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A Master Class Guide for Takeout & Delivery
Delivery & Takeout Solutions
Play Ball! Maximizing Business with the Return of Sports
The coronavirus pandemic has fundamentally changed how restaurants do business. Restaurant operators have been forced to pivot to delivery and takeout and make difficult decisions on labor costs, marketing and menus. Here, you will find expert analysis and tools to help your business navigate these unprecedented times.
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April 15th, 2020 - 10:00am (EST)
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With most restaurants forced to close their dining rooms because of state and city coronavirus restrictions, operators are increasingly turning to the sole off-premise channels such as delivery and carry-out.
Best Safety Practices for Delivery and Takeout in the COVID-19 Age
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Times of crisis inevitably change the way consumers eat, as they rethink their values around food and return to familiar favorites. Hear from two menu trends experts on how recent events are likely to impact the way consumers eat in the months, and perhaps years, to come.
6 Ways the Coronavirus Crisis Will Change Menus
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Radical lifestyle shifts and rising health concerns brought on by the spread of coronavirus are changing the way people interact with businesses. New research offers a closer look at what consumers are looking for from restaurant brands in these uncertain times.
The New Consumer Mindset
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Restaurants facing steep losses are seeking answers about what relief they may get from their insurance policies. In this report, legal experts outline what business owners need to know.
Here’s What Your Business Insurance May (or May Not) Cover
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Now more than ever consumers are seeking comfort foods they can share at home with their families.
Shareable Comfort Foods Strike a Chord During Crisis
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Foodservice operators implement safety, health measures to combat spread of COVID-19.
Community Safety Paramount During Takeout, Delivery
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Operators strive to maintain messaging while they focus on delivery, takeout.
Maintain Brand Identity in Marketing Off-Premises Offerings
7 Ways the Coronavirus Crisis Will Change Menus
With athletic events resuming around the globe how can restaurants whose concepts count sports enthusiast as a large part of their customer mix maximize revenue and profits on game days, even with COVID-19 capacity restrictions in place? Tune into this program to hear from leading operators who rely heavily on sports about their plans to leverage the reopening of athletic events and work around some continued closures. What presentation tech, menu or service wrinkles might they have in mind or be using right now to create or reinforce the sporting-event atmosphere and dining experience needed to pull customers into their units or drive greater use of their off-premise channels? And how are they promoting these new approaches? Join this webinar to hear from our speakers as we discuss this and more!
Restaurants need to address legacy costs and eliminate items that don’t boost sales and profits.
Streamlined Menus and Recipes Are the New Norm
Promotions that illustrate local support, provide meal solutions take the driver’s seat.
Restaurants Rethink Messaging to Highlight Family, Community
Operators need to show they have comprehensive COVID-19 protections in place.
Consumers Seek Clear Evidence of Safety
Restaurateurs look to al fresco dining to help boost sales as they continue to wrestle with COVID-19.
Operators Explore the Great Outdoors
Restaurateurs struggle with pressing operational, health demands amid COVID-19 pandemic.
Persevering Through Challenges
Operators must closely monitor costs, revenues of menu items as restaurant dining moves to the next phase.
Keeping Profits on the Menu for a ‘New Normal’
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Grab-and-go retail versions of foodservice menu items help keep some operators afloat.
Restaurants, Grocers Partner on Retail Meals
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Operators can incentivize add-ons that enhance the customer’s experience.
Driving Higher Off-Premises Checks
Operators seek out opportunities and create offerings that meet today's catering needs.
Catering Calls for Creative Solutions
Although touted as game-day-style feasts, the Homegating Packs were available every day of the week during the 2020 football season. Consumers’ pent-up demand for spending might also create opportunities for tie-ins with local businesses in these traditionally quiet months. If movie theaters have begun to reopen, consider dinner-and-a-movie deals with local theaters, or perhaps partnerships with sporting goods stores where consumers may be drawn for memorabilia related to football and basketball playoff races. It’s also important not to lose sight of the importance of offering value, says Hormann of Applebee’s.
Many restaurants have expanded their sports-themed tie-ins during the pandemic with off-premise offers tied to football that can carry over to the Super Bowl. These tie-ins can also be updated and deployed for the college basketball playoffs in March. BJ’s Restaurant & Brewhouse, for example, this past fall launched Brewhouse Homegating Packs, targeted especially for sports fans who were gathering at home to watch football games on TV. The Homegating package includes a large deep-dish pizza; a family-sized chips and dip; a choice of two sharable appetizers; and a 64-ounce Handcrafted Signature Beer growler or non-alcoholic beverage, priced at $64.95. Appetizer choices include boneless wings, bone-in wings, chicken tenders, BBQ tri-tip sliders, beef sliders and a full rack of baby-back ribs for $2 extra.
Feeding the ‘Home-gating’ Trend
Drive-Thru
57%
Pickup
53%
Delivery
47%
Curbside
46%
Takeout/Carryout
Walk-up Window
38%
In this current climate, which of the following would you be very willing to do?
(Percentage of respondents giving each answer)
The tournament represents a prime opportunity to promote repeat visits with continuity promotions and contests, as well as bundled meals or snack and appetizer trays geared for watching games at home. Restaurants often use the tournament to launch shareable menu items, such as new wing flavors, as limited-time offers. Other popular items for game day include sliders, chicken tenders and fried pickle chips. Many restaurants in recent years have also offered free or discounted home delivery during the tournament to capture revenues from consumers enjoying the games at home, as the off-premise dining trend had been gaining momentum. Vicki Hormann, director of off-premise at Applebee’s, says innovation in takeout and delivery offerings will continue to be a significant part of the company’s business strategy in 2021 as part of its Applebee’s To Go program.
Sporting events such as the Super Bowl and March Madness represent perhaps the best opportunities for operators to drive sales during this otherwise sluggish time period. Research from restaurant loyalty systems provider Womply found that sales volumes at local restaurants on days when the March Madness college basketball tournament is played increased 19% over sales on an average day, and were up 4% over typical weekend-day sales.
March Madness Is Back
say they will definitely avoid eating out
62%
are nervous, but will still eat out
24%
have no concerns whatsoever
14%
Off-premise opportunities abound for promotions around Valentine’s Day, March Madness and more. The seasonal slowdown in restaurant dining that typically occurs every year in February and March always takes a toll on business. But there are things operators can do to keep customers engaged throughout the winter, even during the pandemic. This year, annual holidays such as Valentine’s Day and St. Patrick’s Day present opportunities to tap into pent-up demand for celebrations and restaurant experiences. Valentine’s Day in particular has historically been a lucrative holiday for restaurants, with sales running 65% above normal levels, and traffic 48% above normal, according to restaurant technology provider Upserve.
Beating the Winter Blues with Holiday, Sports Tie-Ins
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In additional to tamper seals, consider labeling the package with the time and date of pick up and offering guest guidance, including heating or reheating instructions if applicable. Food should be consumed shortly after delivery. Leftovers should be placed in a refrigerator that will cool and maintain the food at less than 41 degrees F and eaten within two days. (instruct otherwise if guidance is less than 2 days). If served hot, reheat to a temperature of 165 degrees F quickly after taken out of refrigeration. Once cooled and reheated, do not cool again and reheat a second time.
What’s the best way to communicate food-safety quality to the consumer?
Minimum temperature leftovers should be kept at in refrigerator.
41°
Reheat temperature if served hot.
165°
Food packaging should be a good fit to maintain hot and cold temperatures as long as possible and to uphold food quality. To help maintain temperatures, package hot and cold food separately. Before pick up, hot food should be held at 135 degrees F or more and cold food should be held at 41 degrees F or less as long as possible. Limit the time food is out of this temperature range to less than two hours. Buffer the time of delivery into the suggested two-hour window where cold food is outside the temperature of less than 41 degrees F and hot food is out of the temperature of more than 135 degrees F. Close packaging using a tamper-proof seal. (Don’t forget to double check the order first!) Some packaging solutions are: Adhesive seals on take-out bags that tear bag when opened, carryout containers with plastic tabs that break when food is accessed, tamper-evident labels, cartons with tamper-evident seals or adhesive strips or adhesive bands across the tops of lids and cups. Also check: Is the bag secure enough to withstand possible movement and possible cross contamination during transportation? If not, double bag or secure everything together.
And the packaging?
With increased takeout and delivery, it’s important to have the right-size area to keep take out and to go items away from contamination such as chemicals or physical hazards, such as office supplies that may be near take-outs – paperclips, etc. As best practice if using third-party delivery services, consider supplying hand sanitizer for the driver and sanitizing wipes for the takeout bag.
How about the food preparation space?
Excellent food safety practices, time management of cooked and holding food, proper packaging, tamper resistant seals, sanitation and customer guidance are areas you may want to look at first when putting together a plan to offer delivery and pick up. Excellent food safety practices start with proper hand washing and personal hygiene. And now more than ever, hand washing is at the top of everyone’s mind. Everyone who handles food should properly wash their hands with soap and water. If you have your own delivery drivers, consider training on hand washing procedures. Even though delivery drivers are not preparing food, excellent personal hygiene should be practiced by everyone in control of a guest’s meal.
No one should work sick, including your delivery drivers. Anyone with symptoms of vomit, diarrhea, sore throat with a fever, jaundice, fever alone or respiratory illness should not be handling or delivering food. And they should not return to work until symptom free for at least 24 hours or cleared by the health department or their doctor. Foundational food safety practices should also be strictly followed, such as keeping raw food away from cooked food, eliminating bare hand contact and cooking food to the proper temperature. Perform regular cleaning and disinfection when needed. Pay close attention to items used just for delivery and pick up. Wipe out delivery bags with a sanitizing cloth frequently. Use bags that are easily cleanable and in good repair. Discard when they are worn and uncleanable.
