The Worldwide Organic Food & Beverage Industry is Anticipated to Reach over $360 Billion by 2027

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The Worldwide Organic Food & Beverage Industry is Anticipated to Reach over $360 Billion by 2027

The “Global Organic Food & Beverage Market Overview, 2022-2027” report has been added to  ResearchAndMarkets.com’s offering.

According to this report the organic foods & beverage industry has grown into a multibillion-dollar industry with distinct production, processing, distribution, and retail systems.

The global market is a home to organically produced food range of fruits & vegetables, meat, fish & poultry, dairy products, and frozen & processed products while the beverage segment includes a range of dairy alternative, coffee & tea, beer & wine among others. Growing adoption of organic food & beverages owing to associated health benefits and eco-friendly characteristics is to drive demand over the forecasted period.

The global market was valued at around USD 183 billion in 2021, which is anticipated to reach over USD 360 billion during the forecast period, registering a CAGR of more than 12% for 2022-2027.

The steady growth of the organic market has led to a proliferation of opportunities for farmers in developing regions. Higher prices, potentially higher profits, resource availability, and general compatibility with local cultivation systems make the expansion of organic production a particularly interesting prospect in regions like sub-Saharan Africa and India.

The organic food market has a high share of organic food compared to organic beverages, dominating the market with a share of over 90% in 2021. With the increase in awareness and easy availability, the organic beverage segment has gained more acceptances in the market and is projected to grow at more than 14% CAGR by 2027.

Increasing consumer needs towards organic food and beverages products are also helping the market players to position themselves in the global organic food and beverages market by launching a variety of innovative products. Regulatory authorities in different countries are taking initiatives towards setting standards and regulations for the promotion of safe and healthy organic foods and beverages.

The organic fruits and vegetable segment registered the highest market share in the year 2021. Factors such as the emergence of numerous local breweries and the increasing popularity of non-alcoholic organic beer among the younger population are promoting the sales of organic beer across the globe. However, due to the high cost, the segment is to remain the least contributing segment by the end of the forecasted period.

Currently, North America and Europe are the largest markets for organic food and beverages, owing to the influential presence of the target population in the region. By the end of 2027, it is expected that the Asia-Pacific region would witness significant growth.

The basic challenges faced by the global organic food and beverages market are in the form of high conversion cost from conventional farming to organic farming, supply shortage of organic food and beverages in major European and North American markets, non-uniform organic regulations across the globe, and high prices of organic food products. Consumers are switching to organic products as a difficult proposition, as organic food is more expensive than non-organic food.

Moreover, organic seeds are usually priced higher than conventional ones. With the establishment of exclusive diet centers, untapped geographical regions such as India, South Africa are offering a rising demand; the limited shelf life of organic foods poses limitations in the market. However, each factor would have its definite impact on the market during the forecast period.

COVID-19 Impacts:

The pandemic of COVID-19 has had a tremendous impact on the organic food and beverage market. As consumers grew aware of the importance of a strong immune system as a result of this uncertainty, their purchasing patterns altered, and they favored more organic and natural goods.

Despite having higher prices than non-organic products and the world GDP decline being the biggest in decades, organic food sales witnessed a spike in 2020. The growth rate of organic packaged foods and beverages was the highest among all health and wellness categories. Starting in 2020, consumers shifted their food purchasing and consumption habits during the period of COVID-19 when restaurants were closed and home cooking became the norm.

Major Companies considered in Report:

Amy’s Kitchen, Danone – WhiteWave Foods, Eden Foods, Inc., General Mills, Hain Celestial Group, Nature’s Path Foods, Inc., Organic Valley, SunOpta Inc., United Natural Foods, Inc, Whole Foods Market

Key Topics Covered:

1. Executive Summary

2. Report Methodology

3. Market Structure
3.1. Market Considerate
3.2. Market Definition

4. Economic /Demographic Snapshot

5. Global Organic Food & Beverage Market Outlook
5.1. Market Size By Value
5.2. Market Share
5.2.1. By Region
5.2.2. By Country
5.2.3. By Company
5.2.4. By Type
5.2.5. By Product
5.2.5.1. By Organic Food Product
5.2.5.2. By Organic Beverage Product
5.2.6. By Sales Channel
5.3. Global Organic Fruits & Vegetables Market Outlook
5.4. Global Organic Meat, Fish & Poultry Market Outlook
5.5. Global Organic Dairy Products Market Outlook
5.6. Global Organic Frozen & Processed Food Market Outlook
5.7. Global Organic Non-Dairy Beverage Market Outlook
5.8. Global Organic Coffee & Tea Market Outlook
5.9. Global Organic Beer & Wine Beverage Market Outlook
5.10. Global Organic Food Policy Overview

