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October 2013 Newsletter

Oct 22, 2013

 

Greetings!

The creativity of our friends and colleagues in the restaurant industry continues to amaze and delight—every time we think that there can’t be anything else new or trending, we hear about a miso-maple doughnut or an innovative use for familiar technology.

Two of our stories this month nod to this constant ability for the restaurant universe to reinvent itself. Whereas a year ago we still would have been writing about cupcakes as the ultimate “treat” concept, now we’re seeing an explosion in the number of creative, artisanal donuts.

And those tablet computers that everyone has come to love for their personal use are being repurposed as a guest ordering system and interactive entertainment device on some of the most well-known tables in the country. And while we did a story on Yelp a little over a year ago, so much has already changed with this influential citizen-review site that the subject warrants another look.

To your success, Dean Small and Danny Bendas


Time to Make the Doughnuts

By Joan Lang

 

Krispy Kreme was just the beginning.

Doughnuts have been around for a long time (they’re variously credited to Dutch settlers in New Amsterdam and a New England sailing captain’s mother), but all of a sudden they’re having a moment, joining the ranks of such iconic American cult foods as the hamburger and the cupcake.

And it’s not just the social-media-fueled cronut craze that has caused all the hullabaloo, although the lines to try (a type of milkshake) certainly fanned the flames.

The public’s taste for affordable yet indulgent treats and a renewed interest in fried foods—not to mention the perennial appeal of something deliciously new yet still familiar—have given rise to some serious doughnut buzz. And dedicated doughnut shops are popping up like frozen-yogurt franchises after a cash infusion. Every city has its own special way with doughnuts:

• Federal Donuts, in Philadelphia, does the Brotherly Love thing selling just three things: P.T.’s Coffee, Korean-style twice-fried chicken, and handmade donuts, in flavors that range from honey (included with an order of “Fednut” chicken) to such one-off selections as Vanilla-Lavender, Banana Cream Pie, and Sticky Bun

• In Portland and Eugene, OR, 10-year-old Voodoo Doughnuts (“The Magic is in the Hole”) is famed for its unusual doughnuts, the eclectic decor of its three shops, and its iconic pink boxes, which feature the company’s logo and drawings of voodoo priests. Voodoo was one of the first donuterias to invent such formulations as the Bacon Maple Bar, Mango Tango and various ‘nuts topped with cereal, inspiring such a fiercely loyal following that fans ask to get married there

• The franchised Top Pot Doughnuts, based in the Seattle area, offers “hand-forged doughnuts” in a large array of traditional forms including old-fashioned, cake, Feather Boa (frosted and dusted with coconut) and apple fritters, as well as Top Pot cold-brewed coffee and ice cream

Tip: For a review of various doughnut styles, see this article from Serious Eats

Doughnut Plant has grown from one wholesale location in Manhattan in the mid-‘90s to a branded presence in dozens of trendy retail outlets, including Stumptown Coffee and Dean & DeLuca, on the strength of baker Mark Isreal’s quality-driven recipes and rotating daily selections. Unusual flavors like Tres Leches and Coffee Cake (made with coffee in the dough, glaze, filling and crumble topping) Matcha Te a and signatures like Doughseeds (filled mini doughnuts, with creative glaze & filling combinations) keep the cognoscenti coming back

• In Highland Park, CA, Donut Friend promises custom-made donuts with the donut fiend’s choice of platform (yeast, chocolate or vanilla cake, and “gluten-free-ish), filling (ranging from jams and compotes to fresh fruit and even cheese), glaze, and toppings (bacon, nuts, balsamic reduction). Customers can easily stray into savory territory with creations like Jets to Basil, a $5 behemoth that includes goat cheese, or build their own with the likes of Manchego, quince and rosemary

Not to be outdone, chefs like Taylor McCreary of the Chicago gastropub Park Tavern are doing their own renditions of doughnuts, in this case the popular bacon doughnuts with bourbon-pecan glaze. Roxy, in Sacramento, offers a Bag of House-Made Doughnut Holes on its morning menu, consisting of a handful of sugar-dusted orbs served with chocolate, caramel and fruit dipping sauces. And The Wine Dive, in West Palm Beach, FL, features Hot Damn Doughnuts on its dessert menu: the Louisiana-style doughnuts known as beignets, served with Cinnamon Schnapps ice cream, spicy Hot Damn syrup and candied bacon.

Then there are the doughnut product extensions—not just the Cronut but also such over-the-top mashups as Doughnut Fries and a burger sandwiched between two glazed doughnuts, known as the Luther.

It’s doughnut history in the making.


Can Tablets Replace Servers?

By Brad “Paco” Miller, Operations Consultant

Are we witnessing the end of human interaction in restaurants? As Chili’s Grill & Bar rolls out tabletop tablet computers in 823 units across the U.S., the industry must answer this question: Can tablets replace servers?
Chili’s is certainly not the first to venture into tabletop tablets. Applebee’s, Buffalo Wild Wings, Red Robin and Uno Chicago Grill have tested tablets, in one form or another, in selected stores. Even Umami Burger and California Pizza Kitchen are joining the trend.

According to the largest tablet vendors, Ziosk and E La Carte, maker of the Presto tablet, your appetizer sales should increase by 20%, dessert sales should jump 30% and servers should expect a 15% increase in tips! These vendors also tout faster ticket times, leading to more table turns, and huge increases in signups for loyalty and email programs.

Both the Ziosk and Presto tabletop tablets offer similar functionality: ordering (limited items or full menu); payment with credit card or prepaid account; games; jukebox features; loyalty club sign-ups; Facebook/social media access; and advertising/promotions.

