Restaurant operators can lean into cost-effective ingredients that have broad appeal to customers. Here are some ingredients that can help restaurants combat the impending recession:

 

• Legumes: Legumes like lentils, chickpeas, and beans are nutritious and affordable, making them a cost-effective ingredient for restaurants. They are versatile and can be used in various dishes, such as salads, soups, and stews.
• Root vegetables: Root vegetables like potatoes, carrots, and onions are hearty and filling, making them a great addition to comfort foods. They are also cost-effective and have a long shelf life, which can help to reduce waste.
• Grains: Grains like rice, quinoa, and barley are excellent sources of protein and fiber, making them a popular choice for health-conscious consumers. They are also affordable and versatile, making them a great ingredient for a variety of dishes.

• Eggs: Eggs are an affordable source of protein and can be used in several dishes, from breakfast to dinner. They are also versatile and can be prepared in many ways, such as scrambled, poached, or baked.
• Chicken: Chicken is an affordable and versatile protein source popular with consumers. It can be used in a myriad of dishes, from sandwiches to salads to entrees.
• In-season produce: Using in-season produce can help restaurants save money on ingredients and reduce waste. It can also help to support local farmers and promote sustainable agriculture.
• Off-cuts and scraps: Using off-cuts and scraps can help to reduce waste and save money on ingredients. Restaurants can use these ingredients in soups, stews, or garnishes.
• Affordable seafood: Seafood like canned tuna, sardines, and mackerel are affordable options and can be elements of several dishes. They are also a good source of protein and omega-3 fatty acids.

 

By using these ingredients, restaurants can offer cost-effective and appealing menu options that can help to attract and retain customers during tough economic times.

 

Maximizing the price/value perception of restaurant guests can be achieved through the following methods:

 

• • Offer quality ingredients: Using high-quality ingredients can improve the perceived value of a dish. Guests are more likely to pay higher prices for dishes that use premium ingredients.
  • Portion control: Proper portion control is essential to ensure guests feel satisfied with their meals. Small portions can leave guests unsatisfied, while overly large portions can lead to waste.
  • Presentation: The visual appeal of a dish can significantly affect how guests perceive its value. Plates beautifully presented and garnished can make guests feel they are receiving a higher-value dish. Restaurants should create visually appealing dishes that look appetizing and are Instagram-worthy.
  • Menu descriptions: How a menu item is described can greatly affect how guests perceive its value. Descriptive language that highlights the quality of the ingredients and the skill required to prepare the dish can increase the perceived value of a dish.
  • Offer unique menu items: Restaurants can differentiate themselves from competitors by offering unique menu items not commonly found at other restaurants. This can help to increase the perceived value of a dish.
  • Offer promotions: Promotions like happy hours, discounts, and value meals can help to improve the perceived value of a restaurant’s offerings. Guests are more likely to feel that they are getting a good deal when a special offer is attached to a dish.

 

• Train staff to upsell: Restaurant staff can help increase a dish’s perceived value by upselling complementary items, such as wine or dessert.
• Customize dishes: Offering the ability to customize dishes can help guests feel they are receiving a personalized experience. This can help to improve the perceived value of the meal.
• Excellent service: Providing exceptional service can improve guests’ overall dining experience and increase the perceived value of a meal. Friendly, attentive service can make guests feel they are receiving a high-value experience.
• Create a comfortable ambiance: A restaurant’s ambiance can significantly impact a meal’s perceived value. Creating a relaxed and inviting atmosphere helps increase the perceived value of a meal.
• Provide transparent pricing: Being transparent about menu prices can help to build trust with customers and increase the perceived value of a meal.

 

By implementing these methods, restaurants can maximize their guests’ price/value perception, leading to increased customer satisfaction, loyalty, repeat business, and ultimately increased revenue.

 

In times of economic uncertainty, the restaurant industry is often hit hard. However, there are steps that restaurants can take to make themselves more resilient to economic downturns. There are several key strategies that restaurants can explore to be more recession-proof.

