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Want to Start a New Restaurant? Make Sure You’ve Got a Solid USP

Mar 11, 2024

Opening a new restaurant is not just about serving delicious food but also crafting an unforgettable experience that resonates with customers and keeps them coming back for more. This is where the concept of a Unique Selling Proposition (USP) becomes paramount. A USP is the heart and soul of a restaurant’s identity, defining what sets it apart from the competition and why diners should choose it over other options. In concept development, establishing a compelling USP is not merely a marketing tactic; it’s a strategic imperative that can make or break the venture.

 

Real-Life Examples of Restaurants’ USPs

 

What does a USP looks like in real life? Check out these famous chain’s unique value propositions:

 

Taco Bell: “Live Más” – Taco Bell encourages customers to embrace their adventurous spirit and “Live Más” by offering bold and innovative Mexican-inspired menu items, including creative twists on classic favorites and limited-time offerings.

 

In-N-Out Burger: “Quality You Can Taste” – In-N-Out Burger prides itself on using fresh, never frozen, high-quality ingredients in its burgers, fries, and shakes, appealing to customers seeking a simple yet delicious fast-food experience.

 

Chipotle Mexican Grill: “Food With Integrity” – Chipotle emphasizes its commitment to serving high-quality, sustainably sourced ingredients in its Mexican-inspired dishes, appealing to health-conscious and socially conscious consumers.

 

Shake Shack: “Modern Day ‘Roadside’ Burger Stand” –  Shake Shack offers a nostalgic dining experience reminiscent of classic roadside burger joints. It focuses on premium, all-natural ingredients and made-to-order burgers, shakes, and fries.

Shake Shack

Roadmap for Building Your Restaurant Concepts USP

Now that you’ve seen what great USPs look like, here’s a roadmap on how you can develop a unique selling proposition for your own new restaurant concept:

 

Identify Your Strengths: Start by identifying the strengths of your restaurant concept. What makes it special or unique? It could be your culinary expertise, a specific cuisine, a particular cooking technique, a creative menu, or a dining experience unlike any other. Brazilian chain Fogo de Chão is an excellent example of this as they share the centuries-old grilling tradition of churrasco experience at each table with their patrons.

 

Understand Your Target Audience: Gain a deep understanding of your target audience’s preferences, needs, and desires. Consider factors such as demographics, psychographics, dining habits, and lifestyle preferences. Tailor your USP to resonate with your target market.

 

Conduct Market Research: Research your competitors to understand their offerings and positioning in the market. Identify gaps or areas where you can differentiate your restaurant. Look for opportunities to fulfill unmet needs or provide solutions that competitors overlook. Olive Garden, for example, has limited-time offerings catering to value such as their “Never-Ending Pasta Passes” or their ongoing never-ending soup, salad and breadsticks for on-premise dining.

 

Focus on Benefits: Highlight the unique benefits or value propositions that your restaurant offers customers. Think beyond features and emphasize how your restaurant enhances the dining experience, solves a problem, or fulfills a desire for your target audience.

 

Emphasize Your Story or Heritage: If your restaurant has a compelling backstory, heritage, or culinary tradition, leverage it as part of your USP. It’s easy to remember that Rubio’s is the “Home of the Original Fish Taco” as the popular chain shares its humble origin story in its marketing. Authenticity and storytelling can resonate with customers and create an emotional connection that sets your restaurant apart.

 

Create Memorable Experiences: Consider how to create memorable experiences for diners beyond just the food. This could include distinctive ambiance, personalized service, interactive dining experiences, or themed events that leave a lasting impression.

 

Offer Unique Menu Items or Specialties: Develop signature dishes, unique flavor combinations, or innovative culinary creations that become synonymous with your restaurant. Highlight these menu items as part of your USP to attract food enthusiasts and adventurous diners.

 

Focus on Quality and Freshness: If quality and freshness are central to your restaurant’s philosophy, make them a core part of your USP. Emphasize locally sourced ingredients, farm-to-table practices, or artisanal preparation methods that differentiate your offerings.

