropriate? Small changes in décor can significantly enhance the dining experience. Consider refreshing the paint, adding new artwork, or even rearranging the layout to improve flow and ambiance.

Also, think about your back-of-house operations. Is your storage area organized? Can you improve the workflow in the kitchen? An efficient back-of-house leads to smoother service and a better customer experience.

Part 2: Setting Priorities for the Year

Elevating Customer Experience

The guest experience is paramount in the food service industry. This year, make it a priority to enhance every aspect of your guest’s journey.

From the moment they walk in, to the service they receive, to the food they enjoy, each element should contribute to a memorable experience.

Focus on training your staff to provide exceptional service. This includes being knowledgeable about the menu, attentive to guest needs, and quick to resolve any issues.

Personalized service can make a big difference. Remembering regulars’ preferences or celebrating special occasions with them can turn a one-time visit into repeat patronage.

Ambiance plays a crucial role in the dining experience. The right music, lighting, and décor can create an inviting atmosphere that complements your culinary offerings. If your budget allows, consider investing in upgrades that enhance the ambiance, such as new lighting fixtures or comfortable seating.

Implementing a feedback system is also important. Encourage customers to share their experiences, whether through comment cards, online reviews, or direct conversations. This feedback is invaluable for continuous improvement and can help you address any issues promptly.

Sustainability as a Cornerstone

Sustainability is becoming increasingly important to consumers, and incorporating sustainable practices into your business can have a significant impact. Start by assessing your current practices and identifying areas for improvement.

One key area is waste reduction. Conduct a waste audit to understand where most of your waste is coming from and develop strategies to reduce it. This could involve better inventory management to prevent overordering and spoilage, composting food waste, or finding creative ways to use leftovers.

Local sourcing is another aspect of sustainability. Building relationships with local suppliers not only supports the local economy but also reduces your carbon footprint. Local ingredients are often fresher and can inspire seasonal menus.

Also, consider the sustainability of your operations. This could involve using eco-friendly packaging, reducing energy consumption, or even installing water-saving devices.

Communicating your sustainability efforts to your customers can also enhance your brand’s image and attract environmentally conscious patrons.

Innovative and Integrated Marketing Strategies

In today’s digital age, effective marketing is crucial for any business.

Utilize social media platforms to engage with your audience. Share behind-the-scenes glimpses of your kitchen, showcase your signature dishes, and highlight your team. This not only promotes your offerings but also builds a connection with your guests.

Email marketing is another powerful tool. Regular newsletters can keep your guests informed about new menu items, special events, or promotions. Personalized emails on birthdays or anniversaries can make your guests feel special and encourage repeat visits.

Don’t overlook the power of community involvement. Participate in local events, collaborate with other businesses, or sponsor local sports teams. This can increase your visibility in the community and build goodwill.

Financial Health and Diversification

Keeping a close eye on your financials is crucial.

Regularly review your costs and revenues and look for ways to optimize them. This might involve renegotiating supplier contracts, adjusting menu prices, or reducing unnecessary expenses.

Consider diversifying your revenue streams. This could include offering catering services, hosting private events, or selling branded merchandise.

These additional streams can provide a buffer during slower periods and increase your overall profitability.

Conclusion

As we look forward to 2024, let’s embrace the opportunities and challenges that come our way.

By using downtime strategically, setting clear priorities, and striving for excellence continuously, we can ensure that this year is not just successful but also fulfilling.

Remember, in the dynamic world of foodservice, adaptation and innovation are key. Let’s make this year a celebration of our culinary passion, business acumen, and commitment to our guests.

Here’s to a year of delicious discoveries and unparalleled success in the culinary world!

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Kentucky Fried Chicken packaged for delivery or pickup
by David Klemt David Klemt No Comments

2023 Cravings Report: “The Most” Orders

2023 Uber Eats Cravings Report: “The Most…” Orders

by David Klemt

Kentucky Fried Chicken packaged for delivery or pickup

Let’s take a look at the top orders, delivery requests, order combinations, surprising pairings, and more from the 2023 Uber Eats Cravings Report.

It appears that the chicken sandwich dominance we’ve seen over the years is winding down. At least, that seems to be the case among Uber Eats users.

As you’ll see below, not only is the chicken sandwich not the most popular item, it’s not even among the top five. It does edge out the cheeseburger and wings among the most popular combos, but it doesn’t outperform French fries and salt as a combo.

Another eyebrow-raising detail? Pizza doesn’t show up anywhere among the most ordered items, most popular combos, or even the most surprising combos.

Now, if you’re curious about the 2022 Uber Eats Cravings Report, you’re in luck. You can click here for the top food orders from that report, and here for the top beverage orders.

The Most…Ordered Items

  • French fries
  • Garlic naan
  • Pad Thai
  • Miso soup
  • California roll

Am I the only one who expected to see burgers, chicken sandwiches, and pizza on this list?

The Most…Popular Combos

  1. Burrito bowl + cheese
  2. French fries + salt
  3. Chicken sandwich + shredded lettuce
  4. Cheeseburger + mustard
  5. Wings + ranch

Fairly standard, really. Every one of these orders makes complete sense. Now, the category coming up next…it’s a different story.

However, before we move on, let’s compare these items to those found on the 2022 Uber Eats Cravings Report.

Interestingly, the number-one item is nearly identical: burrito + cheese. And French fries + salt is the second most-popular item on both lists.

The Most…Surprising Combos

  1. Steak + jelly
  2. Cottage cheese + mustard
  3. Condensed milk + avocado
  4. Seaweed + pasta sauce
  5. Butter + pickled onions

I really have nothing to say after reviewing this short list. I mean…hey, do your thing, everyone. Make your order yours.

To the operators out there, be ready for some odd order combos.

The Most…Popular Requests

  1. No onions
  2. Dressing on the side
  3. Ranch
  4. Extra soy sauce
  5. Spicy
  6. Sauce on the side
  7. No lettuce
  8. No jalapenos
  9. Extra gravy
  10. No slaw

Looking at the top request, Uber Eats has a theory as to what’s driving it: the return to the office.

