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Free Refills—Or Not?

Jun 30, 2015

As beverage trends point towards better-for-you beverages, such as aguas frescas and signature chef-inspired lemonades, will guests still ask: “Can I get a refill?”

 

With classic fountain sodas and their incredible margins, the answer has long been yes, “Refill your cup,” especially when many fountain soda machines are guest accessible in the dining area or near the cash register. But what about higher-cost, artisan drinks, such as Lemonade’s well-merchandised drink display ranging from Blood Orange to Watermelon Rosemary Lemonades or Tender Greens’ rotating “Lifestyle Drink”?

 

Though offered at a higher price point, from $3 to even $5 at some “fine fast casual” restaurant concepts, these freshly made beverages aren’t all-you-can-drink, and it seems that guests largely understand this. “Individuals dining at these concepts are voting for quality over quantity with their dining dollars, and aren’t likely to find this a problem. At the same time, they will not likely order another beverage,” Synergy’s own Randy Lopez notes.

 

What’s more, many of these establishments are offering a single beverage size, eliminating extra questions at the cash register and helping with a streamlined paper goods inventory. This approach also forces guests who might have a small beverage to trade up and meet at a happy medium. With that in mind, there is less likelihood for a needed refill.

 

We’ll continue to see fountain sodas (including better-for-you brands such as Boylan’s or Jones Soda Co’s cane sugar line) offered with unlimited refills, but their bottled versions or a concept’s house-made refreshing beverages? Sip slowly and savor it, or prepare to pay again.

 

 

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Restaurants Pass Healthcare Costs to Guests

Apr 18, 2015

Last week while on a Discovery Tour in Los Angeles with a lovely, well-known client we are not yet able to disclose, we spotted a restaurant human resources practice that’s been popping up across the country and Los Angeles in recent years: Service surcharges, up to 4.5%, that allow the restaurant to provide its employees with healthcare coverage.

 

A number of restaurants in San Francisco have been tacking on a dollar per guest long before Obamacare, but guests are divided in how they feel about the charge. At Huckleberry, our cashier told us that patrons regularly acknowledge the extra charge, some more vocal or miffed than others. But while a few have asked for the additional request to be removed, people are generally in support of the initiative.

 

While non-fans of the added cost are put in a precarious position, not wanting to seem cheap or heartless, much of the pushback and hesitation to contribute may be in the in-your-face reminder of the additional payment. Huckleberry prominently displays its extra charge at the register, while countless other concepts leave the added fee in the menu’s small print and as a line item when the check arrives.

 

While it’s possible (though tough) to work this cost into menu items, making the advocacy statement is a major component of restaurants who take this approach. Love it or hate it, healthcare surcharges are likely here to stay.

 

 

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Are You Undercharging At Your Restaurant?

Nov 09, 2013

 

menu

With over 25 years of hospitality consulting experience, there are certain facts we have learned about the restaurant business. It’s commonly understood that food costs and pricing strategies can make or break a restaurant. However, you may find it surprising that many independent restaurants are actually undercharging for their products.

The following data can be helpful to use as a price comparison. Take a look at your menu prices and compare them to the averages found at national chains. How do you stack up?

 

Menu Category

National Chain

Average Price

                     Salads                      $7.76
                     Soup                      $3.84
                     Appetizers                      $8.11
            Sandwiches / Burgers                      $8.49
                    Entrees                      $15.28
                     Pizza                      $11.29
                     Sides                      $2.62
                     Kids Meal                      $4.51
                     Dessert                      $5.70
         Beverage (Nonalcoholic)                      $2.21

 

To calculate the data, we took a sample of menu items within each of the categories listed above and found the average price of an item within the category. The national chains used to determine the calculations included Applebees, Chilis, Olive Garden, Red Robin, Red Lobster, Ruby Tuesday, Smokey Bones, Texas Roadhouse, Outback, Lonestar, Hooters, Buffalo Wild Wings, Wild Wings Café, Pizza Hut, Dominos, Papa Johns, and Panera.

 

Synergy Restaurant Consultants offers comprehensive restaurant financial services. Please visit www.synergyconsultants.com for more information.