 

Provide Exceptional Service: Outstanding customer service can be a powerful USP in the restaurant industry. Train your staff to deliver exceptional service that exceeds customer expectations and leaves a positive impression.

 

Communicate Your USP Effectively: Once you’ve defined your USP, ensure it’s communicated effectively through your branding, marketing materials, website, social media channels, and customer interactions. Consistency in messaging is key to building brand awareness and attracting loyal customers.

By developing a unique selling proposition that resonates with your target audience and effectively differentiates your restaurant from competitors, you can position your establishment for success in the highly competitive restaurant industry.

 

Looking to open a new restaurant? We are here to help you turn your vision into a reality. Contact Synergy for more information: 888-861-9212.

 

 

 

Sources

Fogodechao.com
Olivegarden.com
Rubios.com
Openai.com

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New Menu Items Roll Out at these Popular Chains

Mar 05, 2024

Consumer tastes and preferences are constantly shifting, so staying relevant and attracting customers requires a dynamic approach to menu development. This involves continuously innovating and introducing new menu items. Sometimes, these new menu offerings become go-to fan favorites, while others develop into seasonal, limited-time offerings, or simply disappear forever. Let’s take a look at the latest new offerings from popular chains.

 

Chicken is In

Burger King is launching two spicy chicken menu items for spring and summer. The new offerings include the Fiery Buffalo Royal Crispy Wrap and the returning Fiery Nuggets. These items feature crispy white meat chicken coated in a spicy Buffalo glaze, complemented by a creamy Buffalo sauce, tomato, and lettuce in a tortilla wrap. The items will be available nationwide starting March 7 for approximately $2.99 each. Burger King’s Chief Marketing Officer, Pat O’Toole, expressed excitement about the new flavor addition, emphasizing its popularity and the decision to make wraps a permanent menu item. This announcement coincides with Burger King’s response to Wendy’s proposed “surge pricing,” with Burger King offering free Whopper burgers and asserting their commitment to fair pricing.

Taco Bell supports emerging culinary talent through TBX, a program spotlighting three talented chefs who will collaborate on reinventing the iconic Crunchwrap Supreme. The Cantina Chicken Menu introduces flavorful oven-roasted chicken seasoned with Mexican spices and features five new items, including the Cantina Chicken Burrito and Cantina Chicken Quesadilla. Furthermore, Taco Bell is rolling out many bold new flavors in 2024, including Cheesy Chicken Crispanadas and Crispy Chicken Nuggets. Iconic collaborations with brands like Cheez-It® and Tajín® promise to delight fans with surprising menu items packed with sweet and spicy flavors.

 

Sandwiches and More

Panera is gearing up for a significant menu innovation, introducing nine new items, including the much-anticipated bacon mac & cheese pasta. The bakery chain is also adding four sandwiches and four salads to its upcoming update. Moreover, 12 current items, such as the Bravo Club Sandwich and Chipotle Chicken Avocado Melt, will receive enhanced recipes as part of “Panera’s New Era.” These modifications aim to infuse “more delicious flavors” into the menu in what Panera describes as its “biggest menu transformation” yet. The new entrees will feature guest-inspired flavors, new salad dressings, meats, cheeses, spice blends, and hearty grains. The revamped menu is set to launch on April 4, with MyPanera rewards members receiving exclusive sneak peeks ahead of the official release.

In January, Subway introduced a major menu update with the launch of Sidekicks, a collection of three new footlong snacks. These snacks, created in collaboration with Cinnabon and Auntie Anne’s, offer a twist on classic treats and provide the perfect complement to Subway’s signature footlong sandwiches or as standalone snacks. The lineup includes the Cinnabon Footlong Churro, Auntie Anne’s Footlong Pretzel, and the return of the Footlong Cookie. Douglas Fry, President of Subway North America, highlighted the significance of Sidekicks in enhancing the Subway experience and teased further culinary innovation for 2024. This initiative is part of Subway’s ongoing transformation journey, which began in 2021 with ingredient pantry overhauls and continues to prioritize enhancing the guest experience. Dave Mikita, President of International and Retail Channels at Focus Brands, expressed excitement about the partnership with Subway and the opportunity to delight guests with these beloved snacks in new and craveable ways.

