Is Dynamic Pricing Right for Your Restaurant Brand?

More restaurant operators are taking advantage of dynamic pricing, which is the process of adjusting prices based on customer demand. While relatively few U.S. restaurants have adopted this new approach on a day-to-day basis, many operators are wondering if it might have merit for their operations.

A few restaurants have been successful in executing dynamic pricing as a core part of their strategy, with the most well-known being Chicago restaurant Next, which opened in 2010. The restaurant is consistently rated one of the top 10 in Chicago, and sells reservations in advance online with prices that vary depending on the day and time. For example, a Friday 5 p.m. reservation might tie to a $185 charge per person, while a 5:45 p.m. reservation on the same day may be $195. As the night moves into the most popular timeframes, the reservation price increases.

Here are three things to think about as you consider a pricing strategy:

Before You Seek a New Approach Outwards, Look Inwards

Increasing amounts of customer data are available through loyalty programs and advanced point-of-sale systems. With this data, operators can more easily and more accurately gain real insights into who their customers are and what how they purchase. Taking the guesswork out of restaurant pricing enables operators to develop price strategies that increase profitability through increased traffic and/or increased spend per head.

Make Sure Your Pricing Approach Matches Supply and Demand

In any industry, the idea behind dynamic pricing is to create more demand during slower times through reduced pricing, and to capitalize on the demand at busier times through increased pricing. 

As an example of a dynamic pricing approach, an operator that is experiencing a small lunch crowd on a Wednesday could deploy a dynamic pricing initiative and send a promotion to new and existing customers through digital channels (email blasts or social media posts) and third-party delivery partners. 

 It Always Pays Off to Be Responsive to Data and Create a Plan

To create a successful dynamic pricing strategy – or any pricing strategy, for that matter – it’s important to put in the time, energy and financial resources to analyze customer data and then create a plan.

However, since applying a dynamic pricing approach is data and labor intensive, and requires daily or weekly maintenance, this may not be the best fit for all restaurant brands. Therefore, alternative price strategies such as ‘bundling’ or ‘discounts’ can be more practical.

Could the “date night” couple (ordering an appetizer, two main courses and two drinks) be encouraged to eat or drink more? Are there changes to the menu (bundling or other discounts) that can be made on a Monday evening that can increase the date night couple’s frequency of visits from once every three months to once a month?

Eventually, digital menus will become the norm for restaurant companies of all sizes, specifically in the QSR and fast casual space, allowing operators to make instant changes to pricing according to supply and demand.

If the decision is made to implement dynamic pricing strategies, managers must be trained to play to the strengths of the model and react quickly when needed. With the best strategies in place, every restaurant will be ready to push meaningful offers to the right people at the right time.

 

Is Dynamic Pricing Right for Your Restaurant Brand? posted first on happyhourspecialsyum.blogspot.com

Simple Math: How Small Restaurants Could Earn More By Using Online Reservations

It’s rare for a restaurant to have no trouble keeping up in the market, where the competition is so intense. Caring for customers has never been so important, especially for small restaurants that rely mainly on loyal repeat-clients. Every lost customer can be calculated into the restaurant’s losses.

Some deciding factors in if a customer returns or if a new customer tries your business can vary, but it’s widely agreed: ease and convenience are important. If a potential customer could not get in contact with your administration, or if they forget about their reservation – this is a loss to you. After 20 or 30 similar cases, the loss can impact the restaurant owner’s salary. So, how can you use simple math to boost revenues by using an online reservation system?

Let’s rely on the true story of one Italian food trattoria, Piccola Italia,  a 12-table restaurant, which has a great chef, cozy Italian interior, and is conveniently placed in the city center. The small restaurant was popular among local businessmen and Italian food fans. Despite its growing success, it experienced many empty time slots and problems related with customer attraction. That is, until it started to use an online reservation system.

The restaurant owner, Alan, sought to find new information on how to attract more customers. He understood that the restaurant should be more desirable for the busy locals, as well as tourists from other cities and countries. An online booking system might be an answer, so Alan decided to try a system designed specifically for small restaurants.

This 12-table restaurant is now filled more efficiently and, as a result, earns more. How much?  Here are the simple calculations of this trattoria:

No-Show Customers Convert Into Losses

The first big problem this restaurant faced was “no-show clients.” As this was a routine issue, the calculations are simple: If there are 10 no-shows a day, and the average value of each missed table is 20-50 euros, this costs the restaurant 4,800-12,000 euros a month in lost revenue. That is an extreme amount for a small restaurant! Integrating the Tableinreservation system helped them to save a part of these losses.

Using an online reservation system, now the restaurant can send emails and text messages to clients with links to cancel or change a booking. Also, Alan explains that his restaurant sends an SMS to those who did not arrive with a shameful text. Asking for deposits from clients during holidays or events resulted in a further decrease of no-shows. Overall, the restaurant decreased their no-shows by 23 percent, which is converted into approximately 2,500 euros per month in revenue.

Maximize Space During Lunch and Dinner Times 

Everyone who manages restaurant reservations knows that most of the clients want to come at 19.00 o’clock, so the restaurant mostly has 1 or a maximum of 1.5 turns per evening. A small kitchen has a huge load when most of their clients arrive at once and orders begin to flow.  While using paper books, you accept most bookings in an advance of one hour, so you form a lot of time gaps – resulting in empty tables. A digital reservation system lets you use time templatesand then schedule reservation times to get 2 and 2.5 turns per evening.

So, Alan’s restaurant capacity at busy times increased by about 50 percent. Getting rid of gaps saved about 20 covers per day, meaning about 400-800 euros a day. Finally, the kitchen load decreased, as clients came at split times thanks to a better scheduling system. It was no need for extra staff at busy times.

Save Time and Money in Administration

In our example, the small Italian trattoria, they would receive a large amount of phone calls and e-mails with booking requests during the week. It is joyful news – until you understand that you will lose many reservations when the staff is busy answering calls or emails, or when they’re unavailable because the restaurant is closed.  

After beginning to use a restaurant booking system, the “Piccola Italia” added an online widget to Facebook, as well as their website, and started to promote online reservations, asking people to book online in every single message. Now the restaurant has approximately 63 percent of their bookings online. The greatest benefit is the restaurant no longer needs to keep administrators, because the waiting staff is fully responsible for the bookings. Everyone can book. Everyone can check in from any location, even when the business is closed. The restaurant can save one or two salaries for the employees per month.

Filling Your Slow Hours Can Add Extra Revenue

Even if you solve the major problems, one issue remains: your restaurant probably has slow hours between dinner time and the evening. Accordingly, the restaurant owner Alan started to offer discounts and some freebies for clients who came in during these slow hours. It is very easy to set up and schedule, because, each day, the database of restaurant customers is growing. Alan, for example, proposed 30 percent off pizzas as well as free dessert and coffee for later orders. Promotional offers increased reservations on an average of 47 percent.

Also, the client database provides a visit history, list of cancellation numbers, a calculation of no-show clients, and a name database to help restaurant owners recognize loyal clients. Alan integrated a small loyalty program with a discount for loyal clients – giving five percent off after five visits, 10 percent after 10, and 15 percent after 15 – automatically. Clients do not need to have one more loyalty card in their wallets; this system does it for them.

The Results

The “price per client” of an online reservation system, on average, is five cents. However, decreased no–shows, maximized covers, and filled gaps during slow hours allow restaurants to increase their income by about 27 percent per year. Even if they have only 12 tables. Furthermore, what’s great is that system integration takes little time and know-how to use, because the program has functions which take off the pressure. It has never been so easy to optimize your restaurant reservation process and to earn more.

Simple Math: How Small Restaurants Could Earn More By Using Online Reservations posted first on happyhourspecialsyum.blogspot.com

Must-Have POS Features Every Successful Restaurant Should Use

Go beyond fleeting trends with a must-have business management toolkit that is here to stay – a reliable and feature-rich POS system.

Investment in a smart and innovative system will unify front of house, back office and kitchen operations. Specialist software features offer complete command of all areas of the business. Modern POS, or EPOS, systems are adept at streamlining a multitude of hospitality operations – from QSR to fine dining. So how do you choose the best for your business? Let’s take a look at the must-have management EPOS features and their proven benefits.

