One thing the pandemic has made certain; we’re not sure what to expect with the new normal. Adapting to new rules and regulations has fostered creative solutions and recent trends. The restaurant industry, in particular, has suffered many blows.

However, one portion of the restaurant industry that has continued to grow is pizza. While the number of diners who ate in restaurants went down, pizza shops have seen increased orders. After all, who doesn’t enjoy a fresh, hot pizza? Even low-cost pizzas are good; they are delicious hot or cold, easy to clean up, and you can savor any topping you like.

 

 

It remains to be seen if local pizzerias will be able to compete against well-known giant chains like Papa John’s, Pizza Hut, or Domino’s Pizza. Restaurants like Papa John’s saw a 28 percent rise in the second quarter of 2020 compared to the same time the year before. To keep up with this demand, they have 20,000 additional staff with plans to hire 10,000 more.

Pizza Hut has seen some of its best sales during the same time. In fact, they saw their most significant delivery and carry-out sales than in the previous eight years. This is an incredible increase, considering the fact that they have been underperforming for a few years.

However, few pizza chains have been as successful as Domino’s Pizza. According to Bloomberg, Domino’s is up at least 33 percent in 2021, a number that surpassed Wall Street estimates.

 

How Domino’s Kept Growing

The pandemic triggered many things, including changing daily habits and behaviors. One such behavior includes staying home and ordering contact-less delivery. In many ways, Domino’s took stock of the situation and made the best of it.

Unlike other pizza chains, Domino’s never partnered with third-party delivery services like Uber Eats, Door Dash, or Grubhub. In addition, Domino’s created convenient, customer-friendly ordering apps, so customers could easily customize their toppings and even be notified when their pizza was out for delivery.

Convenience and comfort are crucial elements to customer satisfaction—and business survival.

 

 

Other pizza shops may be interested in noting these business models. After all, third-party delivery apps are known to tack on hefty fees, making it hard for restaurants to retain revenue. By investing in your own, company-owned delivery infrastructure, you get more control—and more profits.

If food delivery services continue to grow, customers will be interested in value as much as quality. Delivery services often include hefty delivery and service fees to the customer, making ordering dinner for a large family regularly cost-prohibitive.

By eliminating these unnecessary and costly fees, you and your pizza shop stand a good chance of surviving the rise and fall of industry trends.

 

 

The pandemic forced many restaurants and hotels to adhere to changing rules and regulations creatively. Some allowed for drive-through drinks along with meals. Others started serving bottled ready-to-drink cocktails (think gin and tonics or margaritas,) while others started delivering alcohol with boxed meals.

 

Recently, reports indicate there may be supply and demand issues regarding alcohol. A few states, including Ohio, New Jersey and Vermont, are currently experiencing liquor shortages  related to the pandemic. In some states like Pennsylvania, customers will be limited to two bottles of specific alcoholic beverages per day in liquor stores.

 

North Carolina liquor stores are putting up more and more “Out of Stock” warnings as the alcohol shortage spreads.

 

What Is the Reason for Alcohol Shortages?

 

If you remember the great toilet paper shortage during the start of the pandemic, you might remember how some items were in short supply in our local stores. Apart from toilet paper, commodities like flour, hand sanitizer, furniture, lumber, and even homes were getting harder to find in stock.

Like these impacted goods throughout the pandemic, we are experiencing a shortage of liquor due to supply chain issues.

These supply chain issues include a shortage in truck drivers, warehouse workers, raw materials, and reduced manufacturing. Even finding staff for bars and restaurants can be challenging. If multiple kinks develop in the chain, it will eventually directly impact consumers and businesses. In addition, alcohol requires time to ferment and age, so it may take some time to see an increase in supply.

 

How This Affects Restaurants and Taverns

Many restaurants and bars are in the same boat as consumers. They simply cannot get the level of alcohol supply that they are used to receiving.

The current strain on the alcohol supply chain may take some time to be resolved, so businesses need

Some restaurants are stocking up on ready-to-drink canned cocktails or ordering alternatives to specific flavors and brands.

