Industry Insider Discounts Can Lead To Great Word-Of-Mouth Endorsements And Recommendations

Restaurant Tech Editors
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Industry Insider Discounts Can Lead To Great Word-Of-Mouth Endorsements And Recommendations

I was at the Dallas/Fort Worth (DFW) airport and wanted to get dinner. I saw a friendly TSA agent and asked, “In your opinion, what’s the best restaurant for dinner in the airport?” He made a suggestion, and I asked what he liked there. He was very specific, and I couldn’t wait to go there to eat. After dinner, as I was walking toward my gate, I saw the TSA agent and thanked him for the recommendation.

We talked for a while and I learned that as an employee at the airport, he receives a big discount at various restaurants. It’s more than just offering a break to the people who work there, and it gets them to experience the restaurants and hopefully talk about them to passengers like me.

It’s common practice in the retail world to offer employee discounts. I have known some people to work one evening a week at a store just to get the discount. Lululemon is one of the most generous retailers when it comes to employee discounts. A full-time employee can get 60% off regular priced merchandise and even more off anything marked down. Why do they do this? First, they care about the employees and want to offer this generous perk. Second, they know the employees will wear the clothing and evangelize the brand by sharing positive comments about the clothes.

The point of these examples is that it’s common practice to offer perks to employees to get them talking about the brand. That leads us to this next example, which is unique because it offers perks to people in an industry, rather than just to the employees of a company.

There’s a high-end restaurant group in New York, JF Restaurants, run by Michelin star award-winning chef John Fraser. He came up with an idea that’s not too far from the above examples and he calls it The Industry Table. The idea is that Fraser will reserve one table at each of his restaurants every night for anyone in the restaurant industry to enjoy a VIP dining experience … at his food cost! This means anyone in the industry can make a reservation to experience the culinary expertise of these fine dining restaurants at a substantial discount. There’s just one limitation to that. Fraser says, “You cover the booze (because it’s the law), help spread the word about our program, and provide valuable feedback on your experience. That’s all we ask.”

Why would he do this? Not only does Fraser want others outside of his restaurant group to enjoy the JF experience and tell their friends, but he also hopes to reignite the spirit and camaraderie that brought these hard-working people into hospitality in the first place. Fraser says, “I want to make sure that the people who join us get a sense of who we are and meet the team. All managers and at least one chef should greet the table and make them feel at home and at ease. We can send bar teams over to talk about their work, and even the cooks if it is appropriate.”

Executive Chef Warren from The Terrace and Outdoor Gardens, one of Fraser’s signature restaurants, responded to the program saying, “I love the message behind The Industry Table. I look forward to touching the tables and meeting some of our fellows in the biz. We will ask if they would be willing to let us guide their experience a bit. That makes it a real VIP experience, beyond just a discount.”

What better way to get word-of-mouth referrals and general “buzz” from people in the restaurant industry? Fraser and his team are building a program that gets industry people, servers, managers, cooks, etc., to come to his restaurants, enjoy a meal at a steeply discounted price, and then talk about it to others.

Fraser says, “We want to use this as an opportunity to get to know them (other industry folks) and for them to get to know us. It’s good vibes for future dinners with us and a way of meeting people who might want to work for us in the future. I consider these discounts as a deposit for future sales and a chance to do something good for our communities.”

Published By: Forbes

How Restaurants Can Develop a Recession-Proof Recruitment Strategy

Restaurant Tech Editors
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How Restaurants Can Develop a Recession-Proof Recruitment Strategy

It’s never been harder to hire and retain employees, leaving companies wondering how to attract candidates quickly in such a mismatched market.

Fierce competition means fast-casual restaurants must stay staffed at capacity and establish a pipeline that acts as a safety net—steadily streaming your job candidates. Retention can only be solved by keeping the top of funnel filled with candidates, but the way to thrive is by creating an overflowing pipeline relative to your competitors.

This includes understanding what is top of mind this year: how can quick-service restaurant industries develop a recession-proof recruitment strategy? As a result of the economic downturn, it’s never been harder to hire and retain employees, leaving companies wondering how to attract candidates quickly in such a mismatched market.

Organizations are looking for new ways to address inflation by understanding how much it really costs to hire each fast causal worker based on the latest stats. And what are the best ways to boost employee satisfaction to improve retention? Let alone, when your company sees a sudden spike in turnover—what should be analyzed first?

The answers to these questions will help you build better hiring and retention processes.

Invest in your pipeline

A pipeline is very important insofar as it is always available to you. In a tight and fluctuating labor market such as we have this year, you tap into your pipeline to leverage flexibility in your recruitment initiatives. This allows you to be strategic in your candidate relationship management by ensuring that talent is at your fingertips. But it is equally vital to invest and check your metrics so that you’re not overinvesting in populating your pipeline. That said, be aware that if you stop investing and allow your pipeline to dry up, it’s incredibly difficult to replenish on a dime when you’re ready to scale hiring.

Secondly, many hiring managers hire job boards to fill their pipeline—but the reality of the matter is, these enterprise companies are too large to develop a relationship with you; they only operate on a transactional basis.

If you miss a candidate in the pipeline, they’ll submit it to your competitor. Instead, consider ensuring that you find relational companies that listen to and support your needs. Also, invest in a personal pipeline—one that doesn’t bleed into your competition and remains in your pipeline pool alone.

