Consumer Demand for Customization

June 30, 2014 by Leave a Comment

Berge Simonian was a franchise owner in Houston when he noticed a popular trend starting to really take off: custom made salad. He decided to to create a brand, Salata, to be part of this fast growing trend. There are now 30+ Salatas in Texas and California and Chicago is next. According to David Laborde, director of product development, another 15 are set to open by the end of the year. Laborde believes that this rapid growth is driven mostly by the the consumer demand for customization which can easily be fulfilled at a salad-bar type concept. Of course Salata’s momentum is also backed by superior quality of ingredients and brand exposure.

Laborde has also observed a few other trends coming to the surface. Apart from clean, healthy customizable eating, Salata has also been incorporating more vegetarian protein options such as grains, tofu and falafel based on customer demand.  There is also a growing trend for different sauces and spice; not just hot spices but more globally influenced spices such as African and Indian flavors. Another focus of the product development team has been creating beverages unique to Salata. Flavored teas and lemonades are popular at Salata as they are a healthier option to fountain sodas which don’t really fit well with the brand.

To read more about how Salata creates loyal customers by keeping up with consumer demand click here

 

Filed Under: Global Market Buzz Tagged With:

Papa John’s Entrepreneurial Advice on Growing A Business

June 25, 2014 by Leave a Comment

John Schnatter impressively built the global pizza franchise that is now Papa Johns. Schnatter has shared some of his most valuable lessons learned through his experiences to entrepreneur.com last month in Washington D.C. during National Small Business Week. One of the major lessons he learned from his father before he even started building his pizza empire was that hiring the best people did not necessarily mean hiring the most experienced; he stated, ” You look for people who are positive and who have integrity…That’s how he taught me to train for aptitude, hire for attitude.”

Schnatter believes in the importance of being surrounded by people with great can-do attitudes and spirits that are full of passion. The key is not to be too controlling of employees but to give them a direction to head in and provide them with the appropriate resources and lead by example. It is important to motivate and reward them when they are doing things right so that they can begin to motivate themselves.

Of course Schnatter states that one of the most important elements to growing a business is to have an effective business model. However, he also shares some advice on how important it is to make a few mistakes along the way and not get down on yourself because of them; mistakes need to be made in order to learn from them, analyze and innovate.

To read more on John Schnatter’s advice on growing a business, staying competitive and establishing a culture of entrepreneurship, click here

 

Filed Under: Global Market Buzz, Meet The Owner(s), Operations Tagged With: ,

Creating a Culture of Hospitality

June 25, 2014 by Leave a Comment

This past weekend as part of the 25th anniversary of the American Express Trade Program at the Aspen Food & Wine classic, industry experts discussed a very important topic: customer loyalty. Chef Tom Colicchio (Craft, Colicchio & Sons), Sean Brock (Husk, Charleston), Stephanie Izard (Girl and the Goat, Chicago) and Mitzi Gaskins (Marriott) led a seminar discussion on how chefs and operators can create a culture of hospitality and loyalty.

Colicchio stated that it all comes down to the servers; they have two main jobs: 1) make the customers happy, and 2) create regulars. The goal for the servers is to really become friends with the diners and get to know them so that it really becomes a personal experience. It is important to have the servers make those little extra steps that go beyond the eat-then-pay transaction. The chefs mentioned that they use computer programs (such as OpenTable) to track their guest information. Servers can make notes of the guests’ personal preferences (sparkling water vs regular, etc.) and input it into the computer at the end of service. They then analyze this collection of data to connect more with the customer. Recognition is absolutely key in fostering customer loyalty; as a diner it is the best feeling to enter an establishment and have the staff remember your name and dining preferences.

Gaskins also stressed upon the importance of attracting the right talent. The recruiting process should never be taken lightly. It is important that the staff you keep truly fits the profile created by your brand. It is then equally important have appropriate training systems and provide the staff with the tools necessary to make the guests happy. Colicchio makes an excellent point which is that in order to create brand loyalty among your customers, your staff has to be loyal to your brand; it all begins in-house. Both Colicchio and Gaskins spoke about how a little positive reinforcement can go a long way, and how stories of hospitality successes will spread amongst the staff.

