The Restaurant Group Blog

Restaurant Trends – Third-Party Delivery Expands among Restaurants

Restaurant Trends - Third-Party Delivery

As Third-Party Delivery Expands among Restaurants, Customer Base Broadens

 

Move over Domino’s, there’s a whole lot of restaurants doing delivery these days. 

A recent Los Angeles Times article about an NPD Group study reports an explosion of delivery by restaurants through third-party aggregators such as UberEats and GrubHub. In fact, the industry has seen a 20% increase over the last five years, according to Warren Solochek, NPD’s senior vice president of industry relations. NPD Group is a market research firm that recently published the study which monitored trends in food delivery between 2012 and 2017.

From the local deli to the big McDonald’s, why are so many jumping on the delivery bandwagon?

Looking at the study, Solochek believes more people are staying home, comfortable on the couch, streaming content all night long. Fewer people seem to want to bother with even fast-food drive-thrus, and restaurants are feeling it. “Restaurants have had to do something to get people to continue to use their product,” Solochek says.

Do the commissions to the third-parties pay for themselves?

Hard to say, yet, but the customer base broadens as people try restaurants they wouldn’t otherwise know about, much less drive out of their way to try. “If a restaurant isn’t in your neighborhood, you may not venture into that restaurant, so with delivery, we’re able to expand a store’s customer base,” said Jessica Lachs, of DoorDash.

Delivery is probably here to stay.

Kate Rogers reports for CNBC in “Postmates generates $1.2 billion since 2017, as on-demand economy heats up,” that this isn’t a trend, and experts like R.J. Hottovy, senior restaurant and retail analyst at Morningstar, believe it is here to stay, especially in urban markets. “I think where delivery works is really a byproduct of the market itself, how densely populated it is and spending patterns of consumers,” says Hottovy. “There’s been a debate over whether this is a fad or not, but I don’t think it’s going away.”

To find out if delivery services are the right addition to your marketing efforts, call or visit us at TRG.

The Perfect Recipe For Maximizing Your Restaurant’s Potential – Operations Analysis

Operations Analysis

Operations Analysis

 

It takes so much more than a few outstanding recipes or a single acclaimed chef on the payroll to raise your restaurant’s visibility in the ever-growing dining-out market.  With the public being educated by cooking shows that feature some of the world’s most beloved chefs, the bar is now raised, the gauntlet thrown, for dining-out experiences.

When patrons choose your establishment to spend their hard-earned money, they now expect the best; greeted warmly upon entry, seated quickly, immaculate and spotless table settings, something to “take the edge off” while awaiting drinks and appetizers.  If customers are comfortably seated and eagerly scanning the menu, that’s great–but if the meal and FOH service don’t meet their high expectations, the rest of their visit may soon be forgotten.

While FOH is the first impression your customers have of your eatery, your BOH must run like a well-oiled machine behind the scenes.  Efficient planning, productive prep and wait staff, proper equipment and counter space are obvious needs. Is your pantry well-stocked, freezers and coolers running at peak efficiency? Does your kitchen comply with all state and local health codes?  Is your staff properly trained, in the right place at the right time, willing and able to do what is necessary to keep things moving at all times?

How does your restaurant rate? Are unoccupied tables a reason for concern?  Is your menu trending? Does your wait staff ensure repeat business or are you losing ground due to poor productivity? Word-of-mouth advertising offers the most profit and potential for increased sales, and at TRG Restaurant Consulting, we look at your business, tell you what’s working and what needs an overhaul. We tell you what people are saying and show you ways to maximize your presence in a highly competitive field.  Let us help your restaurant set the bar for high standards in your community. Contact us today for an in-depth Operations Analysis, tailored to your specific needs.

Various industry leaders take credit for the phrase, “Lead, follow, or get out-of-the-way.” Now it’s your turn.

Restaurant Design: Building the Efficient Commercial Kitchen

Restaurant Design: Building the Efficient Commercial Kitchen

 

 Restaurant Design Kitchen

Your restaurant design is a reflection of your brand. From the front of house design to the back of house, your entire design plan needs to reflect your brand’s personality, market position and mission.

Efficient Restaurant Design

Whether you have a large chain or one store, it’s necessary to take every detail into account; from the store front sign to the table settings. The front of house design should reflect the style of your brand in its décor, also a large consideration should be paid to the construction of the service areas, to include the layout organization and efficiencies. If something looks beautiful but doesn’t function well, your customers will be the first to notice.

