Any chef can confirm it: Running a restaurant well can require the skills of a lawyer, doctor, designer, HR manager, mechanic, janitor, and the list goes on. And that’s on top of having to offer an appealing, in-season menu that can be readily adapted to different nutritional needs. While that ever-changing environment can bring interest and variety to each day, chances are you were drawn to the restaurant industry more because of the food than for your ability to negotiate a beneficial contract or identify the best cleaning supplies. Further, the multitasking often required in a restaurant setting can kill productivity: A University of Michigan study found that when a person attempts to accomplish more than one task at a time, productivity drops by 40 percent. Team Four’s Palette program can serve as an extra pair of hands, taking on some of the responsibilities on your plate so you can multitask less and focus more on parts of the business that suit you best. For example, Palette can help you fine-tune your brand, including redesigning your menu or updating your graphic identity on your website, signage and marketing materials. You can also access restaurant equipment, linens, office and cleaning supplies, along with services for managing waste collection and pest control. And in case your menu or inventory needs attention too, we can help you develop new recipes, identify cost-effective menu substitutions, improve your food safety record and offer negotiated contract pricing to help ensure you’re getting the products you need at the best value. You can access the full list of services included in Team Four’s Palette program at www.palettefoodservice.com.
Now that Uber Eats is testing a “Dine-In” feature on its app, expect other third-party delivery providers to follow suit. The feature allows a person to order food at a restaurant, track the process of its preparation so she can arrive at the restaurant in time to eat it, and also leave a tip. The benefits to restaurants could include having to pay a smaller fee to the delivery provider than would be required for third-party delivery, faster table turnover, and the opportunity to offer deals that could attract dine-in guests during slow periods. It remains to be seen how accurate the app’s food preparation tracker will be at peak periods, but if you’re struggling to fill seats, it might offer an opportunity to entice guests to come in and sit down.
Placing a few bits of information on your TCS food storage bins can have a range of benefits: It can help you avoid serving expired product that could potentially lead to illness, give you a heads-up about when you’ll need to offer specials to get rid of excess items, save you money, and demonstrate to your health inspector that you’re managing your operation well. Upserve suggests you use a food rotation label that clearly lists the type of food being stored, the date it was prepared and added to the storage area, and the date it will expire. Then all it takes is a quick scan to make sure the first bin in is also the first one out.
You stick to strict cleaning procedures and take steps to avoid the cross-contamination of foods, but how much do you know about the quality of the air in your facility? You may have excess dust accumulating in the air that can contaminate food, or moisture from ovens that can generate condensation and lead to mold. Further, the simple act of cooking can make indoor air as dangerous to breathe as smog, according to new research from HomeChem. Asthma or other respiratory ailments on your kitchen team can signal you have a problem, but you can improve air quality going forward by maintaining appliances and ventilation units routinely, having your air tested for chemical or biological pollutants, replacing old cookware with models that are less likely to contaminate the air, and using natural building materials and decorative elements in your restaurant.
It’s the season for grabbing some prepared food to go, then enjoying it at summer picnics and other outdoor events. If you offer grab-and-go foods, double check that you’re following food safety procedures so you can avoid contamination hazards and other safety risks. Daymark Safety Systems suggests operators follow several steps to protect grab-and-go storage areas. Regularly clean any doors, shelves, machine dispensing areas and lights that are part of your food displays. If you have any automated kiosks with touchpads, clean and also disinfect those high-touch areas to kill any contaminants — you may need to leave the disinfectant on the surface for a few minutes before wiping it away. Check regularly for spills on the floor and within your display, and consider using an absorbent pad or mat to reduce the risk of slips when spills occur. Clean floors at least once a day, and ensure trash and recycling bins are cleaned inside and out and don’t become overfilled.
The love-hate relationship between restaurants and third-party delivery providers continues to show some cracks. As of this writing, there had just been a hearing in New York to hash out differences regarding the fees that third-party vendors charge restaurants for their services, which tend to range from 12 to 30 percent of each check total, according to the AP. In the meantime, some restaurants have alleged that the charges from third-party delivery companies aren’t stopping there. A class-action lawsuit filed in Pennsylvania in May claimed that Grubhub was charging for calls to restaurants that were made through the Grubhub app even if the call did not result in an order. (For example, a New York Post report said calls for reservations and customer complaints were being charged.) And there’s yet another wrinkle: A new report in New Food Economy found that Grubhub had purchased more than 23,000 potential restaurant website domain names, which would enable the company to prevent the restaurants from using those domains (without Grubhub’s involvement, anyway) to support their businesses. The sites appear to be for the restaurant in question but phone numbers shown on them direct users to Grubhub and then are forwarded (and charged) to the restaurant. Grubhub then receives a commission between 3 and 15 percent per order placed this way. For its part, Grubhub told New Food Economy that it purchased the sites to give restaurants an additional source of restaurant orders and that any affected restaurants could request to have their domains transferred to them. Regardless of the outcome, at a time when delivery has become compulsory for restaurants, restaurant operators would be wise to screen their contracts carefully — and to consider the future of their web presence. Third-party delivery vendors can help smaller brands compete with larger ones that have the resources to manage their delivery in-house but it’s important to understand where the costs may outweigh the benefits.
