MRM Profile: Turning the Tides–25 Years of Food and Friendship

According to a Recent Study/Survey … End-of-September 2017 Edition

This edition of MRM’s popular “According to …” research roundup is perfect for the start of fall with the popularity pumpkin and coffee news. 

Successful Digital Campaigns

Wyng launched the Digital Campaign Index, a real-time scoring system that allows brands to quickly and objectively measure digital campaign performance against other campaigns in their industry by averaging two independent performance indicators — Engagement Score (ES) and Virality Score (VS). The average score usually falls between 0 – 200. The Wyng team compiled their data and insights to provide customers, brand and agencies with objective, independent reference points for assessing the performance of digital campaigns, plus provide actionable insights to help maximize the success future activities.

 The study found that co-created content (when a consumer and brand create shareable content together — like a branded SnapChat overlay) scores the highest both virality and engagement wise, out of all forms of campaigns. Media walls (facebook walls) score the lowest. The study found that in general restaurants had a much higher engagement score vs. virality score. Meaning that customers are more likely to engage and deeply experience (by clicking through, filling out forms, scrolling, and spending time) restaurant’s digital campaign as opposed to share virally (by hashtags, campaign shares, content shares, etc.)  The average engagement score is 143, while the virality score is merely 78.

Changes in consumer behavior are leading to changes in how brands market and sell online. For example, consumers have grown weary of conventional interruptive advertising. Thanks to social media and user-generated content (UGC), consumers now discover brands from friends and peers online, not from banner or display ads. At the same time, instead of buying from physical locations, consumers are gravitating toward online retail and direct-to-consumer brand.com sites, shortening the distance between discovery, intent and purchase.

Because of these changes, brands can no longer rely on traditional advertising and marketing techniques to build purchase intent and loyalty. In their place, brands must craft digital experiences that cultivate deeper, more authentic relationships with consumers — experiences that result in meaningful consumer engagement and virality. These mid-funnel outcomes can now be measured, benchmarked and optimized using the The Digital Campaign Index, enabling brands to boost top-of-funnel return on advertising and marketing spend and improve bottom-of-funnel conversions.

The DCI Benchmark Report is a quarterly review of DCI benchmarks by industry and campaign format, along with related insights. This report provides brands and agencies with objective, independent reference points for assessing the performance of their digital campaigns, plus current and actionable insights to help maximize the success of their next campaign.

Digital campaigns — from promotions to sampling to shopper marketing programs — are critical to building and nurturing audiences with purchase intent. They exist as landing pages, microsites, website and mobile app embeds, and media formats like Snapchat Ads with WebView. While campaign reports on most platforms often include a dozen or more mid-funnel metrics (time spent, submissions, shares, earned reach, etc.), that approach fails in two ways: it doesn’t speak to the higher level goals of running a digital campaign — engagement and virality — nor does it facilitate comparison between the performance of disparate campaigns. In other words, it doesn’t help marketers develop a broad and comprehensive digital gameplan.

ES, VS and DCI Scores are discussed in detail in The Digital Campaign Index Whitepaper.

Highlights:

 

Fazoli’s “Win a Trip to Italy!” Campaign — More Viral than Engaging

 

Fazoli’s ran a sweepstakes campaign offering the chance to win either a trip to Italy or a year’s worth of free Fazoli’s Family Meals. Though the campaign was slightly below the Engagement Score average for its industry and campaign format, it was hundreds of points above the average for Virality demonstrating that a successful campaign doesn’t have to have record-breaking scores for both metrics.

Part of the reason for Fazoli’s success is that the campaign included a refer-a-friend component, so consumers who recruited friends to enter earned an extra chance to win. This functionality can be added to many campaign formats, and campaigns that include refer-a-friend had an average VS of 312 in Q2, well above the average VS of 86 across all campaign formats.

Along with including a refer-a-friend component, Fazoli’s gave consumers a personalized experience by including links for consumers to share the campaign with their networks on Facebook, Twitter or Email. To keep consumers coming back to their campaign, Fazoli incorporated a counter that kept track of how many consumers entered the contest using the personal link someone shared. These best practices that Fazoli incorporated into their campaign can be leveraged by any brand in any industry.

 

People Prefer Pumpkin

While we heard maple is the new staple, early fall restaurant data indicate that while the dollar total of pumpkin sales aren’t surpassing last year’s figures, demand for pumpkin-related food and drinks is outpacing the previous two years. In other words, it’s a great year for pumpkin-loving consumers: 1) To date, the number of pumpkin offerings is higher than ever before, and 2) the average price for pumpkin items are lower than last year.

Upserve, a restaurant management platform, recently looked at data from bar and restaurant customers around the country related to pumpkin flavored item sales and customer behavior, and has obtained some interesting data points.   

• All things pumpkin was America’s obsession last Fall, which in turn created buzz this year
• Compared to the same week last year, the total number of pumpkin items sold went up by 15.3 percent
• Over the same seven week period from 2016 to 2017, the average price of a pumpkin product dropped from $9.20 to $7.81 (a 15.1 percent reduction)
• Additional key findings around how Americans are enjoying their favorite seasonal menu items:
• People treat themselves to pumpkin on Saturdays

It’s true what they say, indulgence is for the weekends. Saturday is when people are most often enjoying their pumpkin-flavored treats, followed by Sunday and Friday. Sales data show that last year over 40 percent more pumpkin items sold on a Saturday compared to the best-selling week day, Friday. So far this year, 50 percent more pumpkin items are selling on Saturday than any week day.

But, not before September

Labor Day weekend really is the unofficial end to summer, and menus change accordingly—Pumpkin Spice pandemonium kicks off during the first week of September according to sales data. Over the past three years, there has been a significant jump in sales of pumpkin menu items between the last week of August and the first week of September. This year, sales increased almost 100 percent during the first two weeks of September.  

Dunkin Donuts and Starbucks have it right—when it comes to pumpkin, bigger (selection) is better

The numbers support this, and restaurants that are adding additional pumpkin flavored items to the menu are seeing the reward in terms of sales. According to data, just this year, when 60 percent more pumpkin items were added to menus, sales of pumpkin-flavored items grew over 80 percent.

And this has been a consistent trend, in 2015, when the numbers of pumpkin items added to menus increased by 84.31 percent, sales grew 116.59 percent

How We Pay

In 2017, there are more payment options available to consumers than at any other point in history. But, with the advent of more and more payment options, cash is seemingly getting exiled to the outskirts of strip malls and casinos. Even Visa, who recently announced they would be awarding up to $500,000 to 50 eligible U.S.-based food service owners that made their business 100 percent cash-free, is getting involved in the war on cash. 

As a general trend, it seems that even the way in which we pay is getting heavily influenced by the digitization of the 21st century. In a recent poll, LendEDU found that virtually a third of millennials are using the peer-to-peer payment app Venmo for drug-deals, a business that was forever monopolized by cash until a more tech-savvy solution came about. 

With such a litany of payment options that the American consumer must choose from, LendEDU sought to discover not only today’s most prevalent payment method, but also the predicted payment trends of tomorrow.

To get this study rolling, LendEDU asked the following question to 875 American consumers ages 18 and up: “What is your main form of payment?”

For both today (42.86 percent) and five years from now (45.71 percent), debit card received the plurality of votes, which makes sense. Debit cards offer the ease of credit cards without the headaches that come with utilizing credit. The payment method that experienced the biggest drop off in votes between today and five years from now was cash. In an ode to the future, nearly 11 percent less poll participants believed they would still mainly be using cash in five years when compared to how they are paying for things now. 

Credit cards also saw a slight decrease in potential users from today to five years down the road. While 23.31 percent of respondents said a credit card is their main form of payment today, only 21.83 percent said it would be their main form of payment in five years.

Both credit cards and cash received less votes from poll-to-poll, so where did those votes go? Digital wallets, mainly.

From one poll to the next, digital wallets, such as ApplePay, saw the biggest jump in the number of respondents that believed it would become the next big payment vehicle in five years. .91 percent of respondents said a digital wallet was currently their main form of payment, but 9.49 percent believed it would become their main payment form in five years.

Additionally, “Echeck” saw a poll-to-poll increase from .34 percent to ,8 percent, while “virtual currency” also saw a bump from .80 percent to 1.37 percent. 

With the exception of cash and digital wallets, the discrepancies between payment forms of today and payment forms in five years were not all too drastic. However, when we asked respondents to state how they believed future generations will be making payments, there was a seismic shift in the results. 

American’s Believe Digital Wallets, Virtual Currencies Will See Major User Growth in Future Generations

All 875 respondents were asked to answer the following question: “How do you think your children/future generations will be making payments?”

This particular question produced some really interesting results. Unlike the previous two questions, “debit card” no longer received the plurality of votes. Instead, “digital wallet” received the plurality of votes with 28.11 percent. If these three questions are taken collectively, digital wallets emerged as the clear winner. Despite digital wallets’ lack of popularity now (only .91 percent said it was currently their main form of payment), 9.49 percent of our respondents believed it would become their main form of payment in five years, and 28.11 percent believed it would be the main form of payment for future generations. Displaying a consistent upwards trajectory, expect to see more Americans using their phone’s digital wallet as you wait in the check-out aisles of the future.

