In the past, takeout business was often a nice-to-have option for restaurants – not necessarily the centerpiece of service. But that is changing – and restaurants are finding ways to translate the success of a brand with a solid on-premise history into one that doesn’t offer much of an on-premise experience. One example: Inspire Brands’s Buffalo Wild Wings restaurant. As CNBC reported recently, the sports-bar chicken wing brand launched a quick-service, delivery-and-takeout-only offshoot called BWW Go four years ago – and they have opened 100 locations since then, with another 50 planned for the remainder of the year. Takeout and delivery sales for Buffalo Wild Wings are now around 33 percent of all sales, up from 15 percent pre-pandemic, according to the business. The restaurant’s off-premise play seems to have worked because their customer base enjoys staying home to watch the big game, their product is not only popular and easy to customize but also travels well, and many customers know and trust the brand from their on-premise experience there. If, like many restaurants, you’re experiencing a surge in off-premise sales in recent years, how comfortable are you with how your brand translates outside of your dining room? Could you offer menu items that travel better? Are you finding ways to bring the personality of your brand into people’s homes with every takeout order? Are your delivery partners preserving your commitment to service – or could you incentivize customers to collect their food from you so you can strengthen face-to-face engagement? Or is your brand ripe for a Buffalo Wild Wings-style reinvention, with an off-premise offshoot that reliably provides the experience customers expect from the parent brand? Perhaps it has to do with the flexibility of post-pandemic schedules, the rise in hard-to-acquire dinner reservations in various places around the country, the need for restaurants to maximize sales opportunities, or all of the above, but the demand for quality lunch options appears to be on the rise. According to one restaurateur in a recent report from Eater New York, lunch has become the “new post-pandemic 5 p.m. reservation,” with multi-course, prix-fixe lunch menus popping up around the city. Offering enhanced lunch options could work well beyond major metropolitan areas like New York: Dinner reservations are becoming more difficult to secure at restaurants in many cities and towns around the country, and recent reports have indicated that restaurants are seeing more opportunity in catering (which has a lot of sales potential at lunchtime). Lunch could be an opportunity to give guests access to an elevated experience for what feels like a better value, provide your staff greater flexibility with scheduling, and make more efficient use of your space and inventory. Could innovating at lunchtime work for your business? Devoting more of the menu to vegetables isn’t simply on-trend right now – it’s also an ongoing strategy for managing supply chain snags and inflation concerns, particularly as restaurant pricing continues to outpace grocery store pricing. According to recent research from Nation’s Restaurant News, 58 percent of restaurant operators of all sizes and service styles name supply chain problems and inflation as their biggest pain points right now. But at a time when consumers are looking for their restaurant experience to feel like a good value, operators aren’t able to sacrifice service or menu development in an effort to cut costs. Could reimagining your menu help? A recent Restaurant Hospitality report says more chefs are looking to further reduce large-format animal proteins and incorporate vegetables in creative ways in order to counteract the high costs of ingredients, labor and transportation, as well as to better manage the availability of ingredients. That could mean pushing the vegetarian content on menus toward the 30 percent mark for restaurants that have traditionally served more meat. This summer could be a good time to integrate more local produce on the menu and preserve it in a range of ways for the cooler months – not in an aim to mimic meat but to offer an unexpected experience with plants. Combine these foods in vegetable-forward dishes with beans, legumes, hearty whole grains and other satisfying plant proteins to test potential applications in the center of the plate – and to gather guest input too. Despite all that has been done to simplify restaurant menus in the past few years, it appears there may be room to go further. Restaurant Business says that according to a newly published survey of 1000 consumers by U.S. Foods, the average restaurant guest spends nine minutes perusing the menu before ordering — and for the vast majority of guests, that is on top of the time they spend skimming the menu before arriving at the restaurant. Further, even though 82 percent of guests said they prioritize convenience when they choose where to eat, the average guest spends 23 minutes contemplating what to eat — not the most convenient way for guests to access restaurant food (or the most efficient way for restaurants to turn tables, either). So where is there room for change? Most consumers surveyed said they dislike QR codes and even more said that physical menus should be available at restaurants, so it sounds like the physical menus themselves still need greater simplification and clarity. The survey found that more than half of consumers said they still felt they had too many options to consider on restaurant menus, while 79 percent said they struggle to decide what to order. They key elements that consumers said they preferred on menus included clear descriptions that listed all ingredients, images of menu items, and prices, so you might consider these factors as a guide. In your on-site interactions with guests and in guest reviews, do you detect signs that your menu needs further simplification? Are guests confused by the variety of options, looking for ways to modify existing menu items, or struggling to find items in their price range? As you optimize your menu in the coming months, there may be opportunities to refine your options and make the process of ordering from you faster and more convenient. Experiential. High-value. Exclusive. These words come up repeatedly when consumers are surveyed about what they enjoy about restaurant dining nowadays – and what makes them crave a return visit. In the recently published LDEI Trends Report 2023, one theme that emerged was how bringing chefs front and center – in more ways than before – can help restaurants succeed in accommodating those consumer preferences. The visibility of your chef can send a message about everything from your restaurant’s values to the quality of the experience you offer. Because consumers are increasingly savvy about ingredients, food sourcing and how various foods affect their personal health, chefs can add interest and education to a menu offering by finding ways to share the story of sourcing a special, high-quality ingredient and how it makes a significant difference in a dish. They can also make on-trend meal preparation methods more accessible – like by showcasing how to bring vegetables to the center of the plate in appealing ways, for example. Seeing chefs cook – in a pop-up setting, table-side, at a chef’s station in your restaurant, or even in a food truck – can lend some spontaneity to a meal and make it feel like an exclusive experience – something worth more than the price of the food itself. Regardless of your restaurant category, you can benefit from making your chefs a highly visible part of the