Is this tech fThere is a lot of noise in the restaurant technology space. How do you know which new technology is a solid investment — or even when it’s worth upgrading your existing tools and systems? CIO Review identified five E’s that can help you sift through the clutter. Asking yourself these questions can help you narrow down your options. First, is it easy to use? If it’s not, your team won’t use it and it may even motivate their decision to leave. Next, is it effective in tackling intended challenges — enough so that it makes the investment worthwhile? Third, is the technology efficient? It should either automate or reduce the steps you must take to complete a task, not create new ones. Fourth, is it engaging to use? In addition to being intuitive to use, the interface should provide feedback and visual cues to guide someone through a task. Finally, how tolerant of errors is the technology? Can you easily undo a task initiated by accident? It should have controls in place to minimize the impact of user errors and above all, safeguard your data.or you? Remember the five E’s
At a time when restaurant businesses are feeling pressure to identify new revenue streams, the CIO of Mattson, a food and beverage innovation firm based in Silicon Valley, says many operators are missing out on a potentially lucrative opportunity: meal kits. Barb Stuckey of Mattson told Restaurant Dive that she has long been urging operators to take a look at offering the kits to at least determine if they make sense financially or operationally, but few are following through, save for perhaps Chick fil-A. The brand tested meal kits to positive results last year, according to Forbes, though they haven’t announced future plans for them. Stuckey likes the kits because she thinks they can help operators attack some of the quality-control issues they may experience with delivery. For instance, kits may be worth a shot if you have menu items that could do well off-premise but may not travel as well when they are fully cooked (like fries and sandwiches). Or, if you have brisk lunchtime traffic, promoting the kits during lunch may help you sell to guests who want to sort out their dinner plan in advance. At least, the category could help restaurants tap into a less saturated segment that is ripe for reinvention. According to Packaged Facts said, meal kit market expansion in the future is likely to rely more on alternative purchasing venues than on the traditional subscription model, which can clash with the on-demand mentality of off-premise customers. Restaurants can provide that on-demand experience.
A study by IHL Services, Inc. found that 96 percent of consumers between the ages of 18 and 39 like to use kiosks for ordering food. Restaurant operators who consider kiosks to be the domain of large chains might keep an eye on Tapit, an emerging player that offers a customizable kiosk platform called SELFIT that is aimed at individual restaurants on up to small- to medium-size chains. The platform, which was on display at the recent National Restaurant Association Show, aims to help restaurants customize menus and integrate promotions, lifting check totals in the process. The company’s technology is currently used in the Israeli sandwich chain New Deli, where the head of operations credited the kiosks for boosting individual sales by 30 percent and branch sales by 13 percent. National Restaurant News reports that Tapit’s kiosk platform will have its first U.S. rollout at Duchess Restaurants in Connecticut.
Restaurant operators know it’s important to offer off-premise dining. But what isn’t always clear is how to get your restaurant to the front of the pack. At the recent National Restaurant Association Marketing Executive Group’s annual conference, representatives from such brands as Kitchen United, Technomic, Le Pain Quotidien and Dunkin’ gathered to share their insights about how operators can stand out among the competition in the delivery space. First, put yourself in your delivery drivers’ shoes — or better yet, drive around with them for a shift to observe their experience with other restaurants. Note which brands make it easiest (or even most pleasant) for drivers to collect orders, whether that be via providing separate parking spaces, pick-up windows or shelves, or offering reliably friendly treatment from your staff or a free soda to go. Then note what sort of service those best-performing restaurants get in return (e.g. having their orders picked up fastest or delivered first). That said, make sure you label orders with a stamp detailing the time the order was complete and ready to go — if food arrives late, it can help you and the customer understand who is responsible. Next, offer ordering incentives that will help lift check totals without too much effort on the customer’s part. Offer a free appetizer for a customer ordering food for $25 or more, for example. Finally, pay attention to the factors that boost your delivery numbers. Is there rain in the forecast? At Dunkin’, that means sending out a marketing offer to local customers or posting a promotion on Facebook to help bolster delivery orders.
If your restaurant shows games or other live events on television, you are likely aware of Tunity, a company that makes it possible for people in fitness centers, sports bars, hotels and other venues to use their smartphone to listen to audio from muted televisions showing live events. The company was onsite at the National Restaurant Association Show to promote its testing of a new feature that may help restaurants target guests with special offers based on their viewing preferences. So, as Nation’s Restaurant News reports, if one of your guests is an L.A. Lakers fan, Tunity’s app can help you send a push notification to entice the person to watch the Lakers’ next game with you — and get a free beer or other offer in exchange.
