Historically, going out to eat at a restaurant has been an American pastime. We all enjoy it and have come to view it as our right. Now, however, the choice of eating out at a restaurant or not has changed. Restaurant owners have to consider if they should require proof of vaccination or not as a moral stance. They have been thrust into the gatekeeper position for their communities, another example of how this pandemic is “unprecedented.” If they allow unvaccinated people onto their premises, it could be dangerous. If they allow only vaccinated people, it is divisive. Restaurant owners have been burdened with the responsibility of instilling public confidence about a virus they have no control over.

 

 

In recent weeks the argument for requiring proof of vaccination to enter a business has become more overt. Some people feel it is a political choice based on individual freedom. Others see it as a medical necessity to protect everyone’s safety. Starting August 16, 2021, New York City will be the first US city to require proof of vaccination to enter a restaurant. Wearing a mask in public establishments may not be convenient. Still, as long as we are amid a worldwide pandemic with new deadly variants emerging, the right for a restaurant owner to require proof of vaccination is not necessarily unreasonable.

 

The Department of Justice enacted a mandatory vaccine policy on July 6, 2021. This policy allows employers in public and private sectors, including restaurants, to require COVID -19 vaccination as a condition for employment.

 

In Texas, Governor Greg Abbott signed a bill disallowing vaccine passports in public businesses. Everyone can enter a restaurant without showing proof of vaccination. His notion of “freedom for all” was not all well received, especially in conjunction with his executive order that masks would not be required in schools. At the same time, he announced that Texas would ask healthcare workers from other states to assist with its surge in COVID-19 cases. It seems the Wild West did not want to be totally wild as there were still people who did not support of the bill Abbott signed. It is clear there are strong and mixed opinions on this hot-button subject.

 

So, what should restaurant owners do? Should restaurants should require proof of vaccination? The answer is not so easy. At this point, what is certain is to provide a safe environment for both guests and employees so following local, state and federal guidelines and mandates is key.

Over the past year, restaurant owners have seen the industry go through massive ups and downs. We furloughed employees. We embraced UberEATS. A horrifying 17% of us closed our doors for good. And now, we’re facing yet another unique challenge: the future.

It shouldn’t be a surprise that many of the changes ushered in by the pandemic will stick around long after everyone removes their masks and resumes dining in our restaurants. This is particularly true of the latest restaurant tech — but what exactly is coming our way? Here are a few tech trends we think will be part of the “new normal,” as well as a few that might be on the horizon.

Online Orders

When the pandemic first hit and lockdowns began, any restaurant that didn’t have a robust online presence was at a distinct disadvantage. In fact, restaurants without an online presence were at a disadvantage even before COVID-19; online food orders have grown 300% faster than dine-in traffic for the past seven years!

 

If you want your business to succeed in 2021 and beyond, you MUST have an online ordering/delivery system that’s user-friendly and accessible. If you don’t, you’re missing out on a huge slice of the market!

Paperless Menus and Contactless Payment

If you go into a restaurant today, you’ll often find a QR code on the table so customers can access the menu or even pay their bill. This technology quickly became popular during the pandemic, but it appears that it has really resonated with diners. According to research from the National Restaurant Association, 21% of customers look for paperless and contactless options when choosing where to dine.

AI-Based Supply Chains

This may sound like something from a science fiction novel, but it’s true: restaurants are starting to use artificial intelligence to determine their supply chain. Every order your restaurant takes is the data point for these AI bots, and they use that data to predict how many 8-oz sodas you’ll need, how many chicken thighs, and countless other details they can then report to your supplier. According to early adopters, this AI-based system has a 92% accuracy rate — and that means it just might be the way of the future.

 

“Cloud Kitchens”

As food delivery becomes the norm throughout the restaurant industry, some restaurateurs are looking for a way to cut costs, even if that means getting rid of their restaurant space. Rather than rent or own a specific location, some restaurants are going rogue, becoming “ghost kitchens” or “cloud kitchens” that operate off-site solely for delivery. This trend is attractive for current restaurant owners and aspiring restaurateurs alike, as it is significantly cheaper to operate a cloud kitchen than a traditional restaurant. It may be that we start seeing cloud kitchens pop up all over the country as the pandemic recovery continues.

