Restaurant Business magazine’s recent special report on “The Consumer: What Drives Today’s Consumers” raises lots of interesting questions.

 

Take the piece on “Millennials’ Favorite Chains,” which details the preferences and habits of that cohort of the population whose loyalty everyone seems to be after these days. At Synergy, we are particularly interested in this group because we have worked with seven of the brands on the list: Firehouse Subs, Raising Cane’s Chicken Fingers, and Fuddruckers in the fast casual segment; IHOP and Huddle House in midscale dining; and Seasons 52 in casual dining.

 

What characteristics unite concepts as seemingly diverse as a quick-casual chicken specialist and an iconic 24-hour diner specializing in breakfast and other comfort foods, the donut franchise Krispy Kreme and The Cheesecake Factory with its mega-menu of trendy foods? And when you compare the Millennial’s list to the overall consumer favorites, what are the key takeaways about these folks who were born in the 1980s and ‘90s, also known as Generation Y?

 

1. They’re looking for value. And value means different things for different need-states. For a busy Millennial mom with young children in tow after a soccer game, there’s value in Raising Cane’s menu anchored by a kid-friendly product (chicken fingers!) that also appeals to adults. And for the Southerners in Huddle House’s core markets, hearty servings of traditional favorites like Patty Melts, Country Fried Steak and signature all-day breakfast resonates.

 

2. They want healthy options, emphasis on the option part. Like all consumers, Millennials may say they concerned about health and nutrition but still order dessert, and in fact there’s ample evidence that this cohort is actually less likely to follow common dietary guidelines. If you examine the menu at a Seasons 52, you’ll see items like entrée salads and a Vegetarian tasting along with more indulgent choices like a Braised Short Rib and Aged Cheddar Flatbread—but note that most of the items follow the brand’s stated goal of weighing in at under 600 calories. That’s called having it both ways.

 

3. They insist on variety and on calling their own shots. Even within the narrow parameters of its core product, Krispy Kreme’s cult following is achieved via dozens and dozens of doughnut varieties, including LTOs like football- and heart-shaped doughnuts and fun emoji-inspired items like the Smirk. And while none of the brands on the list has a telltale DIY menu feature, a huge menu like The Cheesecake Factory’s 250-plus-item list allows customers to order whatever and how much they want.

 

4. They’re fueled by a sense of nostalgia. Huddle House has been in business since 1964, IHOP since ’58, In-N-Out since 1948. No Gen Y’er was around then, of course, but the increasingly complicated circumstances of entering adulthood now are leading this beleaguered generation to long for the “good old days” and the warm fuzzy feeling that a plate of pancakes can provide.

 

5. They’re very social—and socially conscious. Younger Millennials are still very much into meeting up with friends, having a few drinks, and sharing and sampling an experience-based dining occasion. Can you say Bahama Breeze, with its huge selection of appetizers, small plates and snacks, and over-the-top desserts, plus cocktails and tiki drinks by the pageful? This generation is also very socially conscious, a dictum that defines Firehouse Subs, with its community-based Helping Our Hometown Heroes foundation.

 

6. They’re turned on by great service and the personal touch. From its earliest roots in Southern hospitality, Chik-fil-A has been known for its customer orientation—an approach that hasn’t changed even as the brand has moved into high-tech features like app-based ordering and staffers armed with tablets to speed up the line in busy New York City.

 

Raising Cane’s photo credit: Shoshanah license CC by 2.0

1. Authentic vs. Inventive

There’s a dichotomy playing out on menus as the road ahead splits in two very different directions: authenticity and simplicity, as defined by market-driven concepts like Sweetgreen and the new-old Jams, where the signature dish is a simple roast chicken; and playful cross-cultural mashups where the kitchen’s creativity is the focus, like the “proudly inauthentic” Talde, in Brroklyn and the soul food/vegan crossover Souley Vegan, in Oakland, CA (Seitan po’ boy, anyone?).

 

In many ways, it’s a generational thing. Many older, more established chefs are eschewing bells and whistles in search of simpler, more honest cooking—a kind of minimalism that even 11 Madison Park’s Daniel Humm is seeking. Simplicity also works with the sweeping farm-to-table/locavore food movement that has changed the way Americans eat—the focus is on honoring the ingredients and editing food down to its most pure flavor.

