For many restaurant operators around the country, 2019 has been the year of the rising wage. As the restaurant consultancy Aaron Allen & Associates reports, 21 states announced increases for 2019, and several states that already had high minimum wage rates saw major rises. California and Massachusetts saw increases above 9 percent and Maine experienced a 10 percent climb. Further increases are coming in 2020. Can your menu prices alone accommodate these sorts of increases in your labor spending? It’s not likely. To help your restaurant thrive amid labor challenges, Aaron Allen suggests operators assemble a plan that involves strategies for menu development, marketing, labor optimization, brand relevance and rejuvenation, technology adoption and even robotics. For instance, crafting a well-developed menu can lift check totals, increase party size and help you identify opportunities for limited-time offers, upsells and new profit lines. Conducting an audit of your brand and what sets it apart, as well as of your past, current and future marketing activity, can help you fine tune your strategy and avoid overspending. Similarly, if you audit how tasks are completed in your restaurant and what you’re spending on the labor required to complete each one, you might identify ways to adjust your service model or uncover tasks that can be eliminated or handled by technology. Speaking of tech, what processes can you make more efficient and guest-friendly through the use of technology? Could a tech-based solution help you minimize ongoing labor challenges? You may not need to take action in every area but knowing where you stand in these aspects of your business can help you pinpoint weaknesses that can lead to financial challenges down the line – and help you identify and build upon your greatest strengths.
Consumers like a limited-time offer: Whether it has to do with short attention spans or a desire for something new and different, there has been a 64 percent spike in LTOs in the past five years, according to Technomic. Their research also found that a majority of female consumers and millennials are drawn to innovative dishes, new flavors and menu launches when they choose a restaurant, and 30 percent of quick-service customers would visit a restaurant they wouldn’t normally visit if it meant taking advantage of a unique LTO. Restaurant Business advises operators to consider several factors when developing an LTO to attract guests. First, set a goal you’re hoping to achieve and design your LTO around it. (An LTO that will bring in guests for several weeks or months will need to have broader, more mainstream appeal than an LTO designed to generate a lot of buzz for a short time.) Second, consider your demographics and let your data guide your decisions. Preferences will vary across generations and genders, so consider everything from your LTO’s ingredients to its portability when anticipating how guests are likely to perceive your offer. Finally, use language that describes the sensory experience of eating what you’re selling (e.g. think “crunchy” vs. “breaded”) and promote the health-conscious aspects of your LTO. Words like “fresh,” “local” and “made from scratch” tend to score especially well with consumers.