You’ve heard the buzz, especially if you’re in California. Fast food workers have received a hike to their minimum wage. Let’s review the new law is and how it’s affecting restaurants.

 

AB1228, a new law that went into effect earlier this month, raised the minimum wage for fast-food workers in California to $20 per hour, to enhance worker protections. It defines fast-food establishments as chain restaurants with at least 60 nationwide locations, mainly selling ready-to-eat food and beverages. This law replaced AB257, which passed in 2022, with similar goals. While workers generally welcomed the wage increase, franchise owners voiced concerns about increased operational costs and potential menu price hikes. Some businesses reportedly laid off employees in anticipation of the wage hike. The Service Employees International Union supported the increase, emphasizing fair wages without job cuts. Controversy arose when reports alleged Panera was exempt due to its bakery classification, possibly influenced by Gov. Newsom’s ties to a Panera owner. However, Newsom’s representative denied the exemption, and the owner pledged wage increases. California clarified exemptions in FAQs, including standalone bakeries and restaurants in certain locations. The state is home to over 500,000 fast-food workers, with an average hourly wage of $16.21 in 2022.

 

April Fools?

The newly enacted $20 minimum wage in California has had repercussions for small businesses like Fosters Freeze in Lemoore. Monica Navarro, the former assistant general manager, expressed shock restaurant’s sudden closure, with workers learning upon arrival for their shift. Owner Loren Wright cited the inability to absorb the wage hike as the reason for closing, despite exemptions for certain businesses. Navarro recounted how employees discovered about the closure just before starting their shifts, initially mistaking it for an April Fool’s joke. Despite potential exemptions, Wright attributed the closure to the minimum wage increase.

 

Price Increases and Beyond

Reports indicate that prices are rising at some chains. The New York Post noted increased menu prices at Burger King and In-N-Out Burger, with items like meals and sodas seeing price hikes. Other major chains like Wendy’s, Chick-fil-A, and McDonald’s reportedly haven’t changed their menus yet. Major chains like Starbucks, Jack in the Box, Shake Shack, and Chipotle also plan to pass on increased labor costs to customers.

 

Franchisees are scrambling to offset the impact on their profits. While supporters argue it benefits workers, franchise owners fear financial strain. Many, like Michaela Mendelsohn of El Pollo Loco, are already losing money and considering changes. Some, such as McDonald’s and Chipotle, plan price hikes, but franchisees fear customer backlash. To absorb costs, some are considering strategies that include:

 

Layoffs: Some franchisees, like Pizza Hut and Round Table Pizza, are laying off workers, leading to job losses.

 

Reduced Hours and Hiring: Others opt to cut employee hours and halt hiring to save costs, which impacts workers like Marcus Walberg and Brian Hom.

 

Cutting Staff Benefits: Franchisees like Walberg eliminate benefits like paid time off due to cost constraints.

 

Order Kiosks: Automation like order kiosks and AI-operated drive-thrus are being introduced by franchisees like Mendelsohn to reduce labor expenses.

 

Operational Cuts: Measures such as reducing energy consumption and postponing investments, as mentioned by Kris Stuebner and Scott Rodrick, are being considered.

 

Overall, the new wage has franchisees reevaluating their businesses, with some even contemplating selling or closing due to dwindling profit margins, as noted by Alex Johnson.

 

 

 

Sources:

Foxbusiness.com
patch.com
La.eater.com
Businessinsider.com
openai.com

 

We had the exclusive opportunity to attend the Bar & Restaurant Expo, the highly anticipated yearly B2B event for bar and restaurant owners.  The 2024 venue in Las Vegas was a stunning backdrop, offering a unique setting to immerse ourselves in the excitement of new trends, products and technologies that are shaping the hospitality industry today.

 

Elevating the Drink Experience

At the expo, we witnessed live demonstrations of cutting-edge technology designed to elevate the bar experience. The Breville Commercial “The Smoke Bubble™ Kit,” was a standout, allowing bartenders to create food-safe bubbles that burst with natural wood smoke.  This unique method of garnishing cocktails with aromas like hickory, applewood and cherrywood is sure to intrigue your guests. Another fascinating technology we encountered was the Roxi-Ice dry ice on-demand machine, a fun and functional addition to any bar.