Analyze and make data-backed decisions

Recruiting is a relationship-oriented science, making it far more humanized. But look at recruiting through a data lens; dig into the metrics to take more of a quantitative approach to transform a recruiting function and become more effective when there is budget pressure leading into a recession.  

In many cases, data tells all. The greatest leverage it allows is for you to “catch the fish where the fish are” particularly when looking for fast casual workers.

Not only will you find those who already exist in fast food service, but you will also attract people into that field. These talent analytics are key identifying factors when understanding where to advertise your jobs in addition to geo marketing. Then, allow your sales team to use that data to infer who they should target based on these analytics.

After determining who to target, focus on leveraging key words for ideal candidates to find your open positions. Ultimately, job titles are what turn heads and spark intrigue, landing that initial click for candidates to read your description. But how can you buy their attention long enough to get them to read the first page and decide if you’re a good fit? Utilize smart bob titles.

These are groundbreaking in the talent marketplace, allowing you to use recruitment analytics to check your job’s reach along with the best-performing job titles and descriptions. You also have the power to track your job posting progress, edit the description and manage its budget. These titles give you the ability to vet and select candidates from the beginning and ensure you reach top talent fast.

Determine the Cost of Vacancy versus Cost of Hiring

When short-staffed and under stress, hiring for fast casual can come at a high price—let’s break down the costs.

To better understand ROI when hiring and determining salary, compare these 3 metrics:

Cost of vacancy

While it varies by industry, the cost of vacancy (COV) can be estimated by dividing company revenue per employee by number of annual workdays. This gives you the average revenue produced by an employee daily.

Just note that it’s difficult to measure the negative impact open roles have on productivity. It adds to burnout by disintegrating team morale, which makes it even harder to tie a monetary value to these metrics.

Cost of a bad hire

The U.S. Department of Labor puts the cost of a bad hire at up to 30 percent of the employee’s first year wages. That means, if you hire an employee, such as a fast casual manager, for $70,000 a year, the employer expense could be as high as $21,000. These factors include lost productivity and damage to your reputation as a quality care provider.

Cost to hire

According to the Brandon Hall Group, “the average cost to hire an essential worker is $340, and for organizations with 1,000 employees or less, the cost is $670.”

How to gain and retain fast-casual workers

When you see a sudden spike in turnover at one or more of your restaurant locations, you need to know what to analyze in order to address retention. Start with collecting surveys and documentation for reasons as to why people have left.

If you begin there, you’ll start seeing the overarching patterns and pain points among your employees. Then you’ll be able to diagnose not only the work, but your work culture. There could be a department or manager pattern, etc. – but from then on, it’s up to you to decide how you’d like to solve the problem. That may be through policy, support or other actions that can help you turn the ship in the right direction.

Be as transparent as possible about your environment, pay, and how you’re different. One strategy is to create “battle cards” to show how your fast casual products stand against your competitors and your unique value proposition. Create these to showcase your brand and what you have to offer.

In addition, pay and flexibility tend to be at the forefront of the modern worker’s mind, so make sure to advertise these policies as well as a glimpse inside your organization.

Lastly, be transparent about base salaries. For fast casual jobs, you need to target ambitious candidates who are willing to work on their feet. Showing them what they could earn if they challenge themselves to excel is often a huge motivator for these employees, particularly in a recession.

Think of what your ideal candidate would be motivated or challenged by in your position and ADVERTISE it.

Applicants want to discover what the average employee in their position takes home at your restaurant as well as the highest earner. Put “easter eggs” in your job ad that indicate the type of salary, culture, and healthy competition they will experience in order to exceed their goals. The worst thing you can do is come across stale or stagnant, this will only repel candidates or disinterest those with a vision for lead growth.

Show up for your candidates and employees

Consider necessary culture shifts. For years, workers have been led to disregard self-care for work. Insisting upon work that disregards your candidates’ values, time, and needs not only damages employee morale, but damages the success of your restaurant. The hustle culture of “working no matter the cost” is a dying stigma and staff need to know that setting boundaries isn’t a luxury but a necessity. Not doing so will negatively impact retention and career trajectories by creating a “pull the lever” culture.

This type of culture hyper focuses on patching holes in the business rather than relying on innovation to build the business. Thus, it’s vital that your fast casual employees feel supported and have the freedom to voice their concerns—because the days of hustle culture are behind us. Show job applicants that your quick-service restaurant embraces individuality and growth because no job is worth sacrificing your well-being.

Published By: QSR

The Latest, But Not The First: Five Ways AI Altered The Food Industry Before ChatGPT

Restaurant Tech Editors
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The Latest, But Not The First: Five Ways AI Altered The Food Industry Before ChatGPT

Generative AI has shaken the tech industry to its foundations. For the first time, Google’s search dominance looks vulnerable, while ChatGPT has elevated Microsoft’s Bing from second banana to sexy beta. Meanwhile, hundreds of new startups are creating vertically-focused SaaS offerings powered by OpenAI, and tech corporations, big and small, are evaluating how to jump on the generative AI bullet train.

In the food world, we have some early arrivers in spaces like restaurant tech software such as ClearCOGS and Lunchbox leveraging OpenAI to add additional functionality. On the content creator and influencer side, we’re already seeing recipe creators and culinary pros tap into the power of generative AI.