 

The pandemic has highlighted how the restaurant and hospitality industry has learned to adapt to changing tides, even now. New experimental cocktail menus will likely emerge that work with available and sourced alcohol. Other restaurants may choose to focus on handcrafted cocktails with local ingredients, which could kickstart a new economic trend of supporting local businesses and vendors.

It’s unclear how long this shortage will last as we head into the holidays, but you may want to enjoy your favorite drink now (while you still can!)

As a whole, the restaurant industry has faced tremendous challenges due to the COVID pandemic. To the surprise of many, franchise restaurants have suffered just as much as smaller businesses. Some 20,000 franchises closed their doors in 2020.

 

Although experts projected a recovery in 2021 with the introduction of vaccines and government aid, the Delta variant has thrown a wrench into the works. This strain spreads faster and more easily than previous strains of COVID, leading to less spending and more workers calling in sick, further aggravating the already pronounced hospitality labor shortage.

 

McDonald’s was on track to meet 100% reopening by Labor Day. However, with the Delta variant, corporate leaders of the fast-food chain recently instructed franchises to close their indoor seating in areas with heavy infection rates. Reuters reported that one owner had closed indoor seating at several of his McDonald’s franchises.

 

One owner of Subway franchises in South Carolina told Forbes that lack of business and workers caused him to close one of his restaurants. Among his other 23 franchises, hours and expansion had to be cut back significantly.

 

In Alabama and Georgia, KFC and Taco Bell had to start closing at 8 p.m. instead of their usual midnight closure due to workers becoming infected with the Delta variant, adding to their significant labor shortage.

 

 

 

Facing the Restaurant Labor Challenge

The great debate as to the cause and solution of the labor shortage continues. Some say it was caused by enhanced unemployment and government payouts, while others say it is due to workers changing industries, lack of childcare, and fear of getting sick.

 

While the likely cause of the lack of restaurant workers is a combination of factors, many franchises embrace creativity to draw workers back into the franchises. Some of the incentives owners are offering are signing bonuses and free appetizers. McDonald’s has increased wages and reported some relief as a result, and one of the franchises even offered $50 to each person interviewed.

 

There is still hope among the uncertainty, as businesses learn to adjust and get by in the best way possible. According to the International Franchise Association, there is a projected growth of 23,000 franchises, which is a rate of 3.5%. At this point, any increase is better than none. As the owner of a Your Pie franchise, a restaurant in Dublin, Georgia, said, “We gotta figure out a way to get through it.”

Few events have caused as much devastation to the restaurant industry as the COVID-19 pandemic. 2021 saw some of the worst industry conditions stemming from unforeseen lockdowns, enforced closures, a crippled economy, and limited capacity.

 

According to the released 2021 State of the Restaurant Industry Report from the National Restaurant Association, we can measure the impact of COVID-19 on the restaurant industry, which is estimated to have lost about $240 billion in sales from a projected $899 billion. For many restaurant owners, few choices remained but to shutter their doors for good. In fact, Fortune reported that over 110,000 restaurants closed for business.

 

The 2021 State of the Restaurant Report delves into the current condition of foundational elements integral within the food industry, including technology, labor, menu changes, and more based on surveying over 6,000 restaurant owners. As destructive as the coronavirus was for many businesses, you would be hard-pressed to find a single restaurant that wasn’t affected by widespread closures, dining restrictions, and adapting to new safety protocols.

 

State of Restaurant Industry in 2021

As stated in Forbes, the COVID-19 pandemic had a debilitating impact on the supply chain companies that keep restaurants and foodservice enterprises in operation. Accordingly, about 85% of food supply chain companies experienced a 30 percent reduction in revenues in 2020 than in years before.

In the first six months of 2021, fewer customers ate on-premises as COVID-19 surged throughout the nation. However, by mid-year, restaurant sales are expected to grow as more consumers get vaccinated.

In fact, total restaurant sales are projected to be around $789 billion, an almost a 20 percent increase from 2020, which is great and welcomed news!

