Are you built for speed?
For many restaurants, speed has long equalled sales. Consider a study from Northwestern University’s Kellogg School of Management, which found that every seven seconds a restaurant decreases drive-thru wait time generates a 1 percent increase in sales. In a similar vein, the restaurant chain Veggie Grill recently introduced predictive ordering technology that makes it possible for line cooks to start preparing an order as the guest is ordering it — not after the guest has paid — and has shaved valuable seconds off of wait times as a result. This need for speed will only increase as restaurants cater to millennials, a generation that eats out more often and spends more money doing it than any other generation. FSR magazine reports that faster service could be one of the most important factors driving millennials, who have grown up with the expectation of speed and efficiency when it comes to the products they buy. When you look at your operation’s pain points, where is business slowing down? Do you have slow lines of guests waiting for tables or waiting to pick up orders? Do guests have to wait longer than desired to have their meal served or to pay their check? Start at those points and determine how you might speed up your processes while maintaining the human interactions that help people connect with your brand.
Services emerge to fill last-minute staffing needs
Labor shortages and last-minute staff cancellations got you down? Increasingly, companies are popping up to fill restaurants’ needs. Joining companies like Jobletics in Boston, Jitjatjo in New York and Wonolo in San Francisco is Snag Work, a Richmond, Va.-based company that recently expanded to Washington, DC and claims to resemble an Uber for restaurant operators, allowing them to fill shifts at the last minute. Similar to how Uber users pay a higher fee during peak times, Snag Work users might pay a higher rate on a Saturday night or if they need a stand-in with more skills, such as a mixologist. While these last-minute hires tend to be more expensive, Washingtonian reports that the extra expense has been worth it to a good number of operators. Some restaurants that use the service have been selecting specific fill-ins repeatedly — and at times finding new hires.
Be a smooth operator
It’s a new year – take a fresh look at your restaurant’s efficiency. FSR recommends you consider these ideas: What steps does your team have to take from creating the menu to delivering service? If you analyze each step, you’ll uncover processes that are slow, messy or inefficient. Where is technology needed – or not? Too little capacity can stall your growth during peak periods and too much adds unnecessary expense, so ensure you have the right support to ease your biggest pain points. Is your restaurant’s layout as efficient as possible? More space means greater costs so make it count by considering how employees and guests move throughout the restaurant. Are your menu items and promotions easily prepared during peak periods? If not, simplify. Do you have the right staff in place at the right time to increase sales? Remove bottlenecks and roadblocks so the smallest number of people can capably provide the best hospitality.
Moneyball for restaurants
Can you quickly answer questions such as “Who are my best- and worst-performing servers?” or “Why are my ingredient costs rising?” Your competition may be able to. Consider tuning in to software companies like Damian Mogavero’s firm, Avero, which advises 10,000 restaurants in 70 countries about how to use data to maximize performance – much like how statistics were applied to make a winning baseball team in the film Moneyball, Skift reports. The company scrutinizes data that can get lost in a spreadsheet. It consults about such topics as how to identify and stop theft in a restaurant as technology evolves, or for seasonal operators, how weather patterns affect business and how to make the most of the weather they get. Mogavero details the power of analytics in his new book, The Underground Culinary Tour.
How a food trend is born
Do you know how avocado toast, broccoli rabe and kale became hot menu items? The Wall Street Journal and food and beverage consulting firm PadillaCRT analyzed trendy foods’ paths to stardom and found they have qualities in common: It must be approachable and easily understood by a mass audience – something a person could assemble without tracking down special ingredients. It must be seeded with the right group – PadillaCRT’s Jason Stemm said avocado toast took off after it was served to clean-living aficionados at the Wanderlust “Yoga in the City” event in New York in 2012. Finally, the trend must have a means to expand, whether that’s adoption by celebrities, an Instagram-worthy appearance, or a mention on a popular food blog. For the record, Stemm predicts kale sprouts could soon have their moment in the spotlight.
