New year, new restaurant?
Though last year may have been tough for restaurants, Zagat reports many hotly anticipated openings this year. If you’re planning one, RestaurantOwner.com’s poll of 700 owners may help put costs in perspective. The survey found that on average, owners spend $500,000 in start-up costs when not purchasing land, about $4,200 per seat without a land purchase, and overspend from initial estimates by about 33 percent. To curtail spending, Toast recommends you seek out second-hand equipment, comparison shop and forgo items not absolutely needed at first. Be realistic about staffing costs for recruiting, training, wages, meal comps and time off. You’ll also need to spend on marketing, which may include advertising online or via other media, offering promotional discounts, buying a domain name and hiring a pro to optimize the site or launch an app. What about technology? While tech investments may seem excessive early on, they may also help you manage finances, inventory and guest relations better from the start.
Build business in 2017
Restaurant traffic is expected to be stagnant this year but there’s still plenty you can do to draw a bigger share of those dining out. NPD analyst Bonnie Riggs recommends you boost innovation with a menu and overall experience that feels relevant to guests. Play to consumers’ desire for restaurant food whenever and wherever they like it by offering delivery via whatever means you can make it effective and affordable (just keep consumer costs to $5 or less, Riggs says). Taking that a step further, find ways to allow guests to customize their choices – digital menus and touchscreens, as well as mobile ordering, can help with that. Finally, attract less-frequent guests with the opportunity for rewards – expanding your loyalty program to entice all kinds of users can increase traffic.
It’s time to clean up. For many operators, eliminating chemicals has become more important than counting calories, Food & the Menu reports. That means having an ingredient list that looks like what you’d have in your home kitchen pantry and includes items produced sustainably and without antibiotics – think transparent and authentic. Last year, Panera became the first national restaurant company to assemble a “No No List” of ingredients it was removing from its menu, including artificial colors, flavors, sweeteners and preservatives. It undertook an effort to review 450 ingredients and several levels of its supply chain to identify additives, reformulate 122 ingredients and partner with more than 300 food vendors to replace ingredients and recast recipes. This month, the chain announced its menu was now “100 percent clean.”
Plenty of fish in the sea
According to last week’s Global Seafood Market Conference in San Francisco, there are lots of opportunities in seafood right now. Seafood Source reports that overall, industry analysts at the event said foodservice operators have a great opportunity to entice Millennials with fish, since they value seafood’s health benefits, notice its sourcing and acknowledge that it’s something they may not like to (or know how to) prepare at home. Specific to fish varieties themselves, salmon is expected to continue its rise this year, with a rebound in farmed supply stabilizing or even lowering prices later in the year. Barramundi is also looking good – consider adding it to your menu as a premium option. It happens to be Oprah Winfrey’s favorite, but that’s not all – one chef said it’s a great-tasting fish that freezes well and, because it is a saltwater-raised farmed fish, it often tastes better.
Salads are here to stay
Green salad consumption is growing – as appetizers and entrées, at home and away from home. That’s according to Datassential’s new MenuTrends Keynote Report. That has helped salad-centric concepts grow and premium salad offerings at other restaurants to get attention. What’s helping is the broadening array of ingredients on offer. Far from just greens and raw vegetables, salads are including items like roasted Brussels sprouts and curried cauliflower with increased frequency. Smartbrief reports that Chicago’s Roots Pizza, for example, says its salads “ain’t rabbit food.” Indeed, with 50 ingredients including grilled gyro sausage and pickled fennel, there’s a lot the chain is doing to make salads exciting.
Want to embrace global flavors on your menu? Take a look at the street food scene in your city. Datassential’s Creative Concepts report says street food is finally getting street cred: It found that of the 500 consumers asked about street food, 36 percent love the idea and have visited, and 63 percent would visit if given the opportunity. Make it accessible to your guests by including descriptive language on your menu to encourage guests to try unique items. Make those items (as well as your marketing, signage and décor) as authentic as possible so the experience transports guests to a different place. Offer samples of drinks or dishes that might be a tougher sell, and consider combining two kinds of complementary street food to help you create your own new twist.
Stop a food contamination crisis short
Having a food contamination crisis plan can take some stress out of your business, particularly if you produce food yourself or work closely with local suppliers – a common occurrence in today’s farm-to-table food culture. Food Safety magazine suggests you consider taking these steps to protect yourself: First, acknowledge the risks – one food contamination or adulteration claim is made to the FDA daily and the Food Safety Modernization Act will likely increase that number. Establish a team who can respond quickly and thoughtfully in a food contamination crisis. They should develop a written plan ahead of any crisis that outlines how to handle various scenarios if they occur, such as how and what to communicate in a worst-case scenario, and what procedures can be implemented immediately to prepare for that outcome. Finally, test your plan once a year at a minimum and consider hypothetical scenarios and potential responses.
Where germs lurk in your restaurant
You’re trying to crack down on contamination in your restaurant. Where should you focus your energy first? In Restaurant News, the University of Arizona microbiologist Charles Gerba pointed out the places in a restaurant that harbour the most germs: First, clean that table – he says the sponges or cloths restaurants use typically aren’t soaked long enough in disinfectant to be effective, allowing germs to move from table to table. Silverware is a likely target too, since it picks up bacteria when placed on dirty tables – it’s always best to provide a fresh set when guests arrive and place it on a napkin. Plastic menus and child seats should be wiped down with disinfectant but often aren’t. Lastly, the rind of a lemon is often contaminated, so be aware of how lemons are cleaned and stored for use in drinks and other items.
Tech investment is big in 2017
Last year wasn’t a stellar one for restaurant sales, so what are operators doing to change that? Jonathan Maze of Nation’s Restaurant News says many are making substantial investments in technology. He says at the recent ICR Conference in Orlando, executives spoke about investing in online and mobile ordering and using technology to connect with consumers overall. But by far the biggest technology dollars seem to be going into delivery. Executives from a number of quick-service, fast-casual and polished-casual chains discussed plans to test delivery this year, some through third parties and others by running delivery themselves.
Are you PCI compliant?
If you accept credit cards at your restaurant, you must be PCI compliant – Toast reports that as of January 31, Visa is requiring all businesses (regardless of size) to validate their compliance unless they qualify for an exemption. These are the six categories of PCI compliance: maintaining a secure network, protecting cardholder data, protecting systems against malware, establishing strong access control measures, monitoring and testing your networks, and creating an information security policy. To achieve compliance and maintain it, it’s important that you know the policies and train your employees in order to protect your business and guests from data breaches.
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