 

 

Sources:

Parade.com
Prnewswire.com
Usatoday.com
Subway.com
Openai.com

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4 Must Attend Foodservice Expos in 2024

Feb 27, 2024

Attending restaurant and foodservice industry shows is crucial for professionals seeking to stay ahead in a continuously evolving arena. These events provide invaluable opportunities for networking, discovering the latest trends, and gaining insights into innovative technologies and practices. In 2024, several notable shows promise to showcase cutting-edge advancements and facilitate meaningful connections within the industry. From unveiling culinary innovations to exploring sustainable practices, these events offer a platform for professionals to enhance their expertise and drive success in the dynamic world of foodservice.

 

Bar & Restaurant Expo 

Join over 13,000 industry professionals at the Bar & Restaurant Expo, a comprehensive event  to unveil strategies and innovations driving financial success in the dynamic food and beverage landscape. Tailored to meet the unique challenges of the hospitality industry, this expo offers practical solutions and innovative ideas for unlocking untapped revenue streams. From single-unit operators to national chains and hospitality groups, attendees will gain valuable insights from experts and successful entrepreneurs, participate in exclusive conference sessions, discover cutting-edge solutions, sample trends from 500 suppliers, and acquire actionable knowledge to enhance their bottom line.

 

March 18-20, 2024, Las Vegas, NV

Show website

 

International Pizza Expo 

Experience the ultimate pizza extravaganza at the International Pizza Expo, celebrating its 40th year of delivering fresh content, thrilling competitions, and exciting events. As the largest event in the pizza industry, thousands of professionals gather in Las Vegas, Nevada, for three days dedicated to everything pizza. Attendees can expect a global showcase of suppliers, networking opportunities, educational sessions led by industry experts, and national competitions, making this event truly unparalleled in the world of pizza.

 

March 19-21, 2024, Las Vegas, NV

Show website

 

Summer Fancy Food Show

Celebrating its 68th year, the Summer Fancy Food Show in New York City has evolved alongside American food culture since its inception in the post-war era of the 1950s. Initially focused on European imports, the show has expanded to showcase diverse of specialty foods, reflecting evolving consumer preferences and behaviors. Hosted by the Specialty Food Association, this event brings together thousands of producers and tens of thousands of attendees annually, serving as a vibrant gathering to celebrate flavor, innovation, and community within the specialty food industry.

 

June 23-25, 2024, New York City, NY

Show website

 

Western Food Expo 

Join thousands of industry professionals from various sectors at the Western Foodservice & Hospitality Expo, from August 25-27, 2024, at the Los Angeles Convention Center. This premier event offers access to the latest menu trends, cutting-edge design and decor, valuable business education sessions, and a diverse range of leading vendors and suppliers. Attendees can participate in live culinary demonstrations, awards ceremonies, roundtable discussions, and program tracks covering Hot Topics, Bar & Beverage, Marketing & Social Media, and Operational Excellence. This event is exclusively for industry professionals aged 18 and above; no children or strollers are permitted on the show floor.

2019 Western food expo
Western Food Expo Exhibitor in 2019

August 25-27, 2024, Los Angeles, CA

Show website

 

 

Sources:

Westernfoodexpo.com
pizzaexpo.pizzatoday.com
barandrestaurantexpo.com
Openai.com

 

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Gen Z Takes Over: How Authenticity is Reshaping the Restaurant Scene

Feb 23, 2024

Forget flashy gimmicks and picture-perfect plating: Gen Z demands something different from their dining experiences. They crave authenticity, and restaurants that can deliver are winning their hearts (and stomachs). But what exactly does “authentic” mean to this generation, and how can restaurants adapt to their evolving preferences?