While digital wallets trended upwards, cash went in the opposite direction. With each poll, cash received less and less votes until only 11.31 percent believed cash would be the main payment method of their children. Interestingly, cash only received a slightly higher percentage of the vote than did “virtual currency,” which raked in 8.80 percent.

Only 2.51 percent more people believe cash will be more prevalent than virtual currencies in the future.

You would be hard-pressed to find a more forward-thinking statistic than this: Only 2.51 percent more people believe cash will be more prevalent than virtual currencies in the future. The belief that virtual currencies, like Bitcoin, will become more mainstream in later years falls right in line with a previous LendEDU poll that found more Americans would be willing to invest in Bitcoin in the future, especially younger consumers.   

Another eye-catching statistic from this particular question was that 11.89 percent of the respondents believed “some other form of currency not yet invented” would be the main form of payment for future generations. That answer option actually received more votes than did “cash,” “Echeck,” and “virtual currency.” It is impossible to predict what the next big payment vehicle will be, and if someone had explained the idea of Bitcoin to you ten years ago, you probably would have called the nearest psychiatric ward. Nonetheless, the fact that the answer received a considerable amount of votes is indicative of the American belief in innovation, and that many consumers believe current payment methods are outdated and vulnerable to be replaced.

It is worth noting that two of the more popular vote-getters for the first two questions, credit card and debit card, both experienced a dip in their respective shares of the voter pool. Cash seems to be the payment form that will suffer the most as time goes on. Cash is currently being phased out by many small businesses, and our poll results showed a direct correlation between the progression of time and the percentage of people that think cash will still be the main form of payment.

31.77 percent of our respondents said that cash is currently their main form of payment, while the remaining 597 poll participants selected a different payment mechanism. We wanted to find out some cash-trends amongst those 597 respondents that have already moved on from paper money.

We asked that cohort of poll participants the following question: “How often would you say you have cash on hand?”

The plurality of voters, 41.37 percent, said that they have cash on them sometimes. The second lowest proportion of respondents, 13.57 percent, said they always have cash on hand, while the third lowest proportion, 16.92 percent, said they have cash on hand more often than not. The second highest percentage of respondents, 25.63 percent, said they have rarely have cash in their possession. Only 2.51 percent claim they never have cash on them. 

The purpose of that question was to clarify how prevalent cash still is amongst Americans that have a main form of payment other than paper money. As a general trend, it seems that most casual users of cash have a limited chance of having cash on their person, indicative of how increasingly unnecessary it is to have dollars on you when there are so many other viable payment options out there.   

The next question was only asked to the respondents that one, had a main form of payment other than cash, and two, selected any answer from the question immediately above other than “always.”

In total, 516 respondents were proposed the following question: “Would you say you go to a business less because they only accept cash?”

Although the plurality of poll participants, 49.81 percent, said that they would take out cash if they really wanted to go to a cash-only business, this question still produced some telling results. 15.31 percent of respondents stated they can never go to cash-only establishments because they never have cash on them. Another 34.88 percent said this predicament prevents them from going to a business more than they would if that business accepted card. 

Many of the establishments that do not accept anything other than cash are small, mom-and-pop businesses that are often toeing the line between going out of business and surviving the month. While many forward-thinking businesses are phasing out cash , the cash-only businesses are heading backwards. Just imagine how much more comfortable these cash-only businesses would be if they accepted other payment forms and retained even half of those consumers that said they are prevented from going to their favorite places because of their payment practices. 

The spending tendencies between those who mainly use cash and those who mainly use a credit or debit card are almost identical. 74.37 percent of heavy cash users said that they use cash to pay for everything, including food, housing, and bills. Similarly, 71.68 percent of credit or debit users said they use their plastic for everything.

While the consequences for using a debit card for all expenses are not severe, consumers must be careful about swiping their credit card for everything. Utilizing a significant portion of your credit (which is what would happen if you are paying for everything with a credit card) not only makes you a risky, undesirable proposition for the credit card companies, but also puts you at risk of racking up serious APR fees if you overspend. 

For those respondents that were either using cash for some things or a credit/debit card for some things were asked to specifically identify what they were using either payment vehicle for. 

Grubhub Ordering Trends

Grubhub announced the results of its analysis of the past year’s efficient ordering trends. The findings provide insights on how people are using Grubhub’s Express Reorder, Preorder and Pickup features to place takeout orders with ease.

Some savvy ordering “winners” include: 

• New York City, taking the top spot in the “Fastest Foodies” category. New Yorkers use the Express Reorder feature 91 percent more than the rest of the country.
• Portland, Ore., leading the pack in the “Food Forecasters” category.Portland diners use Preorder, Grubhub’s feature that lets diners order up to five days in advance, 140 percent more than the rest of the country, planning their meals ahead of time.
• Albany, N.Y., placing first in the “City Skippers” category. People inAlbany use Grubhub’s Pickup feature 101 percent more than the rest of the country to skip the lines and delivery fees.
• Overall, females are more likely to plan ahead using Preorder 105 percent more than males.
• Meanwhile, males are more likely to quickly reorder a favorite past meal, leveraging Express Reorder 18 percent more than females.
• New Yorkers, placing as the top banana orderers! People in the Big Apple quickly reorder bananas 85 percent more than the rest of the country.
• “We’re committed to finding new ways to connect our diners with great local restaurants so that they can discover the food they want, whenever the craving hits,” said Barbara Martin Coppola, CMO, Grubhub. “Whether our diners are planning ahead by preordering, picking up at the restaurant to skip the line, or quickly reordering from one of their favorites, we’re always gathering feedback and using insights from our diners to introduce features that make their lives easier.”

Data Findings include:

Top 10 “Fastest Foodie” Cities & Fun Facts
Cities that most commonly use the Express Reorder feature

New York City places 91 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Turkey sandwich

Gender Wars: Males place 41 percent more Express Reorders than females 

Cambridge, Mass. places 72 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Vegetable tempura 

Gender Wars: Males place 39 percent more Express Reorders than females 

San Francisco places 60 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Jeera rice 

Gender Wars: Males place 46 percent more Express Reorders than females 

Somerville, Mass. places 56 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Salmon roll 

Gender Wars: Males place 31 percent more Express Reorders than females 

Boston places 52 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Spicy scallop roll 

Gender Wars: Males place 22 percent more Express Reorders than females 

Los Angeles places 32 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Hashbrowns 

Gender Wars: Males place 27 percent more Express Reorders than females 

Jersey City, N.J. places 27 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Boneless chicken kabobs 

Gender Wars: Male place 48 percent more Express Reorders than females 

Washington, D.C. places 22 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Goat biryani 

Gender Wars: Males place 8 percent more Express Reorders than females 

Chicago places 19 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Chicken makhani 

Gender Wars: Males place 13 percent more Express Reorders than females 

Arlington, Va. places 14 percent more Express Reorders than the rest of the U.S.

Most Express Reordered Dish: Chicken pakora 

Gender Wars: Males placed 23 percent more Express Reorders than females 

Top 10 “Food Forecaster” Cities & Fun Facts
Cities that most commonly use the Preorder feature

Portland, Ore. places 140 percent more Preorders than the rest of the U.S

Most Preordered Dish: Chicken tacos 

Gender Wars: Females place 195 percent more Preorders than males 

Austin, Texas places 104 percent more Preorders than the rest of the U.S

Most Preordered Dish: Tortilla soup 

Gender Wars: Females place 107 percent more Preorders than males 

Dallas places 87 percent more Preorders than the rest of the U.S

Most Preordered Dish: Cobb salad 

Gender Wars: Females place 161 percent more Preorders than males 

San Diego places 76 percent more Preorders than the rest of the U.S

Most Preordered Dish: Mediterranean salad 

Gender Wars: Females place 129 percent more Preorders than males 

Houston places 65 percent more Preorders than the rest of the U.S

Most Preordered Dish: Chicken salad sandwich 

Gender Wars: Females place 200 percent more Preorders than males 

Seattle places 45 percent more Preorders than the rest of the U.S

Most Preordered Dish: Veggie pizza 

Gender Wars: Females place 117 percent more Preorders than males 

Rochester, N.Y. places 38 percent more Preorders than the rest of the U.S

Most Preordered Dish: Buffalo chicken salad 

Gender Wars: Females place 85 percent more Preorders than males 

Boston places 32 percent more Preorders than the rest of the U.S

Most Preordered Dish: Veggie pizza 

Gender Wars: Females place 117 percent more Preorders than males 

San Francisco places 30 percent more Preorders than the rest of the U.S

Most Preordered Dish: Cobb salad 

Gender Wars: Females place 86 percent more Preorders than males 

Las Vegas places 28 percent more Preorders than the rest of the U.S

Most Preordered Dish: Chinese chicken salad 

Gender Wars: Females place 88 percent more Preorders than males 

Top 10 “City Skippers” Cities & Fun Facts
Cities that most commonly use the Pickup feature to skip the lines and delivery fees