Last year, restaurant catering grew 50 percent faster than the industry as a whole, according to research from Technomic and ezCater. At a time when restaurants are scrambling to meet consumer demand for off-premise dining despite the challenge of making delivery profitable, focusing on catering can be a wise business move for foodservice operations. (If you need a rule of thumb for catering profitability, Sandy Korem of The Festive Kitchen in Dallas aims for 67 percent profit from catering and prices food at three times its cost and beverages for twice their cost.) As grocery stores and other businesses eat into the off-premise dining market for individual meals, catering can help you set your business apart. If you haven’t given significant thought or investment to your catering business, you’re not alone: The research cited above found that even though 90 percent of restaurant operators believe catering is somewhat or very important to business, only 28 percent have made a strategic investment in it. Restaurant Nuts offered some tips from operators who have made catering pay off. First, develop a catering-friendly menu that comprises your greatest hits (not new recipes) that travel well or can be started at the restaurant, then easily completed onsite. Make pricing easy for customers by creating sample menus of entrées and appetizers at different price points, and when discussing options with a customer, have an idea of what different prices per head will provide. Make sure you have temperature-stable containers, along with other equipment that holds your food at the proper temperature while in transit. Start with small, manageably spaced events and then expand from there so you can build a reputation for reliability and quality — low prices tend to be less of a priority for catering customers. Finally, make sure you offer a catering-specific loyalty program to entice people to invite you back.
As you contemplate ways to boost your restaurant’s bottom line, don’t forget about small changes you can make to your equipment that can generate significant savings in the long term. For example, is there room to reduce your restaurant’s water and power consumption? As QSR Magazine reports, the U.S. Energy Star program can help you identify energy-efficient equipment ranging from small ice machines and coffee markers to large commercial ovens. Or start with even smaller changes. Swap out incandescent light bulbs for LED or CFL bulbs, or update pre-rinse spray valves or use low-pressure sinks and dishwashers to reduce the wastewater your facility generates.
Even small commodity fluctuations can have a substantial impact on restaurants. Take Chipotle, one among thousands of restaurant brands where guests expect to find avocados. Aaron Allen & Associates reported that in 2017, surging demand for avocados, paired with smaller crops in Mexico and California, had analysts predicting that every 10-percentage-point increase in avocado prices would lower Chipotle’s earnings-per-share by 30 cents on an annual basis. And that was for just one ingredient. Developing a plan to track global shortages and surpluses can help you avoid similar scenarios. Restaurant Nuts recommends several strategies: When you plan promotions to bring people in, make sure the items you promote are those whose ingredients are more widely available and profitable. During periods when producer costs are stable, anticipate times when they may fluctuate and build in incremental price increases early so you can maximize your profitability and avoid shocking guests with price surges. Cost out your menu. Add items that don’t use volatile commodities, and for popular but less profitable items, identify areas where you can easily make substitutions. Mine your data so you understand your most popular menu items and pairings, then design your menu and promotions so you direct guests to those items. Securing long-term contracts with suppliers can help you weather potential market fluctuations. Where this isn’t possible, you can always tell your guests about the challenge (without overusing this tactic). If a major hurricane wipes out a crop of an important ingredient you feature on your menu, for instance, guests are likely to understand if you’re transparent about why that ingredient is temporarily unavailable — and what appealing item you’re offering in its place.
In the first quarter of this year, 46 percent of consumers who ordered Uber Eats in the U.S. also ordered from one of its competitors, according to the data research firm Second Measure. That’s despite these companies offering incentives to keep customers coming back. As a result, Vox reports, third-party delivery companies are currently engaged in a price race to the bottom. But before long, these companies won’t be able to continue their streak of losses and will need to charge higher prices. Their relationships with partner restaurants and customers will be all the more critical. As vendors risk getting weeded out, restaurants may wield some leverage.
New research from the National Restaurant Association found that delivery, drive-thru and takeout food are on track to comprise 63 percent of restaurant sales this year – and many industry insiders see off-premise sales as the industry’s key growth engine. Recent consumer data demonstrates the potential. For example, Foodable reports that more than 80 percent of consumers younger than 35 are using on-demand food ordering apps about twice a week, and Food On Demand reports that delivery sales are 75 percent higher than in-store sales. At the same time, a declining percentage of consumers want to talk to others when visiting a restaurant, according to a recent study from Harvard Business Review. Clearly consumers still crave a restaurant experience but the best way to engage those people may no longer be via an in-person conversation. Harnessing technology to drive off-premise sales is key to tapping into the off-premise opportunity. Do you have a technology blueprint for driving off-premises sales? As of this writing, we were a few weeks away from the 5th annual Takeout, Delivery & Catering Symposium, which will gather industry leaders to forecast what’s ahead for off-premise sales, as well as how operators can use customer analytics to drive sales and engagement, and how technology can make a restaurant operation more efficient. Stay tuned for details from the event in the coming weeks.