6. North America Organic Food & Beverage Market Outlook

7. Europe Organic Food & Beverage Market Outlook

8. Asia-Pacific Organic Food & Beverage Market Outlook

9. South America Organic Food & Beverage Market Outlook

10. Middle East & Africa Organic Food & Beverage Market Outlook

11. Country Wise Organic Cultivation & Policy Overview

12. Market Dynamics
12.1. Market Drivers
12.2. Market Challenges

13. Market Trends and Developments

14. Competitive Landscape

15. Company Profiles
15.1. Amy’s Kitchen
15.2. Danone – WhiteWave Foods
15.3. Eden Foods, Inc
15.4. General Mills
15.5. Hain Celestial Group
15.6. Nature’s Path Foods, Inc.
15.7. Organic Valley
15.8. SunOpta Inc.
15.9. United Natural Foods, Inc
15.10. Whole Foods Market

16. Company Overview
16.1. Alnatura Produktions
16.2. Aurora Organic Dairy
16.3. Clif Bar & Company
16.4. EDEKA Handelsgesellschaft Nord mhb
16.5. Hipp GmbH & Co Vertrieb KG
16.6. Newman’s Own

17. Strategic Recommendations

18. Disclaimer

For more information about this report visit https://www.researchandmarkets.com/r/m3649d

Published By: Yahoo!Finance


Circumventing the Effects of Inflation through Effective Menu Pricing

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Circumventing the Effects of Inflation through Effective Menu Pricing

You are probably weary of hearing about soaring inflation and not having a proper solution to address your problems. Yet, it is a reality that no restaurateur can escape. While there seems to have been some reprieve in the second half of this year, with the annual inflation rate slowing for a fourth month to 7.7% in October, the figure is still pretty high. The rate of increase in food costs has also come down – 10.9% from the previous 11.2% – and yet the fact remains that prices are still going up. Despite the dip in the latest inflation percentages, Trading Economics cautions that, “Figures continue to point to strong inflationary pressures and a broad price increase across the economy.”

It is natural to be worried by the forecasts, after all, high inflation means higher costs. It is not practical to simply keep raising your prices to combat the effects of inflation. Regular price hikes are not looked upon kindly by customers. A Revenue Management Solutions report showed that, as early as March this year, 63% of diners complained that restaurant prices were too high. With customers being unhappy about having to fork out more each time they visit, you need to find other ways to navigate menu pricing. Here are five tips that will help you achieve that delicate balance between covering costs and keeping your customers happy.

reduce-the-range-of-offerings-applova
  1. Reduce the range of offeringsHaving a wide range of items on your menu was an effective pull factor for customers back in the day when things were not so pricey. Navigating menu pricing in the current context requires you to think about your spending on ingredients versus what you sell. By removing those items that are less in demand you can reduce food wastage leading to a huge saving. You can also order ingredients in bulk, bringing down your cost. The math is simple: with your expenses stabilized you can afford to keep your menu prices as is.
  2. Serve lessThe two biggest contributors to food wastage in the US are supermarkets and restaurants. What this means is that you are probably serving way too much in each portion. Reducing portion sizes will help you navigate menu prices by controlling your expenditure. Don’t make it too drastic though – the last thing you need is for your customers to feel cheated. Play it safe and inform customers that you will be cutting down on quantity. If you word it well and offer a sound explanation, they are sure to understand.
  3. Expand your supply chainA major force in driving inflation up has been supply chain disruptions. Within this context, the proverb, ‘ Don’t put all your eggs in one basket’ is extremely pertinent to the F&B sector. Maintaining reasonable menu prices requires reliable vendors. Build a network of suppliers so that you have options when vendors face difficulty or hike up their prices unreasonably. Having many suppliers also puts you in a stronger position to negotiate better rates.
  4. Use cheaper ingredientsFood costs account for 35% of a restaurant’s total costs. Take a close look at what you pay for your ingredients and look for cheaper alternatives. Buying locally will save on transport, while buying in bulk is more economical. Seasonal ingredients also tend to be cheaper so consider adding specials into your menu. The goal is to control your spending so that you can keep your menu prices steady.
  5. Capitalize on data analyticsUnderstanding the sales patterns of your restaurant is vital to navigating menu pricing. Check your data analytics and get a handle on what sells and what is overlooked. Look at the possibility of making a slight increment to the price of your bestsellers. Consider what you want to do with the less popular items – can you promote them or would it be better to simply scrap them? Find the most profitable items on your menu and then figure out how to push these. You can make your menu a lot more profitable by utilizing data analytics.

