Cutting Back on Dining Out
Economic uncertainties’ effect on consumer dining behavior. Barring any new global emergencies like the pandemic that caused the demise of restaurant dining, the past few months have seen it return back to life in a tempered manner. For now, gone are the sight of diners being widely spaced out and sometimes separated by sheets of plastic or plexiglass in some areas. But now a new threat has emerged that might derail that widespread restaurant recovery. This time the culprit is not some infectious disease, but it has to do with worries about how to pay for the bill. The high inflation rate, debt ceiling news, bank shutdowns, crypto restrictions and the like have contributed to a widespread thinking that in these uncertain times, it is better to tighten one’s belt. Unfortunately for the restaurant industry, which according to the National Restaurant Association will hire half a million seasonal workers this summer of 2023, this is bad news. According to them, young people form an important component of the restaurant workforce. Almost twenty percent of the sector’s employees are in the 20-24 year old age range. The dine out cutbacks will likely not come from single people or couples without families with good stable jobs and incomes. It’s actually cheaper and wiser sometimes to just eat out if there are just one or two of you, than cook at home. Single people who want to meet new people or bond with co-workers and friends might hit the bars and dance clubs, or married people might want to go on a date without their kids. There will always be a market for that. But for families with older kids, whose caloric needs are different, a family restaurant visit can hit around a hundred dollars or more if you total the dishes and drinks. If one or both breadwinners in the family are unsure about their economic prospects in the next few months, most likely dining out will be one of the discretionary expenses that gets cut in order not to miss that monthly house mortgage or rental payment. So family fine dining might be the one most affected by higher inflation.
Controlling Labor In Restaurants
Strategies for efficiency. In the fast-paced and ever-changing environment of the restaurant industry, efficient labor management is crucial for success. Ensuring optimal utilization of human resources while maintaining productivity and minimizing costs is a challenging yet essential task for restaurant owners and managers. Undoubtedly, labor cost is one of the most significant expenses for restaurants, accounting for a substantial portion of their overall budget. Properly managing labor can enhance operational efficiency, reduce waste, and ultimately improve the bottom line. To achieve these goals, restaurant owners and managers must adopt effective labor control strategies. This article explores techniques and best practices for controlling restaurant labor, drawing on research and industry insights to provide actionable solutions. Proper workforce planning and scheduling are fundamental to labor control in restaurants. Managers can accurately forecast labor needs by analyzing historical data on customer traffic, seasonal trends, and other factors. Advanced scheduling software can optimize shifts, align staff levels with anticipated demand, and reduce overtime costs. This approach improves staff morale and reduces the risk of understaffing or overstaffing during peak hours. Cross-training employees can enhance flexibility in labor management. By teaching staff to perform multiple roles, restaurants can adapt quickly to changing demands. Cross-training also promotes employee engagement, offering opportunities for professional growth and skill development, increasing job satisfaction, and reducing turnover rates.
Bielat Santore & Company – Restaurant Industry Alert
MONMOUTH COUNTY, NJ RESTAURANT AND BAR FOR SALE
Photo used to depict “Restaurant/Bar” only. Not actual representation.
Monmouth County Downtown Restaurant/Bar; located in the hub of entertainment district; institution at the NJ Shore – 50-year track record; turn-key business w/valuable liquor license; real estate included in sale; 4,584 square foot building; seats 72 dining, 40 at bar and 50 outside; grossing $35K/week; financing available to qualified.
For detailed information contact Richard Santore, 732-531-4200.
We invite you to visit our website, where you will find all our current listing inventory, a library of helpful industry resources and a collection of client testimonials expressing their assessments of our work and our service within the restaurant industry.
A voice for our industry. If you find these weekly bulletins informative and beneficial, we kindly ask that you write a brief Google review providing a vote of your appreciation. Simply Google “Bielat Santore & Company” and when the company name appears click the button on the right to write your review or if you don’t use Gmail, go to Google Maps, type “Bielat Santore & Company” – Allenhurst, NJ into Google Maps; scroll down and you will see an option to leave a review.
