Month: January 2018

In the ever competitive world of faster service and even faster food Subway has pledged to spend an additional $25 million in 2018 for new marketing campaigns to increase sales. While McDonalds at the same time is revitalizing their menu and business practices Subway has decided to bring back the $5 foot long special it had previous to the current $6 price tag. Some franchise owners have voiced their concerns as an ever increasing cost to business and an inevitability to effect the bottom line of their stores. This author discusses the arguments for both sides within this article.

Key Takeaways:

  • Subway is bringing back the five dollar footlong deals in order to help bring customers back into their restaurants
  • Independent franchise owners are against the move, stating it will negatively impact their bottom sales line.
  • The franchise as a whole and stockholders believe that since there were several issues that shadowed a negative image on the company, bringing back the offer is a good choice.

“Though the return of the famous deal might drive more customers to purchase subs, franchise owners are unhappy with the move.”

Read more: https://www.qsrmagazine.com/franchising/subway-franchise-owners-protest-return-5-footlong

Commentary

A Drive-thru apocalypse may be fast approaching in the near future. With the advent of food delivery services and curbside drop-offs many Drive-Thru chains are looking to be more innovative and appealing to the way consumers acquire their meals. Tim Cook and others have expressed the changes and innovations within this article about what consumers may expect. Not just the consumers but investors as well have been looking for ways to adapt and compete in a fast growing market of food delivery services.

Key Takeaways:

  • Technology plays a valuable role in the future of drive-thrus and quick service restaurants but companies must also take into considerations all aspects of how the technology will affect its company.
  • The implementation of mobile ordering over the last year has given Starbucks and Panera Bread both an increase in sales. However, Starbucks was not prepared for this volume of mobile orders.
  • In order to ensure customer satisfaction and product quality throughout the ongoing changes including delivery, menus and packaging may need to be restructured.

“Curbside pickup and delivery will grow in the near future, causing operators to make significant investments in packaging.”

Read more: https://www.qsrmagazine.com/outside-insights/why-2018-will-be-year-drive-thru-innovation

Commentary

A recent countrywide survey of the United States found that a sizable majority of all Americans share in the belief that saving the planet is a top priority that must be addressed. Roughly forty percent view sustainability and ethical consumption as a major piece of their identities both as consumers and as people. Although much of the nation appears largely polarized as of late, it seems that environmental protection is the one topic that inspires widespread consensus. As such, now it is more important than ever before for companies to integrate sustainable practices into their business plans and brand identities.

Key Takeaways:

  • Despite widespread polarization across the USA, Americans increasingly share a belief in the merits of environmental work
  • forty percent of all Americans confirm that they see sustainability as part of their key identities as consumers and citizens
  • The poll also concluded that a sizable majority of citizens agree that it is a shared responsibility among us all to protect our planet

“The national survey, part of a special Eco Pulse report by Shelton Group, confirms a fundamental shift among Americans.”

Read more: http://www.restaurantnews.com/survey-finds-new-way-for-restaurants-to-connect-with-guests-help-them-save-the-planet-121917/

Commentary

With 2018 quickly approaching many restaurant owners have noticed the ever increasing popularity for fast food services. Unlike a typical burger joint many consumers are searching for fast food but also healthy food. Healthy food with quality ingredients produces even more pressure on those trying to compete in this type of food market. Offered within this article are some growing trends and consumer preferences that when combined with known market conditions some say may help restaurant owners enjoy profitability in 2018.

Key Takeaways:

  • Thanks to falling wages and rising supermarket prices, value menu food items will be in high demand
  • Individuals who are willing to spend time and money on a sit down dining venue will expect to also be entertained alongside their meal
  • Social media will continue to grow in importance for businesses and their overall success, with the photo app Instagram assuming particular importance

“Quick-service operators can expect an even more cut-throat market—if such a thing even seems possible—in 2018, as restaurant experts predict tougher competition for the value-minded consumer.”

Read more: https://www.qsrmagazine.com/exclusives/9-fast-food-trends-2018

Commentary

Throughout the entirety of the restaurant industry, there are signs and symptoms of a generational clash between millennials and those from older generations. While many millennials in the industry feel undervalued at their place of work, their supervisors and employers often complain about what they perceive to be a poor or altogether absent work ethic among millennials. Millennials should try to keep a few things in mind about the industry. For one, the generation needs to participate in the culture of tipping. They also must understand boundaries with employers, and should be prepared to put in full effort at any place of employment regardless of whether the job is something about which they feel passionate. Millennials also must learn to operate within a team and be ready to dedicate time and effort before expecting a payout.