Social media is also a relatively new and important way to connect with fans and customers. Operators should research what works for them and what doesn’t. It is important to keep the customer engaged and incentivize them to come back to your restaurant without flooding their twitter feed or email inboxes. For instance, Izard mentions that perhaps it is smart to run quarterly specials vs running specials every few days. Izard also spoke of the importance of building relationships with customers in the community. She recommends engaging with the community through charitable events and choosing organizations that you are proud to be a part of.

To watch the seminar on the evolution of customer loyalty click here

 

Filed Under: Events, Global Market Buzz, Local Market Buzz, Operations Tagged With: ,

New Starbucks Beverage Option

June 24, 2014 by Leave a Comment

Last year Starbucks tested Fizzio sodas in a few of their shops and are now expanding to the southern half of the U.S and Hawaii. By the end of this coming year Starbucks is hoping to have expanded the made-to-order sodas nationally. Starbucks has promoted the benefits of the Fizzio machine as it can add carbonation to already flavored drinks and not just water; the amount of fizz is also adjustable on the machine. During the rollout Starbucks will be charging fifty cents to add fizz to a beverage and will be implementing location-specific flavors.

Starbucks is aiming to attract more customers for lunch by adding the Fizzio machine to their shops. The chain is also introducing new Teavana iced teas and new sandwiches for the same purpose of driving more lunch time traffic into their shops. For the moment Starbucks is not working on creating their own branded soda machine, however some well-known companies such as Keurig Green Mountain and Bevyz are partnering with Pepsi and Coca-Cola to design their own at-home soda streams. It probably won’t be long until the chain also has a go at it.

To read more about Starbucks’ new beverage option click here

Filed Under: Global Market Buzz, Local Market Buzz Tagged With:

Finding New Solutions for Growing Income Inequality

June 23, 2014 by Leave a Comment

Last week during the Aspen Food & Wine Festival, the American Express Trade program held a panel discussion for food service operators on how to find solutions for the income inequality between front-of-house and back-of-house workers. The panel members included Chef Jonathan Waxman of Barbuto in New York, Barbara Lynch of Barbara Lynch Gruppo in Boston, chef and owner of Coqueta in San Francisco, Michael Chiarello, and chief-executive of Union Square Hospitality Group in New York, Danny Meyer. The discussion took place within the context of the vote to increase the minimum wage in Seattle, Chicago and San Francisco.

Kitchen staff are usually on a fixed income (roughly $9 or $10 an hour), while servers benefit from customer tips creating a large income gap between the two. The panelists discussed the idea of replacing tips with a service charge, however both Meyer and Waxman agreed that it is difficult to change customer habits and their expectations of the servers. If this change were made in only a percentage of restaurants it would make it difficult for those with a service charge to attract top serving staff. From the customer’s point of view, it would also be an adjustment because customers like feeling that they have some control of their dining experience by tipping.

Hopefully new solutions will be cerated to solve the issue of compensation inequality amongst staff in restaurants whilst still keeping the customer happy.

To read more about the panel discussion, click here

 

 

Filed Under: Global Market Buzz

NRA Launches Improved TrendMapper Website

June 20, 2014 by Leave a Comment

The National Restaurant Association has launched the updated version of their TrendMapper service which was first created in 2002. This online resource, which requires a subscription, features NRA research, data analysis and forecasts that are continually being updated. The Chief Economist of the NRA, Bruce Grindy, stated in a news release, “The service provides running analysis of key industry indicators that are crucial for tracking trends and planning strategically for the future.”

The Restaurant TrendMapper includes insights into sales, capital expenditures, food menu price inflation and employment amongst other indicators. It also analyzes current data from government sources such as the U.S. Census Bureau and Bureau of Labor Statistics. The information is presented in chart and text formats and features downloadable data files that can be used offline. This online resource is also the sole source for aggregated data from the NRA’s Restaurant Performance Index and Industry Tracking Survey.