People, it appears, are self-conscious about their breath in an in-person, face-to-face setting.

The Most…Popular Food and Alcohol Combos

  1. Ribeye + Vodka
  2. Cheeseburger + Frozen Margarita
  3. Chicken + Frozen Piña Colada
  4. Lobster tail + Apple whiskey
  5. Tamales + Daiquiris

Last year’s report reveals the following combos:

  1. Steak + Margaritas
  2. Pizza + White Claw
  3. Burritos + Margaritas
  4. Chicken + Sangria
  5. Wings + Beer

Overall, a lot of change from the 2022 Cravings Report to this year’s report.

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"Tax Man" graffiti on red brick wall
by David Klemt David Klemt No Comments

IRS Proposes New Tip Reporting Program

IRS Proposes New Tip Reporting Program

by David Klemt

"Tax Man" graffiti on red brick wall

The Internal Revenue Service is proposing a voluntary tip reporting program which they’re calling the Service Industry Tip Compliance Agreement (SITCA).

Making the announcement via Notice 2023-13 back in February, the IRS is giving people the chance to comment on the SITCA proposal.

Per the IRS, their intention is to “take advantage of advancements” in POS, scheduling, and e-payment technology. How do they intend to leverage all this tech? In short, the IRS is proposing that POS systems will have to process payments and tips in the same way.

To clarify further, if someone pays by credit card, they’ll have to tip via credit card. If a guest pays in cash, they’ll have to tip in cash. So, should SITCA become the industry standard, the days of paying with a credit card but leaving a cash tip will be over.

However, in my eyes, this isn’t a simple “modernization” of IRS processes.

If the IRS is proposing a new for businesses to process tips, they’re looking to catch non-compliant businesses and tipped workers. A likely culprit or contributing factor to this IRS scrutiny? The retail venues now asking for or suggesting tips when customers check out.

So, it would be wise to reiterate to your team the need to report tips accurately. And remember, business owners need to ensure they’re complying with tip reporting as well. Getting flagged for inaccurate reporting is a great way to catch an audit, penalties, and a huge bill.

Nuts and Bolts

According to the IRS, SITCA will reduce taxpayer burdens. And, of course, the service claims the program will also reduce their own administrative costs.

Additional “features,” per the IRS website, are as follows:

  • The monitoring of employer compliance based on actual annual tip revenue and charge tip data from their point-of-sale system. There will be allowance for adjustments in tipping practices from year to year.
  • Participating employers demonstrate compliance with the program requirements by submitting an annual report after the close of the calendar year. This reduces the need for compliance reviews by the IRS.
  • Employers participating in SITCA will receive protection from liability under the rules that define tips as part of an employee’s pay for calendar years in which they remain compliant with program requirements.
  • Participating employers have flexibility to implement employee tip reporting policies best suited for their employees and business model. Policies must be in accordance with the section of the tax law that requires employees to report tips to their employers.

Requests for Comment

Interestingly, Notice 2023-13 contains a request for comments in four specific areas:

  • By what means a technology-based time and attendance system may be used by tipped employees to report tips. This includes tips in cash and other forms of tipping made through electronic payments methods (other than a credit card), regardless of whether the tips are received directly from customers or through tip sharing arrangements.
  • How tip sharing practices vary across service industries and how the SITCA program can support employer participation while accommodating potential differences in Federal, state, and local labor and employment law requirements.
  • By what methods employers of large food or beverage establishments participating in the SITCA program may meet their filing and reporting obligations under section 6053(c) and also satisfy the SITCA program requirements for compliance, while minimizing the administrative burdens on taxpayers and the IRS.

Those interested in providing such feedback have until May 7, 2023 to do so. The IRS has set up two ways to provide comments on Notice 2023-13:

  • Mail: CC:PA:LPD:PR (Notice 2023-13), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044; or
  • Electronic: Visit the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and Notice 2023-13) and follow the instructions for comment submission.

Personally, I have more questions than comments. Bear in mind, the IRS will stop accepting comments, feedback, and questions on May 7, 2023.

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White robot hand
by David Klemt David Klemt No Comments

Infographic Shows Massive Tech Growth

Infographic Shows Massive Hospitality Industry Tech Growth

by David Klemt

White robot hand

An infographic from Brizo FoodMetrics puts the explosive growth of the hospitality industry technology landscape on display.

It appears that operators, once largely hesitant to embrace new technology, are seeking it out. So, too, it seems, are guests. Intriguingly, many guests expect restaurants, bars, and hotels to innovate technologically.

In a sign of this change, SpotOn is predicting 2023 to be the year when independent operators upgrade their POS systems.

And that’s just one area where tech companies are innovating for our industry. As their infographic shows, Brizo FoodMetrics identifies ten areas of innovation:

  • POS systems
  • Payment platforms
  • Online ordering solutions
  • Reservation and waitlist platforms
  • Inventory, accounting, and purchasing solutions
  • Human resources and staffing
  • Delivery, pickup, and drive-thru tech
  • Marketing, loyalty, and analytics platforms
  • Artificial intelligence, robotics, and automation
  • Ghost kitchen and virtual brand tech

Looking just at Brizo’s POS section, they list 48 platforms as part of their “2023 Restaurant Tech Landscape.” That’s four dozen POS systems, and that’s not even every platform available to operators.

Some will be familiar to operators—Toast, TouchBistro, Clover—as they’re basically synonymous with POS systems. Others, like Tillpoint and OVVI, may be less known. However, that doesn’t mean they’re not worthy of research and consideration.

Explosive Growth and Innovation

Again, the Brizo infographic doesn’t list every single available platform. For instance, I don’t see OpenSimSim under the HR/Staffing section. But the fact that there are still dozens of other platforms—more than in the POS section—shows that tech companies finally want their share of the hospitality pie.

