Let’s begin with defining convenience. Ten years ago, a quick service lunch meant going inside a restaurant, reviewing the menu, telling a staff member what you’d like, and waiting a few minutes before getting your tray and sitting down with other lunch-goers. Today, that sort of convenience is unrecognizable. According to QSR, completing orders through apps, relaying orders to touch screen kiosks, and picking up food from drive-thrus is the way of the “time-pressed” future. Digital cafes are popping up nationwide to help fit customers’ needs quickly and efficiently.

 

Big fast food chains are jumping aboard the digital train, like McDonalds, Taco Bell, and Wingstop, says The Street. Some have beefed up their technology, like apps, drive-thrus, and rewards, and some have gone further, eliminating dining space altogether. Last year, Wingstop, a chicken chain that began in Texas, opened its first “restaurant of the future.” With no register and no front staff, their zero-cash approach operates with ordering screens. According to the article, Wingstop’s eventual goal is to transition to online and app orders exclusively.

 

Chipotle, back in 2018, opened its first drive-thru-only restaurant, Chipotlane, with tremendous success, says RIS. Their no dine-in storefront offered food exclusively through their drive-thru service. Last year, they opened what they’re calling the Chipotle Digital Kitchen, which features a drive-thru, and walk-up ordering window for convenience. The restaurant will operate through an app, online, and delivery orders (like Urban Eats), but also have a small outdoor patio area for dining.

 

Fast food giant McDonald’s is also testing the waters with digitally-operated stores. Slower to embrace the full digital experience, McDonald’s created a more customer-forward store in Fort Worth, Texas, says The Street. Half the size of its regular stores, this one has a conveyor belt for online pick-up orders, shelves for delivery services, and kiosks for customers who haven’t looked at their phones in awhile. This solo restaurant serves as a guinea pig for the company to see how successful (or not) it is for their chain.

 

In 2021, Taco Bell opened its digital-only location in New York City’s Times Square. Eliminating contact completely, customers order through kiosks and grab their food from locked cubbies, says the New York Post. A hint of human existence appears as each order is made in an open kitchen, and then placed in a heated cubby with a lamp that turns pink when ready. With the entering of a code number on a touchscreen, customers can extract the order and be on their way, says the article.

 

Lunch has become a quick, efficient, and high-tech experience thanks to these chains. There are a lot of opinions about how much human interaction is being eliminated through these technologies. But the customer has spoken; digital cafes are gaining traction. Whether you’re out to lunch on your break, picking up an order for a customer, or simply trying out something new, lunchtime has come a long way. Keep up with restaurant technological trends on the Synergy Blog.

 

Af&co. and Carbonate have rolled out their 15th annual Hospitality Trends Report. According to Nation’s Restaurant News, technology has been playing a huge part in influencing people’s desire for certain foods. Social media, delivery apps, and mobile ordering are changing how restaurants do business. Consumers are now craving creativity, clarity, and resilience from the businesses they frequent.

Here are some of the greatest trends we expect to see in 2023:

• Frozen Drinks
• Mocktails
• Pickle Flavoring
• Food from the Past
• Oxtail
• Pinked-Hued Foods
• Meatless Options
• Unique Dining Experiences
• Convenience & Quality
• Environmentally-Friendly Options
• Healthier Options

Expected 2023 Restaurant Trends

With the upcoming new year, restaurants are preparing for new food trends.

Frozen Drinks

According to Food Business News, Yelp has made several predictions about restaurant trends for the upcoming year. At the top of the list are frozen drinks which they expect to be very popular in 2023.

People have been searching for “slushies” 77% more than they did at this same time last year. Both alcoholic and non-alcoholic slushy drinks are likely to see a rise in popularity this coming year. The most popular frozen drinks will likely be margaritas, pina coladas, and fruit-flavored slushies.

Mocktails

Food Business News says mocktails, or traditionally alcoholic drinks made without alcohol, are also expected to rise. Celebrities like Blake Lively have begun creating their own mocktail brands, which likely correlates to their increase in popularity.

Other non-alcoholic drinks, like michelaguas and dirty sodas, are also rising in popularity

Pickle Flavoring

A unique trend is the rising popularity of pickle-flavored foods and drinks like pickle martinis and pickle ice cream.

