At a time when restaurant finances are getting squeezed from many directions, do you know which budgetary battles are most important to fight? In other words, when you’re managing such expenses as labor, ingredients, rent and third-party delivery, does your balance sheet give you clear answers about how much each of those expenses is impacting your bottom line? It needs to, since your gut instinct may not be correct. Case in point: The results of a recent study by New School Center for New York City Affairs and the National Employment Law Project found that restaurants in New York City were more negatively impacted by rising occupancy costs and the fees charged by third-party delivery services than they were adversely affected by the near-doubling of the minimum wage paid to hourly employees in the past five years, Restaurant Business Online reports. The Fight for $15 wage battles of recent years had many operators concerned they would need to boost menu prices beyond what guests were willing to pay – and minimum wage escalation isn’t an insignificant expense for operators to be sure. But while New York isn’t like every market, the rising minimum wage in the city has had a smaller-than-expected impact in a diversity of regions, whether in Manhattan, Queens, Brooklyn or the Bronx. As the minimum wage has been ascending in geographical regions across the country for years, you may be able to protect your bottom line by focusing on negotiating more favorable terms with a third-party delivery company, adjusting your business model so you can occupy a smaller or different footprint, or getting a stronger handle on hidden back-of-house costs.
You’re likely using your restaurant’s internet connection to process orders, access customer data, monitor the functioning or your kitchen appliances, and communicate with employees, vendors and guests, among many other functions. If your connection suddenly fails, would you be able to operate your business? Using failover technology as a backup connection can help ensure your Internet connection is never interrupted. RocketBroadband is one company that works with restaurants to prevent internet blips. It also offers a mobile connectivity option that may suit restaurants running food trucks or stalls at offsite events where it’s necessary to process payments apart from the restaurant’s usual internet connection.
Are you and your guests in sync when it comes to what matters most about food delivery? According to Toast’s new Restaurant Success Report, guest and restaurant priorities don’t align. (And that lack of alignment is likely to keep a brand from succeeding, according to Hope Neiman, chief marketing officer at the restaurant ordering technology firm Tillster, who spoke to Restaurant Dive.) The Toast research found that among the 1,000-plus consumers surveyed, speed (77 percent) and value (74 percent) are key priorities when it comes to delivery. Those factors were less important to restaurants – 57 percent of the 1,000-plus operators surveyed prioritize speed and 49 percent prioritize value. On the other hand, restaurants value driver tracking (40 percent) and loyalty (22 percent) more than consumers do. Only 10 percent of consumers surveyed value driver tracking and 6 percent value loyalty points from delivery. Granted, offering delivery is already challenging enough for many operators to make worthwhile, but stepping into the shoes of your best delivery customers when structuring your service can at least make sure that the delivery you offer is what they hope for. When you survey customers, ask about their delivery service expectations, likes and dislikes in addition to asking about the food. You may have to take such steps as adjusting your delivery menu to make sure the items you offer are delivering the fastest preparation time for the consumer along with the most worthwhile value for you.
While some believe eating out is about connecting with others over a meal, let’s face it: Many people also value having some face-to-phone time when they go out. If you can ensure guests have a smooth, sustained wifi connection and power supply, guests are likely to remember and return. Powermat is one company that is helping hospitality businesses ranging from coffee shops to hotels provide the incremental technology improvements that can make a difference with guests. Its technology enables wireless charging of electronic devices. (If you’ve ever been in the position of searching in vain for a place to plug in a laptop while on the road, you will appreciate this benefit.) The wireless charging market is an emerging one poised for growth in the next five years, so if you’re looking to accommodate guests’ technology preferences, it’s an offering to consider.
If you operate a restaurant in or near a college town, you’re in a sweet spot: You have access to a large concentration of food-savvy consumers who are looking for their next meal or snack (and are likely not preparing it themselves). If you deliver food, you’re also more likely to be able to maximize your profits by delivering multiple orders in a single trip. But becoming a campus favorite takes some strategy, particularly if you offer higher-end dishes or are otherwise not an ideal match for a student on a budget. To appeal to the convenience- and cost-driven college consumer, Running Restaurants suggests partnering with the college or university on any programs they offer that allow students to use some of their on-campus dining credits at your restaurant. Encourage word about your restaurant to spread on campus by offering promotions in the campus newspaper, taking part in pop-up food events, and hosting happy hours or other social events. Your online presence is important with this demographic, so make sure you offer online ordering and encourage engagement via social media (your social media handle should be visible on all of your marketing materials). Finally, values and transparency count with this community, so if you have a good story to tell about the local produce you offer, or charities you support, or eco-friendly business practices you have long used, talk it up.
If you have ever visited a bakery at the end of the day and scored some steeply discounted bread, you might appreciate an app like Feedback, which helps restaurants with extra meals on hand at the end of the day connect with hungry consumers. Pymts.com reports that the app uses a dynamic pricing model, so a restaurant might charge $10 for a salad at the start of the day but then adjust the discount based on demand throughout the afternoon. While the app is based in Canada and hasn’t yet made it to the U.S., it offers a more universal lesson on how harnessing data about what you’re selling each day can give you tools to help you run business more efficiently, limit waste, and even attract some new customers. The developer behind the app was inspired to pursue the idea when he was presented with the opportunity to buy discounted pizzas at the end of a restaurant shift. How can you use your tech to connect your extra food supply with guests?