 

Diversify the menu

One of the most effective ways to be recession-proof is to diversify the menu. Offering a variety of menu items can attract a broader customer base and increase revenue. Restaurants can consider adding more affordable items to the menu, as well as offering healthy options and catering to dietary restrictions.

 

Use data to make informed decisions

Using data to make informed decisions can help restaurants to identify trends, track inventory, and optimize operations. By analyzing data from sources such as point-of-sale systems, inventory management software, and customer feedback, restaurants can make informed decisions about menu offerings, pricing, and operations.

 

Build a strong online presence

In today’s digital age, having a strong online presence is essential for any business. Restaurants can leverage social media, online reviews, and search engine optimization to build a strong online presence and attract new customers. Restaurants can also consider offering online ordering and delivery services to increase revenue.

 

Invest in employee training and development

Investing in employee training and development can help to improve customer service, increase employee satisfaction, and ultimately improve the bottom line. Restaurants can consider offering training programs, mentorship opportunities, and incentive programs to motivate and retain employees.

 

Focus on customer experience

Providing an exceptional customer experience is essential for the success of any restaurant. Restaurants can focus on creating a welcoming environment, providing personalized service, and responding promptly to customer feedback. By focusing on the customer experience, restaurants can build a loyal customer base and increase revenue.

 

Implement cost-cutting measures

Implementing cost-cutting measures can help restaurants to reduce expenses and increase profitability. Restaurants can consider measures such as reducing portion sizes, optimizing inventory levels, and negotiating better pricing with suppliers.

 

Monitor and adjust pricing strategies

Pricing is a critical component of any restaurant’s success. Restaurants can use data to monitor pricing strategies and make adjustments as needed. This can involve adjusting menu prices based on demand, offering discounts during slow periods, and leveraging promotional pricing to attract new customers.

 

Focus on Quality

Investing in high-quality ingredients and prioritizing quality in every aspect of your restaurant’s operations can help you build a loyal customer base willing to spend money on a great dining experience, even during tough times.

 

Embrace Technology

Technology can help restaurants operate more efficiently and reach a wider audience. From online ordering and delivery to digital marketing and social media, leveraging technology can help you reach new customers and reduce overhead costs.

 

Build a Strong Brand

Building a strong brand can help you stand out from the competition and create a loyal customer base willing to support your business during tough times. This involves creating a unique identity, investing in marketing and branding efforts, and creating a memorable dining experience.

 

Streamline Your Operations

Efficiency is critical to surviving a recession. Streamlining your operations, reducing waste, and cutting unnecessary costs can help you maintain profitability even when times are tough.

 

Develop a Loyalty Program

Developing a loyalty program can help you retain customers and incentivize repeat business. Offering discounts, promotions, and rewards for frequent diners can create a loyal customer base that is more likely to continue visiting your restaurant during tough economic times.

 

 

Explore Alternative Revenue Streams

Diversifying your revenue streams can help you weather economic downturns. This can involve exploring catering, hosting events, or selling branded merchandise or ingredients.

 

Manage Your Cash Flow

Proper cash flow management is essential to the survival of any business. By managing expenses, tracking revenue, and forecasting cash flow, you can ensure that your restaurant is financially stable and prepared for economic challenges.

 

In uncertain economic times, having a strategy to minimize the effects of a recession is essential for any business’s success, including restaurants. Doing so and being prepared can make your restaurant more resilient to economic downturns. While there’s no guaranteed way to be recession-proof, these strategies can help you weather tough times and come out stronger on the other side.

 

If you’ve gone out to eat recently, you’ve probably noticed it: paper straws, condiments only upon request, no coffee cup lids, and lots of other subtle changes while you’re dining. Slowly but surely, restaurants have been getting more eco-conscious over the years. State after state is jumping aboard the no-plastic train, reducing or eliminating single-use plastics in restaurants.

