Integrating Renewable Energy Solutions
In Restaurants. More restaurant executives are choosing renewable energy options to meet sustainability goals. Check out some real-life examples of their progress. Numerous net-zero targets have made restaurant leaders realize it’s time to shrink their carbon footprints. There’s no single way to do that, but many have explored using renewable energy in their facilities. Planning a Progressive Expansion. Achieving renewable energy targets is easier when decision-makers create specific milestones and paths to reach them. Those from fast-food restaurant chain Wendy’s took that approach when setting a 2030 goal that uses community solar programs to reduce emissions from a 2019 baseline. It involves reducing Scope 1 and 2 emissions by 47 percent and cutting Scope 3 emissions from franchisees’ restaurants by 47 percent per location. Wendy’s executives also want more than 200 locations to source solar energy by 2025—up significantly from the 10 that did so in 2023. As of April 2024, almost 40 company-owned Florida locations got solar power from an energy provider partnership. Then, nearly 100 Illinois and Massachusetts locations receive renewable energy from a public benefit corporation that connects participants to nationwide community solar programs. Leaders anticipate those restaurants eventually meeting 40 to 100 percent of their energy needs with sun-powered solutions. Making a gradual roadmap like this one is a practical way for decision-makers to make serious renewable energy commitments. Otherwise, it’s too easy for them to get overwhelmed or lose sight of goals, potentially slowing their momentum. Solar panels can reduce restaurants’ energy bills by minimizing their power provider dependence. However, people can make other meaningful changes to reduce their usage. For example, they could enjoy up to $400 in annual savings by eliminating one hour of idle or unnecessary oven operating time daily.
The New Value Equation at Restaurants
People have shallower pockets but still want to eat at their favorite restaurants. Restaurant value used to be a much simpler calculation: Discount-driven customers would seek out dollar meals at quick-service restaurants, call for pizza delivery on Friday nights (sans delivery fees), and then splurge on full-service meals on rarer occasions. But in 2024, with dollar menus all but extinct, and newer variables like convenience pricing, service fees, shrinkflation, and dynamic pricing in the mix, the consumer value equation has never been more complex. Or has it? Customers may have more options than ever before, from ordering almost any food they want from the comfort of their own home to choosing to dine out “the old-fashioned way” (and every “channel” in between), but spending habits have not changed as much as we might think they have. According to data from Technomic, customers are roughly as price-conscious now as they were just before the pandemic. In a survey, half of customers said that they picked restaurants with lower prices in Q1 2020, while 52% of customers said they do so in Q1 2024, and the exact same percentage of customers (68%) said they pay close attention to menu prices in both Q1 2020 and Q1 2024. “Price sensitivity went down during the pandemic because people were more flush with cash; there were fewer places to spend it, but they had more on hand,” said Robert Byrne, director of consumer and industry insights for Technomic. “That’s not the case now, but restaurant prices aren’t the only things that have increased. It’s all expensive now. So, as a consumer, my thinking about restaurants is not any different than going to the grocery store or filling up my car with gas. … Consumers love restaurants. If they have $10 in their pocket, it’s going to go to foodservice, even if they can only afford a smoothie.”
Bielat Santore & Company – Restaurant Industry Alert
OCEAN COUNTY, NJ – SEASONAL MARKET/DELI FOR SALE
Photo used to illustrate “Market-Deli” only and not actual representation.
High volume, family run Jersey Shore food service business with a (20) year successful track record; located in the Ocean County, NJ; a staple for all of the Barrier Island communities during the summer season from May 15th to September 15th; owners have developed a rich tradition of serving “Only the Best” quality sandwiches, prepared foods, market items and custom cut prime meats; everything is made fresh daily, on premise, from time-tested family recipes; deli; grill; bakery; butcher; grocery; fresh produce; prepared foods to-go and catering orders both large & small.
Contact Robert Gillis 732.673-3436 for additional information.
