Testing delivery? Remember your leverage
Offering food delivery has become a must, thanks to rising consumer demand and a growing number of third-party companies offering restaurants a variety of delivery options. While the industry experiences growing pains as it adapts to these changes (a recent New Yorker article detailed how many operators that offer delivery claim they are seeing shrinking profit margins as a result of the shift), there is also ample room for restaurants to shop around for a model that helps them build business. For instance, Skift Table reports that the restaurant El Pollo Loco recently expanded its partnership with DoorDash, with one caveat: While it uses DoorDash to provide its delivery service, El Pollo Loco still receives and processes all customer orders through its own website and app, which allows it to retain customer relationship data instead of relinquishing that information to DoorDash. Other companies are trying test runs with a number of partners to find the best options. Remember that as more restaurants sign on with third-party delivery partners, those companies will benefit from economies of scale. While fees from delivery services can amount to 20 to 40 percent of a sale, there is more room for restaurants to negotiate those fees downward as other restaurants sign on. GrubHub CEO Matt Maloney told the Wall Street Journal recently that “scale drives efficiency.” As third-party delivery companies grow, they will have greater flexibility to minimize their restaurant partners’ costs.
Smart, simple social media
If social media hasn’t become central to your marketing strategy yet, it will soon need to be. About 90 percent of consumers aged 18 to 29 use social media and one-third of them say it is among their preferred channels for communicating with businesses, according to research from Business 2 Community. To strengthen your social media strategy, Social Media Today suggests you create an audience persona. Think of your ideal guest: Is the person male or female? How old is he? What kind of work does he do? How much education does he have? What are his hobbies and interests? Where is he most active on social media? Develop content that speaks to this person and post it where he is likely to be looking for it. Second, specify your top goals. For many, those goals are to build brand awareness, increase website traffic and generate new leads. Align each of those goals with specific metrics that can help you track progress. Finally, if you need help simplifying social media campaign development, consider using blog aggregator tools (Feedly, for one, can aggregate all of your blog feeds in one place and let you select content to share with your followers), automation tools like Hootsuite or Buffer, which can schedule your posts to go out at specific times and then analyze your results, and social following tools like ManageFlitter or FollowerWonk, which can help you identify and follow the consumers in your target audience.
Do you have an Open Kitchen?
If your guests value transparency when it comes to the food you prepare, they likely value it when it comes to your business environment as well. If your restaurant is among the 45,000 that use OpenTable to manage reservations, consider becoming an “Open Kitchen.” The Washington Post reports that OpenTable launched its Open Kitchen campaign to help restaurants demonstrate to the public that they are safe, equitable places for women, LGBTQ and minorities to work. Restaurants that sign a pledge committing to these values can display a sign from OpenTable that advertises their support of the principles. While signing up is voluntary and the restaurants who do so must police themselves, this may be the first step of more to come from OpenTable. In an industry that often lacks human resources personnel at the restaurant level, OpenTable is stepping out as a potentially unifying force to help develop standards and offer training to operators across the industry. (On April 11, they offered a webinar led by human resources professionals about how to prevent sexual harassment.)
Put it on (clean) ice
As the weather warms up and guests are looking for more options for alfresco dining, take precautions with any food and drink you’re trying to keep chilled outdoors. StateFoodSafety.com advises that when you’re making ice for keeping items cold, make sure you’re using drinking water — and, of course, discard any ice and melted water afterwards.
Make a clean break
Chances are, many of your guests have tried some kind of a cleanse to motivate themselves to adopt a healthier lifestyle. A new report in QSR says a number of restaurants are trying to ride the detox wave by offering items that claim to provide cleansing benefits. Take Brodo Broth Company in New York, which offers broths made from organic vegetables and the bones of grass-fed animals. While the company has not yet exclusively pushed its broths for their detoxifying potential, their customers have identified those benefits themselves. Other operators that offer a juice menu have created special cold-pressed options that are sold as packages to support cleanses for single or multiple days. Does your grab-and-go food and beverage menu have cleansing potential?
A tool to test food transparency
As consumers demand transparency from the restaurants they frequent, a new system on the horizon is aiming to help food purveyors confirm the origins and quality of the food they provide. The Food Marketing Institute and the Center for Food Integrity recently released a white paper entitled “Transparency Roadmap for Food Retailers: Strategies to Build Consumer Trust,” which offers food retailers and suppliers guidance to provide clear background information about the products they offer. The two groups are now working on a transparency index that gives food distributors a tool to help assess and improve their levels of transparency. It covers such areas as the impact of food on health and the environment, food safety, labor and human rights, the treatment of animals raised for food, and business ethics in food production.
Luxurious touches that justify higher menu prices
From rising labor expenses to the cost of investing in technology, restaurant operators are facing pressure from multiple sources to increase the prices of menu items. But as Skift Table reports, a number of operators are incorporating touches of elite ingredients into their menus and, in the process, are making those items into reasonable splurges for guests. Operators are using ingredients ranging from specialty vinegars and olive oils used for marinades to flavored butters that are rarely found in U.S. restaurants. While these ingredients certainly add to a restaurant’s expenses, they’re also not used in vast quantities —and they lend subtle luxury to foods that can make a restaurant special and memorable for guests
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 email@example.com or 888-891-3103 for more information.
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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.