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Boosting Alcohol Sales via Self-Service Beer

Nov 28, 2015

Visit any favorite froyo shop and you’ll find a similar mode:  walls are lined with a host of flavors, all ready for self-service. Now consider this setup for alcohol. Self-service alcohol? How might that work?

 

Boosting alcohol sales is a crucial goal for many restaurants due to high margins and the potential to increase top-line sales.

Some operators have found that guests just don’t want to wait for a server (or get back in to line) to order a second round of their favorite craft beer, which is what research points to the millennial consumer set seeking.

 

So what’s a restaurant to do? This Nation’s Restaurant News article taps into how companies like Zpizza have reaped sizable sales increases utilizing self-service beer technology. The chain uses the iPourIt system, however there are other technologies available, such as PourMyBeer and DraftServ. The trend is truly catching on—PourMyBeer’s self-service beer walls and beer tables are in use at 200 locations across the nation. Check out how the system works here.

 

If you’re not yet ready to take that leap, please read our article on how you can increase alcohol sales at your restaurant.

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The Tipping Point:  5 Things to Consider in the Debate over Restaurant Tipping

Nov 24, 2015

 

By Mandy DeLucia, Synergy Project Coordinator

 

Labor costs are rising and savvy restaurateurs are reevaluating their labor models.  Ever since hospitality guru Danny Meyer surprised the industry with an announcement about moving to eliminate tipping in his restaurants, the industry has been discussing the merits and pitfalls of a tip-free system. We have outlined five important factors to consider as you formulate your own opinion on the debate.

 

1.) Fine dining is better suited to the “service-included” model.

Restaurants with higher prices could have an easier transition away from tipping because customers may not be as sensitive to an added 18% gratuity charge or a 20% increase in prices. As the fast-casual sector continues to thrive, customers are growing used to an experience where they participate in some way in the service model in exchange for a high-quality meal with no tip expectation. Value-focused customers have moved away from casual dining, where mandatory tipping makes the bill more expensive. But in a fine-dining setting, a shift in price from a $30 steak entrée to a $36 one is unlikely to have a negative impact on traffic—provided the guest experience remains positive.

 

 

2.) Moving to a salary model will require a shift in employee evaluation and training procedures.

The tip system minimizes the need to evaluate servers and give them raises. Of course, operators always evaluate servers to ensure they’re doing a good job, but the tip, and not an annual raise, provides that incentive. Similarly, servers are driven to deliver drink refills or offer friendly and hospitable service by the direct reward of a good tip. In a tipless system, management will have to consider giving workers annual raises and pay close attention to overtime, given that they’d be responsible for paying even more in wages if their staff works more than 40 hours per week. As restaurants move to higher wages, the cost of benefits will be higher too. And if tip policies go away, restaurants will also have to reinforce training that encourages servers to deliver good service at all times, regardless of the tip reward.

 

3.) Just because it works in Europe doesn’t mean it’s right for the U.S.

Some will argue that restaurants in Europe don’t rely on tips and yet the system works. However, in the U.S., our system is different and it is not an easy comparison. In order to fully understand the complexity of that assessment, one would need to compare factors such as payroll policies, labor costs, rents, taxes, costs of goods, hours of operations, holidays, employee benefits vs. publicly provided benefits in European nations, even cultural habits and dining times.

 

 

4) Changing technology is impacting the way people tip.

With the shift of liability for fraud forcing restaurants toward using integrated POS systems with EMV chip capabilities, restaurants are finding that the new system is impacting payment processes. EMV handheld readers must sync with POS systems, but transactions can no longer be processed away from the customer. With chip-and-PIN cards, tipping will have to be processed before, not after, the customer pays the bil, which will mean that the server will be nearby while the tip is being decided. With the rise of tablet-based payment systems for smaller or independent operators, guests paying by card are being offered tip options of 10%, 15% or 20% at the time of purchase or must opt-out of tipping completely to finalize a purchase. This can add a layer of discomfort to the transaction as it happens under the gaze of the beneficiary of that tip.

 

 

4) Tipping as a portion of compensation supports small businesses and facilitates start-ups for independent operators.

Of course, management in the restaurant business would like to pay their staff more, and would like to compensate back-of-house employees as well as servers, whether through improved benefits, recurring bonuses, profit-sharing, stock options or real wages. However, small increases on a daily basis hit hard and fast when multiplied out over a number of employees with a number of shifts per week over the course of a year. Small operators can offset labor costs to customers through tipping, which subsidizes an extra $5.12 to tipped workers (the gap between the minimum required rate for tipped workers vs. minimum wage). Tipping also allows servers the opportunity to exceed an hourly rate, rewarding good service but also helping busy restaurants recruit hospitality talent through the prospect of higher earnings.

 

5) Eliminating tipping could result in better food.

In restaurant cultures where tips aren’t part of the business model, line cooks normally make considerably more than waiters. The U.S. has a system that prohibits servers from sharing tips with cooks, dishwashers, and other staff who do not interact with customers. By adding a service charge to every check, operators could help close the divide in restaurants between the tipped and the non-tipped—a change that could benefit staff and customers alike. The checks may get a little bigger, but if a happier, better-compensated staff is making the food a little tastier and bringing the wine a little faster, everyone wins.