Key Takeaways:

  • Recent surveys have found that a striking number of millennials fail to tip appropriately when they dine away from home
  • Whether or not you see yourself staying in a position for the long haul, it is still mandatory to meet acceptable standards of performance and conduct
  • Teamwork is essential to success, and you cannot expect to receive anything that you have not spent time working to earn

“Managers are not parents (see #2 below), but sometimes it seems difficult to criticize a younger generation without it going in one ear and out the other.”

Read more: http://blog.etundra.com/restaurant-trends-and-news/advice-millennials/

Commentary

Direct your teen to work in a restaurant and you are teaching them great skills they’ll take with them into the future, according to a post by David Wither. Of course, Wither also states that working in a restaurant is beneficial for teens for many other reasons, like how to be clean, how to work well with other people, and how to respond to different situations now and later in life. Now it is time to direct your child to a restaurant job!

Key Takeaways:

  • Working in a restaurant seems to be good professional development for those headed into the hospitality industry, as well as those headed into almost any industry.
  • Work requires good time management, minute to minute planning, quickness and efficiency from having your napkins folded to delivering tasty meals and drinks.
  • Teamwork and reliance on one another is necessary, as well as working with and serving diverse people and needs in a clean atmosphere which provides satisfaction and fun.

“Half of all Americans have worked in restaurants at some point over the course of their lives. According to the National Restaurant Association, restaurant work is the first job for one out of three Americans.”

Read more: http://www.servernotservant.com/2017/12/16/8-reasons-your-kids-should-work-in-restaurants-guest-post-by-david-wither-via-today-parenting-team/

Commentary

Moving from an in-store experience to an App based experience for users is not as difficult as it can be for restaurant owners. With the convenience of delivery options and ordering online many consumers are changing the way they want their orders placed. Many know that your Brand Experience is what brings customers through the doors. By digitizing a business some would say you should stick with this type of experience but create an online ordering experience that draws customers just as well. People who order online also tend to spend as much as 26% more and in an ever increasingly competitive market one may not wish to sacrifice this much slice of the pie.

Key Takeaways:

  • Research suggests that when given the option to order food online customers they are likely to spend more than they would without the option
  • Don’t overlook how your customer’s experience with your company through digital platforms can have just as much impact on the brand as other types of experiences.
  • With digital experiences it is important to provide your customers with a consistent and user friendly user interface and user experience.

“The digital transformation is in full swing for companies of all shapes and sizes, and nowhere is that quite as apparent as it is in the restaurant business. A”

Read more: https://www.qsrmagazine.com/outside-insights/going-digital-dont-sacrifice-your-brand-experience

Commentary

There are many business owners who have chosen a restaurant as their business. In this business owners quickly realize that profit margins are quite thin. With rising costs from year to year of real estate taxes, food and ingredients as well as the hikes in minimum wage across the country these profit margins are even more challenging most would say. Here within are some cost saving and cost cutting measures that some may want to consider using to stabilize profit margins for their restaurant.

Key Takeaways:

  • Keep your restaurant’s bottom-line in mind by looking at ways to cut spending without giving up quality.
  • As a restaurant manager, examine how new technology and improving upon back-of-house processes can save you some money.
  • If you want to improve your restaurant’s profit margins, examine areas like your ingredients, staffing, and supply costs.

“In this climate, every penny counts. And restaurateurs are continually re-examining every part of the business, including their ingredients, labor schedules, and food packaging in order to maximize return. To help, we asked experts and operators to identify ways restaurants can maintain fiscal discipline and trim costs without sacrificing quality.”

Read more: https://www.qsrmagazine.com/growth/6-ways-cut-costs-your-restaurant

Commentary

America is known for having an abundance of food, yet there are still millions who don’t know where their next meal is coming from. Feeding America estimates we waste 70 billion tons of food waste per year. Still, 72% of diners care about how to address food waste. There are five things restaurants can do: Know your inventory (always know what you’re buying and what you already have), understand waste stream (try to understand what the kitchen is throwing out, and why), educate your staff (to properly store and prepare products), find alternatives to landfill (try to donate extra food to people in need), and measure and review often (establish a benchmark and follow it to reduce waste efforts).

Key Takeaways:

  • According to a Unilever study, 72 percent of diners in the U.S. claim that they are concerned about food waste and how it is handled.
  • The first step in developing a waste reduction program in your restaurant is to know your inventory and not overbuy.
  • Educate your restaurant’s staff about proper food storage and how to appropriately handle it once it’s unsellable.

“Review and understand what your kitchen is throwing out and why.”

Read more: https://www.qsrmagazine.com/outside-insights/5-tips-reduce-food-waste-your-restaurant

Commentary