 

Younger chefs, on the other hand, are flexing their creative muscle and creating an entirely new, one-of-a-kind experience for customers and recognition for themselves and their cooking. For Millennials in the kitchen, it’s a passion project of an entirely different kind.

 

 

2. The Quest for Clean Eating

The concept of eating clean has been gaining traction for several years now, an outgrowth of demand for fresh ingredients and interest in where food comes from. Now it promises to completely change the way many restaurants put menus together.

 

For chains that are dependent upon prepared products that contain ingredients like high-fructose corn syrup, preservatives, growth hormones, and any of the above, the impact has already been significant. Ultimately, it means that many industry players will have to make the switch from processed ingredients to fresh.

 

“Free from” is the new mantra. Free from artificial ingredients and colors, from GMOs, from antibiotics, from gluten and other trigger foods, from unnecessary processing. The trend goes hand-in-glove with the industry’s move to greater transparency and traceability in the food chain, as consumer desire for clean cuisine grows.

 

 

3. Texture: The Final Frontier

For the past decade or so, flavor has been the big food-trend story, in all its iterations. Bold, spicy, balanced. Chefs and diners discovered the role of sweet/savory contrast, acidity, umami.

 

Now it’s texture’s turn, time to explore the role that a sophisticated interplay of soft, creamy, crunchy, crispy, firm, and tender play in the craveability of food. Many of these lessons come from Asia, where balance in all things has always been key. Think of classic Vietnamese pho, with its slippery noodles, rich broth, chewy beef and tender meatballs, and then the vivid contrast of crisp beansprouts, crunchy fried shallots, toothsome fresh herbs. These ingredients aren’t just about layered flavors or even contrasting temperatures; they’re about the kinds of different, intriguing textures that always have you wanting another bite.

 

 

4. Vegetarian + Vegan + 2016 = Veggie-Forward

Forget about outdated notions of consumers who avoid meat (vegetarians) and animal products (vegan). While these groups definitely exist, and comprise about 5% of the populations, according to the Vegetarian Resource Group, evenly split between vegetarian and vegans.

 

That’s not even the point, and it hardly even matters that more Americans than ever before are vegetarian-leaning or inclined to eat less meat. What matters is that restaurant menus are becoming more “veg-centric.” This encompasses interest in plant-based proteins like quinoa and beans, as well as a fake meat revolution that may very well lead to the development of more alt-proteins.

 

The real kicker, though, is that chefs and guests alike are in love with vegetables and fruits, for reasons of health, seasonality, local sourcing and sustainability, and just plain flavor and signature appeal. And this trend is extending into every menu category, at nearly every price point, from breakfast items and sandwiches to full-on “vegetable-focused” tasting menus.

 

5. The Chefication of Fast Casual

There should be a bumper sticker for high-end chefs: “Honk if You’re Opening a Fast Casual Restaurant.” From Jose Garces with Fast Fish to Daniel Humm of Michelin-starred Eleven Madison Park and Made Nice, highly lauded white-tablecloth chefs are rushing to open more accessibly priced concepts that will put their food in more mouths—and no doubt help them reap Danny Meyer/Shake Shack size fortunes.

 

Here are a few of the latest entries:

• Top Chef Franklin Becker’s The Little Beet
• Michael White alumnus Chris Jaeckle and Uma Temakeria
• Jose Andres of Think Food Group and Beefsteak
• Campton Place’s Bradley Ogden with Funky Chicken
• Dumplings via W-D 50 and Jean-Georges alum Mike Sheerin at Packed

 

The owners may be high-profile, but the food and concepts follow well-trod pathways of fresh, healthy, customizable fast casual.

 

6. Annals of Competition: The Grocerant

Retailers have long had designs on the lucrative foodservice market, with service details, prepared-foods counters, food bars, custom catering, and even in-house restaurants. But now they’re after those dollars in earnest, with a hybrid food-away-from-home strategy the industry has named the grocerant. And once again, it’s Millennials fueling demand.

 

Upscale grocery stores appear to be breaking the code. Plum Market, in Old Town Chicago, has a wine bar. Whole Foods in Chicago, Glastonbury, CT, and Fairfax, VA, are home to ramen bars.  Eataly has its famous Nutella Bar, for made-to-order crepes, waffles and more. And then there are the meal kit purveyors like Blue Apron and Purple Carrot.  Make no mistake that these will be coming soon to a supermarket near you.