Robots

We’d be remiss if we didn’t talk about robots. Yes, robots that are almost reminiscent of the Jetsons’ loyal servant, Rosie. You might have had to do a double-take if you saw Plato, United Robotics Group’s “Cobiot” rolling around the floor show! This robot is meant to support your restaurant staff by serving your guests’ food directly, dynamically adapting to changing environments. There was even a Chicken Fried Rice robot from RobotLAB that could create this complex dish on its own with built-in compartments that store, measure, and dispense cooking oil and seasonings. All the operator needs to do is toss in egg, chicken, veggies, and rice with a touch screen to modify and start the cooking.

 

Beyond the restaurant, robots like these have many applications for room service, beach bars, beach clubs, bowling alleys, and even health care facilities.

 

Check out more photos and videos from the expo:

 

In the fast-paced dining world, full-service restaurants emerge as champions in the ongoing battle to satisfy and delight customers. A recent study highlighted in FSR Magazine sheds light on this remarkable trend, revealing that despite the challenges posed by changing consumer preferences and technological advancements, full-service establishments are excelling in delivering exceptional dining experiences that leave a lasting impression on patrons.

 

Understanding the Landscape

The restaurant industry is dynamic and competitive, with establishments constantly vying to capture the hearts and palates of discerning diners. Amidst this landscape, full-service restaurants have carved out a niche by prioritizing personalized service, culinary excellence, and immersive dining experiences.

 

The Power of Personalization

One of the defining characteristics of full-service restaurants is their unwavering commitment to providing a personalized dining experience. From the moment guests step through the door, they are greeted with warm hospitality and attentive service that sets the stage for an unforgettable meal. Whether accommodating dietary preferences, offering tailored recommendations, or anticipating guests’ needs before they arise, full-service establishments excel in creating memorable moments that keep patrons coming back for more.

 

Embracing Innovation

While tradition and heritage are integral to the appeal of full-service restaurants, these establishments are not afraid to embrace innovation and technological advancements. From digital reservation systems to interactive menu displays, technology is seamlessly integrated into the dining experience to enhance efficiency, convenience, and engagement. However, what sets full-service restaurants apart is their ability to strike the perfect balance between technological innovation and human interaction, ensuring that traditional hospitality’s warmth and personal touch are never compromised.

 

Catering to Diverse Tastes

Full-service restaurants understand that today’s diners have diverse tastes and preferences and are committed to catering to this continuously changing landscape of culinary desires. Whether it’s offering a wide array of menu options to accommodate various dietary restrictions and preferences, embracing sustainable sourcing practices, or incorporating global flavors and culinary influences, these establishments are adept at satisfying the eclectic palates of their patrons.

Looking Ahead

As we look to the future, it is evident that full-service restaurants will continue to play a pivotal role in shaping the culinary landscape. Their unwavering dedication to excellence, commitment to innovation, and steadfast focus on customer satisfaction set them apart as true leaders in the industry. Whether celebrating milestones, hosting special occasions, or simply enjoying a leisurely meal with loved ones, patrons can always count on full-service restaurants to deliver an exceptional dining experience that leaves a lasting impression.

 

The triumph of full-service restaurants in the customer satisfaction battle is a testament to their resilience, adaptability, and unwavering commitment to excellence. As diners seek out memorable dining experiences beyond just a meal, full-service establishments stand ready to exceed their expectations and create truly unforgettable moments.

 

The restaurant industry faces a unique challenge: rising costs and a shrinking market. But instead of throwing in the towel, innovative restaurateurs are finding creative solutions. One key strategy gaining traction is shrinking their physical footprint while focusing on maximizing the dining experience.

As highlighted in a recent article by Nation’s Restaurant News (NRN), this approach is a departure from the traditional model of ever-expanding square footage. Restaurateurs are rethinking their spatial needs and opting for smaller spaces, prioritizing efficiency and a more intimate dining experience.

 

Here are some of the benefits of this approach:

• Reduced Overhead Costs: Smaller spaces mean lower rent and utility bills. This allows restaurants to invest more in high-quality ingredients, staff training, and technology.
• Enhanced Guest Experience: A smaller footprint allows for closer interaction between staff and guests, fostering a more personal and memorable dining experience.
• Increased Operational Efficiency: A streamlined layout can optimize workflow and improve service times.
• Greater Flexibility: Smaller spaces are often easier and cheaper to adapt to changing trends and customer preferences.

