A Preview Of What Lies Ahead For Restaurant Design Trends
Restaurant design trends are continually evolving. In an ongoing effort to please their current patrons, attract new business and compete with the competition, restaurants are continually rethinking and upgrading their designs. Classic diners of the 50s and 60s eventually gave way to the bold and vibrant restaurants of the 80s, which gave way to geometric shapes of the 90s. At the beginning of the 21st century, minimalism and soft colors began to take hold. What then, does the future hold for restaurant design? According to several notable restaurant design experts, patrons can expect to experience the following trends:
- Cultural crossovers: In 2024, we’ll see cross-cultural culinary destinations with restaurants that blend traditions from around the world. This trend will extend to restaurant design, where spaces will seamlessly weave together diverse cultural influences to create an immersive journey for guests.
- Mixology is on the rise: Craft cocktails are taking on dramatic presentations and unexpected flavor combinations. Restaurant and bar design will align with this trend, and guests will experience visually stunning bar setups with dynamic lighting, eye-catching backdrops and furniture and fixtures that enhance the experience.
- A continued emphasis on creating an urban oasis: People want to relax and restaurants that offer a respite from the hustle and bustle will gain traction. Rooftop gardens, indoor green walls and al fresco dining with a focus on sustainable design will help create an escape within a city.
Thinking About Dynamic Pricing?
Tread carefully. Dynamic pricing, also known as surge pricing, is expected to take off in the coming years, thanks to new technology. But customers may not like it. Earlier this month, according to the New York Times, the U.K. pub company Stonegate said it would charge more for a pint of beer at 800 of its 4,000 pubs during times when they’re busiest. The practice, known as dynamic pricing or “surge pricing,” is a growing phenomenon, not just in the U.K. but in the U.S. And many expect it to grow in popularity in the coming years, thanks largely to technology. It’s certainly a big topic in the restaurant industry. It is a common question at industry conferences, such as the recently concluded FSTEC, a sister operation of Restaurant Business. A lot of companies are thinking about it. “It’s a huge, ethical battle internally at Dog Haus,” CJ Ramirez, EVP of marketing with the hot dog chain, said on Friday at the conference. Brands should indeed tread carefully when it comes to the practice. While dynamic pricing is alluring to companies looking to take advantage of demand when they’re busiest and price more aggressively when they’re not, the practice is a minefield. Specifically, restaurants are a competitive industry. And consumers can easily shift their attention elsewhere. Consumers, said Technomic Senior Principal Rich Shank, “tend to not think dynamic pricing is fair.” Most of the industries where the practice is most common tend toward more captive consumer audiences than restaurants, where people have less choice. At a restaurant, a customer can simply look at the prices of a cheeseburger on an app and opt for somewhere else. Dynamic pricing in simple terms is demand-based pricing. Lower prices when demand is lowest. Raise them when prices are higher.
Bielat Santore & Company – Restaurant Industry Alert
MJ’S – ANOTHER BRICK IN THE WALL
One of New Jersey’s fastest growing restaurant companies, MJ’s Restaurants, has just purchased their eighth restaurant. MJ’s newest acquisition is the former P.J. Sweeney’s Irish Pub located on Brick Boulevard in Brick Township, Ocean County, New Jersey. The broker for the sale was Richard R. Santore of Bielat Santore & Company, Allenhurst, New Jersey. Bielat Santore & Company is MJ’s exclusive real estate broker and has selected the sites, negotiated the transactions, and secured financing for all the company’s eight locations.
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The Impact of the Fast-Food Wage Compromise in California
Won’t be limited to fast food. n California, the battle over fast-food chain regulation appears to have reached detente, but the impact of the compromise is expected to ripple across the industry to all segments—and, some say, all industries. In a complex compromise announced last week, labor organizers and key restaurant industry representatives reached an agreement on legislation that is expected to be signed by the governor in coming weeks. Under the agreement, the Fast Act will be repealed and the effort to establish a joint-employer relationship between franchisors and franchisees is dead. Assembly Bill 1228 was rewritten to create a modified Fast Food Wage Council that will establish minimum standards on working conditions for the industry. And the state’s minimum wage will increase to $20 per hour, starting in April 2024, which will be a 25% increase from the $16 per hour wage that is scheduled to begin in January. AB 1228 is described as a fast-food law. But the bill specifically targets any limited-service chain with more than 60 units nationwide, so it applies to fast-casual operators like Chipotle and Sweetgreen as much as quick-service concepts like McDonald’s or Burger King—though bakeries that sell bread as a stand-alone menu item, like Panera Bread, for example, are still exempt, as would have been the case under the Fast Act. Fundamentally, however, increasing the minimum wage for limited-service workers forces other segments to follow suit.