experience you offer. Are there opportunities you haven’t tested yet? Like never before, restaurants are gaining new tools to collect guest data and mine it for increasingly precise insights. This information is feeding limited-time offer ideas and menu development, as well as expanding operators’ capabilities in terms of the targeted communications they can send to subsets of guests. It’s also shifting the competitive landscape for restaurants as businesses adopt restaurant technology in varying degrees. Sweetgreen’s CEO, for example, recently announced that the salad brand would like to do for the menu what Spotify did for the playlist – in other words, identify exactly what ingredient and nutrient combinations people want and need to eat, then executing that to a specific degree. Expedite reports that Sweetgreen’s robotic technology, currently in use in two of the brand’s 225 locations, can dispense all of the restaurant’s 55 ingredients with the exception of avocado and salmon, which require human intervention. So far, the technology is proving to lift check totals and margins (it can measure ingredients down to the gram, eliminating waste). The planned expansion of this offering sets the stage for guests to not necessarily order off the menu, but to get customized recommendations based on the information they are willing to share about themselves. To be sure, most restaurants won’t be investing in the kind of robotic technology that is in place at Sweetgreen. But the changes at Sweetgreen – and similar changes at other brands – are apt to incrementally move the needle when it comes to consumer expectations. What mechanisms can you put into place that will allow you to address a range of dietary needs and preferences? Over the years, how much happy hour business (or other after-work business) has your restaurant generated? If this part of the day once provided a steady stream of traffic for you on several evenings a week, chances are times have changed -- due to factors such as the increase in hybrid work schedules post-pandemic, people’s desire to keep their professional and personal lives separate, and a decline in alcohol consumption. Research from Fox Business found that happy hour traffic has dropped by 49 percent in recent years. If this has impacted your business in any way, it could be a good time to gather your team and identify some new potential business streams – or simply shift your approach to the after-work crowd by offering some different options. While people may not be looking to stop in for appetizers after work, maybe they’d go for a pre-workout smoothie, meal kit or easy weeknight takeout. Maybe you can approach the offices that once gave you more after-work business and make them aware that you can cater their in-house lunches and meetings so they can make their employees’ less-frequent in-person connections feel more worthwhile. Or perhaps, now that the warm weather is coming, you can come up with a limited-time offer that will draw people to your outdoor dining area. Your data provides clues as to what your guests crave and when. What adjustments can you make that will help your business be as nimble as possible in the face of shifting traffic patterns? Over the past few years, restaurant operators have had to deal with multiple constraints – smaller, more streamlined menus, a shrinking supply of ingredients, and labor challenges that have made it difficult to innovate. But according to Technomic’s recently released State of the Menu 2024 report, which is based on input from the top 500 chain restaurants, limited-time offerings are helping to address a number of these issues – and are a growing area of focus in restaurants for that reason. Technomic’s research found that from 2020 to 2023, LTOs increased by 52.7 percent. These short-lived offers can give restaurants freedom to innovate, so brands can retain their streamlined core menus but pour some creativity into a special. They give restaurants a chance to offer premium ingredients or special presentations that can motivate guests to visit and help restaurants boost the value of the experience they provide. To be sure, LTOs require planning and resources to be successful, though work-arounds are emerging in that area. (Premier, for one, recently launched a Menu Innovations Program for its members that includes a prepackaged LTO concept each quarter. It includes everything an operator needs to prepare an LTO for launch, from recipes to marketing materials.) Is there room for your restaurant to use more LTOs to drive innovation in the kitchen – as well as improve guest engagement? Restaurant prices have undergone a reality check in recent months and years. If, like the vast majority of operators, you have had to hike menu prices to keep pace with such stresses as inflation and rising staff compensation, your guests may scrutinize their spending a bit more – perhaps cutting back on visits or ordering less when they do. Or, they may visit you on occasions when they are apt to eat a bit less – like for an after-work snack and beverage with a friend or a pre-workout boost. But you can take some steps to manage the perception that you’re stretching guests’ budgets and also drive off-peak traffic by making your between-meal dining occasions feel more special. For example, you can double down on your value options – guests are still apt to respond to offers of combo meals, meal bundles and other items that make them feel like they are getting more for their dollar. Pour some creativity into your between-meal periods by offering some eye-catching hot and cold beverages that guests can customize with their own additions. It’s also important to get personal: New research from TouchBistro found that 64 percent of restaurant operators are sending personalized offers to guests, up from 55 percent last year. So even if you’re already sending personalized offers to your best guests, your offer may be one of several vying for their attention. Drill down on your guests’ habits and lifestyles to ensure you’re offering food and drink options they will want to make part of their day. Much as we hear about the rise of robotic workers in restaurant kitchens, far more operators are looking to tech to augment, rather than replace, human staff. That’s according to the National Restaurant Association’s State of the Restaurant Industry report 2024, which found that while 47 percent of operators believe automation will become more common this year, 69 percent believe that tech will be more commonly used to support existing workers rather than replace them. One area where restaurants can focus such efforts is on their most manual, physically arduous tasks. A recent Restaurant Business report quotes ZipRecruiter research that found that workers had “real aversions to jobs that involved real physical labor.” Starbucks is one brand that has responded to this: Their cold drink orders, which comprise 75 percent of their sales, require a steady stream of ice that baristas once had to lug inside by heavy bucketfuls throughout the day. But new back-of-house technology has enabled the business to send ice into the kitchen via a pipeline, thereby eliminating that heavy lifting. To be sure, such changes require investment, but they can also save money on the back end by decreasing turnover. In your operation, are there tasks that get passed from one worker to another – or are frequently skipped because they require too much physical labor? These may be key areas to implement tech-driven supports that make work easier for staff. |
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