Albany, N.Y. places 101 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Bacon, egg and cheese sandwich 

Gender Wars: Females place 2 percent more Pickups than males 

New Brunswick, N.Y. places 98 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Chipotle chicken wrap 

Gender Wars: Males place 39 percent more Pickups than females 

Evanston, Ill. places 92 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Philadelphia roll

Gender Wars: Females place 11 percent more Pickups than males 

College Park, Md. places 80 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Rainbow roll 

Gender Wars: Females place 25 percent more Pickups than males 

Troy, N.Y. places 80 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Chicken pesto pizza 

Gender Wars: Males place 8 percent more Pickups than females 

Cambridge, Mass. places 58 percent more Pickups than the rest of the U.S

Dish Most Ordered for Pickup: Chicken tikka masala 

Gender Wars: Females place 6 percent more Pickups than males 

Boston places 58 percent more Pickup than the rest of the country

Dish Most Ordered for Pickup: Yellowtail and scallion roll 

Gender Wars: Females place 3 percent more Pickups than males 

Philadelphia places 42 percent more Pickups than the rest of the country

Dish Most Ordered for Pickup: Grilled chicken cobb salad 

Gender Wars: Females place 2 percent more Pickups than males 

Rochester, N.Y. places 41 percent more Pickups than the rest of the country

Dish Most Ordered for Pickup: Fajita burrito 

Gender Wars: Males place 11 percent more Pickups than females 

Stamford, Conn. places 41 percent more Pickups than the rest of the country

Dish Most Ordered for Pickup: Barbecue chicken wings 

Gender Wars: Females place 9 percent more Pickups than males

Consumer Foodservice Delivery to Grow 51 Percent by 2021

Consumer foodservice is forecasted to reach US$3 trillion by 2021 with delivery as the fastest growing channel at 51 percent from 2016 to 2021, according to the latest data from Euromonitor International, a global market research company. Integrated technologies, better menu offerings and the overall “Experience More” megatrend, where consumers prioritise experiences over things, are impacting global foodservice, and operators need to cater to these shifting consumer preferences.

“Technology is replacing the service elements that defined more traditional restaurants,” says Stephen Dutton, consumer foodservice analyst at Euromonitor International. “Many new restaurant concepts feel they must leverage technology to remain relevant to younger consumers who have grown up in a more tech-enabled environment.”

Consumers want to eat at restaurants with values and causes that matter to them. As a result, more restaurant operators are embracing concepts that offer a holistic dining experience to meet the demand for dining occasions that match consumers’ values.

“Minimising food waste is one of those,” continues Dutton. “No-waste restaurants not only seek to minimise the amount of food that is wasted, but aim to do so in a creative, culinary way that generates excitement and enhances the dining experience.”

 

How Kids Spend Money

Greenlight, the world’s first smart debit cards for kids, recently compiled data from over 20,000 of their customers to determine which stores and restaurants teens are shopping at the most. This data is unique because it is reporting on actual teen purchasing behavior as opposed to survey data or an extrapolation of parents’ purchases.

Top Overall Merchants Kids Spend Money At (By Transaction Quantity)

1. Mcdonalds (4 percent)
2. Wal-Mart (3 percent)
3. Google (2 percent)
4. Microsoft (2 percent)
5. Amazon (2 percent)

 

Top Restaurants Kids Spend Money At (By Transaction Quantity)

1. Mcdonalds (16 percent)
2. Starbucks (6 percent)
3. Chick-Fil-A (5 percent)
4. Subway (4 percent)
5. Taco Bell (3 percent)

 

Top Categories Kids Spend Money At (By Transaction Quantity)

1. Fast Food Restaurants (23 percent)
2. Groceries (15 percent)
3. Fuel / Gasoline (11 percent)
4. General Retail (10 percent)
5. Restaurant (8 percent)

 

 

To commemorate National Coffee Day, WalletHub released its report on 2017’s Best Coffee Cities in America. To determine the best local coffee scenes in America, WalletHub’s data crunchers compared the 100 largest cities across 14 key indicators of a strong coffee culture. The data set ranges from coffee shops, coffee houses and cafés per capita to average price per pack of coffee.
 

	Top 20 Cities for Coffee Lovers
	1	Seattle, WA		11	Philadelphia, PA
	2	Portland, OR		12	Minneapolis, MN
	3	San Francisco, CA		13	Oakland, CA
	4	New York, NY		14	Honolulu, HI
	5	Los Angeles, CA		15	Miami, FL
	6	San Diego, CA		16	Atlanta, GA
	7	Chicago, IL		17	Long Beach, CA
	8	Denver, CO		18	Austin, TX
	9	Boston, MA		19	Las Vegas, NV
	10	Washington, DC		20	Jersey City, NJ

Best vs. Worst

Miami has the lowest average price for a pack of coffee, $3.43, which is 2.3 times lower than in Honolulu, the city with the highest at $7.87.
  

Fremont, California, has the highest average annual spending on coffee per household, $185.00, which is three times higher than in Detroit, the city with the lowest at $61.29. 
  

Gilbert, Arizona, has the highest share of households that own a single-cup/pod-brewing coffee maker, 21.1 percent, which is 2.9 times higher than in Hialeah, Florida, the city with the lowest at 7.3 percent. 
  

New York has the most coffee shops, coffee houses and cafés (per square root of population), 1.0739, which is 45.5 times more than in Laredo, Texas, the city with the fewest at 0.0236.
  

Portland, Oregon, has the most coffee and tea manufacturers (per square root of population), 0.0180, which is 36 times more than in Riverside and San Bernardino, California, the cities with the fewest at 0.0005.

To view the full report and your city’s rank, click here.

 

Americans Love Coffee

While the convenience of on-the-go food and drink options is on the rise, it seems stopping by a coffee shop to grab a latte, mocha or cold brew coffee is still an essential part of the day for Americans. New research from Mintel reveals the US coffee house market continues to experience healthy growth with sales reaching an estimated $23.4 billion in 2017; a growth of 41 percent from 2011. Mintel forecasts coffee house sales will reach $28.7 billion by 2021. Although sales are heating up, the boom in new coffee shops entering the market is cooling down. The total number of coffee shops in the US is forecast to grow by just 2.17 percent this year, the slowest growth rate seen in the last six years*.

A potential threat to the coffee house market, ready-to-drink (RTD) coffee is the fastest growing segment (20 percent market share) of the $13.6 billion retail coffee market. The convenience and broad variety of flavors that RTD coffee offers prove to be popular as consumers increasingly seek out on-the-go and premium options. Mintel forecasts the RTD coffee segment will experience 67 percent growth from 2017-22.

 

“The coffee shop market is benefiting from shifting consumer interest in more premium, albeit pricier, coffee drinks such as specialty coffees, cold brew coffee and third wave coffee. However, the number of new coffee shops hitting the U.S. market is slowing, indicating sales growth is coming from increased consumer expenditure on these more expensive beverages rather than unit growth and expansion,” said Caleb Bryant, Senior Foodservice Analyst at Mintel. “We expect to see coffee shop sales continue on an upward trajectory over the next five years; however, increased competition from the ready-to-drink coffee category could pose a substantial threat. Ready-to-drink coffee is one of the fastest growing non-alcoholic beverages in the U.S.; it is convenient, comes in a variety of flavors and is oftentimes cheaper than specialty coffees at coffee houses. We also see many brands driving innovation in the category such as the emergence of nitro ready-to-drink coffees.” 

 

Meanwhile, cold brew coffee continues to enjoy popularity in the U.S. with total U.S. retail sales of refrigerated cold brew coffee growing 460 percent from 2015-17 to reach an estimated $38.1 million this year. While cold brew at retail is on the rise, just seven percent of coffee drinkers say they have made their own cold brew coffee at home, with 11 percent agreeing cold brew takes too long to make.

 

Innovation may help persuade consumers to enjoy cold brew at home as one in eight (12 percent) are interested in roasts specially made for cold brewing coffee at home and one in 10 (10 percent) are interested in RTD nitro cold brew. What’s more, 13 percent of coffee drinkers over the age of 21 say they would be interested in alcoholic cold brew coffee.

 

“Despite the fact that cold brew has revolutionized coffee house menus and garnered increased media attention due to its popularity, the average consumer is not highly engaged with iced coffee or cold brew. This is likely due to consumers preferring to buy cold brew coffee at coffee houses and other foodservice retailers, as well as reserving cold brew coffee for the occasional treat rather than incorporating it into their daily routines. This highlights that while foodservice and retail coffee markets may be competitive, they are intertwined as consumers are typically exposed to new coffee products in foodservice, resulting in product development and innovation in the retail space,” said Megan Hambleton, Beverage Analyst at Mintel. “Innovations such as alcoholic cold brew could broaden usage occasions, driving more frequent consumption at night, and ultimately encouraging at-home consumption more often.”