Given how expensive basics are these days, customers are trimming the extras and, sadly, dining out is one of the areas where they are tightening their purse strings. If you want your customers to keep coming back, you need to make sure that your food and drink are affordable. Try out the menu pricing strategies above and keep your restaurant on the path of profitability as you head into the new year.

Published By: Applova

Why Should Restaurants Adopt Dynamic Pricing? Let’s Ask Them

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Why Should Restaurants Adopt Dynamic Pricing? Let’s Ask Them

The results from my recent survey are in and in this series of articles we’ll be talking about some of the findings. We now have a total of 142 respondents who shared their definitions of dynamic pricing, their thoughts on where dynamic pricing had the most potential, the potential challenges they foresaw and talked about the likelihood that dynamic pricing would be adopted in the industry.

In my last article, I talked about how the definition of dynamic pricing varies, but that in general dynamic pricing is all about prices varying based on demand.   

OK, this is nice, but why would a restaurant adopt dynamic pricing? Given my experience in the hotel and other industries, I can think of many reasons, but decided to ask the survey respondents what they thought. Not surprisingly, the top reason (92 percent of respondents) was to increase revenue. But reasons No. 2 and No. 3 might surprise you. The second most chosen response (82 percent) was to spread demand to slower periods, while the third was to better manage capacity (70 percent). To me, this indicates a good understanding of the fact that dynamic pricing is NOT just about increasing prices during busy periods. Let’s dive in and talk about the these benefits.

Reason No. 1:  Increase Revenue

The hotel and airline industries typically achieve 3–5 percent revenue gains with revenue management and dynamic pricing. Dolan and Simon, in their cross-industry study on pricing, found that a 1 percent increase in price led to a 12 percent increase in profit. If you can maintain your current sales volume, the profit potential is even higher.  

Let’s take a look at the revenue gains that some of the pricing companies have been able to achieve. Koti Pizza has achieved 6 percent increase in revenue by using Priceff’s dynamic pricing for delivery. DynamEat, in their work with a multi-unit restaurant chain, was able to increase the margin for dinner by about 15 percent without reducing volume. Similarly, Piada was able to double delivery margins by using Sauce Pricing.

Given the experience of the airline, hotel, cruise line and multiple other industries, I am confident that appropriate use of dynamic pricing will lead to increased revenue and profit.  Please note my use the term “appropriate.” Appropriate entails increasing profit without affecting customer satisfaction. As Carl Orsbourn of Juicer states, “ surge pricing is not the best way to describe how dynamic pricing can help restaurants. Setting guard-rails on upper and lower thresholds for prices is important so that the guest experience isn’t impacted negatively through the introduction of this functionality.”

Reasons No. 3 and 3: Use Price to Help Spread Demand

I’ve lumped reasons No. 2 (spread demand to slow periods) and 3 (better capacity management) together, since they are essentially the same thing. For example, as one respondent stated, “Dynamic pricing changes based on a range of factors selected by management to take advantage of high demand and also generate increased interest in low demand. This could relate to times of day, menu items, seating locations or more.” Similarly, another respondent said,“‘Pricing that fluctuates according to demand. Lower prices when demand is low. Higher pricing when demand is high.”

Restaurant demand varies wildly throughout the day and by day of week. At times, demand is so high that the kitchen can’t keep up. Rather than taking the risk of dissatisfying customers whose orders can’t be fulfilled in a timely fashion, some operators turn off (throttle) some of their distribution channels (i.e.  online orders, takeout orders) to reduce demand to a manageable level. Throttling has become so widespread that it’s even offered by providers such as Olo, Toast, and QSR Automations.

Think about it. By throttling, we’re turning away customers who obviously want to patronize our business. As Orsbourn told me, “Most restaurants don’t know their optimal capacity. It is left to throttling switches which may not be as informed in their level setting as they should be. Even more concerning, is when throttling switches don’t get switched back on. There has to be a better way to curtail orders than to just switch off entire sales channels—we believe dynamic price changes are one such approach.”

I agree, as do the survey respondents, that this is an area where dynamic pricing can help with.   

What can we do to get them to dine with us during slower periods? Isn’t that exactly what restaurants have been doing with happy hour and early bird specials for years? Dynamic pricing is just adding a twist to this—think of it as “happy hour on steroids.”