Unlocking the Value of Loyalty Programs for Restaurants
Serving up new opportunities to build customer loyalty. Consumers have an appetite for restaurant loyalty programs, and as market pressures build, brands can leverage these relationships to entice customers to keep coming back for more. Explore how restaurants can maximize the value of their customer loyalty programs to increase brand loyalty by moving from transactional to experiential and, ultimately, emotional engagement. Restaurant loyalty programs keep customers hungry for more. As changing customer habits, economic pressures, and other factors put a squeeze on profits, restaurants have opportunities to stand out and drive more brand loyalty by enhancing their restaurant loyalty programs. The key to these potential enhancements involves applying strategic levers that elevate the customer experience, such as exclusive access privileges and personalized services. Our new report, based on findings from the 2022 annual Deloitte survey Evolving trends in brand loyalty and consumer behavior, details how restaurants can activate these strategic levers to gain stronger brand devotion from customers. Restaurant loyalty programs have traditionally focused on transactional benefits intended to drive key metrics, such as visit frequency, share of wallet, and check size. These features are popular among consumers who enjoy earning and redeeming product rewards for free menu items or discounts. However, restaurants should consider doing more to surprise and delight guests and to make programs simpler to understand. Some brands are exploring new features, such as early or exclusive access to products (e.g., celebrity-endorsed menus), expedited or VIP services, and personalized offers. While the manifestations of strategic levers may vary by brand and evolve over time, they are fundamental to making the shift from transitional to experiential to emotional outcomes. And brands that have an emotional connection are more likely to gain stronger, lasting loyalty from customers.
Uncover Your Restaurant’s Uniqueness
A path to standing out. Restaurant operators are always looking for new tools, promotion channels, and advertising options, but they might not be quite sure what they need to say to tempt a potential guest. Before dealing with promotion of any kind, you should determine your restaurant’s base: the value of the establishment, its uniqueness, target audience, and the place that the restaurant occupies in the minds of guests. It often happens that restaurateurs are bogged down in operating activities and don’t really think about this. However, when they need to attract guests, the question arises: “What kind of restaurant have we created over the years?” Usually, the longer you run your restaurant, the more challenging it becomes to identify its uniqueness. Often there is no need to invent or search for something new. It is better to collect all the available data and, on its basis, form your restaurant’s uniqueness. Instead of looking at a new field, it is better to examine the already-harvested crop. When determining a restaurant’s uniqueness, an owner might consider an establishment as a single system, but it is better to look at each sector of the restaurant separately. The main thing is to look at your restaurant from different perspective. This will help you better understand the establishment and determine its uniqueness. Let’s explore some examples how restaurants that initially lacked uniqueness managed to create it themselves without incurring significant costs.
Understanding Why Open Architecture is So Important
Innovation, efficiency, and adaptability. Many of the successful restaurants that I work with execute trends around innovation, efficiency, and adaptability to make them the most proficient among the space. What isn’t seen is the driving force behind making that happen: Open architecture. It plays a vital role in the success of restaurants by giving you the choice of your desired inputs and improving operational efficiency within the industry. Open architecture becomes the driving force behind seamless integration and a gateway to a realm of endless technological possibilities. From your Human Capital Management system of record to point-of-sale systems to scheduling; open architecture harmonizes these diverse elements to unlock the true potential of an establishment. Restaurants can achieve the potential for streamlined operations, leading to improved customer satisfaction and service. Paylocity understands the importance of open architecture and supports the client in deciding which systems may be best for them. The “one size fits all” approach does not always work within organizations, and it should be up to the client to determine if adopting a plug and play method is the most beneficial choice for their operation. Most vendors possess API technology, but they often exercise selectivity in choosing their collaboration partners or the pace at which they engage. The Paylocity marketplace serves as an invaluable resource for clients, offering insight into the integration opportunities available to them across our vast network of technology friends and partners.