But if you think the arrival of ChatGPT is the first AI with the potential to have a big impact on the world of food, you’d be wrong. In fact, over the past decade, we’ve watched as artificial intelligence has started to transform significant portions of the food world. Here are five ways AI has changed food over the past decade:

AI-Generated Recipes

Over the past decade, one of the most significant milestones for artificial intelligence in the world of food is the application of IBM Watson’s general AI to recipe creation. About ten years ago, the Watson team figured it needed to do something besides beat human contestants on Jeopardy to demonstrate its AI’s powers. Before long, Watson had its own cookbook of what IBM called ‘cognitive recipes’. Eventually, CPG brands like McCormick partnered up with IBM to see how they could apply Big Blue’s AI to their business.

Novel Food Discovery and Creation

Over the past few years, a new cohort of startups using AI to accelerate the discovery of novel food ingredients or plant-based recipes have emerged, causing ripples through the consumer packaged food market as they present a direct challenge to the more conventional – and slow – way in which food companies traditionally discover new food products. Over five years ago, companies like Gastrograph started to use AI to create predictive modeling around how different consumer cohorts may react to new food products, and more recently, we’ve seen a new generation of food companies like NotCo base its entire roadmap around AI-generated recipes for its plant-forward product lineup. On the novel ingredient discovery side, companies like Shiru and Kingdom Supercultures are using machine learning to find new ingredients that can help replicate the functional and taste properties of more traditional animal-based inputs.

Alexa’s Personalized Meal Planning and Recipes

When Amazon showed off Alexa almost a decade ago, in late 2014, most thought it was a cool home-based voice interface for weather forecasts and kitchen timers. But Amazon’s AI-powered virtual assistant helped launch a new way for consumers to do everyday things, including buying food and checking on that roast in the oven. But it wasn’t long before Amazon started to help me automate and personalize our shopping lists, and eventually started to create personalized recipes based on our past behavior.

Computer Vision Is Everywhere

A little over two years after Amazon debuted Alexa, it opened its first Amazon Go store featuring its Just Walk Out technology. Powered by sensors and computer vision, the new storefront lets shoppers pick up things off the store shelves and walk out without going through checkout. Soon, a whole bevy of human-less retail startups emerged to offer grocery and convenience store operators platforms to create more friction-free shopping powered by computer vision. We also saw computer vision-powered home appliances enabling consumers to identify their food in the fridge or the oven. Computer vision has also taken off in the restaurant back-of-house for solutions that help reduce food waste and help optimize food inventory.

Food Robots

While robotics and AI are not always synonymous, many robots are deploying some form of AI to help feed us. Whether it’s Google Mineral’s farm robot modeling plant traits and phenotyping crop varieties or server robots dynamically mapping the layout of a restaurant dining room, we are seeing a proliferation of AI-assisted food robots up and down the food value chain.

As far as generative AI goes, we’ve only begun to see how it could change the food industry. Initial applications are more likely to be in restaurant marketing (like the image created for this post using DALL-E), operations, and customer service systems. But as the technology becomes more powerful and creative programmers figure out ways to integrate generative AI technology into their platforms, the impact of ChatGPT and similar AI systems holds massive transformative potential for the food industry.

Published By: The Spoon

We Asked AI How to Properly Open a Ghost Kitchen. Here’s What It Said

Restaurant Tech Editors
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We Asked AI How to Properly Open a Ghost Kitchen. Here’s What It Said

Artificial intelligence is no longer just subject matter for unobtainable science-fiction movies. These systems have become increasingly intertwined in our everyday lives, the restaurant industry included. 

Whether it’s predictive real estate analytics, suggestive selling on websites and apps, or automated voices through drive-thru, food and beverage concepts have spent years innovating with AI to better operations, reduce labor constraints, and improve customer service. 

With the advent of ChatGPT, a program that allows users to submit information and receive an AI-generated response on any topic, a bigger microscope has been put on how society should approach these technological advancements. That includes us here at QSR, and our sister publication, FSR.

As we strategize ways to best use these new tools, we want to take readers behind the curtain of what AI is really capable of. 

We are launching a brief online series called “QSR Magazine Asks AI …” in which our editorial team turns to AI for answers to the restaurant industry’s biggest questions. 

For the first edition, we instructed ChatGPT to “write a story on how to properly open a ghost kitchen.” 

*The above summary was written by a human. 

Ghost kitchens, also known as virtual kitchens or cloud kitchens, have become increasingly popular in recent years. These facilities allow restaurants to offer delivery-only services without the high overhead costs associated with traditional brick-and-mortar restaurants. As more consumers opt for the convenience of online ordering and food delivery, the demand for ghost kitchens is expected to grow. Here are some tips on how to properly open a ghost kitchen:

Develop a solid business plan: Like any business, a ghost kitchen needs a well-thought-out business plan to be successful. It should include a clear mission statement, a detailed analysis of the market, financial projections, and a marketing plan. You should also decide on the type of cuisine you want to offer, the target market, and the location of the kitchen.

Choose the right location: One of the main advantages of a ghost kitchen is that it can be located in areas with lower rent and overhead costs. However, the location should still be convenient for delivery drivers and close to a densely populated area. It should also have easy access to major highways to facilitate the delivery process.

Invest in the right equipment: A ghost kitchen requires specialized equipment, including ovens, fryers, refrigerators, and other appliances. You should invest in high-quality equipment that can handle the volume of orders and ensure that the food is prepared to the same quality as in a traditional restaurant. Additionally, you may need to invest in software and technology to manage orders, track inventory, and handle payments.