This is, of course, beneficial for operators and their teams for several reasons. One such reason is innovation.

On one hand, the established platforms must innovate to fend off competitors. And on the other hand, upstarts must prove themselves to operators. In other words, new platforms must show they’re not vaporware; they have longevity and won’t abandon their own platform any time soon; they’ll update constantly; they’re simple to learn and use; they integrate with other systems; and that they’re worth an operator’s money and time.

We’re just two months into 2023. Imagine what the 2024 tech landscape is going to look like. And bear in mind, this is a restaurant-focused map—there are categories like property management systems for hotels that aren’t included.

If you’re in the market for a new POS system, want to upgrade scheduling, or are just curious about where the industry is heading, check out the infographic below. Select a few brands that are unfamiliar and look them up.

Brizo FoodMetrics 2023 Restaurant Tech Landscape

To view this infographic on the Brizo FoodMetrics website, click here.

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Shawarma stacked with fire in the background
by David Klemt David Klemt No Comments

Global Trends 2023: Technomic

Global Trends 2023: Technomic

by David Klemt

Shawarma stacked with fire in the background

Not content to focus solely on North America, foodservice research firm Technomic is predicting foodservice trends that will span the globe in 2023.

As the firm points out themselves, making predictions is a best-guess proposition. Many of Technomic’s 2022 predictions for Canada, the USA, and the globe have proven true. However, a handful of their trend predictions have yet to manifest.

Further, not all trends will work for all operators and their concepts. Chasing every passing fad or trend is great if you like to watch your costs spiral. Doing so is also an excellent way to confuse guests and stress staff.

So, when considering any trend, make sure it works with your concept, has some staying power, and will resonate with your guests. Speaking to that last point, this is one reason it’s crucial to collect guest data. Making important menu and guest-impacting operational decisions without data just doesn’t make sense.

When you’re done with this article, take a look at our examination of Technomic’s other predictions. The firm’s Canadian predictions are here. And you can read the American trends by clicking this link.

For your own copy of Technomic’s international trends report, click here.

Operations

For 2023, Technomic is making predictions that certainly appear plausible. A number of them pertain to operations.

Kicking things off, sustainability. Driven in part by the global impact of the pandemic, the health of our planet is top of mind for many people.

For example, Canada’s single-use plastics ban is now in effect. England plans to move forward with a similar ban by October of this year.

Alongside such bans, Technomic believes operators—small independents and global chains alike—will implement entire sustainability strategies. These will range “from packaging and restaurant operations to marketing and menu development.”

Does your concept have a dedicated pickup window? Perhaps a takeaway counter? Maybe even a drive-thru? If not, 2023 may be the year you make that change. Not only that, you’ll likely want to position them front and center.

Per Technomic, many consumers are done with delivery. From rising costs outweighing convenience to delivery failures, pickup may become more appealing. Pickup is still convenient, it’s less expensive, and the consumer is in control.

Additionally, many people are well aware of how costly third-party platforms are to operators. In fact, Technomic identifies these platforms and their fees as “the biggest industry villain” of 2023.

Menu

One of Technomic’s predictions is particularly enticing: Lebanese street foods. To clarify, the firm believes all manner of street foods from around the globe will perform well in 2023.

However, they feel Lebanon’s street foods will stand out from the rest. So, think shawarma, labneh, kibbe, and pickled vegetables. That last item, by the way, follows Technomic’s prediction that pickling and fermenting will be hot trends in the US and Canada.

Of course, there are other items that Technomic thinks will shine in 2023. If the firm is correct, there’s a new “holy trinity” to keep an eye on and consider for your menu: sushi, poke, and ceviche. According to Technomic, each performs very well when it comes to takeout.

Interestingly, the research firm suggests that this particular holy trinity will spawn new virtual brands. If Technomic’s predictions prove accurate, some of these brands will focus on fried chicken or plant-based versions.

Speaking to that last point, Technomic is predicting that plant-based will “evolve” in 2023. This evolution will focus on more traditional meat counterparts. Providing examples, Technomic suggests that avocado, modern takes on black bean patties, cauliflower, tofu, tempeh, and seitan will be this year’s plant-based rock stars.

Are this year’s 2023 Technomic predictions going to prove accurate? It’s far too early to tell. However, one thing I can say with confidence is this: their predictions are rooted deeply in data. When Technomic makes a “guess,” it’s always an informed one.

Click here to read Technomic’s report in its entirety.

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Single-use plastic straws and utensils
by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

Chef pointing burrito halves toward camera
by David Klemt David Klemt No Comments

Grubhub and Uber Reveal Top 2022 Items

Grubhub and Uber Reveal Top 2022 Items

by David Klemt

Chef pointing burrito halves toward camera

Grubhub’s 2022 Delivered and Uber Eats’ 2022 Uber Eats Cravings reports are live and there’s one surprise that’s immediately evident.

The top food item lists for both platforms make one thing clear right away: the chicken sandwich is no longer sitting on its throne.

Instead, as far as the data for these two delivery powerhouses show, there’s a new food item king. More compellingly, this menu item holds the throne on both platforms.

Now, I’m not suggesting the fried chicken sandwich is in the dungeon. In fact, the popular sandwich causing “wars” in the QSR space is still holdings it own. Indeed, the sandwich is still in the top five overall at Uber Eats.

Shockingly, it’s not in the top five overall at Grubhub. However, the fried chicken sandwich is among the top five Grubhub lunch and late-night orders.

So, which menu item wears the crown for 2022 in the kingdoms of Grubhub and Uber Eats? The burrito.

That’s awesome news for most operators. Much like the humble but mighty chicken sandwich, concepts can put their signature spin on a burrito. In fact, most concepts can put multiple signature spins on the new king of delivery items. One way to approach this would be to create a permanent signature and then seasonal LTOs.

Top 10 Grubhub Items

In 2022, the fried chicken sandwich only clinches the number seven spot at Grubhub.

