The ghost kitchen segment has plenty of room to grow, with less than 5 percent of restaurants adding delivery from ghost kitchens as an option during the pandemic. These kitchens also boast a range of potential benefits, ranging from improved scalability to decreased overhead costs. After a year in which restaurant operators have been forced to pivot on a daily basis in order to survive, ghost kitchens have become the poster children of flexibility, allowing operators to churn out a rotating range of menu options – often items rarely seen together on a menu – in response to consumer whims. Operators are also uncovering new and often cost-effective places to open ghost kitchens, from college campuses to hotels to really any centrally located space that has a professional kitchen. But just as the pandemic has required the restaurant industry to be flexible in its accommodation of off-premise orders, coming out of the pandemic may require a different kind of flexibility. As this Grub Street report explains, a lot of the magic of eating in restaurants (and the improved quality of the food experienced on-site) just can’t be replicated by the ghosts. While consumers crave convenience, they also appreciate a special experience – communing with others and trying foods they wouldn’t have otherwise considered, which is generally more likely to occur onsite. That may be especially true as people look to make up for lost time after a year spent close to home and away from gatherings (according to a new report from Paytronix and PYMNTS, more than two-thirds of the restaurant food ordered last year was eaten at home). So going forward, whether you’re considering new real estate, kitchen equipment or ingredients, look for flexibility: As you shift your operations to support off-premise sales, consider the potential that you might want to shift back.
Some aspects of restaurant dining have seemed to become ancient history in the pandemic era. Case in point: It’s hard to imagine when the salad bar or buffet line will make a widespread comeback. But the equipment that made those kinds of services possible remains. So, like so many other areas of restaurant service right now, it’s time to reinvent it. Campbell’s has done just that by updating its self-service soup stations: In the current environment, they suggest placing a warming plate over soup wells and then lining up pre-packaged containers of soup for customers to collect, or (as a space-saving solution that also accommodates longer hold times) using a multi-tiered warming cabinet that can also be placed over existing soup wells and holds containers of soup to-go in various sizes. Both options enable easy soup collection by customers. They also allow easy replenishment of product from the back of the house – either by filling the cabinet with additional pre-poured containers of soup stored in a larger enclosed warming cabinet in the back, or by pouring more servings as needed from tureens behind the counter and adding them to the containers awaiting collection by customers. These new solutions from Campbell’s weave in some other benefits related to food safety, waste management and customer satisfaction too. Each soup container can be sealed with a sticker to boost customer confidence in the security of the soup they are about to consume. Further, the containers allow for precise pouring of soup in various sizes to help prevent accidental overpouring. Finally, serving from pre-portioned containers allows you to offer size options beyond the traditional two. Selling a few size options not only appeals to customers, but it can also help you craft new combo promotions to elevate check totals. Check out Foodservice CEO to find out about all the Cambpell’s self serve solutions at https://www.foodserviceceo.com/self-serve-solutions.html
Throughout the past year, takeout and delivery have occupied a larger part of many consumers’ lives than they did before. Even as we emerge from the pandemic and people return to restaurant dining rooms, expect your customers’ off-premise food habits to persist. According to the National Restaurant Association’s 2021 State of the Industry Report, 68 percent of consumers say they are more likely to purchase takeout from a restaurant than before and 53 percent say takeout and delivery have become essential to the way they live. How authentically do your restaurant’s values translate to an off-premise experience? If your business prides itself on treating customers like family and remembering their favorite dishes, are you including a personal note in their to-go bag and using tech to track their orders and feed that data into your loyalty program? If your brand is focused on protecting the environment, are you providing recyclable, compostable or reusable packaging? As restaurants have transitioned to greater tech adoption in the past year, some operators may feel they are losing the personal touch – or the more experiential brand elements that once helped consumers connect with them. But that doesn’t have to be true. While you may be losing face-to-face connections with your customers, you can lean on supporting elements of your brand – like your business background story, staff personalities, service mindset, behind-the-scenes anecdotes, food selection and packaging – and rethink how you communicate them. If a delivery driver dropped off a bag of food from your restaurant to someone who had never visited your restaurant before, what would the person’s impressions of your business be?