 

7. Wine Gets Approachable

We can thank the Millennials for the steam-gathering trend toward easy-to-drink wines and less intimidating lists and service. Not only are fast casual and even fast food brands like Taco Bell offering wine, but the wines that are being made now—some by young winemakers—are more fun, intended to be drunk young, and often contained in boxes, kegs and other trendy forms of packaging. Plus today’s drinkers also have a taste for “bubbles” (sparkling wines) for general drinking, not just celebration.

 

They also have a taste for obscure wines with interesting back stories and bragging rights (“look what I “discovered”), which has changed the way beverage directors and somms are buying and selling wine. But this may also lead to some clinkers becoming popular according to some experts, including the estimable Lettie Teague.

 

8. Cocktails Trends Follow the Kitchen

Seasonal, foraged ingredients, ingredient-driven, artisanal and housemade. This isn’t the kitchen, though; it’s the bar. The craft cocktail movement continues on exciting and profitable pathways, encompassing a number of developments that mirror what’s going on in the back-of-the-house.

 

• Seasonal selections
• Foraged cocktail ingredients
• Local, small-batch spirits
• Housemade syrups and mixers
• Artisanal bitters
• High-end garnishes (such as Luxardo cherries)

 

These trends are already givens in high-end cocktail bars, and will increasingly be seen in multi-unit establishments any day now.

 

9. Sustainable Seafood

Concern about the health of our oceans and its resources has been on the mind of chefs and restaurant operators for a number of years, but now the issue is moving on to guests’ radars. It’s a complex problem, to be sure, with more attendant controversy than just about any other food, but it’s an important one: unlike chicken or beef, wild fish and shellfish are not endlessly renewable. And according to Seafood Watch, 90% of the world’s wild fisheries have already been affected.

 

More restaurants are calling out sustainability issues on their menus, and moving to educate both staff and guests about why it matters. Many chefs are working to introduce underutilized “trash fish” to customers. (Unfortunately, many once-unfamiliar species such as octopus have become so popular—mentioned as a hot trend by 37% of respondents on the NRA’s What’s Hot list for 2015—that pressure is mounting on them.)

 

Menuing strategies addressing seafood sustainability are not just at higher price points. Sharky’s Woodfired Mexican Grill promotes MSC-certified Alaska salmon and other sustainable, wild-caught species, including a rotating fish of the day, such as Alaska pollock, explained by informative point-of-sale “fish boards.”

 

 

10. Pretty as a Picture

The eyes have always had it when it comes to food and appetite, but new visual media platforms have made this more true than ever, completely turning the tables on how consumers and operators alike get information about food. Instagram, in particular, has increased the importance of plating and presentation, in the process ensuring that food and menu trends move with lightning speed across the country. Be aware that anything you serve may end up on social media, and that means the challenge of making your food look good is offset by the opportunity for free publicity. Use it.

 

 

With so much news going on about climate change and droughts, there’s no better time than now to start implementing ways in which cooks in the restaurant kitchen and home, can help make a difference. In California, the threat is real. So real, that Governor Jerry Brown had declared a state of emergency back in January.

 

How can eating and cooking help with the drought? If you have a green thumb, you may know that crops require more or less water depending on their type.

 

You have the power to reduce your water footprint and we’ve gathered some great resources to help.

 

• List of drought-tolerant herbs from KCET

• List of drought-tolerant vegetables from com

• How to reduce your water footprint in the kitchen by the Natural Gourmet Institute and at Gracelinks.org

 

Be sure to check out this eye-opening video on how much water goes into making your food.

 

As the year comes to a close, it’s time to take a look into the coming food trends for 2016. We’ve touched on a few of these trends in our newsletters and blog articles such as the “root-to-shoot” (or “root-to-stalk”) style of cooking and the growing popularity of the poke bowl trend.

 

But as some foods and tastes rank higher, others naturally move down on the list. The National Restaurant Association noted in their What’s Hot in 2016 Culinary Forecast that underutilized fish, kale salads and fresh beans/peas actually decreased on the trend scale. So what exactly made it to the top?

 

We aren’t surprised to see locally sourced meats and seafood, chef-driven fast casual concepts, locally grown produce, hyper-local sourcing and natural ingredients/minimally processed foods rounding out the top five spots. In 2015, we saw Chipotle go non-gmo, Panera Bread dropping artificial ingredients, and a plethora of other big brands opting to replace the artificial ingredients with natural ones.

