If your guests are game to load funds onto a digital wallet or prepaid gift card in exchange for a special offer, you can help cut back on the fees you have to pay to support credit card transactions. While retailers are charged a fee by credit card companies each time a customer pays with a credit card, Skift Table reports that many of those retailers are bypassing the fees by joining the lower-cost Automated Clearing House network, which was set up decades ago by U.S. banks to facilitate the exchange of money between banks. Other companies, like Starbucks, are encouraging customers to load funds onto a prepaid gift card — a setup that means Starbucks only pays a swipe fee when a customer loads funds onto the cards, not each time she buys a latte. Still others are joining networks (LevelUp is one) that help businesses band together and use their combined scale to negotiate more
How well does your menu use vegetables as not just vegetables, but as ingredients that blend into the background — and in the process, make for a healthier dish? Cauliflower, for one, has surged in popularity in recent years, with sales of its products climbing 71 percent last year according to Nielsen data. (Having taken hold as a pizza crust ingredient and rice substitute, it is now moving into the snack category: Fast Company reports that a number of brands are releasing cauliflower-based snacks such as pickled cauliflower and cauliflower-powder based pretzels, crackers and chips.) But since cauliflower is expensive and difficult to mass-produce, there is room for other vegetables to take hold as undercover ingredients. This New Year, as people look to reset their health, where can you incorporate nutrient-dense vegetables in ways that allow them to disappear into the background?
Launching a loyalty app? Walk your talk.
Having a loyalty app is a great way to build a strong following — if you don’t look at it as a “set-it-and-forget-it” kind of tool. As Cake suggests, having a loyalty app can go far in helping you connect with your audience — especially Millennials and Gen Z, who are apt to spread the word about you on social media. But on the flip side, those guests also have high expectations of your transparency. If you’re targeting this population with your app, be willing to share details about how your food is made, where it comes from and how you manage your business (or at least be ready for questions about it). Having an app is a strong upselling tool, helping you to build check totals by suggesting menu items that may not have been front-of-mind for customers. Just be sure to focus on your guests’ preferences and frequency of visits, as visibly focusing on check tallies (and tying rewards to dollars spent) can be a turnoff. Finally, having a loyalty app can be a data goldmine — but you need to have the foundational technology in place to funnel that data into insights that feed your broader marketing strategy.
When you need to revamp your strategy
Any restaurant can experience peaks and valleys in sales – so how do you know when you need to rethink your restaurant’s strategy? In a recent Toast blog, restaurant coach Donald Burns identified a couple of key areas to consider: First, does your restaurant plan need adjustment? Consider how your guests see your brand, how that compares with how you see your brand, and how you might need to reposition your brand in your market. Also ask yourself if your product mix is right – review your sales reports to determine what is selling (not what you want to be selling). Second, do you need to replace staff? Perhaps you have a culture that doesn’t attract top talent, or you made bad hires and kept them. Address snags in these areas – and in any other areas that keep you awake at night – to set your business on a positive course.
Gift card give and take
Last year, 90 percent of consumers either purchased or received gift cards, First Data Corp. reports. To stand out from the crowd of retailers offering them, it’s important to get creative. Restaurant Hospitality recommends you offer foods rewards instead of monetary ones – or let the person buying the card get a piece of the reward too. Saladworks in Conshohocken, Penn., for example, offers a free salad with a gift card purchase instead of a cash reward. Other brands offer menu items or cash bonuses that correspond with different gift card price thresholds. Try to use your restaurant’s personality to help make the sale, like Chicago-based Portillo’s, where employees in the drive-through are known to dangle gift cards from their hats – the tactic helps the brand sell more than half of its gift cards for the year.
Growing pains for operators who don’t accept tips
For restaurant operators that have gone the no-tipping route, running a business has become like assembling a jigsaw puzzle – or, says one director of operations, like opening a new restaurant. In a New York Times report about restaurants that have made the switch, the businesses have tried different strategies to adjust to the tip-free model: adding bulk to a plate to better justify a higher charge, adding a smaller cut of meat to the menu to balance a larger and more expensive one, limiting some organic produce, working with a smaller kitchen crew, and buying ingredients in bulk and in partnership with other restaurants to save on expenses. Expect more adjustments to come as operators test their pain points – and those of their guests – when it comes to adjusting menu items, prices and staff.