Sales Management Tools

What this feature does:EPOS systems can provide granular sales data with a full breakdown of transactions by date, location and specific tills. Many EPOS systems offer real-time reporting and integrations with popular business accounting tools such as Sage and Xero.

Key benefits:Data trends are reflected in sales reports, providing opportunities to refine your operational strategies accordingly. Remote access means you can view sales figures on the go and accounting software integrations save valuable time.

Customer Relationship Management and Loyalty

What this feature does:EPOS systems now connect businesses with your customers on a whole new level. By building your own CRM database you’ll have access to valuable customer data. Built-in features help you manage your email marketing campaigns, customise offers and personalise promotions based on customer behaviour.

Why you need it:Turning your attention to customer loyalty is paramount in hospitality – and technology is here to help. Tracking spending habits will help adapt promotions for a seamless omni-channel customer experience. According to Como, developer of white-label loyalty apps, using a customer engagement platform can increase customer spending by up to 41 percent.

We asked Michal Levitan, VP of Business Development at Como, how businesses can gain a better understanding of their customers:

“Integration between point of sale software loyalty apps provides businesses with powerful insights in their EPOS system that allow them to know their customers, personalise their experience and grow visits and spend.”

Staff and Rota Management

What this feature does:Hospitality businesses tend to have a high staff turnover so keeping track of your staff is essential. You can do this with ease using an EPOS system, even across multiple locations. A smart EPOS system will also give you insights into performance and HR budgets with granular business reports. The more sophisticated EPOS systems provide an array of customisation options, so the system is configured to your exact requirements.

Above: Example attendance tracker within an EPOS system

Key benefits: Build an organised staff database, set shift patterns, track attendance and send staff notifications – all from one system. The obvious benefits would be increased productivity and better communication with your staff.

 

Stock Management

What this feature does:One of the most important tools, however often overlooked, is stock management. This type of EPOS feature will help you keep one centralised product catalogue. You can manage stock across many locations, keep organised product categorisation. Smart EPOS systems even allow you to set up management alerts and one-click re-ordering when an item is running low.

Why you need it: We spoke with Maher Al Hajjar, Operations Director of the popular cafe franchise, Caffé Concerto Group, to understand how using an advanced EPOS system supported business expansion:

“The [3S POS EPOS] Enterprise Stock Controlmodule allowed our branch managers and chefs to have tight control on their stock levels and costs, whilst the Purchase Order Manager gave them the flexibility to order directly from suppliers offering the best and freshest produce. As an enterprise system, our procurement teams in head office are able to monitor and manage all branch activities to minimise stock costs and wastage at all times.”

 

Graphical Table Management and Reservations

What this feature does:This popular EPOS feature lends restaurants a helping hand with reservation management. The EPOS provider will build a ‘Graphical Table Layout’ to represent your exact seating arrangement. This will include accurate covers and table locations. The front facing display can be customised with multiple areas and ability to switch between them with ease. A great feature for optimising table allocation is being able to specify minimum and maximum covers and turn times for each table, so allocation can be calculated automatically.

Key benefits: Staff will be able to effectively manage customer reservations, from walk-ins and online platforms alike, and swiftly view orders for each table. This kind of feature will undoubtedly enhance communication between front of house and kitchen staff, while improving the overall customer experience.

 

Business Reports

What this feature does:A good EPOS system will give you access to valuable data and reporting tools. To make the most of these, look out for systems with customisation and file exporting options to give you the most flexibility. Business reports can be generated for any business data, from sales and marketing to HR and reservations. Many systems now offer access to your business data remotely, via a web portal.

Key benefits: You’ll be able to gain insights into trends and business performance in relation to your goals. Remote access is extremely helpful for business owners and managers who are often required to make fast, but well informed, business decisions.

 

Integrated Technologies

Lastly, you may already be using more than one business tool or platform to keep track of operational processes. Choosing an EPOS system to fit your business shouldn’t mean giving up other tools that already work well for you.

For example, if you’re a restaurant owner with a steady delivery revenue stream, you’ll want to manage all types of sales and orders from your EPOS system. Look out for systems that integrate with online ordering, driver management and popular delivery aggregates.

Ability to integrate EPOS menus with in-store digital signage boards gives you a competitive edge, as you’ll save time updating content and reduce printing costs. Ask your EPOS provider if they are able to offer this kind of service.

The hospitality sector can now benefit from these great technological innovations, driven by the need to streamline everyday business processes. Businesses that foster the shift towards digital benefit from valuable data insights resulting in sales growth, customer retention and reduced business costs.

Must-Have POS Features Every Successful Restaurant Should Use posted first on happyhourspecialsyum.blogspot.com

10 Strategies to Attract Restaurant Customers

Whether you just opened a new restaurant or want to boost your existing business, you’re probably hoping to learn restaurant strategies to attract customers. However, many of the common ways people think of to grow their business are too involved or expensive to be practical.

Ideas like taking out an ad in the local paper or paying for a spot on the radio may seem great on the surface. However, they target a very broad audience. Even worse, they are quite expensive. While they may drive some traffic, you may not recoup what you invest in advertisement expenses. Even worse, they will only work for a short period of time.

Trying to draw new business is difficult. Business owners may try many ideas that not only cost money but also prove ineffective at long-term improvement. If you hope to attract more customers to your restaurant, you also likely want to minimize the cost involved. Thankfully, there are some great ideas for how to attract more customers to your restaurant without breaking the bank.

1. Collaborate on Special Offers with Local Businesses

One issue that many restaurants run into when using specials, discounts, or other promotions to drive sales as the cost. In order to create an offer that is tempting enough to bring new customers in, you generally need to offer a pretty substantial price reduction. Many people are not willing to gamble there evening out or fun money on a restaurant they have never been to at full price.

Offering buy-one-get-one discounts and similar sales could draw in people, but it may not really bring the right demographic. Worse, you may find that you don’t actually attract repeat customers.

 

An often overlooked but great solution is to partner with other local businesses for promotions. As a restaurant, you are a perfect partner for promotion with movie theaters, entertainment venues, and other fun places, like escape rooms. If you are a pizza place, partnering with a local video arcade could be a good idea. If you are fine dining, consider working with the local civic theater.

Ideally, people can purchase dinner for two or four at a discounted rate if they also purchase event tickets. Other times, people receive a discount on event tickets if they show proof that they ate at your restaurant. Try reaching out to some nearby entertainment hot spots to see if any of them would like to share the costs of driving more business to both of your companies.

2. Offer Free Wi-Fi

Never underestimate the power of the internet. While it’s true that you should be harnessing the internet to help promote your business and streamline its operations, you should also be offering internet to your customers. It can get more people in the doors and may keep them in your business longer.

In big cities, free Wi-Fi is basically an expectation for any business that hosts customers. People will expect to be able to check their email or social media pages while waiting for their food. If you are any more rural area, having free Wi-Fi could actually make you a destination for customers. If people know they can come to you when they need to get online, that can certainly help drive business.

If you find that people are coming in and not buying anything while using your Internet, you may want to employ the strategy of offering your current Wi-Fi password for customers when they buy a food item or beverage. Changing the password regularly will help ensure that freeloaders don’t take up space that could be used by paying customers.

3. E-mail Marketing Incentives

Just because you are a brick-and-mortar business doesn’t mean you can’t use online marketing to drive sales. One of the fastest and easiest ways to build a customer database is to leave out a sign-up sheet for your newsletter. You should also include sign up links on your website and any relevant social media pages, from Snapchat to Facebook.

By offering discount codes to customers for signing up, you will drive interest in following your business. Regularly offering special sales and exclusive incentives to online followers and newsletter subscribers can also drive traffic.

Someone who signs up for your newsletter likely already has an interest in your restaurant and its menu. Offering half off of an appetizer or extended Happy Hour specials for those with a newsletter-only coupon code can help convert those digital followers to real life income.

The best way to approach this is usually to offer a higher incentive for the initial sign-up, like a free appetizer or a buy one get one free coupon for entrees. After that, more modest discounts, like 10 or 15 percent off your purchase, will also help drive sales.

4. Capitalize Your Hours

If you don’t already do so, you should track when you make the most sales. Understanding macro trends in your customers’ patterns can help you maximize your profits. Most restaurants will find that they are slower on certain days of the week, certain times of the year, and even certain times during the day.