Just like Uber Eats, cheeseburgers and pizza outperform the chicken sandwich.

  1. Burrito (bowl or regular)
  2. Cheeseburger
  3. Cheese Pizza
  4. Pad Thai
  5. Chicken Quesadilla
  6. California Roll
  7. Fried Chicken Sandwich
  8. Caesar Salad
  9. Chicken Tikka Masala
  10. Boneless Wings

Top 5 Grubhub Breakfast Items

  1. Sausage, Egg + Cheese Sandwich
  2. Donuts
  3. Sausage Burrito
  4. Bagel with Cream Cheese
  5. Muffins

Top 5 Grubhub Lunch Items

  1. Burrito
  2. Cheeseburger
  3. Fried Chicken Sandwich
  4. Cheese Pizza
  5. Chicken Quesadilla

Top 5 Grubhub Late-night Items

  1. Chicken Quesadilla
  2. Fried Chicken Sandwich
  3. Cheeseburger
  4. Mozzarella Sticks
  5. Cheese Pizza

As we see, the chicken quesadilla does some heavy lifting at Grubhub. The item holds the number five spot overall, at lunch, and during the late-night daypart.

Top 10 Uber Eats Combos

For their 2022 report, Uber Eats takes a different approach than Grubhub. Instead of just listing individual items, the platform identifies their top combos.

  1. Burrito + Cheese
  2. French Fries + Salt
  3. Cheeseburger + Diced Onions
  4. Chicken Sandwich + Fries
  5. Breakfast Sandwich + American Cheese
  6. Soup + Bread
  7. Pancakes + Sausage
  8. Pizza + Mozzarella
  9. Salad + Balsamic Vinaigrette
  10. Quesadilla + Sour Cream

Most “Unexpected” Uber Eats Combos

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

To read both reports in their entirety, click here for Grubhub and here for Uber Eats. There are more insights, including beverages and beverage combos.

Of course, longtime readers and our clients know where we stand on third-party delivery platforms. Ideally, operators should take as much control over their business as they can. For us, that means implementing direct delivery as long as it’s feasible and incurs lower costs than third-party.

We view delivery platform reports as menu development resources. It’s always wise to keep up to date on consumer and food trends, after all.

Image: Kamila Bairam on Pexels

Burger in container inside car
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

White clock on red background
by David Klemt David Klemt No Comments

Restaurants in Canada: Daypart Performance

Restaurants in Canada: Daypart Performance

by David Klemt

White clock on red background

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

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

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

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

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

Numbers Tell the Tale

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

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

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

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

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

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

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

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

Dinner is King

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

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

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

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

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

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

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

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

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

Image: CHUTTERSNAP on Unsplash

Closeup shot of double cheeseburger
by David Klemt David Klemt No Comments

Will Virtual Kitchens Persist?

Will Virtual Kitchens Persist or Go Brick-and-Mortar?

by David Klemt

Closeup shot of double cheeseburger

Virtual kitchens and virtual brands are back in the headlines after a record-setting grand opening in Rutherford, New Jersey.

Well, I should clarify: A restaurant may now hold a specific record.

The restaurant in question is the first brick-and-mortar MrBeast Burger location. And the record it may hold claim to is most burgers sold in a single day by a single restaurant.

 

View this post on Instagram

 

A post shared by MrBeast Burger (@mrbeastburger)

Now, if you don’t spend much time on YouTube, you may not know MrBeast. So, here’s a quick rundown: He’s Jimmy Donaldson, a YouTube personality known for “expensive stunts.” In fact, he may be the pioneer of that type of content.

Right about now you may be wondering what this all has to do with virtual kitchens and brands. It’s quite simple, really. MrBeast was among the highest-profile virtual brands to launch during the pandemic.

Incredibly, MrBeast Burger boasts more than 1,700 virtual kitchen locations. And now, one brick-and-mortar MrBeast restaurant.

Leveraging Demand and Popularity

So, you’re an influential YouTube content creator with tens of millions of subscribers. Obviously, your channel is monetized. What else can you do to leverage your popularity?

Well, if there’s a pandemic crippling the globe and people are stuck at home, maybe you notice the demand for takeout and delivery. And perhaps you learn about something known as a “virtual kitchen.”

If you’re a foodie or maybe just a savvy businessperson, maybe you’d jump into the virtual space. It is, it goes without saying, much less expensive than opening your own restaurant. And if you perform well, that’s an excellent way to collect data and guest feedback.

Also, an efficient way to hone your brand without a lease, buildout or the overhead of a physical restaurant. In a way, a virtual brand is akin to a pop-up restaurant, only you can test hundreds of markets simultaneously.

Okay, so now let’s say you reach a rare milestone in the creator space: 100 million subscribers. MrBeast did just that in July of this year. Do you think you’d want to leverage the support of millions of fans willing to support you and your brand?

The first physical MrBeast Burger opened last week at the American Dream mall in New Jersey. Reports claim that over 10,000 people waited in line for the grand opening.

Oh, and that’s when the location may have claimed the aforementioned record: 5,500 burgers sold in one day. After just one day of operation, MrBeast wondered if the brand should franchise:

Virtual to Physical

This (potential) record-setting event brings virtual kitchens and brands back into the spotlight.

Of course, most virtual brands don’t have the same origin story as MrBeast. One hundred million supporters? That’s rarified air.

At any rate, virtual kitchens do offer potential physical restaurant operators a less expensive method of testing their concepts. Couple data collection and feedback with an accurate feasibility study and taking the next step may make sense. And it may make a tidy profit.

It’s possible we’ll see MrBeast franchise off the success of two years of operating virtually and opening a physical location. And it’s possible we’ll see other virtual brands expand beyond the virtual kitchen.

However, it’s important that virtual brand owners keep a few things in mind. One, online success doesn’t always translate to brick-and-mortar success. Two, the restaurant space doesn’t care about your subscriber count—the KPIs are entirely different here. Three, potential operators need to perform the proper studies—or retain an agency with experience performing them—rather than rushing into the restaurant space.