What are the critical things that restaurants can do to ensure the safety of their food until it is delivered to their guests?
Once food leaves the restaurant for delivery, transparency for the most part could be lost and maintaining the safety and the quality of the food is important, even when it’s out of sight on the way to the guest.
What are the best steps to assure food safety in delivery and takeout?
Coronavirus is a respiratory virus. It is not considered to be a foodborne illness by the [Centers for Disease Control and Prevention], but similar proactive steps such as not working when sick, proper hand washing and thorough disinfecting can help mitigate the risk.
Any other advice?
• For delivery and pick up, encourage all payments to be hands free and interactions to be minimal and consider drop-off deliveries. • Increase frequency of bag cleaning and disinfecting high-touch surfaces using an [Environmental Protection Agency]-registered product with an emerging viral pathogen. Refer to product label for directions for use. • For pickups, limit the number of people inside at the same time to maintain social distancing. [Recommendations are for physical distancing of six feet.] • According to the [Food and Drug Administrations], there is no evidence of food or food packaging being associated with transmission of COVID-19.
What are some specific suggestions for delivery and takeout in during the COVID-19 pandemic?
Ecolab manager offers advice on methods and protocols in off-premise food amid the coronavirus pandemic With most restaurants forced to close their dining rooms because of state and city coronavirus restrictions, operators are increasingly turning to the sole off-premise channels such as delivery and carry-out. Nation’s Restaurant News turned to Mandy Sedlak, food safety and public health manager for Ecolab’s Ecosure division, to offer her expert advice.
Best safety practices for delivery and takeout in the COVID-19 age
sales above normal
65%
traffic above normal
48%
Vicki Hormann, director of off-premise at Applebee’s
“We’ll bring back many of our classic guest-favorite To Go offers on cultural holidays and ‘just because’ throughout the year, as well as updates to our virtual brand.”
“Diners are spending more than they typically would to impress their dates,” the company says in a report on Valentine’s Day trends. For those customers celebrating Valentine’s Day at home, the Upserve report suggests that restaurants consider creating off-premise dinner packages that suit the occasion, such as buy-one-get-one entrées, a free dessert with two entrées ordered or a special, pre-packaged three-course meal. For St. Patrick’s Day, Upserve suggests taking some traditional Irish dishes such as corned beef and cabbage, shepherd’s pie or Guinness stew, and putting a unique spin on them.
Valentine's Day Promotions
The company seeks to remain in touch with its customers’ evolving preferences by changing up its menu for shareable items such as snacks and appetizers for sports tie-ins. “We’ve known for years that appetizers are an ideal dish to share or enjoy on your own during major sporting events, and whether guests are dining at home or safely in our dining rooms, we anticipate the popularity of appetizers will continue in 2021,” says Hormann. “Boneless Wings, Mozzarella Sticks and Spinach + Artichoke Dip are hands-down our guests’ favorites today. But we never stop adding new innovation to our menu to meet guests’ changing tastes.”
Kevin Mayer, executive vice president and chief marketing officer of BJ’s Restaurants.
"We hope to bring back some of the connection and camaraderie that has been lost without in-person games.”
“We saw this in 2020 with the success of campaigns such as our National Chicken Wing Day offer of buy one, get one free, and our free dessert offer in honor of Applebee’s 40th birthday.”
- Quinn Adkins, director of menu development at Culver Franchising System. The chain is known for its Butter burgers, Wisconsin Cheese Curds and Frozen Custard, among other items.
“Overall, we’ve seen increased demand for our sides during the pandemic—a trend that was occurring pre-pandemic as well.”
The most popular sides at Culver’s are its Crinkle Cut Fries, Wisconsin Cheese Curds and Onion Rings, he says. During the pandemic, Culver added promotional materials around the chain’s variety of menu items, including its sides. “We’ve always believed more menu options mean more ways to brighten your day,” says a TV ad promoting Culver’s wide range of offerings, including its fried Chicken Tenders, Onion Rings and Cheese Curds. The chain revived one of its most popular snack items, Pretzel Bites, in 2020 with a limited time offer. The Pretzel Bites, which are served with Culver’s Wisconsin Cheddar Cheese Sauce for dipping, “are a perfect savory treat,” says Adkins, noting that sales of the item were up 40% year-over-year in 2020. The item first appeared as an LTO in 2018. Culver’s seeks to balance new menu options with its “tried and true” items, says Adkins. “We have seen incremental value in our LTO sides like Culver’s Pretzel Bites and Sweet Potato Fries,” he says. The characteristics of a successful snack, he says, are crave ability, portability, quality and uniqueness to Culver’s.
More Side Options
Operators expand variety and experiment with new items to fill all-day demand for off-premise noshing. The pandemic has accelerated the opportunities for operators to showcase snacks on their menus, building on a trend that has already been gaining traction in the industry. Consumers have increasingly shifted away from traditional meals and opted instead to nosh throughout the day, or to combine multiple snacks, tapas-style, to create their own meals. Operators are responding with more snacking options, such as an expanded assortment of French fry options and loaded dishes, pretzel bites, sliders and other portable finger foods that can easily be eaten on the go.
Pandemic Fuels Snack-Menu Opportunities
- Robert Zarco, Business Litigation Attorney
“Clearly, none of this is within the control, fault, or negligence of the businesses gravely affected, but instead a government imposition of its civil authority for the benefit of the communities at large.”
Lockdown mandates require restaurant dining rooms to shut down, but do not require restaurants to stop doing takeout or delivery. “For higher-end restaurants, it’s not practical for them to do takeout,” Sokol said. “In that circumstance, the restaurant or bar could argue physical loss of property because they can’t do takeout.”
Are certain types of restaurants more likely to be covered than others?
Both lawyers suggested documenting everything in detail if your restaurant is forced to close temporarily. Do not necessarily rely on the word of your insurance broker, and call a lawyer as soon as possible. “There’s no reason to sit back because then they’ll lose [whatever claim] they have,” Sokol said.
What should I be doing to collect an insurance claim?
It is uncertain whether or not the “Act of God” defense, also known as a “Force Majeure,” would be applicable in this case. An Act of God usually covers unforeseeable natural phenomena like floods, fires, earthquakes and other natural disasters, as well as businesses that were affected in the aftermath of 9/11. “The punitive measures imposed upon us all include the required closure of businesses, imposed travel bans, etc.,” Zarco said. “Clearly, none of this is within the control, fault, or negligence of the businesses gravely affected, but instead a government imposition of its civil authority for the benefit of the communities at large.” But the Act of God clause is more complicated than it may seem. “It is typically defined as a natural disaster and I don’t think a virus would be covered under that,” Sokol said, claiming that there would be exceptions if a restaurant owner contracted the virus and/or did not recover.
Is my restaurant covered under the “Act of God” defense?
Although most insurance policies won’t specifically mention pandemics, they might have a virus exclusion policy. “When we had the SARS epidemic over a decade ago, the insurance industry became concerned with viruses,” Sokol said. “You sometimes see these referred to as pathogenic organism exclusions, which includes any bacteria, yeast, mildew and viruses.” Even though virus exclusions are common, Sokol said that “depending on the wording” of the contract, there might easily be a way around these exceptions.
What is a virus exclusion?
“I think that 10-20% of policies will cover these restaurants as clearly written,”
Sokol seemed less optimistic, saying that “insurance companies are going to dig their heels in,” claiming that their insurance policies are not meant to cover global health incidents like this, and that the government should be compensating businesses instead.
Unfortunately, because no one — not even insurance companies – could have predicted the scale of a global pandemic, there is likely no specific language that pertains to COVID-19 in business insurance policies. Therefore, there is a lot of creative leeway for both insurance companies to claim exclusions, but also for business attorneys to find loopholes in that vague language for restaurants to take advantage. “I think that 10-20% of policies will cover these restaurants as clearly written,” Zarco said. “But by using the arguments that we’re making? I would say that number could go up to 60-70%. This is going to create huge legal precedence.”
What are the odds that my insurance company will cover coronavirus?
• Crisis Management Coverage covers times of crisis that might include a violent act like a break-in or armed robbery, as well as a restaurant being shut down for food contamination or communicable disease, said Jason Upton, president of the Upton Group, an insurance agency specializing in restaurant and delivery insurance. • Contingent Business Interruption Insurance is a specific type of business interruption insurance that covers indirect loss caused by “the inability of a supplier to perform his/her obligations with the insured (business owner) due to no fault of his own,” Robert Zarco’s law firm said. A government lockdown of an entire city or state could be covered under this type of insurance. • Civil Authority Coverage is when your business is interrupted by federal, state or city government mandate. • Impossibility of Performance and Frustration of Purpose is, just like it sounds, when a business cannot “perform a contractual obligation” through no fault of their own that they could not have foreseen, Zarco said.
There are certain keywords and phrases to be on the lookout for in the language of your insurance policy. These are the types of insurance coverage that restaurant owners should be asking their insurance brokers and lawyers about.
What should I be looking for in my insurance coverage?
- Jonathan Sokol, Greenberg Glusker Fields Claman and Machtinger Law Firm
“I think they can meet this direct physical loss requirement...if they are forced to shut down,"
The catch with using business interruption insurance is that most of these types of insurance plans will require physical property loss or damage in order to cash in on the claim. However, in the case of the COVID-19 pandemic, in many circumstances, even though a restaurant property might not be physically damaged from a fire or flood or other natural disaster, it could still be covered under physical loss. “I think they can meet this direct physical loss requirement in certain circumstances if they are forced to shut down and have no access to their restaurant,” Jonathan Sokol, a business litigation attorney with Greenberg Glusker Fields Claman and Machtinger law firm said. “It’s different if they are still operating by serving takeout because then you’re not actually shut down, you’re making less money.”
