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The Importance of Guest’s Price/Value Perception

Mar 26, 2023

Maximizing the price/value perception of restaurant guests can be achieved through the following methods:

 

    • Offer quality ingredients: Using high-quality ingredients can improve the perceived value of a dish. Guests are more likely to pay higher prices for dishes that use premium ingredients.
    • Portion control: Proper portion control is essential to ensure guests feel satisfied with their meals. Small portions can leave guests unsatisfied, while overly large portions can lead to waste.
    • Presentation: The visual appeal of a dish can significantly affect how guests perceive its value. Plates beautifully presented and garnished can make guests feel they are receiving a higher-value dish. Restaurants should create visually appealing dishes that look appetizing and are Instagram-worthy.
    • Menu descriptions: How a menu item is described can greatly affect how guests perceive its value. Descriptive language that highlights the quality of the ingredients and the skill required to prepare the dish can increase the perceived value of a dish.
    • Offer unique menu items: Restaurants can differentiate themselves from competitors by offering unique menu items not commonly found at other restaurants. This can help to increase the perceived value of a dish.
    • Offer promotions: Promotions like happy hours, discounts, and value meals can help to improve the perceived value of a restaurant’s offerings. Guests are more likely to feel that they are getting a good deal when a special offer is attached to a dish.restaurant deals

 

  • Train staff to upsell: Restaurant staff can help increase a dish’s perceived value by upselling complementary items, such as wine or dessert.
  • Customize dishes: Offering the ability to customize dishes can help guests feel they are receiving a personalized experience. This can help to improve the perceived value of the meal.
  • Excellent service: Providing exceptional service can improve guests’ overall dining experience and increase the perceived value of a meal. Friendly, attentive service can make guests feel they are receiving a high-value experience.
  • Create a comfortable ambiance: A restaurant’s ambiance can significantly impact a meal’s perceived value. Creating a relaxed and inviting atmosphere helps increase the perceived value of a meal.
  • Provide transparent pricing: Being transparent about menu prices can help to build trust with customers and increase the perceived value of a meal.

 

By implementing these methods, restaurants can maximize their guests’ price/value perception, leading to increased customer satisfaction, loyalty, repeat business, and ultimately increased revenue.

 

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Loyalty Programs: What are Leading Restaurants Doing?

Jan 25, 2023

Gone are the days of punch cards and membership programs for restaurants. It’s the dawn of a new era of dining that includes extras, games, and loyalty. We’re not going to say it isn’t worth eating out if you don’t belong to a loyalty program, but we are saying it makes it more enticing and fun.

 

Rewards through apps have been a mainstay for a few years now. Some big players include McDonald’s, Taco Bell, and Starbucks. Most recently, though, bigger and smaller chains have been upping their rewards programs, says Nation’s Restaurant News, with nearly 60% of all restaurants utilizing one.

 

The importance of having a loyalty program for a restaurant boils down to repeat customers, says Restaurant News. It’s fantastic to get new customers but to keep them coming back and choosing your place to eat is what makes the programs so valuable. In this digital age, if a customer doesn’t choose you, they’re going to choose from a third party, says the article, because it’s just easy. Since the pandemic began, loyalty programs have been gaining popularity, and the good news is that it isn’t just for the big guys. Small businesses can also gain revenue from these programs and at a relatively small cost, says Restaurant News.

 

One of the smaller chains taking hold of the loyalty opportunity is a New York-based tea concept called Cha Cha Matcha, says NRN. Teaming up with the membership platform, Hang, the tea restaurant is traveling into the metaverse through subscriptions and point systems. Both in-person and online customers can gain rewards for free or access a paid subscription. Customers can unlock rewards like exclusive menu items, raffles, events, and early access to new products in the paid subscription. Cha Cha Match is the first brand to “officially launch a successful Web3-powered loyalty program,” said NRN.

 

Upping their Restaurant Loyalty Perks

 

Upping their loyalty game, literally, is Jimmy John’s, by ‘gamifying’ their rewards, says NACS. In their new app, customers can earn badges to earn food and products from the company. Customers need to purchase 25 Jimmy John’s core menu sandwiches in the latest challenge by March 15th to earn their “Gauntlet Badge.” Earning this will give you a Jimmy Chips beanbag chair. The company, throughout the year, will be releasing new and secret badges to entice customers, says the article, although they may not all be as big as “The Gauntlet.”

restaurant rewards

 

Chipotle has also joined the ranks of launching a new loyalty program called “Freepotle,” says Chewboom. This reward program offers customers up to ten free “food drops” throughout the year. Customers who are already Chipotle Rewards members will be automatically enrolled in Freepotle and get their first food drop which is either a topping of guacamole or a free side. Those who are not can join by March 6th and get their food drop too. Those free ten food drops throughout the year include (more) free guac, Queso Blanco, chips, drinks, and double protein.