 

States with Single-Use Plastic Bans

 

According to the National Conference of State Legislators, eight states have laws eliminating single-use plastics, including California, Connecticut, Delaware, Hawaii, Maine, New York, Oregon, and Vermont. Some states even charge a fee for tax for the use of plastic bags.

In February of this year, New York Mayor, Eric Adams, signed the Intro 559-A, or the “skip the stuff” bill. The bill aims to limit the use of single-plastic items from restaurants by making them available only through a request from customers, says Waste Dive. Instead of automatically including paper napkins, plastic cutlery, and condiments for takeout or delivery, restaurants will help the environment while also helping their bottom line, says the article. The bill was passed in an effort not only to curb the waste in current landfills but for “future generations to come,” said Adams.

The bans don’t stop in New York. Effective May first of this year, the use of all food-service containers, cups, dishes, and cutlery from restaurants in Los Angeles County must be recyclable or compostable, says Spectrum News. The ordinance also includes using “multi-service” utensils and plates in full-service restaurants. The article says the ban will take effect for food trucks next year for farmer’s markets, catering companies, and temporary food facilities in November of next year.

 

Plastic Ban in Los Angeles

 

Los Angeles also has a ban on the sale and distribution of Styrofoam products starting in April of this year, reports Los Angeles Daily News. Styrofoam is not biodegradable or massively recyclable, and the main ingredient of Styrofoam, styrene, has also been classified as a possible human carcinogen, says the article. The ban applies to businesses with over 26 employees in 2023 but will apply to smaller businesses in 2024. This latest act is in response to a world drowning in plastic, said Council President Paul Krekorian, and includes an ordinance of zero waste policy at events and city facilities, says the article.

According to  Local News Matters, Cupertino, California, will also follow in Los Angeles’ footsteps, banning single-use plastics and replaced with fiber-based takeout items made of organic material. The article further shares that compostable takeout containers are included in the ban because the city’s organic waste program does not accept them. The ban took place in September of last year.

These types of laws are helping make our planet greener, and restaurants can have a direct hand in it. Whether you’ve gotten used to paper straws, compostable containers, or limited condiments, a more sustainable dining experience is here to stay and will keep growing. Viability and environmental consciousness are the way of the future for restaurants in America and, hopefully, businesses across the globe.

It would have been hard to predict how much restaurants would change over the last ten years, or even the last several years. Inflation, staff shortages, and illness have deeply affected everything from medical care to egg prices, and chances are if you’ve dined out, even semi-recently, you’ve noticed a big difference in your experience. Like everything since the outbreak of COVID, restaurants have had to pivot. It’s a new world for restaurants in 2023, but experts say there’s much to look forward to as well.

 

People Want to Go Out to Eat Again

 

Here’s some good news: People want to go out to eat again. They crave the dining experience and are willing to pay a little more for it. According to the National Restaurant Association, consumers are looking to spend their leisure time with family and friends, rather than cooking and cleaning up. Restaurant operators have reported business is getting close to “normal” (pre-pandemic customer numbers), and their focus this year is sustainable growth for the future, says the article. Many consumers seek bargains, loyalty programs, and discounts when dining out; however, Gen Z and Millennials  are the two groups most comfortable with their steady or growing finances this year. They are more likely to spend their money on entertainment and dining out, says QSRmagazine.

 

 

In addition to that good news, here’s some more: the foodservice industry has been predicted to earn $997 billion in sales in 2023, says the National Restaurant Association. This is due in part to the rising prices on menus. The downside, though, is that most restaurant owners and operators are worried about high food costs that affect menu prices and portion sizes, says QSR.

 

High Food Costs are Top of Mind

 

High food costs are at the forefront of restaurant owners’ minds, and, unfortunately, there are some things that will make 2023 challenging for the foodservice industry. Since the lockdown in 2020, finding food service workers has been difficult. Not much is going to change in that way, says Restaurant Dive. According to the National Restaurant Association food service jobs are estimated to grow by 500,000 jobs by the end of the year. The dip in help has left owners and operators zeroing in on efficiency, and is likely, in the near future, that staffing will never look like it did pre-pandemic, says Restaurant Dive. That means more restaurants are implementing digital ways to reduce “front-of-house costs,” says the article, with pay-at-table options or tableside ordering, and even hiring remote workers for drive-thrus and walk-up counters. It also means giving staff more prep work before shifts alleviating some pressure during service hours.