It’s highly likely we’ll see more virtual brands enter the physical restaurant world. How many will do so successfully remains to be seen.

Image: Eiliv-Sonas Aceron on Unsplash

Delivery or takeout food order in brown paper bag
by David Klemt David Klemt No Comments

What Consumers Expect from Delivery

What Consumers Expect from Delivery

by David Klemt

Delivery or takeout food order in brown paper bag

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:

  1. 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.
  2. 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.

Image: Yu Hosoi on Unsplash

Page in Olympus typewriter with "2021" typed onto it
by David Klemt David Klemt No Comments

Top 2021 KRG Hospitality Articles

Top 2021 KRG Hospitality Articles

by David Klemt

Page in Olympia typewriter with "2021" typed onto it

We’ve gathered the top KRG Hospitality articles from 2021 and separated them into five distinct categories: Food, Beverage, Operations, Marketing & Promotions, and Industry News

Food

Delivery and Takeout Food Trends for 2021: Canada

It should come as no surprise that interest in what food items Canadian consumers wanted to order for delivery and takeout skyrocketed last year. (link)

Delivery and Takeout Food Trends for 2021: United States

Obviously, owners, operators and management wanted to stay current on consumer food trends in the USA as well. (link)

Have a Slice of Nostalgia: The Return of Viennetta

Never underestimate the marketing, promotions, and profitability power of nostalgia. This is particularly true when people are seeking comfort. (link)

Beverage

Uncorked: 2021 Wine Trends to Watch

Understanding what wines are trending is an effective way to boost profits and overcome wine intimidation. (link)

Fever-Tree Cola: Set Aside Your Soda Gun

Outright eliminating soda guns may be a long shot. However, cocktails crafted using bottled craft ingredients can justify premium prices. (link)

These are the Drinking Trends to Watch in 2021

We may not have a crystal ball but we have the next best thing: Data. (link)

Operations

Container Kitchens: The New Footprint

Several industry experts and intelligence agencies predict smaller restaurant footprints moving forward. Container kitchens are certainly a viable method to shrink venue sizes. (link)

The Reality of Hiring Right Now

It really doesn’t need to be said but I’ll do it anyway: The labor shortage and “Great Resignation” are real. (link)

The 5 Ds of Bystander Intervention

Sure, great food and beverage are crucial to luring people in, wowing them, and converting them to repeat guests. However, so is the experience. A key element of a positive memorable experience is ensuring guests feel safe. (link)

SevenRooms Reveals Third Party Delivery Impact

The high-tech reservation platform shows what many suspected to be true: Direct delivery is better for operators than third-party delivery. (link)

Marketing & Promotions

How SevenRooms Improves Operations

Not only does SevenRooms make handling reservations easier, it also makes setting up marketing campaigns simple and effective. (link)

This Generation is Most Likely to Dine In

If you want to know who to market in-person dining to, here’s your answer. (link)

0.0 to 0.5 Beers to Know for Dry January and Beyond

Dry January (along with Damp January) is here to stay. This is a sampling of alcohol-free and low-ABV craft beers to offer Dry and Damp January guests. (link)

Industry News

I Tried the Mask Made for & by Hospitality

None of us enjoy wearing face masks. This mask is comfortable to wear and amplifies the wearer’s voice. (link)

What’s the RRF Replenishment Act?

Well, here’s one take on an answer to this question: It’s the bill to replenish the RRF that has made zero progress since June of 2021. (link)

Build Back Better…Without Restaurants or Bars?

The BBB Act was passed in November. Of course, it didn’t include the Replenish RRF or ENTREE acts. It’s much easier for politicians and lawmakers to say they care about and support our industry than actually prove it. (link)

Image: Markus Winkler on Unsplash

Cheeseburgers and French fries in takeout containers on pass
by David Klemt David Klemt No Comments

SevenRooms Announces Olo Partnership

SevenRooms Announces Olo Partnership

by David Klemt

Cheeseburgers and French fries in takeout containers on pass

SevenRooms continues to grow and develop innovative partnerships.

The platform’s newest partnership benefits the hospitality industry, operators, and consumers.

In joining forces with Olo, SevenRooms further helps restaurants, bars, and hotels position themselves to succeed in an increasingly digital world.

The Bleeding Edge

Olo, which literally stands for “Online Ordering,” predates the iPhone.

In fact, the company launched before smartphones were more than niche devices.

Upon its inception, Olo’s service consisted mainly of sending mobile coffee orders to restaurant printers via text message.

Like SevenRooms, Olo seeks to stay ahead of the consumer behavior curve:

  • 2005: Olo launches, anticipating coffee drinkers will eagerly embrace mobile ordering.
  • 2008: The company predicts fast-casual restaurants will become faster than fast food.
  • 2012: Olo envisions the redesigning of kitchen restaurants to include pickup windows.
  • 2015: The platform sees the future for foodservice is delivery.

Now, Olo is dedicated to making sure online ordering customers benefit from the industry’s digital transformation.

The Partnership

SevenRooms ensures clients who also use Olo can capture their off-premise customers’ information. That data then creates profiles for those customers automatically.

This partnership leverages SevenRooms CRM and marketing automation integration. Operators will be able to send post-order surveys to off-premise, online ordering customers automatically.

So, operators can learn what is and isn’t working off-premise; elevate the experience of off-premise customers to increase online order frequency; convert those customers to in-person guests; encourage repeat visits; and increase profitability.

Moving forward, SevenRooms and Olo users will get to know their off-premise customers better.

“To meet the ever-evolving needs of our hospitality clients, we’ve continued to seek out strategic partners who help us provide an even more comprehensive solution to operators,” says SevenRooms CEO and founder Joel Montaniel. “Our integration with Olo delivers on our promise of offering a 360-degree platform focused on helping operators build deeper, direct relationships across on- and off-premise experiences. This partnership facilitates better operational efficiency and online data capture, ultimately helping operators optimize the profitability of their delivery and takeout business while strengthening customer relationships. We are excited to welcome Olo to our partner network, and look forward to our continued collaboration to drive better, more streamlined solutions for the industry.”

