Customer Connections in Fast Casual Enterprises

It is challenging for fast casual enterprises with limited service to find the time and opportunity to make a real connection with their guests. It is natural that in a busy, crowded environment the staff can act in a very transactional manner to keep the lines moving, however the guest values a true connection with employees. According to the feedback system Goodsnitch, guests were 57 percent more likely to recommend a restaurant if they singled out a specific employee for praise. Some enterprises are adding floating staff in the dining areas to increase throughput and elevate the service.

The salad fast casual concept Tender Greens are very busy for lunch service and are adding staff in the dining room with the sole purpose of engaging wit the customers. Noodles & Company have been testing the effect of adding floating dining staff for this purpose for the past two years and have plans to roll out in all their stores by 2016. Tender Greens CEO Erik Oberholtzer states,”We are adding a greeter or store brand ambassador to walk the restaurant engaging guests throughout their experience…this person will greet guests upon arrival at peak times, answer questions, suggest specials or chit chat with regulars. They will follow up with guests throughout the experience to see how things are going.”

For tips on how to train staff, know your core audience and how to build customer relationships, click here

Raising Restaurant Startup Funds

There are many challenges one faces when working on a proposal to obtain a small business loan for a restaurant. Restaurant loans are known to have high rates of default, and after investing in startup inventory and equipment it is difficult to re-sell if the business goes under because these are items that while 100% necessary to open up shop, also lose value at a very rapid pace (it would be a good idea to look into leasing equipment and fixtures). Tom Swenson, founder and chief executive officer of Bank of Montana writes, “If you are proposing a start-up business, you are de facto proposing something that doesn’t meet typical bank underwriting standards..Start-up businesses have no historical income. Traditional bank lenders rely on historical (tax-return verified) income in order to assess credit risk.”

So how do most restaurant startup companies typically begin operations? Roughly 80% of companies rely on the founder’s savings, 20% get funding from a business partner and up to a third of startups get funding from friends/family or charge credit cards. For those who do receive bank loans, most have personal guarantees from personal property such as home equity which is very attractive for a bank in a proposal. Another important note to include in proposals if it applies to you is to make the lender aware that you are committed to staying on at your job while starting the new business (if the existing household income is high enough to support debt repayment).

Of course a strong business plan and previous experience in the food industry are also positive aspects to include in a proposal to a lender if it applies. To read more about raising restaurant startup funds and how to strengthen a proposal to a bank lender, click here

Tony Roma’s Steakhouse’s Image Update

Tony Romas will be the parent chain of their new TR Fire Grill and Lounge restaurants, which are opening as a trendier concept with the aim to woo millennial diners. TR Fire Grill and Lounge locations are a part of Tony Roma’s Steakhouse’s image updating plans to add some new energy and vibes to the chain. Company leaders aim to open a whole new branch of the company while giving existing restaurants an image makeover.

TR Fire Grill and Lounge offers signature cocktails and  locally sourced ingredients. The menu is creative with exciting offerings designed to compete with modern offerings  in high-end eateries which is what appeals most to the millennial dining segment. Re-branding an aging brand is no easy task, while also trying to expand the current brand internationally. Chief marketing officer Jim Rogers expresses that they have big plans for menu changes and work on the new restaurants but also wish to keep and expand the Steakhouse, “We might have done some things in the past to get away from our core. We want to make Tony Roma’s a fun, family restaurant again.”

Aaron Allen of Aaron Allen & Associates, a restaurant consulting firm, expresses the difficulties of re-branding casual dining restaurants, “The worst place to be is a casual dining restaurant with an average check under $20…It’s especially hard for a company like Tony Roma’s that is trying to keep and attract franchisees that could spend less money on a fast casual restaurant.”

To read more about Tony Roma’s Steakhouses’ new concept and movement within the brand, click here

Queens Restaurant Week

This year’s Queens Restaurant Week will take place October 13th through to October 30th. Over 100 restaurants in 30 neighborhoods will be participating in Restaurant Week offering great prix fixe menus. The most common price points are $14 lunch menus and $28 three course dinners; tax and gratuity not included. Here are a few of the participating restaurants in the borough:

  • Penthouse 808 at the Raven Hotel is a great spot to enjoy rooftop dining with great views of Midtown Manhattan and the East River
  • Dutch Kills Centraal offers a $28 three-course dinner with a brand new chef. This gastro pub concept is local, organic and has a modern flare.
  • The Astor Room in Astoria offers a truly continental menu with great cocktail options as well. Enjoy live music with your dinner at this location.
  • Il Falco in Long Island City is a participating Italian restaurant offering a great Italian dishes

To view a list of the participating restaurants for Restaurant Week and to find out more about their deals running through to the end of October, click here

Global Restaurant Traffic Decrease

According to The NPD Group, only four of 11 global markets (Australia, Great Britain, Russia and China) that were surveyed experienced an increase in traffic during the second quarter. While average checks increased worldwide, traffic declined in some markets causing some concern for the industry’s ability to attract repeat customers. The seven markets that did not show a traffic increase showed only modest declines or flat traffic. In the U.S., operators experienced an average check increase of 2.4 percent, however traffic remained stagnant compared with the same quarter in the year prior. Domestic and international traffic numbers seem to be fairly similar despite the different reasons for the decline.

Global SVP for NPD Foodservice, Bob O’Brien,  expressed in a statement that if there aren’t better results from quick service the entire industry will struggle: “Globally … the industry will continue to eddy about, growing here and declining there, with no clear direction.” According to an NPD report released in the past month, QSR visits fell 1 percent for the 12-month period ending in June, while visits to fine-dining restaurants rose 3 percent.