Food From the Past

According to Food Business News, people feel nostalgic for the foods they ate during simpler times. Now, they are demanding a revival. One classic example is the McRib, which is coming back to McDonalds across the country. Baked Alaska is gaining momentum as people seek a unique ice cream dessert to follow their warm main dish.

Oxtail

Oxtail is meat from cattle tails, and the food experts from Food Business News say demand is rising. Oxtail is popular in South America, Asia, and Western African dishes. We see oxtail being featured more often during festivals and food trucks menus.

Think Pink

Pink-hued foods and drinks will be showcased more in 2023. Why pink? Technomic says this color denotes health benefits, so be looking for pink twists on salt, peas, and pineapple.

New, Meatless Options

As more people turn to meat substitutes, restaurants are getting more creative with their options. Nation’s Restaurant News says roasted, and fried Maitake mushrooms are gaining popularity as an all-natural, meatless option.

Supermarket News says that people are also seeking alternatives to traditional seafood, like seaweed and algae. It’s important to consumers that these seafood alternatives have a similar texture and taste to traditional seafood like fish.

Unique Restaurant Experiences

Food Business News says, people are sick of being stuck at home because of the pandemic. They’re seeking new and exciting adventures when leaving home, and restaurants are no exception. People want entertainment while they eat, and we’re seeing an increase in demand for unique dining experiences like dinner theaters and underwater restaurants.

Expected 2023 At-Home Food Trends

Most people can’t afford to eat out every day, so supermarkets will see a change in their food trends.

Convenience & Quality

With the stress of the pandemic, inflation, and increasing work pressures, people are more tired than ever. Plus, with the rising cost of food, people expect the food they cook at home to taste just as good as the food they get at restaurants.

Now more than ever, Supermarket News says people want delicious food that is quick and easy to prepare. We will likely see an uptick in the popularity of meal kits and ready-to-cook food kits that include video instruction and cooking utensils.

Environmentally-Friendly Options

Concern for our environment is also growing, and people are more concerned about where their food comes from. Supermarket News says consumers are seeking sustainable ingredients packed in environmentally-friendly packaging.

Healthier Options

People are also more concerned with prioritizing their health and balancing indulgent foods with healthier ones. Supermarket News says consumers are seeking foods that increase the health of their digestive tract, immunity, and memory.

Conclusion

Food is one of the things consumers are looking forward to the most this upcoming year, and they’re demanding new and exciting foods. Frozen drinks, mocktails, and pickle juice are all dominating search engines right now. People also want exciting dining experiences, fresh food choices, and food from the past. Consumers are also more concerned for their health and the planet’s health.

The 2020 lockdown gave us quite a bit of insight into our lives; work/life balance, family, general satisfaction, and, perhaps the most significant insight, our personal health. If measured only by social media alone, US News reported Tweets concerning eating healthier rose about 20% during 2020 and 2021, and tweets about fast food and alcohol dropped by 9% and 11%, respectively. Eating healthy has only grown since the early days of the pandemic with more folks preparing and cooking their meals at home, says Supermarket News. Now, gaining popularity in the past few years, a step further into the healthful-eating world, fermented drinks packed with microbes, prebiotics, and probiotics that help our gut health.

 

A fermented drink contains vitamins, cultures, and certain bacteria that claim to help with everything from blood pressure to cancer, says the Mayo Clinic.  According to the article, a popular fermented drink is kombucha, made with tea, sugar, bacteria, and yeast. Some research on the drink has suggested it aids in supporting a healthy immune system and constipation.  However, only a small amount of research has been done to prove the many health benefits supporters claim. This doesn’t make it less popular. Because of COVID-19, the “Kombucha Market” reached new heights and is worth over two million dollars this year, says Globenewswire.

 

Other fermented drinks stocked in grocery stores, convenience marts, and restaurants around the country include kefir, ginger beer, and kvass. All have health benefits, says Livestrong. Kefir is a probiotic, fermented dairy drink that contains good bacteria that help the gut, says Psychology Today. According to the article, its many health benefits include antifungal, antibacterial, antioxidant, and cholesterol-lowering agents. Ginger beer and kvass are said to aid in digestion and have anti-inflammatory properties, says Livestrong. You really can’t go wrong with any of them.