 

Transparency is Key: Gen Z is hyper-aware of the world around them, and they expect the same from their restaurants. They want to know where their food comes from, how it’s prepared, and the values behind the business. This means clear labeling, responsible sourcing, and ethical practices are not just nice-to-haves but dealbreakers.

 

Beyond the Plate: Authenticity goes beyond just the food itself. Gen Z values experiences that are genuine and inclusive. They want restaurants that celebrate cultural diversity, embrace individuality, and create a welcoming atmosphere for everyone. This could mean anything from diverse menus and staff to community events and social initiatives.

 

Flavor with a Cause: Sustainability and social responsibility are top of mind for Gen Z. They’re drawn to restaurants that are committed to minimizing their environmental impact and supporting local communities. This could involve using eco-friendly packaging, sourcing from local farms, or partnering with charities.

 

 

Tech-Savvy Diners: Gen Z is the most digitally connected generation yet. They expect restaurants to be on top of their digital game, with seamless online ordering, engaging social media presence, and loyalty programs that cater to their preferences.

 

So, how can restaurants adapt to these evolving demands? Here are some tips:

  • Embrace transparency: Share your story! Highlight your sourcing practices, sustainability efforts, and community involvement.
  • Celebrate diversity: Offer a menu that reflects different cultures and backgrounds and create an inclusive environment for all.
  • Make a difference: Partner with local causes, use eco-friendly practices and show Gen Z you care about the same things they do.
  • Get digital: Invest in a user-friendly online ordering system, engage with your audience on social media, and offer tech-savvy loyalty programs.

By embracing authenticity in all its forms, restaurants can tap into the powerful Gen Z market and build lasting relationships with a generation that values truth, experience, and making a difference. Remember, it’s not just about the food; it’s about creating a meaningful connection with your customers.

 

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TikTok Trends Taking Over Restaurant Menus

Feb 23, 2024

Move over, food blogs and celebrity chefs – a new trendsetter in town is shaking up the restaurant industry: TikTok. The social media platform, known for its short, catchy videos, now influences what ends up on our plates.

Chefs are increasingly turning to TikTok for inspiration and menu ideas, and diners are flocking to restaurants to try the latest viral food trends. From the Sleepy Girl Mocktail to burn-away cakes, Chickles, Turkish Breakfast, and chopped Italian sandwiches, these trends are spicing up menus and bringing in new customers.

So, what’s behind this TikTok takeover? Let’s explore some of the reasons why chefs and consumers are embracing these viral trends:

  • Uniqueness and creativity: TikTok is a breeding ground for new and innovative ideas. Chefs can discover unique flavor combinations, cooking techniques, and presentation styles to incorporate into their menus.
  • Engagement and reach: With its massive user base, TikTok offers an excellent way for restaurants to reach new customers and generate buzz. A viral video can turn a small, local restaurant into a national sensation overnight.
  • Authenticity and relatability: Unlike food blogs and celebrity chefs, everyday people often create TikTok content. This authenticity resonates with diners looking for more genuine and relatable food experiences.

Of course, not all TikTok trends are created equal. Some are simply fads that fade away quickly, while others have the potential to stay on menus for longer. The key for restaurants is to identify trends that align with their brand and target audience and to execute them in a way that is both creative and delicious.

So, the next time you’re scrolling through TikTok, pay attention to the food trends you see. You might discover your new favorite dish!

Here are some additional tips for restaurants looking to capitalize on TikTok trends:

  • Create your own TikTok account: This is a great way to showcase your restaurant’s personality and connect with potential customers.
  • Participate in challenges and trends: This is a fun way to get your restaurant noticed and generate buzz.
  • Use high-quality visuals: Food is all about visual appeal, so make sure your TikTok videos are mouthwatering.
  • Run contests and giveaways: This is a great way to encourage engagement and grow your following.

By embracing TikTok trends smartly and strategically, restaurants can tap into a new generation of diners and boost their business. So, get creative, have fun, and see what delicious trends you can cook up!