Some researchers have suggested that the traffic decline is caused by the confidence levels of low-income American consumers; “Those consumers — core customers for quick-service restaurants — are not increasing discretionary income for restaurant purchases in the wake of the Great Recession.” To read more about the trends in global restaurant traffic and possible explanations, click here

Marketing & Branding Live Webinar: Text Analytics

On October 21st at 2PM EDT a live webinar will be hosted by marketing and branding experts on Text Analytics 101: Watch Your Language. This webinar will stress the importance of words and especially those of your customers. It will show how important it is for your enterprise to be well equipped to a)listen and b)respond and act upon the messages customers are sending out about your enterprise.

The webinar event will show how successful brands use text analytics to participate in customer conversation and the key differentiators between different types of text analytics. The panel will also discuss what types of questions brands should be asking themselves before selecting a text analytics solution. Panelists include Kurt Williams, Chief Product Office of InMoment who brings over 15 years of experience in envisioning software products. Spencer Morris, VP of Text Analytics for InMoment directs the innovation and implementation of the industry-leading text analytics program.

To register for the event online and to learn more about what the webinar will reveal, click here

Chobani Connects with Customers in NYC

The Chobani location on the corner of Prince and West Broadway serves primarily as a test kitchen for the brand more so than it does as a major sales point. It is a perfect location to gain insight into what the young and trendy crowd in the neighborhood want and think of the brand’s creations. The savory menu items include plain yogurt with toppings such as red pepper harissa, olive oil, mint, and feta cheese to name a few, while the sweet dishes include toppings such as figs, honey and pistachios. All Chobani yogurt menu items range in price from $4.75 to $9.95.

The market research obtained from customers different tastes and preferences at this location have proven to be very valuable to the brand, so much so that they intend to open ten more similar outlets within the next year in San Francisco, LA, and Chicago amongst other U.S. cities. Peter McGuinness, Chobani’s chief marketing and brand officer states that the location is, “an inspiration and incubation center…we often have discussions with our guests at the cafe.” These conversations about the customers’ preferences have led to new menu items, such as the smoked-salmon sandwich made with mint and lane. McGuinness has observed that, “Everybody who leaves the cafe says they are more likely to buy our product at the grocery store.” So far sales at this Chobani cafe have increased 55% from last year.

Many dishes from this outlet are transitioning into supermarkets such as the pumpkin-spice yogurt, introduced as a seasonal flavor at the store; it has become Chobani’s fastest-selling item ever.To read more about how Chobani is connecting with their customers via a pseudo test kitchen in SoHo click here

Crain’s Made in New York Trade Show

On Thursday, October 23rd from 8AM-5PM the Crain’s Made In New York Trade Show will take place at the Fashion Institute of Technology. This trade show will feature special New York businesses in the food and beverage industry. The event is an excellent opportunity for small businesses in the industry to connect with large New York retailers and buyers. The event is unique in the sense that it is part marketplace, part trade show and partly an educational experience.

The events of the day will include showcased food and beverage businesses on the trade show floor along with ongoing sessions and seminars with business executives as well as with state and city government leaders. The day will also include the opportunity for one on one networking and training. Crain’s retailers, distributors, restaurateurs and hoteliers will all be attending the event. If you would like to attend you must pre-register and the admission to the trade show floor, seminars and cocktail reception costs $49 to attend, with additional costs for the Early Bird VIP admission which includes a special dinner at L’Apicio Restaurant.

To read more about the speakers at the event and the exhibitors or to RSVP, click here

Yaffa Cafe Closes in East Village

Yaffa Cafe, a favorite 24-hour restaurant in the East Village, has closed for good after 32 years of service. Yaffa Cafe was a great late night spot in the neighborhood popular amongst NYU students. Last month the Department of Health shut down the cafe for several violations including a lack of a secondary fire exit in the backyard. The managers at Yaffa Cafe tweeted that their recipes would live on at their sister establishment, Simone Martini Bar, which can be found just down the block.

Locals took to twitter to express their anger, nostalgia and bitterness about the sudden close of Yaffa Cafe. It seems the general feeling is that Yaffa Cafe in St Marks Place will be missed for its quirkiness and all-night backyard hangout space which has already been dismantled and removed. The editor of the Guardian, Alex Koppelman, tweeted, “Yaffa Cafe is gone, and 23-year-old me is very sad.”

To read some of the tweets that came upon the news of the closing of Yaffa Cafe, click here

Global Snacking Habits

Nielsen conducted the first global snacking study for the year ending March 2014. The study consisted of surveying 30,000 people in 60 different countries on the snacks that were consumed the most in the period of the previous 30 days. The most common response to this global snacking survey was…chocolate! The second most common snacking food was fruits at 62%, vegetables at 52% along with cookies at 51% and bread at 50%.

The U.S snacking items were less-healthy than the snacking habits in the rest of the world, with salty chips as the main snacking item followed by chocolate, cheese and cookies. Although chocolate is the globally most snacked on item, different snacking habits vary country to country. In Peru and Chile ice-cream was the main snack of choice, while yogurt was at the top of the list for Mexico and Colombia. In China the most popular snacks after chocolate and fruits are nuts, seeds and dumplings. India reported bread and sandwiches as the main snack.

In Europe, France showed a strong orientation toward dairy, with yogurt and cheese leading the responses. Cheese was also a dominant response in Russia, Greece, and the Netherlands. In Israel and Romania the responses were very healthy with vegetables at the top of the list as the most common snacked on food. To read more about global snacking habits and to see a graphic diagram broken down by global regions, click here