Preorder Apps to Boost Efficiency

December 1, 2014 by Leave a Comment

Beginning this December,  150 Starbucks shops in the Portland, Oregon area will have the opportunity to test a new preorder app to avoid the daunting morning coffee lines. Linda Mills, spokeswoman for Starbucks,  states that upon arrival the beverage will be sitting at the counter, and “If we need to remake your beverage to make sure it’s the right temperature, we’ll gladly do it.” Starbucks is not the only chain to incorporate preorder apps, large food-chains such as Pizza Hut, Domino’s Pizza, Taco Bell, Dunkin’ Donuts and McDonald’s are also in the development phase of testing these sort of new apps.

The startup OrderAhead from San Francisco are assembling merchant networks and they work by acquiring a 5-10% cut of each transaction. Jeffrey Byun, former derivatives trader and founder of OrderAhead, states that “OrderAhead addresses latent demand. We’re enabling behavior that was not possible before.” The mobile-payment startup Square is also releasing a preorder all for restaurants in San Francisco and New York. Richard Crone, researcher at Crone Consulting, believes that in the next couple years every quick-service enterprise should have a mobile express lane in order to have a chance at staying in the business.

Different chains will be rolling out their apps at different times and in different ways, whether the app gives an estimate duration until the order will be complete, or if there will be a separate line in store for mobile ordering pick up. Mills believes that while baristas will be challenged to work in the mobile orders into their routine,“the hardest part is just customer awareness, just getting them used to a different behavior and a different routine.” To read more about the different nuances in preorder app rollout and development and how they will help increase efficiency in stores, click here

Filed Under: Global Market Buzz Tagged With: ,

New FDA Menu-Labeling Regulations

November 26, 2014 by Leave a Comment

Ever since the Affordable Care Act was passed, menu-labeling rules have been under development. The Food and Drug Administration is now ready to go forth with some new menu-labeling rules that have an as underlying intention to send reminders to the consumers that certain foods are unhealthy: as of November 2015 all restaurants with at least 20 locations will be required to post calorie counts, with other information such as fat and carbs available upon request.

These new FDA rules will also apply to coffee shops, bakeries, movie theaters, grocery stores, convenience stores, and even vending-machine operators, who will all have two years to get their act together to comply. Units that are exempt include airlines, trains and multi-unit food trucks. Some exceptions will be made for large chains such as Pizza Hut who will be able to post calorie counts by the slice rather than by the pie given that the menu can extend to over 2 billion possible combinations. Seasonal menu items and condiments are also exempt from the new rule.

To read more about the new FDA menu-labeling rules that will be put into action in a years time, click here

Filed Under: Global Market Buzz Tagged With: ,

Sweetgreen’s Health & Wellness Program for Children

November 13, 2014 by Leave a Comment

A number of fast-casual brands have been developing in-school and in-store programs dedicated to cultivating a new generation of eco-conscious children aware of the link between food and health. Children are introduced to topics such as the environment, nutrition and sustainability through these programs. Sweetgreen is a fast-casual concept brand that began offering educational sessions to the public in their home base of Washington D.C. Sweetgreen representatives were then  invited to D.C. schools and saw an opportunity to create the schools program.

Laura Rankin, director of Sweetgreen in Schools and Sweetgreen’s Sweetlife Festival says the brand is hoping to inspire children to become “defenders of wellness.” The program has now expanded to New York and will soon be offered in 15 of Sweetgreen’s 27 outposts. Rankin states that the program, “evolved over the years to become a complete series of interactive education and nutritional classes where students learn the importance of sustainability, fitness, and eating right…the classes are also designed to introduce the benefits of healthy eating to the children.”

Sweetgreen also partnered with a team of AmeriCorps leaders, FoodCorps that focus on creating a more accessible connection of kids to healthy, sustainable food. FoodCorps founder Debra Eschmeyer stated that the partnership between Sweetgreen and Foodcorps felt very natural as both organizations share similar ideologies; “It grew from our mutual passion for connecting kids to real food…what’s remarkable and humbling about working in the healthy food space are the visionary leaders working together to create a larger lasting impact.”

To read more about the partnership between fast casual concepts and organizations that promote children’s education on nutrition, health and sustainability, click here. 

Filed Under: Global Market Buzz Tagged With:

Managing Food Costs

November 12, 2014 by Leave a Comment

According to the Bureau of Statistics, the cost to guests dining in full-service restaurants was 2.2 percent higher than the year prior. The increases in cost of meats (beef and veal in particular), fish, eggs, and produce were 10.7 percent higher than in 2013. The founder of TheRestaurantExpert.com, David Scott Peters, refers to the factors that threaten food costs as ‘locusts,’ expressing that “it’s all kinds of things completely out of an operator’s control. I tell operators they always have to prepare, because every quarter there’s something.”

Because food costs have been at a steady high and expected to increase in the new year, it is crucial for operators to take a good look at how they are managing their expenses. It is recommended to implement methods of tracking food waste and create a risk management system. Although a price hike is usually what comes hand in hand with rising food costs, Robert Maynard, co-founder and CEO of Toast Café, urges operators to use this tactic as a last resort and to try and negotiate with suppliers first, “If your food is going up 1 percent, you really should try to find that 1 percent somewhere else…there are other ways to fight against the rising prices.”