Happy hours and early bird specials work, but what about other slow periods;   would dynamic pricing work? The answer is a resounding yes. For example, in a 2004 study, Alex Susskind and his colleagues found that 75 percent of customers were willing to switch to an off-peak demand if given an incentive to do so. The question then becomes one of what that incentive should be. That’s where dynamic pricing can help.

Another question that arises is whether dynamic pricing can actually help spread out demand. At Koti Pizza, a Harvard study has shown that they were able to reduce within-week demand variation by 10 percent while achieving a 6 percent revenue increase along with a 10 percent increase in transaction orders. Based on this, again, the answer is a resounding yes!

Avoiding Cannibalization

This sounds great, how can you make sure that you don’t cannibalize your business during busy periods?

One of the concerns that operators often have with dynamic pricing is whether offering lower prices to certain customers or at certain times will cause customers who would normally be willing to dine at full price to avail themselves of the discounts.

The hotel and airline industries have faced a similar issue and use rate fences to help distinguish which customers can get the lower prices. For example, with Marriott, customers have to either “do” something or ‘be’ something in order to get a lower rate. Examples of “doing” something might be things like booking for a slow night or opting for a non-refundable reservation.  On the other hand, “being” something might include things like being a member of the loyalty program, being over 60 or working for a certain company. By using these rate fences, they have been able to effectively reduce cannibalization. Rate fences can not only help to reduce cannibalization, but can also answer the second fundamental pricing question:  how should you determine which customers pay which price?

Restaurants can adopt a similar strategy. “Doing” something might be placing an order ahead of time or choosing to dine during a slow period. “Being” something could be being a member of the restaurant’s loyalty program or be using a targeted promotion.

Back to the Why?

So, why should restaurants adopt dynamic pricing? The survey respondents have spoken: one, so you can increase revenue and two, so you can better spread demand to your off-peak periods. By doing so, you will be able to increase revenue and profit for your restaurant.

What’s Coming

In the next article, I’ll be reviewing the ordering and revenue streams that respondents think have the most potential for dynamic pricing. After that, I’ll be analyzing the potential challenges facing operators, providing an overview of what people have tried and discussing the likelihood of the industry adopting dynamic pricing practices.

Published By: QSR

WHIO ‘A good tip can mean a lot;’ What service industry workers say help during the holidays

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WHIO ‘A good tip can mean a lot;’ What service industry workers say help during the holidays

When it comes to the holidays, money matters.

During the holidays, many people in the service industry hope customers are feeling a bit more generous.

News Center 7′s Gabrielle Enright went into the Miami Valley to find out if people are generous or grinches.

“A good tip can mean a lot,” Brittany Morgan has been a waitress at Nick’s Restaurant in Xenia for more than a decade. “I’ve got two little kids, seven and three.”

Morgan says she doesn’t expect a tip but hopes it happens. She admits she gets more money this time of year.

“They will definitely say I know it’s Christmas, and you’ve done a really great job. here’s an extra $10, $5. Anything is really appreciated.

Servers in the Miami Valley make $4.95 per hour, and taxes take a big bite out of it. She often only sees the cash she takes home that day.

“I get really excited when I have a really good day in here!”

When it comes to tipping, cash is king. That’s true in the restaurant industry and many others too.

Brent Johnson, one of the owners of Square One Salon and Spa, says his team works hard, especially around the holidays.

“Tips or gratuities are not expected, but they are always appreciated,” Johnson tells us.

He says if you can’t make your appointment, please call, so they can book someone else.

“Since most of our employees are on commission when you don’t show up, they don’t get a paycheck. That definitely affects their ability to take care of their families and the holiday season.”

So how much should you tip? According to Nerd Wallet, people should consider tipping 15 to 20 percent of their bill.

  • Give a dollar or two per drink to bartenders or 15 or 20 percent of your total bill.
  • You’re considered kind if you give someone who prepares your food or coffee a 10 to 15 percent tip.
  • 15 percent tips are the standard for delivery drivers.
  • For beauticians and cosmetologists, a 15 to 20 percent tip is often considered the norm.

Published By: Yahoo!news

The Hottest Trend of 2022: Worker Strikes

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The Hottest Trend of 2022: Worker Strikes

In 2022, after two years of working on the frontlines of the COVID-19 pandemic, workers across the country made clear that they’d had enough, and walked off the job. This year brought an unprecedented spike in strike activity across multiple industries, but from Starbucks to Chipotle to McDonald’s, nowhere was this surge of worker power on display more prominently than in the restaurant industry.