 

Choosing where to dine out these days is about more than just food. It’s about what else you can get for free. With all the competition surrounding loyalty programs and rewards, it’s about enjoying the food you love and earning points to get more of it.

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How To Implement Catering at Your Restaurant

Oct 31, 2019

Convenience is huge in the foodservice industry. Think about how many restaurants you know that offer online ordering and delivery. 34% of consumers utilize , options more often than a year ago, according to a recent survey conducted by Technomic and the National Restaurant Association. The same study also found that 39% of consumers say they use drive-thru more than they did a year ago. Clearly, to-go dining accounts for a substantial portion of off-premise sales.

But say you’ve got that covered—you’ve partnered with a third-party delivery service, and you even have a drive-thru window. However, you’re still looking for ways to increase off-premise sales. It may make sense for your restaurant to expand into catering. Offering catering to your patrons gives them yet another avenue of convenience, whether they need large meals for office luncheons, holiday parties, birthdays, or other special occasions. David Meiselman, CMO of ezCater stated that catering makes up 18% of sales on average at restaurants that offer it. Did you know that KFC and Chic-fil-A offering catering? The sandwich chain Potbelly has rolled out delivery and catering in all its locations. But how feasible is it to integrate a catering program into your sales strategy? What about the costs and logistics? Here are some things to consider:

  • Choose your format: Figure out whether you want to offer full-service catering, carryout, drop-off, or all.
  • Simplify your catering menu: You don’t want to allow your guests to order anything en masse from your menu. Limit your catering menu to a few items, including your best sellers and sides, to allow for quicker and more efficient cooking and prep time.
  • Calculated pricing: When thinking about how to price your catering items, consider the fees associated with catering and factor them in. These costs may include transportation, packaging, and other expenses as it relates specifically to your catering operation. It’s a good idea to see what your competition is charging, too.
  • Get your kitchen ready: Make sure your kitchen has adequate space and equipment to accommodate large orders. This includes counter space, refrigerators, cookware, ovens, burners, and more.
  • Don’t forget to market: You won’t get a catering order if you don’t market it! Make it known on your website, emails, printed menus, Yelp, social media profiles, banners, and signage that you offer catering.

It’s a strategic move to transition into catering, but not necessarily an easy one. However, when done correctly, it’s a decision you’ll be glad you made. If you’d like professional advice on how to implement restaurant catering into your operation, please contact Synergy.

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Are Hybrid Restaurant Concepts the Answer to the Surging Take-Out Trend?

Oct 28, 2019

“A mega trend that looks to grow tenfold over the next decade.”

This is what Swiss investment giant UBS said about the online food delivery trend after its in-depth research arm Evidence Lab released the findings of an intensive report in 2018.

“We estimate the global online food ordering market could grow more than tenfold over the next decade or so, to $365 billion by 2030 from $35 billion today. The ramifications could be substantial. We see a bright future for food delivery platforms, and positives for the restaurant sector as delivery adds a further growth engine.”

Is ‘Netflix and Chili’s’ here to stay

As home television screens get bigger and entertainment streaming services more comprehensive, people cocooning themselves at home most nights doesn’t appear to be a passing fad. We can now order from our favorite restaurants on an app and have the food brought right to our doors without making reservations, fighting traffic, or enduring long waits for a table.

This is a great way to satisfy an immediate craving, but it would be incredibly unfortunate if the art of dining out gets lost in the push for convenience. There is still much to be gained by meeting friends, enjoying the atmosphere of a great restaurant, and having an interpersonal exchange with your dining companions and service personnel. Not to mention experiencing food prepared and presented as it was meant to be – fresh to order, delivered to your table at the proper temperature.

Some additional numbers

According to an October 2018 column by Forbes Food and Drink senior contributor, Alicia Kelso, “statistics for off-premise dining are staggering.” She cites a study by CHD Expert indicating that restaurants are going all-in on these options.

  • Takeout for pickup is projected to generate $124 billion in sales this year
  • Takeout with direct delivery from a restaurant: $32 billion
  • Takeout with delivery from a third-party delivery company: $13 billion
  • Catering for pickup or delivery: $40 billion

The explosion of online ordering fills more than an “in-between” niche. People who are busy with work, commutes, kids’ activities, meetings and events don’t have to settle for frozen or fast food for speed and convenience. Just a few short years ago, cities such as New York or San Francisco were the envy of much of the rest of the United States because they had delivery options that varied outside the realm of pizza and occasional Chinese to “you can have anything delivered!”

Now, with apps like GrubHub, Postmates, DoorDash, and UberEats, a variety of delivery options are available for cities large and small throughout the country. You can get food as basic as Burger King to items as indulgent as rack of lamb and lobster delivered to your door, depending on which of your local restaurants are partnering with the third-party delivery services and what menu items they’re offering.