Hire the right staff: While a ghost kitchen may not require as many employees as a traditional restaurant, you still need to hire the right staff to ensure the quality of the food and the efficiency of the operation. You should hire experienced chefs and kitchen staff who can prepare high-quality meals quickly. You may also need delivery drivers, customer service representatives, and other support staff.

Develop a strong online presence: Since a ghost kitchen relies solely on delivery orders, it is crucial to have a strong online presence to attract customers. This includes having a user-friendly website, a mobile app, and a presence on popular food delivery platforms such as Grubhub and Uber Eats. You should also invest in online advertising and social media marketing to reach potential customers.

Create a streamlined ordering process: A key advantage of a ghost kitchen is the ability to streamline the ordering process. You should create a simple and efficient online ordering system that allows customers to easily select their food, customize their orders, and pay online. The system should also be integrated with your inventory management system to ensure that you can keep track of ingredients and avoid running out of stock.

Focus on food quality: While a ghost kitchen may not have the ambiance and atmosphere of a traditional restaurant, the quality of the food is just as important. You should focus on using high-quality ingredients and preparing the food to the same standard as you would in a traditional restaurant. You should also offer a variety of options, including vegetarian, vegan, and gluten-free options, to cater to a wider range of customers.

Manage inventory and food waste: Since a ghost kitchen operates solely on delivery orders, it is important to manage inventory and minimize food waste. You should keep track of inventory levels and ensure that you have enough ingredients on hand to fulfill orders. You should also have a plan in place to manage any excess food and minimize waste.

Monitor and adapt to customer feedback: One advantage of a ghost kitchen is the ability to quickly adapt to customer feedback. You should regularly monitor customer reviews and feedback and use this information to improve the quality of the food, the ordering process, and the overall customer experience.

Published By: QSR

How QR Code Menus and Other Tech Solutions Help Restaurants Future-Proof Their Businesses

Restaurant Tech Editors
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How QR Code Menus and Other Tech Solutions Help Restaurants Future-Proof Their Businesses

We’re not getting ahead of ourselves when we say this is the start of a post-pandemic renaissance for the hospitality industry. More businesses are now seeing the benefits of investing in technology, reinventing themselves with out-of-the-box innovations to stay resilient. 

Sixty-nine percent of restaurants are willing to continue online ordering, and 36% more owners are investing in restaurant software. It’s all about selling convenience to remain competitive. So now it’s just a matter of finding which technologies are actually worth investing in. It pays to ask: what do you need for your restaurant? And how much are you willing to spend on software, so you’re able to run your operations better? 

1. QR Code Menu 

Six out of ten millennial diners prefer to use technology to make ordering and payments easier.  But offering a menu QR code has initially left a bad taste with customers, and understandably so. A lot of restaurants started with a static PDF QR code menu just to get by. 

Thankfully, that limited beta stage didn’t last long. The smart QR code menu quickly evolved to provide a wide range of easy online menu curation, with no coding needed. A smart menu QR code allows operators to drag and drop their high-quality photos, modifications, and other food options. It’s one of the best ways to serve customers amid erratic price changes due to inflation and staff shortages. 

One of its best features allows customers to easily toggle between specialized menus, especially those with allergies or specific restrictions. These could include halal, vegan, and gluten-free selections. For different times of the day, online menu QR codes also provide automatic menu changes within a set time for lunch, dinner, and even happy hour selections. 

According to recent research, “about half of aggregator users say they believe restaurant technology, such as ordering kiosks and QR code menus, lead to better customer experiences.”

2. Mobile order-ahead and delivery 

Order-ahead involves calling the restaurant or setting an online reservation around an hour or 30 minutes in advance. This makes it easier for customers to just pick up their order or sit down and start eating their warm food, pronto.

It cuts through the need to use a third-party app just to order. Restaurants then have more control over the quality of their food and the time it’s served. Because of this, businesses have been partnering with software providers to eliminate third-party app costs, and make online ordering and deliveries more efficient.  70% of customers actually support ordering directly from a restaurant. It’s no secret that some third-party delivery apps rip off restaurants with up to 30% of their revenue due to questionable practices. 

Businesses with the capability to provide order-ahead option will definitely see an increase in their revenue this year not just because of customer preference, but also because these businesses will be able to access the goldmine of customer data. These valuable information will allow them to personalize their customers’ order experience, create targeted campaigns, and even reward returning customers.

3. Pay-at-table technology 

Sure, mobile payments have always been around, but pay-at-table technology is now on the rise because of how much it benefits customers and businesses alike. 58% of customers claim they are more likely to use their phones to access a QR code menu, according to a survey conducted by the National Restaurant Association in 2022. 

It’s more convenient for these customers to use the QR code menu as a payment option after ordering their meals. Tabit POS users also found an 8-15% increase in spending per customer, and that tips are usually higher when customers pay at the table. 

Pay-at-table technology makes it a lot easier for hospitality employees to focus on more important tasks instead of running around waiting for orders and payments. It also eliminates a lot of ordering errors, and makes the dining experience more seamless for customers.

4. Ghost kitchens and virtual restaurants 

One of the best things to happen during the pandemic was the chance for ghost kitchens and virtual restaurants to thrive. Who knew you didn’t even need to have a physical restaurant to make it big in the food industry? You only need to have a functional kitchen, be able to deliver good food, and stay consistent with your service. 

That’s still a lot, but you just eliminated the restaurant part of it, which makes up the biggest cost in maintenance and staff management. You’ll easily find these ghost kitchens on your favorite food order apps. Most likely, you won’t be able to tell if they have a physical restaurant or not, until you actually Google them. No need for cash registers, and there’s definitely shorter wait times and lower labor costs. There’s no need to hire any more staff than what’s needed in kitchen operations. It’s one of the best ways to get started in the food business.