What are the requirements of a business interruption claim?
“I assure you that the next iteration of insurance contracts will have worldwide pandemics as an exclusion, but right now many of them don’t,”
The key type of insurance to be on the lookout for, lawyers say, is business interruption insurance, also known as income interruption insurance. As the name suggests, business interruption insurance compensates your business for interruptions that force you to close your doors temporarily. Usually covered under this claim is fires, weather disasters and other unexpected phenomena. Not usually listed in these insurance plans? Pandemics. “I assure you that the next iteration of insurance contracts will have worldwide pandemics as an exclusion, but right now many of them don’t,” said Robert Zarco, a business litigation attorney that represents franchisees of more than 300 restaurant companies. “We have developed substantial arguments that reflect that there is a strong viable chance of getting recovery considering the language of these policies.”
What type of insurance could possibly cover loss of business due to COVID-19?
While Oceana Grill is one of the first restaurants to file a lawsuit against its insurance company in an attempt to reclaim some of the losses incurred during the pandemic, it will likely not be the last. Below, lawyers answer insurance-related questions that restaurant owners and franchisees might have about their insurance claims related to the COVID-19 pandemic.
Lawyers weigh in on whether restaurants will be able to cash in on business interruption insurance during the COVID-19 panic. As restaurants have shut down across the United States in response to city and statewide coronavirus-related lockdown mandates, business owners are wondering if this disaster is covered under their business insurance protection plans. And while there is likely no pandemic provision (or exception) in any restaurant’s insurance coverage, business owners are hoping for relief in the global health emergency that could result in economic catastrophe. One restaurant, Oceana Grill in New Orleans, along with its parent company, Cajun Conti, has filed a lawsuit seeking a judgment for its insurer to cover losses incurred while most restaurants are closed down in Louisiana. The restaurant is seeking relief based on the fact that their insurance company covers “direct physical loss” from outside forces including “the event of the businesses closure by order of Civil Authority.”
Here’s What Your Restaurant Business Insurance May (or May Not) Cover During the Coronavirus Pandemic
Culver’s seeks to balance new menu options with its “tried and true” items, says Adkins. “We have seen incremental value in our LTO sides like Culver’s Pretzel Bites and Sweet Potato Fries,” he says. The characteristics of a successful snack, he says, are crave ability, portability, quality and uniqueness to Culver’s.
- Jen Biesty, chef and co-owner of Shakewell in Oakland, California
“People are working from home and need a break from the house, so a little snack and a walk in the afternoon is a perfect pick-me-up to get through the day."
The pandemic also has added some new dimensions to the snacking daypart. With more people sheltering at home all day with their families, the demand for afternoon snacks and snacks that can be shared among multiple family members has increased. Some operators have launched new items specifically to fill in this afternoon daypart. Burger chain Farmer Boys has re-launched its No Brainer Deals, intended as affordable snacks and light meals that offer customers the opportunity to sample the variety of offerings on the Las Vegas-based operator’s menu. The offerings include sandwiches and snacks that can be enjoyed any time of day, such as Crispy French Toast Dippers and Fried Chicken Dippers. “Our February launch plans came to a halt at the onset of the pandemic,” says Larry Rusinko, vice president and chief marketing officer of Farmer Boys. “The positive response from our guests during the initial launch period propelled us to reintroduce these eight uniquely designed menu items that are the perfect fit for an afternoon pick-me-up, light breakfast, or if a guest wants to sample a little bit of everything we have at Farmer Boys.”
Afternoon Snacking Expands
- Distributor U.S. Foods in a blog post.
“Diners are willing to take more chances with [appetizers] because they are a smaller commitment than a main entrée.”
Snacks and appetizers, especially as limited-time offers, also provide opportunities for operators to test new flavors, ingredients and menu items, and gauge the response of their guests. Customers are more likely to experiment with snack-sized portions of items, operators say. In line with that observation, street foods from around the world have gained prominence on menus as snacks. These include items from Latin American menus, such as empanadas, and Indian snack foods such as samosas. Operators also can get creative with “loaded” nacho, French fry and potato tot combos as snacks. The Rabbit Hole in Normal Heights, California, for example, offers Abnormal Tot-Chos, which include a base layer of potato tots, tortilla chips and wonton chips, topped with jalapeño cheese sauce, cotija cheese, pico de gallo, salsa roja, cilantro crema and scallions, with the option of adding chicken, ground beef or carnitas.
Opportunities for Experimentation
- Quinn Adkins, director of menu development at Culver Franchising System.
“Every time we have offered Pretzel Bites, the momentum has continued to grow.”
“Smaller portions also mean that strongly flavored or premium ingredients can star.”
As the industry continues to face unprecedented challenges posed by the ongoing pandemic, operators are finding they can help offset some of the their losses by menuing innovative snack and side dish items that cater to the growing consumer demand for all-day noshing.
“We recognize that this menu item resonates with our guests, and we look forward to continuing to leverage its success.”
We'll need to work out a new value equation to enable robust recovery.
Supermarkets are circling. Restaurants are going grocery.
Virtually none of the leading delivery players has a sustainable business model.
Delivery isn’t going anywhere, but some providers will be going to the boneyard. Fact is that virtually none of the leading players has demonstrated a sustainable business model, and while the current situation will provide a lifeline for some, it’s a temporary fix. A looming segment shakeout will come, and will result in a niche occupied by a very small number of the best-capitalized players.
A delivery shakeout is looming.
Supermarkets are circling. For example, in New Orleans, the heart of one of our most vibrant food cultures, Rouse Markets is courting former hospitality employees with a promise to teach them the grocery business. The company is also making meals to go available from some of the city’s most storied restaurants, like the Turtle Soup or Grits and Grillades from Commander’s Palace, and it has purchased a huge inventory of USDA Prime steaks from Dickie Brennan’s Steakhouse to sell in its meat cases. Restaurants are going grocery on us, too. Some Texas Roadhouse units are turning their restaurants into corner stores and providing consumers an alternative to jam-packed supermarket aisles by selling the contents of their pantries and freezers, including freshly-baked bread and the signature honey-cinnamon butter that goes on top. This unexpected and extraordinary cross-fertilization between restaurants and grocers could ultimately yield some interesting long-term opportunities for both.
Lines between restaurants and retail will blur even further.
When they do return, their focus will be on value with a capital ‘V,’ and we’ll need to work out a new value equation to enable robust recovery. Unlike you, I’m not sure premium liquor and fine wine will be part of the package, at least not for most folks outside of Brooklyn. But creative, well-priced cocktails and other adult beverages most certainly will be. And yes, comfort foods will undergo yet another renaissance and revitalization, but so will ethnic foods that appeal to cabin-fevered customers itching for affordable adventure.
Expect “value with a capital V”.
Three food trend predictions from Nancy Kruse
Food from our childhood often takes us to a happy place in our minds.
Products, as morally upstanding as they may seem, are pricier.
An occasional few hours of indulgence are going to happen.
During recessions people do splurge on small luxuries. An extravagant vacation might be out of reach as people tighten their belts, but an occasional few hours of indulgence are going to happen, so it might be wise for operators to invest in premium liquor and fine bottles of wine, because I bet there will be demand for them.
Demand for little indulgences will likely grow.
In 2008-2009, we also saw a rapid decline in sale of cage-free eggs and other products that, as morally upstanding as they may seem, are pricier than some alternatives. If compostable bowls or other low-waste and no-waste items cost more, fewer customers are going to be interested in the medium term.
Virtuous purchases could take a hit.
We’ve seen crises before, and we have a good idea of how people’s palates respond to them. After September 11, 2001, and the financial crisis of 2008, consumers quickly shifted away from highbrow intellectual food in favor of hamburgers and grilled cheese sandwiches and meat loaf and pot pie and ice cream and anything else that would let them just shut off their brains and chew. There are actually physiological reasons that people turn to starchy foods in times of stress. But apart from the effects on brain chemistry, food from our childhood often takes us to a happy place in our minds, and we’re all longing to go there now.
Comfort food will be king.
Three food trend predictions from Bret Thorn
Times of crisis inevitably change the way consumers eat, as they rethink their values around food and return to familiar favorites. So how are recent events likely to impact the way consumers eat in the months, and perhaps years, to come? Here, two menu trends experts — Bret Thorn, Nation’s Restaurant News senior food and beverage editor, and Nancy Kruse, president of the Kruse Company — outline what to expect.
6 Ways the Coronavirus Pandemic Will Change Eating Habits
Restaurant operators are pulling out all the stops to create offerings that will bring customers back in these challenging times. Here are five that are resonating the most.
Customers are responding to creative marketing and menu tactics
Order takeout / delivery today and get a discount to dine-in later
Take-and-bake items
31%
Portion of your order donated to support people affected by coronavirus
29%
Family-sized items that can be eat over several meals
Expanded delivery zones
28%
What would motivate you to get food from restaurants during this time of Coronavirus?
1. Pizza 2. Burgers and Sandwiches 3. Meat entrees 4. Pasta 5. Side dishes
Hearty, classics dishes — especially ones that can stand up to takeout and delivery — are what consumers say they want now. Nearly two-thirds of customers, or 63%, said they are likely to order pizza at this time, with about half, or 51%, saying they want burgers and sandwiches. Here are the five menu items customers want most from restaurants now.