 

Important things to note from the Report:

• Wholesale food costs have increased at an incredible rate
• Hourly earnings have more than doubled in the private sector
• As of June, 11 states and Puerto Rico still have capacity limits on restaurants
• 64 percent of customers prefer to order directly from the restaurant and not a third party service
• Many restaurants focused on optimizing their off-premises dining services – for example, implementing curbside service
• Many restaurant owners reported retaining and hiring employees was a top challenge throughout 2020 and 2021
• Vaccination numbers and stimulus payments helped increase food and beverage sales in the first half of 2021, often resulting in increased takeout orders
• Menu prices have increased to reflect the higher cost of food and labor
• The restaurant industry has had to adapt quickly to survive, including selling alcohol to-go during the pandemic shutdown
• During the early stages of the pandemic, the only option for many restaurants to continue selling involved off-premises curbside takeout and delivery, which remains a popular option over on-premises dining

 

New COVID-19 regulations and mandates required restaurant owners to quickly adapt, especially contactless pickups and delivery, to keep both staff and guests safe and healthy.

 

By necessity, the pandemic endorsed new technology and contactless dining for many customers. More and more people are adopting takeout and delivery as part of their routine.

 

The road to recovery is long and uncertain, but it’s clear that employment and sales are rising slowly. It may take some time to nullify the damage caused by the pandemic shutdowns, but the restaurant industry has proven to be resilient and adaptable: two necessary qualities for survival.

The restaurant industry has faced many challenges as a result of the COVID pandemic. Many restaurants were forced to close their doors or operate at a limited capacity due to restrictions. According to Time Magazine, “one in 10 permanently closed.” The result? Nearly six million employees in the food and drink industry left or lost their jobs by April 2020.

 

With the introduction of vaccines and increased demand for dining, restaurant owners are eager to open at full capacity. However, a new challenge has presented itself in recent months—an industry-wide labor shortage. The situation has incited a heated debate among restaurant owners, experts in the industry, and researchers over the cause of this shortage.

 

Some say people don’t want to work because they’d rather receive unemployment or have become accustomed to being off work. However, research has shown that many workers switched industries to support their families during the pandemic, citing concerns for safety and lack of decent wages that make the risk worth it.

 

While the debate is likely to continue as to the cause of the labor shortage, restaurants should consider ways to retain their current employees and attract potential hires. According to a recent report by BlackBox, the top four areas of concern for potential workers are as follows:

 

Wages– This is not a new issue in the workforce. For far too long, restaurant workers have received low wages, skirting just above or below the poverty line, and are highly dependent on tips. Recently, many owners have attracted new hires by increasing wages, and other restaurants should take notice. Due to inflation, the cost of living has increased. Workers are not asking for much. They want a wage that affords them the ability to live comfortably, given the risk they are taking.

 

Promotions– Owners should also consider promotions for reliable and hardworking employees. In any industry, no one wants to take a job without any prospects for the future. Promoting within the company also helps retain employees, and it allows workers to feel valued. This is a win-win situation for employees and owners, making it no longer necessary to look outside the pool of workers that already exists within the establishment.

 

Flexible schedules– Everyone wants a flexible schedule, and the restaurant industry bend to allow it. Owners can work with employees adjusting to fit different schedules, attracting more employees to fill the positions, especially potential hires with children. If there are only full-time positions available, it might be helpful to post several part-time positions as well. In the current market, flexibility wherever possible is key.

Benefits– With many other industries offering benefits, restaurants need to follow suit. Healthcare is of utmost importance given the current state of the pandemic, and that alone may be enough to attract additional interest in the position. At the very least, paid time off should be offered. Owners should look at the return on investment. A couple of paid days off could fill a role, resulting in higher capacity and increased revenue.

 

Currently, it’s a job seeker’s market. Employers need to be open to current and potential hires’ concerns to fill the labor shortage. The good news is that 66% of workers say they would return given the right conditions. So what steps will you take to respond to this labor shortage?

“Hey! Who wants to go out to eat?” has been an often-asked question for the vast majority of American citizens. Dining out in restaurants has been a staple in American culture for more than one hundred years. So, what do we do when a restaurant doesn’t have the food we want, or they close? For many people, the first thing to do is ask why this is happening. As of 2020-2021, the short answer to this question is COVID-19. A more in-depth look can explain further.

Although it is a complex situation, the root of the problem is the supply chain

 

As COVID-19 infection rates spread among side-by-side labor-intensive workers, restaurants began to suffer. Agricultural production and meatpacking were particularly affected. Jobs such as field working, meatpacking plant production, food delivery, and retail became increasingly dangerous as infection and, potentially, death became a common concern. Several meatpacking plants closed, as this environment can act as an incubator for the virus to spread.