5. More AI and cloud-based automation systems 

Flexibility and scalability is the name of the game this year and beyond. Front and back-of-house operations will need automated tools to stay efficient. The likes of adapting Kitchen Display Systems (KDS) have been making the rounds as more restaurants look for a better ordering system. All order tickets are digital, allowing restaurants to easily organize and change orders as needed. Orders are then easily routed and queued to different stations. This type of centralized source of information greatly avoids errors. 

A KDS can also display the recipe and how long a dish can be served, which can easily help any newbie get oriented with the job. So, what could be stopping more chain restaurants from implementing automation? As staff shortages continue to rise, these technologies could be a great investment for every restaurant that want to stay more resilient. 

A rundown from Eater shows that 79% of customers actually prefer ordering at online kiosks, with 78% of them enjoy QR Code ordering. As it gets busy with online orders, two out of three restaurant owners believe automation would help them “fill critical gaps” in their operations. Other forward-thinking technology includes food waste reduction and more service and delivery drones and robots.

As with a lot of technologies that emerged in the last three years, these big shifts aren’t simply for convenience. It shows how technology evolves fast to help the hospitality industry stand the test of changing regulations and growing customer demands. Automation gives customers and business owners more options to streamline their order and payments. 

QR code menus are not here to replace physical menus. Instead, they’re an option for the more tech-savvy customers who enjoy looking at high-definition images and updated bestsellers on the restaurant or bar’s online menu. 

Self-ordering kiosks were never aimed at getting rid of employees. Instead, it helps the staff focus more on the hospitality side of their job instead of being tied to taking orders and going back and forth when processing payments. It’s all about creating a better world for everyone after all the challenges and limitations of the last few years.

Published By: Restaurant Technology News

Pay-per-chew: Is the world ready for subscription-based restaurants?

Restaurant Tech Editors
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Pay-per-chew: Is the world ready for subscription-based restaurants?

Washington: Consumers are willing to pay monthly subscription fees for streaming services, pet food and even toilet paper. And now some restaurants are betting they’ll do the same for their favourite meals.

Large American restaurant chains like Italian-themed Panera and or Asian-fusion specialty P.F. Chang’s as well as neighbourhood hangouts are increasingly experimenting with the subscription model as a way to ensure steady revenue and customer visits.

Some offer unlimited drinks or free delivery for a monthly fee; others will bring out your favourite appetiser each time you visit.

Matt Baker, chef and owner of Gravitas, in Washington, DC.
Matt Baker, chef and owner of Gravitas, in Washington, DC.CREDIT:AP

They’re following a trend: The average American juggled 6.7 subscriptions in 2022, up from 4.2 in 2019, according to Rocket Money, a personal finance app.

“This is just another way for customers to provide a level of support and joy and love for our offerings,” said Matt Baker, the chef at Gravitas, a Michelin-starred restaurant in Washington.

For $US130 per month, Gravitas Supper Club subscribers get a three-course takeout meal for two. Baker said Gravitas shifted to takeout during the pandemic but saw demand fizzle once its dining room reopened. The Supper Club — which serves about 60 diners per month — keeps that revenue flowing.

This Taco Bell is tinkering with a Taco Lover’s pass.
This Taco Bell is tinkering with a Taco Lover’s pass.

The upscale Chinese chain P.F. Chang’s also saw an opportunity to increase to-go orders with its subscription plan, which launched in September. For $US6.99 per month, members get free delivery, among other perks.

Other restaurants are experimenting with memberships, which let diners pre-pay toward their visits.

El Lopo, a San Francisco bar, has 26 members in its Take-Care-Of-Me Club. They pay either $US89 per month for $US100 in dining credits or $US175 per month for $US200 in credits. When members come in, El Lopo starts bringing out their favourite dishes. Each visit, they can gift a free drink to anyone in the bar.

El Lopo owner Daniel Azarkman started the club in March 2021 to encourage patrons to return as the pandemic eased. Now, he’s hearing from restaurants all over the country who are interested in starting similar programs.

“What it really achieves is getting them in more often,” he said.

Rick Camac, executive director of Industry Relations at the Institute of Culinary Education, said he expects many more restaurants to offer subscriptions in the coming years. Consumers are accustomed to them, he said, and the regular monthly income helps restaurants manage their cash flow.

But not all subscription programs have had success. In 2021, On the Border Mexican Grill introduced its Queso Club, which offered free cheese dip for a year for $US1. The program stopped taking new subscribers a year later.

Edithann Ramey, On the Border’s chief marketing officer, said more than 150,000 people signed up for the Queso Club, and members visited seven times more often than the average guest. But the Dallas-based chain wasn’t making enough to cover the cost of the dip.

On the Border is now retooling the program and expects to reintroduce it later this year. It may charge more or move to a monthly model, Ramey said, but the subscription element will remain.

“It’s becoming kind of a hot trend and we want to stay as a leading brand,” Ramey said.

Taco Bell is also tinkering with its $US10 Taco Lover’s Pass, which lets subscribers get a taco every day for a month. The pass was introduced in January 2022 and again in October; it generated buzz, but the chain is trying to think of ways to make it more valuable to consumers, said Dane Mathews, Taco Bell’s chief digital officer. A subscription could promise faster service, for example, or unlock unique menu items.