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Upselling for Success: Techniques to Boost Restaurant Profits

Feb 23, 2024

In the competitive restaurant industry, maximizing profits is crucial for survival and growth. While attracting customers is vital, upselling can significantly increase your average bill value and boost your bottom line. But upselling isn’t just about pushing extra items; it’s about offering valuable recommendations that enhance the dining experience for your guests.

 

The Top Restaurant Upselling Techniques:

  1. Highlight Menu “Goldmines”: Identify dishes with high-profit margins and promote them subtly through strategic placement on the menu, descriptions that emphasize unique ingredients or preparation methods, and server recommendations.
  2. Create Compelling Combos: Offer curated pairings of dishes, appetizers with main courses, or drinks with desserts. This presents a complete dining experience and encourages customers to try something new.
  3. Timely Suggestions: Recommend seasonal specials, limited-time offers, or dishes that complement the customer’s initial choices. Pay attention to their conversation and tailor your suggestions accordingly.
  4. Focus on Benefits: Don’t just list features; emphasize the benefits your upsell offers. For example, instead of saying, “Add fries for an extra dollar,” mention, “Upgrade your meal with our hand-cut, sea-salted fries for a truly satisfying experience.”

  5. Limited-Quantity Options: Create a sense of urgency and exclusivity by offering limited-quantity upsells. This can be a special appetizer available only for the first few orders or a dessert made with seasonal ingredients.
  6. Use Positive Language: Avoid phrases like “add on” or “upgrade,” which can sound pushy. Instead, use words like “complement your meal,” “complete your dining experience,” or “we recommend trying this delicious addition.”
  7. Train Your Staff: Empower your servers with knowledge about the menu, upsell techniques, and effective communication skills. Regular training ensures they confidently recommend dishes with genuine enthusiasm.
  8. Track Your Results: Monitor which upselling techniques are most effective and adjust your approach accordingly. Analyze data to see which menu items are upselling well and which need a different approach.

 

Remember, upselling is not about being aggressive; it’s about offering added value to your customers. You can effectively upsell without compromising customer satisfaction by focusing on genuine recommendations, building rapport, and providing a positive dining experience.

 

Bonus Tip: Consider offering small upsells, like additional toppings or larger portions, to make the initial step more approachable for customers.

 

Mastering the art of upselling is a gradual process that requires dedication and practice. However, the rewards for increased profit margins and enhanced customer experiences are worth the effort. By implementing these upselling techniques, your restaurant can boost profit margins, elevate its success, leave a lasting impression on customers, and encourage positive word-of-mouth referrals.

 

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What Does a Restaurant Operations Consultant Do?

Feb 20, 2024

In an industry commonly viewed as “cut-throat,” the role of a restaurant operations consultant has become increasingly vital for a foodservice operation’s survival and growth. These professionals serve as trusted advisors, bringing specialized expertise and insight to help restaurant owners and managers navigate the complexities of running a successful establishment. From conducting comprehensive assessments to identifying areas for improvement, developing strategic plans, and providing ongoing support, restaurant operations consultants play a crucial role in enhancing efficiency, profitability, and overall performance.

 

A restaurant consultant is crucial to your restaurant’s success in 2024 for several reasons:

  • In 2023, restaurateurs saw a slight improvement in staffing shortages compared to previous years, with 18% reporting no shortages, a significant increase from 2022. However, most operators (82%) still faced shortages, albeit fewer than before.
  • Costs are cutting into profits as the National Restaurant Association’s 2024 State of the Restaurant Industry report found that 38% of operators said their restaurants were not profitable last year. 98% of operators said higher labor costs are an issue for their restaurant, and 97% cited higher food costs.
  • The What’s in Store for 2024 whitepaper from Technomic says that in 2024, due to high prices and sagging consumer confidence, operators are urged to embrace technology, innovate their menus and services, ensure continuity in the consumer experience, and capitalize on available ingredients or resources wherever feasible.