 

Of course, no matter what kind of kitchen you’re running, you will need to offer quality customer service to keep your guests coming back. And if you’re going to provide exceptional customer service, you need to manage your training and your staff effectively.

 

With the Synergy Sync training app, you can easily provide consistent training to your employees — even across multiple locations! This will help guarantee that your restaurant staff is always properly trained and giving your customers the best.

As states are easing restrictions and people feel more comfortable dining out, Summer 2021 will be a season of eating and drinking to make up for lost time. If you’re looking to add a few hot items to your menu to pique your guests’ interests and whet their appetites, then look no further.

 

Cooled Down Caffeine

Most people wouldn’t want a hot, steaming cup of coffee on a 90-degree day, but a few other cool caffeinated treats are making waves across the nation. According to Yelp, strawberry matcha, iced coffee drinks featuring cold foam, and lavender lattes are on the rise. Beyond breakfast time, espresso martinis as cocktails or after-dinner treats are starting to spike in popularity as well.

 

Can You Pickle It?

This year has brought a newfound interest in homemade pickling, so expect to see this interest carry over into consumers’ ordering habits, too. What can you pickle? Well, just about anything, but if you’re looking for some fun alternatives to the standard cucumber, carrots or radishes are a good place to start. Consider adding pickled foods as an appetizer or part of a charcuterie board.

 

 

Cauliflower Rice and Plant-Based Proteins

Cauliflower is remarkably versatile, posing first in its “steak” form (remove comma) and now making a comeback as a rice alternative. Many major chains, including Chipotle and Zoe’s Kitchen, have added cauliflower rice as an option for patrons who can’t eat rice or would prefer a more nutrient-rich carbohydrate.

 

Beyond rice, Whole Foods also predicts a rise in the popularity of plant-based proteins, including barbecue, “fish,” and even “chicken” nuggets for the little ones. Consider throwing vegetarians a plant-based “bone” by adding one of these to your menu.

 

Eat Your Veggies

Americans gained an average of two pounds a month during lockdown, and as a result, the general population is aspiring to eat healthier these days. Think about adding veggie-forward salads to the menu and taking advantage of grilled vegetables’ summertime popularity as a side or main dish.

 

A Local Focus

After 2020 took a dark toll on local businesses, Americans are looking to do what they can to feel like they’re supporting them again. The first female executive chef of Commander’s Palace in New Orleans, Meg Bickford, would have to agree: “Supporting local is more important than ever.” Look to nearby farms as sources of herbs, veggies, and meats, and be sure to call out their local origins on your menu.

 

Non-Dairy Ice Cream

The non-dairy ice cream market is expected to grow by over 13 percent by 2026. Adding it as a menu item is a double-bonus because it appeals to both vegans and those with lactose intolerance. Many varieties of non-dairy ice cream are available, from sorbets to recipes that rely on milk alternatives, like almond milk or coconut milk.

 

Keeping Quality High

For current menu trends as well as future ones, it’s important to retain high quality across the board. Consider using the Synergy Sync restaurant training app to keep staff on the same page with new menu items, and keep procedures in place to ensure the successful production of delicious food. Trends might come and go, but a well-trained staff can help ensure that all menu items will come out delicious.

Over the past year, companies have fought hard to keep their businesses operating in the face of COVID-19. This challenge has been particularly significant for the restaurant industry, which relies on social gatherings and in-person meetings to make money. According to Business Insider, about 17% of all U.S. restaurants had closed permanently by December 2020, and the pandemic is unquestionably to blame.

 

But now, as the world reopens, restaurants are facing a new challenge: a lack of workers. Experts anticipate that many Americans across the workforce will not be returning to their pre-COVID jobs in the coming months – and for some, that is a deliberate choice.

 

Why People Are Leaving

 

Admittedly, a shortage of workers in the restaurant industry is not a new phenomenon. In May 2019 (eight months before the first COVID-19 case was reported in the U.S.), the American restaurant and hotel sectors had an astounding 991,000 job openings across the country. With nearly a million unfilled positions, the industry was already forced to reevaluate how it recruited and retained employees.

