Intouch Insight’s newly released 23rd Annual Drive-Thru Study tracked the performance of key brands in the quick-service space – and some of the lessons are worth considering in other restaurant categories as well. For instance, suggestive selling was again found to be a useful means for restaurants to direct guests’ attention to special offers and boost check totals. While it tends to add time to transactions, it doesn’t do so evenly: In the drive-thru setting, it added an average of 10 seconds to service time, but when the suggestive sell occurred after the order was placed (versus during the initial greeting) the orders took 28 seconds less to complete. Restaurant brands that are less focused on shaving seconds off the order completion process can still reap benefits from consistent suggestive selling – but surprisingly few brands follow through with it. (In the study, only 56 percent of the measured interactions across all brands included suggestive selling – even though it’s a more natural practice in the quick-service category.) That said, the brands that have implemented AI to automate suggestive selling upsold 88 percent of orders. In your online and app-based orders, are you automating suggestive selling – and incorporating AI-based applications to make consistent, targeted suggestions? Even if you’re not operating in the drive-thru space, if you’re not yet making additional suggestions based on a person’s ordering history, at a time when they are hungry and already craving your food, you are likely leaving money on the table on more orders than you might expect. It may seem like the world has moved beyond Covid-19, but the virus continues to make the restaurant landscape feel different than it once did. Where, when and how people consume food from restaurants has changed. The numbers prove it: As a recent Washington Post report indicates, restaurants are serving 16 percent fewer people in their dining rooms as compared to before the pandemic. Meanwhile, off-premises dining has picked up the slack. While carry-out business is down 3 percent, delivery is up more than 5 percent and drive-through business is up 13 percent. The National Restaurant Association’s Hudson Riehle says a commanding 39 percent of all restaurant traffic is coming through the drive-through lane. This has divided restaurants into a couple of categories – those that provide fast, convenient, quality service for people on the go, and others that focus more on providing a memorable dining experience that’s worth lingering over. If you’re among the large and growing number of restaurants in the first category, consider how you might iron out any kinks in your mobile ordering, pickup and delivery processes. If you don’t provide drive-through service, how can you incentivize people to collect carry-out from you? Could your technology empower your staff to track orders with greater precision and bring them out promptly to waiting guests? Consider how you might infuse your service model with some flexibility and show guests that dining with you – whether off-premises or on – is a convenient and worthwhile option for them in this new environment. Takeout is here to stay (and even if you’re eager to serve a full dining room again, you have reason to be happy about the takeout part). The proof is in the numbers. According to a new survey of more than 2,000 U.S. consumers by Paytronix Systems, 63 percent of the money that U.S. consumers spent on food orders last year was on food eaten at home. Digital channels supported those orders by a large margin: Of the money consumers spent online on food orders, 89 percent was spent on orders placed via desktop websites, mobile apps and aggregator apps. What’s more, the research found that consumers spent 50 percent more on average when they placed orders online for takeout. Paytronix CEO Andrew Robbins says that in 2021, a consumer’s ability to order online, collect orders via a drive-thru or curbside pickup, and earn rewards through loyalty programs will create the most opportunities for restaurants. This makes it all the more critical to be able to use your POS to quickly summon information about what your recipes cost, which menu items deliver the most profitability, and what items a guest has ordered in the past. If your restaurant receives a grant from the American Rescue Plan, consider using it to fine-tune your tech to streamline your takeout so you can suggest the profitable items and combinations that a guest is most likely to crave time and again.
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?
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.
In recent months, your business may have offered more bulk meals or meal kits to customers looking to enjoy restaurant-quality food during the lockdown. Are these options worth carrying over as people begin to return to dining at restaurants and gathering with more people? Simon-Kucher & Partners, a global strategy and marketing consulting firm that works with a range of major restaurant brands, addressed this question in a recent study they conducted about consumer behavior after COVID-19. The findings, as reported by QSR Magazine, indicate that the answer is a probable yes. Prior to the pandemic, it found that 33 percent of consumers favored home-cooked meals, while 67 preferred food prepared away from home. Contrast that with preferences during the pandemic (55 percent vs. 45 percent) and preferences projected between six and 12 months post-lockdown (37 percent to 63 percent). In many areas, it will likely take a number of months before consumer routines return to what they were like prior to the pandemic. Providing some core menu items that can be offered as family-style meals, or packaging up ingredients that can be combined and cooked at home, can offer some additional freedom to guests – and perhaps tip the scales in your favor when consumers are considering where to order their next meal.
In restaurants just a couple of weeks ago, having a solid plan for off-premise business was highly recommended but perhaps not essential. Well here we are – and for restaurants across the nation, takeout has suddenly become the only option to allow business operations to continue for the time being. Whether you offer off-premise menu items such as takeout meals that customers can pick up outside your door, or you have food delivered, restaurants can play an important role in providing a sense of normalcy and community in these unsettling times. Try to think of your menu and marketing in a new way. What items available through your regular suppliers can be included in care packages to be sent home with people who are house-bound right now? Can you create meal bundles complete with appetizers and comfort food that may appeal to families looking for relief after a day of managing remote learning? Do you have a popular house-made beer that people may crave to relieve some stress at the end of the day? (Note that state regulators have begun to allow delivery of cocktails.) Can you create partnerships with other restaurant operators to pool resources on a temporary basis? How can you think outside of the box and provide food and some much-needed positivity to your customers through the weeks ahead? When spreading the word about your takeout options, think beyond the usual channels – on your social media and email list, encourage people to help promote you to friends at their schools, houses of worship and other local organizations that are eager to help people in your community the weeks ahead.
As delivery ramps up, are drive thrus on the way out? Minneapolis may have set a precedent recently by banning the construction of new drive thrus in the name of health and safety: The city wants to cut back on vehicle noise, idling and traffic and make sidewalks safer for pedestrians. Existing drive thrus in the city will remain intact, however.
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