But how do restaurants maintain excellent food and brand standards when product is not being conveyed in a controlled environment that helps provide optimal quality?

Before we answer that, let’s first examine some of the pros and cons of offering online delivery:


The good and the bad of online delivery

Pros

  • Extends reach beyond normal geographic range, introducing your restaurant to an audience it might have previously missed
  • An additional revenue stream that can transcend seasonal cycles and build towards large orders, etc.
  • Helps customers discover favorite menu items to create repeat business
  • Great marketing reach and impetus to customers coming in for full dining experience

Cons

  • Menu items are not presented at ideal temperature, timeliness or presentation
  • There is little room for error; incorrect or inadequate orders are not easily rectified as they are in-store. This may result in customer annoyance far greater than a situation where a manager can quickly control and solve.
  • To-go orders, particularly large orders, take a lot of additional organization, packaging and production space. For instance, all sauces and condiments must be on the side, menu items often need to be deconstructed, so one element doesn’t compromise another, etc.

Logistics, logistics, logistics

To-go drivers wading through a crowd of in-house diners and those waiting to be seated can be chaotic, to say the least. Sufficient space and manpower to properly execute high delivery volume or large catering orders are becoming a necessity for many restaurants. The needs for this niche are so demanding, creating a proper workspace could require remodeling the front or back of the house or both. Parking adjustments should also be made.

As mentioned above, there is a very small margin of error and the best way to minimize a confusing clash of takeouts and dine-ins is by providing team members organized space from which to work. If one Uber Eats driver accidentally receives an order meant for another, it will likely result in two separate parties being extremely unhappy.

Takeout packaging areas should be designed for maximum efficiency the same way the line and the expediting areas are. All common tools should be in easy reach, which includes condiment cups, containers, wraps, utensils, bags, etc. Anything the team member needs, such as dressings, garnishes, condiments, etc., should also be easily accessible.

When evaluating a dine-in order in the kitchen, the chef and/or expediter can easily do a visual assessment to ensure every plate is correct. This is not nearly so easy for takeout. Once an order is packed away, viewing a menu item is difficult, particularly when using any eco-friendly packaging that isn’t transparent plastic. Every time a container is opened to check for accuracy, you expose the item to air, which increases the risk of it getting cold or stale.

Wood Ranch debuts WR Kitchen & Bar to rectify this challenge

It’s taken time, commitment and care to build your brand, reputation, following and customer relationships. Those who love what you offer are the heart of your company’s success. The last thing you want to do when keeping up with evolving trends is to turn your back on your brand’s history and loyal supporters.

In the evolution of every restaurant or product, there will be times when you need to evaluate what is working, what is not, and how you translate any changes to be consistent with what people already love and trust about you. If you betray the trust of your brand loyalists and brand ambassadors, you may deeply undermine your company’s reputation. So how do you weather seismic shifts in the market without risking that trust and loyalty? The leadership team at Wood Ranch had an idea for the rising costs of running a restaurant with a large footprint, requiring significant staffing day and night while a share of its business was converting to pickup or delivery options.

Known for its cozy, dark-wood, rustic atmosphere, the flagship brand was having difficulty translating to lighter, brighter, faster restaurant trends. But those who know and love Wood Ranch expect the traditional architectural and thematic elements.

What if they created a sub brand that wasn’t a replacement of their flagship but an extension? It could solve many of the dilemmas the company was facing without undercutting its existing brand elements. The solution: WR Kitchen & Bar, a “more casual dining brand with a smaller format and streamlined ordering system,” according to media reports announcing the first location in Laguna Niguel, California. It opened May 2019, and a second location is set to open in Carlsbad, California in the fall.

Not an overnight decision

According to media reports announcing the new concept, the operators of Westlake Village-based Wood Ranch had been considering the idea of opening a smaller-format concept for more than eight years. Rising costs of maintaining Wood Ranch was becoming prohibitive and they wanted to find a way to offer more value to guests with a new twist. Leadership was clear that they didn’t want the new concept to be fast-casual but they did integrate some of the more efficient elements to form their hybrid idea.

The full bar element elevates it from any fast-casual confusion, even if the ordering/delivery element is a bit more automated than most full-service establishments.

When diners enter, they see a bar that goes along the length of the restaurant. This is where diners order food and drink, similar to how it’s done in London pubs. The bar has three ordering stations.

Once they’ve ordered, diners receive a pager and can seat themselves at any available table. There are servers on the floor who will assist with additional food and drinks, though non-alcoholic beverages can be refilled at a self-serve station. Customers pay via iPad on tables for those who have ordered from the table.