 

You can turn those slow times into some of your busiest hours by offering specific discounts and specials. Many restaurants find that Mondays and Tuesdays are slower than other days of the week. If that is the case for your business, consider offering daily specials on Monday and Tuesday.

 

For example, Monday could be a day when you offer half off appetizers. Tuesday could be a day where you offer Happy Hour pricing for the entire afternoon. Those specials will help incentivize people to visit during times that are historically slow for your restaurant.

 

Similarly, Happy Hour discounts are often used to draw in customers at times that are usually slow for your business. Many times, this is the downtime between the lunch rush and the dinner hour. Use discounts and specials to get customers in the doors, and they will come back as long as the service and the food meet their expectations.

5. Reaching Out to Local Foodies in Your Area

As we said before, you simply cannot underestimate the power of the internet. While local gourmands and foodies used to only talk with your friends and coworkers about their preferences, now they have a much broader audience.

 

Whether they post reviews on Yelp, Facebook, or their personal blog, people with good taste and adventurous dining habits often find themselves with hundreds of followers in a short period of time. Reaching out to these people individually is a great way to use their social media influence for your benefit.

 

Offer them and a guest a free meal at your restaurant, provided that they do an honest review. You could even create a special for anyone who comes in from their review by creating a coupon code discount they can share with follows.

 

This special discount appeals both to the ego of the blogger you reach out to and to the people who follow them online. You could make hundreds of dollars in revenue off of one free set of entrees and desserts. Even better, you’ll have the goodwill of a popular local influencer and a lasting online review praising your business.

6. Start a Group

People want more from local businesses than they did in decades past. Many times, people come to physical businesses because they are seeking a sense of community. While you can achieve that to some degree with friendly wait staff and personalized service, that may not take it far enough.

Consider what your business offers to its consumers and what you represent to the local community. Explore how you could create a community or group that would benefit from your business. This is a low-cost way to drive engagement and interest in your eatery.

 

For example, if you have smoothies and freshly squeezed juice, starting a support group for a 21-day juice cleanse could be a great way to get repeat customers in the door every day for weeks. If you are an Italian restaurant, you might want to start an Italian club, where people learning the language come in weekly to practice and enjoy a glass of wine.

 

The options are as unlimited as the infinite variety of foods and cuisines available to restaurants. You can also choose to offer discounts to people who join your group, and remember that participation in the group being free will draw the most people.

7. Have an Easy to Use Online Ordering App

As a locally-owned small business, you probably worry that the expense of developing a proprietary app for cell phones and tablets is too much of an investment. For many businesses, the cost outweighs the benefits.

Thankfully, there are already many different options of user-friendly apps that can work with your business for food delivery and online ordering. Yelp, for example, will allow you to upload a menu to the website so that customers can order as soon as they find you online. You can offer other apps for takeout orders, as well as a variety of options for delivery services. Even Uber has its own special food delivery service that you can utilize.

You may think that online ordering is a tiny segment of the population, but that is not accurate. According to Fortune Magazine, in 2017, 6. 6 percent of all restaurant orderscame through online ordering or apps. That is higher than the 5 percent allocated for phone orders.

Many modern customers simply find it more convenient to make choices at their own convenience instead of dealing with a frazzled employee over the phone. Chances are good that the portion of orders that come in over apps will only expand as mobile phone usage increases.

 

8. Host Major Events

Special events are a great way to get people into your business. It’s also one of the easiest ways to help create fond memories of your eatery in the local public. If you have televisions in your space, consider hosting special event nights related to sporting events, like the Super Bowl.

 

Even if you don’t have televisions, you can still offer special events and celebratory parties that will draw the local public to your business. New Year’s Eve is a great night to offer a special prix fixe menu and early reservations for customers. You could potentially sell out your entire restaurant weeks before the holiday even hits.

 

If you don’t go that upscale, consider throwing a Halloween party where everyone who shows up in a costume gets half off a drink or a discounted appetizer. If you have more of an intimate ambiance, a singles mixer on Valentine’s Day or Sweetest Day would be an ideal way to get people into your restaurant and associating positive memories with your business.

 

For restaurants with the space, offering to host special events for local groups and even families can be quite lucrative. Developing an area as a banquet space where businesses or other groups can rent the room and obtain food for guests is a great way to make your business a destination while also raking in the profits.

9. Giving Away Free Gift Cards to Your Restaurant

One of the easiest ways to get more people to come in and try your business for the first time is to offer free food. Of course, just handing out free appetizers or desserts to anyone who walks into your restaurant will cost you a lot of money.

 

Instead, give away gift cards. That way, you can control how much money you invest in promoting the business. Give $20 gift cards to a local charity that’s running an auction. Donate gift cards to the radio station to give away to the 10th caller after a certain song. Not only will your business benefit from having your name associated with the giveaway, those gift cards will get people in your restaurant trying your food.

 

You can also offer discounted gift cards, such as buy $20 worth of gift cards and get $30 instead. Chances are good that if customers like your food, they will spend more than the amount on the gift card, and they will come back again later.

10. Reach Out to Your Media Outlets

Local food culture has never been as trendy as it is right now. People love to think they know the hottest and hippest restaurants in their area. Regardless of what your niche is, there is something exciting about your business. Identify that and then reach out to local news outlets. You could try the local television news or even morning radio shows.

You may have a point of interest because your business was founded by an immigrant who has been in the country for decades. Maybe you offer a unique food that no one else in the area serves. Perhaps you have a gorgeous painting created by a local artist featured on one of your walls. Maybe your chef has been working in local restaurants for half a century.

Whatever it is, if it’s interesting to you, it might make a good local interest piece for the local media. Write-ups in the local newspaper or special features on television news or radio shows can certainly increase local interest in your restaurant.

10 Strategies to Attract Restaurant Customers posted first on happyhourspecialsyum.blogspot.com

MRM EXCLUSIVE: Manipulating Music to Master Table Flow

Everyone knows music is of critical importance to a restaurant’s ambience. But did you know it can also have concrete physical effects on your diners? Multiple studies show that speeding up the tempo of your music makes patrons eat faster, allowing for quicker table turnover. Conversely, slowing the tempo down can make them linger longer, and potentially run up their bill with drink or dessert orders. It’s why SoundMachine includes a simple tempo slider for all our stations and customized mixes, allowing restaurant managers to adjust on the fly or schedule peaks and valleys over the course of a day or week based on their desired flow patterns.

But how do you put this science into practice to maximize table flow and, ultimately, profits? We asked restaurant owners and SoundMachine users throughout the U.S. how they use music to keep their businesses humming.

Fast Music for Rush Hours

At peak hours, it’s important to keep business moving quickly. Increasing the tempo of your music can help accomplish that, allowing you to pump up your sales volume by serving more customers faster and better.

“Most of our customers expect top service no matter how full the restaurant is, and the last thing they want is to have to wait for their food,” said Liza Tevelev, Owner of Stuff’d Dumpling Shop in Los Angeles. “Speeding up our music gets our staff going so they can serve orders fast, plus we’ve noticed that those who grab a table are typically in and out faster when the songs are upbeat. It’s been great for us and our customers; we can ensure that they’re happy, comfortable, satisfied, and on their way to the next appointment as soon as possible. On top of that, we pride ourselves on maintaining a great work environment for our employees, and they’ve told us the soundtrack helps keep them motivated. They’ve even discovered some new favorite tracks!”

Get the Most from Each Customer

At more expensive restaurants, an extra drink or even dessert can drive up your profit margins significantly. In times like these, it may be wise to slow down your turnover in order to maximize your revenue from each table.

“We pride ourselves on providing an elegant atmosphere for our diners to enjoy their meal, and we prefer for them to experience every course so we can present our full vision,” said Jeffrey Trevino, Owner and Chef at Acú Bistro Bar in San Antonio, Texas, top photo. “We’ve found that slower music makes our customers more likely to finish with a dessert, after-dinner coffee, or cocktail, which makes for a more satisfying end to the meal for them, a more efficient use of the table for us, and a greater chance that they will return or tell their friends about the experience.”