 

But then, the pandemic happened.

 

Over the past year, Americans from all corners of the workforce have had time to reassess what they want from their lives and their jobs. Some want more flexibility in their hours so they can spend time with their loved ones. Some want better pay or more generous benefits. Some want to pursue new fields entirely, following their interests to a job that might bring more personal fulfillment.

 

All this soul-searching has led to what economists are calling “the great resignation.” Up to 40% of workers – including more than 20% of restaurant workers are leaving their current industries permanently to look for greener pastures.

What Restaurant Owners Can Do

 

Restaurant owners are likely feeling a lot of pressure right now to make their employees happy. However, this is a unique opportunity for owners to invest in their employees and create a better working environment throughout their restaurant.

 

Proper training can help your workers learn valuable skills that will serve them in their restaurant careers. Expanded benefits like paid sick leave can give your team the freedom to take care of themselves (and this benefit can attract new talent). Simply giving your employees the support they need to feel heard and valued in the workplace can be instrumental in attracting and hanging onto your best workers.

 

 

“The great resignation” paints a bleak picture for employers across the American workforce, and the restaurant industry is no exception. However, there are signs of positive change; May 2021 saw 186,000 people rejoin the workforce in bars and restaurants. If those employers learn to invest in their workers through training and support, they will likely experience less turnover and a happier staff. SynergySync is the industry’s best training platform for your entire team.  It includes digital checklists, a newsfeed for communication with your entire team, a library of forms, and the best operating practices, comprehensive FOH and BOH training videos, available in both English and Spanish. We are confident that our training platform will increase your revenue, save you money, significantly improve your operations, and dramatically improve the guest experience because your entire team will be in SYNC.

COVID-19 and nationwide lockdowns have changed the restaurant industry irrevocably. In fact, the pandemic has altered the way we get our food as a whole. As a result, many individuals are opting out of their weekly trips to the grocery store.

So how are these Americans getting their food? It appears that many are turning to meal kits. Companies like Blue Apron and HelloFresh will deliver meals directly to someone’s door, eliminating their need to visit the grocery store or their favorite restaurants. Meal kit services had been losing popularity as recently as 2018, but the national lockdowns and fear surrounding COVID-19 caused subscriptions to surge during the past year. In fact, research firm Grandview research estimates that the meal kit industry will generate 19.9 billion dollars by 2027.

How can America’s restaurants hope to compete with the allure of these meal kit services? Sometimes, it’s best to live by the old saying: if you can’t beat them, join them.

Bringing Restaurant Dishes Home

During the pandemic, many restaurants began releasing meal kits in an effort to drive sales despite government-mandated closures. Meal kits speak to a different demographic than takeout meals, as they require the customer to do a little cooking themselves. Meal kits allow customers the opportunity to test out their cooking skills on restaurant-quality ingredients — and, if they do it right, enjoy a meal from one of their favorite eateries.

 

 

The types of businesses that tried their hands at meal kits this past year ran the gamut from quick eats to gourmet establishments. New York City’s Cote Korean Steakhouse released a butcher box that offered customers pre-portioned high-quality beef cuts. Seattle Mediterranean restaurant Homer introduced Homer at Home, their new meal kit service. Even fast-food powerhouse Chick-fil-A offered meal kits at select locations, allowing customers the opportunity to make Chicken Parmesan out of their famous breaded chicken breasts.

 

While each of these restaurants offered something unique from their cuisine, each met a key need for the public — the need for delicious dishes they can make for their families at home. Your restaurant could be the next to join the meal kit craze!

Embracing the Meal Kit Model

If you want to jump into the fray and sell meal kits from your restaurant, there are a few things you’ll need to consider first. First, make sure you have the logistical means to deliver the kits to your customers. Will you use a service like GrubHub or DoorDash? Will you do deliveries with your own team? Figure out these details before you advertise anything!

Next, consider which menu items you’ll offer in your kits. Research suggests that 80% of a restaurant’s revenue comes from only 16% of their menu items, so make sure you know which dishes will give you the most significant ROI.

Finally, make sure your customers know how to make the dishes they purchase! Provide recipe cards that are clear and easy to follow, or film your chefs making the dish and post it online so customers can follow along as they cook.