They’re craving comfort food
1. Regularly wiping down tables, kiosks and other surfaces 2. More food covers and sneeze guards 3. Offering disinfectant wipes to guests 4. Employees wearing masks, gloves or hairnets 5. Displaying food safety inspection results 6. More space between tables/no communal seating
As restaurant dining rooms reopen, customers will expect operators to walk the walk as far as cleanliness. Here are the top visual cleanliness cues that survey respondents consider “absolutely required.”
Cleanliness Protocols Will Be Under New Scrutiny
1. Clean and sanitary 2. Great taste 3. Nearby 4. Value 5. Speed
Taste, long the primary factor for choosing a restaurant, has been edged out by cleanliness in the current environment. Here are the top five qualities consumers now look for in a restaurant.
Cleanliness is the Top Priority
Restaurants around the country have shifted to off-premise sales as state and city mandates forced operators nationwide to close their dining rooms. Options range from “contactless” delivery to carefully regimented pickup programs. Restaurants with drive-thrus may have an edge, as survey respondents say they perceive that as the safest approach.
Drive-Thru Service is Viewed as the Safest Restaurant Option
Dining at my favorite sit-down restaurant
41%
Visiting movie theaters, shipping centers, etc.
40%
Meeting friends and family at restaurants
Attending events at stadiums or arenas
23%
Meeting at a friends house for picnics or potlucks
35%
Even though much of the country remains under guidance to stay home and practice social distancing, consumers are eager for the day they can begin socializing over a meal again. Here’s what they’re looking forward to most.
But People Are Eager to Get Back to Dining Out
Concern about restaurant safety is greatest among older consumers, with 77% of baby boomers saying they will definitely avoid eating out. In contrast, 50% of Gen Z consumers said they would be avoid restaurants.
Older Consumers Are More Cautious
More than three-quarters of respondents say that have at least some concerns about patronizing restaurants now, with many of them saying they will eliminate restaurant purchases entirely.
Consumers Are Shying Away From Restaurants
8 ways the coronavirus crisis is impacting restaurant purchasing behavior Consumers are drastically cutting back on restaurant purchases, scrutinizing the cleanliness of operations and seeking solace in familiar comfort foods, according recent research from Chicago-based firm Datassential. While the long-term impact of the coronavirus crisis on consumer behavior has yet to be fully revealed, multiple Datassential surveys taken in late March the pandemic unfolded offer a glimpse into the consumer psyche. Here are eight key insights into the fast-evolving mindset of today’s consumer.
Understanding the New Consumer Mindset
It’s also important to think through how the entire menu can withstand the rigors of travel for off-premises consumption, he says. For example, avoid mixing temperatures in the same container, and package sauces and dressings on the side. “You have think about what that food going to look like after it's traveled for 10 to 20 minutes,” Landers says. Where it’s allowed, operators might also consider interesting ways to bundle alcohol purchases with meals, he suggests. “Think of shareable experiences that fit your cuisine type and allow customers to focus on the shared activity, not just on the fact that there is a global pandemic going on,” he says.
Have Food, Must Travel
- Amanda Young, Director of Pperations at Breckenridge-Wynkoop
“People are looking for a ‘hug’ in their food, and that’s what we are aiming to give them,"
Denver-based Breckenridge-Wynkoop, which is offering takeout from several casual restaurants in Colorado, is conducting a different family meal promotion each day offering mostly comfort-food bundles featuring main dishes, sides, bread and dessert. The meals can feed two, four, six or eight people, priced at $10 per person. “It changes every day based on what the chef wants to cook up,” says Amanda Young, director of operations at the restaurant company. She says that family meals for four have been especially popular. Young notes that comfort foods have long been at the core of all of the concepts, but during the crisis consumers have been particularly hungry for items such as burgers, macaroni and cheese bites and meatloaf at the company’s The Cherry Cricket locations.
One dish in particular that has been a big seller at The Cherry Cricket is a basket of fries and onion rings combined that it calls “Frings.” “That’s probably our most requested dish,” Young says. “It’s not your typical side — and it’s shareable for the entire table.” Group dining is the focus of the menu at Mexicue, the New York-based restaurant chain that recently transitioned to in-house delivery. Its new “MexiCrew” meals, designed especially for takeout and delivery to groups, include Family Meal Tacos for four and a Happy Hour special for 10 with four types of tacos, tortilla chips with a trio of dips, grilled cornbread and a margarita mix. Other meal combos are designed for two, six or eight people. “It's just one click and you get all this food,” says Scott Landers, co-founder of delivery consulting firm Figure Eight Logistics, which helped launch the in-house delivery program at Mexicue. “Plus, your delivery economics are so much better if you have an average check size north of $50 instead of $25. It's an entirely different ballgame.”
Catering to Families
- Bob Reiter, Owner of American Elm
“You could get a steak from American Elm for yourself, a pasta dish for your wife and then mozzarella sticks and cheeseburgers for your kids,”
At American Elm in Denver, the company has combined its bistro menu with that of its food truck and a new concept it recently created called Neighborhood Noodles. As a result, customers can mix and match among the different offerings for takeout or delivery. American Elm had already been serving as a commissary kitchen for its food truck, called Kings County Kitchen, which offers a variety of fried foods, sandwiches, burgers, tacos and appetizers. In addition, the restaurant launched a meal-kit plan so that customers can order pre-cooked, oven-ready meals for one, two or four people. It is planning to make basic grocery items available for delivery and takeout as well. “It comes as no surprise that dishes commonly found in the cadre of ‘comfort foods’ are doing well at the moment, given our collective desire for comfort in a time of ambiguity,” says Aaron Novoshen, founder and CEO of restaurant consulting firm The Culinary Edge and chicken-sandwich chain Starbird. He notes that shareable foods can also provide a way to foster connection among homebound families.
“Meals with family, significant others or roommates can restore our sense of community and connection,” says Novoshen. “All hail the chicken wing basket!”
Offering a Diverse Menu
Now more than ever consumers are seeking comfort foods they can share at home with their families. Offering their favorite, feel-good restaurant items, such as burgers, fries and appetizers, will remind them of the better times when they were able to enjoy dining out together. Even if they don’t routinely appear on the menu, these types of items can also help support operators’ margins during these challenging times. In many cases, operators may be feeding entire families, so offering a diverse menu can help satisfy everyone and avoid the “veto” vote.
American Elm has also been practicing similar safety procedures for its home delivery, which it handles in-house. “Our protocols with delivery are to ring the doorbell, place the bag down in front of the door and then step back at least six feet and wait for the person to receive the order,” says Reiter. The restaurant is also taking the temperature of all workers, he says. Those employees who register a temperature of 100 degrees or higher are sent home for 24 hours or until their fever comes down. They may also be required to obtain a doctor clearance.
Other safety measures include: • Employees must wash their hands every 30 minutes, and sanitize their workstation after each use or every 60 minutes, whichever is shorter. Hand sanitizers are stationed throughout the restaurant. • Gloves must also be worn at all times. • Employees are encouraged to practice social distancing. “It's not always possible because we're in a kitchen, but we're always reinforcing that idea of keeping six feet distance between each other at all times,” says Reiter. “It's really just about trying to keep these best practices in place as we get them from OSHA and the CDC and implement them into our operations,” he says.
Keeping Home Delivery Safe
The pick-up process, which could involve interactions with multiple delivery drivers and customers, is perhaps one of the most overlooked areas when it comes to potential transmission of the virus. However, it is important to consider carefully, says Scott Landers, co-founder of Figure Eight Logistics, a New York-based restaurant delivery consulting firm. Landers suggests instead setting up a staging area where orders are placed on a shelf for drivers to collect themselves, or perhaps handing over orders from behind a bar to maintain some distance between the drivers and employees. At American Elm in Denver, which is offering takeout and delivery of its chef-driven, bistro-style menu, along with the menus of two sister concepts, posts signs outside the restaurant directing customers to call a number to have their food brought out to them to discourage customers from entering the restaurant. “Generally, we try to do as much no-contact takeout as possible,” says owner Bob Reiter.
- Scott Landers, Co-founder of Figure Eight Logistics
“You should not personally be handing every order to every driver,”
Focusing on Pick-Up
Foodservice operators implement safety, health measures to combat spread of COVID-19. The foodservice industry is facing an unprecedented array of challenges amid the rapid spread of COVID-19, but the most important threat restaurants must focus on is protecting the health of their workers and customers. As operators rapidly pivot to focus on delivery and takeout in an effort to prevent the spread of the virus among patrons in their dining rooms, they still have to minimize the opportunity for transmission during the takeout and delivery processes. “Operators must ensure that they are keeping abreast of the evolving pool of information about how the virus is transmitted and the best ways to prevent its spread”, says Aaron Novoshen, founder and CEO of industry consulting firm The Culinary Edge and the Starbird chicken sandwich chain.
Making sure employees are healthy when they arrive at work should be at the foundation of any operator’s safety strategy. Because the COVID-19 disease caused by the coronavirus appears to present itself differently in different people, operators must communicate to their workers the importance of staying home if they have any cold or flu symptoms, or are otherwise at risk of transmitting the disease. “We ask each individual at the start of their shift how they’re feeling, and anyone with symptoms of any ailment—COVID-19 or otherwise—are not given permission to work,” says Novoshen. Starbird also adjusted its operations to ensure that workers are maintaining six feet of distance between each other while performing their job functions, he says.