No doubt, the past year has been more difficult for restaurants than we care to think about. But the turning of foodservice on its head hasn’t been completely bad. In fact, it has opened some doors – particularly for nimble, entrepreneurial operators who have a knack for posting enticing food photos on social media and the ability to use tech to set up ordering and delivery. As the New York Times reported recently, there has been an explosion of inventive take-out food concepts on Instagram lately as foodservice operators have begun promoting small, rotating, deliverable menus on the platform – and with success. Some of these concepts are based on ideas that chefs have dreamed of trying for some time, but others are simply a temporary means of keeping money flowing in to pay employees, cover rent and essentially stay in business in some form until the pandemic winds down. Some chefs are even working out of simple home kitchens. Whether you’re in the position to try pop-up concepts like this or not, they are evidence of the newly stripped-down list of resources a restaurant truly needs to function, which are important to remember for the long term. Operating a restaurant is no longer about real estate but about being able to reach your customers where they are – and using the range of tools at your disposal to help. First, focus on making it easy and fast for customers to order from you online. Think about how you can profitably get food to customers – whether by aligning with a third-party vendor, offering a scheduled weekly drop-off of food (ready to eat right away or freeze), or even just making curbside pickup more appealing. Mix up your menu and promote the changes online – when you rotate new items through on a regular basis, you give your customers a reason to look for your updates each week and you naturally create new reasons to post those updates on your social media, website and email newsletter. Finally, take food photos that sing. You can do this on your mobile phone – just opt for warm, natural light, use a reflector or simply a light piece of paper to soften shadows, use color and contrast to make the food pop in the image, and add some simple decorative (or brand-specific) elements to elevate viewers’ perceived experience of eating your food.
Of all restaurant segments, fine-dining restaurants have arguably met with the most challenges in the past year as many of their hallmarks – from a sole focus on in-dining-room service, to higher-touch interaction with staff – became safety hazards practically overnight. But like much of the restaurant industry, there are disruptors within it who are transforming the experience of fine dining for the current times. One new concept, dubbed The Finishing Gourmet, aims to replicate the experience of fine dining in a home-based setting. Restaurant Hospitality reports that a former Four Seasons executive chef is part of the team that conceived the business, which includes the in-house delivery and upscale presentation of high-end foods that are ready (or very nearly ready) to be eaten, along with such additions as complimentary steak knives and even a chef’s torch to add the finishing touches to a crème brulée. The foods are intended to be delivered contactless and, unlike a meal kit, may require just a few minutes of cooking by a home chef (to sear a steak, for example). If your business once relied on in-dining-room service and prided itself on its human touch, how can you offer those benefits to people at home? Taking cues from catering businesses and meal-kit companies may help you identify new hybrid approaches to recreating the experience of dining in your restaurant – or delivering something close to it.
Like constant change? Probably not. Even for those who are more comfortable with change, the past year has likely forced too much of it. But what if you could adjust your mindset and your business so that you could better weather, anticipate and (perhaps) even welcome change? A September TD Bank survey of 250 restaurant operators around the U.S. aimed to take the pulse of the industry and find out what strategies have worked for restaurants that have managed to succeed in such a tumultuous year. Three key findings emerged: Off-premise sales are critical and restaurants need to be able to accommodate them (particularly via such consumer conveniences as mobile ordering and delivery). Payment methods including mobile, online and contactless are helping restaurants encourage consumer confidence. Finally, many of the traditional physical characteristics of restaurants are changing to accommodate drive-thrus and pick-up areas, shift to ghost-kitchen formats and decrease overall footprints. So how can this information help restaurants set themselves in a more powerful, less reactionary position for the future? First, scrutinize your off-premise menu and sales to ensure they are practical and profitable. Then adjust. Get comfortable trying new ideas regularly – it will not only help you see what works and what doesn’t, but it will also give you something new to promote to customers. Next, evaluate your payment methods: Do they help you limit face-to-face interactions with customers and also enable you to expedite payment and get a faster, clearer picture of your sales? Finally, take advantage of this time of disruption. Look for new partners and investors, and talk to bankers, landlords and suppliers to identify opportunities to secure more beneficial arrangements.