 

Fermented Drinks: A Top Trend in 2022

Further proof of the trend shows fermented drinks making their way onto a list compiled by Hospitality Insights right next to drinks like wine, champagne, and bubble tea. As one of the top seven drink trends of 2022, fermented beverages ranked number three. Increased awareness and popularity in nutrition have made the growth in the fermented drinks segment significant, says the article, with kombucha still ranking number one, with kefir, and Tepache, a fermented Mexican soda, trailing not far behind. Probiotic beverages are estimated to reach over $77 billion in sales by 2025, said Hospitality Insights, and not just in deli refrigerators. In restaurants, bartenders are looking for unique ways to wow their customers besides offering the same alcoholic cocktails as they have in the past, says Food & Wine.

 

Probiotics, prebiotics, microbes, and cultures are the popular “it” words of the last few years, thanks to the pandemic. Our health has never been more critical, and fermented drinks offer us an easy way to boost our health and are offered in convenient places. With trends like this on the rise, maybe someday soon, we can say that improved health is also on the rise.

 

More on Beverage Trends

Looking to get in on the latest beverage trends? Take a look at our article on mocktails and non-alcoholic drink trends (with recipes). And if you need to revamp your drink menu, Synergy is here to help.

The Impact of Meal Delivery Services on Restaurants

The restaurant industry has undergone more changes out of necessity than most other businesses during the pandemic. There was a total shift in how the public accessed and prepared food.

The trend of delivering a meal or meal kit to the customer’s door was safe and convenient during this difficult time. This trend gained traction and has become a way of life for many, adding to restaurant challenges. The latest statistics show that 8% of the population has at least one meal kit delivery subscription, which has propelled the service to the $11.6 billion industry that it is today.

 

How Meal Delivery Services Work

Meal delivery services offer their customers the ability to choose meal option plans with the customer’s dietary restrictions and pay for them online. The delivered meal boxes are reasonably priced from $8.75 to $12.00 per serving, much less than going to a restaurant to eat.

A box with all the ingredients necessary to prepare the meal arrives at their doorstep. The customer can then easily prepare a delicious dinner using fresh ingredients in the comfort of their home.

 

How Meal Delivery Services Became a Trend

Consumers have begun to enjoy cooking at home again and have discovered another way to socialize over a meal. They can prepare an elegant dinner with their friends and family praising them for their fine talents as a chef. Some of the services even offer the perfect wine for the meal.

Most people using the meal delivery kits tend to be younger, with more spendable cash. They consider themselves “foodies” who enjoy the varied meal options offered by the services.

 

 

Restaurant Recovery

The United States Census report stated that the pandemic decreased restaurant and bar sales by $280 billion, but the industry is looking to change all that in 2022.

Competitive businesses like meal delivery kit businesses rely on technology, and technology may also play an essential role in the recovery of restaurant businesses. By using easy-to-use apps for ordering and food delivery, restaurants can compete with home-delivered meal kit services.

People have adapted to utilizing more technology and are used to ordering and making payments online during the pandemic.

Technology can also help restaurant businesses with the problems of labor shortages by reducing the number of employees required to provide good service to their customers.

Restaurants can also specialize and streamline their menus to compete with meal delivery businesses. Their specialized cuisine is not available to prepare at home.

Inflation may be the key to getting the restaurant business back from the competitive options–especially now that people are more at ease eating in restaurants.

 

Meal delivery services feel the same financial strain of raising costs that the restaurants do, and they will likely need to raise prices to operate in the profit zone. Consumers could decide that an occasional meal from a restaurant or ordering a meal for take-out makes more sense than the routine added expense of a meal kit delivery.

 

The outlook for the restaurant industry is still strong despite the losses over the past few years. Restaurant owners are very resilient people who know how to bend with the times. It has never been a painless business but has survived every trend over the centuries.

Restaurant Consultants

Its’ never a bad time to review your restaurant operations looking to improve efficiency and cost-savings. Look to Synergy—for over 30 years, we have been helping independent restaurants, franchises, and corporations with their bottom line. Please get in touch with us to learn more.