 

Finally, the single-cup coffee market, while widely popular in recent years, is now slowing down as nearly one in five (17 percent) coffee drinkers agree single-cup coffee pods are bad for the environment and one third (34 percent) say single-cup coffee pods are expensive. These negative perceptions could be affecting sales given that retail single-cup coffee sales grew just 3.7 percent 2016-17 to reach $4.5 million, compared to 5.6 percent growth the year prior. Looking at the market overall, total retail sales of coffee in the US have slowed, with just 2.5 percent growth 2016-17, down from 2.6 percent growth the year prior.

 

“The overall retail coffee market enjoyed strong growth between 2012 and 2015, primarily driven by increased availability and interest in single-cup coffee and consumers buying single-cup coffee makers for their homes and offices. However, as market penetration of single-cup coffee makers has become more saturated and less people are purchasing new single-cup coffee makers, the segment has begun to stabilize, ultimately resulting in slowed growth of the coffee market as a whole over the last two years,” concluded Hambleton.

Restaurant Recruiting Changes

RestaurantOwner.com released the results of their 2017 Independent Restaurant Recruiting Survey. The report summarizes input gathered from over 400 independent restaurant owners and operators regarding their proven recruiting practices.

The days of the Help Wanted sign are numbered. Only a third (34 percent) of independent restaurant owners reported using signs placed in their restaurant to announce job openings. Instead, resourceful restauranteurs are turning to technology in their search for new talent, with 57 percent indicating that they use internet classifieds, 56 percent social networks, and 44 percent internet job sites in their search for new talent.

Despite technology-based solutions, word-of-mouth is still the best recruiting tool. An overwhelming majority (86 percent) of independent restaurant operators rely on employee referrals to find new team members. And when asked where they found the best employees, 48 percent responded with employee referrals.

Surprisingly, only 26 percent of respondents had a formal referral program. For independent restaurants that rewarded successful candidate referrals, employees typically earned $100 per referral once a referred candidate was employed for 90 days.

A positive restaurant culture (48 percent) was the most cited response to, “What’s the #1 reason people want to work in your restaurant?” Culture was more important than a desirable schedule (8 percent), the need for a job (10 percent), and even good pay/benefits (22 percent). Despite this, only 39 percent of respondents included information about their restaurant culture in job postings.

The two most cited hurdles currently faced by independent restaurant operators are a lack of qualified applicants (78 percent) and competition for employees (44 percent). Savvy restaurateurs shared that they overcame these hurdles with continuous recruiting, employee referrals, and by actively recruiting the employed.

A copy of the report is available here.

  Distinct Attitudes and Behaviors of the First Native Digital Generation: Generation Z

IRI®  announced initial findings from an ongoing study into the shopping attitudes and behaviors of Generation Z (aged 21 and under), providing manufacturers and retailers valuable insight into how to effectively communicate and activate with this new generation of consumers. Gen Z is just beginning to form their shopping habits, brand loyalties and purchase preferences, and as their influence and actual purchasing power grows, IRI’s findings show that manufacturers and retailers will need to adjust their marketing strategies to meet the distinct behaviors of this new generation.

“It is clear that Gen Z will be different from millennials and the generations before them on many levels — on top of being the most culturally diverse shopper population to date, Gen Zers are already forming unique purchase motivators and preferences,” said Robert I. Tomei, president of Consumer and Shopper Marketing and Core Content Services for IRI. “It will be critical for manufacturers and retailers to have a deeper understanding of these young shoppers as they gain influence and purchasing power, and leverage the power of personalization to reach them. With our sophisticated data-based solutions that consist of millions of shoppers and attribute-specific insights, IRI is uniquely positioned to help marketers activate against the diverse and powerful Gen Z market.”

The emerging research from IRI’s ongoing study helps describe the distinct characteristics that differentiate Gen Z from previous generations. Initial survey findings of those aged 14-21 include:

Brick & mortar holds its own against online. Gen Z sees both brick & mortar and online retailers being equally able to deliver the brands they want — a large product selection, low pricing and enjoyable shopping experiences.

Social media plays a far bigger role in influencing Gen Z purchase decisions than pricing or discounts. Gen Z is two to three times more likely to be influenced by social media than sale or discount pricing when making purchasing decisions, making them the only generation to be more driven by social media than price.

Ease of the shopping process has substantial influence. Gen Z is more likely than any other generation to choose a retailer based on how easy it is to find what they want, including millennials.

It’s not just a price game for Gen Z. The ability to find what they’re looking for in the store is as important in driving retailer choices as low prices.

IRI’s survey also found that as the first native digital generation, Gen Z expects to find savings at the touch of a button. While Gen Z is still not yet doing the majority of their own shopping, more than 25 percent of Gen Z members already engage with retailer apps for discounts and promotions, compared with 33 percent of millennials. These findings confirm the digital, social-centric shopper experience Gen Z will seek out, whether shopping online or in-store.

“One of the most interesting and compelling parts of Gen Z’s social media usage is related to how much they expect to be a part of the brand/retailer conversation. Our work with Gen Z to date suggests that they reject inauthenticity and being ‘marketed to,’ but they are not against marketing and advertising altogether,” said Lynne Gillis, principal of Survey and Segmentation for IRI. “What makes Gen Z different is they see and embrace the opportunity to be influencers, whether it’s among their own circle of friends or a broader audience. This has tremendous implications for how brands and retailers engage them in the marketing and advertising process.”

Meat Substitutes Market Growth

The global meat substitutes market was valued at USD 3.20 billion in 2013, and it is estimated reach USD 5.81 billion by 2022, with a CAGR of about 7.4 percent.  The rise in demand for a healthy source of proteins and plant-based nutrients is the primary driving force of the market.

Growing health problems such as high blood pressure, heart disease, asthma, diabetes and increasing number of people suffering from obesity all around the globe have led to more and more number of individuals becoming health conscious.  The increasing health concerns about consumption of meat coupled with several animal disease outbreaks in the recent past are the significant factors stimulating the growth of the global market. In the developing regions such as Latin America and Asia Pacific increasing standard of living due to the rising disposable income have propelled the meat substitute consumption. However, per-capita consumption of meat has experienced a decline, especially in developed regions of the world in the recent past.

Meat substitutes are mainly composed of ingredients such as wheat, soy, and others. Soy-based products are amongst the most popular ones and dominates the raw material segment; Soy products accounts for nearly four-fifth of the global market. The regional market such as North America and Latin America is expected to impact positively on growing soy production in these regions. The global soy production is dominated by countries such asBrazil, Argentina, and U.S. which serve half of the global soy demand.

Tofu, seitan, tempeh, TVP, Quorn, and other soy based and tofu-based products are the superior meat substitutes. Soy, mycoprotein, and wheat based are the main ingredients for this product. Textured vegetable protein (TVP) leads the global consumption market followed by tofu based products among all the other products. Other products occupy smaller sections of the markets.

In the past few years, Europe dominated the global meat substitute market followed by North America and Asia Pacific. Increasing soy production in the United States is projected to drive the regional market. Moreover, growing population in the developing regions of the world coupled with rising convenience food demand is expected to further expand the meat substitute market in the upcoming seven years.

Key industry players are investing in research and development activities to manufacture superior quality products as well as increase their product portfolio. Archer Daniels Midland produces TVP and dominates the global market accounting for more than half the market share. Partnerships and collaborations are the major strategies adopted by leading companies to stronghold their product offerings in the industry. Major market participants include Vbites foo Ltd., Morning Star Farms, MGP Ingredients Inc., Quorn Foods, Meatless B.V, Garden Protein Internationsl Inc., Amy’s Kitchen Inc., Cauldron Foods UK and Beyond Meat.

New California Wine Tourism 

Results of a new online survey of more than 2,000 U.S. adults who recently visited California wine country were released today, offering insights to wineries and local wine associations in understanding and enhancing the experience of visitors to wineries and regions.  Commissioned by Wine Institute with support from a USDA grant and conducted by Destination Analysts of San Francisco, the comprehensive survey offers a profile of the typical California wine country visitor statewide and by region and examines their awareness, interests and behaviors.  Fielded in late 2016, the survey gathered responses from an equal number of visitors from out of state and within the state in recognition of the importance of in-state visitors to wine regions.  A California wine tourist was defined as someone who had visited a California wine region for leisure within the past three years to capture both high-involvement and casual wine tourists.

Visitor Profile
The profile of the California wine country visitor is consistent with wine drinker demographics.  The average age of visitors to California wine country is 43.9 years old, with Baby Boomers accounting for 39.5 percent, Gen Xers 21.9 percent and Millennials 36.1 percent.  The majority of visitors are married (68.3 percent), resides in an urban (45.6 percent) or suburban (44 percent) area and are slightly more likely to be female (53.7 percent vs. 46.3 percent).  California wine region visitors are well-educated and have higher incomes compared to the national average leisure traveler.