Not Busy? Slow the Flow to Draw Customers In

Is there a time of day or week when your restaurant traffic is generally slow? Try dropping the tempo of your music so diners stay at their tables longer. You’ll likely get a bigger bill out of the customers you have, and you might even convince a few first-timers to come inside. It’s due to the psychological phenomenon of Social Proof, where people are more likely to choose a crowded restaurant over a quiet one because of an implied endorsement from the masses.

“Most of our business comes from foot traffic, and nobody wants to walk into an empty restaurant,” said Chase Waychoff, General Manager of SouthPark Grill in Charlotte, North Carolina. “When things are slow, we need to keep people around so that new customers don’t feel awkward about coming in. That said, we also don’t want to ruin our diners’ experience with slow service, so a well-timed switch to down-tempo music comes very much in handy. Our diners are naturally more inclined to stick around longer, so we can maximize their bill and maintain a busy atmosphere without compromising our service.”

Music Soothes the Savage Beast

Don’t worry about slower table flow encouraging those waiting in line to leave, as studies show that slowing your music tempo doesn’t result in increased walk-outs. That’s because an engaging, on-brand music experience makes your restaurant a more inviting place overall.

“We’ve always known that music would make our restaurant’s environment more welcoming, and we started using music with the expectation that it would help with awkward silences overall,” said Minh Wong, Director of GK Hawaii Restaurants’ Gyu-Kaku Japanese BBQ franchise. “What we learned was that the music also made things like wait times seem like they were going by much faster. Music provides a better ambience and gives our customers something pleasant to focus on while they wait. Once we realized that, we went all in and haven’t looked back!”

Just remember, whether the tempo is fast or slow, the songs you play must be engaging and on-brand. That’s why SoundMachine offers licensed, customizable, professionally curated music stations that can be mixed to create the perfect audio atmosphere for your restaurant. We can also create a personalized station just for your business, and offer scheduling tools for chains to control the music in their various locations from a single account.

So take charge of your music and, just like our clients above, control your flow.

MRM EXCLUSIVE: Manipulating Music to Master Table Flow posted first on happyhourspecialsyum.blogspot.com

ezCater Acquires GoCater and Upserve Acquires SimpleOrder

Don’t Put Online Restaurant Reviews on the Back Burner

In today’s digital world, diners have become self-proclaimed food photographers and food critics. Armed with social media accounts and mobile apps, they flock to restaurants and describe their experiences in illustrated detail for the entire world to see. Information flows quickly over the internet, and when the user experience is a positive one, the restaurant reaps the benefits. In fact, a slight improvement with online restaurant ratings can increase a restaurant’s business during peak hours by 19 percent.[1] It’s a no-brainer that a strong online presence is a worthy asset.

But, when the user’s experience is a negative one, the repercussions for any restaurant can be troublesome. And in some cases, restaurants are unable to recover from the online criticism and are forced to shut their doors.

Founded in 2004, Yelp is a (if not the) dominant review platform in the United States.[2] Users can rate restaurants and other businesses on a scale of one to five stars. Along with a rating, users can leave written reviews about their experiences. These crowdsourced reviews are highly regarded by restaurant patrons. In fact, a restaurant’s Yelp rating can have a serious and sometimes fatal impact on an establishment. A Harvard Business School study has revealed that restaurants with lower Yelp ratings have a higher probability of closing.[3]

With stakes this high, restaurants quite literally cannot afford to push online reviews to the back burner. But as the California Supreme Court just ruled in Hassell v. Bird,[4] a review website cannot be forced to remove a review posted online even where that review is defamatory.

Although this case involved a law firm and its former client, the lesson is an important one for the restaurant industry. Here, a lawyer and law firm found themselves in a difficult situation, with a handful of negative (and defamatory) reviews online and publicly available. They filed a lawsuit against the individual who posted these reviews and obtained a court order requiring removal by both the former client andYelp.

Yelp objected and filed a motion to set aside and vacate the judgment. When the court denied Yelp’s request, Yelp appealed that denial first to the Court of Appeal and then to the California Supreme Court. In a long-awaited decision, the California Supreme Court issued a plurality opinion that reversed the Court of Appeal’s affirmance of the superior court order and instead determined that Yelp was protected against this sort of “removal order” by Section 230,[5] a federal law that provides immunity “from ‘any’ claim arising out of content originating from a third party, regardless of the theory underlying the cause of action.”

What does that even mean?

All websites and online platforms (including Yelp and other online review sties) displaying “user-generated content,”[6] including Yelp and other are protected by Section 230 immunity; these review sites cannot be forced to remove reviews, even where those reviews are determined to be false.

So what then?

Because online review sites and internet platforms may still voluntarily comply with takedown requests, this ruling does not mean that the removal of defamatory information from a website is impossible, but it may be challenging. Here are a few good rules to live by:

Take Online Reviews Seriously

Restaurants should treat digital complaints from customers the same way they treat complaining customers who are seated in the dining room. Ignoring a negative online review is hardly ever the smart option. If a customer flagged down a manager and complained about how his/her steak is cooked, he’d get another one, right? Think about an online review in much the same way. Address the complaint by taking it seriously and try to resolve it. Even if the review is not removed, other potential patrons who see the review will see the restaurant’s response and should appreciate the effort.

Distinguish Opinion from Lies

Just because a restaurant considers a review to be “negative” does not mean the review is “false.” Even if a review is scathing, a patron is free to express his/her opinion; that is not something that is actionable. But that situation is much different from the one where a patron posts a false review. Be mindful of the difference between “negative” and “defamatory,” and if you discover defamatory reviews about your restaurant, consult an attorney.

Ask First … Maybe

As the California Supreme Court recently clarified, even where a review has been determined to be false and defamatory, the business being reviewed cannot force the review site to remove it. But asking sometimes helps. In some cases, asking the reviewer to delete the defamatory content works; in other cases that effort proves futile. And in some cases, asking a reviewer to remove or delete information has the opposite result. This is known as the “Streisand Effect,” where an attempt to censor information has the unintended and opposite effect of causing the information to be disseminated more widely, usually facilitated by the internet.[7]

A restaurant may also succeed by asking the online review site to comply. Although a court order forcing the website to remove defamatory information is not an option, in many cases review sites (or other social media platforms) voluntarily comply. Sometimes the user-generated content posted on a website or platform violates the website or platform’s guidelines or policies.[8] As an example, Yelp’s guidelines state that “Colorful language and imagery is fine, but there’s no need for threats, harassment, lewdness, hate speech, and other displays of bigotry.”

Be Proactive

The best policy is to have a policy: be proactive, not reactive. Restaurants should be sure to implement policies and procedures aimed at avoiding a digital crisis and prepared to manage a crisis if one does occur. Be certain that your restaurant managers and representatives meet online reviews with the same care and customer service as in-person complaints. Considering how quickly information travels over the internet and via social media, being prepared can be the difference between opening up and closing down.

DISCLAIMER: The information contained in this article does not constitute legal advice. No attorney-client relationship has been or will be formed by reading this article. For legal advice, contact a lawyer at K&L Gates or an attorney actively practicing in your jurisdiction.

[1]Michael Anderson and Jeremy Magruder, Learning from the Crowd: Regression Discontinuity Estimates of the Effects of an Online Review Database, The Economic Journal, Vol. 122, Issue 563 (September 2012), https://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2012.02512.x(The study shows a slight half-star improvement in ratings can increase a restaurant’s business during peak dining hours by 19 percent.).

[2]www.yelp.com.

[3]Dara Lee Luca and Michael Luca. Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit(pdf) Harvard Business School Working Paper, No. 17-088, April 2017. (Revised March 2018).

[4]2018 WL 3213933 (Cal. Sup. Ct. July 2, 2018), http://www.courts.ca.gov/opinions/documents/S235968.PDF(“Opinion”).

[5]This federal law is known as “Section 230” of Title 47 of the United States Code (47 U.S.C. § 230) and was passed as part of the Communication Decency Act of 1996, which was enacted as Title V of the Telecommunications Act of 1996 (Pub.L. No. 104-104, 110 Stat. 56).

[6]Content and/or information provided by third-party users.

[7]See https://en.wikipedia.org/wiki/Streisand_effect. In Hassell v. Bird, one of the subsequent reviews posted online stated:

Dawn hassell has filed a lawsuit against me over this review i posted on yelp!     she has tried to threaten, bully, intimidate, harras me into removing the review!

