How Much Price is Too Much Price
For restaurant customers? A new survey suggests sticking around 10 percent, but quality food and service remain atop diners’ wish lists. In the opening two articles of the series, we focused on consumer reactions to dining disruptions that emerged from COVID-19. Do people really want QR codes to stick around? How should orders be placed in and outside the four walls? (read the answers here). But now, it’s time to get elemental. The decision-makers and motivators behind why guests show up (and what’s keeping them out) haven’t changed all that much. Generations show different preferences and nuanced ticks, yet overall, even with habits adjusting in the wake of technology, people still want quality food. In TouchBistro’s report, 67 percent of consumers said that remains the most important factor in deciding where to eat. Next was cuisine type and value for money (both at 54 percent). As for generations, Gen Z diners were more likely to factor in recommendations from family and coworkers, as well as dietary restrictions when deciding on a restaurant, compared to older demographics. How diners decide where to dine:
- Quality of food: 67 percent
- Type of cuisine: 54 percent
- Value for money: 54 percent
- Convenient location: 51 percent
- Deals/specials being offered: 31 percent
- Recommendations of family/significant other: 28 percent
- Recommendations of friends/colleagues: 26 percent
- Online reviews/ratings: 18 percent
- Dietary restrictions/preferences: 8 percent
- Curated lists (top 10 new restaurants, etc.): 7 percent
- Recommended by an influencer online: 7 percent
- Popularity on social media: 6 percent
- Other: 2 percent
- None of the above: 2 percent.
The High Stakes of Fair Workweek Compliance
For Restaurants. In recent years, the restaurant industry has witnessed a wave of Fair Workweek laws sweeping across the nation. These laws aim to protect workers from unpredictable schedules and provide them with greater stability and predictability in their work lives. As a restaurant owner or manager, it’s crucial to understand and comply with these regulations to avoid potential legal pitfalls and ensure the well-being of your staff. Fair Workweek laws, also known as predictive scheduling laws, require employers to provide employees with advance notice of their work schedules and compensate them for last-minute changes or cancellations. These laws typically apply to industries with high levels of part-time, hourly, and shift-based workers, such as the food service industry. Fair Workweek laws have been gaining momentum across the United States, with an increasing number of cities and states implementing their own versions of these regulations. From coast to coast, jurisdictions such as New York City, San Francisco, Seattle, Chicago, Philadelphia, and Oregon have enacted Fair Workweek laws, each with its own set of requirements and provisions. The consequences of non-compliance with Fair Workweek laws extend beyond regulatory penalties and operational disruptions, potentially leading to costly class action lawsuits. These lawsuits can result in substantial financial exposure for businesses, with settlements reaching into the millions of dollars. Recent cases have seen employers facing significant liabilities for violations of predictive scheduling requirements. Given the potential magnitude of these legal risks, it is imperative for restaurant owners and managers to prioritize compliance efforts, implement robust scheduling practices, and seek legal guidance to mitigate the threat of class action litigation. By proactively addressing compliance issues, businesses can protect themselves from the severe financial implications associated with legal actions stemming from Fair Workweek violations.
Bielat Santore & Company – Restaurant Industry Alert
MONMOUTH COUNTY, NJ BAR-RESTAURANT FOR SALE
Photo used to illustrate “Sports Bar/Restaurant” only and not actual representation.
Established Monmouth County restaurant/bar; super sports bar setup; highly visible highway location; 100 seats + 95 at bar; outdoor seating for 40; turn-key operation with sweeping area exposure; financing available to qualified.
Contact Richard Santore 732.531.4200 for additional information.