Last year, more than 52 percent of all web traffic around the world came from mobile devices, according to Statista. Do your website’s visuals and text come across well regardless of whether a person is visiting your site on a phone, tablet, laptop or desktop computer? As Next Restaurants reports, if you have a traditional fixed website as opposed to a responsive one, your site’s images may be distorted or other content may get cut off altogether when people visit your site on a mobile device. What’s more, Google gives priority to responsive sites. You need one to ensure you’re appearing near the top of web searches. Once you convert your existing site to a responsive one or build a new one, ask an objective source to scroll through your site to ensure your graphics or other visuals don’t make navigation more difficult. Next Restaurants advises you give any important call-to-action items prime position on your homepage — email or loyalty program sign-ups, events or other key promotions should be easily viewable on a mobile device. While you’re at it, make sure your site is optimized for key words and SEO. Thanks to Google, consumers can make very specific searches on the Internet and get accurate results (research from the Hubspot indicates that 50 percent of web searches are four words in length or longer). That means your keywords should reflect that specificity. Instead of keywords as simple as “Italian food,” think “best Italian food in West Village.” For help, The Rail suggests using Google’s AdWords’ Keyword Planner to find popular search terms and to identify words and phrases that your competitors are using.
Banning plastic straws is so last month. Around the country and the world, hospitality brands are taking stock of all single-use plastic in their operations, along with other materials that burden the environment, and searching for technology that offers suitable replacements. If you’re looking for models showing how it can be done, examples abound. Take Live Nation, which hosts more than 35,000 events worldwide annually and recently pledged to eliminate single-use plastics at all of its festivals and venues by 2021. The Spoon reports that in addition to eliminating plastic straws, Live Nation will remove plastic food trays, beer cups, water bottles and toiletry bottles, and plans to test plant-based alternatives where possible. This is part of a larger initiative Live Nation has planned to eliminate its landfill waste by 2030.
Cybersecurity incidents have become so widespread and increasingly sophisticated that it may not be a question of if your business is targeted, but when. Smaller businesses tend to be easier targets than larger ones, but even the biggest players can be caught unawares. (Note the breach that recently impacted Marriott and wasn’t announced until 11 weeks after the fact.) But regardless of the size of your business, there are a number of steps you can take to fortify your operation against cybercriminals. Cybersecurity expert Steve Tcherchian told Restaurant Insider that operators should first manage the devices connecting to their wireless network. Make sure your operating system is up-to-date so you’re less vulnerable to security loopholes, your system is accessible via PIN or password only, your staff isn’t using POS devices to access the Internet, and that you use a firewall to separate parts of the business that have different functions. Train your team to identify phishing emails and to avoid clicking on suspicious attachments. Make sure your staff have access to just the information they need to do their job and nothing more — and that you use online password managers (Dashlane is one) to manage and monitor access to files. Any vendors you hire should have security practices at least as strong as yours, so stay aware of how they store and protect data. Finally, hold your staff accountable by conducting employee background checks (Team Four can help you here) and by issuing each person a unique identifier on your POS, which can help you pinpoint where data breaches and staff shifts overlap.
Plant-based menu items have skyrocketed 800 percent in four years, according to research from the taste and nutrition company Kerry. If you’re not making your menu more plant-based to suit your guests’ tastes, do it to help your bottom line. Severin Nunn, the director of food and beverage at The Omni Homestead Resort in Hot Springs, Va., told FSR Magazine that a restaurant’s food cost for plant-based entrées is about 15 percent compared to 30 percent for meat-based dishes. That differential gives operators more room to shift menu prices while retaining an item’s profitability. To beef up your plant-based offering, so to speak, the FSR report advises you approach these dishes with the same care and creativity you’d apply to meat-based entrées, and weave in nutrient-dense, on-trend protein sources such as quinoa, lentils and spirulina.
Your restaurant’s online presence can have just as much power as its in-person presence — particularly if guests check out your restaurant via your website, social media or online reviews before their first meal with you. To ensure you’re managing your online presence effectively, Restaurant Insider recommends you monitor and measure it like you would any advertising initiative. For example, by controlling your Google listing (companies like Menufy can help you make certain links more prominent), you can steer people in search of takeout food toward the provider that serves you best instead of spreading business across several of them. Second, use your reviews to build business. While a good review is always welcome, your professional and calm response to a bad review can send a positive message about the service you deliver and your dedication to improving upon the experience you provide. Finally, your most loyal patrons (not so much the ones finding fault with a meal) should take priority when it comes to being offered free drinks or other special deals on menu items. Use your online loyalty program to take care of the people who already support you and are much more likely to continue to give you their business. While sometimes it’s necessary to offer a freebie to a guest who has had a bad experience with you, it’s just as important to make sure the person feels you have heard their feedback and are committed to making their next experience with you more positive.
The practice of standing in line or waiting at a table to pay a bill is gradually becoming a relic of the past. As operators and tech companies have observed the valuable time often wasted at these common pressure points for restaurants, new solutions are popping up to hasten table turnaround times and minimize guests’ anxiety in their time spent at a restaurant — and they won’t necessarily require the guest to download an app to do it. Take Qikserve. Skift Table reports that the company is rolling out technology throughout this year to restaurants in California and Pennsylvania — including 3,500 partner brands — that will allow guests to make a mobile payment and eventually order at the table by either using the brand’s app or by visiting a web page loaded by scanning a QR code at the table. It’s aiming to make life easier for the occasional restaurant visitor not interested in downloading another app. (It also has the potential to turn that occasional visitor into a loyal regular.)
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at firstname.lastname@example.org or 888-891-3103 for more information.
About Food For Thought and Profit
Food For Thought And Profit is brought to you by Team Four Foodservice/Value 4. We offer the latest foodservice trends, news, safety, and technological advances in the industry. We are an outsourced purchasing and logistics company that provides comprehensive supply chain solutions to our customers. Our executive team has many years of foodservice experience and we bring that experience to work for you. We have expertise in all areas of the foodservice sector.