Healthy Employees
- Aaron Novoshen, Founder and CEO, The Culinary Edge and the Starbird chicken sandwich chain
“We have produced a tremendous amount of signage and way-finding to make these health and safety mandates clear and easy to follow,”
Other steps Starbird is taking include: • Providing hand sanitizer stations at the doors, at its to-go pick-up stations and at checkout stations. All delivery personnel are required to sanitize their hands before handling food orders. • Cashiers are required to wash their hands for 20 seconds after each customer contact, such as when accepting cash for payment of orders. Starbird is quickly transitioning to 100 percent digital transactions, Novoshen says, to eliminate the handling of cash. The company also sends out daily summaries to workers to help them understand changing regulations, inform them of operational changes and to promote programs designed for workers’ health and well-being, Novoshen says. “It’s critical that essential communications are shared in the languages understood by your staff,” he says, noting that at Starbird all essential communications are released in English and Spanish.
Taking Other Steps
“We implement new procedures almost every other day as our understanding of this situation deepens"
- Scott Landers, Cofounder of Figure Eight Logistics
"Always go native when you can, market your own channel, your direct delivery or whatever gets guests to visit your website or call your number or come into your restaurant.”
As a result, operators must be especially conscious of the “voice” they project to the public in all of their communications and marketing, including their take-out menu design and offerings. While many operators have teamed up with third-party delivery firms to help execute delivery, they should strive to promote their own services as much as possible, he says. Landers does not advocate offering free delivery as a marketing tactic because of the high costs involved with providing this service. Consumers have accepted that there is a cost associated with delivery and are willing to pay it, he says. Instead, he suggests incorporating a giveaway or promotion that reinforces an operator’s brand. “If you have these amazing cupcakes, consider an offer like ‘Get a free mini cupcake with your first order,’" Landers says. “It can have the same value as the delivery, but I think you would be more clearly highlighting who you are and what you're about.”
Communicating Who You Are
- Ralph Prestwood, Store manager at Angry Crab.
"Times change, and you have to adapt"
Likewise, many restaurants around the country have been ramping up their employee meal programs to care for their workers who may have been furloughed or had their hours reduced. At Angry Crab Shack in Mesa, Arizona, all employees, who have had their hours reduced to rotating, three-hour shifts, can come in and pick up a free meal for their entire families, a move that can be expected to generate goodwill in the community during troubled times. The 10-unit chain had not been offering delivery at all before the crisis, but has begun using a third-party delivery platform to offer the service. It is promoting its offerings on a banner outside each store and on social media.
Take Care of Your Employees
Aaron Novoshen, founder and CEO of restaurant consulting firm The Culinary Edge and restaurant chain Starbird, points out that restaurants should include messaging about the steps being taken to ensure the safety of customers and employees. This could be posted on the website and updated as often as necessary and the situation evolves. It might also be necessary to reach out to customers simply to let them know that your restaurant is open, as well as the options for ordering delivery and takeout. Novoshen emphasizes the importance of maintaining messaging that shows a restaurant’s support for the the community. “Be human first,” he says. “Think about what service your promotional strategy can serve not just for your balance sheet, but also for your community.” For example, Starbird is planning to roll out a program offering children a free Lil’ Tender Box with the purchase of a regular meal. Starbird is also planning a promotion through which it will donate a free meal to hospital workers for each order of $40 or more.
Emphasize Safety, Community
"Social media, social media, social media"
It’s also crucial for operators to reconsider who might comprise their new customer base. If a business has traditionally drawn lunch crowds from local businesses, for example, it might make sense to learn more about who’s working from home in the area and to reach out to those potential customers. Operators also should consider that homebound consumers will likely be glued to their computers and phones, which makes social media a key platform for operators to promote their off-premises offerings.
“Social media is the quickest way to reach our guests, and it is even helping us keep our teams at work [maintaining the daily messaging], says Amanda Young, director of operations at Denver-based Breckenridge-Wynkoop, which operates The Cherry Cricket casual burger-and-beer concept and a handful of brewpubs in Colorado. ” The company has also been conducting some old-fashioned grassroots marketing, such as distributing paper flyers to local communities within walking distance of its restaurants. Breckenridge-Wynkoop has also found a way to delivery happy hour to people’s homes. Leveraging Colorado’s easing of regulatory restrictions on restaurant sales of alcohol for off-premises consumption, the company has been promoting happy hour discounts on its home-brewed beers.
Know Your New Customer Base
Operators strive to maintain messaging while they focus on delivery, takeout. Foodservice operators seeking to promote their delivery and takeout offerings during the COVID-19 crisis should strive to maintain messaging that showcases their own brand identity. The high levels of in-store service that operators may have prided themselves on in the past need to be translated into the delivery and takeout experience, and reflected in its messaging to consumers.
“Now, more than ever, you're going to have to be differentiated and communicate who you are and what makes you unique—your core brand identity,” says Scott Landers, cofounder of restaurant delivery consulting firm Figure Eight Logistics in New York. “You're not going to be able to ask guests to come in, sit down and be impressed with your service, be impressed with the art on your walls or the music on your speakers. You're a digital company now. You're a ghost kitchen.”
The sales pressures that operators may have to face for months to come must be met with sharp cost-cutting measures. One of the proven ways to achieve cost reductions is through the cross-utilization of ingredients. This strategy eliminates waste of seldom-used items, creates opportunities to purchase fewer items in larger quantities and simplifies inventory management. In addition, featuring the same ingredients in multiple recipes can create labor efficiencies and minimize training requirements as staff become familiar with individual recipe components. Familiar ingredients may also be comforting to consumers at this time, says Webster. “Consumers will be looking for consistency in the face of a prolonged period of anxiety and uncertainty,” she says.
Cross-Utilization of Ingredients
Operators could develop a simple menu of five or six items that maintain their integrity during takeout and delivery.
“Maybe they could sell the most incredible lasagna or the most incredible cassoulet to go, for the whole family,” he says. “They could say, ‘You trust us with your steak, you can trust us with your lasagna, and it’s only $23 for a lasagna for six people.’” Operators could develop a simple menu of five or six items that maintain their integrity during takeout and delivery, and reflect well on their brand. It could be posted on their website and social media as the temporary menu while the dining room is closed. “I think consumers would support that and rally around it,” says Camillo. Operators will need to address their legacy cost structures in multiple ways as they seek to revive their businesses during the pandemic and eventual recovery. Evaluating existing recipes and ingredients to eliminate those items that don’t contribute to both the top and bottom line is one of the strategies that can help.
As operators revamp their menus to optimize for what may be a prolonged period of consumer interest in takeout and delivery, they should probably not stray far from their core competencies, says Ray Camillo, CEO and funder of Blue Orbit Restaurant Consulting. “I don’t think a pizza restaurant should start selling sushi for takeout,” he says. However, there may be opportunities for operators to offer items that travel well that were not a part of their traditional dine-in menus, Camillo says. For example, a high-end steakhouse might be wary of sending an expensive, dry-aged rib-eye out in a cardboard box, but perhaps it could leverage the trust consumers have in its brand to create more mid-scale items that travel well.
New Menu Items
- Anne Mejia, Vice President of Brand Development at Mellow Mushroom
“We don’t want them spending money on food that they can’t sell."
At Mellow Mushroom, the Atlanta-based pizza and sandwich chain, the company had already been conducting an analysis of which menu items were best suited for its online ordering platform, as that has been a growth focus for the chain. “We had already identified some of the categories of products and some individual menu items that either were not being ordered online very extensively, or just didn’t travel well,” says Anne Mejia, vice president of brand development at Mellow Mushroom. “So six weeks ago, we went through the list and said, ‘These items weren’t working anyway, so let’s just make those decisions quickly.’” The company carefully examined slower-moving items and dishes that require extra labor, and gave its franchises the option to remove those items from the menu through mid-May. It also looked at some unique produce items that were used minimally, such as in a single type of salad, and revamped the recipes of those salads to eliminate those items.
Evaluating Menu Items
- Maeve Webster, President of Menu Matters
“Overall, a streamlined menu will work much better operationally for takeout/delivery because it ensures everything going out the door is excellent quality,”
“The first step to rationalizing and optimizing a menu is to take a look at share of sales and share of profits,” says Maeve Webster, president of consulting firm Menu Matters. “Any items low on both should immediately be axed. Items not driving sales and contributing little to profitability are taking time and focus away from the items that do.” Operators should also evaluate their ingredients and products according to how well they maintain their integrity in the delivery process, she says. If there are good ingredient substitutions that won't alter the fundamental characteristics of an item but will travel much better—and are easy to source and don't significantly negatively impact the profitability—then that should be “an easy first step,” Webster says. “Overall, a streamlined menu will work much better operationally for takeout/delivery because it ensures everything going out the door is excellent quality and working to increase patron loyalty, visitation and spend,” she says.
Restaurants need to address legacy costs and eliminate items that don’t boost sales and profits. Operators have been streamlining their menus to focus on items best suited for takeout and delivery, while at the same time seeking to minimize their costs for inventory and production. Simplified menus that utilize versatile ingredients had been gaining traction even before the COVID-19 crisis. But they have become even more important now that driving down costs is critical to survival. Operating with simplified menus also allows restaurants to work with a reduced staff, as many operators have had to adjust their labor models either because of reduced revenues or to maintain social distancing in their facilities.
“We said we are going to make our salads a different way during this period of time, just so operators don’t have to bring in individual SKUs of items,” says Mejia. “We don’t want them spending money on food that they can’t sell.”
Li also offers this tip for restaurant operators: Present the message in a visual way, with graphics, data and photos on websites and social media, to help create a lasting impression among consumers. Junzi, for example, has posted photos of medical workers and first responders holding their Junzi meal deliveries. Likewise, sister restaurants Osteria 166 and Villaggio in upstate New York together launched a new website, stockthefreezer.com, that allows consumers to purchase meals in bulk and also to donate $8 or more to purchase meals for the needy. A running tally of the total number of meals delivered and total number of meals donated is displayed prominently on the website. “It gives [consumers] confidence that a lot of people are doing this,” says Li.