The quality of food, drinks, and friendliness of the staff are all designed to maintain the level Wood Ranch has cultivated since it first opened in 1992, an era known for big restaurant footprints and large portion sizes. Other similar concepts, like Claim Jumper, also based in Southern California, are now struggling because a unique course correction couldn’t be made in time to keep the flagship afloat in shifting trade winds.

It will be interesting to see where this goes. When a company with a 27-year history understands it needs to pivot without making a full about-face, maybe that will spur the innovation of others facing similar challenges.

Innovation and a clear understanding of goals and challenges are key. Restaurants considering such a significant shift should consider bringing in the expertise of a consultancy. They can help you address every element of the change, from branding and product to operations and marketing logistics.

Sources: https://www.forbes.com/sites/aliciakelso/2018/10/31/restaurants-turning-to-off-premise-channels-to-gain-share/ https://upserve.com/restaurant-insider/restaurant-industry-trends/

https://www.restaurant-hospitality.com/new-restaurant-concepts/wood-ranch-bbq-grill-turns-small-hybrid-concept-efficiency

https://www.cnbc.com/2017/09/19/how-restaurants-are-adapting-to-the-food-delivery-boom.html

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Increasing Sales: A Simple Strategy for Restaurants

Oct 18, 2019

Synergy was hired by a restaurant to help them develop a new concept by recommending a range of strategies to help them improve food, beverage, and sales. We helped them realize their potential and gave them a clear food vision that would address and meet their financial goals.  With increasing labor costs, they did not want to raise menu prices as that can often be problematic with their loyal customer base. So instead, we addressed the problem by re-engineering the menu and upgrading several items to optimize margins and improve profitability. The changes encouraged customers to try new and exciting offerings, which increased check averages while keeping the core menu prices stable. 

The specific strategy we recommended was implementing a simple “game.” We encouraged our client to focus on those quick wins by playing the $3 Game. The rules? Look for ways to increase their average check by just $3. That’s it.

We were thrilled to get an update from the client last week. They took our recommendations and, utilizing the $3 Game, were able to achieve a $4.22 increase per spiny lobster dish as compared to last year. They also made the recommended change of offering this very well-received dish every day, instead of only a few days a week.  

A robust menu is a restaurant’s best-selling tool, and if you don’t create reasons for people to spend more money, you are not optimizing your potential revenue!

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Playing the $3 Game

Jun 27, 2019

Need to increase restaurant sales quickly but not sure where to start? Focus on small wins for big gains.

When single-unit operators contact us for help, most often they’re concerned about sales and operating costs, or both. With rising wages and increased competition — not to mention hefty third-party delivery fees — operators know they need to reign in expenses and boost their efficiency. Fast.

Oftentimes the best place to start is with an in-depth operations assessment. When we visit a client’s restaurant to analyze their operations, we bring a small team who homes in on all parts of the business, from the flow of food down the cooks’ line to taking inventory to steps of service to food quality and presentation. This list merely scratches the surface of what we do. Our goal is to do a deep dive into every aspect of our client’s restaurant to uncover opportunities for greater efficiency and innovation. While we’re delving into the intricacies of production pars, labor utilization, and ticket times, we often uncover “low-hanging fruit,” or quick fixes that our client can put into practice right away to reduce operating costs or bump up their sales.

During an in-depth operations assessment with a client last year who needed to kick-start sales, we encouraged the client to focus on those quick wins by inventing the $3 Game. The rules were simple — look for ways to increase their average check by $3. That’s it.

The client knew that they needed to overhaul a number of basic operating systems in their restaurant, from the POS technology to inventory management to training programs. This amount of change often feels daunting for clients. While these large-scale changes needed to happen, we wanted to show our client that they could make an immediate sales impact by getting creative and making some simple changes.

We kicked off the game with a few suggestions:

· Give the customer a reason to spend more money: Since higher-priced luxury items like steak sold well, add a great ribeye steak as a weekend special.

· Increase perceived value by the customer: By elevating cocktail garnishes with over-the-top touches, the customer sees greater value and is more willing to pay extra.

· Create a sense of urgency: Feature and promote high-value seasonal items on your menu to drive traffic and sales margins.

Game on! The client gladly accepted our challenge by:

· Increasing sales by improving plate presentations on a few underperforming menu items;

· Reinventing other menu items with high-demand ingredients to broaden appeal, and;

· Upping the price on a couple of good sellers that were underpriced relative to their competition.

After wrapping up our operations assessment, we continued to play the $3 Game with our clients by texting back and forth to check on progress. Our client texted photos of their creative ideas and their immediate sales impact.

We were thrilled to see our client put all of our ideas in motion, as well as their own. They gained confidence knowing that they could use the tools we gave them to increase sales on their own.

Who won the $3 Game? Our client of course.