 

By: Amanda Stokes – Operations & Training Consultant,

Synergy Restaurant Consultants

As we are all adapting to the new normal post-pandemic in the restaurant business, we find ourselves in the battle to attract and retain talented managers and team members. The restaurant business is now competing with other industries that offer more normalized schedules with more flexibility. Restaurant workers have historically prided themselves on how much they work, treating burnout and exhaustion as a badge of honor. However, employers and employees alike are beginning to see the mental and physical toll these long hours take on an individual. What was once considered a radical idea is now in practice in many companies and restaurants today. It begs the question, could condensed scheduling be the workweek of the future? Haven’t we all dreamed of a shorter workweek?

 

Condensed Work Weeks: Is This the Future?

Used correctly, compressed working hours can be a great tool for keeping workers in the restaurant business when they otherwise may look for a change. As a former Director of Operations for a large casual dining company, I personally offered reduced workweeks to leaders on my team. This idea came to fruition when one of my best managers struggled with work-life balance after returning from maternity leave. I could see it was taking a toll on her both personally and professionally. After careful planning and consideration, we landed on a 4-day workweek that would allow her the flexibility of having three days off to spend with her family. She received 80% of her salary (based on a 50-hour workweek), and she was thrilled to pioneer this new model. This model can also have managers working four extended days with no salary reduction. In addition to creating a better work schedule for my team, their productivity and engagement increased significantly. I eventually had four managers working condensed schedules that delivered best-in-class KPI results for the brand! Talk about a win-win situation!! I loved hearing how these managers had an overall improvement in their well-being.

Many companies, including Shake Shack and Chick-fil-A, are offering flexible condensed work schedules to their teams. They have reported many benefits, including, improved operations, fewer absences, improved culture, and many more that lead to improved employee morale and retention. This model of a condensed work schedule could be a game changer for independent restaurants and make attracting new employees significantly easier. In today’s climate, offering a sign-on bonus is common practice, so offering a condensed workweek can be a cost-effective way of introducing an employee benefit that will not add additional cost to the business.

Another thing to consider with condensed workweeks is the benefit of reduced commuting and daycare costs. This could mean significant cost savings for employees and reduce stress over current inflation levels.

 

 

There are many things to consider before offering this benefit to your team. This type of work schedule may not be ideal for everyone. It is critical to understand the needs of your team. If you decide to move to implementation, have a strategy and clearly communicate how this will work for everyone on the team.

 

Picture a quiet, peaceful meadow, lush with grass, and a vegetable garden big enough to plan a menu around. If you think that maybe you’re in Lancaster, PA, or Sussex, NJ, you wouldn’t be thinking wrong. This garden, though, belongs to a restaurant in Kennebunkport, Maine, and it is one of two organic gardens grown on premises and picked daily to produce the tastiest of dishes on their menu. They aren’t the only ones; restaurants with garden sidekicks are popping up everywhere. As prices rise, menus shrink, and staff continues to grow thin, there is something quite beautiful trending around the country — hyperlocal foods. Because of food distribution chain disruptions since the start of COVID, restaurants have been procuring their ingredients via farms, bakeries, butchers, and even cheesemakers, super close to their location or doing it themselves, says Food & Wine.

Hyperlocal trends in restaurants were on the rise in 2007 with the start of the “locavore,” a term coined by people in the San Francisco Bay area, says WebsterauntStore. This term describes a person who eats only foods grown within a 100-mile radius. According to the article, restaurants took notice of the trend and began sourcing their foods hyper-locally or growing them themselves.

Obtaining food from local spots makes it more sustainable for the restaurant, says Caroline Glover from Food & Wine. Chefs from Colorado to New York have hopped on the hyperlocal trend and have focused on “smaller, tighter menus,” highlighting the foods closest to them. Menus have reflected hyperlocal foods by offering dishes unique to their locations, and customers love it, says Foodwellsaid. The article further shares that shifting from global cuisine to local has been a surprising twist, but it is making both customers and restaurants happy.

 

Benefits for Restaurant Workers and Patrons: Health and Convenience

 

Shopping local farms and bakeries is fantastic, but having your own garden in the back of your restaurant is ideal, which is what many restaurants are doing now to ensure sustainability, says Eco & Beyond. The article says that certain leafy greens can lose over half of their vitamin C by the time it makes it to the supermarket shelf and even local food that has traveled miles to the restaurant. On-site farms, rooftop gardens, and vertical gardens allow restaurants to literally pick food, cook it and serve it. You can’t get more local than that.