Then there’s the iPad, which Fleming’s Prime Steakhouse uses for its wine lists and dessert menus only, but with no ordering ability. According to longtime Fleming’s server Thomas Martinez, “I’ve seen my dessert sales increase and it helps with wine pairings. There’s an educational (component). Once customers know how to use it, it’s a great sales tool.”

Tablet computers have already demonstrated their usefulness in streamlining ordering and the payment process. They’re also great marketing tools, with significant upside in such areas as real-time guest survey results, customer database building and connectivity to social media. But the ability to replace the human factor has yet to be seen; most operators view tablets as an experience enhancement, not an alternative to service.

The next question is always “How much will this cost me?” According to Ziosk and E La Carte, the systems can be relatively inexpensive through leases. If you opt to go the mobile app route, ETab International offers programming of a mobile application that can be downloaded on your smartphone or tablet. Although you won’t have to purchase the hardware, there will be a cost associated with programming and maintenance of the app.

Is this all really necessary? The future will tell. Until then, if you really are thinking about rolling out tablets in your restaurants, here are a few things to consider before you hop on board:

• Tablets are not server replacements, but experience enhancements
• Prior to purchase, reach a team consensus on your goals and strategy for the tablet’s use
• Using tablets requires regular training, IT, WiFi and support procedures
• Tablets should be compared based on durability, battery life, and POS-compatibility

And don’t forget to stock more desserts.

For more information on technology and your restaurant, contact Synergy Restaurant Consultants.


The Evolution of Yelp

By Joan Lang 

In the nine years since it was launched as a user-generated review site, Yelp  has become a formidable social force—both the bane and potential ally of businesses everywhere, including restaurants. Why? More than half of all users make a decision to purchase (or not) based on what they see on the site.

Although Yelp gets criticism from disgruntled restaurants as well as the likes of Consumer Reports, the company claims that more than 100 million consumers checked its listings in 97 U.S. and international markets in just the first three months of this year alone. Search for a restaurant you’re interested in, in fact, and its Yelp profile is apt to appear second only to the restaurant’s own website.

Sites like Yelp have virtually obliterated the hegemony of the local newspaper review and other paid, professional criticism—not to mention services like Zagat Survey, the original crowd-sourced restaurant guide. Yelp’s brilliance lies in the fact that it allows any person who has an opinion to become a citizen reviewer, to the tune of some 42 million contributed reviews.

And Yelp’s influence is growing, not least with new features such as health-inspection scores, an online ordering platform, and mobile posting capability—with more than 10 million mobile apps in use, this will greatly increase the number of reviews. The company has also acquired the online reservation service SeatMe, which will enable users to make a reservation directly from a restaurant’s Yelp page.

But there are less positive issues. Fake reviews—including those posted by businesses themselves—have emerged as the preeminent threat to the trustworthiness of user-generated content. According to a recent Harvard study, 16% of restaurant reviews in the test city of Boston were fake, although Yelp says that its filters discard about 25% of its submissions.

Then, too, review sites have empowered diners in a way that no one could have foreseen as recently as five years ago, leading to some notable bad behavior on the part of customers who will hold the threat of a bad yelp review over a restaurateur’s head.

All of this has greatly increased the difficulty operators have in managing their online reputations. But there are many ways that restaurant management can maximize their engagement with Yelp and other public-forum reviews and use them in very positive ways.

• Claim your free Yelp business account and take advantage of the tools it offers, such as private and public messaging, which can be used to respond to users, correct misconceptions, and address specific complaints

• Use your profile proactively to make your restaurant as appealing as possible to your target audience and potential new customers, with information such as hours of operation and forms of payment, links to menu, photos and more. Update it when anything changes; a service like Single Platform can do this automatically across a variety of social sites

• Monitor your reviews regularly, both so you can respond professionally and appropriately to reviewers’ opinions, and as a source of free constructive criticism. Tales of owners who discover problems like a rude hostess or parking problems because of yelpers are legion (and so, too, are the instances of business owners who have gone postal on reviewers —don’t do it)

• Consider designating a trusted employee or even subscribing to a service to track and distill crowd-sourced comments, for the purpose of spotting and implementing the insights gained. Google Alerts is another valuable tool for monitoring all of your online reviews

• When it makes sense, address negative comments and concerns publicly, rather than privately, so that other readers can see that you care, and are taking active steps to correct problems and address commenters’ concerns. (You may want to email the critic privately first, to get more information and make sure you’re understanding the reason for the unfavorable comments.) This is how negative reviews can be turned into positive ones, and build sales

• Private responses are a tasteful and appropriately personal way to thank yelpers who have written nice reviews, particularly if you know them as regulars or local tastemakers, such as bloggers.

• Check carefully for false reviews, flag them and get them removed. If a review states that your brunch is overpriced but you don’t serve brunch, you’re dealing with hearsay, mistaken identity or disgruntlement

• Get the most out of the reach Yelp gives you by using resources such as Yelp Deals, partnerships and other events that will get more customers through the door—and, hopefully, boost your ratings, which can translate to greatly increased sales, according to at least one study

• Strengthen your reputation through other social media sites such as Twitter, Facebook and Instagram, in order to build your own community . Collectively, these tools give you what is known as social proof, which is a powerful source of new sales and customer engagement

Never “hire” a review or make your employees seed your profile with good comments; it could backfire big-time, up to and including fines


Tip of the Month

Want more information about Yelp and online-reputation management? For a detailed report on Yelp and other crowd-sourced review sites, see this article from Top Ten Reviews. Also of interest are the following links to qsrweb.com (how to control crowd-sourced content), Fox News (for ideas of fun ways to use Yelp reviews, both positive and negative) and Open Forum (with a two-part expose on advertising solicitation and more). The subject of Yelp marketing gets good coverage from SEO expert Jackson Lo and on Social Media Examiner.