 

Remember, too, that a no-tipping model can also lead to better service. As this article in Restaurant Business points out, since Joe’s Crab Shack switched to a set wage, they have had fewer problems with service on big parties, which are a frequent source of business for the 18-unit chain. That’s because servers often balk about having to split the tip with someone who helps them; now a big party is assigned the number of servers it needs.

Tips photo credit: Aaron Stidwell CC by 2.0

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Global Flavors: Peruvian

Nov 24, 2015

Part of a series of explorations into emerging global cuisine concepts for mainstream menus.

 

One of the world’s original fusion cuisines, the modern-day food of Peru includes influences from the indigenous population including the Inca, and cuisines brought in with immigrants from Europe (Spain, Italy and Germany), Asia (China and Japan) and West Africa. Woven throughout Peruvian cuisine are it many aji, or chiles—more than 300 varieties according to some sources—which along with quinoa, beans, corn, potatoes and tomatoes are the country’s most famous traditional native foods. Add in such tropical South American fruits as papaya, guanabana, cherimoya and dragon fruit and you have the makings of some truly fascinating and flavorful specialties.

 

The following typical Peruvian dishes that are making the translation:

 

Pollo a la Brasa – This marinated, roasted or rotisseried chicken is one of the most consumed foods in Peru, and the centerpiece of the menu at the growing chain Nando’s Peri-Peri. Pollo a la Brasa is typically served with fried potatoes, salad and various sauces (Peruvian mayonnaise, ketchup, olive sauce, chimichurri or peri-peri, and aji). The marinade itself is like a microcosm pf Peru’s multiculti culinary influences, incorporating not only citrus juice and garlic but also soy sauce, legacy of the Japanese and Chinese immigrants who first found work in the region building the railroads and farming in the late 1800s.

 

Ceviches – Common to all of the coastal regions of Central and South America, in Peru this citrus-marinated raw fish specialty approaches high art, garnished not only with onions and chiles but also ingredients such as coconut, purple yams and toasted corn.

 

Tiradito – Analogous to Japan’s sashimi, this specialty of raw sliced fish is dressed just before serving with citrus juice and other ingredients, such as onions, chiles, cilantro and other flavorings.

 

Causa – It stands to reason that the birthplace of the potato would have many potato specialties. The most well-known is the causa, a versatile dish of seasoned mashed potatoes layered like a cake with various fillings, from hard-boiled eggs to vegetables to tuna salad to shrimp and other ingredients.

 

Rocoto Relleno – Like the more well-known chiles Relleno, the round red or yellow rocoto chile is often served stuffed with a savory ground beef mixture.

 

Anticuchos – The Spanish brought beef and pork, as well as chicken, to Peru, and the Peruvians repaid the favor with anticuchos (grilled marinated beef on skewers). Although the dish traditionally features beef heart, any cut of meat can be used for this popular street food. The flavorful marinade typically includes vinegar, and spices such as cumin, garlic and aji peppers; the cooked skewer is often served with a boiled potato or a piece of bread.

 

Aji de Gallina – Starring Peru’s famous fruity, medium-hot aji Amarillo, this colorful, spicy chicken stew also includes sauteed onions and garlic ground walnuts, Parmesan cheese, milk, and olives, and is served with hardboiled eggs and boiled potatoes.

 

Lomo Saltado – Similar to a stir-fry, this easy-to-like specialty is made with flank steak or tenderloin, potatoes, onion and garlic, and a sauce that incorporates tomato, vinegar and soy.

 

Butifarra – The name of a Spanish sausage as well as the popular Peruvian sandwich that contains it, along with garlic- and chile-marinated roast pork, lettuce, mayonnaise and a tangy-sweet onion relish know as salsa criolla (Creole sauce), served on a French-style roll.

 

Pisco Sour – Who could forget this iconic and exotic cocktail, made with Pisco (a high-proof, grape-based white spirit), simple syrup, fresh lemon juice and egg white.

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Loyalty in the Digital Age

Nov 24, 2015

It’s one thing to attract new customers, but smart operators know it’s even more important to keep them. In addition to providing the basics of food, service, and ambiance—and doing it again the next day, and the day after—building loyalty through formal and informal recognition programs is key.

 

According to the 2015 COLLOQUY Loyalty Census, U.S. consumers are more invested in loyalty programs than ever, holding a total of 3.3 billion memberships spread among the retail, financial services, travel and various other economic sectors, or about 29 per household. The real statistic of interest, however, is the fact that users are only active in a dozen of them.

 

Most restaurants have some form of a loyalty program, from punch cards or membership cards, to iPad scan systems to vouchers. Restaurant loyalty program memberships rose 107% to 55 million in 2015, although that’s down from 171% growth in 2013.

 

Digital makes the difference, especially the mobile kind. The technology has allowed restaurants to build loyalty programs through different tiers, from traditional loyalty cards, to mobile apps and location-based services. This omni-channel approach allows brands to increase the amount of information they can collect about their guests, which in turn allows them to provide repeat customers with a more personalized experience.