As Beyond Meat and the Impossible Burger compete for market share and fast-casual and quick-service brands scramble to bring meat substitutes to their menus, don’t forget some other plant-based meat alternatives that may suit your menu well. In a recent Upserve survey of 9,000 restaurant operators, jackfruit had climbed 52 percent on menus in the past year. Unripe jackfruit has a taste and texture that mimic meat and can work well as a pork or chicken substitute. It is also nutrient-rich, containing calcium, iron and potassium, and because it is a natural plant-based protein, it may appeal to guests looking to consume more whole foods.
The popular guidance on offering restaurant delivery can sound a bit counterintuitive: Find a way to make delivery work, despite the economic challenges it can create, or lose relevance with consumers. A new report in the Washington Post emphasized that point, indicating that the most recent industry earnings calls demonstrated the dramatic impact (positive and negative) of digital ordering and delivery on restaurants. Domino’s, for one, indicated that despite strong sales growth, it felt pressured by the “aggressive marketing of third-party aggregators.” Delivery is also having a big effect on Chipotle, which saw digital sales skyrocket more than 100 percent from the same period last year following a delivery promotion. The demand for digital ordering and delivery is clear. But as third-party delivery companies vie for business with enticing offers, how can you make delivery work for you financially? Consider raising your prices. If recent operator experiences are any indication, the extra cost won’t deter customers who value convenience. A report in Restaurant Business said when Habit Burger launched delivery last year, it increased the cost of delivery orders by 25 percent. Initially, third-party delivery companies were against this move, fearing pushback from consumers. But that has not occurred and delivery companies have softened to the idea. As you flex your business to accommodate more delivery orders, you may be surprised at consumer flexibility on price.
If you’re currently adjusting your approach to managing labor challenges, repetitive kitchen tasks or the overall experience you provide guests, a number of tech companies are working on solutions to help. At the recent food robotics summit ArticulATE, leaders of these companies sounded off on what’s in the pipeline, and as SmartBrief reports, a key theme of discussion was finding ways for technology to blend seamlessly with human employees and guests, while freeing up employees for more creative tasks. The formula isn’t the same for every restaurant. While there is technology available that can automate burger flipping and fryer operation (Miso Robotics), baking bread (Wilkinson Baking Company, among others), serving guests (Bear Robotics) and delivering food, finding the right kind of automation for your business is about understanding what is best for developing your employees and serving guests. As the CEO of Creator, the restaurant in San Francisco that uses robots to make the perfect burger but has not automated the taking of orders, said: “Our goal is not to be the world’s most automated restaurant, our goal is not to have as few people as possible -- the goal is to have the best experience possible.”
Is your delivery menu a mirror image of your dine-in menu? Chances are it shouldn’t be. That’s the verdict of a recent Restaurant Business report about how to maximize the benefits of offering off-premise food options. You need to consider how well your food and beverages travel, how many pages of options people are likely to tolerate scrolling through on their phones, and how efficiently your kitchen can manage the preparation of various items during peak periods. To make your restaurant more guest-friendly when it comes to delivery, as well as more profitable for you at a time when delivery often squeezes restaurant margins, consider how you can scale down your menu. The Restaurant Business report cited an example of one restaurant that placed its entire menu online, requiring viewers to click through six screens, and another that winnowed its menu down to six items on one page. (The latter restaurant generated an average of 10 times more sales than the first.) It also pays to know your highest-margin items and find ways to feature them more prominently on your menu and boost their appeal. Customers might view beverages, for example, as items that are easy to skip in favor of alternatives available at home or elsewhere. But if you create specialty or seasonal beverages served in containers that travel well and come in sizes that can serve a family or group, you can make them a more compelling sell. Finally, ease the pressure on your kitchen at peak times. Operators are experimenting with a range of options to do that, from reserving front- and back-of-house space for delivery orders, focusing the delivery menu on foods that require less effort and time to prepare, and taking delivery out of the restaurant altogether and using ghost or commissary kitchens to prepare and farm out orders.
Your sustainability efforts could soon be visible front and center for people considering your restaurant for their next meal. Yelp just unveiled its Green Practices Initiative in an effort to help consumers understand how restaurants approach sustainability. Yelp reviewers will now be asked if in their experience a restaurant uses plastic bags, utensils or straws, compostable takeout containers, and whether or not the restaurant offers a discount to guests who bring their own beverage containers. The results won’t be visible immediately but will gradually build a trove of data that will eventually be included in Yelp’s restaurant reviews.
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