 

 

Nonessential workers stopped working because they lost their jobs when the COVID-19 stay-at-home orders were put into place. Essential workers stopped working when they became infected. Some people stopped working when the fear of infection became too great. The loss of these workers created a gap in restaurant industry processes. The problem of decreased number of workers extended from farmers to wholesale buyers to servers and restaurant owners. Adversely affecting production capacity, lack of workers hurt the restaurant supply chain despite policies to social distance and practice increased sanitization.

In addition, the risk of exposure to COVID‐19 changed the willingness of workers to accept jobs. Currently, supplemental hazard pay is in discussion with labor unions as an option for restaurant workers at some fast-food restaurants. There is hope that by increasing the wage specific to these jobs, workers will accept the jobs offered during the pandemic, and the restaurant industry may recover.

The supply and demand of international trade using ocean freight has experienced slower delivery times due to COVID protocols. Labor shortages and restrictions on vessels coming and going have created congestion in some countries’ standard pickup and delivery procedures.  As of August 18, 32 cargo vessels were waiting at sea to unload at the Port of Los Angeles. This backlog of ships was due in response to the increased demand for imports via ocean freight carriers. In addition, transportation proved to be an obstacle, with a shortage of long-haul truck drivers and major railroads pausing new pickups for a week due to backup of railroad cars in the Midwest.

 

The restaurant supply chain has been severely fragmented due to COVID-19. While the world continues to find ways to rectify the situation, being patient while ordering your favorite food at a local restaurant may help.

As for restaurants, you may have to reassess your menu items to pivot during this still difficult time. Wingstop pivoted by creating a virtual brand (orderable online only) named, “Thighstop”—a menu that focused selling just chicken thighs. Selling these lower cost chicken thighs would help offset the rising costs of chicken wings.

 

Restaurant Owners: What do you do now?

Let’s talk. It’s a great time now to dig into operations, restaurant training, as well as menu optimization. Synergy Consultants has been helping foodservice operators through great times and tough times for over 32 years.

by Natasha Reta – Culinary Consultant

2020 accelerated new restaurant and dining trends that may not be going away anytime soon. With staff shortages and commodities increases, operators will get creative this Fall and embrace these new and continuing trends born out of the restaurateur’s resiliency and commitment to this business.

Some innovative 2020 trends to embrace and elevate for Fall:

Delivery and Take-Out

• It’s not hard to find food for delivery nowadays, which makes the competition even harder. Before the pandemic, 80% of full-service restaurant traffic was on-premise. We quickly adjusted our dining habits, and now off-premise sales replace that 80% and anticipate it increasing in the future. Now is the time to review your options and develop strategies to enhance your delivery and take-out offerings.
• Try ordering online from your website or third-party delivery.  Assess the platform from the guest’s perspective:
  • How user-friendly is it?
  • Does it take a long time to load or search?
  • Are all your menu modifications and correct menu specifications notated?
  • Is the pricing accurate?
  • How long did it take to receive your order?
  • How did it arrive? Was it at an accurate temperature? Presentation?
  • Don’t forget to review your take-out packaging. Companies are getting creative with eco-friendly, recyclable, and compostable take-out packaging.  The type of packaging you use can significantly enhance the guest experience.

Reduced and Streamlined Menus

• We are and will continue to see smaller menus.  Staff shortages, increasing commodities costs and difficult sourcing make for three important reasons why NOW is the best time to review, reengineer and reduce your menu.  Streamline your BOH prep processes, and cross utilize inventory to reduce waste.  An onion is only an onion until you think – julienne, diced, caramelized, pickled, grilled, sautéed, smoked, roasted, pureed – just to name a few.

Beverages To Go – We’re Talking Alcohol

• States have loosened restrictions on off-premise alcohol sales, and it’s been going well. A third of off-premise customers surveyed said they had ordered alcohol to go since the pandemic, and they plan to do so in the future so long as it is permitted.
• Don’t have a license to sell? Try the new “mocktail” craze.  Utilize in-house ingredients to make mocktails, agua frescas, or even juice bases. Someone wants it boozy? Consider teaming with your local community market, where a juice purchase gets you a discount on alcohol. (21+ only)
• The holidays are around the corner; enhance your beverages with a festive holiday twist.