Example of Success:

The NRN article cites several examples of restaurants successfully implementing this strategy. One example is Chicago’s Tzuco, a Michelin-starred establishment known for its innovative tasting menus. Tzuco downsized its space in 2019, allowing it to focus on a more intimate dining experience with only 26 seats.

 

Beyond Square Feet:

While shrinking the physical space is crucial, it’s part of the story. Many restaurants also embrace technology and off-premise dining options to enhance the customer experience further. This could include online ordering, delivery services, and even prepared meal kits.

 

The Future of Restaurants?

The trend of downsizing physical space while focusing on experience is gaining momentum. As the restaurant industry continues to adapt, it will be interesting to see how this approach shapes the future of dining.

 

What do you think? Would you prefer a more intimate dining experience in a smaller space, or do you value the spaciousness of traditional restaurants?

“Full-service dining” has been a cornerstone of the restaurant industry for decades. Think white tablecloths, attentive servers, and a leisurely-paced experience. But times are changing, and consumer preferences are evolving. Enter “NextGen Casual,” a trend redefining full-service dining for the modern guest.

 

Recently, FSR Magazine explored this concept, highlighting how restaurants are blurring the lines between traditional full-service and casual dining. Here are some key aspects of NextGen Casual:

• Elevated Comfort Food: NextGen Casual isn’t about haute cuisine or Michelin stars. It’s about familiar dishes prepared with high-quality ingredients and a focus on flavor. Think gourmet burgers or elevated takes on classic comfort food.
• Technology Integration: Gone are the days of waiting to flag down a server. NextGen Casual embraces technology to enhance the experience. This could include online reservations, digital menus, or tableside tablets for ordering and payment.
• Upscale Ambiance with a Relaxed Vibe: NextGen Casual restaurants offer a stylish and inviting atmosphere without the stuffiness of traditional fine dining. Think exposed brick walls, modern furniture, and overall comfort and casual elegance.
• Emphasis on Hospitality: While technology plays a role, human interaction remains essential. NextGen Casual prioritizes friendly, knowledgeable staff who can answer questions, provide recommendations, and create a welcoming environment.

 

Why NextGen Casual is Here to Stay

This approach caters to a generation of diners who crave a balance between convenience, quality, and a comfortable atmosphere. They appreciate good food and service but also value their time and prefer a more relaxed dining experience.

 

The Benefits for Restaurants

NextGen Casual also offers several advantages for restaurants. The streamlined service model can reduce labor costs, while technology integration can improve efficiency and order accuracy. Focusing on high-quality ingredients and a comfortable ambiance can also help restaurants attract and retain customers.

 

The Future of Dining

NextGen Casual is more than just a fad. It represents a shift in consumer preferences and a strategic adaptation by restaurants. As the industry continues to change, grow and adapt, we expect to see even more innovative approaches to full-service dining catering to modern guests.

 

As we step into National Noodle Month, we’re not just celebrating the delightful world of noodles; we’re also diving into the latest culinary trends that are making waves in kitchens worldwide. Noodles, with their versatility and ability to harmonize with a myriad of flavors and ingredients, serve as the perfect canvas for culinary experimentation. This month, we’re excited to showcase a selection of noodle dishes that pay homage to tradition and embrace the contemporary palate by incorporating trendy ingredients that capture the imagination of food enthusiasts everywhere.

 

Asian ingredients and flavors were noted to be popular this year in multiple predictions. Specific food items like mushrooms and veggie-forward dishes have been highlighted as trends for this year. We hope the following noodle dishes will inspire you to whip up something new for your restaurant menu.

 

Mushroom Mania

 

Korean Japchae:

Japchae is a traditional Korean dish made with glass noodles (made from sweet potato starch) stir-fried with vegetables and meat. In Mushroom Japchae, mushrooms such as shiitake, oyster, or button mushrooms are added to the stir-fry for extra flavor and texture.

 

Russian Mushroom Stroganoff:

Stroganoff is a Russian dish typically made with sautéed beef strips served in a sour cream sauce. Mushroom Stroganoff is a vegetarian version that uses mushrooms as the star ingredient.  It is cooked in a rich, creamy sauce and served with egg noodles.