If done right, a meal kit service can give you a new revenue stream for your restaurant, giving at-home diners a special meal for their weeknight and reminding restaurant lovers why they need to visit you soon! Contact Synergy for assistance in your menu development as we continue to find innovative ways in response to the “new normal.”

The hospitality industry is currently facing a strange and unprecedented crisis. The COVID-19 pandemic was particularly hard on America’s restaurants; over 110,000 businesses closed during the past year (many of them permanently), and nearly 2.5 million restaurant employees found themselves out of work.

After over a year without steady income, today’s restaurant workers should be champing at the bit to get back to their jobs. But as lockdowns and social distancing mandates end, restaurant owners are struggling to rebuild their workforce. Their reasons are vast – safety concerns, lack of childcare, desire for higher wages, or guaranteed sick pay – but the result is a massive labor shortage across America’s restaurants.

This shortage is incredibly frustrating for restaurant owners. After much hard work to build your business – and keep it afloat throughout the pandemic, why should you suffer now due to a lack of workers?

Some restaurant owners are flirting with automation to solve this labor shortage – but is this idea worth the investment? Here’s what you need to know.

Is Restaurant Automation Worth It?

In many ways, automation seems tailor-made for the restaurant industry. Automated ordering guarantees better accuracy. Robot cooks ensure consistency and speed. And a mechanical workforce means fewer employees to pay, decreasing your overhead!

However, we would be remiss in not pointing out the significant drawbacks that an automated restaurant could hold. Robotic cooks and ordering kiosks are expensive to buy and install, and they require technical maintenance to run at peak efficiency. Instead of paying a workforce of servers and cooks, you could end up with a new team of IT professionals on your payroll.

Additionally, the public still isn’t quite ready for a fully robotic restaurant. A 2020 study from Ball State University and the University of Nevada Las Vegas found that survey respondents had mixed feelings about automation in restaurants, citing a desire for the “human touch” throughout the dining experience. This is particularly notable in the aftermath of COVID-19, with so many people eager to regain the social interactions they lost during 2020.

 

What You Should Do

Automation, despite its definite potential, cannot become the driving force behind restaurants today. So, how can you combat the restaurant labor shortage and keep your restaurant fully staffed?

INVEST IN YOUR TEAM.

Proper training and support are the keys to building a competent workforce – and when you show you care and invest in your team, your staff is more likely to return and then stick around. Learn more about SynergySync today to check out our intuitive and affordable training system so you can build the restaurant team of your dreams.

As restaurants reset, many trends have emerged as viable options to drive sales and increase overall efficiency for operators. In response to the pandemic challenges, we have seen a tremendous amount of innovation and the implementation of new digital technologies and other trends that provide operational solutions to help restaurants survive and thrive.

 

Digital Ordering

Even as eager consumers return to in-restaurant dining experiences, digital ordering habits are here to stay. According to a recent study, purchases via technology (apps, or online including 3rd-party delivery) accounted for 25% of all restaurant purchases in 2020.  While 3rd-party delivery has leveled some, brand-specific online and app ordering has seen a marked increase for delivery and takeout. This brand-owned channel will continue to grow as it gives restaurants critical customer data, and consumers seem to prefer the ability to order directly. Opportunities for quick service to your guests in the form of app-based ordering linked with heated food lockers have proven to drive guest satisfaction in various studies. Additionally, many operators have found themselves sticking with the QR code menu format as it lessens contact with guests and promotes workflow efficiency. Some have gone one step further and linked their QR menus directly to their POS system to allow guests to order straight from their phone. Many signs point to customers wanting to stay digitally engaged after the pandemic.

 

 

Takeout Packaging

Packaging has been often overlooked as merely a box to carry food from one place to another. However, Gary Kanfer, owner of Kissaki Omakase in New York, had the vision and resources to engineer and produce to-go packaging that has wowed their customers with its thoughtfulness and sleek design and being “Instagrammable-worthy.”