 

Like many industries after the COVID outbreak, restaurants are slowly climbing their way back up. 2023 predictions aren’t nearly as stark as previous years, but they still present some challenges. Creative ideas, trying new methods, and leaving room for trial and error, are the name of the game these days. Restaurants across the country are stepping up to the plate.

No people? No problem, at least in the fast food industry. The latest trend in technology among big chains like McDonald’s, Wingstop, and Chipotle is AI-powered virtual assistants. Such assistants can hold a conversation with customers, offer suggestions for customized orders, and fill in the labor gap for short-staffed locations. Are you ready to order? Because it just became faster, easier, and a whole bunch less human.

 

In 2023 the food industry staff shortage still rages on, post-pandemic, leaving restaurant owners and operators at a bit of a loss, staff-wise, says Business Insider. According to QSR Magazine., chains have chosen technology that supplies customers with both speed and accuracy and a lighter bottom line to stay ahead of demand. Although purchasing the technology might be costly, the long-term savings outweigh the initial costs, says the article, even costs associated with staff recruitment and maintenance.

 

AI Voice Bots in Restaurants: Who’s Using Them?

 

AI voice bots have been gaining in popularity, with pilot programs across the county. Wingstop, Domino’s, Blake’s Lotaburger, and Anthony’s Coal Fired Pizza are a few more chains using the bots, says FastCausal. According to the article, companies like ConverseNow’s voice bots take orders over the phone, speak both English and Spanish, and offer personalized recommendations. To make better use of non-bot staff, these AIs free up answering the phone, as well as training new hires for ordering. Bots are also good at upselling, with automatic and dynamic tactics, says the article. Another positive, because of the inherent consistency of an AI voice, customers will get an automated “smile,” even in the busiest or most inconvenient of times to make an order, says the Wall Street Journal.

 

According to the State of Restaurant Industry Report by the National Restaurant Association, 58% of restaurant owners will begin to use AI technology like conversation bots, making it more common in 2023, says Insider. ConverseNow is operational in 1,200 stores in 46 states so far, in both phone and drive-thru capacities, says FastCausal.

 

ConverseNow is one of several tech company on the rise. Restaurant management systems company, HungerRush, has now developed software for restaurants that detects frustration, confusion, or annoyance in customers’ voices while ordering. If detected, the bot sends the customer directly to the restaurant where they can be helped by human staff, says Wall Street Journal. Some customers will always prefer human interaction; however, restaurant owners are priming the public to become more and more self-sufficient when it comes to getting their food, first through voice bots, ordering online, and eventually having the entire process go digital, says Wall Street Journal.

 

The days of teenage cashier trainees and frazzled, overworked employees doing 19 tasks at once will soon be a thing of the past. Voice bots, robotic food-making arms, and loyalty programs via phones are the wave of the future. This year and moving forward, ready your digital tools to get food in a world where we are greeted, served, and checked out by artificial intelligence.

We’ve all heard of subscriptions; if you’re like most people, you subscribe to a few. There are streaming, workout, and even pet toy subscriptions… but have you heard of restaurant subscriptions?

Many restaurants now offer subscription services to keep their customers returning. It is a particular trend among chain restaurants like P.F. Chang’s and Panera Bread.

But restaurants want to ensure their customers think the subscriptions have value. So, operators need to tailor their subscriptions to the wants of their guests.

Regarding subscription services, customers want free food and special perks, delivery, and convenience

Free Food, Discounts, & Special Perks

Of course, the number one desire for customers is to receive more food for less. Many restaurants have seen success by offering exclusive discounts or freebies to their subscription members.