 

Asian Inspired

 

Black Sesame Cold Noodle:

Black sesame cold noodle is a refreshing dish of chilled noodles, typically soba or udon, tossed in a savory sauce made with black sesame paste, soy sauce, and rice vinegar. It’s garnished with sliced cucumbers, sesame seeds, and sometimes shredded nori, offering a delightful combination of nutty flavors and textures.

 

Vietnamese Pho:

A fragrant noodle soup consisting of rice noodles served in a beef or chicken broth flavored with spices like cinnamon, star anise, and cloves. Pho is typically topped with thinly sliced beef or chicken, bean sprouts, Thai basil, lime wedges, and sliced chili peppers.

 

Veggie-Centric

 

Italian Pasta Primavera:

Pasta Primavera is a classic Italian dish that translates to “spring pasta.” It features pasta, spaghetti, or penne, tossed with seasonal vegetables like bell peppers, cherry tomatoes, zucchini, and asparagus. The dish is often flavored with garlic, olive oil, fresh herbs like basil or parsley, and sometimes a sprinkle of Parmesan cheese.

 

Indian Vegetable Hakka Noodles:

Hakka Noodles is a popular Indo-Chinese dish featuring stir-fried noodles cooked with various vegetables, spices, and sauces. Vegetable Hakka Noodles typically include cabbage, bell peppers, carrots, onions, and sometimes green peas, seasoned with soy sauce, ginger, garlic, and chili sauce for a flavorful kick.

 

Happy National Noodle Month!

 

Sources:

thomasnet.com
juleeho.com
openai.com

Consumer tastes and preferences are constantly shifting, so staying relevant and attracting customers requires a dynamic approach to menu development. This involves continuously innovating and introducing new menu items. Sometimes, these new menu offerings become go-to fan favorites, while others develop into seasonal, limited-time offerings, or simply disappear forever. Let’s take a look at the latest new offerings from popular chains.

 

Chicken is In

Burger King is launching two spicy chicken menu items for spring and summer. The new offerings include the Fiery Buffalo Royal Crispy Wrap and the returning Fiery Nuggets. These items feature crispy white meat chicken coated in a spicy Buffalo glaze, complemented by a creamy Buffalo sauce, tomato, and lettuce in a tortilla wrap. The items will be available nationwide starting March 7 for approximately $2.99 each. Burger King’s Chief Marketing Officer, Pat O’Toole, expressed excitement about the new flavor addition, emphasizing its popularity and the decision to make wraps a permanent menu item. This announcement coincides with Burger King’s response to Wendy’s proposed “surge pricing,” with Burger King offering free Whopper burgers and asserting their commitment to fair pricing.

Taco Bell supports emerging culinary talent through TBX, a program spotlighting three talented chefs who will collaborate on reinventing the iconic Crunchwrap Supreme. The Cantina Chicken Menu introduces flavorful oven-roasted chicken seasoned with Mexican spices and features five new items, including the Cantina Chicken Burrito and Cantina Chicken Quesadilla. Furthermore, Taco Bell is rolling out many bold new flavors in 2024, including Cheesy Chicken Crispanadas and Crispy Chicken Nuggets. Iconic collaborations with brands like Cheez-It® and Tajín® promise to delight fans with surprising menu items packed with sweet and spicy flavors.

 

Sandwiches and More

Panera is gearing up for a significant menu innovation, introducing nine new items, including the much-anticipated bacon mac & cheese pasta. The bakery chain is also adding four sandwiches and four salads to its upcoming update. Moreover, 12 current items, such as the Bravo Club Sandwich and Chipotle Chicken Avocado Melt, will receive enhanced recipes as part of “Panera’s New Era.” These modifications aim to infuse “more delicious flavors” into the menu in what Panera describes as its “biggest menu transformation” yet. The new entrees will feature guest-inspired flavors, new salad dressings, meats, cheeses, spice blends, and hearty grains. The revamped menu is set to launch on April 4, with MyPanera rewards members receiving exclusive sneak peeks ahead of the official release.