Be Visual
Promotions help bring families together and bolster the vital role that restaurants can play in helping their communities.
Promotions such as these help bring families together and bolster the vital role that restaurants can play in helping their communities weather the crisis. Operators that succeed in providing some level of comfort to their customers during this time can expect to see lasting goodwill for their brand in the long term.
Unique, creative promotional ideas that help bring people together online are another option that restaurant operators should consider. Junzi, for instance, launched a weekly online educational series called Distance Dining, in which customers can enjoy a three-course meal while watching a live Instagram presentation, complete with plating instructions. The focus of the presentations is the intersection of Chinese cuisine with those of other regions of the world. Recent Distance Dining themes have included Chinese-Puerto Rican and Filipino-Chinese. Similarly, Seattle fine-dining restaurant Canlis offers access to a live-streaming pianist online for people to enjoy with their meals. And on Friday nights, it hosts an online bingo game where the winner receives a delivery of groceries from the restaurant, along with a $100 Canlis gift card and two rolls of toilet paper.
Shared Online Experiences
- Junzi Kitchen
“We want to help by making it easier for you to stock your fridge with wholesome, home-style foods."
Among the most effective promotions operators have reported are the promotions of family meals, as households sheltering at home together are dining together more than ever. Research from Datassential found that 29 percent of consumers said that multi-serving or family-sized items would motivate them to purchase food from a restaurant during the pandemic. The Chicago-based research firm offered fast-casual operator Junzi Kitchen in New York as one example of a restaurant that created family meal promotions just for the pandemic. The Junzi Family Meal includes larger portions of its vegetables, proteins and sauces, while the Junzi à la Carte offerings allow consumers to order individual menu items by the pint or by the quart. “As everyone does their part in slowing the spread of the virus with social distancing, we want to help by making it easier for you to stock your fridge with wholesome, home-style foods,” the restaurant says in its promotion for the new offerings.
Support for Families and Communities
Promotions that illustrate local support, provide meal solutions take the driver’s seat. Operators are revamping their communication strategies during the COVID-19 pandemic to highlight their community connections, showcase family meal solutions and remind consumers of their efforts to protect customer health and safety. Restaurants around the country have transitioned to focus exclusively on off-premises consumption, whether through takeout, curbside pickup or delivery. Promotion of these options often seeks to convey operators’ social distancing efforts, such as contactless delivery and curbside pickup in which groceries are placed directly into customers’ trunks without them having to leave their cars. Maeve Webster, president of consulting firm Menu Matters, suggests that restaurants create messaging that reinforces the shared community experience during the crisis.
In addition, Junzi provides a platform for customers to buy the operator’s signature bowls to donate to individual healthcare workers and first responders in the New York area. Junzi had donated 1,500 meals through the Share a Meal program as of April 24, according to its website. “Think about what you can do for your community, and message it,” says Jack Li, of Datassential. “It really is the one thing that people are going to remember the most.”
“Consumers now have a much greater sense of community and social bonding,”
On the other hand, operators should resist the temptation to merchandise profit-killing, ultra-low prices to drive traffic. “It may provide a short-term boost, but the longer the price remains low, the more an operator's image and perceived quality is negatively impacted—‘if it's cheap, it must not be great’—and those price discounts are often a hole nearly impossible to climb out of once patrons are trained to expect the low price,” Webster says.
“Consumers now have a much greater sense of community and social bonding, so messages focusing on ‘we're in this together’ as a tone will resonate emotionally,” she says. She suggests highlighting how customers’ purchases help the restaurant support families in need, or first responders or medical personnel, for example. She also recommends discussing how restaurants support the local economy by helping keep people employed. Solutions-based messaging will also resonate, Webster says. This could include promoting the ability to save time by ordering prepared meals, for example, or the opportunity to learn new skills by ordering meal kits from restaurants.
In It Together
Customers are looking for evidence that restaurant operators are taking a consistent and comprehensive approach to implementing food-safety efforts, says Francine Shaw, CEO of consulting firm Savvy Food Safety. The best vehicle that operators can use to communicate the safety of their operations is their store-level employees, from the bottom to the top, she says. “To inspire confidence in their customers, companies first must inspire confidence in their employees,” says Shaw. “Customers must see all critical components of the COVID-19 prevention system occurring—not just sometimes, [but] every time.” That includes hand-washing, the usage of single-use gloves and hand sanitizer, and the disinfecting of high-touch surfaces. These activities must be conducted “consistently, throughout the establishment by every single individual that is working,” she says.
Employees Send a Message
All operators will be in the same boat in terms of having to invest in these safety measures, says James O’Reilly, CEO of Smokey Bones Bar & Fire Grill, the Aventura, Florida-based barbecue chain. “The things that the industry has to do—and Smokey Bones will be doing to maintain the trust of our guests, including investing more in sanitation and cleaning to meet the needs of our guests and employees—are now a part of doing business, and we accept and embrace that,” he says. At Smokey Bones, for example, safety precautions will be highly visible to consumers as the company prepared to reopen its restaurants. Those include the removal of table condiment dispensers for cleaning after each table is cleared and the display of signage throughout the restaurant. Operators clearly should anticipate that many consumers will be wary of entering restaurants for some time to come, and they will expect to see visual evidence that operators are going out of their way to provide a safe environment.
A Cost that All Will Bear
While operators have become accustomed to guarding against food-borne illness and communicable diseases such as norovirus, preventing COVID-19 presents new challenges, she says. One of the biggest is the fact that workers can be infected without showing symptoms. “Hand-washing is the No. 1 way to prevent both foodborne illnesses and COVID-19 from spreading. However, the similarities end there,” says Shaw. “COVID-19 is going to require an entirely new training system to protect employees and customers.” Both rank-and-file employees and management must understand the facts about the illness and how it spreads, she says. “Everyone on every level must be educated about the disease, the symptoms, personal protective equipment—what equipment is deemed necessary, when and how it will be issued, when and how will it be disposed of,” she says.
New Challenges from COVID-19
• How will operators manage and enforce maintaining the proper distance between customers? • Who will wear face coverings—employees, management, etc.? • What will the check-in/check-out process be for employees, where will it take place and what will be the criteria for allowing employees to work?
Operators need to show they have comprehensive COVID-19 protections in place. Protecting the health and safety of customers has long been an essential, yet largely behind-the-scenes aspect of restaurant operations. However, it has become the primary focal point of communications in the era of COVID-19. Consumers are looking for clear evidence that operators understand the importance of adhering to strict safety protocols, especially as more restaurants open their dining rooms to limited in-store service. Recent consumer surveys by research firm Datassential confirm that consumers are willing to tolerate some inconveniences as operators take extra precautions to ensure their safety and protect the health of their workers.
For example, 83 percent say they would support strict enforcement of limiting seating capacity, Datassential says. At the same time 81 percent say they endorse the mandatory use of hand sanitizer, and 77 percent approve requiring customers to wait outside for their to-go orders. Over the last several weeks, consumers have come to expect that restaurants should be able to clearly demonstrate that they have health and safety issues under control, says Jack Li of Datassential. “As we start opening back up, show us that you’ve figured it out,” he says. “It can’t be a scribbled note taped to the window anymore.”
Managers must be seen to be following the same safety procedures as other workers, Shaw says, adding that she has sometimes observed restaurant managers flouting the health and safety rules that they require the rest of their employees to follow. “Customers notice, and it lowers their level of confidence in the brand,” she says. “While they may have accepted this behavior before, I do not believe they will find it acceptable on any level with the current COVID-19 situation.”
“Hand-washing is the No. 1 way to prevent both foodborne illnesses and COVID-19 from spreading."
- Francine Shaw CEO of Savvy Food Safety
“Policies and procedures need to be developed and strictly enforced, and training programs will have to be created,” says Shaw.
In addition, procedures need to be established and training implemented for disinfecting high-touch areas such as toilet handles, door handles—in both the front- and back-of-the-house—restroom stall latches, faucet handles, kiosks, walkie-talkies, phones, cash registers and dining room chairs. Some of the key questions Shaw suggests that operators consider:
Some operators have gotten creative with their outdoor dining opportunities by offering activities such as drive-in movies. Anthony Rapillo, owner of V Pizza in Cary, North Carolina, has been setting up a movie screen in his restaurant’s parking lot four nights a week at sundown. V Pizza shows a family-friendly movie to guests, free of charge, first come, first served. “People needed a ‘win,’” says Rapillo. “They have been stuck in their house, and they needed something to do.” The restaurant is careful to follow guidelines around social distancing, he says, with cars spaced six feet apart, and customers are not allowed to bring lawn chairs or otherwise congregate outside of their vehicles. Guests can order food from the restaurant if they choose—no purchase is required—and servers deliver orders to their cars.
Movie and a Workout
Rick Camac, dean of restaurant and hospitality management at the Institute of Culinary Education, offers some advice for operators planning to expand their operations to include al fresco dining service:
Considerations for Outdoor Dining
“It sounds ridiculous that you are going to sit in a parking lot and watch a movie, or that you are going to go do a workout at a pizzeria,” Rapillo says. “But if you can connect with people and get them to come out and support what you are doing, then why not?” Other operators are finding ways to expand their outdoor seating onto sidewalks, greenways and parking lots. At Salvage BBQ in Portland, Maine, which recently closed for two weeks after one of its employees tested positive for the coronavirus, the restaurant was planning to reopen with a new outdoor seating area with seating for 96 people—13 tables for six—that will be protected under a tent. The restaurant worked with its landlord and the adjacent hospital to set up the tables on a 20-foot by 100-foot section of the parking lot that had been used for hospital parking. The area will be serviced by a pass-through window to the Salvage BBQ kitchen, which minimizes trips in and out of the restaurant. “We will try, no pun intended, to ‘salvage’ some of the season,” says Jay Villani, a partner in Portland-based Local 188 Restaurant Group, the parent of Salvage BBQ.
