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.”
Could 2019 be the year of automation? If John Miller, the CEO of CaliGroup has anything to say about it, it could be. As he told attendees at the recent National Restaurant Association Innovation Summit, “I think that in the next six months, we will deploy robots to customers in ways that will shock people.” CaliGroup may be ahead of the curve (its CaliBurger restaurant launched the burger-making robot Flippy last year) but the technology it has in the works is worth bearing in mind, since it is likely going to have impacts on guest experience, food safety and employees’ perception of restaurant work. For instance, the restaurant is piloting a facial recognition payment system in partnership with NEC Corp. (facial recognition is already in use in the restaurant’s loyalty program). Its kiosks are also being enhanced to provide a one-on-one experience with the customer. While robots are replacing the jobs at hot grills and fryers, Miller said other kitchen jobs are being rebranded — instead of a “grill cook,” kitchen workers are called “chef techs”. He said the change to a tech focus is providing workers with gateways to higher-level jobs. At the same time, it is helping his restaurant manage kitchens more efficiently and protect the safety of food on the production line. The change could, helpfully, shift the more mundane or less safe jobs to technology. But the challenge for restaurants adapting to these changes, according to Darrell West, founding director of the Center for Technology Innovation at the Brookings Institution and author of “The Future of Work,” will be to determine how to retrain employees for more sophisticated jobs in the industry.
Be more businesslike on Instagram
Does your restaurant have a business profile account on Instagram or a personal one? If it’s still a personal account, consider making a switch. You’ll be able to collect better data on how your followers are interacting with your content. A business profile account allows you to track the number of impressions, likes, comments and saves your content gets, as well as monitor the number of different accounts that see and interact with what you post. While some features carry a fee, they are likely to pay off as they make it easier for you to run ad campaigns and for followers to get in touch with you via a “contact” button (instead of having to scan your page for your web address).
Know the right tools to manage food fraud
About 10 percent of the food supply is impacted by food fraud, Food Safety Tech reports. Chances are, many of the foods you serve and use in recipes every day, including coffee, olive oil, orange juice and fish, are among the most vulnerable in the food supply, notes Shield Safety Group. But many food companies aren’t prepared to manage the problem. In a recent Food Safety Tech report, the senior manager of food safety & defense, QRC at the Hershey Company and the manager of food safety & quality assurance at GMA discussed the best tools available to monitor food fraud – consider them when talking with your suppliers about how they are managing and mitigating risks. The USP Food Fraud Database 2.0, for one, contains thousands of fraud records, can be searched by ingredient and offers some automated analytics tools. EMAlert is a predictive model that analyses the vulnerability of ingredients based on weight, which makes it a good platform for sourcing commodities. SSAFE Food Fraud Vulnerability Assessment provides a strong starting point for companies looking to assess their risk by ingredient, product, brand, facility, country or company, and it can be used across the supply chain. The World Factbook of Food contains more than 130 foods and 75 country profiles, which draw from a range of sources to help assess risk. Finally, the Food Adulteration Incidents Registry contains more than 550 incidents of food fraud, providing access to open data records that can support food risk assessments.
Bad reviews? Take the reins
What restaurant operator doesn’t love a great review? A Harvard University study found that an extra star in your online reviews can generate 5 to 9 percent more sales. But in a Foodable report, restaurant coach Donald Burns recommends you consider some facts to keep things in perspective. First off, a whopping 20 percent of reviews are fake, added by unethical businesses that want to improve their ratings, albeit falsely, and take the competition down a peg. (Take heart that sites like Review Skeptic are helping to uncover the fakes, so false reviews may be a declining problem.) Before you take a negative (or even a positive) review to heart, consider whether it’s accurate. If a negative one holds true, use it to improve. Make sure you have established clear standards and core values that your team lives and breathes, and that you’re taking steps every day to train and develop them. Are there trouble spots on your menu? Does your customer service need polish? Remember that your response to a negative review can build or bust your credibility with readers. If a review is negative, apologize without making excuses and, within 24 hours, ask for a chance to win them back. Before posting a response, compose a draft in a different application and ask a trusted person to read it to ensure it comes off professionally. If it doesn’t, you’ll have a bigger problem on your hands when your words are shared around the Internet within minutes of your response.