Opinion, 7 n. 5 (spacing and typos in original).

[8] https://www.yelp.com/guidelines.

Don’t Put Online Restaurant Reviews on the Back Burner posted first on happyhourspecialsyum.blogspot.com

The LTO Phenomenon Is Not a Limited Time Opportunity

Sitting on the sofa late one weekday evening, I was surprised at a sudden turn my family conversation took. “Did you try those taco fries yet?” We’re occasional QSR consumers, but it’s not often at the level of family discussion.

“Um, no, but they look awesome. And what’s with those ads? They’re like a movie or something.”

Five ways restaurants are using technology to succeed with aggressive LTO strategies

The cheesy conversation continued. And, yes, we all eventually went and tried the fries. It seems this is a relatively new phenomenon: restaurants have figured out a winning recipe for limited time offers that inserts innovative (crazy?) products, and their respective brands, into the pop culture conversation. People are instagramming their fast food. They’re interrupting late night conversations with intrigue about Taco Fries.

As it turns out, limited time offers (LTOs) effectively create the promise of a short-lived and scarce opportunity, and that creates a sense of urgency among consumers. The allure of a unique experience brings out the competitive spirit in people, so it’s no wonder 50 percent of Millennials and Generation X customersrace to be the first in their friend group to try a new LTO — and document it on social media.  Or brag about it on the sofa.

In fact, 48 percent of consumers report trying a LTO menu item every month. For consumers between the ages of 18 and 44, over 30 percent do it every week. Those numbers are tantalizingly meaningful for quick-service (QSR), fast casual, and casual dining restaurant brands.

That creates challenges, especially for the operations and learning teams that have to deal with the complexity of menu changes, training rollouts, supply chain complexity, and — in the case of things like Taco Fries — entire rearrangements of the kitchen.

These days, it’s increasingly a solved problem. As our team has helped roll out dozens of national campaigns from the country’s best-known brands, we’ve learned a few things about keeping employees engaged, the operational skids greased, and most importantly, delighting customers every time they show up for the latest innovation.

#1 Simplify Training: Go Mobile

Well-trained employees are crucial for LTO execution. But the most common methods used today for onboarding and training involve shipping paper binders to store locations, posting static files like PDFs to an intranet portal, or emailing files to managers. It’s a playbook straight out of the 90s.

Hourly employees are plunked in front of a computer in a windowless room in the back office, away from the context of the job, and asked to memorize a new process. A full two thirds of employees complain that the content isn’t useful in a real-world context.

What’s a better way? Invest in an operational infrastructure that makes training seamless, easy, and memorable. Today, that means adopting modern technology that delivers digital content directly to employees on mobile devices. Training is faster, efficient, more effective, and always available when a quick refresher is needed.

Yes, mobile devices in a kitchen. Walk into any McDonald’s, Taco Bell, or Chick-fil-A, and odds are you’ll see a tablet, not a binder. (And yes, it’s running Inkling, but I digress.) The WiFi is there, the employees are ready, and the excuses are quickly flowing down the drain. Instant, just-in-time learning, error-free content with real-time updates, and ample data streaming back to HQ about progress toward LTO readiness.

Beyond simply driving employee engagement and simplifying the workflow, mobile in the restaurant is key to driving strategic agility.

#2 Ensure Retention and Engagement: Provide Microlearning

So if you’re reaching your team members on mobile devices, or even if (for now!) it’s just a better approach on the PC in the back, what’s the right way to approach the training problem? What does it mean that the training isn’t once-in-a-while, but instead, once-in-a-week?

As the famous “Forgetting Curve” reminds us, memorization simply doesn’t work for long-term retention. Within 20 minutes, 42 percent is forgotten, 67 percent is gone within 24 hours, and 79 percent has left the mental building one month later. Ask yourself this: what’s the lag between when a team member is trained and when they need to use the skill? Is it more than 20 minutes? That’s some scary math.

Microlearning is widely recognized as a more effective method for effective long-term training. Employees quickly and easily consume new information with short spurts of learning, usually between 3-7 minutes long, and very close to the time they need the knowledge for their work. This type of “active learning” is associated with 90 percent knowledge retention and 50 percent more engagementwith learning materials, especially if it’s done in the context of the job and includes videos and interactive elements.

As an added bonus, building microlearning content takes a third the time, costs half as much, and is 17 percent more efficient at transferring learning versus traditional methods. Plus, digital learning materials can be updated in real time.

And as a bonus ingredient: one-click publishing is a game changer when errors are caught. One of our customers recently cited a nightmare situation: the training materials indicated a food was gluten-free. Except it wasn’t. In print, it would’ve been a nightmare. With digital-only training materials, the error was corrected instantly. Nobody was left wheating for the update. (Sorry.)

#3 Retain Your Best Employees: Increase Autonomy

Given the high turnover rates in the industry (146 percent for limited-service brands, 103% for full-service), restaurants must avoid employee burnout. A quick pace of LTOs coupled with insufficient training or poor access to the resources can be a morale killer. Nobody likes to fail.

However, with direct access to operational content on a tablet or phone, restaurants address one of the main challenges faced today: engaging employees.Researchdemonstrates that employees are happier in their jobs when they feel a sense of control and autonomy in daily operations, and that’s exactly what they’re given when information is always available at their fingertips. Efforts are streamlined, performance is improved, and time is saved when employees can take control of their own LTO training.

Engaged employees also have lower turnover rates and are less likely to get frustrated by LTOs. As a bonus, employees who feel supported and empowered are more likely to spread positive word-of-mouth about their employer, which can equate to easier recruitment. It’s a positive feedback loop.

 

#4 Go Small to Win Big: Test and Target Your LTOs

A lot of planning goes into developing LTOs, and the trend today is away from monolithic national LTOs to more regional versions called “micro-LTOs.” Successful promotions often feed into the national schedule. These offers are initially only released to a select number of stores, targeted locations, or smaller-sized markets.

One reason to use micro-LTOs is to stand out in a hyper-competitive market. For example, by recognizing regional tastes of a geographic area, restaurants can distinguish themselves from the crowd of restaurants vying for attention. McDonald’s offered the McLobster lobster rollas a micro-LTO in Maine, New Hampshire, Massachusetts, and Connecticut. While that LTO would likely be too costly (ingredient sourcing) and less popular (consumer interests) if launched elsewhere, the lobster roll met the local regional tastes perfectly. Even better, the LTO debuted at a time when lobster was expensive, so customers appreciated the ability to eat their favorite sandwich at a more affordable price point and flocked to McDonald’s for the opportunity. McDonald’s also tested green teasin their Houston market to see if it was worth expanding nationally.

In order to support micro-LTOs, restaurants must have the strategic agility to implement quickly and easily at a local level and the ability to deliver LTO training to select locations and employees. Restaurants should select a smart content platform that provides the ability to make this process seamless by targeting how content is shared based on factors such as location and role. With one-click publishing capabilities, content teams can also change LTO recipes and training in real time to respond to things like customer feedback or low ingredient inventory. Binders bind you.

#5 Drive CSAT: Listen to Your Data

When traditional paper or PDF training materials are used, there’s a dearth of feedback or data coming from the field to answer questions about workforce preparedness and training effectiveness. This black hole of insight is frustrating for content creators who can’t tell how their training content is being used, what’s working, and what should be improved. It makes field leadership jobs harder because they can’t ascertain how prepared each store location is to deliver a new LTO, which puts the brand reputation at risk.

That’s why it’s critical to pick a technology provider that offers the ability to digitize and distribute content and easily analyze performance through captured data. The latter makes it easy to measure employee productivity and engagement levels, improve internal efficiency and operations, and solidify the customer experience to ensure LTO success. And, after an LTO launch, HQ can correlate operational content usage with the employee engagement, restaurant location sales, and customer satisfaction scores (CSAT).

Content creation teams can also utilize LTO data to develop new content based on actual usage data. With analysis in hand, they can more easily predict future learning needs based on learner activity and interactions.

Nothing Ventured, Nothing Gained

LTOs are risky business. The quickening pace places pressure on the training and operational infrastructure. LTOs put pressure on kitchen staff and management. And, like a hits-driven business, they can flop. Getting every LTO right really matters to the top and bottom lines.