Wine Is Important to Lifestyle
More than 70 percent of California wine country visitors surveyed drink wine at least once a week with 36 percent drinking wine several times a week and nearly 20 percent imbibing daily.  Nearly 60 percent consider wine “important” or “very important” to their lifestyles and see themselves as “very knowledgeable” about the beverage.   About 30 percent have been a member of one or more wine clubs in the past three years, suggesting the potential for growth in wine club sign-ups but also serving as a reminder that while many wine tourists may not join clubs they do purchase wine from other outlets and recommend them to others based on winery visits.

High-End Travelers
Not surprisingly, California wine visitors highly value winery and restaurant experiences with three-quarters noting tastings, tours and food pairings at wineries to be “important” or “very important” and 70 percent identifying exceptional and interesting restaurants as a priority.  Nearly 50 percent stayed in luxury hotels (48.3 percent four-star, 25.6 percent five-star) versus a national norm of about 15 percent staying in the equivalent of five-star properties.  Visitors use a variety of resources in deciding which regions and wineries to visit and most often rely on word-of-mouth recommendations (62.3 percent) and general internet searches (43.9 percent).  While most California wine region trips are driven by leisure vacations (32.6 percent) or weekend getaways (26.2 percent), nearly one in ten trips (8.5 percent) is an add-on to a business or convention trip.

Satisfied Visitors = Ambassadors
The vast majority of California wine visitors were highly satisfied with their trips and extremely likely to recommend the regions they visited to others.  Over 70 percent of surveyed travelers preferred the California wine region they visited to out-of-state wine regions. About 73 percent found that the California wine region visited provided a “better” or “much better” experience.  Residents from outside of the state gave the California wine experience higher ratings than those from California.  Nearly 79 percent of travelers from other states gave a top score (8 or above on a 10-point scale), compared to 72 percent of Californians.  Finally, visits to a wine region greatly increased the likelihood of purchasing wines from that region when travelers returned home, especially among out-of-state visitors (64 percent very likely to purchase).

Sources of Information
Word of mouth was by far the leading source of information (62 percent) for deciding what regions to visit, followed by general online search (44 percent), suggesting that social media and search optimization are very important communications channels for wineries and wine regions. Interestingly, wine magazines edged out travel magazines as an information source, while printed wine region maps came out higher than both (not everything has gone digital).

Regional Differences 
The survey asked visitors to respond to a series of questions on regions they had visited in the past three years.  Based on an analysis of responses, visitors to less well-known or remote wine regions of the state most closely mirror the high-involvement wine drinker versus visitors to more well-known regions.  A higher percentage of visitors to lesser known regions regard wine as important to their lifestyles, are members of wine clubs and consider themselves knowledgeable about wine.  This likely reflects both the dedication of high-involvement wine country visitors to seeking out new regions and a larger number of casual visitors to well-known regions – areas of opportunity for both wineries and regions.

According to a Recent Study/Survey … End-of-September 2017 Edition posted first on happyhourspecialsyum.blogspot.com

Effective Employee Handbooks and Record Keeping Can Reduce Exposure and Create Better Workplaces for Restaurants

Running an efficient and profitable restaurant requires effective labor management. The restaurant owner or manager must diligently engage in two separate but related components in order to achieve and maintain better employee relations while limiting legal exposure:  documentation and consistency. 

Appropriate documentation in the workplace can take many forms, including employment applications, noncompetition agreements and accurate time and payroll records. But on a day-to-day basis, an employee handbook is perhaps the most impactful way to maintain positive employee relations. This is particularly imperative in the restaurant and hospitality industry, as employees interact with many people on many levels.  A well-crafted handbook helps employees understand workplace policies and avoid confusion that may lead to legal action should employees feel they are being treated differently or unfairly.

A well-crafted handbook helps employees understand workplace policies and avoid confusion.

Imagine a busboy or hostess is habitually late or has established a pattern of missing work without a bona fide excuse. What if one of the waitresses is fraternizing with guests or the chef creates a tyrannical atmosphere in the kitchen?  The restaurant owner or manager terminates his or her employment, and the employee then claims discrimination.  The employer’s ability to defend the claim will hinge, in large part, on documentation and consistency. 

Every restaurant, from small diners and coffee shops to more elegant or expensive establishments, should have a signed acknowledgment from all employees that confirms he or she received, read and understands the employee handbook, which clearly articulates the restaurant’s rules of acceptable behavior and established policies, and that violations will not be tolerated and may lead to termination.  Ideally, the employer has documented every tardiness, unexcused absence or other violation.

However, even that might not be enough to defeat a discrimination claim if the employer has not consistently applied its rules.  Suppose the frequently tardy and absent hostess is the only Jewish employee.  And further suppose there are two non-Jewish servers who were also guilty of habitual tardiness and unexcused absences.  If the restaurant fails to consistently apply rules and discipline to the other two employees, then it will be far more difficult for the employer to defeat the claim of discrimination. 

Clearly and consistently applying workplace policies and expectations can avoid claims of arbitrary enforcement or, worse, discrimination. By treating similar situations in a uniform manner and maintaining employee documentation throughout the restaurant – commendations and discipline alike – the owner creates a pattern of practice not easily pierced by individual claims of disparate treatment.

Fostering Workplace Congeniality

A well-written employee handbook and consistently-applied company policies don’t just help avoid lawsuits or claims of discrimination in the restaurant and hospitality industry. The staff, from back office people to waiters, busboys and shift managers, appreciate consistency and knowing what to expect.   Setting forth rules in an employee handbook and regularly enforcing those rules can create a more congenial workplace.

Put another way, employees like working for a company that has its act together.

Thinking of creating an employee handbook for your restaurant? It doesn’t have to be a “book,” per se, but a booklet or collection of company rules, policies and procedures.

What belongs in the handbook? Rules and guidelines on employee performance, annual reviews, disciplinary policies, and timekeeping and payroll practices make clear the restaurant’s policies and its expectations of its workforce.

It should include safety and accident rules and policies regarding confidentiality, conflicts of interest, moonlighting, or other outside work.  These are common in the industry, and the restaurant owner should be upfront about the expectations of, for example, a server taking on outside business to augment his or her income.

A handbook might also include company dress code (especially when specific clothing or uniforms are required), paid time off policies (vacation and sick time), holiday observances, and even whether, and how often, “smoking breaks” are allowed. Weather related issues should also be addresses – i.e. how and when the company will respond in the event of a hurricane, tropical storm, or blizzard.

The handbook should definitely address overtime and the classification of employees as exempt or not exempt from overtime entitlement, as well as health insurance and other benefits. It should also address the tip pool and how that works in this particular establishment.  In light of the proliferation of technology, many handbooks now contain policies regarding the company’s computer system and employee use of mobile devices.

There is no statute which expressly requires a “handbook.”  However, there are workplace laws, such as the Family and Medical Leave Act (“FMLA”), which obligate employers to set forth certain policies in writing, and an employee handbook is the ideal place to identify and disseminate those policies. Restaurants are no exception.  Moreover, every employer should have an equal employment opportunity policy and an effective anti-harassment policy.

A Word of Caution

Restaurant owners should consult with a labor and employment attorney about preparing or reviewing an employee handbook. Owners may know how to run a restaurant, but the numerous issues that may arise when dealing with employees are often items they never even considered. Consultation with a professional will help ensure the handbook includes what it should, but it will also help avoid language which could create legal liability.  In recent years the National Labor Relations Board (“NLRB”) has taken a very aggressive position against policies it believes infringe on employees’ protected right to engage in “concerted activity,” which means employees taking action for their mutual aid or protection regarding terms and conditions of employment.  The NLRB’s enforcement efforts – which are directed to both unionized and non-unionized workforces, including restaurants – have frequently focused on policies which, on their face, appear reasonable to many employers.  For example, the NLRB has attacked social media policies which limit what employees can say about their employer online; policies which limit what employees can share with each other about their compensation; and policies which limit the taking of photos or videos at the workplace.   

Conclusion

Once a restaurant owner has an effective handbook in place, he or she – through the human resources director, hiring manager or other centralized department – must make sure its use becomes routine. Every new hire from janitor to executive chef must be provided the handbook and an opportunity to ask questions. The employee can keep the handbook as a reference tool throughout the employment relationship, while the restaurant ownership maintains the signed acknowledgment in the employee’s personnel file. 

The employee then goes about doing his or her job. And the employer goes about applying and enforcing the rules in the handbook clearly, consistently, and with appropriate documentation – and less risk of undue exposure.

Effective Employee Handbooks and Record Keeping Can Reduce Exposure and Create Better Workplaces for Restaurants posted first on happyhourspecialsyum.blogspot.com

MRM’s Daily Bite: The Chicken News Edition

MRM News: Energy Efficient and Even Cooking

Baxter, which produces durable baking and cooking equipment recently introduced its first ENERGY STAR certified rack oven. The Baxter OV500G1EE, built with a unique airflow system, was designed to control heat so that it is dispersed evenly from top to bottom of the oven. This results in thorough, even cooking of everything from breads and pastries to meats and casseroles.

This MRM News clip details the features of this rack oven for restaurateurs. 