Back to basics for Chipotle
While Chipotle would surely like to say good bye to 2016, the brand’s challenges this year provide a valuable list of lessons for the rest of the industry. The Chicago Tribune reports that its efforts to win guests back following its brief wave of contamination incidents have fallen flat, with sales down 22 percent in the most recent quarter. While Chipotle has tried overhauling food safety measures, adding chorizo to the menu, launching a summer rewards program and offering free kids’ meals, it now seems to be running into trouble on such customer service no-nos as long lines, messy dining rooms and drink stations, and missing ingredients. Now it sounds like the brand is refocusing on the basics that made it a darling of the industry in the hopes that guests will return.
Automation spreads from coast to coast
Eatsa, the eatery that offers quinoa bowls from a high-tech dispensary with minimal human involvement, now has a New York restaurant to match its west-coast outlet. Guests order food from tablets in the restaurant or via smartphone app and pick up their food from electronic cubbies. While humans do work at Eatsa, they’re limited in number, working behind the scenes making food and standing out front to answer guest questions. Eater reports the model helps the brand cut costs and customize orders too – Eatsa owner Scott Drummond hopes to bring the cost of a quinoa bowl from $7 down to $5 and further develop its technology to offer custom bowls to guests based on their past orders.
The bar menu gets reinvented
Seventy percent of people between the ages of 21 and 34 purchase alcoholic beverages away from home at least once a week, reports Technomic and Beverage Marketing Corp.’s new On-Premise Intelligence report. That’s compared to just 48 percent for everyone older than those in that bracket. To capitalize on younger consumers, the report predicts we’ll see more alcohol popping up on menus at limited-service restaurants – Taco Bell and Starbucks are already cashing in on this idea. These consumers like to branch out and try new flavors, so bars targeting the demographic will offer a broader variety of alcohol categories, brands and styles, limited-time drink specials that rotate through the menu, and craft beer made on site.
Restaurant industry flexes to accommodate the independent worker
More cafes and restaurants are finding ways to embrace the 35 percent of the workforce who work independently. Eater recently reported on some newer approaches for appealing to these guests, such as cafes charging guests a $6 flat fee for their first hour spent onsite, then five cents each hour thereafter, which grants each person a workspace and unlimited coffee, tea and snacks. Others offer hybrid hospitality/workspace for monthly fees ranging from $95 to $220. In cities with bustling happy hour and evening business but non-existent lunch business, restaurants are offering space to independent workers during the day when they purchase either a monthly or day pass.
Protect your dry goods storage
Start your new year with a food supply that meets safety standards. Food Safety magazine shared some simple rules for making sure your dry goods are stored safely: Rotate your food – the first item in should be the first out. Keep your storerooms dry, well ventilated and cool (between 50 and 70˚F), with humidity of 15 percent or less. Avoid storing food in direct sunlight. Store food at least six inches from the floor and at least 18 inches from walls to minimize the development of condensation and ease cleaning and vermin control. Keep doors and windows sealed and shut whenever possible to prevent the entry of rodents, insects or birds. Finally, have adequate space to accommodate what you store. Use this equation to help determine if you have sufficient space: Required storage area (sq. ft.)= (Volume per meal x number of meals between deliveries)/(Average height x fraction of usable storeroom floor area).
A purple blow torch promises safer food
A major food safety innovation on the horizon could help restaurants prevent norovirus. Food Safety News reports that cold plasma treatment, also known as a purple blow torch, kills 99.9 percent of norovirus on blueberries without harming the fruit. The researchers report that the method has the potential to extend shelf life by slowing spoilage rates. While they say there is further research needed before the cold plasma method is available commercially, they expect the technology to be accessible and affordable for the food industry to use. Food Dive reports that when that occurs, it could revolutionize the industry, benefiting the security of meats, poultry and produce.
Do you have the right point-of-sale system for you?
Are you using a retail point-of-sale system at your restaurant? Toast outlined why even if it offers you the basics, it’s likely holding you back. A system designed for restaurants will offer you table management, online ordering (without having to pay a third-party ordering site), and analytics that will help you see what sold best that day, how you can create sales forecasts and which server generates the best tips. It will help you develop a reliable customer database that tracks who your most loyal guests are, what they love about you, and what they order -- information you can use to deliver communications and promotions that resonate with them. Finally, it offers efficiency by helping you integrate your inventory, sales, employee scheduling, loyalty program and customer database. Does your current system offer these tools?
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