Center Cinemas To Get Liquor License
New legislation. If not being able to sip your favorite alcoholic concoction or brew kept you from enjoying that cinematic gem showing at Basie Center Cinemas, it’s time to buy your tickets. Gov. Phil Murphy signed a new law July 7 allowing nonprofit movie theaters focused on the arts to sell alcoholic beverages with a plenary retail license. “Nonprofit theaters provide a world of good to our communities,” said Murphy in a statement July 8. “Treating them the same as nonprofit corporations conducting musicals or theatrical performances and allowing them to serve alcohol will enhance the entertainment experience for theater-goers while enhancing their bottom line to ensure they remain afloat and continue to benefit our communities,” he added. According to the governor’s office, the legislation will expand an existing law that already allows municipalities to issue plenary licenses to nonprofit theatrical arts organizations. “Nonprofit arts groups and venues, like other nonprofit entities, took a tough hit during the COVID-19 pandemic,” said Sen. Vin Gopal (D-11), who sponsored the legislation with Sen. Shirley K. Turner (D-15) and Assemblyman Sterley S. Stanley (D-18). According to Gopal, the law is “one way to help” art-house movie theaters recover and boost the entertainment value for patrons. According to the bill, the holder of this special license, known as a “theater license,” may serve alcoholic beverages for consumption on the premises during the performance, as well as two hours before and after the performance, with the exception of certain smaller theaters where the amount of times they can serve alcohol during the two-hour post-show window is limited to 15 events per year. Additionally, theater licenses are not subject to the same population restriction as bars and restaurants that limit one license for every 3,000 residents in a municipality.
Why Restaurants are Shifting Their Attention Back to Local Marketing
Younger consumers crave more authenticity from brands. Restaurant companies are shifting their marketing resources back to the local level. At least some of them are. According to the Harvard Business Review, more marketers have started to look for ways to cut through the digital clutter that has been accumulating since about 2012, and direct mail and local/guerilla marketing are effective tactics. Consider one survey of Millennials from USPS, for instance, finding that 75% of respondents said receiving personal mail makes them feel special. Or, a survey from Hubspot, which finds most people don’t like digital video ads, while 43% have never watched them. “We’re going back old school and bringing on a local store marketing plan. It’s just going to be grassroots guerilla marketing at the store level because we see so much competition for search engine marketing. We’ve all been spending all this money for the same real estate on search engines and we have found we’re more effective with more direct, localized marketing,” Chuck Imerson, CEO of Asian Box, said during a recent interview. Asian Box isn’t alone in finding such effectiveness. Red Robin CEO GJ Hart has talked at length about moving to a more localized marketing strategy since coming on board last year. “Red Robin was the original leader in local marketing, and we will drive to return to our local marketing routes,” he said during the company’s Q1 call in May, noting that such efforts generate more loyal guests who visit and spend more.
Did You Know?
A look inside Chick-fil-A’s planned new prototypes. The chicken-sandwich chain plans to open two new prototypes targeted at takeout customers, including one of them with a four-lane drive-thru under a second-story kitchen. Chick-fil-A’s next Atlanta-area restaurant may be one of its most innovative. The chicken-sandwich chain plans to open a pair of new test concepts next year that cater to takeout customers in radically different markets, an acknowledgement of the evolving strategies for fast-food real estate and consumer demand. That includes one location, slated for the Atlanta metro area, that will feature four drive-thru lanes, two traditional lanes and two mobile order lanes, that will travel under a large, second-story kitchen.
Employee Tip
A better approach for unbanked restaurant employees. More than 75 percent of Americans say that increasing financial stress is impacting their productivity at work. Financial insecurity has hit all-time highs in many segments of the workforce, including the restaurant and quick service restaurant (QSR) industries, whose workers tend to be more underserved with less access to affordable banking services. Workers who lack access to basic financial services are subjected to paying expensive fees for things like cashing a check. We believe there is a better approach for workers which reduces costs for employers and promotes financial wellness for employees.