MRM News: Energy Efficient and Even Cooking posted first on happyhourspecialsyum.blogspot.com

MRM EXCLUSIVE: Tips for Becoming a Successful Restaurant Host

For a host, it’s important to make a good first impression on each customer. The few minutes a host spends welcoming a guest to the restaurant will set the rest of their team up for success. Although this article focuses on best practices for hosts, the following tips can improve workflow for employees in every part of a restaurant.

 

Anticipate Your Guests’ Needs

 

In every role, it’s a good idea for employees to arrive at work five to ten minutes early to prepare for the day. This is doubly true for restaurant hosts. They should arrive at the restaurant early enough that they can review the reservation list before guests start to arrive.

 

If your restaurant utilizes a guest management platform, hosts will automatically have access to all the details they need about reservations and digital details about the guests. The data in your guest management software will also include names, food allergies, and special event types so every guest can receive VIP treatment, even from a brand new employee.

 

Guest Management software is critical if you want to keep waiting customers engaged while they wait to be seated. Give them the freedom to explore nearby, go for a walk, or relax at your bar until your app automatically texts them that their table is ready. Many modern guest manager apps also take reservations, which allow guests to get in line with the app before they even arrive.

 

Know When It’s Time to Get Busy

 

Every restaurant has a unique rhythm. And the host, like a drummer, is in charge of keeping time so everyone on the team can move forward together.

 

If your restaurant is using a point of sale system then you may already have data to tell you what times of day are busiest, and when you tend to be overstaffed. This empowers hosts to prepare for each hour of the day, and make sure they take breaks only when appropriate.

 

Peak and off-peak times are different for every type of restaurant: if run a popular brunch spot, your golden hours will be different from those at a nightclub.

 

By using guest management integrated into your point of sale systems, you and your hosts  will also be able to make long-term predictions about the flow of business. For example, if most of your clientele are college students, you may see some drastic changes between summer and fall. Knowing what to expect creates more time for managers to schedule accordingly and employees to pay personalized attention to every customer.

 

Go with the Flow

 

Modern technology empowers hosts to stay in constant contact with the rest of the staff – without ever leaving their stand unattended. Customized digital floor maps give employees a bird’s eye view of each table’s status in real time. By keeping an eye on the dining room and staying in touch with servers, employees can ensure great pacing for every meal, so that no diner leaves feeling rushed.

 

Hosts who keep up with the flow can increase the number of table turns during each shift. Using guest management software to predict wait times will improve the speed and accuracy of this process. That translates into more revenue for your restaurant! Better service also improves tips, which impacts your team members directly, improving staff morale and loyalty.

 

Presentation

 

Studies have shown us that 55 percent of communication is nonverbal. As the first person a customer sees when they come into your restaurant, it’s the host’s job to make everyone feel welcome.

 

Even if a host is busy in a different conversation, they should try to acknowledge each guest as they walk in the door. Train your hosts to make eye contact, give a warm smile, and say hello if at all possible. Also, make sure they dress for success – and know that this means something different in each work environment. Attire most likely would change if you’re greeting PBR drinkers at a dive bar versus wine connoisseurs at a 5-star hotel.

 

The Host with the Most Preparation

 

At the end of the day, hosting is a game of anticipation and preparation. These rockstar employees have to know what guests want, and know how to give it to them quickly. Most important of all, they need to do it with a smile, letting diners know that their experience matters.

 

If your host is juggling several things at once –  accepting reservations on pen and paper, answering phones, and trying to greet customers waiting in line – they’re sure to have more difficult encounters than if you had the technology to streamline these tasks. As the restaurant operator, it’s up to you to give them the tools they need to provide the best possible service.

 

Being a restaurant host may seem simple – and it is certainly a fun and rewarding job. As the literal face of the business, hosts are a vital part of the dining experience. Make sure your restaurant’s hosts are properly trained to make a positive impression on each guest, so they’ll keep coming back not just for your food, but for your hospitality as well.

MRM EXCLUSIVE: Tips for Becoming a Successful Restaurant Host posted first on happyhourspecialsyum.blogspot.com

Metrics Every Restaurant Owner Must Pay Attention To

Every restaurant wants to find and capitalize on best practices—and, every restaurant operator knows that it takes analyzing data to increase efficiencies. There are a lot of operational KPIs—from break even point to cost of goods sold—that operators must calculate each month. But, it’s equally important to track the metrics that affect your diners’ experiences at your restaurant, like wait times, popular menu items and seating efficiency. These metrics are important to your bottom line and are too often overlooked because of the tedious manual calculations that can come with them, but it doesn’t have to be that way. Using the manual or automatic calculations detailed below, you can create reports that allow you to keep track of and make positive impacts on this data.

Wait Times

“How long is the wait?” It’s one of the most frequent questions your host hears every day, and the answer needs to be accurate. Quoting too long of a wait time means a guest may walk away and you lose a customer. On the other hand, if the wait time quoted is inaccurately short, you risk irritating your diners.

Restaurants often rely on their more experienced hosts to quote accurate wait times, but even at their best, the accuracy varies—especially when you add in any reservations or online wait lists.

How to calculate it: Manually, your host can calculate the number of tables that can seat the waiting party, calculate the number of people before that party who have to sit first, estimate how long each of those tables has left based on average table turn, and use that data to estimate within one-sixth of the actual wait time.

An easier option is to use a guest management tool that will automatically calculate wait times based on historical data, current table statuses, and the wait list and reservation book.

Table Turn Time

Simply put, the table turn is the time it takes for a guest to dine, from the time they sit down to the time they leave. And, whether you’re a casual dining or fine dining establishment, you need to nail down this metric and track it over time. For a casual dining restaurant, the faster your table turn, the more money you make.

Once you figure your average table turn, you can determine the contributing factors to a great table turn time and one that needs improvement. From getting the check on time to an efficient kitchen, many contributors comprise this metric.

How to calculate it: To manually calculate, identify a measurement period, then count the number of parties served during that period and divide by the number of tables used. To automatically calculate, use a guest management tool that will automate the entire process.

Your Most Popular Dishes

For independent restaurants especially, creating a great menu is no easy task. But, if you know what your customers are ordering most, you know what items you should be highlighting as favorites for them. In addition, you can identify the least popular items on your menu and either eliminate them or substitute them to identify a better performing item.

How to calculate it: Use your POS or kitchen automation solution to identify trends using historical data and reports.

Average Party Size

Your party mix lets you know a lot about your guests—for instance, whether you’re serving mostly families or couples. Using this data, you can create better marketing campaigns, better menus, and a better overall customer experience as you create service that is more tailored to the guests you see come in.

How to calculate it: Manually, tally your party sizes and divide by the total number of parties to see your percentage of each party mix. For automatic calculations, use a guest management tool that tracks the data automatically.

Seating Efficiency

How often is a party of two seated at a table that can hold up to 6 in your restaurant? Too many times, and it can cost you money and detract from the guest experience. Seating efficiency—that is, seating the right party at the right table—is important for your bottom line and important to your diners.

How to calculate it: Manually, count the number of seats filled and divide by the total number of seats. While a seating efficiency of 100 percent is most likely not possible, you should aim to create the highest percentage possible without sacrificing the guest experience. To make this easy, you can use a guest management platform that takes seating efficiency into consideration when calculating the next party to seat.

Tracking data at your restaurant is the best way to increase efficiency and boost the bottom line, but it’s also important for another reason: creating the best dining experience possible. Whether you’re tracking your metrics manually or by using the technology available, you can make a difference for your employees and your guests by taking a look at how each area is performing and updating your processes when possible.

Metrics Every Restaurant Owner Must Pay Attention To posted first on happyhourspecialsyum.blogspot.com

Upserve Serves Up Online Ordering and OpenTable Expands Guest Share Feature

Restaurant Marketing Ideas for October (Infographic)

Taco and Dessert Day in the same month? How great is October? Our friends and experts at FoodKonnekt have put together this infographic with numerous marketing opportunities for the month of October. 

Restaurant Marketing Ideas for October (Infographic) posted first on happyhourspecialsyum.blogspot.com

The Roles Culture and Benefits Play in Workplace Engagement

It’s no secret that an organization’s culture and the benefits it offers influence the engagement of its team members. In today’s economy, it’s especially important for restaurants to establish a culture and offer benefits packages that resonate well with employees, better enabling them to look at their jobs as a long-term career.

Culture plays an important role in the success of every restaurant and franchise. A great culture lays the groundwork for a great business with dedicated and engaged employees. To start, company culture should resonate with existing employees, which in turn establishes brand identity. An attractive identity will draw in better candidates and, more importantly, keep them there. The internal culture must be welcoming to new hires, and organizations should strive to engage team members from day one.

A great culture lays the groundwork for a great business with dedicated and engaged employees.

Consider offering unique incentives, which can help increase employee engagement and enhance the overall culture. Although some perks can be quite costly, they do not always have to be. The extras range from profit sharing by way of annual bonuses, to complimentary drinks and snacks, to off-site events.