Software can support better processes. Better processes can support your people. And your people in the restaurant are ultimately going to determine the success of your efforts. Without them, nothing is sold, nothing is eaten.

From tabletop tablets to smartphone-enabled deliveries, digital technologies are disrupting every segment of the restaurant value chain. Training is no exception. Restaurants that develop a digital game plan have a powerful tool working in their favor. Make sure yours includes training and supports your LTO strategies — for the good of your employees, your customers, and your brand.

 

The LTO Phenomenon Is Not a Limited Time Opportunity posted first on happyhourspecialsyum.blogspot.com

The Benefits of Designing a Strong Restaurant Culture

Leaders in every industry give a lot of thought to building a cohesive, sustainable, profitable culture. Restaurant industry leaders do too, but the opportunities — and risks — of food service businesses are unique to the industry. To create a culture of growth and profit, leaders in the restaurant industry should broaden their perspective on a few key contributors and consider how each one aligns with the brand’s purpose, promise and values.

 

The corporate office, which has the responsibility of creating and driving the company’s purpose, brand and culture – yet shockingly few employees know what theirs are.

A Gallup Panel survey finds just 28 percent of employees in hospitality strongly agree with the statement “I know what my company stands for and what makes our brand(s) different from our competitors.”

 

Understanding purpose is especially important in food service, as competition is so fierce and abundant. Anybody can serve what you serve — but purpose is what makes your brand different from your competitors. Purpose, therefore, is a big part of brand identity and brand promise. Purpose is what keeps employees with you longer. Purpose is fundamentally, irreversibly tied to company values.

 

All restaurants have a value system — and if corporate doesn’t establish one, front-line workers will. It’s better by far for leadership to define the values and communicate them throughout the organization. Establishing organizational purpose and values also allows workers to feel like they are a part of something larger than themselves. And if your staff includes a lot of millennials, this is important. 

 

According to the Gallup report How Millennials Want to Work and Live, “[Millennials’] ultimate goal is to find a good job that fuels their sense of purpose and enables them to lead a life well-lived.” Millennials may be uniquely attuned to purpose, but all workers need to feel involved in the values and purpose of their company. And the best restaurants in the industry make their values and purpose clear.

Identity and Differentiation

Think about Panera and how its “Food Policy” values — clean ingredients, a transparent menu and positive impact — establish healthy food as a value and selling it is their purpose. Or how Chez Panisse, at the other end of the industry spectrum, values ingredient sourcing and quality with the purpose of creating better, more sustainable dining experiences. That purpose and the brand have expanded into homes all over the world through the cookbook library of its founder, Alice Waters.

 

Ultimately, values are a self-reinforcing part of a restaurant’s culture — values sustain culture and culture promotes values. But the corporate office must drive culture throughout the organization to make values and purpose consistent with the brand. Values, purpose and brand can die at the head office unless senior leadership believes in and embodies them. To avoid that, leadership needs a solid feedback loop between the front line and the back office to hold everyone accountable to values, purpose and brand promise.

 

Do that and the end goal — increasing profits and growing your market share — is easier to reach. But there’s a catch: Whatever the values, purpose or brand promise, the organization must first ensure that workers have the materials and equipment they need to do their jobs right. If they don’t, the organization’s purpose is already compromised.

Big Little Things

Gallup’s Q12 engagement assessment evaluates the 12 discrete elements that indicate a worker’s engagement, and having the necessary materials and equipment is one of them. When employees chase customers out to the parking lot to get a pen back, or cooks hide towels so they’ll have enough to get through the shift, or managers have to hack the POS so customers can get what they ordered, people can’t do their jobs right.

 

If they’re shorted on the things they need, workers will soon believe that what they do — cook and serve food, keep the store clean and operational — doesn’t matter. It’s a short jump from, “What I do doesn’t matter,” to, “Our purpose doesn’t matter.” And very soon the values and brand promise cease to matter much either. That pattern changes a culture. But it can be halted in its tracks by a corporate office that instills purpose in every values-related decision it makes, every action workers take, and in every brand experience a customer has. That’s how food service exceeds customer expectations consistently. That’s how a restaurant wins today and tomorrow.

 

In my experience, when a culture underperforms, it’s often because the head office inconsistently messaged its purpose, values and brand promise. But when a brand dominates its market, it’s because the head office knows culture should be a matter of design, not default.

 

The Benefits of Designing a Strong Restaurant Culture posted first on happyhourspecialsyum.blogspot.com

Snag’s New CEO and Gaming for Digital Orders

A Guide to Alcohol Licensing

Ever dreamt of launching your own microbrewery, pop-up bar or pub? Many seek this career but starting up can often be time consuming and confusing.

Essentially, you need to be clued up on alcohol licensing and what it means for you. Need some guidance? Find out everything you need to know about this important piece of legislation right here.

Essential Rules and Regulations

If you want to supply alcohol in England and Wales, you need a licence that has been authorised by the licensing authority. Often, this is a local council. Overseen by the Home Office, this determines:

1. Businesses that sell or supply alcohol on a permanent basis, such as pubs, need to apply for a premises licence.
2. Those who plan to authorise the sale of alcohol must apply for a personal licence, alongside the premises licence, if they are also the owner of the business in that premises.

Getting a licence includes a fee and an application form, which you need to post to your local council. As well as the local authority, you will also have to send your application to the police and other responsible authorities, such as:

• Local trading standards.
• Primary care trust (PCT) or local health board (LHB).
• Environmental health authority.
• Local fire and rescue.
• Planning authority.
• Any other licensing authority in whose area part of the premises is located.

Before you start the application process, it’s important that you plan as much as possible to avoid encountering an issue that may hamper your new business’ progress. This could include everything from knowing who your commercial gas provider will be, to working out how many members of staff you’ll hire.

Your Premises

A premise licence gives you permission to use a premise for activities involving the sale of alcohol. To successfully apply for this licence, you will be asked a series of questions such as:

• Your details as an applicant.
• General information regarding the premises such as the address.
• The operating schedule, including the date you want the licence to start from on the premises.
• The opening hours of your premises.
• How you intend to promote the four key licensing objectives, which are: the prevention of crime and disorder, public safety, the prevention of public nuisance, the protection of children from harm.
• The planning of the premises and any advertising on or around the premises.

Make sure you indicate what licensable activities you wish to carry out by ticking the appropriate boxes on the form. You should also indicate what days and times you want the licence to be active from. This also includes the provision of regulated entertainment, such as indoor sporting events, live music and recorded music. Also, you should state who you wish to be the designated premises supervisor (DPS).

What is a Personal Licence?

Staff members don’t need a personal licence, however, a premises supervisor does – and you must have someone filling this role.

Are going to be the owner of the premises licence? If so, you would apply to be the personal licence holder. Also, anyone who works in a pub should be authorised to do so by the personal licence holder. Before applying for this licence, ensure that anyone running or managing a pub is professional and responsible to avoid problems further down the line.

These are all the details you need to know about alcohol licences. Get started today and you could be pouring pints in your own pub very soon.

Nicky Bannister is Head of Flogas Energy

A Guide to Alcohol Licensing posted first on happyhourspecialsyum.blogspot.com

How to Open, Operate and Grow Your Restaurant

For many soon-to-become restaurant owners, one of the most complex tasks is figuring out from where to start. In order to ease the whole process, make sure to divide it into three separate steps – opening, running and growing your restaurant. Make sure to focus thoroughly on each and every one, but do not look at them as individual, isolated milestones.

Step 1. How to open your restaurant

This is the most complex part of the process. Here you should lay the foundations and shape your business concept. Make sure to spend enough time on initial planning as that way you are defining your plans and setting the initial prerequisites for a future success.

Start with a business plan

You should focus on developing an in-depth business plan that highlights the path you want to take. It will help you clearly define your strategy and plan each and every part of your future business – from figuring out the name, brand identity, and marketing strategy, through finding funding, obtaining licenses and designing the floor plan, right to optimizing the processes and day-to-day operations within the restaurant.

Bear in mind that more than 60 percent of new businesses in the restaurant industry can’t make it through the first year. If you want to be a part of the other 40 percent, do your homework and create a thorough and in-depth business plan. After you are finished, have it reviewed by multiple independent sources – the best thing here is to consult some industry professionals.