 

And Sriracha will soon find other ethnic condiments to share the limelight with: think harissa, curry, chimichurri and peri peri. See the full National Restaurant Association forecast here.

 

We are looking forward to a tasty 2016!

From burritos at Chipotle, to pies from MOD pizza, operators know that guests seek customization. Take a took at some unique and notable spots in this highly popular vertical.

Lunch

Poke is huge right now, and there are plenty of restaurants jumping on the trend that allows you to customize this Hawaiian staple. At Spin Fish in Los Angeles, you can create your own poke bowl: choose your fish from ahi tuna, salmon, Hamachi and more, drizzled with your choice of sauce like sesame shoyu, select toppings like panko or avocado on a base of white or brown rice, mixed greens, or noodles.

Anytime

At Potatopia, the potato isn’t hiding as a side dish—it’s the star of your meal. You pick your potato, toppings, proteins and sauce. You can wind up with something like an au gratin topped with asiago cheese, sweet pepper, steak and garlic aioli or maybe a skin chip with shrimp, jalapeno, pepperjack cheese and chipotle ketchup.

 

Dinner

Explore flavors inspired by the south of India at Biju’s Little Curry Shop in Denver. Chow down on curry bowls like coconut curry chicken and masala beef curry. Or build your own bowl—just choose your rice, proteins like chicken and beef and pick your slaw and chutneys.

 

Sweets

Ice cream and froyo are not the only customizable desserts around. Let your imagination run wild at Poquet Donuts in Irvine, CA. First, choose your donut from glazed, chocolate cake, vanilla cake or vegan. Next, pick your filling from creams and butters, fresh fruit and jams. Finally, select candies, spices or nuts as your topping. If you’re not feeling too creative, choose from their signature donuts selection which include avocado, tiramisu and pistachio crème brûlée.

It’s one thing to attract new customers, but smart operators know it’s even more important to keep them. In addition to providing the basics of food, service, and ambiance—and doing it again the next day, and the day after—building loyalty through formal and informal recognition programs is key.

 

According to the 2015 COLLOQUY Loyalty Census, U.S. consumers are more invested in loyalty programs than ever, holding a total of 3.3 billion memberships spread among the retail, financial services, travel and various other economic sectors, or about 29 per household. The real statistic of interest, however, is the fact that users are only active in a dozen of them.

 

Most restaurants have some form of a loyalty program, from punch cards or membership cards, to iPad scan systems to vouchers. Restaurant loyalty program memberships rose 107% to 55 million in 2015, although that’s down from 171% growth in 2013.

 

Digital makes the difference, especially the mobile kind. The technology has allowed restaurants to build loyalty programs through different tiers, from traditional loyalty cards, to mobile apps and location-based services. This omni-channel approach allows brands to increase the amount of information they can collect about their guests, which in turn allows them to provide repeat customers with a more personalized experience.

 

Even the availability of digital serves to build loyalty among fans, even if there isn’t a rewards component.

 

Always at the forefront of just about any trend you’d want to examine, from game-changing new menu items to marketing, Taco Bell has been extremely aggressive about mobile, all of it designed around the current-generation premise that “ease is the new loyalty.” Last year, the Live Mas app began allowing users to customize, order and pay from their phones—an industry first—and has reportedly been downloaded almost 4 million times. In the process, the chain discovered that customers who use it tend to order about 20% more than those who order in person.  A gamified loyalty component  is planned for later this year, via an app update. There’s even a Taco Bell emoji. Now a new website, ta.co (“ta-dot-co”), expands that capability to desktop computers and tables; a publishing channel called The Feed features curated content about the brand. It’s all Taco Bell, all the time for the chain’s many loyal followers.

 

Not surprisingly, many quick-service and fast-casual chains are using apps to build followings, usually through ordering and payment capabilities. The new wrinkle, however, is integrating rewards and other bonuses. Panera’s app taps into the success of its longstanding rewards program. The My Starbucks program, which has more than 10 million members, is now linked to a mobile application that allows the user to pay in stores with their smartphone or a pre-loaded card. LYFE Kitchen’s new app tracks purchases and confers rewards.

 

But while digital marketing may have forever changed the mechanics of tracking guest behavior and managing loyalty programs (especially in multi-unit operations that target younger, wired-in diners), it’s crucial to remember that nothing will ever replace the personal, human touch.

 

This is especially true for independent and upscale restaurants, and even more so for established places where the competition of newer openings represent a particular draw for customers.