Protect against poultry risk
If you host young children in your restaurant, pay special attention to food safety: Kids under age four are five times more likely than adults to contract bacterial infections from food, according to the Centers for Disease Control. FightBAC.org recommends you pay close attention to chicken, often a go-to option for children’s menus, though a risky one: A recent report from the CDC linked chicken to 23 foodborne illness outbreaks and said it was the food category responsible for the second-largest number of foodborne illnesses. A single drop of raw poultry juice can contain enough Campylobacter to cause illness. Remember to emphasize proper food handling in your kitchen – handwashing before and after handling poultry, storing it on a low shelf to prevent cross-contamination, thawing it at or below 40˚F instead of washing it (that can spread bacteria around the kitchen), and cooking it to 165˚F to kill harmful bacteria.
Experience the halo effect
You don’t have to have a fat marketing budget to make a big splash on social media. Look at Halo Top ice cream, a small business that now competes with giants in the category, thanks in part to its online marketing strategy. Food Dive reports that the company claims it has never paid for a social media post and only recently began paying for any brand advertising at all. However, the company’s success in producing packaging, photos and other highly shareable content has resulted in the hashtag #HaloTop being used 100,000 times and the company’s account attracting about 400,000 followers. The company sold nearly 17 million pints of its high-protein, low-calorie ice cream last year, boosting sales by 2,500 percent.
More tech, higher sales
Technology is making it increasingly easier for restaurants to upsell consumers. An Associated Press report that assessed the business results of a number of national restaurant brands confirmed that people tend to order more when they order digitally, whether online, on a tablet or via a mobile app. Certainly, a consumer who can readily spend with a credit card instead of cash (which comes with the territory when tech is used for ordering) will spend more anyway – 12 to 18 percent more, according to a Dun & Bradstreet study. However, it also helps that a computer will allow a consumer to browse for a longer amount of time and, while a human taking an order might neglect to promote extra items, a computer will automatically ask a consumer if he wants to add toppings or extras. Ziosk, which makes devices used at Chili’s and Olive Garden, among other brands, says restaurants see more appetizer and dessert orders when using their devices – and there’s usually more coffee tacked on to those orders.
Robots changing the face of restaurant labor
Food industry leaders recently flocked to SXSW for a look at trends on the horizon. One big one, of course, is continued development in automation. According to a Restaurant Business report about SXSW, this included everything from software used to connect restaurants with a pool of qualified workers to fill shifts, to robots that can automate repetitive tasks like dishwashing and burger flipping. The industry also looks to be testing how much human interaction consumers desire. At the event, a robot mounted with a tablet demonstrated the ability to assume the role of server. It allows guests to ask questions and order, delivers meals and accepts payment. While far from being a mainstream addition to restaurants in the short term, these robots (along with a wide range of software applications) are likely to change the management of restaurant tasks in the years ahead as developers find ways to make them affordable.
Get the most from your host
If your restaurant is known for its human touch, have you unleashed the full power of your host? The first person your guests meet at your restaurant can help you set the tone for your brand, promote specials and recruit new members to your loyalty program, Foodable reports. (Perhaps that’s one reason why even low-touch restaurants like Eatsa have a host at the door.) Looking to entice guests with your seafood special? If your host can enthusiastically talk about his experience tasting your food, he can plant a seed of interest that can steer a guest’s attention toward specific items when he opens the menu. A host can also help ensure each guest walking in is a happy guest. Extra long wait? Consider having the host offer those guests a complimentary drink. Having your host check in on tables can help boost your loyalty program too. If he asks how a table is doing and everyone loves their meal, he can ask them to sign up for your loyalty program and perhaps sweeten the deal with a free dessert or other promotion.
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