According to a recent study, “More than three-quarters of full-service restaurants, including 86% of fine-dining establishments, report that they have upgraded their takeout packaging since the pandemic began.” Additionally, operators are listening and responding to customer requests to switch to more sustainable and biodegradable products. While these products tend to cost about 20% more than traditional options, many operators believe it’s been worth it.

 

 

Continued Focus on Health and Safety

While always an important factor in restaurants, the pandemic brought cleanliness and safety to the forefront. Zagat’s Future of Dining Study found that “3 in 4 diners say health and safety concerns are their biggest deterrent to dining out in person.” Therefore, it will continue to be critical that restaurants are transparent about their cleanliness procedures. Single-use menus, disposable silverware, hand-sanitizer stations, individual or pre-packaged meals, and employees wearing masks will continue to be the norm.

 

Menu Innovation

Due to restaurant supply chain issues during the height of the pandemic, many restaurants were forced to evaluate their menu offerings and reduced options to their best-selling items. Menu items also shifted toward smaller portions, using more local ingredients. We will continue to see restaurants offering non-traditional options. The Zagat Survey found that “38% of consumers have ordered non-traditional delivery items including meal kits, grocery items, and alcoholic beverages, and 59% of consumers will continue to do so after the pandemic.”

 

Updated Restaurant Footprint

Managing volume in the post-COVID era means accounting for all the space in your restaurant you cannot use due to limited capacity measures. With social distancing guidelines likely to stay for some time and more consumers choosing takeout and delivery options, we anticipate fewer tables spread out and less bar and open seating in restaurant interiors. Restaurants must rethink their spaces and it will be critical to offer clear pathways and directions for anyone entering a restaurant, including adding multiple entry points for diners who are looking for a table, picking up, or placing a carry-out order. Additionally, outdoor dining options was one of the biggest factors in diners returning to in-person restaurants. Many customers came to love outdoor dining areas, and we anticipate these creative outdoor dining solutions will become permanent fixtures in restaurants.

 

It is imperative that restaurants continue to adapt and look for ways to innovate their service, menu, and guest experience in a post-pandemic world. Operators must keep their finger on the pulse of what matters to customers and adjust accordingly. Focusing on these things will keep your customers coming back long after the pandemic is over.

Despite nearly one-third of hospitality workers losing their jobs during the pandemic, many reports indicate workers don’t seem to be returning to the hospitality industry.

Without sufficiently trained labor to fill in the gaps in hospitality establishments like travel, casinos, cruise ships, restaurants, tourism, and hotels, the entire industry could suffer from a global shortage of qualified workers, but what does this mean?

Causes for Hospitality Industry Labor Shortages

There are many different variables to consider that impact the hospitality industry and the loss of experienced workers.

A major factor is wages. In working roles where tips are a significant source of pay, such as with restaurants, employees may leave to find higher-paying jobs with consistent paychecks.

Consider, too, how quickly technology has become part of our daily lives, including our jobs. In some industries, like hotels, older employees may be forced out if they are not familiar with new technology.

Another variable includes an aging workforce with years’ worth of skills opting to retire from the hospitality industry.

Temporary Actions to Seal the Gap

While some hotels and other industries are trying to fill the gap with technology, for example, using cooking technology like sous vide and pre-portioned vacuum-sealed meals, others are assigning extra duties to available employees.

Still, these are stopgap measures that can only go so far. The best solution is training the new workforce appropriately.

There has always been a high turnover rate in the hospitality industry due to demands like working during holidays, nights, and weekends, difficult or angry customers, and high-paced work settings. However, we see the industry’s current struggle to fill essential roles that provide service and amenities to customers.

The Effects of Labor Shortage on Hospitality

While it’s difficult to predict the future, it’s highly likely that luxury and high-end hotels, restaurants, and services are on the verge of experiencing a monumental change. For example, over the next ten years, hotel rooms might decrease their number of rooms but increase in size to cater to the 1%. This will likely result in extremely expensive and sophisticated hotels, with fewer value-oriented hotels for those with a limited budget.

Still, this depends on a rejuvenated workforce, which likely might rely on the reformation of immigration laws. The hospitality industry is experiencing a record scarcity of employees, mostly due a drop in foreign-born laborers (source: Immigrants, the Economy and the COVID-19 Outbreak).