Learn more about SevenRooms here. Click here to learn more about Olo.

Image: call me hangry 🇫🇷 on Unsplash

Philadelphia, Pennsylvania, time-lapse at night
by David Klemt David Klemt No Comments

Two States Rescinding To-Go Cocktails

Two States Rescinding To-Go Cocktails

by David Klemt

Philadelphia, Pennsylvania, time-lapse at night

Two states are putting an end to a lifeline that many restaurants and bars still rely upon as the industry attempts recovery.

Unfortunately, New York and Pennsylvania are rescinding to-go cocktail laws. Sadly, we can only hope this doesn’t lead to a state legislature domino effect.

The decision stands in stark contrast to states that chose to legalize to-go cocktails this year.

Pandemic Lifeline

Call it cynicism if you like, but it seems that our industry is constantly left to fend for itself.

For example, look at how long it took for the the American Rescue Plan to be voted into law. The bill, which included the Restaurant Revitalization Fund, didn’t pass the House until March of 2021.

Also, the awarding of Paycheck Protection Program stimulus loans was a farce and disaster.

Then, remember that the RRF application portal didn’t launch until the end of April. Of course, the fund has been depleted already and the portal closes July 14.

Obviously, restaurants and bars adapted and leaned into delivery, takeout, and pickup in an attempt to survive. In addition, several states made to-go cocktails legal temporarily.

Ultimately, some states made those “loose” laws permanent. Iowa was the first state to do so.

Now, operators in New York and Pennsylvania are having that lifeline yanked out of their hands.

Disappointing Development

Less than a month ago I reported on how several states (and Canadian provinces) are choosing to handle to-go cocktails.

So far, eleven states made them legal permanently: Arkansas, Florida, Georgia, Iowa, Kentucky, Montana, Ohio, Oklahoma, Texas, West Virginia, and Wisconsin.

Other states chose to keep their to-go cocktail rules loosened until 2022 or 2023: Delaware, Illinois, Maine, Virginia, and Washington.

Still others—New York and Pennsylvania among them—introduced bills this year that sought to make to-go cocktails legal permanently: Arizona, California, Kansas, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, and Oregon.

So, rather than keep their rules loose and continue to help their operators generate much-needed revenue as they try to recover from the economic devastation of the pandemic, New York and Pennsylvania voted to take to-go cocktails away from them.

Rather than help the industry, too many politicians and officials have used them during the pandemic as scapegoats, punching bags, and public relations stunts.

It’s clear that operators in New York and Pennsylvania (and many other states, to be fair) need to send a unified message when elected officials need venues for campaigning and fundraising.

Image: Heidi Kaden on Unsplash

Pepper hotel concierge robot by SoftBank Robotics
by David Klemt David Klemt No Comments

Restaurant Tech Map Illustrates Innovation

Restaurant Tech Map Illustrates Innovation

by David Klemt

TechTable - Culterra Capital Restaurant Tech Map sponsored by Back-of-House

The hospitality industry’s embracing of new technologies is experiencing rapid and welcome acceleration in less than two years.

In comparison to the restaurant technology map by TechTable and Better Food Ventures from 2019, there are two entirely new categories: Shared / Ghost Kitchens, and Food Safety / Quality.

More than a dozen platforms on the 2021 map from TechTable and Culterra Capital (sponsored by Back-of-House) now fall into those two categories.

Changing Landscape

It’s a sign of current industry trends and what will matter to guests moving forward that ghost kitchens and food safety are emerging as separate tech segments.

Obviously, the pandemic didn’t create the ghost kitchen category. However, it did fuel a meteoric rise in delivery and takeout. In turn, ghost kitchens are more prevalent than ever.

After all, a former Uber executive Travis Kalanick owns CloudKitchens and Applebee’s is testing a ghost kitchen pilot program.

What was once the domain of murky, unpermitted virtual brands is now its own successful business model.

However, today’s guest isn’t concerned solely with convenience. In general, guests now take their health and safety more seriously since the pandemic

Tech platforms that can ensure the food guests are consuming is safe will ease some concerns.

Increase in Platforms

Again, in comparison to just two years ago, the acceleration in new tech for the industry is astounding. It’s also long overdue.

As a whole, the hospitality industry has been surprisingly slow to take on new tech. Although, it’s fair to say that there wasn’t much new to adopt until somewhat recently.

Now that there’s more to try out, operators seem keen to embrace tech that can help them streamline operations; improve inventory monitoring and ordering; hire employees and manage teams; engage with and market to customers intelligently; and much more.

Even better, the above map doesn’t include all of the available platforms. That’s excellent news as it means operators have an increasing number of choices to help improve their business in every category of operation.

For example, Barventory isn’t listed within the Purchasing / Inventory / Ordering segment. The platform makes taking inventory, gaining a real-time inventory snapshot, and efficient ordering a breeze. Barventory also features the world’s first live keg scale.

It’s challenging to find positives from the past 14 to 15 months. However, one good thing may be the leaps in technology our industry is experiencing.

If they continue, these innovations may make it easier for operators and their employees to recover.

A concept’s tech stack is crucial to operations and will only grow more important moving forward. Whether opting for a full KRG Hospitality package or the Mindset program, we can help operators make informed tech selections.

Map by TechTable and Culterra Capital, sponsored by Back-of-House

Featured image: Pepper by SoftBank Robotics (photo by Alex Knight on Unsplash)

Applebee's restaurant with censored, pixelated sign
by krghospitality krghospitality No Comments

International Chain Slashes Menu

International Chain Slashes Menu

by David Klemt

Applebee's Grill & Bar casual dining restaurant

If you’re curious as to whether “lean and mean” menus are here to stay as a result of the pandemic, look no further than one international chain.