 

Restaurant Operations Consultant Overview

A restaurant operations consultant provides expert advice and assistance to restaurant owners and managers to improve various aspects of their operations. Here’s a breakdown of what they typically do:

 

Assessment: They conduct a thorough evaluation of the restaurant’s current operations, including its processes, systems, staffing, menu offerings, customer service standards, and financial performance. This assessment often involves observing day-to-day operations, analyzing data, and interviewing key staff members.

 

Identify Areas for Improvement: Based on their assessment, they identify areas where the restaurant can improve efficiency, profitability, and overall performance. This could include streamlining workflows, optimizing menu offerings, reducing waste, improving customer service training, or implementing new technology solutions.

 

Developing Strategies and Plans: They work closely with the restaurant management team to develop customized strategies and action plans to address identified issues and achieve specific goals. This may involve recommending changes to operational processes, menu design, pricing strategies, marketing initiatives, or staff training programs.

 

Implementation Support: They provide support and guidance to implement the recommended changes effectively. This could involve training staff in new procedures, helping to redesign the layout of the restaurant space, assisting with menu development, or providing ongoing coaching and support to ensure successful implementation.

 

Monitoring and Evaluation: They continuously monitor the restaurant’s performance after implementing changes to assess their effectiveness and adjust as needed. This may involve analyzing financial data, conducting customer surveys, observing operations, and gathering feedback from staff and customers.

 

A restaurant operations consultant is critical in helping restaurant owners and managers overcome challenges, improve efficiency, and achieve long-term success in a competitive industry. Their guidance and expertise, empower restaurants to overcome challenges, adapt to changing market dynamics, and ultimately achieve long-term success in an ever-evolving industry.

 

Restaurant Consultants: Los Angeles and Worldwide

Contact Synergy Restaurant Consultants today to learn more about our proven operations assessment process. At Synergy, we’re dedicated to helping you streamline operations and innovate, boosting your bottom line. If you’re ready to elevate your restaurant’s efficiency and drive success, let’s talk.

 

Sources:

Technomic.com
Touchbistro.com
restaurant.org
Openai.com

 

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Off-Premise Eating: 9 Tips for Take Out and Delivery Success

Feb 13, 2024

In an era shaped by convenience and evolving lifestyles, especially post-COVID, consumer preferences continue to gravitate toward the ease and efficiency of delivery and takeout services. Despite fluctuations in the dining landscape, the demand for off-premise dining experiences remains robust.

 

What is Off-Premise Dining?

Off-premise dining refers to consuming food and beverages outside of the traditional dining establishment, such as restaurants, cafes, or bars—literally. This includes options like takeout, delivery, drive-thru, curbside pickup, catering, and food truck services. In off-premise dining, customers order their meals remotely and enjoy them in their chosen location, whether it be at home, at work, or on the go. This model has gained significant popularity in recent years, driven by changing consumer preferences, technological advancements, and the convenience it offers busy individuals and families. COVID-19 proved to amplify off-premise dining as consumers were essentially banned from indoor dining for quite some time.

A 2021 study by Nextbite, a virtual restaurant leader, revealed that food delivery is increasingly popular among consumers. Forty-three percent of respondents order food delivery at least once a month, with 23% doing so weekly. While millennials remain the most frequent users, older age groups also embrace delivery, with 40% of monthly users over 40. Gen Z, in particular, shows high interest, with an average income of $119K, indicating a lucrative market for restaurants offering delivery options. The study surveyed 3,012 consumers across the United States in Fall 2021.

 

Implementing and catering to take-out and delivery options at restaurants requires a comprehensive approach that addresses various aspects of the operation. Here are some strategies to effectively do so:

 

Streamlined Ordering Process: Simplify the ordering process through an intuitive and user-friendly online platform or mobile app. Ensure that customers can easily browse the menu, customize their orders, and securely complete transactions.

 

Efficient Packaging Solutions: Invest in packaging that maintains food quality and presentation during transit. Consider eco-friendly options while ensuring durability and spill-proof designs. There’s nothing fun about scooping soup out of the bottom of a plastic bag.