Guests might find themselves in long lines waiting for front desk assistance, room service, and more. Many hospitality executives are now calling for immigration reform to resolve these issues.

 

The Value of Customer Service Skills

Customer service skills are integral when offering a positive restaurant guest experience. These often include interacting with customers, maintaining a positive and cheerful attitude, and multitasking.

This is why it’s important to have a robust training program that includes standard operating procedures, accountability checklists, and proven methods in place, to enhance the capability of your staff. Our training platform—Synergy Sync— can help you with this. It promotes best practices throughout your restaurant, so training is a breeze. It’s also smartly priced, so you don’t have to worry about cost per user! For $350 a month, you get unlimited users per location and a wealth of industry expertise at your fingertips. Fully trained employees often translate into more satisfied employees. There is no better time than NOW to enhance and invest in your current and expanding team through a comprehensive training program.

By Mike Walls

Your key areas of focus should be:

• Order accuracy
• Speed of service
• Friendliness during the brief connection
• Preparedness
• A high-quality, consistent product

Order Accuracy

Accuracy is critical in takeout, drive-thru, and delivery orders. Ideally, the order should be taken directly into the POS system and entered immediately. Be sure to provide the total right away to prompt the guest to have payment ready at the window. Always double-check orders for accuracy while packaging the order using the receipt and then triple-check by listing the items in the bag as the order is delivered to the guest.

Speed

Make sure to follow a routine that provides guests with a consistent experience while ordering at the window and preparing the orders. Interactions should be short during peak hours to increase throughput, so be sure to build your systems, routines, and habits for optimum speed and accuracy. Your physical space must also be designed to flow towards the pick-up window with no wasted movements or fetching. You want the cooks or barista’s hands to be in action, not their feet, whenever possible so they can focus on preparing an item or component, sending it in the right direction, and beginning the next one right away. Can you change your line’s layout to prevent unnecessary movement by placing everything for each order within arm’s reach?

Friendliness

How can you express hospitality during a 30-second interaction? The best way is to smile and sincerely thank everyone while inviting guests to come back again soon. A smile should be part of the uniform.

Preparedness

Take care of non-customer-related tasks in off-hours only. You don’t want to be rushing to take out the trash, manage breaks, or stock supplies during a rush. Know your rush times and be ready for them by using a checklist with time constraints that indicate a set of tasks that must be finished before a particular time. Be proactive and set yourself and your team up for success.

 

A High-Quality, Consistent Experience

Everything must come together to provide a high-quality experience. Keep hot food hot under a heat lamp and cold items cold away from the heat. Bag hot and cold items separately. Ensure packaging does not ruin the product by allowing it to cool too quickly or to steam and become soggy. What items can you pre-package or bundle that won’t affect quality? Can tasks be shared differently to increase efficiency? Is the menu board, exterior entry zone, order zone, wait zone, pay/pick-up zone, exit zone, and parking lot as clean and welcoming as the restaurant’s interior?

Analyze and continuously improve in these areas, and you’ll turn guests into raving fans and regulars!

Ghost Kitchens

Ghost Kitchens are professional commercial facilities typically used for preparing delivery-only meals. Although some ghost kitchens are now offering pick up or shared outdoor dining spaces, it is best to think of a ghost kitchen as a shared kitchen (typically commissary space) used by multiple brands. Picture a hotel; only instead of rooms, identical cooking suites are available to rent designed for restaurant brands looking to expand their off-premise sales without adding to their brick and mortar overhead with an outpost to extend their delivery reach.  Regional hot dog chain Dog Haus is planning to expand nationwide but it’s newest locations won’t have a dining room or bar.  Instead they are using ghost kitchens “devoted to off -premise sales without a dining area, to grow it’s delivery footprint.”  Through a partnership with Kitchen United, concepts from Chick-fil-A to Outback to Carrabba’s and Famous Dave’s are utilizing ghost kitchens as a “strategy for growing off-premise orders without burdening their already busy store locations” The Halal Guys and Canter’s Deli have spots at Kitchen United’s Pasadena, CA location.