In January, Subway introduced a major menu update with the launch of Sidekicks, a collection of three new footlong snacks. These snacks, created in collaboration with Cinnabon and Auntie Anne’s, offer a twist on classic treats and provide the perfect complement to Subway’s signature footlong sandwiches or as standalone snacks. The lineup includes the Cinnabon Footlong Churro, Auntie Anne’s Footlong Pretzel, and the return of the Footlong Cookie. Douglas Fry, President of Subway North America, highlighted the significance of Sidekicks in enhancing the Subway experience and teased further culinary innovation for 2024. This initiative is part of Subway’s ongoing transformation journey, which began in 2021 with ingredient pantry overhauls and continues to prioritize enhancing the guest experience. Dave Mikita, President of International and Retail Channels at Focus Brands, expressed excitement about the partnership with Subway and the opportunity to delight guests with these beloved snacks in new and craveable ways.

 

 

Sources:

Parade.com
Prnewswire.com
Usatoday.com
Subway.com
Openai.com

Attending restaurant and foodservice industry shows is crucial for professionals seeking to stay ahead in a continuously evolving arena. These events provide invaluable opportunities for networking, discovering the latest trends, and gaining insights into innovative technologies and practices. In 2024, several notable shows promise to showcase cutting-edge advancements and facilitate meaningful connections within the industry. From unveiling culinary innovations to exploring sustainable practices, these events offer a platform for professionals to enhance their expertise and drive success in the dynamic world of foodservice.

 

Bar & Restaurant Expo 

Join over 13,000 industry professionals at the Bar & Restaurant Expo, a comprehensive event  to unveil strategies and innovations driving financial success in the dynamic food and beverage landscape. Tailored to meet the unique challenges of the hospitality industry, this expo offers practical solutions and innovative ideas for unlocking untapped revenue streams. From single-unit operators to national chains and hospitality groups, attendees will gain valuable insights from experts and successful entrepreneurs, participate in exclusive conference sessions, discover cutting-edge solutions, sample trends from 500 suppliers, and acquire actionable knowledge to enhance their bottom line.

 

March 18-20, 2024, Las Vegas, NV

Show website

 

International Pizza Expo 

Experience the ultimate pizza extravaganza at the International Pizza Expo, celebrating its 40th year of delivering fresh content, thrilling competitions, and exciting events. As the largest event in the pizza industry, thousands of professionals gather in Las Vegas, Nevada, for three days dedicated to everything pizza. Attendees can expect a global showcase of suppliers, networking opportunities, educational sessions led by industry experts, and national competitions, making this event truly unparalleled in the world of pizza.

 

March 19-21, 2024, Las Vegas, NV

Show website

 

Summer Fancy Food Show

Celebrating its 68th year, the Summer Fancy Food Show in New York City has evolved alongside American food culture since its inception in the post-war era of the 1950s. Initially focused on European imports, the show has expanded to showcase diverse of specialty foods, reflecting evolving consumer preferences and behaviors. Hosted by the Specialty Food Association, this event brings together thousands of producers and tens of thousands of attendees annually, serving as a vibrant gathering to celebrate flavor, innovation, and community within the specialty food industry.

 

June 23-25, 2024, New York City, NY

Show website

 

Western Food Expo 

Join thousands of industry professionals from various sectors at the Western Foodservice & Hospitality Expo, from August 25-27, 2024, at the Los Angeles Convention Center. This premier event offers access to the latest menu trends, cutting-edge design and decor, valuable business education sessions, and a diverse range of leading vendors and suppliers. Attendees can participate in live culinary demonstrations, awards ceremonies, roundtable discussions, and program tracks covering Hot Topics, Bar & Beverage, Marketing & Social Media, and Operational Excellence. This event is exclusively for industry professionals aged 18 and above; no children or strollers are permitted on the show floor.

August 25-27, 2024, Los Angeles, CA

Show website

 

 

Sources:

Westernfoodexpo.com
pizzaexpo.pizzatoday.com
barandrestaurantexpo.com
Openai.com

 

Forget flashy gimmicks and picture-perfect plating: Gen Z demands something different from their dining experiences. They crave authenticity, and restaurants that can deliver are winning their hearts (and stomachs). But what exactly does “authentic” mean to this generation, and how can restaurants adapt to their evolving preferences?

 

Transparency is Key: Gen Z is hyper-aware of the world around them, and they expect the same from their restaurants. They want to know where their food comes from, how it’s prepared, and the values behind the business. This means clear labeling, responsible sourcing, and ethical practices are not just nice-to-haves but dealbreakers.