Moving forward, Applebee’s Grill + Bar menus will be some 60 items lighter.

The chain’s menu will be 38 percent smaller, and the change is permanent.

Significant Overhaul

Of course, it isn’t like the Applebee’s menu is tiny now. At about 100 items, it’s still larger than most independent restaurant menus. For contrast, KRG Hospitality president Doug Radkey, in most cases, recommends 12- to 32-item food menus.

Still, the casual dining chain cutting 60 items permanently is a big move.

The decision is a direct result of the pandemic and the toll it took on Applebee’s and the industry overall. Unfortunately, like many operators big and small, chain and independent, the chain had to furlough staff. Lightening the menu made it easier for the chain to adapt and shift toward takeout and delivery.

Weak performers and complex items that affect efficiency are gone. According to John Cywinski, Applebee’s president, the decision means faster ticket times, more consistency, and better efficiency.

Among the 60 or so items that are no longer available: the triple cheeseburger, clam chowder, and BBQ brisket tacos.

Streamline Summer

The decision to eliminate dozens of complex and lagging items puts Applebee’s in a better position for Summer 2021, potentially.

Speaking with CNN Business, Cywinski said, “The team will have to be very thoughtful about every single product or beverage they introduce, and the consequence of it from a complexity standpoint.”

That thoughtful approach is crucial in large part because of Applebee’s new menu policy: When a new item comes onto the menu, an old item must go.

Accordingly, Applebee’s can remain innovative while avoiding once again inflating their menus.

With demand for social interaction, a return to normalcy, and in-person restaurant and bar visits set to explode, Applebee’s finds itself with a menu that’s nearly 40-percent smaller. That should make it simpler for the chain’s restaurant and bar teams to fill orders quickly, efficiently, and consistently.

Menu Refresh

Every operator needs to know their numbers. That doesn’t just mean costs and inventory, by the way.

Do you know the cook times for each food item on your menu? Do you know how many dishes you can make with a given ingredient? Is thoughtful cross-utilization an important element of your F&B operations?

The answers to those questions can help you identify bottlenecks in your operation and become more agile.

Another important question to consider: Do you know which menu items are your slowest sellers? If you do, answer this: Why are they still on your menu?

When you eliminate an item, yes, some guests will express their disappointment. You’ll have to weigh the costs of keeping a poor performer against freeing up resources by losing an item that rarely sells. You may even identify an item that you personally love but just doesn’t move. Again, you have to do what’s best for your bottom line.

You may not have 160 items on your menu. You may not have 100. That doesn’t mean you don’t have at least a handful of items that you can eliminate to reduce costs and increase revenue.

Image: Applebee’s Grill + Bar

Canadian flag against blue sky and white clouds
by David Klemt David Klemt No Comments

Celebrate National Takeout Day!

Celebrate National Takeout Day!

by David Klemt

Canadian flag against blue sky and white clouds

Today is the big day: National Takeout Day in Canada!

Canada Takeout is challenging Canadians to place takeout orders and set a national record.

Obviously, this national challenge is very straightforward—if you’re in Canada, order takeout!

Take Part

As an operator, make sure your loyal customers know to participate today. You know what that means—flood social media.

If there was ever a right time to leverage your social media channels, it’s today.

Post about your takeout menu. Post about any specials you’re offering to entice your customers to place takeout orders. Show off your food. Use the hashtags #takeoutday and #Canadatakeoutrecord. Encourage your customers to post their orders and use the same hashtags.

Also, ensure your receipt printing system is set to label takeout orders as “Takeout” on receipts. That makes it possible for your customers to upload their receipts to the Takeout Tracker; make sure you tell your customers to do that so they can be counted.

Go All In

Canada Takeout’s mission is “reminding Canadians to order takeout.” The organization is helping Canada set the all-time record for takeout orders today in several ways.

We’ve been over their hashtags and that you should absolutely use them. However, Canada Takeout has also created social media assets anyone can download and use. One of these assets features a fantastic slogan: “Eat well. Support local. Set a record.”

Click here, scroll down, and download. While you’re at it, make sure you’re following Canada Takeout on Instagram and Facebook.

Keep it Going

This isn’t Canada Takeout’s first initiative. The organization launched the inaugural National Takeout Day last year, April 15, 2020.

Per a press release, the hashtag #takeoutday has earned more than 160 million impressions, reaching nearly 53 million people.

Canada Takeout also celebrates other food-related holidays. Visit the site and you’ll see that they’re looking forward to Thai Food Day (April 21), Tomato Day (April 28), and Mexican Food Day (May 5).

Get your takeout menu ready, promote it on social, and help set a record today!

Image: chris robert on Unsplash

by David Klemt David Klemt No Comments

E-Commerce Alters Drinking Occasion

E-Commerce Alters Drinking Occasion

by David Klemt

According to estimates, beverage alcohol e-commerce grew by 40 percent in 2020.

Per data from the IWSR, ten “core countries” are driving that growth: Australia, Brazil, China, France, Germany, Italy, Japan, Spain, United Kingdom, and the United States. China, the reigning campion of beverage alcohol e-commerce, is expected to be toppled by the US by the end of this year.

Of particular note: growth in the above markets more than doubled from 2019, when online alcohol retail grew by 11 percent.

What this Means for Brick-and-Mortar Operations

We all know what drove the growth in online alcohol sales.

In their quest to find comfort in the midst of the global 2020 pandemic, they became comfortable with purchasing alcohol online as a long-term behavior. Alcohol brands were forced to pivot to online sales channels due to restaurants, bars, lounges, nightclubs and other brick-and-mortar F&B operations facing constantly shifting restrictions and closures. (See also: Los Angeles County restaurant restrictions.)

To compete, operators must continue to do what they’ve had to even before a pandemic absolutely ravaged the hospitality industry and millions of people’s livelihoods: adapt.

For at least several more months, drinking at home will be its own occasion, for obvious reasons. The IWSR expects brands to invest more into online alcohol retail. If that proves to be the case, operators can expect–as a worst-case scenario–fewer dollars spent on their brick-and-mortar operations.