Employees also value workplaces with perks that have emphases on wellness, whether it be a gym membership or brief walking breaks. Healthier employees are generally happier and willing to work harder, and they appreciate that their employers prioritize their well-being. Younger generations, especially, value workplaces that allow them to give back to the community, whether it be through company-wide days of service or additional paid time off for volunteering to a cause of their choice.

While culture and company extras are essential to engaging employees, we cannot ignore the importance of a robust benefits package. An inviting benefits package may include a 401(k), voluntary benefits (including dental and vision insurance, short- and long-term disability, group life, etc.) and employee assistance programs. When looking at the cost of implementing a good benefits package, executives should weigh the expense of employee turnover, as good benefits can keep team members around.

Paid time off is also key to keeping team members happy. Encourage employees to use this time to go on vacation or take personal health days. Providing ample time to do so will allow them to have a positive outlook on the workplace. Take a look at your plan and make sure it’s competitive within the industry. This all comes full circle as flexibility, in turn, can positively impact the overall culture. Survey your employees to gauge their interest. Research industry peers to find out what they are doing and how it’s working. Then, do what works best for your company and your team.

Employees will, of course, be engaged for many different reasons, including compensation and location. But the formula for overall high engagement levels in the workplace lies within establishing and maintaining a good culture, great benefits and a flexible environment.

 

 

The Roles Culture and Benefits Play in Workplace Engagement posted first on happyhourspecialsyum.blogspot.com

MRM @ the bar: The Belfast Cocktail at Stage Left Steak

Stage Left Steak is a passionate pioneer in the craft cocktail revolution. In this edition of MRM @ the bar, Stage Left Steak’s Co-Founder Francis Schott discusses the eatery’s cocktail program and tells the story of  The Belfast Cocktail.  

Stay tuned for MRM’s upcoming mini-documentary profile of the restaurant’s 25th anniversary rebranding effort featuring Schott and co-founder Mark Pascal. 

The Belfast Cocktail

1.5 oz Ruby Port

1.5 oz Cognac (Hennessy VS)

.5 oz Poire Williams (Purkhart)                                                                                                   

.5 oz Cinnamon Syrup*

1 dash Bitter Truth Orange Bitters

1 orange twist, as garnish

1 dash Dale DeGroff’s Pimento bitters, as an aromatic garnish

Stir over ice, and strain into a chilled cocktail glass.  Flame the orange twist and add it to the glass, and add a dash of Dale DeGroff’s Pimento bitters, as an aromatic garnish.

*Cinnamon Syrup

1 cup sugar

1 cup Water

1 cinnamon stick

Put ingredients into a pan and heat and stir till sugar is dissolved.  Continue to keep over low heat for 5-10 minutes until it becomes cinnamon-y

For more on The Belfast Cocktail, click here. 

MRM @ the bar: The Belfast Cocktail at Stage Left Steak posted first on happyhourspecialsyum.blogspot.com

Golden Corral Gets Smoky and ‘More Taste, Less Waste’

The Real Risks of Retirement Investing for Restaurateurs

To anyone in the hospitality industry on the glide path to retirement, it is becoming clear that today’s retirees are facing a completely different set of challenges than prior generations. This is the first generation in which retirees are carrying mortgages and other debt into retirement.

And the hospitality industry has its own set of challenges. According to a PEW report, a mere 34 percent of companies in the leisure and hospitality industry offer retirement plans, with a paltry 23 percent of those with access to such plans actually participating. Other reports cite problems for boomers in the hospitality industry who had their retirement plans put on hold due to the recession, in that these folks are looking for ongoing work even in physically demanding roles that they may not be equipped to fulfill.

Adding to the complexity, health care costs are expected to eat an ever increasing piece of the retirement budget. As well, an increasing number of those entering retirement are sandwiched between the needs of their financially-troubled adult children and their aging parents.

In view of the increasing costs of retirement, the traditional notion that retirees will only need 70 percent of their working income could very well be a dangerously misguided assumption.

Add in Longevity Risk

Compounding these challenges is longevity risk, which wasn’t much of a concern for prior generations. While most people may understand they can expect to live longer, few realize that life expectancy is constantly expanding, meaning that the older you get, the greater you can expect to live. Today, there is a one in four chance that one of the spouses of a 65-year old couple will celebrate their 95^th birthday, and it is more than likely to be the wife. The greater risk is that few 65-year old people fully grasp the enormity of this risk.

The risk of longevity is further compounded by the risk of inflation. Even at an average inflation rate of 3 percent, the cost of living will double in 20 years which could put many retirees’ life style in jeopardy. Any resurgence of inflation to the levels seen in past decades could have a devastating impact on the lifetime income value of your assets.

Add in the Risk of Investing too Conservatively

For many people, the further they move down the retirement glide path, the greater the temptation to invest more conservatively, which is understandable. However, tilting your allocation towards conservative investments too quickly can expose your financial security to a much larger risk, which is the loss of your purchasing power at the time you really need it.

The chart below illustrates the erosion of purchasing power on earnings generated from an investment in 10-year Treasury Bonds. The decade of 2000 – 2009 had one of the lowest rates of inflation, as measured by the Consumer Price Index, in the last 30 years, yet purchasing power on the earned income was reduced by 25 percent. It is important to note that the CPI, which is the official government measure of inflation, doesn’t include food and gas prices which have increased at rate three times the CPI over the last couple of years. If food and gas prices were included in the CPI, the rate of inflation would be closer to 10 percent, and, at that rate, the net purchasing power of earnings in ten years would be less than the initial investment, meaning you would have lost money.

Investing your money in safe or guaranteed instruments may provide peace-of-mind that you won’t lose any money due to market fluctuations; however, each day that your returns fail to exceed the rate of inflation, you are, in effect, losing money, and that loss becomes more pronounced over time.

Conservative Investing is about Managing All Risks

There are ways to invest conservatively that can reduce portfolio volatility while addressing the risk of inflation. The key is in knowing what your financial objective is in real terms by factoring in the true cost-of-living and taxation. Once you know the real rate of return that must be achieved to provide lifetime income sufficiency, a diversified portfolio of equities and fixed-income securities can be constructed to match your particular risk profile With an investment strategy tailored to your specific needs and objectives, you need not take any more risk than is absolutely necessary to achieve your objective. A well-conceived investment strategy focuses on managing the risk and volatility of your portfolio; your job is to stay focused on your objective.

The Real Risks of Retirement Investing for Restaurateurs posted first on happyhourspecialsyum.blogspot.com

The Impact of Humor in QSR Advertising and the ‘Pestaurant’

MRM’s Daily Bite features an intriguing study on guest habits, a steakhouse’s big anniversary and a popup with an ‘insectersting ‘twist.   Send news items to Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com.

Advertising’s Impact on QSR

A poll from LAVIDGE and Mosaic Multicultural found insightful consumer views about advertising from quick service restaurants such as McDonald’s, Subway, Chipotle, Taco Bell and several others, as well as from casual and fine dining restaurants. Among the key findings of the “2017 Southwest Food Service Marketing Report” are that consumers prefer images of food as well as promotional offerings, and are influenced to make decisions when they see and hear advertising that is humorous.

Additionally, consumers strongly resonated with friendly customer service and ads that included the words “tasty” and “delicious.”

LAVIDGE has compiled results that will put an end to guessing what drives consumer response. This includes how advertising affects the frequency of consumer visits, the most effective and ineffective restaurant descriptions, highest preferred marketing statements and most memorable advertisements.

The findings determine several behaviors about the way consumers respond to food service ads:

• Most frequently visited restaurants/QSRs have the best advertising
• The top three descriptions that influence consumers to visit a restaurant are tasty, friendly and delicious
• The highest preferred marketing statement is “Made Fresh Daily”

“With the highly competitive and growing food service industry, this is the ideal time for marketers to understand how to successfully communicate and get their message across to consumers,” said Tim Trull, managing director of strategy at LAVIDGE.

 

LAVIDGE has compiled results that will put an end to guessing what drives consumer response. This includes how advertising affects the frequency of consumer visits, the most effective and ineffective restaurant descriptions, highest preferred marketing statements and most memorable advertisements.

The findings determine several behaviors about the way consumers respond to food service ads:

• Most frequently visited restaurants/QSRs have the best advertising
• The top three descriptions that influence consumers to visit a restaurant are tasty, friendly and delicious
• The highest preferred marketing statement is “Made Fresh Daily”

“With the highly competitive and growing food service industry, this is the ideal time for marketers to understand how to successfully communicate and get their message across to consumers,” said Tim Trull, managing director of strategy at LAVIDGE.

LAVIDGE and Mosaic are full-service advertising, public relations, communications, consulting, interactive and multicultural marketing agencies headquartered in Phoenix. WestGroup Research conducted the poll and surveyed 531 consumers from throughout the Southwest, providing original insight for food service executives on specific tools and tactics to market their services effectively.

The LAVIDGE/Mosaic 2017 Southwest Food Service Marketing Report is complimentary and available here.