Meal Kits

• Consumers are dining in more; that’s a fact. But they grow tiresome of stale delivery boxes and lukewarm food. Meal kits have grown in popularity for consumers who want a “hands on cooking experience” with measured guidance.
• Design holiday meal kits for the guest who wants to bring the restaurant experience home.

Monthly Meal Subscriptions

• Of consumers surveyed, more than half of them said they would sign up for a monthly delivery or pickup option from their favorite place if offered.
• Customers sign up to get meals delivered monthly at a discounted price. Your subscription can offer a rotating menu, including meal kits and even cocktails.  It ensures monthly sales and guest retention.

One thing is sure, restaurant trends and consumer’s expectations are ever-changing. With some creativity and an ongoing commitment to examining your current offerings and improving and enhancing where needed, your operation will be better aligned and prepared for the days ahead.

Nation’s Restaurant News reports that “better, leaner, more efficient menus are in our (near) future as restaurant operators, forced to cut costs and streamline operations in the face of changes wrought by the pandemic….” The rapid decline of customer traffic and the need to streamline operations forced many chains to shrink their menus.

 

Jack Li of Datassential agrees, reporting that “60% of menus have gotten smaller.” As we move into the Fall months, we’re taking an in-depth look at where we’ve been and where the industry is headed.

Datassential Research: Menu Hits and Misses

• The appetizer part of the menu took the biggest hit, shrinking 14.3% on menus.
• Octopus, also known as Tako, is gaining in popularity, up 34% on menus.
• Desserts and adult beverages declined on menus (despite to-go offerings). White Claw and non-alcoholic beer thrived during the pandemic.
• Breakfast menus faced a steep decline and, in many cases, were eliminated. With commuter traffic coming to a grinding halt during mandatory lockdowns, it may be some time for it to recover fully.
• Beverages like lemonade, iced tea, and soda also declined. With the rise in off-premise dining, many consumers didn’t find a need to order these beverages.
• “Dine-in-centric” food suffered. Most consumers don’t want a steak delivered.
• Entrees grew 1.3% on menus – with noodles doing especially well.
• Jalapeno’s popularity grew 53% in entrée menu items like jalapeno popper burgers.
• Cauliflower crust remained strong during the pandemic.
• Wellness forward menu descriptor that gained popularity: Ketogenic
• Consumer appetite for plant-based items keeps growing. Jackfruit is gaining popularity, originally used as a substitute for pulled pork, now is filling in for seafood.
• The spicy Nashville hot chicken sandwich craze continues. Crossing over to other menu items like tacos, pizzas. and mac-n-cheese.
• Tajin, a chili powder with a hint of lime, is growing quickly, up 40% on menus, ahead of all other spices and condiments.
• Furikake, a Japanese seaweed seasoning, is growing in popularity.
• Mango-habanero flavors, a sweet and spicy combo, a menu trend preparing to explode.
• Wellness and functionality with consumers looking for the healing properties of turmeric
• Hot honey popularity is heating up, literally and in menu mentions.
• Gochujang, a fermented Korean red chili paste, continues to grow as seen on menu offerings.
• Mapo Tofu, a spicy, saucy Chinese dish, is up 88%.

 

Additional Menu Trends to Watch

Increase in comfort food offerings: 57% of consumers are interested in seeing more creative comfort food. What constitutes comfort food varies by age, with older customers thinking of mac-n-cheese or meatloaf, while younger guests often think of guacamole, ramen, or grain bowls.

 

 

Low-Waste Foods: 46% of consumers (and 63% of Millennials) are interested in a zero-waste restaurant. Food waste is a bigger concern (72%) than single-use plastic waste (68%)

Extreme Burgers & Sandwiches: create outrageous crave-ability. 67% of consumers said the ability to customize their burger is important. 64% say high-quality French fries are important.  56% of millennial consumers find avocado extremely or very appealing on a burger. (Datassential, 2021) Fastest growing ingredients paired with a burger: peas, nuts, baked potato, crab cakes, meatballs, bell peppers, Havarti cheese, Russian dressing, zucchini, potato wedge, baked beans, crab (Technomic, Inc., Ignite, 2021)

TikTok-able Dishes: with over 100 million active users in the U.S., dishes should be over-the-top in terms of ingredients and presentation.