Getting creative with alcohol delivery, takeout and pickup is crucial to give operators the best chance to be included in the at-home drinking occasion.

The Trends to Watch

In terms of delivery trends, you can click here for food trends so you can consider complimentary beverages. Click here for 2021 drink trends, which certainly include alcohol-free beer.

Athletic Brewing Co. alcohol-free craft beers.

Athletic Brewing Co. alcohol-free craft beers. Image: Athletic Brewing Co.

Speaking of delivery, the growth in alcohol e-commerce makes owning the guest journey by offering direct delivery even more important.

The IWSR has identified their own set of trends tied to the growth of alcohol e-commerce:

  1. As touched on above, at-home drinking becoming its own occasion outright.
  2. Premiumization will change. Some consumers will experiment less and focus on their favorite brands, and others will turn to brick-and-mortar channels for premium experiences.
  3. Politics will play a noticeable role on beverage alcohol, not just in the US but across the globe. Tariffs could change and strict e-commerce regulations could loosen.
  4. RTDs will remain strong or get stronger. Per the IWSR, “innovation in alcohol bases, exploration of new and increasingly local flavors, and premium product offerings” will ensure RTDs remain a crucial beverage category in 2021.
  5. Low- and zero-alcohol drink options will continue their evolution. Once stigmatized, these drinks exploded in popularity in 2020. For 2021, the IWSR expects them to become aspirational.

Last year changed the industry. Comfort, convenience, and a heightened awareness of health and wellness are altering how people consume and engage with brands, restaurants and bars. Operators, already facing challenges from all sides, must take the time to develop strategies to compete for e-commerce dollars.

Image: mentatdgt from Pexels

by David Klemt David Klemt No Comments

Orange County’s #OPENSAFE Restaurant Collective Defies Governor Newsom

Orange County’s #OPENSAFE Restaurant Collective Defies Governor Newsom

by David Klemt

A group of California restaurant operators is pushing back against current restrictions in defiance of orders they feel go too far.

Gov. Gavin Newsom’s stay-at-home order mandates that restaurants remain open only for delivery and takeout. The order affects five California regions: Northern California, the Bay Area, Greater Sacramento, the San Joaquin Valley, and Southern California.

Throughout 2020, similar orders have been issued throughout the United States. They’ve included an array of restrictions, from banning indoor and outdoor dining to choking traffic by imposing significant capacity restrictions.

Allowing only delivery and takeout is not the health and safety solution lawmakers believe it to be. Third-party delivery platforms and their policies can be detrimental to operators, worsening an already bad situation.

Several operators in Orange County, located in the Southern California region, are, per an Instagram post, refusing to comply with Gov. Newsom’s order.

The statement on publicist Alexandra Taylor’s Instagram account is posted in its entirety below:

“We, as responsible small business owners and operators, do hereby declare our intention to protest the current state stay home order and to maintain our safety standards of service as set forth by country and state health guidelines.

“We cannot, in good conscience, allow our employees and their families to have their health and safety jeopardized as resources to them have been exhausted.

“We will continue and strengthen our mitigation of the potential spread of SARS-Covid19 with the highest standards of safety protocol including, but not limited to: Outdoor Dining, Socially Distanced Seating, Mask Requirements when not seated, PPE, Readily Available Sanitizer to back of house/front of house staff, immediate quarantine and isolation of potentially infected employees, Barriers to prevent close quarters transmission between guests, limited capacity, etc.

“Although eating and drinking establishments (both indoor and outdoor) have shown to increase the potential for viral transmission, current data also indicates that travel and essential shopping have as much as a 10x more likely chance of transmission than these establishments based on CDC risk assessments.

“We agree, as responsible business owners, to commit to staying open with a dedication to public health.”

The image of the statement is accompanied by the hashtag #OPENSAFE and American flag emoji. More than 80 Orange County establishments that support the #OPENSAFE movement were listed in the caption of the post at the time of publication. The original post states that the list of venues is growing daily.

Taylor, the founder and president of The ATEAM, included a caption that read, in part:

“RESTAURANTS. I represent them, I invest in them, I celebrate them, I support them, I am passionate beyond words for them, for the PEOPLE behind them— and I will fight for them.

“This is a declaration for not only restaurants but all SMALL BUSINESS OWNERS to commit to STAY OPEN SAFELY and RESPONSIBLY, while giving their establishments, their employees, and their families a fighting chance to survive this BS.”

State and county officials across the nation can impose a number of penalties on businesses that defy orders. Fines and temporary suspensions of business licenses appear to be the most common. In Chicago, for example, operators can face fines in excess of $10,000. One restaurant, Ann Sather, owned by Chicago Alderman Tom Tunney, violated a ban on indoor dining and ignoring Covid-19 safety rules and faces a maximum fine of $10,500.

Earlier this year, a restaurant in Monterey County, located in California’s Bar Area region, faced fines of up to $35,000 violating shelter-in-place orders.

It’s unclear at the moment if the collective of defiant Orange County operators will face consequences for their civil disobedience. Orange County Sheriff Don Barnes has stated that the department has no intention of enforcing Gov. Newsom’s order closing restaurants.

“Orange County Sheriff’s deputies will not be dispatched to, or respond to, calls for service to enforce compliance with face coverings, social gatherings, or stay-at-home orders only,” said Sheriff Barnes. “Deputies will respond to calls for potential criminal behavior and for the protection of life and property. Our actions remain consistent with the protections of constitutional rights.”

Whether operators in other counties across America coalesce around their own #OPENSAFE movements remains to be seen. The consequences must be fully understood and weighed, and law enforcement’s stance on enforcing stay-at-home and shelter-in-place orders regarding bars and restaurants must also be considered.

Two things are, however, clear. One, operators have had enough. Two, government officials need to listen to restaurant and bar operators and workers about the impact of restrictions before issuing orders.

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