Other restaurants have dropped subscriptions, saying they have their hands full just running the kitchen.

In late 2020, SheWolf, an upscale Italian restaurant in Detroit, started sending subscribers a box of pasta, sauces and other treats for $US80 per month. But when its dining room fully reopened six months later, it was too much work to put together hundreds of boxes.

Still, SheWolf is keeping one foot in the subscription space. Dan Reinisch, the restaurant’s beverage director, sends Italian wines to about 80 subscribers who pay $US60 or more each month.

Published By: The Sydney Morning Herald

How to Boost Your Restaurant’s Profit with an Online Ordering System?

Restaurant Tech Editors
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How to Boost Your Restaurant’s Profit with an Online Ordering System?

In pre-pandemic times, the discussion among restaurateurs was whether or not to adopt an online ordering system. The coronavirus pandemic provided a definitive answer to this debate – a loud and resounding yes. The uptake of online ordering has been so widespread over the last three years that it is now difficult to find a restaurant that does not offer online ordering especially as online ordering helps boost a restaurants profit.

There has been plenty of research published on how online ordering drives greater revenue. Yet not every restaurant has experienced the much-discussed monetary growth. As with every sales tool, online ordering too needs to be optimized if it is to reap the desired fiscal results.

5 effective tips to increase profits with a restaurant online ordering system

  1. Have a website and a mobile appRestaurant online ordering systems have two main channels – a website and a food ordering app. Your restaurant should offer both options to customers. When you have both a website and a mobile app, you will reach even more customers because you will cover the two primary consumer ordering preferences.
  2. Offer both delivery and order aheadToo often restaurants limit their online ordering facility to delivery. However, statistics have shown that restaurants that allow customers to order ahead for takeout have seen a surge in up to 80% more orders per month. Customers who are in a position to pick up their food don’t necessarily like to wait too long for it. They would much rather order in advance so that their parcels are ready when they arrive. When you open up the order ahead option to your customers, you are bound to have more orders.
  3. Activate upsell and cross-sellPairings, add-ons and combos are all effective ways to increase ticket value. A noticeable purchasing trend is that customers are more likely to opt-in for these when ordering online than in person. You must activate the upsell and cross-sell options on your online ordering system, using data analytics to help you find the best match for upsell and cross-sell recommendations. With upsell and cross-sell you will see the value of each order shoot up by an average of 20%.Must Read: The Rise of Self-Ordering Technology in US Culture
  4. Promote your online ordering system through discounts and offersSometimes customers need a gentle nudge to try out your online ordering system. Almost all of us find it hard to resist discounts and freebies. So, offers that are exclusive to your online ordering system will definitely push sales and rev-up your revenue.
  5. Increase visibility through social mediaSocial media is now the channel of choice to market and promote a brand. A majority of diners, especially millennials and Gen Z, check social media when deciding on where to eat. Use your social media accounts to push your online ordering system. Post content that will tempt and tantalize – like photos of specials or videos of dishes being prepared. Make sure you direct viewers to your restaurant online system in each post to prompt them to place an order immediately.

Partnering with the Right Service Provider

Many restaurateurs just starting out on their online ordering journey find third-party delivery platforms the most convenient channel. However, this is not the most economically viable in the long-run. Third-party delivery services charge huge commissions that cut deep into your revenue, leaving you with little to no profits. They are an impediment to customer loyalty, thus presenting a gigantic road-block in your path to profits. The list of disadvantages goes on, but these two are enough to prove that third-party livery apps will reduce rather than increase your profits.

In order to reap the financial rewards of an online ordering system, you need your own website and custom-branded app. Find a service provider who will create both these. It is always a more economically prudent decision to go with someone who does not charge commission or whose fees are relatively lower. Twenty-four hour customer support is also essential, while a dedicated customer success team will aid you to swiftly boost your earnings.

Applova’s customized websites and mobile ordering apps are economical and have proven to provide an ROI in a matter of months. Easy to set-up and use, they require no specialized technical know-how on the part of restaurant staff. The customer care team is available 24/7, while the customer success officers go out of their way to improve a restaurant’s performance.

Take a look at Applova’s offerings and sign up for an online ordering system today!

Published By: Applova

Why Third-Party Apps Want Your Restaurant Data

Restaurant Tech Editors
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Why Third-Party Apps Want Your Restaurant Data

There’s no doubt online ordering has revolutionized the restaurant industry. Led by third-party app services like Grubhub, Door Dash, Postmates, and Uber Eats, the industry saw its largest growth in five years in 2020 due to the COVID-19 pandemic, growing from 66 million American ordering $8.7 billion in food delivery in 2015 to over 111 million users and food delivery revenue in excess of $26 billion in 2020.

What are third-party apps? In the restaurant industry, they are companies that partner with restaurants to offer food delivery. Customers use the company’s app or website to place their orders and make payments.

Thanks to these services, online ordering doesn’t seem to be slowing down anytime soon. According to a report published by The Brainy Insights, the global online food delivery market is expected to grow from $167.54 billion in 2022 to $432.32 billion by 2030.

And with good reason. As consumers have found out, online ordering is easy and convenient, allowing them to peruse the menu at their leisure and get their favorite restaurant food delivered to their door.

And as restaurant owners have discovered, providing online ordering enabled them to survive and thrive during the pandemic and has proved to be good for business overall. Not only does online ordering provide a positive customer experience, streamline operations, and save on labor costs, but it also increases ticket sizes. Perhaps that’s why 97% of restaurants now report using at least one online ordering platform and, on average, most use three platforms.