Obtain licenses and state approvals

No one likes to do the paperwork, yet if you want to open a restaurant, you just can’t avoid it. You won’t find a universal recipe how to handle all this as each and every state has its own procedures and requirements that you should adhere to. Yet, if you check the list of the licenses and permits that you need to obtain in order to open your business, you will find out that it is pretty much the same for all states. Do not make the mistake to underrate the procedure of getting the approvals as it can be very time-consuming and may significantly slow down the process. Start dealing with the paperwork as soon as you figure out the location of your future restaurant.

Step 2. How to professionally run your restaurant

You have the needed funding, obtained all permits and are now ready to welcome your first customer but you get that slight feeling of not being entirely ready. Do not worry – this is most probably just stage fright. Consider the following two questions:

Are you ready to predict and satisfy the needs of your customers?

You should be willing to innovate and offer something unique to be able to turn the customer’s visit into an unforgettable experience. It does not matter what drives this experience – be it a unique part of the interior, a wonderful component of your menu, a specific atmosphere or etc. – you just have to make sure that the customer will remember your place. That way, as soon as he leaves your restaurant, you will be getting a positive rating or be shared on social media. If you want a recipe for satisfying the needs of your customers, let it be this – be inspiring and creative.

Do you offer high-quality service?

Your restaurant may be the place with best burgers around town, but if you do not back the delicious food or beverages with high-quality service, you will significantly diminish the overall customer experience. From your staff, through the payment processing services, it is very important to provide the visitor with all that he needs in order to feel comfortable. And most importantly – don’t try to be that “one-place-for-all” restaurant – you will most probably fail. Instead tailor your service to important demographic factors such as the preferences of the most popular groups among your customers, their age, needs and etc. Just think about it that way – you can’t be unique in everything, right? Seamless, high-quality service leaves long-term memories that your visitors will want to share with their friends and colleagues.

Step 3. How to grow your restaurant

Growing your business does not mean adding more space or additional tables. Just the opposite – it means retaining the unique concept of your restaurant, while at the same time making it run more efficiently. Or in other words – process optimization. Focus on the following three factors:

Business analytics

Start analyzing the trends among your customer base and identify some useful behavioral patterns, so that you can optimize and better tailor your services. For example – check which is the most preferred item on your menu and offer periodical discounts on it.  People will be surprised and pleased.

If you analyze your reports and find out that each morning there is a queue for coffee at your place, optimize the process. Install a self-order Kiosk and replace the cashier with another barista. That way you will be able to double the speed at which your orders are processed. Apart from the increased sales, you will achieve something even more important – you will save the precious time of your customers. They will surely appreciate that.

Enhance your business through Fintech

If you haven’t planned on bringing your business to the digital era when making your initial business plan, make sure to focus on it as an efficient growth strategy. When thinking about how to grow your restaurant business, focus on the entire process – the things you have control of and those you don’t. Focus on the order and payment processes as these are the factors that you can optimize. One of the proven ways to achieve that and thus – grow your business, is to increase its efficiency by investing in a cloud-based POS system. A Point-of-Sale system will guarantee numerous advantages for your business, such as:

• Reduced cost of labor
• Increased sales
• Ease of payment processing
• Staff management and inventory control
• Reporting features

A cloud-based POS system will allow you to enhance your business by adding a self-ordering option, digital version of your menu, wide variety of payment methods and etc. That way you will be able to provide the customers with the option to feel free to order or pay comfortably, without having to wait, which will drastically improve their experience.

Stick to your strategy, but look-forward as well

With more than 645 000 currently active business units, the US restaurant industry is not the easiest niche to start your business. Yet, there is no better feeling than turning your idea into a running and respected restaurant. In order to do that, you should be willing to adopt a more progressive approach and not be afraid to be innovative. 

How to Open, Operate and Grow Your Restaurant posted first on happyhourspecialsyum.blogspot.com

What’s So Hot About Hot Sauce (Infographic)

Everyone’s heard of hot sauce. Nearly every nation has their own cultural rendition of a spicy condiment to enhance the flavor of their food. While hot sauce has been popular in the U.S. for decades, it’s become increasingly popular in recent years. Hot sauce is more than just a common part of street food, as there is a science behind how spicy each sauce is, as well as a history of hot sauce’s origins. 

Most hot sauce is some combination of chili peppers, vinegar, and salt. Many hot sauces are fermented to add a funky flavor element. They can be liquid or paste, green, red or even brown. While there are other spicy condiments that get their heat from ingredients that aren’t chilies (Mustard sauce, Wasabi, Horseradish), we’ll just focus on chili-based sauces.

Most sources agree that hot sauce is an ancient invention that goes back as far as Mayan times. The first hot sauces were likely just a mixture of peppers and water, but it didn’t take long for people to begin breeding pepper plants to develop the most desirable traits in their peppers. Then, as with most foods, colonization led hot sauce to be evolved even further by introducing ingredients from other parts of the world, such as vinegar and other spices. It didn’t take long for spicy flavors to reach all corners of the globe after that.

In the 19th century, the Tabasco company brought hot sauce into the commercial scene by bottling and selling their products, mainly to hotels and restaurants. And today, there are countless varieties of hot sauce covering a broad spectrum of flavors, from sriracha to buffalo sauce.

What Makes Hot Sauce Hot?

The chemical that gives peppers their distinctive spicy flavor is called capsaicin. Sources believe that nature intended capsaicin to deter many animals from eating peppers, but the chemical has had the opposite effect… because spicy food is delicious. Fun fact! Most species of birds cannot taste the spiciness of capsaicin, likely so that they could help spread the seeds of pepper plants by ingesting and excreting them.

Chile, Chili or Chilli: What’s the Proper Pepper Spelling?

You’ll likely see two different spellings used to describe our spicy little peppers. And while they can be used interchangeably, you may find that certain regions tend to use one option more consistently than the others. For example, you’ll likely find “chilli” with two ls is most common in India and the UK, while South and Central America tend to use “chile” with an e… not to be confused with the country of Chile, which is spelled the same, but is unrelated to the origins of this word.

Also, here in the U.S., chili with one l is the preferred spelling of the pepper, but it also refers to the beef stew that stems from Mexican chili con carne, which includes chili powder, beef, onion, tomatoes, and sometimes beans.

Styles of Hot Sauce by Region

Just like most foods, there are people who craft specialty hot sauce and incorporate unique flavors into the mix. You can find artisanal hot sauces with fruity elements such as pineapple, mango and even blackberry. But most hot sauce types are defined by the region from which they originate.

When it comes to measuring the pungency of a spicy food, experts refer to the Scoville scale. This system was developed in 1912 by pharmacist Wilbur Scoville as a means to measure the level of capsaicinoids (which includes all the spicy chemicals, not just capsaicin) in a particular substance. The unit of measure in this scale is Scoville heat units (SHU) and is a useful bit of knowledge when examining or discussing the spiciness of a particular food. SHUs can also be used for non-food items, such as law-enforcement-grade pepper spray, which can be anywhere between 2 to 5 million SHU.

While tasting spiciness can be a somewhat subjective thing, measuring the chemicals on the Scoville scale provides an objective means of communicating just how hot something is. And while chili peppers may come in all different shapes, sizes, colors, flavors… and even spellings, the fact that spicy foods can be found in nearly every country on earth is a unifying quality. Humans have enjoyed hot sauce since ancient times and, as with so many foods, it can serve as an international language to bring different people together and find common ground. 

What’s So Hot About Hot Sauce (Infographic) posted first on happyhourspecialsyum.blogspot.com

Five ‘Ingredients’ for Great Restaurant Uniforms

You’re with a friend at a bustling café. You’re just getting situated at your table and taking in the sights and smells as your server approaches. She’s friendly enough, but you notice she’s wearing ripped jeans and an ill-fitting blouse. “That’s a little tacky,” you think to yourself as she takes your order.

The server leaves, and your attention quickly returns to your conversation…but as the meal progresses, you can’t help but notice that all the servers are wearing different outfits. There’s no uniformity—nothing to distinguish them from the patrons.

As a business owner, you find this oversight a bit baffling (if not offensive). “This is Business 101 stuff,” you think to yourself.

Will the sub-ideal appearance of the wait staff deter you from going back to that café? Maybe not. But it might not be your first choice next time.

The message here is that impressions matter.