Virtual Brands

A virtual brand is a delivery-only food concept sold exclusively online with no physical space for guests to interact with the brand. A single restaurant can have multiple virtual brands running out of their facility with all meals produced in their existing kitchen. This model allows operators an opportunity to lean in on food trends and leverage staff and facility capabilities to create a new branded experience that extends their audience reach beyond their core concept. Some estimate there are about 100,000 of these types of restaurants currently in operation, with more being launched every day.  Take “It’s Just Wings,” a wings and deep-fried Oreo brand on Doordash, which is coming to you from more than 1,000 Chili’s and Maggiano’s kitchens.

 

It’s Just Wings/ Facebook

 

Krispy Rice, an offshoot of Katsuya, a 13-unit sushi concept originally from Los Angeles has designed a $30 bento box designed to compete against higher-end sushi delivery like Sugarfish and is currently operating out of pre-existing Umami Burger and Katsuya locations.

Krispy Rice is a new delivery-only bento box brand spinoff of the Katsuya franchise. (Source: Krispy Rice)

 

Commonalities between the Ghost Kitchens and Virtual Brands

A virtual brand could be produced within a ghost kitchen. If a ghost kitchen, or shared kitchen space offered pickup of shared outdoor dining spaces, they wouldn’t be considered a “delivery-only” brand.  However, there are distinct differences between the two and varying sales tactics to drive delivery-only sales.

 

Sales Tactics for Delivery-Only Virtual Brands 

Target Market Evaluation

For delivery only brands, you are at the mercy of your delivery radius. The radius varies based on the marketplace (Doordash, UberEats, Postmates, Grubhub etc.), but the standard is 5-15 miles or estimated drive time. Understanding your market will help you build successful menus. For example, if there is demand for hot chicken in your area – and also a void in the market, this may be a virtual brand concept to explore.

Menu Optimization

To succeed as a virtual brand, you need to ensure your menu is optimized for each marketplace platform. Each marketplace will have a different strategy to ensure success. This strategy may include creating multiple virtual brands under your brand umbrella to ensure menu segmentation. Menus should be optimized to drive profitable sales, including copywriting, descriptions, allergens, tags & menu item names.

Photography

One of the most important aspects to a successful online-only, delivery-only brand is high quality, beautifully styled and appetite appealing photography.  We do not recommend including your packaging in these photos.

Packaging

Another critical component of any successful delivery only brand is the packaging. You need to ensure your items travel well. Hot food arrives hot, and cold food arrives cold. We have all heard the frustration with how to deliver crispy french fries or pesky items like burgers properly. This can be accomplished! Work closely with your packaging representatives and ensure you select packaging with proper ventilation. Always ensure your bags are sealed and tamper-resistant.

Pricing

One of the main reasons operators do not want to join a delivery-only marketplace is high commission rates. These rates can range anywhere from 12%-30%. Most menus were never built with these types of margins in the first place, let alone now adding packaging costs into the mix. We recommend you look closely at your menu mix and either eliminate items that are not profitable or create new menu items.  If you are creating a new virtual brand, always build in the highest possible commission rate.

Menu Cannibalization

It is good to note that you never have to offer your entire menu on a delivery marketplace. You can create a delivery specific menu for the platforms and have particular menu items only available if your guest orders direct. You can also include groceries, family meals, or special “date night” menu opportunities.

Training and Consistency

Kitchen operations and consistency will be the central focal point of your virtual brand or ghost kitchen. They will need essential training materials such as a safety program, packaging guidelines, a checklist for daily operations, gluten-free and allergen training, and menu item rollouts.

Guest Connection

Not having the ability to create a guest connection in the traditional sense can be another reason brands prefer not to be on a marketplace platform. You will need to find new ways to connect with your guests. This can include a handwritten note, swag, offers to order directly, a small dessert, or anything else to show your guest you value them and are grateful they have chosen to order from you.

3rd Party Tactics

In the beginning, it is imperative to drive as many orders as you can to ensure you stay high on the marketplace algorithm. Put together a marketing budget and plan to achieve 100 orders in the first few days. This budget can include offering free delivery, BOGO deals, or  X item with the purchase of another. You want to deliver a perfect experience each time to ensure you have all positive reviews as a few negative reviews will hinder your chance of success on each platform.