Perhaps the biggest labor story of 2022 is that of Starbucks Workers United, a Workers United affiliated union that has organized thousands of employees at more than 250 Starbucks locations across the country. Over the past year and a half, Starbucks workers at locations across the country, from California to Massachusetts, have gone on strike in 17 states. This summer, Boston-area Starbucks employees spent more than two months on the picket line, protesting a new policy that requires workers to have a minimum availability each week. (The strike ended, as the New York Times reports, a few days after Starbucks announced the policy would not apply to unionized stores.) Starting on October 26, workers at a Starbucks Reserve Roastery in New York City walked off the job, alleging that the company had refused to deal with a bedbug infestation at the cafe, along with complaints about mold in the ice machines. Starbucks initially denied those claims, but New York state inspectors found that there was, in fact, mold in the ice machine. The strike lasted for 46 days, ending only after the union says it secured a thorough bedbug inspection and remediation, improved health and safety training, and an “increased cadence of maintenance and cleaning” in the cafe. Eater reached out to Starbucks for comment on the strike, but the company did not respond to our request.

In the most high-profile Starbucks strike, November saw baristas at more than 110 locations announced they would walk off the job on Red Cup Day, a major sales day for the company. As workers picketed outside those locations, the union handed out its own version of the chain’s famed red cups, rebranding the day as the Red Cup Rebellion.

Wages and working conditions have been key sticking points in worker strikes. In the spring, workers at a Los Angeles McDonald’s location walked out in protest of hazardous working conditions; that same month, Dollar General employees in North Carolina went on strike over low wages. Thousands of fast-food workers in California went on strike in June to demand that legislators pass AB 257, a bill that would “establish higher minimum standards for wages, working hours and conditions” for workers across the industry. A group of not-yet-unionized Taco Bell employees in Kansas City walked off the job during the lunch rush in September, citing poor wages and workplace hazards. “We need a living wage, respect, safe working conditions, and a union,” read a sign taped to the restaurant’s window.

Also in September, 1,000 food workers at San Francisco International Airport went on strike, demanding higher wages and improved health insurance. Though it only lasted three days, the airport strike resulted in $5 hourly pay increases for unionized workers, along with fully paid health insurance for workers and their families. The California fast-food worker strike drummed up support for AB 257, and on September 5, California Gov. Gavin Newsom signed the bill into law. (Perhaps not surprisingly, the fast-food industry rushed to challenge the law. Now, California voters will decide whether or not the law, called the FAST Act, will remain in effect when they head to the ballot box in November 2024.)

This uptick in strike action is the culmination of nearly three intense years of organizing and labor action in the hospitality industry as workers came together to protest their working conditions at the height of the COVID-19 pandemic. “The pandemic put a lot of pressure on in-person service workers, and the conditions made them think more intensively about the jobs that they do,” NYU professor Andrew Ross told Eater back in April. “They realized, ‘Wow, I’m an essential worker, and essential workers should have essential rights.’”

Only time will tell whether or not these incredible gains in restaurant industry union momentum will continue, or if the movement will run out of steam as a potential recession looms on the horizon. What is clear, though, is that restaurant workers across the country are fed up with being treated poorly on the job, and are prepared to strike to secure the wages and benefits that they deserve.

Published By: Eater

Senators introduce tax credit bill for restaurants left out of RRF

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Senators introduce tax credit bill for restaurants left out of RRF

Dive Brief:

  • Democratic Sens.Patty Murray (Washington), Sherrod Brown (Ohio) and Ben Cardin (Maryland) introduced a bill Thursday to offer payroll tax cuts to those restaurants that applied for but did not receive Restaurant Revitalization Fund grants, according to a press release from Murray’s office.
  • The payroll tax credit would allow eligible restaurants to receive a refund of up to $25,000 per quarter in 2023. Employers with 10 or fewer employees in Q3 2022 are limited to total of $25,000 for all four quarters. The cap is reduced by $2,500 for each staff member over 10. 
  • In an Instagram post published Thursday afternoon, the Independent Restaurant Coalition celebrated the introduction of the bill, calling it “a pivotal moment for the restaurant and bar industry.”

Dive Insight:

Murray’s press release indicated that some in the Democratic Party feel the fight for an RRF refill is not over, despite that bill’s defeat in the Senate earlier this year.

“[The] Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat,” Murray said in a statement.