Of course, everything has drawbacks, and online ordering is no exception. While data breaches, cold food, and long delivery times during peak hours are a few negatives of online ordering, the biggest drawback is the hefty commission fees third-party apps charge restaurants—anywhere from 15 to 40%!

These steep charges, which eat into a restaurant’s already-thin profit margin, have prompted many restaurant owners to switch from expensive third-party delivery apps to a commission-free online ordering platform (or use a combination of both). In fact, 30% of restaurant operators look for a modern POS that can take orders, handle payments, support a loyalty program, process online orders, track reservations, and more.

But online ordering has another valuable benefit that restaurants may not realize . . . and that third-party apps are taking advantage of—data!

Restaurant Data – The Hidden Benefit of Online Ordering Apps

Restaurant data may be the most important tool a restaurant has in its marketing toolbox. Why? Because collecting your customers’ data such as their name, email address, and order history—including the types of food they usually eat, the times they’re most likely to order, and whether they use coupons and loyalty points—provides valuable insight to help you retain and market to your customers. Given that most of your revenue comes from the most loyal minority of your customers, it pays to focus your marketing on them.

By using data collected from an online ordering app, you can build a restaurant database list and leverage it to do the following:

restaurant-data

Who Has Your Data (and What Are They Doing With It)?

Unfortunately, using third-party online ordering apps usually means you aren’t getting—or benefitting from—your customers’ data. Instead, third-party delivery apps like Uber Eats and Grubhub withhold this data, blocking you from gaining valuable information regarding your loyal patrons and preventing you from forming relationships with potential customers.

Instead, they often use the data for their own benefit, exploiting the information gleaned from online orders to your restaurant to advertise other restaurants in their database to your customers and increase their own revenue. For example, let’s say you own Hot Tamales, a Mexican restaurant, and you pay a commission of 20% to a third-party ordering app for every order they deliver. Many of your customers love to order tacos on Tuesday nights, which the third-party app knows from the data they’ve collected for your restaurant. They might use that knowledge to advertise to their customers that Manny’s Tacos, your competitor, who pays the app 30%, is running a special on tacos on Tuesdays.

Not only are you losing out on the benefits of leveraging your data to increase your restaurant’s business and sales through marketing, but you’re also potentially losing sales to another restaurant that pays the third-party app a higher commission.

How Big Restaurants Are Leveraging Data to Stay Ahead

Restaurant industry giants like McDonald’s, Starbucks, and KFC often stay ahead of the game in gaining market share by harnessing the power of technology. Such is the case with using data analytics. Businesses that use analytics to inform their business decisions see huge boosts to their profitability—an average of an 8-10 percent increase in profits across all industries. That’s why many larger restaurants are increasingly becoming data-centric to cater to their customer’s specific needs and drive business. And you won’t believe the results!

McDonald’s, for example, the world’s most successful and extensive fast-food chain and a maverick in incorporating technology, is using data to gain valuable insight about their customers, tailor their marketing, and edge out the competition. By leveraging data, they had a consolidated revenue of $21.1 billion and $100 billion in systemwide sales, their highest growth in over a decade in 2021.

McDonald’s is only one example. A whopping 92% of all top-performing restaurants offered mobile order-ahead and loyalty rewards programs or a combination of both to collect data and incentivize their customers.

Data Solutions for Small to Mid-size Restaurants

online-ordering

With a little research, restaurants can find affordable ways to implement their own branded, restaurant-specific online and app ordering systems to gather valuable data that will enable them to grow their business.

One solution is Applova, a customer-centric company that helps food businesses change their game by making complex technology available—and affordable—to everyone. Applova’s web ordering and mobile order-ahead apps are commission-free with no hidden costs. Best of all, unlike third-party apps, they’ll ensure your restaurant’s data goes right where it belongs—in your hands.Must Read: 10 Reasons Your Restaurant Should Own a Food Ordering App

Applova’s online ordering solutions also include the following top features:

  • Custom branded to the restaurant’s business
  • Accessible through any device
  • Self-checkout through the mobile order-ahead app with debit/credit card
  • Incentivize customers with Applova’s loyalty schemes (Digital stamp cards)
  • Custom/seasonal discounts with special promo-codes
  • Curbside-ordering and pickup
  • Radius-based delivery services
  • Social media ordering
  • Push notifications on the mobile app

Published By: Applova

Five Tips for Creating a Customer Success Strategy

Restaurant Tech Editors
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Five Tips for Creating a Customer Success Strategy

Customer success has to do with helping your customers achieve their desired goals. Each customer walks into your restaurant with certain objectives, and more often than not, these go beyond simply appeasing their hunger. As a restaurateur, you need to pay heed to what your patrons are looking for. The logic is pretty simple: when customers are successful in fulfilling their desires, they will come again. They will also recommend your restaurant to their family and friends. In other words, customer success creates loyal customers who will also be your brand ambassadors.

