As restaurants have struggled to accommodate the need for meal delivery during the pandemic, a number of cities have stepped up to limit the steep fees third-party delivery providers can charge. Restaurant Business reported in late July that Philadelphia – which had just joined the effort alongside cities including New York, Los Angeles, San Francisco, Oakland, Portland, Ore., and Washington, D.C. – would immediately cap total fees on delivery orders at 15 percent. The report said delivery commissions could not exceed 10 percent of the order total, and separate nondelivery fees could not surpass 5 percent – until 90 days after the end of the current public health emergency. As for what happens in other cities, and, for that matter, across the country after the threat of this pandemic passes, restaurants need to dissect their data and understand their customer base so they can negotiate the best terms of third-party contracts. Even with the major providers, there is room for small restaurant brands to bargain – particularly as provider consolidation remains likely. This Fast Casual report (https://bit.ly/33vocmi) provides some tips about the best ways to secure a fair deal with third-party companies – including what you should know about your profits, customer habits and existing ordering channels to get the best leverage when negotiating an agreement. If you think in-house delivery might work for your restaurant with a little guidance, you can also check out the Native Delivery Best Practices Work Group, an effort launched by the Restaurant Technology Network.
The pandemic has made the need (and demand) for efficient restaurant food delivery even clearer. If you operated a dining room before but don’t see it being a practical business move going forward due to physical distancing and capacity requirements, you may be considering going the virtual route, with a focus on driving off-premise sales. This doesn’t necessarily require moving to a new location. Depending on your leasing status and the flexibility of your landlord, you may be able to transform your current business and space into a ghost kitchen. If you need help to convert your existing business into a digital business call Team Four Foodservice.
Amid the rise of restaurant technology, many restaurant industry leaders have held that while robots and other technology would progressively be used to handle repetitive tasks once completed by employees, the employment landscape would also change, not just eliminating jobs but creating new roles that require human skills and allow people to build longer-term careers in the industry. This could be the year when that shift becomes more visible. In a QSR Magazine article predicting 2020 trends, GJ Hart, the CEO of Torchy’s Tacos, predicts this year will bring increased efforts by operators to attract and retain talent, such as providing educational benefits and other programs that help employees climb the corporate ladder. Torchy’s, for one, has a managing partners program that allows restaurant managers to operate their own locations. Taco Bell is also raising the bar when it comes to employee incentives. A recent Bloomberg article reports that the brand will be testing a higher salary – $100,000 – for restaurant managers in select U.S. restaurants in the midwest and northeast. (Current salaries for general managers at company-owned stores fall between $50,000 and $80,000, the report says.) While other brands may not be able to afford to transition to this kind of model, brands that are making such changes stand to alter the competitive landscape when it comes to hiring – and perhaps shift the kind of worker restaurants are able to attract. This year, what actions can you take – large or small – to make your business attractive as a long-term career prospect for the people you hire?
Conventional wisdom says that email marketing is king: Restaurant operators have a higher chance of targeting consumers with the right message at the right time if they prioritize email promotions. But what if your promotions are landing in spam folders? A recent episode of the Restaurant Rockstars podcast covered the power of text and how your wifi system can unlock a lot of potential in growing your database and bringing guests back – as long as you’re not giving away access with no strings attached. The guest, Steve Fletcher, runs Wifi Technology Solutions, a firm that partners with hospitality businesses to develop their marketing strategy through wifi. If you currently rely on guests to actively sign up to your mailing list, read on: For better or worse, 62 percent of people who go out to eat are looking to use wifi. Why not accommodate that demand while making it easier to expand your customer database? Fletcher advises tapping into a concept called social wifi, in which restaurant guests connect to a restaurant’s wifi network via a password that connects them to a splash page where they sign in via Facebook, email or cellphone. Thereafter, he suggests sending one email and one text per week (with text being the priority). The open rate for text is north of 90 percent and the conversion rate is about 32 percent – odds that can be profitable for you if text messaging suits your brand. Fletcher usually advises sending a text on a Tuesday morning between 10 and 11am, limiting the message to 114 characters, offering a promotion that lasts four or five days so the recipient has a good shot at using it, and always including an opt-out option at the bottom. Need help finding a solution check, we can help. To learn more check out https://www.palettefoodservice.com/marketplace.html to learn more about our social wifi solutions.
Any chef can confirm it: Running a restaurant well can require the skills of a lawyer, doctor, designer, HR manager, mechanic, janitor, and the list goes on. And that’s on top of having to offer an appealing, in-season menu that can be readily adapted to different nutritional needs. While that ever-changing environment can bring interest and variety to each day, chances are you were drawn to the restaurant industry more because of the food than for your ability to negotiate a beneficial contract or identify the best cleaning supplies. Further, the multitasking often required in a restaurant setting can kill productivity: A University of Michigan study found that when a person attempts to accomplish more than one task at a time, productivity drops by 40 percent. Team Four’s Palette program can serve as an extra pair of hands, taking on some of the responsibilities on your plate so you can multitask less and focus more on parts of the business that suit you best. For example, Palette can help you fine-tune your brand, including redesigning your menu or updating your graphic identity on your website, signage and marketing materials. You can also access restaurant equipment, linens, office and cleaning supplies, along with services for managing waste collection and pest control. And in case your menu or inventory needs attention too, we can help you develop new recipes, identify cost-effective menu substitutions, improve your food safety record and offer negotiated contract pricing to help ensure you’re getting the products you need at the best value. You can access the full list of services included in Team Four’s Palette program at www.palettefoodservice.com.
“If you’re gluten-free, why do you see menus where 80 percent of the items have gluten?” That’s what Kitchen United CEO Jim Collins asked during a restaurant technology event hosted by The Spoon last fall. The point makes sense: After all, why waste space on a menu by trying to sell a customer with celiac disease a lot of food he can’t eat, right? But it’s a typical occurrence. Even as restaurant brands embrace personalization and customization on menus, there is still a ways to go. The transition could be happening sooner than we think, however, particularly considering McDonald’s and its recent $300 million purchase of Dynamic Yield, the personalization startup company. The transaction is designed to make the brand’s in-store and drive-thru menus more technologically dynamic, changing up the food selection that pops up on menus depending on the weather, time of day, trending restaurant menu items, and current restaurant traffic, as well as suggesting additional menu items based on what the customer selects. This doesn’t sound that far off from what many restaurants with touchscreen ordering can already offer, though, so it begs the question: What’s in the pipeline? As restaurants embrace tech that responds to feedback from customers and other external factors, operators should consider how this is likely to play out. Could your restaurant technology help you lay the groundwork for offering guests the specific menu options they’re most likely to buy?
If you operate a quick-service or fast-casual restaurant and are eager to see a quick boost in downloads of your restaurant app, take note: A number of large brands have seen their downloads skyrocket in recent months by offering a small free item. QSR Magazine reports that when McDonald’s offered free medium fries in exchange for a download of their app plus a $1 purchase, it jumped 56 places to become the No. 2 app on the U.S. App Store within a week — and Dairy Queen, Wendy’s and Chick-fil-A experienced similar jumps in engagement. While it remains to be seen how successful these brands will be at retaining the consumers they have enticed, it shows how much mileage a simple free item can get you when you’re looking to build (and better understand) your consumer base.