Restaurateurs look to al fresco dining to help boost sales as they continue to wrestle with COVID-19. As the nation gradually acclimates itself to the pervasive COVID-19 pandemic, most states have begun allowing restaurants to open outdoor dining spaces. In fact, some states have initially allowed restaurants to open for outdoor dining only. As a result, many local municipalities are seeking to make it easier for operators to offer this service by relaxing regulations and closing some public streets to accommodate new areas for outdoor seating. Operators report that many customers are choosing to sit outside, perhaps out of lingering concerns over the possible transmission of the virus.
“The outside dining is what people are going for,” says Ted Lescher, general manager of Lucky’s Burger and Brew in Roswell, Georgia. Lucky's Burger and Brew has an outdoor patio and a large yard that has been converted into a dining area with the addition of some widely spaced picnic tables. “Normally, people fill up the inside, then they go outside,” Lescher says. “Now it’s just the opposite.”
Rapillo launched the screenings with a low-budget set-up, but he quickly decided to invest in a high-quality screen, speakers and a high-definition projector when he saw how popular the movies were becoming. “Almost every night, we have to turn cars away,” he says. In fact, in-car dining has become much more widely accepted during the pandemic, said Jack Li of research firm Datassential in a recent webinar. “We are seeing things like parking-lot picnics,” he said in the webinar. “Keep in mind that the car is a more important part of the way people eat and the way they get food. You may want to think about food that is made to be eaten in the car.” V Pizza also recently added another outdoor activity—outdoor fitness workouts, led by some of Rapillo’s personal-trainer friends. The outdoor workout sessions are followed by complementary beer from local breweries, which sponsor the events, and free chicken wings courtesy of V Pizza.
“...the car is a more important part of the way people eat and the way they get food. You may want to think about food that is made to be eaten in the car."
- Jack Li Datassential
• Maintain your focus on the health of both employees and guests. “It may be easier to comply with rules and regulations inside your restaurant. Monitoring an outdoor area can be much more difficult—and we really don’t want to have to monitor our guests anyway,” says Camac. • Consider how you will respond to various weather conditions, including rain and excessive heat or cold. Table umbrellas may not be sufficient to protect guests in a heavy rain, he says. Also, be conscious of dishes becoming too warm or too cold, depending on the outside temperature. • Be conscious of theft. “It’s easier for guests to 'duck out' on a check outdoors,” says Camac. “Restaurants are going to have to rethink how they manage outside tables.”
Jenny Dorsey, a culinary consultant based in New York and Los Angles, suggests that operators uncertain about how to operate in their outdoor space test the waters with a “friends and family” practice meal for invited guests. Among the considerations are how servers go back and forth to the kitchen while maintaining social distancing, and how consumers access the restrooms. In the meantime, operators anxious to return to normal should continue to use caution as they start up their businesses—outdoors and indoors—once again.
Convincing customers that it’s safe to come back to dine inside a restaurant is another critical challenge operators across the country are facing. “We are challenged by the public’s perception of coming out and eating in the first place,” says Terry Letson, chef-owner of Fumé Bistro & Bar in Napa, California. He notes that much of the restaurant’s customer base historically has skewed older, with many customers in their 50s, 60s and 70s. “They are the last segment of the population going out to eat,” says Letson. “We haven’t seen a whole lot of them returning, and that’s definitely a challenge.” Luckily, Fumé was able to get a marketing boost in the form a free publicity—the restaurant drew the ire of local officials in May after it reopened its dining room before it was allowed. The news coverage in the surrounding counties put the restaurant on the radar of new customers, Letson says.
Rethinking Marketing
- Jeff Melnick, president of Boston’s Pizza Restaurant & Sports Bar
"Those third-party firms have really become a vital source [of sales], whereas it was a marginal source in the past."
Among the lessons learned during the crisis, Melnick says, has been the importance of making certain that the agreements with third-party ordering and delivery services make financial sense for franchisees. These services often not only add a surcharge to customers, but often charge fees of 25 percent or more to the the restaurants as well. “Those third-party firms have really become a vital source [of sales], whereas it was a marginal source in the past,” he says. “The costs can start eating you up.” As a result, the company was careful in scaling down its menu for delivery to ensure that its operators could still make a profit on their sales through the third parties. In addition, some of the firms waived their fees, and others worked with Boston’s individual franchisees to help them with their costs, Melnick says.
Rethinking Third-Party Partnerships
Restaurateurs struggle with pressing operational, health demands amid COVID-19 pandemic. Closing a restaurant or a chain of restaurants is much easier than reopening one. That’s the hard truth operators around the country are confronting as customers begin returning to their dining rooms amid the COVID-19 pandemic. After several weeks of offering delivery and takeout only—if they were even operating at all—restaurants are confronting challenges around rehiring staff, rethinking their menus and operations, and above all protecting the health of their workers and customers. The fact that the virus is still circulating, and a vaccine appears to be months away at least, remains a constant threat, operators say.
Other challenges Boston’s Pizza Restaurant & Sports Bar and other operators have faced include supply shortages of certain ingredients. “That forced us to be very nimble on finding alternate product that meets our quality standards and to make sure we have enough product to go around,” says Melnick.
"Our operators have shown that kind of empathy, care and concern for what really is their extended family"
For the foreseeable future, he says he plans to staff the restaurant using a “pod” system in which employees work only within certain groups, and each group is staffed together on separate shifts. That way if an employee becomes ill, the risk of spreading the infection will be limited to those within that worker's pod. The response from the community to the restaurant’s actions has been “overwhelmingly supportive,” Villani says. “There’s always the fear that you might become ‘that COVID restaurant,’ but thankfully, our customers can’t wait until we get back at it,” he says. Rehiring employees who have been furloughed is another challenge many operators have faced—especially when unemployment benefits have been generous and the risk of infection remains a concern.
Jay Villani, a partner in Local 188 Restaurant Group in Portland, Maine, recently had to cope with an infected employee at the company’s Salvage BBQ restaurant, and decided to shut down for two weeks out of an abundance of caution. “We chose to close out of concern for our employees and our community,” he says. “It’s such a heightened and uncharted time, especially for our industry. We just took the action that we thought was right.” The restaurant was operating with a skeleton crew at the time, and all the workers had been in close contact with each other. No other workers have tested positive for the coronavirus, however, and Villani was preparing to reopen with a new system in place.
Rethinking Staffing Practices
- Jay Villani, Local 188 Restaurant Group
Jeff Melnick, president of Boston’s Pizza Restaurant & Sports Bar, a casual-dining chain that operates throughout North America, says some of the chain’s franchise operators initially struggled to bring workers back on board as they sought to reopen. The success that operators have experienced as they have welcomed guests back to their dining rooms has helped, however, as servers learn that sales, and thus tips, are returning. “It has been important to ensure that workers had a safe environment that they could return to and that they could make money doing so,” says Melnick, who notes that remaining in constant communication with workers throughout the crisis has been critical. “Our operators have shown that kind of empathy, care and concern for what really is their extended family,” he says.
“They saw us on TV and they knew we were open,” he says. “That was a boost.” The lesson is not for operators to violate the law for publicity, but to look for new opportunities beyond the established customer base, while continuing to reach out to established customers. Perhaps the biggest lesson from operators who have overcome challenges is that ingenuity and perseverance can yield results. “I told my wife when the pandemic hit, this wasn’t quite what I had in mind when I was thinking about exit strategies,” says Villani of Salvage BBQ. “But now, we are determined more than ever to make it work.”
• Make sure you have a blend of customer favorites based on sales mix reports. “Think of your new menu as the ‘greatest hits’ of your prior menu,” he says. • Remove low-margin items, or switch out ingredients to make items more profitable. • Delete slow sellers from the menu. “You need to turn over product, and "produce less waste,” says Camac. • Purchase ingredients that can be used in different recipes and/or different dayparts. • Focus on dishes that are easy to execute to minimize labor costs.
Rick Camac, dean of restaurant and hospitality management at the Institute of Culinary Education, offers tips for operators rethinking their menus to minimize costs:
Tips for Menu Optimization
of consumers say they would opt for indulgence over health considerations when they return to restaurants.
Research from Datassential shows that 78.5 percent of consumers say they are interested in ordering a familiar favorite from the menu on their first trip back to a restaurant, indicating that operators should seek to ensure those items are available. In addition, 68 percent of consumers say they would opt for indulgence over health considerations when they return to restaurants, and many say the feelings they most looked forward to when dining out were relaxation, joy/enjoyment and satisfaction. But while customers will likely seek out their favorite, familiar dishes, they are also likely to be forgiving if operators open with a streamlined or slightly different offering. “One upside right now is that guests will give you a lot of leeway to try new things,” said Brantley of McCain Foods. “This is one time where things don’t have to be perfect.”