The marvelous thing about customer success is that it facilitates the success of your restaurant. Thus, it becomes a key business strategy. Here are five valuable tips for you to develop your customer success strategy:

  • Tip 1: Create a dedicated customer success teamCustomer success is its own unique aspect of business and, so, your restaurant needs a dedicated customer success team. It is the customer success officers who will forge solid relationships with your clients – relationships that will foster loyalty and long-term patronage. Ideally, your team should comprise individuals with vibrant personalities who can think outside the box. They must be team players and excellent collaborators.
  • Tip 2: Get to know your customer’s goalsIn order to engender customer success, you need a thorough understanding of what success looks like from the perspective of your customer. Helping a customer to achieve their goals is possible only when you know what those goals are. Therefore, you must uncover what customers want when they come to your restaurant. You will need to take a multi-pronged approach for this – read the reviews, look for social media tags, pay heed to customer complaints, and speak to your diners.
  • Tip 3: Plot the customer journeyFrom getting a customer to check out your menu and convincing them to place an order, to encouraging them to come back for more, there are many stages to a customer’s journey with your restaurant. You need to build a roadmap for this, identifying the pain points that could potentially occur and taking steps to preempt these. Think about all the different touchpoints – menu design, interior design, order processing, payment, quality of food, hygiene, nutrition and whatever else impinges on a customer’s experience of your restaurant. In your customer success strategy, you must give each of these proper consideration, always working to up the ante on every single one.Must Read: Why are QR Code Menus a hype these days
  • Tip 4: Stay in touch with your customersKeep in regular contact with your customers by utilizing the different communication channels at your disposal. Text and email are great for publicizing special offers and promotions. Social media updates should go beyond just tantalizing videos and pictures. Post about your staff, share health and nutrition tips, upload a tutorial on how to make certain dishes and share wishes on festive occasions. Keep your customers engaged through regular and consistent messaging that targets the customer success goals that you have already identified.
  • Tip 5: Evaluate customer successYou won’t know if your strategies are working, if you do not analyze the results. Some pertinent and important areas to measure are: customer retention rate, customer churn rate, customer lifetime value, average purchase value and average purchase frequency. The data analytics tool of the software you use in your restaurant will give you an in-depth understanding of how things are going, identifying areas of excellence and areas that need improvement. Channel these insights into reviewing and revising your customer success strategies.

You already know how competitive the restaurant business is. Thriving in this almost cut-throat environment is dependent upon how well you serve your customers. By ensuring that your patrons are completely satisfied with your restaurant, a good customer service strategy ensures you have the upper hand over your rivals.

Published By: Applova

Getting the Lowdown: Why You Need to Run Customer Surveys at Your Restaurant

Restaurant Tech Editors
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Getting the Lowdown: Why You Need to Run Customer Surveys at Your Restaurant

It is redundant to say that restaurant life’s super busy. There is always so much going on and you often feel swept off your feet. When you are caught in the thick of the day-to-day functioning of your restaurant, certain tasks become secondary. Running customer surveys is one such activity that gets relegated to the periphery and as such often gets ignored.

Restaurant customer surveys may seem like an extra – a nice-to-do if and when you have some time. If you take this approach with your restaurant, then you are missing out on a fundamental tool to your restaurant’s success. Customer surveys are way more important than most restaurateurs realize. They can help facilitate growth and preempt collapse. Don’t believe us?

Here are five reasons why restaurant customer surveys are vital.

  1. Customer surveys offer insights into how your restaurant can improveIf a member of staff asks a diner how their meal was, nine out of ten will make a generic positive comment. These brief phrases are not useful in any way as they are often too vague. Most customers are reluctant to elaborate when asked about their dining experience in person. Give them a survey and they are far more likely to go into detail. A carefully designed survey can elicit the feedback you need to find out how well you are doing and the specific areas you need to pay more attention to, thus helping you improve the quality of food and service.
  2. Customer surveys help you chart your restaurant’s progressCollated survey results give you a picture of your restaurant’s journey. By tracking customer feedback, you will know what areas have improved and which aspects still need working on. You can follow customer reactions to changes and see how well they have been received. You can make further changes depending on the effectiveness of previous decisions.
  3. Customer surveys are a less damaging alternative to online reviewsCustomers want to share their experiences at a restaurant. This is particularly true of bad experiences. Customers who are dissatisfied or annoyed very often take to the internet, writing scathing comments. Given that 93% of diners check out reviews before deciding on where to eat, negative reviews can be very damaging to business. A customer survey gives a diner the channel they need to vent their feelings and express their thoughts. The formality of the survey suggests that the feedback will be taken seriously, thus assuring them of follow-up action. This preempts them from tapping out nasty sentiments on the keyboard, protecting your restaurant from any harmful publicity.
  4. Customer surveys help you take timely and correct actionThe responses in customer surveys are actionable insights . If a customer has made a negative comment of a very serious nature, you could reach out to them, get more details and take suitable action. The steps you take should be two-pronged: directed towards the customer and the relevant aspect of your restaurant. Say, for instance, a customer complains about the bland taste of the food. You could offer them a discount voucher for their next visit and, at the same time, conduct a quality check in the kitchen. It is not just criticism that can lead to action. Positive feedback can point to areas that you can capitalize on so as to draw in more business.
  5. Customer surveys provide valuable customer dataBeyond the questions you are seeking feedback on, a proper customer feedback survey also asks for the customer’s details. Depending on what kind of information you need, you can solicit personal as well as demographic particulars. The importance of customer data cannot be understated: you can profile your customers so as to serve them better, you can establish contact with them and carry out your marketing activities, and you can run targeted promotion campaigns aimed at the different customer segments.

Carefully constructed customer surveys reveal vital truths about different aspects of your restaurant. You can design your surveys based on your specific needs and what areas you want to learn about. Run customer surveys regularly and use your findings to keep your restaurant moving forward.

Published By: Applova

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