 

takeout containers
To-go containers

 

Optimized Menu Selection: Curate a menu tailored specifically for takeout and delivery, focusing on items that travel well and maintain freshness. Offer convenient meal bundles or family-sized portions to appeal to larger groups. In 2023, IHOP introduced portable menu items–Pancake Tacos–to cater to off-premise dining, which accounts for 20% of their sales.

 

Accurate Delivery Estimates: Provide accurate delivery time estimates to manage customer expectations and enhance satisfaction. Utilize technology to track orders in real time and communicate any delays promptly.

 

Seamless Delivery Logistics: Partner with reliable third-party delivery services or establish an in-house delivery team to ensure timely and efficient deliveries. Monitor performance metrics and address any issues promptly to maintain service quality.

 

Promotional Offers and Loyalty Programs: Implement promotional offers, discounts, and loyalty programs to incentivize repeat orders and foster customer loyalty. Utilize targeted marketing campaigns to promote take-out and delivery options to your existing customer base. In 2023, Panda Express launched its first national rewards program, Panda Rewards, offering guests personalized points for every dollar spent, including surprises and exclusive gifts.

 

Enhanced Communication Channels: Maintain open communication channels with customers through email, SMS, or push notifications to provide updates on promotions, new menu items, and order statuses. Promptly address customer inquiries and feedback to build trust and loyalty.

 

Consistent Quality Control: Establish strict quality control measures to ensure food is prepared to the same standards as dine-in orders. Train staff members on proper packaging techniques and food handling practices for off-premise orders.

 

Data Analysis and Optimization: Leverage data analytics to gain insights into customer preferences, ordering patterns, and popular menu items. Use this information to optimize menu offerings, pricing strategies, and operational efficiency.

 

By implementing these strategies, restaurants can effectively cater to take-out and delivery options, providing customers with a seamless and satisfying experience while maximizing revenue opportunities.

 

Sources:

Webrestaurantstore.com
Pymnts.com
Prnewswire.com
openai.com

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2024 State of the Restaurant Industry Report

Feb 08, 2024

To navigate the exciting developments and emerging trends in the foodservice industry, we focus on the highly anticipated “2024 State of the Restaurant Industry Report” from the esteemed National Restaurant Association. This comprehensive report promises to unveil the latest insights, challenges, and innovations shaping the dynamic world of restaurants in the year ahead. Join us as we delve into the culinary world, exploring the evolving tastes, preferences, and strategies that will define the foodservice landscape in 2024.

 

Growth Will Continue

In 2024, the foodservice industry is poised for unprecedented growth, with projected sales soaring to a record-breaking $1.1 trillion, according to the National Restaurant Association (NRA). This optimistic forecast is backed by insights from the NRA’s annual “State of the Restaurant Industry” report, which draws from surveys of operators and consumers, and analyses from NRA economists. The restaurant and foodservice industry is on track for substantial growth, expected to add 200,000 jobs, reaching a total employment of 15.7 million people.

 

Operators demonstrate remarkable resilience despite rising food costs, labor expenses, and lingering pandemic-induced debts. While 45% of operators anticipate consistent sales compared to 2023 figures, 33% expect an increase. However, concerns about profitability persist, with only a quarter of operators predicting higher profits. Staffing shortages remain a significant issue, with over 40% reporting inadequate employees to meet demand, prompting a greater reliance on technology for labor solutions.

Operators increasingly turn to technology to address challenges such as labor reduction, cost-cutting, and business enhancement, integrating tech solutions across various operations. However, consumers still value human hospitality in their dining experiences despite the reliance on technology.

 

Key findings from the “2024 State of the Restaurant Industry Report” highlight the following:

 

  • Intensifying competition, as noted by 45% of operators.
  • Rising costs, with labor and food costs being significant concerns for operators.
  • Consumer cautiousness regarding spending, with an emphasis on value propositions.
  • Strong consumer affinity for restaurants, driven by the enjoyment of unique flavor experiences.
  • Off-premises dining remains a crucial trend for operators, with over half of consumers, especially 67% of millennials and 63% of Gen Z, considering ordering takeout from restaurants an essential aspect of their lifestyle.