 

Panera Bread

Panera Bread offers an annual membership to its “Unlimited Sip Club.” The club allows subscribers to get free coffee every day. (Consider adding the cost/month as you did for PF Chang’s and others below)

Customers who subscribe to the subscription visit the chain eight times more monthly than regular customers.

According to Panera’s Chief Brand and Concept Officer, a quarter of all transactions now come from “Unlimited Sip Club” members.

 

P.F. Chang’s

P.F. Chang’s also offers a membership that is $6.99 a month. Members get special perks, like points for every dollar spent that they can exchange for free food.

The chain asked its customers what they wanted from a subscription service, and they stated that they wanted to earn points faster. Today, loyalty members get 10 points for every $1 they spend, and platinum members get 15 points for every $1. They can redeem 2,000 points for $15 to spend at the restaurant.

P.F. Chang’s members also receive priority on the restaurant’s waitlist.

Delivery

Even with the pandemic winding down, many customers prefer to stay at home. Restaurants that offer delivery to do better than restaurants that don’t.

In addition to receiving free drinks, Panera Bread subscribers get free delivery when ordering online.

Likewise, P.F. Chang members receive unlimited free delivery with their subscriptions.

Convenience

Sweetgreen is a health-focused chain based in Los Angeles. They have over 180 locations, and last year, they launched their “Sweetgreen” subscription program.

Loyalty members pay $10 monthly and receive a $3 credit per daily purchase.

With the number of locations this chain has, it’s easier than ever for loyalty members to stop by for a meal. Plus, healthy food is expensive. Receiving $3 a day towards a healthy meal can go a long way for someone trying to change their eating habits.

Gravitas is a Michelin-star restaurant in Washington. They offer customers a three-course takeout meal for two people for $130 a month. This offering is ideal for customers interested in enjoying premium cuisine in the comfort of their homes.

Conclusion

Rocket Money, a personal finance app, says that the average American had 4.2 subscriptions in 2019. In 2022, that number was up to 6.7. People are turning toward subscriptions more and more for added convenience.

More companies will likely turn to restaurant subscriptions to appeal to and retain their customers. But, if customers are going to pay for subscriptions, they want more convenience, better delivery, and more free food.

 

The restaurant industry is constantly evolving, and we’ll likely see new technologies emerge that will change how restaurants operate and serve customers. Here are some potential technologies that we might see in the coming in the future:

1. Robotics and Automation: We may see more restaurants adopt robots and automation to perform cooking, cleaning, and serving tasks. This can help reduce labor costs and increase efficiency.
2. Virtual and Augmented Reality: Virtual and augmented reality technologies can help restaurants create immersive dining experiences for customers. For example, customers can take virtual tours of a restaurant’s kitchen or view a 3D rendering of a menu item before ordering.
3. AI-powered Personalization: Artificial intelligence can create personalized dining experiences based on customer preferences and previous orders. This can help restaurants improve customer loyalty and increase sales.
4. Contactless Ordering and Payment: With the ongoing COVID-19 pandemic, contactless ordering and payment methods have become increasingly popular. In 2023, we may see more restaurants adopt technologies such as QR codes, mobile ordering, and mobile payment options.
5. Internet of Things (IoT) Devices: IoT devices can help restaurants automate inventory management, food safety monitoring, and equipment maintenance. This can help reduce costs and improve efficiency.
6. Voice-activated Assistants: Voice-activated assistants such as Alexa and Google Assistant can take orders and answer customer questions. This can help reduce labor costs and improve customer service.
7. Blockchain-based Supply Chain Management: Blockchain technology can be used to create a transparent and secure supply chain, allowing restaurants to track the origin of their ingredients and ensure food safety.

 

 

 

 

The restaurant industry is poised for continued technological innovation in 2023 and beyond. Restaurants that adopt these new technologies will be better positioned to compete in a rapidly evolving marketplace and provide superior customer experiences.