 

Even the availability of digital serves to build loyalty among fans, even if there isn’t a rewards component.

 

Always at the forefront of just about any trend you’d want to examine, from game-changing new menu items to marketing, Taco Bell has been extremely aggressive about mobile, all of it designed around the current-generation premise that “ease is the new loyalty.” Last year, the Live Mas app began allowing users to customize, order and pay from their phones—an industry first—and has reportedly been downloaded almost 4 million times. In the process, the chain discovered that customers who use it tend to order about 20% more than those who order in person.  A gamified loyalty component  is planned for later this year, via an app update. There’s even a Taco Bell emoji. Now a new website, ta.co (“ta-dot-co”), expands that capability to desktop computers and tables; a publishing channel called The Feed features curated content about the brand. It’s all Taco Bell, all the time for the chain’s many loyal followers.

 

Not surprisingly, many quick-service and fast-casual chains are using apps to build followings, usually through ordering and payment capabilities. The new wrinkle, however, is integrating rewards and other bonuses. Panera’s app taps into the success of its longstanding rewards program. The My Starbucks program, which has more than 10 million members, is now linked to a mobile application that allows the user to pay in stores with their smartphone or a pre-loaded card. LYFE Kitchen’s new app tracks purchases and confers rewards.

 

But while digital marketing may have forever changed the mechanics of tracking guest behavior and managing loyalty programs (especially in multi-unit operations that target younger, wired-in diners), it’s crucial to remember that nothing will ever replace the personal, human touch.

 

This is especially true for independent and upscale restaurants, and even more so for established places where the competition of newer openings represent a particular draw for customers.

 

Case in point: The Angus Barn, in Raleigh, NC, which has been a paragon of hospitality—not to mention top-quality steaks—since it was opened in 1960 by Thad Eure Jr. and Charles Winston. Now under the direction of Thad’s daughter Van, the restaurant has kept up with the times and added event space, music in the lounge, a Chef’s Table and more contemporary menu items, but the core appreciation of customers has never changed. Regulars in the Wild Turkey Lounge have their names engraved on plaques above the bar, kids can come into the kitchen to help build their own ice cream desserts, and servers have business cards so that guests can ask for them by name. As Van puts it, “We’re in the business of making memories.” No wonder so many guests are also second-generation.

 

 

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Notable Seasonal Restaurant LTOs

Nov 22, 2015

We’ve all heard of popular LTOs (Limited Time Offerings) like the beloved Pumpkin Spice Latte from Starbucks or the McRib from McDonald’s, but what’s happening this holiday season? See below:

 

A Spin on Sweets

White chocolate peppermint: We’re used to seeing it in bark form, but at Yogurtland, it takes a cold turn. Even more indulgent? Try the Dunkin’ Donuts Caramel Cheesecake and Snickerdoodle Croissant donuts.

 

Redefined Classics

At Slater’s 50/50, you can get an early taste of Thanksgiving when you try their Thanksgiving Burger that’s made with a seasoned turkey patty, gravy, cranberry sauce and brioche dressing. At Denny’s, your breakfast can get a bit of the holiday treatment. Their “Build Your Own Holiday Slam” allows guests to choose any four items including pumpkin pancakes and gouda-apple chicken sausage.

 

Decadent Drinks

Eggnog is not the only boozy holiday drink you can enjoy this season. At Outback, you can enjoy their Gingerbread Martini—a creamy twist on a classic. Milkshake lovers rejoice because Chick-fil-A is offering their Peppermint Chocolate Chip Milkshake and Steak ‘n Shake introduces a new seasonal shake called Cookie Butter.

 

It’s great to explore the innovative menu LTOs that restaurants ideate, but when framed as “seasonal offerings,” instead of the QSR- and chain-focused LTO, restaurants and foodservice concepts of all kinds can participate. What will you offer?

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3 Simple Ways to Decorate your Restaurant for the Holidays

Nov 19, 2015

If you’ve caught yourself humming a holiday tune while strolling down the festively decorated aisle of your favorite store, you know the power of décor. Besides cookies, gifts and eggnog, nothing gets guests into the holiday spirit more than sprucing up your space. Wondering how?

 

Decorating your restaurant to fit the holidays needn’t mean kitschy, clichéd adornments like Santa inflatables and snow-in-a-can. No matter what kind of restaurant you have, there are many ways you can deck out your foodservice operation.

 

1) Lights: Perhaps the most versatile way to enhance the ambiance of a room, try wrapping holiday lights in an organized fashion around the hostess stand or a prominent pole or strung from the ceiling.

 

2) Centerpieces: Simple items like mini-pine trees or a bowl of glistening ornaments can do wonders. Check out Pinterest for more inspiration.

 

3) Wreaths: Wreaths are a classic and elegant way to decorate for the holidays. Whether you want a traditional look or maybe something more modern, there’s a wreath to fit your restaurant design.

 

Remember, as the Starbucks cup debacle has proven, the holidays do not mean red and green. A little white or some strategically placed pinecones can go a long way.

 

Looking for more inspiration? Take a look at these NYC Restaurants and Pop-Up Bars Decked Out for the Holidays.