 

With rising costs, supply chain issues, and an extreme staffing shortage, many chains and independent restaurant operators plan to keep their menus streamlined into 2022. To stay competitive in this ever-changing industry, operators need to be innovative, committed and resilient. Need help as you think ahead to 2022? Reach out to Synergy today.

by Mike Walls – Operations Consultant & Beverage Certified Cicerone

The flavors of Fall are here! Our favorite way to celebrate is to use flavors from spirits like Applejack, Rye, Cognac, and liqueurs like Allspice Dram. Here is a recipe for a cocktail called the Lion’s Tail that is bursting with fall flavors:

 

Lion’s Tail

2 oz. Rye

0.5 oz Lemon Juice

0.5 Honey Syrup

0.25 Allspice Dram

2 dashes Orange Bitters

 

Shake, strain over fresh ice in a rocks glass, garnish with a cinnamon stick and edible flowers. (Allergens: Honey)

Organic. Vegetarian. Vegan. These diet choices have been growing trends for many years. Eating a plant-based diet is smart for many reasons. Younger consumers do it because they care about the environment. Older consumers do it because they care about their health. Either way, the development of plant-based food products has become something between a science and an art. In recent years, many options are appearing on restaurant menus and in grocery stores, yet often, do not resemble a plant.

 

The most popular trend is the plant-based hamburger. Impossible Foods developed this faux red meat to create the Impossible Burger (2016). Its production requires 87% less water, 96% less land, and produces 89% less greenhouse gas emissions. Environmentally sustainable, it is reverse engineered from plants and mixed with soy products. The secret, however, lies in a molecule found in plants as well as in human blood called heme. This molecule carries oxygen to blood in the human body and is in virtually all foods people eat. Plant-based burgers with heme deliver the craveability of beef. In other words, it sells because it tastes like blood.

 

 

As a niche product sold in high-end restaurants, plant-based meat alternatives (PBMA) have evolved into mainstream meat products. The recipe varies but incorporates protein bases such as legumes, nuts, soy, tofu, whole grains, seeds, tempeh, and vegetables. The result is a malleable lump similar to ground beef which can form into burgers, minced meats, sausages, and other meat alternatives. Due to the flavor and price matching similarly to familiar animal-based products, drive-thru restaurants, and grocery stores that sell plant-based products had a winning moment during the pandemic. People paid more attention to where their food comes from while spending more time at home, and plant-based foods proved to be sustainable, opposed to animal-based foods. Surprisingly, this caused sales for plant-based meats and other plant-based products to grow 25% compared to animal-based products, which rose 9.5% from May 2020 to May 2021. In addition, with interest in reducing greenhouse emissions, billionaire Microsoft co-founder, Bill Gates, has shown support for the plant-based movement by investing in several faux meat startups, including Beyond Meat, Impossible Foods, Memphis Meats, and Hampton Creek Foods. As the largest private farmland owner in the US, his decision to advocate for plant-based companies is powerful.

 

Started through Impossible Foods, Inc., alternative meat products are currently offered at various fast-food restaurants. A few listed here are Burger King’s Impossible Whopper, White Castle’s Impossible Slider, Red Robin’s Impossible Burger, TGI Friday’s Beyond Burger, The Cheesecake Factory’s Impossible Burger, and Hard Rock Café’s Impossible Burger, Del Taco’s Beyond Taco, and Dunkin’s Beyond Sausage Breakfast Sandwich. Through research and development, these new restaurant menu choices are viable options with taste, nutrition, convenience, and affordability

 

Although select plant-based products are sold at many grocery stores, Trader Joe’s grocery store is the place to be if you want your cart full of plant-based products. From plant-based alternative meats, cream cheese, and specialty drinks for humans to treats for your dog, Trader Joe’s is at the cutting edge of the plant-based movement.

 

 

How exciting to see what will happen next as more meat alternatives and plant-based product options become available.