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Using AI as a Tool to Boost Customer Satisfaction
The AI revolution seemed to come at the perfect time. In 2023, as artificial intelligence (AI) became the buzzword of the year, restaurants raced to use it to their advantage, and we saw big chains such as Chick-Fil-A, Wendy’s, and Taco Bell start implementing and using AI for a range of tasks. The AI revolution seemed to come at the perfect time: the QSR industry had been under pressure as they faced inflation, supply chain issues, and labor shortages. AI has increasingly been implemented to lessen the burden of these problems, with its capabilities to monitor inventory, take orders, and in Chipotle’s case, even cut avocados. Looking at the year ahead, AI will likely be implemented by even more QSRs, and for good reason. By improving operational efficiency, AI not only lessens the burden for employees, but also improves customer experience at restaurants. QSRs are drawn towards using AI due to its accuracy and efficiency. While there may be mistakes made to orders when servers are dealing with the lunch rush, AI can accurately record orders, even when challenged with complex personalizations to menu items. Big restaurants such as Taco Bell, Chipotle, and Domino’s are some examples of QSRs that have implemented AI bots into drive-through lanes and online chatbot ordering systems. As well as accurately recording customers’ orders, they are able to make recommendations and answer questions. Wendy’s has even used it to upsell menu items. With AI doing the initial heavy lifting, employees have more time on their hands to focus on delivering a high-quality customer experience. They can ensure that customers’ orders are carefully prepared, the restaurant is clean, and diners’ needs are met. By implementing AI, not only can employees focus on the more important and time-consuming aspects of their role, but customers’ experiences are improved as they are met with better quality service from staff.
Addressing Unique Concerns for Restaurant Leases
Restaurant leases are an especially unique dish. Many aspects of commercial leasing are complex—but restaurant leases are an especially unique dish for restaurant counsel to serve up. Counsel to restaurants must be aware of key operational and logistical issues posed by hospitality businesses and be prepared to address these issues to protect the restaurant. Restaurant construction is different from other tenants’ fit-out work, involving several moving parts that must come together to facilitate the restaurant’s successful operation. These include utilities, heating, ventilation, and air conditioning, managing odors, grease traps, hot water, and fire suppression systems. While counsel to restaurants need not have the knowledge of a contractor or architect, it’s important to understand the importance of the size of HVAC systems, the design of fire suppression and sprinkler systems, the capacity and location of electrical conduit and electrical service, and sanitary, sewer, and gas lines. For example, grease traps are imperative for restaurants, and it is important to determine (i) whether a grease trap is separate and external, or shared with other tenants, (ii) if shared, how maintenance responsibility and cost will be allocated among the shared users; and (iii) whether the grease trap’s location is convenient for operations. Mitigation of cooking odors is another key issue, especially in a mixed-use development, shopping center, or an urban residential neighborhood. Some landlords and municipalities require expensive odor control systems, and negotiation is important in determining the size and scope of such measures, especially given how individuals perceive odors differently. It’s also helpful to include an objective standard of negative pressure for odor control. Noise mitigation is likewise an issue landlords may be sensitive to as restaurants draw crowds of people who are out to enjoy themselves, leading to loud voices, music, and other noise that emanates from the restaurant in a way that may affect other abutters and neighbors, especially residences or hotels.
Outdoor Dining Boom
How restaurants can capitalize on the al fresco opportunity. As the weather warms and patios come alive, restaurants across the country are gearing up for a summer of outdoor dining. The pent-up demand for al fresco experiences is palpable, and smart operators are taking strategic steps to make the most of this lucrative opportunity. According to data from Tock, nearly a third of restaurants in Tock’s network have the space needed to serve guests outdoors, with 33 percent having an existing space. As the outdoor dining boom continues, here is how operators can strategically prepare or update their spaces, operations and offerings. With the recent New York City legislation making outdoor dining permanent, other cities may soon follow suit, opening up exciting real estate opportunities for restaurateurs. Sidewalk cafes, rooftop terraces, and courtyards are all excellent options for expanding seating. Alternatively, underutilized parking lots or backyards can be transformed into lively outdoor spaces complete with communal tables, string lights, and rustic decor. For those with limited space, even a single table outside can be transformed into a romantic date night or a special experience. Tock partner SingleThread, a Michelin-starred restaurant in Sonoma County, takes outdoor dining to new heights with its charming on-site greenhouse. Surrounded by flourishing herbs, edible flowers, and citrus trees, guests can savor the farm-to-table tasting menu while immersed in nature. Don’t just think of the patio as an extension of your dining room—it’s prime real estate for collaborations, parties, pig roasts, oyster-shucking demos, and so much more. By curating special packages and unique events, operators can elevate the al fresco offering and encourage repeat visits.