The report, compiled by the National Restaurant Association, serves as the authoritative source for industry projections and trends. It analyzes economic conditions, operational dynamics, workforce trends, and culinary preferences to provide insights into sales forecasts and market trends for the year ahead. Despite ongoing challenges, the industry remains dynamic and resilient, poised for continued innovation to meet evolving consumer demands.

 

Sources:

https://restaurant.org/research-and-media/research/research-reports/state-of-the-industry/

https://www.foodbusinessnews.net/articles/25507-restaurant-sales-forecast-to-exceed-11-trillion-in-2024

openai.com

 

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New Restaurant Laws in 2024 for California

Feb 01, 2024

With the dawn of a new year comes a fresh wave of legislation, particularly impacting eateries across California. These new laws set standards for business operations and reflect evolving societal values regarding labor rights, environmental stewardship, and public health. As we delve into these regulations, we’ll explore their implications for restaurants and what you need to know to stay compliant.

 

California is enacting a slew of new laws in 2024 that touch on various sectors, signaling significant shifts in labor rights, consumer protection, and business practices statewide.

 

AB 1228: One hotly contested bill– Assembly Bill 1228— heralds a milestone in labor rights by raising the minimum wage for fast-food workers to $20 an hour at major chains. This increase takes effect on April 1, 2024. While this move champions economic equity and provides financial stability for workers, it poses operational challenges for businesses navigating increased labor costs. Adaptation strategies, such as adjusting pricing structures or optimizing workflow efficiencies, may be imperative to maintain profitability without compromising employee welfare. It is interesting to note that AB1228 does not consider establishments that bake bread for sale on its premises to be fast-food restaurants, thus exempting such facilities from having to follow this law.

 

SB 1383: Meanwhile, Senate Bill 1383 aims to reduce waste in landfills while addressing food insecurity. Mandating larger establishments, including hotels and restaurants, to donate surplus food to food recovery organizations underscores a concerted effort to mitigate environmental impact and support vulnerable communities. While this initiative aligns with sustainability goals, it necessitates logistical coordination and adherence to strict guidelines to ensure food safety standards are upheld.

 

SB 478: Furthermore, Senate Bill 478 prohibits hidden charges on purchases, a measure aimed to enhance transparency and consumer trust. While intended to curb exploitative practices, such as undisclosed fees, its implementation requires businesses to recalibrate pricing strategies and communicate openly with customers. SB478’s banning hidden fees won’t prevent restaurants from using service charges, clarified the attorney general’s office, alleviating fears within the dining industry. The law targets “junk fees,” aiming to ensure transparency in pricing, but restaurants can continue to charge service fees as long as they’re disclosed in advertised prices. The Golden Gate Restaurant Association seeks further clarification and guidance from the attorney general’s office as SB478, signed earlier in October, takes effect on July 1, 2024.

 

SB 616: Senate Bill 616 ensures California’s part- and full-time employees receive 40 hours or five days of paid sick leave per year, effective January 1, 2024.

 

AB 1325: One significant change is the implementation of Assembly Bill 1325, which extends opportunities for home-operated food businesses to thrive. By raising the earnings threshold to $100,000 annually, these enterprises are poised for growth, fostering entrepreneurship while diversifying the culinary scene. However, compliance with food safety standards and regulatory requirements remains paramount to ensure consumer well-being.

 

As these laws come into effect, the restaurant landscape in California is poised for transformation. While some establishments may encounter initial hurdles in adapting to regulatory changes, proactive engagement and strategic planning can position them for long-term success. By embracing innovation, sustainability, and inclusivity, eateries can navigate the evolving regulatory landscape while catering to the diverse needs of patrons and communities alike.

 

 

Sources:

Sacobserver.com
sfchronicle.com
calrecycle.ca
sf.eater.com
businessinsider.com
Kcrw.com
Openai.com