Don’t Give Computers the Keys to Your Restaurant
Factor human intervention into contingency plans. Technology should help the restaurant industry offset traffic-dampening demographic trends along with the business’ worsening shortage of workers, but it could fail to deliver on both fronts if operators disregard the importance of having human backup for what it’s counting on machines to do. That was the message sounded by Technomic Senior Principal and VP of Innovation Rich Shank as he benchmarked where restaurant technology is heading during a key presentation at the FSTEC technology conference. As he explained, the industry has a traffic problem that’s likely to be aggravated by “tectonic” trends in American demographics. The U.S. population is only growing at a rate of 0.6%, or half the rate clocked 20 years ago. The upshot is a thinning of the population entering the industry’s pool of consumers. At the same time, Shank said, the buying habits of that pool are likely to change as Baby Boomers and other well-off oldsters age out of the pack. Because those mature groups have money and a reliance on dining out, they’re restaurants’ best customers. But their ranks are not being fully replenished by younger cohorts, who don’t share their elders’ propensity to visit restaurants. He asserted that technology could be the means of fostering more visits from that smaller and less-infatuated group. He noted how loyalty programs have become more sophisticated as the industry pulled its way out of the pandemic, a trend he said consumers have welcomed. A Technomic survey of consumers found that 47% of today’s diners are drawn to a restaurant that offers a loyalty program.
Why it’s Critical for Restaurants to Maximize Food Safety
And minimize risks. An employee at your restaurant made an innocent mistake: they prepped raw chicken and then sliced watermelon for a fruit salad on that same board. Then, they served the contaminated fruit to guests at dinner service, unknowingly causing a foodborne illness outbreak that sickened dozens of your customers. As the restaurant operator, you’re devastated. You pride yourself on always following food safety protocols and protecting your guests. The fallout was immediate and overwhelming. The media ran scathing stories about your staff’s carelessness. Social media erupted with negative posts and harsh comments. Customers vowed to never visit your restaurant again. Sales took a hit. All could have been avoided if your employee had just been more careful. Similar scenarios play out frequently at restaurants nationwide. Each year, millions of people are sickened from avoidable food safety breaches. Prevent future incidents from happening! September’s Food Safety Month is the perfect time to remind employees to prioritize food safety and mitigate risks by following these tips. Tech tools are instrumental in elevating food safety and reducing risks. Rely on technology to get a holistic view across your organization, accessing key data for more informed decision-making. Digital solutions can also optimize equipment monitoring, temperature checks, inspections, auditing, and other essential food safety tasks. Make sure all employees follow proper food safety protocols, like cooking foods to proper temperatures, avoiding cross-contamination, sanitizing surfaces and equipment regularly, washing hands often, storing foods properly, conducting proper inspections, etc. Use separate cutting boards, knives, and other equipment to prep raw vs. cooked meat, poultry, seafood, and eggs. Store raw meat and poultry separately from fruits, vegetables, and other ready-to-eat foods. Cool foods properly before refrigerating them. Store raw proteins on the bottom shelf of the walk-in to prevent cross-contamination from raw juices dripping. Make these rules non-negotiable.