Predicted by Whole Foods on their Top 10 Food Trends of 2022 is “ultraurban” farming. Whole Foods pioneered a rooftop greenhouse back in 2013 in their Whole Foods Market Brooklyn location and watched the trend grow, no pun intended, into a huge movement. This indoor farming trend has expanded into other areas, including hydroponics, aquaponics, and robot-grown produce.

 

Sustainable and Delicious

Hyperlocal sourcing isn’t just a trendy term. Yes, it’s sustainable and a tremendous step towards significant changes in the food industry. It’s also a source of pride for both restaurant operators and customers. Everyone can enjoy the feeling of warmth and satisfaction because the food is delicious and because their neighbor grew it. It’s the community that’s being served.

If you went out to eat pre-pandemic, you might not think twice about what food to order or how much to tip (not to mention a few other things). Common practice only a few years ago was about 20 percent of the bill, says The Atlantic, determined by the quality of service, timing, and general hospitality. A customer could easily throw down a decent amount of money and think little of it for a regular dine-in experience. When COVID hit in March 2020, and many food service employees became essential workers, customers opened their hearts and wallets a little more.

Tipping Fatigue

During the early period of the pandemic, many customers generously gave more tips for take-out meals. On average, customers tipped above 20 percent for pick-up or delivery orders, feeling it was the least they could do for workers who prepared and brought it to them, said The New York Times. Generosity and momentum steadied for restaurant workers during the first wave but slowly came back down after restrictions were lifted. Higher menu prices, the suggestion of larger tips via touch screens and added gratuity on bills have been coined “tipping fatigue,” said the Times.

 

Tipping fatigue stems from higher prices due to inflation, and short staff in the current food industry, says Yahoo Finance. According to a survey from the article, the number of Americans that tipped restaurant workers in 2019 has fallen by 4% in 2022. Some customers feel it’s a matter of aggressive tactics, says the Dallas Observer, stating that tip suggestions on touch screens while the server stands behind the counter might be going a bit too far for a coffee shop or bakery.

 

What “tipping fatigue” unfortunately is doing is hurting the workers and the restaurant owners, says CNBC. Workers whose income is minimum wage or below rely heavily on tips and are left far below the wage they need to sustain themselves. The Atlantic keenly writes that how much a restaurant worker is compensated should not be left up to a split-second decision made by random customers.

 

How are Restaurant Owners Responding to the New Tipping Culture?

For restaurant owners, some have tried to automatically add gratuity to the bill and give their workers a living wage instead of relying on inconsistent tipping. Although it might seem aggressive to some, touch screens encourage customers to tip more, says the Times. A restaurant in Austin, Texas, which adopted a touch screen, reported 50% more tips, said the article. Executive Chef, Paula DaSilva, interviewed by Food and Wine Magazine, asks customers to please consider giving restaurants and their workers some grace during this period of struggle, adding that this would be the time to be more generous with tips.

 

Still a Social Norm

Although tipping has gone down right now, it isn’t extinct; it’s still considered a social norm. According to Real Simple, in an article published in May this year, it’s suggested still to tip 15 to 20 percent at a sit-in restaurant. “Regardless of the level of service, gratuity at a restaurant is non-negotiable,” says the magazine. The same goes for take-out, tipping 3 to 5 dollars for the delivery person.

Dining out has changed since the pandemic and has perhaps created a shift in how Americans look at spending their time and money. Tipping seems to reflect of our character, giving what we can during more challenging times. It also reminds us of how we are all in this together. We may be tired, but we’re still giving.

The times may be turbulent, but people across the country are making their voices heard. Everywhere from the big city of New York to the smaller towns in Wyoming, people are putting democracy into action to make changes – both big and small. This may not be more true than on the streets of California.

Restaurant workers have often been unhappy with the low, stagnant wages for years, but those wages may soon be changing. Historically, there haven’t been many positive changes in hourly wages. That is until recently, with the passing of the Fast Act.