Some suppliers will offer reduced-price items acquired on behalf of chain restaurants which can be incredibly beneficial for independent operators. Once operators gain a good understanding of their food costs they are better prepared to deal with supply chain fluctuations. To read more about ways to manage rising food prices and food costs, click here

 

Filed Under: Global Market Buzz

Dinner Menu Innovation at Dunkin’ & Starbucks

November 10, 2014 by Leave a Comment

Beginning in 2015 Starbucks and Dunkin’ Donuts will plan to sell more dinner-friendly offerings. Starbucks and Dunkin’ will be attempting to compete with fast food dinner destinations such as Chipotle or McDonald’s by offering more savory dinner options which will in turn keep profits and sales at a steady flow during the entire day. John Costello, president of Dunkin’ Donuts global marketing and innovation mentioned in an interview that although breakfast would remain their core, “..today people are seeking all-day dining, and they want to eat what they want, when they want it and where they want it — that’s why we are so committed to menu innovation and giving our guests even more options that they can enjoy any time of day.”

This Fall Dunkin’ has already added a steak sandwich and a wrap with eggs as a permanent menu addition. Introducing dinner staples will help sales continue past the breakfast rush. As it stands now, only 40% of sales come after 11 a.m. This leaves a lot of room for growth for the chain which stays open until 10 p.m, and especially for the outposts that are open 24 hours a day. Costello hinted at drawing some inspiration for the new dinner offerings from their locations abroad, “We have a variety of products and flavors that are tailored to the regional preferences of our guests around the world such as donuts stuffed, topped and glazed with everything from rice pudding to saffron to crushed pistachios in India.”

While Dunkin’ will try to compete with getting guests who want food on the go, Starbucks in turn is attempting to get customers to stay by introducing small plates to share along with wine and beer sales. The new evening menu offerings are currently being tested and include dishes such as truffle mac and cheese, double chocolate brownie bites, and five choices of red wine, three white, prosecco and a sparkling rosé. According to Starbucks CEO Howard Schultz, “More details around the new food and beverage innovations, reimagined store designs and new store formats, mobile order and pay, and the expansion of our evening programs” will be available Dec. 4th at the annual investor meeting.

To read more about the dinner menu innovations at Dunkin’ and Starbucks, click here

Filed Under: Global Market Buzz Tagged With:

Successfully Promoting Restaurant Events

November 10, 2014 by Leave a Comment

Brian Casel, found of Restaurant Engine, has compiled a list of five tips to promote upcoming events at your restaurant. It isn’t always easy to draw a crowd and spread the word once you have planned a great event. The key to publicizing the event is to advertise it in a series or succession using a combination of different channels. Firstly, it is crucial to create an online event page and create a link to make it accessible from your various other pages. Here are some tips on how to make this event page as compelling as possible:

  • Use a graphic description of special activities and menu items served at the event. Include references to special attendees along with their photos and descriptions – (live music, a chef’s demonstration, etc. )
  • Include a start time, end time and who should attend.
  • Include a prominent call to action, such as an RSVP button is needed.
  • Write about the event on your blog and make sure to always provide the link back to your event page.
  • Create a hashtag (#event) and include it in blog posts about your event.
  • Use social share buttons to encourage visitors to share the event with their friends and family.
  • Target keywords for your event to optimize for search engines; use a title tag and headers that use your event keywords.

Secondly, a few weeks before the event, send an email to your customers. Continue to publicize in a series by sending an email a week before, and yet send another reminder a day or two before your event for the final pitch. Ensure that the subject line of the email is creative and draws attention and that the body of the email has a large call to action that directs the readers to the event page. Social media is of course an appropriate outlet for social events, and a great promotional tool. Buzz about the event will be created by coming up with an event hashtag and using it in every social media post, blog or tweet. Create a social media schedule beginning with a Facebook event that has detailed event information, followed by a custom tweet for the event. Continue to tweet often and trace your statistics. Other social media channels that can be leveraged include Instagram, LinkedIn, Pinterest and Google +. Traditional media should not go overlooked though, flyers have always been a proven successful for promoting events along with magazines, local newspapers, news releases and radio stations.

To read more about Casel’s tips for successfully promoting a restaurant event, click here

 

 

Filed Under: Global Market Buzz Tagged With:

Organic Food Boom in Retail

November 7, 2014 by Leave a Comment

According to the Organic Trade Association, the growth in sales of organic products in the U.S. has rebounded compared to the slow to 4.6% in 2009. In 2013 sales rose 11.5 percent to $35 billion. Organic food (and nonfood) products used to be sold primarily in specialty natural shops until Whole Foods Market essentially took over the market. Mainstream consumers discovered natural food products and chains such as Costco, Kroger and Safeway jumped on board. The sales of organic products at Costco doubled in two years to roughly $3 billion.