Murray’s office estimated about 175,000 restaurants could apply for some sort of refund under the proposed tax credit scheme. Cardin, in the press release, said the tax credit was necessary to help restaurant operators repay debt, offset rising labor costs and manage supply challenges.

The IRC said it was reaching out to every member of Congress to seek their support for the tax credit bill. The IRC also highlighted the shortfall between the RRF’s first funds and the amount of sales wiped out by the COVID-19 pandemic.

“[Restaurants] lost over $280 billion in the first year of the pandemic alone and received a mere $28.6 billion in dedicated RRF relief,” the IRC said on its Instagram page.

According to the text of the bill, restaurants are eligible if they were open before the COVID-19 pandemic, applied for but did not receive RRF money, paid payroll taxes for pay periods covering at least two quarters of 2021, and pass a test of their gross receipts.

Restaurants that reported a drop in gross receipts of over 50% in either 2020 or 2021 compared to 2019 are eligible. Restaurants that saw an average drop in gross receipts of over 30% compared to 2019 during 2020 and 2021 also are eligible.

Published By: RestaurantDive

Restaurant Staff Performance Management Techniques

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Restaurant Staff Performance Management Techniques

Restaurant managers are always looking for new ways to make the day-to-day process of running their business easier. One way to do this is by utilizing performance management techniques when evaluating staff to identify who is performing well, who may need some help and those who need letting go.

As a manager, hiring an employee doesn’t mean your job is over. Training must take place and periodically measuring their performance is critical in making sure the restaurant is running smoothly. Having worked as a business coach and consultant for over 30 years,  I have helped many restaurateurs with multiple performance management techniques. Here are a few of the techniques managers should use when evaluating their team.

Setting Goals

Setting expectations is important when wanting to get the most out of staff members. When employees don’t understand the expectations of the manager, their performance can fall short. Give your team short and long-term goals. Check in with them at least once a week to make sure they are meeting those goals and offer feedback to help them reach the goals you have set.

While staff work towards their goals, managers need to monitor key performance indicators to follow their progress. Modern point-of-sale systems will generate analytics on each employee so you can create actionable insights. Typical insights for restaurant staff include customer satisfaction, number of tables served, turnover rate, and how many specials are being sold. When an employee is meeting and even exceeding goals, you can decide how to incentivize them. 

Incentivizing Staff

Weekly evaluations provide staff with important feedback necessary in helping them become better at their jobs. When noticing an employee going above and beyond in their position, then it may be time to reward them for their hard work. Common incentives include bonuses, awards, pay raises and extra vacation time. It is up to the manager to determine the best incentives for their staff.

Creating a Performance-Based Culture

Having a performance-based culture at your restaurant will keep your team working at high levels because they know the better, they are performing the more likely they are to receive the incentives you have in place. 

Install a performance dashboard in the break room where staff can see their performance and their colleague’s performance. This helps each team member see where they stand and where they need improving. As the manager it is your responsibility to update and review the dashboard on a weekly basis.

Having a performance-based culture at your restaurant will keep your team working at high levels.

Restaurant managers need to create categories for each position. For servers and front of house staff you should create categories such as turnover rates, customer satisfaction, number of tables served, and positive reviews. Kitchen staff need a separate system such as number of returned dishes, prep times, and how long it takes food to reach the pass. Having this chart on display creates accountability. When they look at the chart they can see where they need to improve, and this will help boost their performance.

Managers must also add themselves to the charts, so the team can see they are holding themselves accountable and are working to improve their work habits as well. 

Restaurant Staff Monitoring

Installing the right point-of-sale system in your restaurant helps management evaluate staff members performance. Having the right software in place can help managers track turnover rates, sales, number of customers served and the overall efficiency of staff. 

Maximizing the use of your point-of-sale system simplifies the management process for your restaurant and helps track opportunities where you can eliminate unnecessary costs.

Staff Inspiration

Managing the performance of your staff isn’t an annual event. You need to be motivating team members every day. Management must also lead by example. As a manager, maintaining high standards inspires your staff to perform their best. When you are working hard and living up to expectations staff members will take notice of the effort you are putting in and it will encourage them even when you don’t realize it.

All managers need to create a productive work environment. Work with employees to help them understand that when the individuals succeed, the overall team succeeds, and in turn the business succeeds.

Restaurant staff performance helps drive the business towards success. If the team is performing their tasks at a high level, then you can be sure your customers are happy and likely to return to the restaurant. Using performance enhancing techniques keeps the expectations of staff at optimal levels and provides management with better overall performance from the team which helps drive sales and customer service.