 

Case in point: The Angus Barn, in Raleigh, NC, which has been a paragon of hospitality—not to mention top-quality steaks—since it was opened in 1960 by Thad Eure Jr. and Charles Winston. Now under the direction of Thad’s daughter Van, the restaurant has kept up with the times and added event space, music in the lounge, a Chef’s Table and more contemporary menu items, but the core appreciation of customers has never changed. Regulars in the Wild Turkey Lounge have their names engraved on plaques above the bar, kids can come into the kitchen to help build their own ice cream desserts, and servers have business cards so that guests can ask for them by name. As Van puts it, “We’re in the business of making memories.” No wonder so many guests are also second-generation.

 

 

It’s that season again. In the aisles of your local grocery store and on the menus of your favorite cafes, pumpkin spice-flavored treats are abound. From unique products like pumpkin pie flavored potato chips and Peeps to decadent desserts like pumpkin cheesecake and crème brulee, pumpkin-spice is everywhere.

And what is the most hands-down, most popular seasonal fall-flavored treat? It appears to be Starbucks’ beloved Pumpkin Spice Latte. Since 2003, Starbucks has sold over 200 million of these drinks. This season, to meet the evolving demands of diners everywhere, Starbucks announced that their lattes would be made with real pumpkin and no caramel coloring.

Competition has grown to capture the seasonal trend of pumpkin spiced mania. Panera Bread offers a Pumpkin Spice Latte of their own, that is not only free of caramel color, but also free of potassium sorbate, mono and diglycerides and sodium benzoate. Want a donut with your beverage? a Dunkin’ Donuts is serving up pumpkin lattes at their stores. And yes, you guessed it: McDonald’s is on the list of restaurants whipping up this popular drink, too.

 

Not a coffee fan? Caribou Coffee has a special Pumpkin Chai Latte featuring chai tea instead of traditional espresso. An ice-cream lovers can rejoice in Dairy Queen’s Pumpkin Pie Blizzard.

 

While pumpkin is a super star ingredient in the fall, as a restaurant operator, don’t forget to add other seasonal flavors to your menu. The food experts featured in this NRN article note several ways you can spruce up festive dishes with other autumn notes like using figs, butternut squash, apples and cranberries.

 

Pumpkin patch photo credit: Liz West CC by 2.0

As we continue to digest the news of Chipotle freeing its menu of GMO ingredients, Panera announced its plans to remove artificial additives and ingredients from its food. This new approach is extending past foodservice: Just last month, Kraft said it would no longer use artificial coloring or preservatives beginning January 2016. Pepsi similarly revealed its plans to drop aspartame from their diet beverages.

 

It’s no coincidence that more and more brands are changing their approach to food and ingredients. The “clean eating” movement, or, having a diet that is as close to natural as possible, is becoming increasingly popular among consumers. Brands are simply giving with their customers want, and these days, it’s all about nixing the bad stuff, which other concepts like LYFE Kitchen have made it a point to do.

 

If you are a restaurant operator or food producer, it might be time to rethink your ingredients as consumer sentiment continues to shift towards clean eating. Ask yourself the following questions of your food:

 

• Do my ingredients use fake food coloring?
• Can I remove artificial sweeteners from my beverages? Can I offer consumers alternatives?
• Can I find a source for minimally processed ingredients?

 

For more information on food additives, the FDA has a handy article here.

Of course, any change in menu can take considerable planning, time and potentially cost. For expert consultation, please contact Synergy Restaurant Consultants.

 

Panera photo credit: Mike Mozart CC by 2.0

Mother’s Day is just around the corner. Translation? Millions of Americans will dine out to treat mom.

 

As a restaurant operator, you want to make sure your restaurant stands out from the crowd. Wondering how? Here are some quick ideas you can implement to gain that exposure on one of the busiest restaurant day of the year.

 

– Freebies: Make a great deal! Consider free bubbly for moms or a buy-one-get-one promotion to draw in guests.

– Entertainment: Music makes for great ambiance: Book a special guest to your restaurant during brunch hours.

– Ambiance & decor: Place fresh cut flowers on each table.

– Special Menu: Create a special menu specifically for Mother’s Day or consider creating a brunch buffet station.

– Social Media: Don’t forget to spread the word! Use social media to inform potential guests of your Mother’s Day specials.

 

Good luck and we hope your is buzzing this Mother’s Day!

 

 

 

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.