Cell-cultivated meat, also known as cultured or lab-grown meat, is produced using cell culture techniques rather than by raising and slaughtering animals. The process involves taking a small sample of muscle tissue from an animal and isolating muscle stem cells, which are then placed in a culture medium to grow and differentiate into muscle tissue. The resulting meat can be harvested and processed into various meat products, such as burgers, sausages, and steaks.

 

Cell-cultivated meat has the potential to be a more sustainable and ethical alternative to traditional animal farming, as it requires fewer resources and eliminates the need for animal slaughter. It also has the potential to reduce the environmental impact of meat production, as it generates fewer greenhouse gas emissions and uses less water and land.

 

Although cell-cultivated meat is still in the early stages of development, several companies are working to bring it to market in the near future. However, regulatory and public acceptance challenges must be addressed before cell-cultivated meat becomes widely available.

 

The technology behind cell-cultivated meat is still relatively new and expensive, but there is growing interest and investment in the field. Some companies have already produced small quantities of cell-cultivated meat and are working on scaling up production to make it more widely available.

 

We may start seeing cell-cultivated meat in restaurants as more companies invest in and develop this technology. However, cell-cultivated meat may take some time to become widely available and affordable. The technology is still in its early stages, and the production process is expensive.

 

Several companies are currently working to scale up production and reduce costs, which could make cell-cultivated meat more accessible to restaurants and consumers in the coming years.

 

Additionally, some countries have already begun to explore regulatory frameworks for cell-cultivated meat, which could help pave the way for its commercialization.

 

The acceptance and adoption of cell-cultivated meat by restaurants and consumers will likely depend on various factors, including the final product’s taste, texture, price, and broader social and cultural attitudes toward meat consumption and food technology.

While the concept of a four-day workweek has been gaining popularity in recent years, its adoption in the restaurant industry has been relatively limited.

One reason for this is the nature of the restaurant business, which often requires employees to work long hours on weekends and holidays to accommodate customer demand. The demanding schedule makes implementing a consistent four-day workweek schedule challenging without compromising operational efficiency.

However, some restaurants have successfully implemented a four-day workweek or experimented with reduced hours. For instance, some restaurants have shifted to shorter work shifts or staggered schedules to give employees more time off without disrupting operations.

In addition, some restaurant chains have piloted four-day workweeks for their corporate office staff or implemented flexible schedules and remote work options. While these initiatives may not directly affect restaurant employees, they demonstrate a willingness to explore alternative work arrangements and may pave the way for more widespread adoption in the future.

 

Here are some of the potential benefits and challenges to consider if exploring the idea of a four-day workweek:

Benefits:

1. Improved work-life balance: Working fewer days per week could allow employees more time for personal activities, such as spending time with family and friends or pursuing hobbies.
2. Increased job satisfaction: A four-day workweek could lead to greater job satisfaction among employees, who may feel less stressed and more fulfilled by their work.
3. Better recruitment and retention: Offering a four-day workweek could make restaurant jobs more attractive to potential employees and improve retention rates among current staff.
4. Reduced labor costs: Implementing a four-day workweek could potentially reduce labor costs for restaurants by cutting down on overtime pay and reducing the need for additional staff.

Challenges:

1. Operational challenges: Restaurants may face operational challenges in implementing a four-day workweek, such as scheduling and staffing issues. They may need to adjust their staffing models to ensure enough employees work each day to meet demand.
2. Customer demand: Restaurants may also need to consider how a four-day workweek could impact customer demand. They may need to adjust their operating hours or other business aspects to accommodate the new schedule.
3. Financial considerations: Restaurants may need to consider the economic impact of a four-day workweek, including the cost of hiring additional staff to cover the extra day off.
4. Reduced productivity: There is some concern that a shorter workweek could lead to reduced productivity among employees, as they may need to adjust to a new schedule and work longer hours on their working days.

 

While four-day workweeks are yet to be commonplace in the restaurant industry, they are being explored and implemented by some forward-thinking restaurants and chains. As more business experiment with alternative work arrangements and prioritize work-life balance, it’s possible that we may see more widespread adoption of four-day workweeks in the restaurant industry in the coming years.