To read more about additional topics that are covered by the Restaurant TrendMapper click here

 

Filed Under: Global Market Buzz Tagged With:

Customer Service is of Utmost Importance

June 20, 2014 by Leave a Comment

Customer service should always be a top priority for any business, but especially for the service industry. It is simply bad business not to ensure that you have efficient customer service systems in place. You want to be that business that is known for setting high customer service standards. Put simply, a lack of strong client services will lead to a lack of business. Here are a few suggestions to strengthen your customer relations:

ONLINE:

  • Make the business able to be easily located and accessed online
  • Build a professional website
  • Index the website on the most popular web search engines
  • Make the website easy to navigate from desktops, tablets and smart phones
  • List your business on popular directories such as Yelp, Yellow Pages, etc.
  • Establish your business through social platforms such as LinkedIn or Facebook

PHONE:

  • Make sure customers rarely get a busy signal when trying to reach your business by phone
  • If you can’t hire a full time receptionist, consider hiring an answering service
  • Install a hosted phone system such as VirtualPBX or Grasshopper so you can receive alerts when a call is received
  • Have a system in place to record when calls are received (a simple Excel spreadsheet would work just fine)
  • Always return phone calls

The most important aspect is to always be available and accessible. Keeping in touch with your past customers will most likely lead to continued service and loyalty. This will make your customers want to write good reviews online, refer you to a friend, and generally create a positive buzz about your services.

To read more about the importance of smart customer service, click here

Filed Under: Global Market Buzz, Local Market Buzz, Operations Tagged With: ,

Summer Specialty Drink Trends

June 19, 2014 by Leave a Comment

With the arrival of summer comes too the arrival of limited time only specialty drinks being served in restaurants and food chains. These specialty drinks which include flavored ice teas, frozen coffees, flavored lemonades, etc. are high margin drinks as the customer is more than willing to pay extra for these sorts of beverages; especially during the summer months where the idea of cooling off with a nice cold beverage is very attractive. Guests are willing to pay extra for a beverage that cannot be easily obtained in a grocery store (such as a soda) and that is not simple enough to make at home (blended beverages).

Soda company sales are declining as guests continue to opt for alternatives to bottled water and sugary or diet sodas. Sonic, the drive-in fast food chain, has launched a Summer of Shakes campaign with half-price shakes after 8 pm. According to a recent report by newBrandAnalytics, a social media monitoring and online management company, the mention of Sonic’s shakes and slushes on social media was off the charts.

To read more about the summer beverage trends and what other restaurants will be offering, click here

Filed Under: Global Market Buzz, Trending Now

New Rewards Solution Launched by Paytronix

June 18, 2014 by Leave a Comment

Paytronix Systems, Inc. is a platform that enables restaurants to drive revenue by providing gift, loyalty and email solutions. Paytronix recently launched a new pilot program, EXPRESS Pilots, designed  to help retail chains and restaurants introduce new rewards programs. The secure, market-focused EXPRESS Pilots program allows restaurants to customize promotions, mobile payment, mobile apps and guest messaging tools.

Currently the Paytronix platform has 250 unique rewards programs. The software has a built-in engine that allows campaigns to be created based on consumer behavior. The director of advertising and merchandising for Denny’s, one of the first to use the program for Denny’s Diner Perks, has said that the EXPRESS Pilots program has helped to evaluate and analyze customer’s dining habits via the rewards structure.

To read more about Paytronix Systems, Inc. new rewards solutions click here

Filed Under: Global Market Buzz

Oracle Acquires Micros Systems in $5B Deal

June 18, 2014 by Leave a Comment

Oracle, the world’s leading supplier of information management software, is now close to acquiring Micros Systems for over $5 billion. Micros Systems sells point-of-sales hardware to restaurants, stores and hotels; it also sells customer-relationship management software, invetory-tracking software and analytics software. This acquisition would diversify Oracle’s product lineup as it would now include more hardware. It will also enable Oracle to pick up many of Micros’ customers in the food , retail and hospitality industries.

Last year a few of these customers included:

  • Cracker Barrel
  • Burger King
  • Arbys
  • Hard Rock Café
  • Hilton

To read more about the acquisition click here

Filed Under: Global Market Buzz, Operations Tagged With:
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