Stylish, functional, well-fitting uniforms are a must in any restaurant—whether it’s a small-town bistro or a nationwide sports bar franchise.

Here are five things to consider when choosing a uniform for your establishment. 

 
Branding

Your staff is the face of your business. The uniform they wear represents your brand. Think you don’t need a brand just because you’re a small business owner with a single restaurant location? Guess again! Every business—large or small—needs a brand identity. Uniforms are a silent marketing tool, promoting your business without words or images. They also help prevent confusion by distinguishing staff from patrons.

 

Darker colors typically convey a more serious, upscale impression. Bold colors capture attention. White conveys sophistication and purity. If you’re curious about how color influences impressions and attitudes, here’s a good blog post on color psychology.

Uniforms don’t have to be expensive or elaborate, but they should make a statement. At a minimum, that statement should be that you take pride in your establishment.

 Style

It goes without saying that your uniforms should be tidy-looking and functional, but they should also be stylish. Unless your restaurant has a specific or unusual theme, contemporary is the way to go. This doesn’t mean you have to cast aside tradition—an ensemble of vest, slacks, and button-down shirt is timeless attire for servers, especially in more upscale establishments, while chef’s hats and coats are both functional and make a statement about who’s in charge in the kitchen.

 

Comfort

The restaurant business is demanding. Your hardworking staff deserve uniforms that are functional and comfortable. An uncomfortable uniform is like a pair of shoes that are just a tad too small—you can’t wait to get out of it. Itchy, ill-fitting, or otherwise irritating uniforms may very well translate into poorer service from staff on the floor, poor creativity from staff in the kitchen, and reduced productivity all around. And, in any case, do you really want patrons observing your wait staff tugging at their collars and adjusting uncomfortable slacks all day?

Choose comfortable uniforms that give your staff room to move and breathe. They don’t have to cost a fortune, but quality matters, which brings us to our next point…

 

Quality

Quality matters. You might think you can save a bundle by ordering in bulk from an overseas wholesaler site, but don’t be surprised if those $5 aprons only last a few months before you’re back online ordering more. Investing in quality restaurant apparel upfront will save you money in the long run. In any case, shoddy tailoring and poor-quality materials don’t convey pride in your establishment. Go for the good stuff.

Safety

Safety is so important in the restaurant industry, where open flames, fiery ovens, spills, splashes, and splatters are part of the job description. Protecting chefs, cooks, and servers from these hazards is essential. Many standard apparel items protect wearers by design—think the double-breasted chef’s coats that protect a chef’s chest, neck, and arms from burns, splatters, and hot liquids. Or bib aprons, which also guard against splatters and spills. To ensure you’re getting quality apparel designed with safety in mind, order restaurant apparel from a company that offers trusted brands in the industry.

In a nutshell, quality restaurant uniforms that convey a sense of pride in your establishment and reflect your brand identity will help you take your business to the next level.

 

Five ‘Ingredients’ for Great Restaurant Uniforms posted first on happyhourspecialsyum.blogspot.com

Four ‘Worst Practices’ in Restaurant Delivery

With delivery on the rise, operators of all food types are racing to embrace the new paradigm of convenience. Understandably so: Morgan Stanley and other industry analysts predict delivery sales will build at a compound annual growth rate of over 15 percent in the next five years, prompting a delivery ‘arms-with-bags’ race. Changes in consumer demand and the rise of last-mile delivery services will bring lifelong impact to the restaurant industry. As a result, decisions and deals are materializing fast, which means missteps can happen just as quickly – and they are.

Just how much does setting the right foundation matter? To see a distant future resembling what Olo Founder & CEO Noah Glass calls the “sad path” of food on-demand, look no further than similar missteps in the travel industry. Hotel brands didn’t foresee the significance online travel agents would play quickly enough, and once they did grasp the big picture, it was too late to take control. For hoteliers, a fifteen-year battle wages on. Arne Sorenson, CEO of Marriott International, just proclaimed at the NYU International Hospitality Industry Investment Conference in June that his company is “in an absolute war for who owns the customer,” predicting more years of grappling with OTAs over customer engagement.

So how can the restaurant industry embrace the exciting promise of delivery while maintaining the health of their businesses? As a foundation, they must avoid the four “worst practices” of delivery enablement to capitalize on delivery’s true potential.

Worst Practice #1: Redirecting Guests Away from Your Brand Site or App … or Store

Picture it: you’re hungry for Bob’s Burgers and head over to BobsBurgers.com for delivery. Bob offers his own direct delivery, but clicking on the ‘Delivery’ link sends you off to a third-party site. To the majority of digital guests, this bump is negligible; however, to the restaurateur it means lost work to get you to the site and send you to another provider while paying a commission for the privilege.

While marketplace partners undoubtedly provide solid streams of incremental orders for many brands, no brand that offers their own pickup/delivery experience should bounce visitors from their own .com or app to a third-party. This is also true for destinations like Yelp, Google My Business, and every other place on the web where menu and ordering links appear.

Even worse, many restaurant locations are willingly posting on their front window/door delivery stickers advertising delivery services that charge the restaurant a 20-30 percent commission on every order, hog customer data, and list that very location next to its neighborhood competitors.

As speaker Jim Sullivan recently highlighted, the power of your guest data far exceeds our industry’s current use of it. Without intervention, Sullivan says in “last place will be the restaurant industry itself, which created the market and the demand, but will become its supplier and servant instead. Who owns the data owns the future.”

Worst Practice #2: Being Indifferent Toward Your Own Direct Channel

Quite commonly, brands are enabling on multiple order streams without a stance or preference on the order origin, resulting in a marketplace-dominant mix. Executive sentiment then goes something like this: “Marketplace X/Y/Z drives most of our orders, so we’ll focus our energy there.”

It’s no surprise that secondary channels would drive a majority of orders without an aggressive digital marketing strategy to attract guests to “first-party” direct channels. Why is investing here important? Look again to the travel and lodging industry, where many hotel brands are actively working to win back guests to “book direct” through expensive loyalty programs that are the direct result of lost market share to sites like Expedia, Orbitz and Priceline.

The antidote is a brand like Disney, which today retains 100 percent of its revenue through direct bookings and has been able to build pricing and inventory systems to fully control yield. As Olo CCO Marty Hahnfeld says, “not every hotel or restaurant brand could be Disney, but some certainly could if they had the vision to control their own future.” Those that do will be the ones to beat.

Worst Practice #3: Signing an Exclusive Marketplace Deal as a Delivery Strategy

Whether it’s Yum Brands and Grubhub or McDonalds and UberEats, we’re seeing many examples of close partner alignment with delivery. We’ve even heard executives go so far as printing marketplace partner’s name on marketing materials because of the delivery company’s “trusted household name” – only a few years old vs. the brand’s four decades of business.

Aside from coverage concerns, there’s one simple reason to not sign an exclusive deal: each marketplace can bring a unique subset of customers to you. Incrementality between providers exists, as evidenced by Olo’s research across hundreds of thousands of delivery orders by email address. There is also the coming future of continued change and consolidation in the space that makes a 1×1 alignment more complicated.

Worst Practice #4: Assuming Your Brand Can’t Compete in this New Environment

Change is inevitable, and marketers are reacting to new entrants in the space armed with big budgets aimed at converting guests searching for their own brand and food. It may sound fundamental, but the biggest mistake the restaurant marketer can make is to decide they can’t compete for their own brand searches.

At Olo we know that it’s possible for brands of all sizes to compete and win – because we’ve seen it happen. In a study of over 300 restaurant brands, we identified that most brands are losing delivery searches for their own brand, but those that fight back with paid ads and brand-first marketplace deals can compete and win their fair share of the digital dining dollar.

One thing is clear: delivery providers are establishing the terms of engagement for delivery and it’s up to the brands to step up and take control of the conversation. Look to leaders like Portillo’s for the best practices.

If you already have delivery with multiple marketplaces, that means renegotiating for favorable terms for your brand. If you’re just getting started, we advise brands launch their own direct delivery channel (like many Olo brands have with Dispatch) and set strict parameters around any marketplace agreements you enter. Brands, technology providers, and guests will benefit as a result.

Four ‘Worst Practices’ in Restaurant Delivery posted first on happyhourspecialsyum.blogspot.com