Restaurant prices have undergone a reality check in recent months and years. If, like the vast majority of operators, you have had to hike menu prices to keep pace with such stresses as inflation and rising staff compensation, your guests may scrutinize their spending a bit more – perhaps cutting back on visits or ordering less when they do. Or, they may visit you on occasions when they are apt to eat a bit less – like for an after-work snack and beverage with a friend or a pre-workout boost. But you can take some steps to manage the perception that you’re stretching guests’ budgets and also drive off-peak traffic by making your between-meal dining occasions feel more special. For example, you can double down on your value options – guests are still apt to respond to offers of combo meals, meal bundles and other items that make them feel like they are getting more for their dollar. Pour some creativity into your between-meal periods by offering some eye-catching hot and cold beverages that guests can customize with their own additions. It’s also important to get personal: New research from TouchBistro found that 64 percent of restaurant operators are sending personalized offers to guests, up from 55 percent last year. So even if you’re already sending personalized offers to your best guests, your offer may be one of several vying for their attention. Drill down on your guests’ habits and lifestyles to ensure you’re offering food and drink options they will want to make part of their day. Much as we hear about the rise of robotic workers in restaurant kitchens, far more operators are looking to tech to augment, rather than replace, human staff. That’s according to the National Restaurant Association’s State of the Restaurant Industry report 2024, which found that while 47 percent of operators believe automation will become more common this year, 69 percent believe that tech will be more commonly used to support existing workers rather than replace them. One area where restaurants can focus such efforts is on their most manual, physically arduous tasks. A recent Restaurant Business report quotes ZipRecruiter research that found that workers had “real aversions to jobs that involved real physical labor.” Starbucks is one brand that has responded to this: Their cold drink orders, which comprise 75 percent of their sales, require a steady stream of ice that baristas once had to lug inside by heavy bucketfuls throughout the day. But new back-of-house technology has enabled the business to send ice into the kitchen via a pipeline, thereby eliminating that heavy lifting. To be sure, such changes require investment, but they can also save money on the back end by decreasing turnover. In your operation, are there tasks that get passed from one worker to another – or are frequently skipped because they require too much physical labor? These may be key areas to implement tech-driven supports that make work easier for staff. If you had to choose one big growth opportunity this year, what would it be? For a rising number of U.S. restaurants, it’s catering. Expert Market Research anticipates 6.2 percent annual growth throughout most of the next decade for businesses that offer this service. A recent Restaurant Dive report says consumers’ return to the office is driving much of the demand, though private events are also fueling it. Catering is also looking different than it did before the pandemic. There is a greater range of restaurants getting involved – from small independents to large national brands – as well as an increase in offerings like boxed lunches and individual options across the channel. Appealingly for restaurants, the average spending per person on catered occasions is skewing higher these days, despite the increase in hybrid work environments resulting in a smaller critical mass of people in offices each day. At a time when company bosses are looking for ways to increase the appeal of coming to the office and want to encourage connections among employees who may be spending less time together, food from a favorite restaurant can be a useful tool. If you plan to increase your focus on catering this year, how might your menu accommodate consumers’ tastes for customization and choice? Does every menu item you offer travel well and also help you maximize profit per head? When you send your food out the door, how well does your branding and packaging represent your business and its values? From a distance, are there opportunities for you to build engagement and loyalty among the people who are enjoying your food as a group? What incentives and promotions might help your business stay in regular rotation with these groups? It’s a theme that has persisted since the pandemic: Consumers simply want more from restaurants than quality food and drink these days. As factors such as food inflation, threats of recession, and the slimming down of menus and staff rosters have made ordering restaurant food a harder sell for consumers, more operators have turned up their experience factor to help attract traffic. The result is a restaurant that feels like it’s as much about the atmosphere and excitement of the experience as about the food on the menu. As a recent Forbes report details, experiential dining can involve such elements as immersive themes, interactive elements, storytelling or entertainment. This can be achieved by changing up guest expectations through rotating pop-up concepts, themed dining events, or collaborations with guest chefs or complementary businesses, for example. Similarly, US Foods reports that more restaurants are boosting their experiential vibe with entertaining tableside prep, such as fancy knifework displays and avant-garde, Instagram-worthy cocktails. These approaches also provide natural opportunities for businesses to promote their offerings on social media, entice guests who are active on social platforms to share content from their visit, and forge partnerships with online influencers who can further spread the word. Even if you’re not looking to put on a show for guests, think of experiential dining as simply a means of keeping things interesting for guests. This can be a natural outgrowth of the way you have had to make regular changes on your menu due to supply chain snags or the changing of the seasons. Consider rotating in more limited-time offerings or specials, or featuring a reinvented menu of drinks, appetizers or entrées each season to keep the experience new and fresh for your guests. It may be the ideal way to keep costs in check while offering guests the kinds of appealing options that keep them engaged and bring