The pandemic has put restaurant packaging under a magnifying glass. That will only increase this winter, with fewer (if any) dine-in guests in your restaurant. Your packaging is what ensures the experience of eating your food is as good at a distance as it is in your dining room. Is yours up to the task? The materials you’re using – as well as your to-go menu – should be adjusting to the times. If items your restaurant is known for don’t travel well – like burgers and fries – make new packaging a priority. While the pandemic has posed seemingly endless challenges for the restaurant industry, it has also sparked innovation – including the development of new packaging options (along with new uses for existing packaging, like paella being delivered in pizza boxes). Eco-friendly options are on the rise right now – and will likely again be more of a consumer demand as we emerge from the pandemic, which has caused many restaurants to return to plastic and Styrofoam packaging for the short term. If you’re making packaging changes right now, consider packaging made from biodegradable materials or easily renewable sources like bamboo, as this report from Stylus explains. As the distribution of the vaccine makes life feel safer, you may also be able to return to reusable containers that guests can return and refill. A recent McKinsey report said post-pandemic, packaging companies will need to think about three requirements going forward: sustainability, hygiene and effective direct-to-consumer design. Restaurants should have a growing number of packaging options available to help them perfect the off-premise experience.
The winter weather will mean customers will be more apt to lean on restaurant delivery – and third-party delivery apps – to get the food they crave. But as a recent New York Times article reported, “restaurants have quickly found that the apps, with their high fees and strong-arm tactics, may be a temporary lifeline, but not a savior.” That’s especially true when an app can charge fees surpassing 30 percent per order and take customer data along with them. In 2021, how can you set yourself up to encourage your customers to come to you directly when they want to order from your restaurant? If you can’t divert waitstaff to delivery duty, use a third-party provider as a courier service only (which typically involves paying a payment processing fee and delivery fee but not losing any customer data), or make it more appealing for guests to collect their orders. In every bag to be collected by a third-party vendor, include a coupon good for a pickup discount – along with an explanation about how third-party fees are impacting restaurants right now. Offer rotating specials that are only available through orders placed via your website. Finally, use your social media and website to directly urge customers to come to you. Reinforce how much they will save on fees by simply collecting an order from you or (if possible) having you deliver it to them directly. Explain the difference side by side and tell them how much money your business makes or loses depending on how an order is placed – sometimes a consumer’s decision to use an app is not a conscious one and the person just needs to be reminded of how you’re feeling the difference. Your customers have surely seen some of their favorite restaurants close in recent months – and they want to see you survive and thrive. Tell them how to place orders that can best support you right now.
Your take-away menu is carrying a lot of weight these days. It needs to offer a sufficient range of items to satisfy guests (though not so many that you overwhelm them with choices or generate waste). It must communicate the experience of eating these items (but without too many words). And it must accomplish this all without the person ever having to walk through your doors to experience your brand. Chances are we’ll be looking at another several months of dining room restrictions and being limited to take-away and delivery – particular during the winter months, when it can be hard to get people to come out even in normal years. So give your menu a reality check now. Aside from organizing items by category, ensuring everything travels well, explaining options with a handful of carefully chosen words that help communicate the texture, freshness and aroma of an item, and including appealing photos, try to add some intrigue. Beyond your popular standbys, think about what regular tweaks you can make that will entice people to come back and see what creative menu items – or even new categories – you are offering. New research from Postmates, for example, found that sales of family meals had climbed 175 percent and alcohol sales 49 percent over last year. Special occasions have resulted in food and beverage spikes too: National Ice Cream Day in July led to a 118 percent increase in ice cream sales, and Election Day resulted in sharp increases of orders of pizza, alcohol, cupcakes and ice cream. Clearly this is a year when people crave comfort. What kind of comfort can you cook up for upcoming occasions this winter?
The math on third-party delivery has long been problematic. Operators have felt the need to offer it at the expense of profits just because of increasing consumer demand. But now that restrictions on dining rooms have made delivery more of a necessity than a nice-to-have extra, many operators are thinking even more critically about how to make it work. Common approaches include raising prices on menu items to help compensate for high third-party fees, finding a way to offer delivery in-house, or enticing guests to order via your online platform and then paying a third-party vendor a reduced fee for delivery (but retaining the valuable customer data). If delivering food yourself isn’t feasible, committing to making the third option work may be your best long-term bet for making ends meet and serving customers well. This Restaurant Business report ( https://bit.ly/3pqATav ) discusses how delivery may be evolving and how to drive people to your platform.
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