If you’re outside of California, this may not seem like a big deal, but the Fast Act may significantly impact for restaurant workers and franchises in other states. It’s best to understand the Fast Act now and be prepared for the changes it could bring.

What is the Fast Act?

The Fast Act is a bit controversial and still very new. Law AB 257, the legal title for the Fast Food Accountability and Standards Recovery Act (nicknamed the Fast Act), was recently signed into law by California’s Governor, Gavin Newsom, on September 5, 2022.  This bill hopes to give a voice to the backbone of the restaurant industry – the workers.

Previously, the minimum wage was decided at the state or federal level. Many industry workers feel this is unfair because these entities are far removed from the struggle of those in the industry.

Thanks to the Fast Act, a council of fast-food workers and union representatives, will now decide the minimum wage. Giving workers a seat at the table means their voices will be heard, giving them more power to make the changes they want.

 

Not only that, but restaurant employers will also fill four council seats. This will keep equality and transparency and allow for a more open dialogue between invested parties in the restaurant industry. Each panel member will be selected and appointed by California state officials, not elected.

As the council comes together, they can decide to raise the minimum wage to nearly $22 per hour by next year. The increases can continue annually, correlating to the Consumer Price Index, a yearly federal report.

The council’s power’s scope isn’t limited to wage increases. They also have the ability to decide some workplace standards in the fast food industry. This just increases the strength and voice of workers across the state.

How Will The Fast Act Affect Your Restaurant?

These changes sound great, but not just restaurant workers will see the impacts. Restaurant and franchise owners will also need to be aware of these changes.

An increase in the minimum wage will increase other wages in the long run. Workers currently making above the minimum will want to see their own wages increase at a proportionate rate. All of this can impact food prices and the bottom line.

Those who oppose the new law are concerned it will have the reverse effect – hurting workers rather than helping. This law has the potential to give power to unelected officials. At the same time, it will likely increase the overall cost of business function, which can mean layoffs and cutbacks.

Next Steps

Though the law has been signed at the highest state level, it doesn’t take effect until the first of next year. A group of restaurant owners and interested parties are forming a coalition to put a stop to the Fast Act. The process to derail the act is two-fold: 1. Obtain enough signatures, 2. Get it on the ballot for a state-wide vote.

For those outside of California, the Fast Act is quickly gaining traction in other states. Workers from Nevada to Massachusetts are clamoring for higher wages and better working standards.

The winds are changing, and power is going back to the people. Today it’s the restaurant industry and fast-food workers, but tomorrow? Who knows.

 

Revisiting Restaurant Efficiencies

A way to combat wage raises for your restaurant is by taking a closer look at your operations. How efficient is your back-of-house? How often are you training your staff, and are they retaining the information? When was the last time you examined your menu? There are plenty of areas to improve that, simply put, not all restaurant operators take the time to review. For professional assistance in analyzing your restaurant ops, contact Synergy today.

 

Dealing with food shortages isn’t anything new these days, and now, we’ll be adding tomatoes to the mix. Tomatoes are a versatile fruit staple in many people’s diets. But you might have trouble finding them in your local grocery store soon.

Why Are Tomatoes in Short Supply?

California is the world leader in tomato processing. It is also responsible for 25% of the world’s tomato growth.

Unfortunately, California is facing the worst drought the area has faced in the past 1,000 years.

Californians’ wells are drying up, and farmers have restrictions on their groundwater use.

Besides the drought and rising temperatures, farmers face other pressures threatening their crop production. Fuel costs have skyrocketed. They’re having trouble finding labor, and fertilizer costs have increased.

Ten years ago, it only cost farmers about $2,800 to grow and harvest tomato crops. Today, that cost has almost doubled to $4,800.

Not only that, but the demand for tomatoes has gone up. California’s tomato processors have seen a 10% increase in demand since last year.

What Does The Tomato Shortage Mean for You?

With the increase in demand and the shortage of tomatoes, consumers may soon be missing their tomatoes. What exactly does this all mean?

It will be harder to find tomatoes and tomato products in stores. This includes things like ketchup, pasta sauce, and tomato sauce.

It also means that the price for these products will go up. In fact, tomato inflation is expected to far outpace inflation of other foods in the U.S.