Published By: Modern Restaurant Management

Does the Restaurant CPG Trend Have Staying Power?

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Does the Restaurant CPG Trend Have Staying Power?

Despite higher grocery inflation, consumers continue to splurge on their favorite restaurant brands at retail, fueling a trend that has gained significant momentum in recent years.

“Restaurants are looking to exploit brand loyalty that really reignited during the pandemic,” Jennifer Bartashus, senior analyst with Bloomberg Intelligence, told The Food Institute. “It is a way to ensure steady incremental revenue through licensing agreements or product sales at retail.”

But with foodservice on the road to recovery, how long will this momentum last?

Key Drivers

Restaurants have been dabbling in CPG space for decades, but in the past three years the restaurant CPG sector has exploded, reported Restaurant Business. Noteworthy launches include signature sauces from Chick-fil-A and Whataburger, Panera Bread’s refrigerated and bakery offerings, and desserts, drinks, and cereal from Cinnabon.

When indoor dining shut down in 2020, many restaurants pivoted to grocery products to stay top of mind for consumers, said Joan Driggs, VP of thought leadership at IRI in the same article.

Now, with inflation high, restaurants are staying agile with their business models to cater to more occasions and consumer needs.

“Increased interest in restaurant-brand grocery products tends to coincide with recessions,” said Driggs. “When budgets are pinched, consumers feel they can’t afford to dine out as much, but they like recreating the restaurant experience at home with familiar products and flavors they spot at the grocery store.”

Trend Outlook

With foot traffic gradually increasing across the foodservice sector, many restaurant operators have less incentive to leverage the direct-to-consumer channel as a matter of survival. In the year ahead, however, operators may continue to utilize CPGs to combat inflationary challenges

“As restaurants grapple with balancing price increases to offset higher costs, revenue from CPG sales can help,” said Bartashus. “Even with high food inflation that started at the end of 2021, consumers have been surprisingly loyal to brands at retail. Private label product sales have risen, but not as fast as many would have expected.”

With the return to normal continuing to progress, the industry may also see the reversal of this trend — direct-to-consumer (DTC) brands showing up in restaurants — coming to life, noted Filip Pejic, co-founder at Pearly Drinks.

“Brands selling condiments, beverages, spices, and other products will start to appear in select restaurants as a new unique marketing channel,” Pejic told The Food Institute. “This will provide both restaurants and DTC brands a new and unique way differentiate themselves and attract customers.”

Published By: The Food Institute

Self-Checkouts Often Inaccessible to Disabled Shoppers

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Self-Checkouts Often Inaccessible to Disabled Shoppers

In July 2018, Melissa Sheeder, a visually-impaired person, attempted to use the self-checkout lane at a Maryland Walmart. After struggling to scan some of the items, Sheeder’s friend, who is also visually-impaired, asked a nearby employee for help.

But instead of helping them check out, the Walmart employee canceled the transaction, helped put the merchandise back in their cart, and directed them to a cashier lane.

A few months later, the National Federation of the Blind (NFB) sued Walmart, arguing that the company violated the Americans with Disabilities Act by “excluding blind people from using the service in the way that it was intended – independently and privately,” as stated in court documents. Sheeder was one of three plaintiffs in the suit. Last year, a federal judge in Maryland ruled in Walmart’s favor.

Since then, self-checkout lanes have continued to cause issues for disabled customers.

Unequal access to privacy

From a consumer perspective, the merits of a self-checkout lane are speed and privacy. During the 2018 lawsuit, Walmart maintained that its self-checkout system is accessible because staff are trained to help. But if disabled customers have to ask for assistance, not only will the transaction likely take longer, they also lose the option to keep their purchases private.

“When it comes to the self-service checkouts in retail stores, we all understand that there are certain items we might want to purchase which are of a personal nature,” said Nicky Shaw, U.S. operations manager at Storm Interface, a company that creates assistive technology products  used at both Taco Bell and McDonald’s, in an interview with The Food Institute.

“Having the option to check out independently is unfortunately not available to all customers because of inaccessible POS,” Shaw explained. “By denying some customers this option, what message is the retailer sending to those customers?”

Meanwhile, self-checkout has only become more ubiquitous in the last few years. In 2018, self-checkout represented 18% of all grocery store transactions. By 2021, when the Walmart ruling came to pass, that figure had increased to 30%, according to FMI.

Walmart, Kroger, Dollar General and Albertsons are all piloting stores that consist entirely of self-checkout lanes.

