Over the years, how much happy hour business (or other after-work business) has your restaurant generated? If this part of the day once provided a steady stream of traffic for you on several evenings a week, chances are times have changed -- due to factors such as the increase in hybrid work schedules post-pandemic, people’s desire to keep their professional and personal lives separate, and a decline in alcohol consumption. Research from Fox Business found that happy hour traffic has dropped by 49 percent in recent years. If this has impacted your business in any way, it could be a good time to gather your team and identify some new potential business streams – or simply shift your approach to the after-work crowd by offering some different options. While people may not be looking to stop in for appetizers after work, maybe they’d go for a pre-workout smoothie, meal kit or easy weeknight takeout. Maybe you can approach the offices that once gave you more after-work business and make them aware that you can cater their in-house lunches and meetings so they can make their employees’ less-frequent in-person connections feel more worthwhile. Or perhaps, now that the warm weather is coming, you can come up with a limited-time offer that will draw people to your outdoor dining area. Your data provides clues as to what your guests crave and when. What adjustments can you make that will help your business be as nimble as possible in the face of shifting traffic patterns? 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? |
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