The Restaurant Group Blog

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

Food Waste: Problem to profit through menu design

Menu Design

There are plenty of studies that will tell you that anywhere between 30 and 40 percent of the overall food supply in the U.S. ends up in landfills. According to a 2014 study, restaurant sector respondents reported approximately 84 percent of food waste was literally thrown away.

The impact on profit

The report estimates that almost 16 percent of all food waste is generated by the restaurant industry. On average, survey respondents generated 33 pounds of food waste per thousand dollars of company revenue. When you put that into dollars and cents, it adds up to a great deal of lost profit.

The restaurant industry is highly competitive and remaining profitable is the key to existence in this overcrowded marketplace. Food waste can be one of the largest hits to your bottom-line so menu design is an important consideration in determining how much food waste your business will generate.

Investigating the sources of waste

If your business is losing a considerable amount of revenue due to food waste, a restaurant consultant can offer insight into your main problem areas and help you close the gap on profit and loss. They can assist you in improving efficiency and reducing waste in areas such as purchasing, product handling, preparation and storage. Additionally, your production and services areas should be factored in as well.

Restaurant consultants recommend breaking up food waste into two categories, you will be able to see the full picture of where your food waste lies. First, consider the food you waste before it is served to the customer and secondly, consider the food that is left after consumption.

Before consumption waste

If you are wasting food before it gets to the customer, there are several matters you need to investigate. The first one is, are you purchasing too much? You are not saving money buying in bulk if you throw away products that have expired or gone bad. Begin by monitoring the items you are throwing away. Review your invoices and orders and define what you are buying too much of and analyze the vendors you are using.

Another possibility could be the way you are storing your food. Monitor your storage areas by going through your inventory and figuring out the best way for all food to stay fresh and unspoiled. Moreover, examine your food preparation methods and set up. If your prep station is not set up effectively you may be throwing food out due to prep errors.

After consumption waste

Auditing your post-consumption waste can tell you a great deal as well. For example, are people eating the whole portion? If not, reducing the plating size is an obvious choice. Also, things to take into consideration is food presentation including the wasted cardboard, styrofoam and plastic that is being used. This waste also needs to be managed to improve your profitability.

Menu design

After you have assessed your waste, you should reassess your menu design. A restaurant consultant can guide you through the process based on your waste assessment. If you need to either recreate your menu or business model from scratch or make tweaks to it, having a professional direct the process can end up increasing your profitability.

Whether you are a fast casual or full-service restaurant, changing up your menu is the key opportunity to minimize food waste. Deciding what you are serving, storing, preparing and packaging will impact your bottom line and your food waste carbon footprint.

The key to ending food waste is to reduce, reuse and recycle! Learn more about how menu design can help your restaurant reduce food waste on our TRG consulting service pages.

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.

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