 

Beyond the Plate: Authenticity goes beyond just the food itself. Gen Z values experiences that are genuine and inclusive. They want restaurants that celebrate cultural diversity, embrace individuality, and create a welcoming atmosphere for everyone. This could mean anything from diverse menus and staff to community events and social initiatives.

 

Flavor with a Cause: Sustainability and social responsibility are top of mind for Gen Z. They’re drawn to restaurants that are committed to minimizing their environmental impact and supporting local communities. This could involve using eco-friendly packaging, sourcing from local farms, or partnering with charities.

 

 

Tech-Savvy Diners: Gen Z is the most digitally connected generation yet. They expect restaurants to be on top of their digital game, with seamless online ordering, engaging social media presence, and loyalty programs that cater to their preferences.

 

So, how can restaurants adapt to these evolving demands? Here are some tips:

• Embrace transparency: Share your story! Highlight your sourcing practices, sustainability efforts, and community involvement.
• Celebrate diversity: Offer a menu that reflects different cultures and backgrounds and create an inclusive environment for all.
• Make a difference: Partner with local causes, use eco-friendly practices and show Gen Z you care about the same things they do.
• Get digital: Invest in a user-friendly online ordering system, engage with your audience on social media, and offer tech-savvy loyalty programs.

By embracing authenticity in all its forms, restaurants can tap into the powerful Gen Z market and build lasting relationships with a generation that values truth, experience, and making a difference. Remember, it’s not just about the food; it’s about creating a meaningful connection with your customers.

 

To navigate the exciting developments and emerging trends in the foodservice industry, we focus on the highly anticipated “2024 State of the Restaurant Industry Report” from the esteemed National Restaurant Association. This comprehensive report promises to unveil the latest insights, challenges, and innovations shaping the dynamic world of restaurants in the year ahead. Join us as we delve into the culinary world, exploring the evolving tastes, preferences, and strategies that will define the foodservice landscape in 2024.

 

Growth Will Continue

In 2024, the foodservice industry is poised for unprecedented growth, with projected sales soaring to a record-breaking $1.1 trillion, according to the National Restaurant Association (NRA). This optimistic forecast is backed by insights from the NRA’s annual “State of the Restaurant Industry” report, which draws from surveys of operators and consumers, and analyses from NRA economists. The restaurant and foodservice industry is on track for substantial growth, expected to add 200,000 jobs, reaching a total employment of 15.7 million people.

 

Operators demonstrate remarkable resilience despite rising food costs, labor expenses, and lingering pandemic-induced debts. While 45% of operators anticipate consistent sales compared to 2023 figures, 33% expect an increase. However, concerns about profitability persist, with only a quarter of operators predicting higher profits. Staffing shortages remain a significant issue, with over 40% reporting inadequate employees to meet demand, prompting a greater reliance on technology for labor solutions.

Operators increasingly turn to technology to address challenges such as labor reduction, cost-cutting, and business enhancement, integrating tech solutions across various operations. However, consumers still value human hospitality in their dining experiences despite the reliance on technology.

 

Key findings from the “2024 State of the Restaurant Industry Report” highlight the following:

 

• Intensifying competition, as noted by 45% of operators.
• Rising costs, with labor and food costs being significant concerns for operators.
• Consumer cautiousness regarding spending, with an emphasis on value propositions.
• Strong consumer affinity for restaurants, driven by the enjoyment of unique flavor experiences.
• Off-premises dining remains a crucial trend for operators, with over half of consumers, especially 67% of millennials and 63% of Gen Z, considering ordering takeout from restaurants an essential aspect of their lifestyle.

The report, compiled by the National Restaurant Association, serves as the authoritative source for industry projections and trends. It analyzes economic conditions, operational dynamics, workforce trends, and culinary preferences to provide insights into sales forecasts and market trends for the year ahead. Despite ongoing challenges, the industry remains dynamic and resilient, poised for continued innovation to meet evolving consumer demands.

 

Sources:

https://restaurant.org/research-and-media/research/research-reports/state-of-the-industry/

https://www.foodbusinessnews.net/articles/25507-restaurant-sales-forecast-to-exceed-11-trillion-in-2024

openai.com