The front of house design is an important part of your image, but the back of house is the heart of your operation. Poor commercial kitchen design cannot only decrease your productivity, but it will impact your bottom line in many ways from food waste to loss of business.

Proper Planning

Before you can design your commercial kitchen, you need a solid plan. For example, consider your inventory needs, health codes, the type of food will you be serving and how you will be serving it. Retaining a restaurant consultant is the best way to plan. A consultant can help you establish your menu and make the best use of your kitchen space to increase restaurant efficiency.

There are several areas of a commercial kitchen that need to be established and there are a few popular configurations for different styles of service. Each layout factors in the workflow which includes receiving, storage, food preparation, meal cooking, cleaning and washing, waste disposal and most importantly service. Whichever design you chose, remember to keep it flexible in case your menu options change, use commercial grade appliances and building materials. It is also critical that you create specific work zones that will provide your employees with maximum efficiency to complete their duties.

Popular Configurations

Depending upon what category your restaurant falls into, there are three main layouts you can use to increase food production time and employee communication. These are simple guidelines that are flexible and easily modified to fit your specific needs.

Assembly-line

Many fast food or fast-casual restaurants use an assembly line set up in their kitchens. if you are making many of the same types of food or using the same ingredients in different ways, the assembly line configuration usually works best. This format arranges the kitchen in order of materials used. There is usually a preparation area connected to a cooking area that hands off to a service area. In this setup, the cleaning and storage areas are behind the line. This design offers speed and the ability to process orders quickly without employees running between stations.

 Food Service Design

The Island

The island configuration is designed with one main block in the middle of the kitchen area where food is prepped and cooked. Most often you will find the cooking spaces with appliances and equipment in this area. On the outer walls surrounding the kitchen, you will find cleaning storage, food prep and service areas with a circular flow. The Island offers a good flow for workers to move around and better communication among employees.

Food Service Design

The Zone

This layout is organized by blocks, placing major equipment around the walls. Like the other two models, this design flows in an ordered manner and allows for easy communication among employees preparing the food. It also provides more space in the center of the work area for employees to easily move to-and-from different stations.

Food Service Design

Always keep in mind that each of these designs can be modified easily depending on the equipment you use as well as the space and shape of your kitchen.

Other Considerations

Depending on where you are constructing your kitchen, you will find different local, state and county regulations. The planning and zoning restrictions vary from city to city, so you may not be aware of the required fire, electrical and plumbing codes. Additionally, you will need to apply for permits and licenses so it is important to know what you’re doing before you begin your design. Restaurant consultants are specialists in this field of design, so using one to help guide you through the entire commercial kitchen design and build process, will often save you time, money and headaches, not to mention, help you increase your restaurant’s efficiency and bottom line profits.

Contact TRG Restaurant Consulting for a free commercial kitchen design consultation.

Menu Development – Increase Your Restaurant Revenue

Increase Your Restaurant Revenue During Off-peak Hours  Menu Development

Snacking is not just for in-between meals – Menu development for the next generation

 

Over the past decade, eating habits are shifting in response to a shift in the American culture and lifestyle. In 2014, Bloomberg did a study that indicated people are spending almost as much money dining out than eating at home. The possibilities for increasing profits may lie in the way people are eating today. The demand for quick, healthy snacks are on the rise among people who like to eat a few small meals a day.

 

Changing Menu Preferences

The Technomic 2016 Snacking Occasions Consumer Trend Report highlights the importance of snacking and reveals some opportunities for restaurants to increase market share in this space by capitalizing on the trends. The report indicates that 60 percent of consumers snack at least twice a day and 37 percent would like more restaurants to offer mini-sandwiches that they can eat as a snack or light meal. These trends had double-digit increases and suggest that restaurants may need to revise their menu development.

Some of the key takeaways of the report are diners want healthy snacks in place of, or to go with full course meals. The trend has rapidly changed as 40 percent of consumers are eating healthier foods between meals, more than they did just two years ago. According to the 37 percent of respondents, if bundled mix-and-match snacks were available, they would order them. These diners are not looking for a typical meal. Proper menu development is critical in this aspect because studies show that 49 percent prefer snacks that are different from breakfast, lunch and dinner fare. 