them back: Offer creative snack foods and beverages that are worth the trip outside of meal times. Think functional beverages – like smoothies that offer an energy boost or other nutritional elements ideal for the pre- or post-workout crowd. The same goes for smaller nibbles that can drive traffic during slower parts of the day, attract a younger demographic, and may be easier to feature on a rotating basis as limited-time offers to keep your menu fresh. A recent Restaurant Dive report says more foodservice businesses are taking this route – simplifying the main menu but growing their options in other areas – in an effort to reduce operational complexity in their kitchens and manage costs. Chances are you’re serving more guests who are abstaining from alcohol these days. Whether for reasons related to wellness or simply a decrease in social pressures to consume alcohol, more consumers are opting for non-alcoholic drinks. In fact, research from Statista found that global revenue in the non-alcoholic beverages market has been climbing for the past seven years and is forecast to reach a new peak in 2027. Yet despite that upward trend, many menus still play it safe with non-alcoholic beverages – staying in the neighborhood of sodas, flavored coffees and teas, or a few simple stand-ins for alcohol. But there is a thirsty market for concoctions that aren’t simply alcohol substitutes but are worth the visit in their own right. As a recent Eater report says, the latest incarnations of non-alcoholic drinks break the boundaries of traditional cocktail culture. Case in point: The Sun Ship, a signature drink of Ghost Note Coffee in Washington, D.C., is “technically a coffee beverage, but you would be forgiven for forgetting that there’s espresso in it — there’s also coconut water, lime, and smoked grapefruit rosemary syrup. It’s refreshing with strong citrus notes, but the rosemary adds a deep herbal aroma to it.” These drinks call for a chef’s sensibilities around flavor complexity – and as a result, they can help justify prices more akin to those typically charged for conventional cocktails. What can you do to make your non-alcoholic beverage menu worth a special trip – or at least a second glance? Hopefully, your guests are thinking of your business when they ask that question. According to Technomic research published this past summer, breakfast is the only major daypart that has been growing as compared to the same period a year prior. The first meal of the day provides a good opportunity to deliver a positive experience to guests, offer value and build loyalty. (After all, even when consumers are pinching their pennies, they will still pick up their favorite cup of coffee on the way to work.) To make the most out of your morning traffic, you might refresh your menu. If it makes business sense and you are able to execute some new additions well, consider how you might incorporate more on-trend tastes, whether through offering a hot honey breakfast sandwich, weaving more global spices into your breakfast bowls, or, if you operate in an area with a rich culinary heritage, creating a new take on a classic regional dish. Looking back at the past year can reveal some clues as to what we can expect in the year ahead. For many restaurants last year, food became more creative again as restaurants looked for ways to provide fresh experiences to guests while sticking to small core menus and tight budgets. One approach restaurants used accomplished this – and are likely to use again this year – is offering a rapid progression of limited-time offers. Technomic research found that in October alone, restaurants introduced more than 2,200 new menu items, of which a whopping 93 percent were limited-time offers. These items are vehicles that enable restaurants to inject something new into the menu on a frequent basis. Restaurant Business reported that some restaurants have been offering limited-time menu items with shifting seasonal ingredients, variations on core menu items, and more innovative items that allow chefs to test potential new offerings or show off a skill that might not have a chance to shine on a core menu. As you look ahead to the rest of the year, are there opportunities to more frequently change up your offerings with items that can refresh the experience you offer guests? Serving an exciting, on-trend menu is a key component of a worthwhile restaurant experience. So what taste treats belong on your menu this year? The National Restaurant Association surveyed more than 1,500 culinary professionals and narrowed their responses down to 10 trends for 2024. One key theme is global flavor – in soups and stews, including Birria, Chicken Tom Kha, Laksa, Salmorejo and Upscale Ramen; as well as in chicken wings and barbecue. Meat is still on the menu, but it’s higher-end options like Wagyu beef that are trending. Culinary professionals are also exploring new ways of preparing in-demand ingredients – such as grilling or cooking cheeses like Provoleta, Queso Fundido, Raclette, Halloumi and Juustoleipa; offering stuffed vegetables including Chiles en Nogada, stuffed peppers and stuffed cabbage rolls; and adding some sweetness to the breakfast menu with hot honey breakfast sandwiches. Regional flavors are still in demand and operators will continue to streamline their menus in an effort to operate as leanly as possible. To get the word out about their menus and promotions, expect to see more operators expanding their use of social media – and TikTok in particular – to boost engagement in creative ways. Could any of these ideas support your plans for the year? Is there room to step up your mocktail menu? Nonalcoholic beverages have been on the rise in restaurants in recent months and will likely continue to draw interest in the New Year as consumers place renewed focus on health and nutrition. According to research from DataM, the global market for nonalcoholic beverages is expected to grow 6.5 percent annually through 2030. All of this is good news for restaurants because the cost of nonalcoholic drinks tends to be lower than that of alcoholic drinks, yet guests are generally willing to pay similar prices for them. An interesting beverage can help a person feel more social when out with a group, so there is opportunity to promote your offerings to larger gatherings. Consider mixing in on-trend fruit flavors, pairing unfamiliar flavors or functional ingredients with more familiar ones, as well as creating options that mimic the fun and flavor of alcoholic drinks like mojitos and margaritas but omit the alcohol. |
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