MealPal Secures Investors

MealPal, the subscription service for lunch pick-up from restaurants, secured a $20 million Series B investment. This round of funding, led by Menlo Ventures, brings MealPal’s total funding to $35 million since its January 2016 launch. The financing is in tandem with the company’s other major announcement today: MealPal has expanded its service from lunch pick-up to include dinner starting in New York City.

“MealPal has only begun its mission to help people eat intelligently by providing a convenient way to get a delicious meal at an affordable price whether at the office or at home,” said Mary Biggins, co-founder and CEO of MealPal. “MealPal has helped thousands of people upgrade their lunch break by skipping long restaurant lines and getting lunch for as little as $6. Now we’re excited to bring this quality, affordability, and efficiency to dinner.”

Similar to its lunchtime service, MealPal is offering New York City members two different subscriptions for dinner: a 20-meal plan for $6.49 per meal and a 12-meal plan for $6.99 per meal. With a subscription, MealPal members can select dinner from hundreds of restaurants on the platform and enjoy delicious meals that typically retail for $9-$15 at a fraction of the cost. Dinner service coincides with the expansion of MealPal’s New York footprint to include the Upper East Side, the Upper West Side, Murray Hill, and the East Village. Since its launch in 2016, MealPal has served more than three million lunches and expanded to 12 markets, most recently Manchester, U.K. and Melbourne, Australia.

“MealPal’s unique pick-up model is shaking up the food service industry, improving mealtime for both consumers and restaurants alike,” said Venky Ganesan, managing director at Menlo Ventures and MealPal board member. “Their lunchtime success and ability to secure such a large subscriber base in a short amount of time gives us full confidence in their expansion into dinner and into further cities globally. We are thrilled to partner with Mary, Katie and the team as they continue to thrive in this competitive space.”

Previous investors, including Bessemer Venture Partners, Comcast Ventures, Haystack Partners, and NextView Ventures, all participated in this new round. The new funding will support further team and market expansion in the United States, United Kingdom, Canada, and Australia, as well as new markets throughout Europe, in the next several months.

“MealPal has helped us increase our lunchtime revenue at lower labor costs with improved margins,” said Nabeel Alamgir, CMO of Bareburger. “Our guests love this service because they can order ahead, skip the line, get an affordable meal, and have more time to enjoy their lunch break. We’re excited to offer them the same benefits now for dinner, too.”

 

Smith & Wollensky Celebrates 40th Anniversary 

The Smith & Wollensky Restaurant Group, Inc (SWRG), a collection of American steakhouses headquartered in Boston, MA, is celebrating 40 years as America’s classic steakhouse this October. The original Smith & Wollensky location opened in 1977 in New York City. Described by the New York Times as “a steakhouse to end all arguments,” the brand has expanded to nine locations, including Boston, Chicago, Columbus, Houston, and Miami Beach, as well as their first international location in London.

“We are proud to celebrate 40 incredible years as “America’s Steakhouse,” said Michael Feighery, CEO and president of Smith & Wollensky Restaurant Group. “From the beginning, Smith & Wollensky has exemplified an unwavering commitment to quality, integrity and hospitality. Our team is dedicated to delivering the best steakhouse experience in the country and abroad –  and we are proud of the esteemed relationships we have created over the years to honor our charm, iconic reputation and thriving growth.”

To commemorate four decades, the team at Smith & Wollensky will take guests on a journey with a special “Then & Now” presentation of a dry-aged USDA Prime New York Strip, offered in classic and contemporary preparations throughout October. 40 years ago, the New York Sirloin was the cornerstone of the classic Smith & Wollensky experience, and to rejoice in four decades of serving high quality steaks, the team will bring back a nostalgic version of this cut from the original menu with a twist: 18oz. with a unique 40-day dry-aged preparation, presented larger in size than the traditional. The classic steak will be simply broiled, served with creamed spinach, roasted mushrooms and buttermilk onion rings – three classic sides still adorning the menu today.

Corporate Executive Chef Matt King has also created an elevated “now” take of this popular steak that highlights the evolution of Smith & Wollensky, with a more composed, seasonal presentation of this same 18oz. 40-day dry-aged USDA Prime New York Strip, featuring mountain bleu cheese and foie gras spinach fondue, king trumpet mushrooms tossed in truffle honey, and sweet potato fingerlings. Each steak presentation is offered at $77, in honor of the year 1977 when the first Smith & Wollensky location opened. 

As part of the anniversary celebration, the steakhouses will also feature premium wine and whiskey offerings that are well aligned in their own history, heritage and longtime presence as part of the “America’s Steakhouse” dining experience, including Robert Mondavi Winery and Woodford Reserve. Celebrated as a pioneer in the world of California wine, Robert Mondavi’s signature cabernet wines have been a longtime favorite among Smith & Wollensky guests as a superior steak-pairing wine.  The Oakville Cabernet, from Mondavi’s To Kalon Vineyard, will be featured by the glass and bottle at special prices, for a limited time. The steakhouses will also feature Smith & Wollensky 40th Anniversary branded Woodford Reserve Bourbon bottles and specials, including an anniversary Woodford Reserve Rye crafted Manhattan cocktail, barrel-aged in-house for over 30 days.

Yang’s Braised Chicken Rice Celebrates Grand Opening in United States

Yang’s Braised Chicken Rice, the Chinese brand with a singular menu item, opened its doors to the brand’s first U.S. location in Tustin, CA  on Sunday, Sept. 10.

“This grand opening is a milestone for Yang’s Braised Chicken Rice, marking the first time we’ve been able to share our signature Huang Men braised chicken and rice with American customers with an incredible response,” said founder Xiaolu Yang, who opened the first Yang’s Braised Chicken Rice in China in 2011. “We know locals were initially stunned to learn our menu only has one item, our signature braised chicken dish prepared three ways—regular, authentic (most popular) and spicy. Now that they’ve tried it, we know our new fans understand why one dish has been the engine behind our expansion into the United States!”

The grand opening event drew more than 400 guests, including representatives from the Chinese Consulate, Tustin City Council members and local foodies who had registered online to reserve a space at the event, all to try the brand’s signature braised chicken and rice for the first time in the United States.

At 1,500 square feet, the Tustin restaurant has seating for 40, initially serving 200 portions of the braised chicken and rice dish for the day. All orders are first-come, first-serve, as the restaurant is not accepting call in orders or reservations. In order to ensure as many guests as possible can be served, there is a one order per person policy during the limited serving period.

The restaurant’s single menu item got its start when Yang’s grandmother acquired the secret recipe for the sauce and began serving it at the family’s many well-known independent restaurants. With years of culinary training under his belt, Yang began lovingly adapting the sauce of the braised chicken recipe and added rice before launching it at his fast casual restaurants in 2011.

 

“With the wildly successful launch of our first U.S. location, we are well on our way to developing a significant footprint in the United States,” said CEO of the U.S. group, Xinyu Zhang. “We look forward to launching our franchise network and spreading our home-cooked, taste-of-childhood flavors throughout more communities in California and the nation.” 

While the majority of locations in China are owned by multi-unit franchisees, the Tustin restaurant is owned and operated by the corporate team. The brand aims to start signing deals with qualified franchisees to bring the brand to targeted markets throughout California, New York, Chicago and San Francisco within the next year.

The Popup ‘Pestaurant’

Ehrlich  seeks to show that pests do not have to be feared – people can also enjoy them in delicious culinary creations. On September 26, Ehrlich will host a free pop-up “Pestaurant” at the Pratt and Light Plaza in Baltimore, Maryland at MD-2 & E Pratt St, Baltimore, MD 21202, between 11:30 a.m. and 3:30 p.m. Passersby will have a chance to sample a variety of dishes created especially for the event by the Eleven Courses Catering & Event Company, including June Beetles Encrusted Croquettes, Fried Cricket Crostini, Maryland Mealworm Crab Cakes, and Grasshopper Bark. As September is Hunger Action Month, “Pestaurant” will serve as a reminder of the issue of food insecurity – or the lack of access to healthy foods – and importance of considering a variety of food sources. In support, Ehrlichwill be making a donation to benefit the Maryland Food Bank and the organization’s ongoing, local initiatives.

The objective of “Pestaurant” is to raise awareness and to show that pests, while often feared, can actually contribute towards a healthy diet. While people tend to only look for preventive options to guard themselves from insects, they should also consider that pests are high in protein, zinc and calcium. “Pestaurant” offers attendees the opportunity to sample unique dishes, partake in the popular cricket eating contest and take “Pest Selfies” for a free and fun experience.

“‘Pestaurant’ has been very well received in the past, with activations across the country for attendees who are excited about the unique opportunity to be adventurous and try cuisine, infused with pests,” said Mischelle Ambrosio, Ehrlich Baltimore District Manager. “We are thrilled to bring this event to Baltimore and to offer the community the fun experience to pile their lunch plate with pests on Tuesday, September 26.”

The Impact of Humor in QSR Advertising and the ‘Pestaurant’ posted first on happyhourspecialsyum.blogspot.com