Market research shows a 13% increase in price for salsa and a 23% increase for ketchup in the past year alone. With the shortages, the costs are only going to continue to rise.

How Will Farmers Deal With Tomato Shortage?

 

 

Almost all farmers in California are dealing with severe drought conditions. 40% of the state of California is considered under extreme drought.

Drought has been causing issues with tomato harvesting over the last several years. But, this year, it’s worse. Farmers don’t have the inventory to fulfill demand. What tomatoes are growing are coming out smaller.

Many farmers are cutting down on their other crops to create more room for tomato crops.

Some companies, like Heinz, have taken preventative measures to ensure they still have their product. To maintain production, Heinz is sourcing tomatoes from other regions. They are also breeding new tomato seeds with stronger resistance to climate troubles.

Tomato shortages are unfortunate for both consumers and farmers alike. Tomatoes are a staple in many consumers’ diets, so the shortage and price increase will be hard on many people, not to mention abundant on restaurant menus. Farmers are struggling even more because their yield is down, but their cost is up. With droughts and extreme heat becoming all too common year after year, we’re going to have to think of new ways to keep our crop production thriving in the future.

What Can Restaurant Owners Do? Menu Redevelopment is Key.

Operators must consider building the cost of free condiments into their menu prices. Also, given these new realities, it’s wise to revisit your menu prices where tomato products are used. If you need professional help in redeveloping your menu, please reach out to Synergy.

 

A quick, cheap meal before the pandemic might run you slightly over $5, depending on where you went. Nuggets, burgers, tacos, and pizza are fast food staples and are still considered a quick and easy meal. However, after many waves of COVID, political turmoil, and rising inflation, it may no longer be an inexpensive option. In a post-lockdown world, restaurants are still providing value meals; they’re just redefining what value means.

In the dining-out realm, fast food reigns supreme as the biggest bang for your buck. However, there have been a few bumps in the past few years. The cost of ingredients has skyrocketed, and staff shortages have plagued the restaurant industry, leaving owners to think outside the box with their menus and strategies. Making sure the bottom line is still profitable, many restaurants have tweaked their menu, said CNBC, making meals just a pinch smaller. Burger King has changed their 10-piece chicken nugget value meal to 8, and removed the Whopper from the value menu altogether, said the article. McDonald’s has also dropped its Dollar Menu, and Subway has discontinued its $5 Footlong deal.

Menu Prices are Increasing

Not only are the portions getting smaller, but the price tags are also getting bigger. Little Caesar’s raised the price of its Hot-N-Ready Pizza by 55 cents, reported Forbes, and the future of the value menu seems to be through utilizing apps. According to CNN, Dominos raised the price of its Mix and Match delivery deal by a dollar this year and made certain take-out deals only available through their mobile app. Popeyes jumped aboard this solution also with their Big Box Deal, which is $5 through their app, and $6 in-store, said Chewboom.

Burger King is also on the road to purely digital. In an article by Business Insider, Burger King eliminated all paper coupons, changed at least a dozen items on their menu, and raised prices on nuggets, fries, and burgers. The company decided on marketing and offering deals through digital advertising to entice a younger generation of customers, said Restaurant Business.

Taco Bell is another chain focusing on digital-only deals. A strategy they are using, said Insider, is a limited-time only deal, higher-priced and online only. In November 2021, Taco Bell brought back the Grilled Cheese Burrito for the first time in a year to boost profits and also offered wings for just one week, for $5.99. These menu shifts are meant to excite customers with more expensive items while quietly taking the more inexpensive ones off the menu.

Menu changes, price changes, and redefining the dining-out experience is the driving force behind fast food, but value is still…well, valuable at Denny’s. They’ve decided to continue offering value deals at their restaurants, even when it means a lower profit margin, said Restaurant Business. They offer an endless breakfast deal for $6.99, including unlimited pancakes, eggs, and hashbrowns. “We don’t view that a value strategy is a negative to margins,” Robert Verostek, CFO of Denny’s, said in the article. “In fact, we believe that it will drive margins higher.”

 

 

Inflation has altered so many things in our world, and restaurants are no exception. While dining out is making a comeback as a favorite American pastime, we may need to tweak our expectations on what value now means.