Starbucks commits to hiring refugees, providing healthcare
As the restaurant industry adapts to a new administration, Starbucks has stepped out with an announcement that may make waves: CEO Howard Schultz announced recently that Starbucks has committed to hiring 10,000 refugees over five years and will continue to offer health insurance to employees, whether or not the Affordable Care Act is repealed. QSR magazine reports that Schultz said the company will focus first on hiring those refugees who have served with U.S. troops as interpreters and support staff in countries where the U.S. has needed support. He promised that if the Affordable Care Act is repealed, employees will be able to reclaim their insurance coverage within 30 days of losing it, rather than wait for open enrollment.
Food delivery industry’s bumpy ride
Industry analysts point to food delivery as the big space for growth in 2017. But there’s much to learn from the industry’s growing pains: Take Munchery, the San Francisco startup that cooks and delivers meals to hundreds of thousands of customers in several cities. Bloomberg reports that according to current and former employees, Munchery has had to cut back on premium ingredients like organic chicken and wild salmon to keep budgets in check, and that from September 2014 through July 2016, Munchery’s San Francisco kitchen made more than 653,000 meals that were never sold. While a company spokesperson said overproduction was a given in the food industry, the startup’s challenges reveal difficulty in striking the balance between profits and losses in food delivery.
Tap into the wedding market
Domino’s has found an innovative way to appeal the Millennial consumer base and capitalize on guest loyalty: Pizza lovers who are engaged to be married can now create a wedding registry on the site. Registrants who prefer receiving gifts of pizza instead of the traditional wedding china can register for pizza to be served at wedding festivities like bachelorette parties or offered as a take-away to guests as they depart the wedding reception. Couples can also register for gift cards good for a low-key date night or night off of cooking sometime after their wedding. Registrants can share their wish list with guests on social media, of course.
Walmart finds an organic restaurant partner
In a new sign showing the mainstream appeal of organic food, a Walmart Supercenter near Orlando, Fla. is opening an organic quick-service restaurant, according to Restaurant Hospitality. The restaurant, Grown, is the first quick-service restaurant on the east coast to be certified organic by the U.S.D.A. The restaurant, which was founded last year by the former professional basketball player Ray Allen and his wife, Shannon, serves breakfast, soup, salad, sandwiches, wraps, smoothies and cold-pressed juices. Walmart pursued Grown as a partner to help promote foods local to Florida and connect guests to fresh foods sold in other parts of the store.
Signs of a vendor that protects food safety
Considering a new food vendor? Or trying to decide whether to split from another? Food Safety magazine suggests you analyze a number of factors, such as to what degree they’re innovating. For example, do they have continuous temperature monitoring so that if there’s a problem with your order, they can demonstrate the temperature of the stock at all stages of the journey? Do they anticipate your needs, stay in touch and add unexpected value? Such companies often show their leadership by serving on councils that make it a public service to share their expertise. Your vendors, whether it’s your pest control expert or the account manager of your seafood supply, should make an effort to be on a first-name basis with you and expend extra effort to ensure your needs are met.
The biggest food recalls of 2016
Food recalls surged 22 percent last year as compared to 2015 and two of the main sources were Listeria contamination and undeclared allergens. Major culprits included milk, eggs, peanuts and wheat and a smaller, but still significant, number of recalls were issued for soy and tree nuts. That's according to Food Safety magazine, which tracked food product recalls issued in the U.S. and Canada based on announcements from the U.S. Food and Drug Administration, the U.S.D.A.'s Food Safety and Inspection Service and the Canadian Food Inspection Agency. The recalls stemmed from a variety of causes, including insufficient food production and monitoring processes, failure to maintain facilities and equipment, failure to comply with federal food safety regulations and inability to track ingredients through the supply chain.
Mobile technology driving future of the drive-thru
Technology changes so quickly that it can be hard to know where to invest – but mobile technology seems to be at the foundation of much of it. Take the touchscreens appearing at many drive-thrus nationwide. Restaurant Business reports that in five years, those screens will be passé. It’s more likely that the drive-thrus of the future will be pick-up windows for food that guests order in a variety of ways, according to Rob Grimes of the International Food and Beverage Technology Association, such as via voice-recognition software on site, the restaurant’s website, mobile apps or their car’s GPS system. Some operators are already using mobile apps that connect to their restaurant’s point-of-sale system to order food and set a pick-up time, at which point restaurant staff bring the meal to the person’s car.
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