The organic/natural food industry is now preparing for the U.S.’s largest grocer to expand its organic food selection. Yes, Wal-Mart will be promising not only to expand the selection of organic products but to sell them at the same prices as nonorganic food. Typically organic food costs at least 25% more than regular food products, so Wal-Mart’s plan is to use Wild Oats as it’s main supplier. Wild Oats was bought from Whole Foods by Anthony Zolezzi and Tim Luberski. Soles states that his goal was “to democratize organic to the masses,” and now Wal-Mart accounts for more than 90 percent of Wild Oats’ business.

To read more about the boom in organic foods in retail in the U.S., click here

Filed Under: Global Market Buzz Tagged With:

Starbucks Brings Back Seasonal Favorite

November 7, 2014 by Leave a Comment

Starbucks guests took to social media, wrote letter and made phone calls demanding to get their seasonal eggnog latte back on the menu. The eggnog latte had been on the menu since 1986, and in a move to simplify the ever expanding menu, Starbucks dropped it from their seasonal offerings. After the customer outcry, Starbucks spokeswoman Linda Mills stated, “We made a mistake, we are very sorry.” According to Mills, Starbucks is aiming to have the eggnog latte back in stores by November 17th. The holiday season is Starbuck’s most profitable time of the year, so it is no wonder they are rapidly tending to the customer complaints.

The eggnog latte had already been re-introduced November 1st in the Pacific Northwest because it has always been a regional favorite, the problem now according to Mills, will come if Starbucks can’t get enough eggnog from suppliers in time. What is impressive in this situation is Starbuck’s rapid response and solution to customer complaints. This was also the case in Spring last year when the company began to sell lemon cake and pumpkin bread in miniature loaf form rather than the usual slices; customers complained and it was switched back. The importance of pleasing the guest for operators in the era of social media is absolutely critical.

To read more about Starbuck’s rapid response to their customers, click here

 

 

Filed Under: Global Market Buzz Tagged With: ,

Effects of Record High Dairy Prices

November 5, 2014 by Leave a Comment

As dairy prices continue to soar, favorite menu items at restaurants have become more costly to produce. According to The National Milk Producers Federation, average farmer’s milk prices rose to $2.16 per gallon in September; this is the highest level on record. Many dining chains have been feeling the effects of these high costs which have been high throughout the year. For example, Chipotle recorded a 20% increase in sales, however executives stated that the higher food costs for items such as cheese and sour cream affected the chain’s profit margins in the quarter.

The Cheesecake Factory, a chain which relies heavily on cream cheese for the cheesecakes stated that increased dairy prices cost them $4.3 million in the quarter. According to Mary Keough Ledman, an economist specializing in dairy markets, the prices have soared due to a global slow down in milk production. “The path to these record high prices was supply-driven..It was kind of the perfect storm — European output was lower, Oceania’s output was lower, and China’s was lower.”

Both restaurants as well as major suppliers such as Kraft Foods or Hershey are being affected by the higher dairy prices and will begin to implement price increases on their products to deal with the dairy cost spike. To read more about the struggles restaurants and suppliers are facing due to the price increases, click here

Filed Under: Global Market Buzz Tagged With:

The Importance of Digital Signage

November 3, 2014 by Leave a Comment

Digital signage is becoming more and more significant for restaurant operators to display their menu items because they engage the customer in an almost ‘interactive’ experience. The discussion “Going Beyond Digital Menu Boards” recently took place at the Fast Casual Executive Summit by a group of industry panelists who narrowed down four main reasons digital signage goes beyond menu boards: connection, content, cost and design.

Aside from the digital menu boards being a platform to create an integrated experience for the customer, it is also a way to connect across systems. Most digital signage platforms are able to connect to POS systems which gives the capacity to monitor inventory. This way, items that are running low can be automatically pulled from the menu boards which can avoid customer frustration. Most new technology platforms also have the ability to download data to the cloud, which is another opportunity for restaurants to integrate and connect systems.

Customization is also a large advantage of digital signage. Digital menu boards allow operators to produce engaging content to keep customers informed while customizing the information based on needs, context and even location. Operators are able to customize content based on what sells to a particular demographic and are therefore able to rapidly test responses to each customized message. Digital screens are also proving to be more cost effective for operators. Paul Flanigan, executive director of the Digital Screenmedia Association says, “I’m not joking when I say this – if you asked me to, I could go into your restaurant at 8:30 in the morning and I’d have you a network by 5 o’clock that afternoon, and it would probably cost a maximum of 1000 bucks.. I know where you get the software, I know where you can get the templates and I can get it all done quickly. The ability to get speed to market is just getting faster and faster.”

It goes without saying that the design options for digital signage are also countless. There is now a large range of design possibilities for both the on-screen materials and the architecture itself. Overall, digital signage significantly increases the customer’s experience which is at the root of operations. According to Flanigan,“The customer is the most important. The bottom line is, it doesn’t matter how much money you spend and it doesn’t matter where you put anything if that customer is not engaged, it just doesn’t matter.”

To read more about the benefits of incorporating digital signage, click here

 

Filed Under: Global Market Buzz
«Previous Page
Next Page»