 

A Transforming Culture And Demographic

Having to conform to a hectic lifestyle, dual income parents and single parents are eating outside of the home at least once a week. Additionally, many parents want to provide healthy snacks for their children in between meals. However, the real “snackies” are the millennials. There are three defining characteristics about this group. They are budget conscious, they want healthy food and eat a few small meals a day and they prefer to eat at off-peak times. As their purchasing power increases, restaurants will have to rethink their menu development in order to capture their business.

In the Technomic 2016 Snacking Occasions Consumer Trend Report, some of the responses by millennials were not that surprising. If available, 44 percent of millennials would order snack delivery from restaurants. Additionally, 54 percent of this group prefer unique flavors and pairings in their healthy snacks.

 

Where The Opportunities Lie

The report also generated some interesting information that has the potential to drive more revenue and increase market share in the snack category. A restaurant consultant can help you with your menu development to capture these missed opportunities.

While 56 percent of snack purchases are planned, 44 percent of people attribute their snacking to an impulse buy. Restaurant consultants can help catch that impulsive buyer with better placement and creative menu design. Leveraging the restaurant consultant’s knowledge can also help restaurateurs take their share of the snack market. With statistics that demonstrate consumer snack buying behavior favoring 77 percent of snack purchases at retail locations and only 23 percent bought snacks at restaurants there is room for growth. Work with a restaurant consultant to develop an atmosphere that grabs some of the 72 percent of people eating their snacks at home.

Learn more about how menu development can help transform your snack business on our TRG consulting service pages.

Resources:

2016 Snacking Occasions Consumer Trend Report [Technomic]

Americans spending on dining out just overtook grocery sales

How Will the Minimum Wage Increase Impact the Restaurant Industry

 Restaurant Industry Minimum Wage Increase

Photo: Victor J. Blue / Bloomberg

Minimum Wage Increase Effects on the Restaurant Industry

At a time when minimum wage in the United States varied from $5.15 in Wyoming, to $9.15 in Connecticut, and with the Federal wage set at $7.25, New York made history when they raised their minimum wage to $15.00 (source: NCSL). While the plan will phase in over three years in New York City, and over six years in the rest of the state, the reaction was quick. While many in the media hailed the decision as being something that’s been needed for years, there were just as many naysayers. They claimed that raising the minimum wage would stunt the economy, as restaurants, especially locally owned ones, would struggle to meet payroll once the new minimum wage rates began.

The Importance of Buying Local for Your Restaurant

Buy Local For Your Restaurant
Photo: Frank Kehren

There are many great benefits to buying locally grown and raised foods for your restaurant.

For one, using local foods will reduce your restaurant’s expenses. The cost of shipping food and higher fuel prices can directly impact a restaurant’s cost of goods and profit margins. Purchasing seasonal ingredients from nearby sources ensures a better product at a better price. This means, that by passing along the savings and providing your customers with quality food you will create more brand loyalty and return business.

5 Tips To Lower Your Restaurant Food and Beverage Costs

Food and Beverage CostsThis is one of the most frequently asked questions from restaurant owners and operators;

“How can I lower my food and beverage costs?”

In this article we will provide 5 effective steps you can take towards lowering your food and beverage costs. This outline encompasses the basic steps needed to get you on the right path to a more profitable business.  You will also find we have provided a very useful Menu Analysis Template to your use. You may download it for free in section 5 below.

Will An Operational Analysis Help Your Restaurant?

operational analysis

What is an Operational Analysis and how does it work?

In this article we’ll answer these questions and explore the benefits of an operational analysis.

Regardless of what industry your business serves, it never hurts to have a knowledgeable third party look at every aspect of your operations to identify potential areas of improvement. If you are a restaurant owner who is struggling, an in-depth study from a restaurant consultant can save your livelihood and help you rebound.

Weekly Restaurant Planning Guide

Restaurant PlanTaking Small Steps to Achieve Larger Goals

A well-organized weekly plan can truly make the difference between a growing profitable establishment and a drifting restaurant. Whether you are running a small “mom & pop restaurant”, a high volume casual restaurant, a theme restaurant, a fine dining restaurant, any food service venue or bar, the fact is the same… You must be organized and have measurable systems in place to be successful. Another truth is, “It doesn’t happen overnight”. In order to reach those long term goals, restaurant owners and operators should focus on likeminded and beneficial short term goals.

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