“Having the option to check out independently is unfortunately not available to all customers because of inaccessible POS. By denying some customers this option, what message is the retailer sending to those customers?” -Nicky Shaw, U.S. operations manager at Storm Interface

Working toward new regulations

As a result, the Walmart case is “probably not the last you have heard of this type of suit,” said Craig Allen Keefner, executive director of the Kiosk Association. Keefner said the Kiosk Association works closely with the U.S. Access Board, a federal agency currently in the process of proposing new guidelines for self-service machines.

From September through November, the public was invited to submit comments to the Access Board on new regulations for self-checkout machines and ordering systems. 

“The first step in proposed rulemaking, which would create scoping and technical standards for touchscreen devices used in commercial facilities just closed on November 21,” explained Bruna Pedrini, an attorney who specializes in accessibility and anti-discrimination law.

Pedrini added that as the regulatory process unfolds, businesses can “address the very real concerns of their customers with disabilities by considering some basic issues. For example, the spacing between self-service kiosks and check out aisles needs to allow for a wheelchair to properly maneuver and to turn about. Similarly, the reach to the touch screen from the seated position of a person in a wheelchair must be at the correct height and accessible.”

The role of retailers moving forward

The U.S. Access Board’s proposal is already supported by the NFB and the National Association of the Deaf. If an agency with enforcement powers adopts the new guidelines, the proposed regulations could become official rules, changing the standards that retailers and self-checkout manufacturers must comply with.

“Our self-checkout systems and their components such as payment device location, touch screen, scanner location and bag racks are designed to meet or exceed industry guidelines for accessibility,” said Dan Kelaher, senior human factors engineer at Toshiba Global Commerce Solutions.

But ensuring that self-checkout machines are actually accessible once they’re placed in a store requires close collaboration between manufacturer and retailer.

“Retailers must also follow building guidelines and requirements to ensure that adequate space is provided around the self-checkout system so all individuals can access and use all the available features,” Kelaher said.

From Nicky Shaw’s point of view, if retailers want to know what shoppers with disabilities need, they should ask them.

“I believe that retailers should work more closely with disability advocate groups when developing their POS,” she said, “because it’s often small tweaks that can make a big difference.”

Ultimately, it’s in the retailer’s best interest to ensure an equitable shopping experience for every customer.

“I read about ‘customer engagement’ and the importance that retailers seem to place on this,” Shaw noted, “but then at the point of sale any customer who cannot see, or read, or interact with a touchscreen is completely forgotten.”

Published By: The Food Institute

Survey: 79% of diners expect option to use technology to order from casual restaurants

Restaurant Tech Editors
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Survey: 79% of diners expect option to use technology to order from casual restaurants

Dive Brief:

  • Seventy-nine percent of consumers expect to use technology to order at casual restaurants, according to a HungerRush survey of 1,000 U.S. consumers.
  • HungerRush, a restaurant tech company, also found digital visibility is significant factor in driving new customer visits, with 85% of consumers saying it’s important to them to find reviews and other information about restaurants online.
  • Sixty-five percent of respondents under the age of 30 reported ordering online, 62% order by phone, 51% through a restaurant’s app, and 38% through third-party apps or at the restaurant counter, per the survey. 

Dive Insight:

Online ordering is the most frequently used ordering technology covered by the survey, especially among younger consumers. But younger consumers (18-29 years old) are actually less likely to use some tech-heavy ordering channels compared to customers aged 30-39. Only 8% of the younger consumer set said they would use text ordering, compared to about 18% of customers in their 30s, according to the survey.

Other findings from HungerRush’s study show macro-economic pressures are changing consumer behavior, as well. Forty-four percent of consumers are consciously opting for local restaurants as a way to save gas money, and 50% are limiting their frequency. Despite falling gas prices, HungerRush found that inflation still outpaces wage gains, meaning most consumers have seen their disposable income shrink even as some price shocks ease.

Recent data from the National Restaurant Association reinforce HungerRush’s finding that consumers are cutting back. The NRA found diners are trading down for value, even as large majorities of customers want to eat out during the holiday season. 

Still, savvy technological investments that drive convenience may still entice customers experiencing economic hardships, the survey suggests. Seventy-two percent of consumers feel it is important that a restaurant personalizes their communications to them.Casual eateries can achieve personalization with a range of applications, from tailored email promotions to surveys that collect diner information, such as birthdays and menu item preferences, that can be used for targeted offerings.

Published By: RestaurantDive

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