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Innovative Marketing Strategies for Restaurateurs
From food trucks to pop-ups. Marketing remains a vital part of driving guests into restaurants. You need to make sure that your brand stands out from the crowd. In all likelihood, you’re already using many of the basic tactics, such as search engine optimization and content marketing. But how can you push your business a little further? Some of the most innovative marketing strategies for restaurateurs involve straying beyond your brick-and-mortar borders. Mobile and temporary extensions to your brand, from food trucks to pop-ups, can help you boost your public profile and success. A lot of businesses have goals to expand their brand to incorporate additional premises in different cities or neighborhoods. This is great, but it can also be an expensive and risky prospect if you’re not sure of your audience in your target locations. There are ways you can market your business to a new customer segment and introduce them to your flavors, style, and values before sinking your investment into a permanent space. Some of the key affordable additional location options that can promote your brand include: Pop-up eateries: Creating a temporary location for your eatery can be a way to generate some buzz while also testing the waters for your brand in a new location. Some restaurants do this by hiring a temporary metal building or tent. Though, some malls also offer short-term leases on units. The key is to find a high-traffic location near to where you’d plan to expand. This gets the most eyes—and taste buds—on your offerings, allowing you to gauge and drive interest. Food trucks: Putting your business on wheels can be a practical way to reach new markets, particularly if you’re torn between a few possible locations. There’s a lot of freedom, as you’re only limited by where you can practically travel and where customers are likely to find you. Importantly, you can chat with new patrons and build relationships with them. Ensure that the truck is decorated with the visuals of your restaurant brand, to get people interested in what you’re doing and to make your truck easy to recognize when out and about.
How to Find a Balance Between Raising Prices and Lowering Food Costs
Operators should classify all of their menu items to adjust prices accurately. Of surprise to no one, a major theme emanating from the National Restaurant Association Show floor is pricing. Operators are looking for solutions to protect their margins as input costs continue to elevate, but consumers seem to be reaching their pricing threshold as evidenced by recent traffic erosion. So, what’s the solution? According to Ray Villaman, CEO/owner of the Tahoe Restaurant Group, there are ways to strike the right balance and it comes down to three key strategies:
- Understanding how to classify all menu items in order to adjust prices accurately.
- Implementing recipe costing cards and a kitchen waste sheet.
- Learning negotiating tactics to lower vendor prices.
Villaman provided a playbook to implement these strategies during a packed educational session Saturday titled, “Raise Menu Prices or Lower Food Costs?” To start, it’s important to understand sales projections, which he derives by looking at year-over-year plus the previous three weeks’ worth of sales. “You have to know your food cost and your labor cost targets,” he said. “Prime costs are everything in a restaurant. Projections are how we run our business.” Once those projections are in place, classify your menu so you can identify where your profits are coming from. As you examine your menu, Villaman said, categorize each item into four categories: Gold, which is high volume, high profit; silver, which is high volume, low profit; bronze, which is low volume, high profit; and dogs, which are low volume, low profit. “We encourage you to replace, get rid of, turn over, or try new things with the dogs,” Villaman said.
Boosting Profits One Sip at a Time
The power of specialty beverages. The typical drink upsell—soft drinks and coffee or tea—has decreased over the past few years as customers increasingly eat restaurant food at home. In its place, we’ve seen an explosion of specialty beverages that serve as enticing add–ons or stand-alone orders. These drinks offer a profit-making opportunity at a time of declining sales and foot traffic. The data paints a juicy picture:
- 80 percent of respondents in our Q1 2024 survey of 600+ people reported ordering specialty drinks multiple times a week despite reporting a decline in their overall restaurant visits.
- Though nearly half of survey respondents say they purposely order less to save money, they still value their drink orders. One in four respondents order specialty beverages more than once a week.
- While three in four survey respondents believe restaurant prices are higher, other factors, such as flavor, outweigh price when ordering specialty beverages, particularly in the full-service segment. During a time of increased price sensitivity, beverages create an opportunity to increase the total check.
- Delivery users are less price-sensitive than customers using other sales channels. This presents a golden opportunity to upsell specialty drinks before checkout on your restaurant app.
In today’s economic climate, maximizing customer revenue is vital for restaurant success. The RMS survey sheds light on the significant and often overlooked opportunity that specialty beverages present. By implementing the strategies outlined above and utilizing restaurant data analytics to gain customer and competitive insights, operators can transform beverages from a side note to a strategic check driver. In a market where every penny counts, leveraging the power of specialty beverages can be the secret weapon your restaurant needs to thrive.