The Evolution of Ordering in Restaurants
From counter to kiosk. Initially met with skepticism, self-service ordering kiosks have become an integral part of the hospitality sector. With over 65% of quick-service customers1 opting for kiosk-based ordering, the labor shortages have acted as a catalyst, propelling businesses to explore automated solutions. Establishments equipped with kiosks consistently report higher sales, a testament to their effectiveness in streamlining operations and catering to modern consumer preferences. Beyond merely boosting revenue, the reallocation of labor towards more value-added services, such as customer interaction and table service, enhances the overall dining experience. This shift isn’t just about operational efficiency or cutting costs. While technology plays a pivotal role, the underlying driver is the desire to meet evolving customer expectations. In fact, 79% of customers2 find kiosk-based ordering more convenient. With their intuitive interfaces, kiosks promise swift service. Customers can effortlessly navigate menus, place orders, and finalize payments in seconds. For many diners, time is of the essence. 56% of diners admit their patience wanes after waiting in line for 5 minutes to order food. Modern kiosks have evolved beyond mere order takers. They’ve become personalized culinary advisors. Patrons can now customize orders based on dietary needs, and the system’s intelligence can suggest add-ons based on past preferences. This blend of technology and personalization is even making its way into upscale restaurants, ensuring that luxury dining remains efficient without compromising the experience.
6 Shifting Consumer Trends Affecting Quick-Service Restaurants
Food spending is expected to rebound through 2024 and into 2025. Consumers’ preferences are shifting like never before, due to a variety of societal and economic dynamics. How can quick-service restaurants adjust to maintain—and potentially increase—foot traffic during these transformative times? The first step is to gain awareness of the consumer mindset, and then develop a strategy to add value and growth. The good news is that consumers aren’t trading out of foodservice; however, many are trading down within the segment. They’re choosing less expensive options like quick-service and fast-casual restaurants. According to industry data, food spending is expected to rebound through 2024 and into 2025 as the country moves into a recovery phase following a mild recession. The evolving consumer behaviors translate into six megatrends that can impact restaurants, from what people eat to where, how, when, and even why. Wellness lifestyles are deepening, and the new definition of “wellness” encompasses physical, mental, spiritual, and ecological health. People are focusing on optimizing lifestyles, with an increasingly gentler and more compassionate approach. Consumers say they prefer foods that aren’t overly processed or contain unknown ingredients. They’re seeking more plant-based products; yet expectations have evolved. To be relevant with plant-based products today, restaurants must deliver on exceptional taste, nutrition, and sustainability. Examples of these consumer preferences include starch/carb products like chickpea pasta and cauliflower pizza. Gen Z (currently ages 12–25) is the most passionate generation when it comes to plant-based.
Is Your Restaurant AI the Real Deal?
Here are five questions to ask vendors. The restaurant industry is undergoing a technology renaissance. Everywhere you care to look, AI and automation can be found taking on critical roles and supporting restaurants, bars, cafes, and coffee shops still battling against labor shortages and rising inflation. Robots are helping with food prep and even serving dine-in customers. Data-driven analytics tools are allowing restaurants to optimize pricing and personalize menu options. ChatGPT-style technology is writing food descriptions and generating meal imagery. Voice AI is taking orders over the phone, at the drive thru, and at kiosks to help reduce customer wait times and drive more sales. It’s unsurprising that even restaurant executives that have been historically cautious of fleeting tech trends are now looking into AI more seriously. But – as with any burgeoning movement – AI also gets served up with a large side of hype. It can be difficult to navigate the fast-growing field of restaurant tech in a way that clearly separates the best from the bogus. Here’s advice on what to ask during your next conversation with an AI vendor. In the world of technology and data, it’s best to know exactly who you’re getting into bed with before you take the plunge. Some restaurant AI sales people may not be forthcoming about only actually owning the “visible” part of their solution, with the rest running on top of different systems run by third parties. It’s important to know who owns different layers of the tech stack (or components of the platform) so you know who else you’re in business with – and who owns the data.
Did You Know?
Addressing employee hiring & retention in the hospitality industry. Employee retention is a serious issue that employers in the Hospitality and Food Services industry are facing today. Employee benefits, health insurance and retirement benefits in particular, are a useful strategy for hospitality operators when it comes to attracting and retaining employees. Consider the following when designing your plan for employee hiring & retention:
Employee Tip
Tipping in restaurants falls for the first time in years. Tipping 20% at a sit-down restaurant is still the standard in the U.S., according to most etiquette experts — diners disagree. After holding steady for years, tipping at full-service restaurants fell to 19.4% in the second quarter of 2023, according to online restaurant platform Toast’s most recent restaurant trends report, notching the lowest average since the start of the Covid-19 pandemic. “Tip fatigue” is largely to blame, the report found.