Takeout

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

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

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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

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

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)

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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

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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