Restaurant SEO
A weekly checklist. On average, restaurant SEO campaigns can see a 500 percent ROI after three years, so there’s massive potential for you to use SEO to grow your restaurant. Make Sure Your Google Business Profile Is Optimized, Up-to-Date, and Active. This is, by far, the most important part of your local SEO checklist as a restaurant owner. Most people are using Google Maps to find your restaurant, not the Google search engine inside of a web browser. Google Business Profiles help you get more customers by showing up for near-me searches. On the web, your Google Business Profile (formerly Google My Business) can show up in the “Three-Pack,” of top listings. Because it increases visibility, you want to rank in the Theee-Pack, which is why optimizing your Google Business Profile should be a priority if you want to show up at the top of the search results when your customers type in things like “[YOURFOOD] near me.” You can find step-by-step instructions for setting up and maintaining your profile in this Google Business Profile article, but in general you should treat it like a social media site. Each week, do at least the following:
- Update your business hours in case of special events, weather, or holidays so that customers don’t show up when you aren’t open. That can be frustrating, and many will blame you for this rather than Google, which can reflect poorly on your restaurant’s brand.
- Respond to reviews with unique messages. Don’t use templates. The purpose of these is to drive engagement. Potential customers read through these reviews, so handle them with care to give an impression of good service. This will reflect positively on your restaurant and can dissuade someone from listening to a bad review if you handle it appropriately.
- Add new photos whenever you have an event, change the decor, or offer a new menu item. Photos create engagement and can bait clicks away from competitors if they look delicious enough.
- Make a post that’s similar to something you might post to Facebook. Post new menu items, offers, events, and any other updates you would post to a social media account.
What Do Customers Expect from Restaurants
Post Covid. U.S. restaurants continue to face challenges that include staffing (52%), burnout (50%), compensation (45%) and supply chain issues (40%), according to a survey by Ipsos. Compounding those issues is that 42% of workers within the food service industry want to quit their job. Today, pandemic-era courtesy is over; consumers are returning to restaurants in full force this year – 31% of them want to dine at restaurants even more frequently than pre-Covid – and, reasonable or not, they’re expecting restaurants to have already solved their supply chain, staffing and training challenges and have worked the bugs out of pickup and delivery technology. Their primary motivations are to try new foods and cuisines, as well as convenience (i.e., getting their food quickly). Secondary motivations include spending quality time with family and friends. The most important factors for an enjoyable dining experience, as cited by survey respondents, include spending quality time with family and friends (52%), getting the most value for their money (45%), making healthier meal choices (20%), trying something new (18%), getting a meal quickly and easily (14%), entertainment value (9%) and having a meal that is popular (5%). Frustration among consumers is increasing, and consumers are far less loyal to brands that are consistently underperforming. Pickup and delivery technologies are the new norm. But their speedy implementation for many restaurants proved painful. Communication is critical, but many restaurants fail to consistently communicate – 24% of restaurants fail to confirm an order and give a pickup time, while 19% do not provide clear pickup instructions. A whopping 70% do not notify customers when their orders are ready. In addition, many restaurants force consumers to use their app for communication, rather than the consumer’s preferred channel.
Did You Know?
Gordon Ramsay owns way more restaurants than you realize. British chef Gordon Ramsay may be best known as a TV chef on shows like “Hell’s Kitchen” and “Kitchen Nightmares,” but he’s also a serious restaurateur. As in, he has 81 different restaurants to his name, which run the gamut from Michelin starred fine dining down to casual pizza and burger spots in malls. That empire spreads across at least ten countries — beyond the U.S. and the U.K., he has outposts in France, China, and Qatar, to name just a few. Depending on how you measure it, he’s arguably the celebrity chef with the biggest footprint in the world when it comes to restaurant ownership.
Employee Tip
Employee expectations around rewards are changing. Prioritizing employee engagement and satisfaction is a critical goal for organizational prosperity. Recent insights shed light on two pivotal trends that emphasize the shifting dynamics of employee recognition: the allure of receiving rewards and the preference for digital gift cards among younger and remote workers. While the concept of recognizing employees with rewards is not novel, recent studies have revealed a stark contrast between employees’ enthusiasm for receiving gifts and the actual prevalence of such gestures in the workplace. Many employees express excitement at the prospect of receiving a gift, viewing it as a tangible token of appreciation for their contributions. However, a significant gap exists between aspiration and reality, with only a fraction of employees reporting receiving gifts from their employers.