Why Limited Time Offerings are More Than a Passing Phase
The creative process behind LTO’s. Limited Time Offerings (LTOs) have been a staple of the restaurant industry, although their very nature is short-lived. For consumers, LTOs often bring to mind seasonal offerings that have become synonymous with specific times of the year. For restaurants, LTOs create new avenues to connect with customers and generate opportunities for chefs to expand offerings. Any quick-service restaurant endeavoring to increase consumer engagement and create a dynamic brand needs to consider making LTOs a significant part of their menu development. As a proud part of the leadership team at Craveworthy Brands, the platform company behind 11 unique restaurant concepts, I lead day-to-day supply chain management, events, distribution, and of course, LTOs. Managing LTOs across multiple brands, I’ve seen how their activations strengthen brands not just from a marketing standpoint, but operationally as well. While brands rely on consistent quality and recognizable products, having a systematic deviation from the norm creates opportunities to explore new and exciting flavors while still preserving the core menu that has created a loyal guest following. From chefs looking for a challenge to consumers hungry for something new, LTOs can inject restaurants with a sense of excitement. Before diving into the benefits of LTOs, it is important to think strategically about how its activation can drive foot traffic and how feasible it will be to source new ingredients LTO’s fall into multiple categories with two common being off-the-wall items that generate brand awareness or affordable items that use popular and easily approachable ingredients. Deciding what kind of LTO best fits your needs, whether you are going to break with convention or lean into a larger trend will determine a price point based on the supply chain accessibility of those ingredients.
I Made $70K Selling NYC Restaurant Reservations
And I don’t even live in New York. They’ve got no reservations about doing whatever it takes to land reservations. Dining out in New York City, especially at a high-profile eatery, has become a cutthroat endeavor as the demand for tables aggressively outweighs the supply. Now an elite network of resellers stands to make tens of thousands of dollars a year, while reselling sites also take a bite of the Big Apple — with some earning in the millions. At Ralph Lauren’s posh Polo Bar, tables have been gulped up by an Ivy League, undergrad math wiz named Alex Eisler. The sophomore at Brown University has made it a business to create phony numbers and emails to snag reservations — and resell them for a healthy profit. “Sometimes they recognize my voice, so I have to do different accents,” Eisler, who said he made $70,000 on bookings last year, told The New Yorker. “I have to act like a girl sometimes. I’m, like, ‘Hiiii, is it possible to book a reservation?’ I have a few Resy accounts that have female names.” Reservation resale purveyor Appointment Trader is among the sites raking in big bucks from scalping, reportedly making a whopping $6 million on secondhand booking last year — more than double than 2022. Its black-market numbers speak for themselves: A table reservation Thursday night at the West Village’s bougie Italian spot Carbone — check not included — was available for $340, while the coveted Polo Bar cost nearly twice that at $650. Even Hollywood elites like Justin and Hailey Bieber, who were shunned by Carbone two years ago for showing up without a reservation, are reportedly using the backdoor system. Last February, when Hailey wanted to hit 4 Charles Prime Rib in the West Village for dinner, she reportedly turned to a man named Nicky DiMaggio, a waste management business owner who flips table reservations on the side and usually charges a fee of $500 to $1,000. “My client list is, like, the N.B.A., Megan Fox,” he told the New Yorker. He didn’t disclose how much the Biebers allegedly paid for his services.
Did You Know?
When to stop serving alcohol and refuse service. Restaurants and bars face unique risks and complexities. As an alcohol-serving establishment, your business can be especially vulnerable to legal challenges. Do your bartenders know when to stop serving patrons? Do they understand the signs of intoxication in individuals? April is National Alcohol Awareness Month and Society Insurance is here to address these critical questions and provide essential insights to ensure responsible alcohol service.
Employee Tip
Paid leave for expectant parents. New York State’s nearly $400 billion budget also obliges restaurants and other employers to provide paid half-hour breaks for nursing mothers. New York has become the first state in the union to mandate a new benefit from restaurateurs and other employers: Paid prenatal leave. Included in the state’s now-approved budget is a requirement that employers in the state provide expectant parents with up to 20 hours of paid leave, starting Jan. 1. The time is intended to be used for such care-related pregnancy matters as doctor visits, routine tests and any medical procedures.