Returning to Familiar Favorites
While signature menu items help to differentiate a restaurant from the competition, they often come with a cost to the bottom line, he says. Those profits can frequently be made up through the sales of alcoholic beverages and other drinks, but with the increase in off-premises consumption that has become a more difficult challenge. Instead, operators can look to high-margin items such as appetizers to drive increased profitability, Brantley says. Consider appetizers such as crispy zucchini, battered mushrooms, tempura green beans or fried pickles to provide a high-margin and enjoyable experience for guests, he says. They also present an opportunity to showcase veggie-centric fare, which appeals to consumers when they dine out, he adds. “So, if you're offering deep-fried cauliflower tossed in a Korean barbecue sauce, not only do you give your guests a chance to explore the global landscape a bit, you’re also meeting a need that they may not take care of on their own,” says Brantley.
Operators must closely monitor costs, revenues of menu items as restaurant dining moves to the next phase. After many restaurants around the country optimized their menus for takeout and delivery, they have begun expanding them again as states and local municipalities loosen restrictions on in-restaurant dining. The “new normal” of restaurant dining will probably be nothing like the “normal” that customers were used to, however, and the weeks and months ahead may require restaurateurs to operate with reduced revenues and a critical need to control costs. “Margins are often razor-thin, and the current crisis is not making things any better,” said Brooke Brantley, director of culinary, North America, for McCain Foods, in a recent Instagram broadcast.
Johnny Hernandez, chef-owner of Grupo La Gloria in San Antonio, who was a guest on one of Brantley’s recent Instagram broadcasts, said operators need to carefully consider their menus as they reopen. “If you don’t re-engineer your menu properly, that’s going to be a major pain point in terms of driving down food cost and labor cost,” he said. “You have to really pay attention to what the new norm is for customer wants and desires.”
Jenny Dorsey, a culinary consultant based in New York and Los Angeles, says operators can begin the menu optimization process by looking at every raw ingredient brought into the kitchen, and taking note of every dish in which it is used. Ingredients that are seldom used can be considered for elimination. “If you have a beef tartare, can you make it without the quail egg? That should be part of the conversation,” she says. If there’s not a suitable substitute for a seldom-used ingredient, operators may consider removing the dish temporarily and potentially bringing it back in the future, Dorsey says. It is also important for operators to regularly analyze the actual costs of all the inputs required for each dish. “You need to have a system in place for doing actual food-margin checks,” says Dorsey. “You need to make sure that a plate that is supposed to have a 23 percent food cost has not inched up to 27 percent because someone is putting an extra peach on it, or because the price of an ingredient has gone up.”
68%
Thanks to an existing relationship between Fine, Chris Shepherd, Underbelly's owner and executive chef—a James Beard Award winner who is widely involved in the local community—and Randy Evans, director of culinary development at H-E-B, the partnership has proved to be a success, driving strong sales through the retailer’s stores. Other retailers that have partnered with local restaurants to provide meal solutions include Cincinnati-based Kroger Co. and Grand Rapids, Michigan-based SpartanNash, which operates stores under the Family Fare name and other banners. Kroger has partnered with local restaurants in multiple markets, including Houston, where it has been hosting pop-ups with Creole fried chicken chain Frenchy’s. Among the offerings have been fried chicken sandwiches with French fries and Frenchy’s popular Boudin Rolls.
Building Relationships
Likewise, H-E-B provided assistance for Underbelly, says Fine. Underbelly had furloughed 187 of its 200 employees, leaving 13 of its managers to prepare 600 meals or so per day for 16 H-E-B stores where they are offered. “They were super gracious, and super calm and patient with us, since we had never done mass production or packaging,” says Fine. Underbelly has been offering modified versions of several signature dishes, including its famous Korean Braised Goat Dumplings, which have been revamped to include beef instead of goat. Other dishes include King Ranch Chicken, which is a regionally popular casserole; a version of its popular Lamburger Helper that is made with Wagyu beef instead of lamb; and a Vietnamese Green Chicken dish that’s a nod to the large, local Vietnamese population.
Offering Assistance
David Ringler, director of happiness at Cedar Springs Brewing Co., a German-influenced brewpub in Cedar Springs, Michigan, says his company’s partnership with SpartanNash has helped it introduce its German Bavarian dishes to a wider audience. “We discussed with our team dishes we could present from our menu that would travel well, that would be relatively easy to prepare and that would still taste great,” he says. Menu items from the brewpub’s kitchen have included Personal Pretzels, Biergarten salat (salad), Bratwurst Teller (plate), Jägerschnitzel and Baked Spätzle. SpartanNash provided expertise from its own team to assist the local restaurants with quality assurance, food safety, labeling and merchandising, says Dan Estelle, director of meat and seafood, SpartanNash.
Marketing to a Wider Audience
Grab-and-go retail versions of foodservice menu items help keep some operators afloat. The pandemic has led some restaurant operators to form strong relationships with the same companies they have long been competing against for consumers’ share of stomach. Across the country, supermarket retailers have helped local foodservice operators remain afloat by offering restaurant-prepared meals and meal kits in their stores. In some cases, such partnerships had already existed for the sale of restaurant-branded grocery items. But many restaurants have entered new territory with meal solutions that help keep their staffs employed and expand their customer reach.
Restaurant, Grocers Partner on Retail Meals
In the Houston area, for example, several restaurants partnered with regional grocery chain H-E-B, regarded as one of the premiere supermarket operators in the country, to offer heat-and-eat meals. “I speak for several restaurant groups and individual restaurants here when I say that H-E-B saved us,” says Nick Fine, culinary director of Underbelly Hospitality, which operates multiple restaurant concepts in Houston. “They were our lifeline.”
SpartanNash partnered with eight western Michigan restaurants to offer heat-and-eat meals in the retailer’s deli departments and meal-solution cases. Like H-E-B, SpartanNash is offering the restaurant meals at no markup so that the full proceeds of each sale go to the restaurant operators. “Being able to provide food for the grocery stores is also allowing us to open up for carryout, which enables us to bring back all of the cooks and the service staff,” says Christina Post, general manager at Anna’s House, a diner-style chain with eight locations in Michigan, in a video posted on SpartanNash’s website. Anna’s House has offered several dishes through the partnership with SpartanNash, including Monkey Bread, Sweet Potato and Brussels Sprout Hash, Healthy Baked Oatmeal, Chicken Tater Tot Casserole and Breakfast Meatloaf.
“We discussed with our team dishes we could present from our menu that would travel well..."
- David Ringler Director of Happiness at Cedar Spring Brewing Co.
“The partnership with H-E-B has not only helped drive revenues for Underbelly, but also for its suppliers."
- Nick Fine Culinary Director of Underbelly Hospitality
The partnership with H-E-B has not only helped drive revenues for Underbelly, but also for its suppliers, Fine says. For example, the local supplier that provides the dumplings for the Korean Braised Goat Dumpling dish has seen its volumes increase substantially because of the retail sales of the product. “Because H-E-B is doing this, his business is better as well,” says Fine of the supplier. It has also been rewarding for the Underbelly staff to be able to provide some enjoyment for the customers who have been buying the products in the supermarkets, he says. “We’re trying to bring some comfort into people's homes,” says Fine. “Even if they can't come into our restaurant, it’s really important for us to be able to do that, and it gets us through the day, too.”
Driving Supplier Sales
The fact that Underbelly’s products can’t be replicated perfectly for retail sale is actually encouraging, says Fine, and bodes well for the long-term future of restaurant dining. “We got as close as we could to restaurant quality,” he says. “But it’s just never going to be as good as it is in a restaurant.”
• Get Creative with Beverages. The ability to merchandise alcoholic beverages for off-premises consumption has helped many operators increase order sizes where laws have been modified to allow for this. One creative way operators are encouraging off-premises drink sales is to feature virtual happy hours, which incentivize customers to order appetizers and drinks while enjoying a music or video feed from the restaurant. Operators with signature craft drinks also can showcase these beverages in their promotions for off-premises dining. Wine-centric restaurant Arden in Portland, Oregon, has been hosting virtual wine tastings during the pandemic, focusing on wines from a different region each week and led by the restaurant’s sommelier and owner, Kelsey Glasser. No purchase is required, but the restaurant offers the wines for sale and announces the following tasting a week in advance. To encourage non-alcoholic beverage sales, operators can consider merchandising bulk beverages that can quench the thirst of the whole family, such as gallons of iced tea or lemonade, as add-ons to family meals. Placing impulse displays of beverages at the point of pickup for take-out orders is another tactic deployed by operators. These can take the form of glass-door coolers in the takeout area, or a simple shelf displaying a row of bottles or cans of beverages available for takeout. • Bundle Groceries with Takeout Orders. Many operators have leveraged their inventories to launch retail sales of grocery items, from eggs and fresh produce to high-end steaks and seafood. Operators have an opportunity to encourage consumers to order meal components at the same time they are ordering meals to save them from having to make another trip out of the house, says Bruce Reinstein, a partner in consulting firm Kinetic12. “If I’m operating an Italian restaurant that makes the best Bolognese sauce around, I can promote that as an additional item for customers,” he says. “If they’re coming in for a Penne Bolognese, the restaurant should be offering Bolognese sauce by the quart, which allows you to get two meals out of the customer instead of one.” • Leverage Curbside Pickup. Reinstein says offering curbside pickup is also helping to drive higher checks because many customers appreciate the contactless nature of the service. “There's a certain comfort level as far as safety and sanitation is concerned,” he says. “Delivery is not going away, but delivery is convenience-based. Curbside service offers the ability to have restaurant quality food at home. I consider them totally different, and it will naturally raise the check because customers want restaurant quality food.” • Offer Gift Cards. During the pandemic, many consumers have been unable to take their friends, family or co-workers out for meals as much as they previously had—if at all. This presents operators with an opportunity to encourage their customers to buy restaurant gift cards instead as an alternative way to share meals, says Rajat Bhakhri, co-founder of Incentivio. “This can be a huge revenue source,” he says.
- Sashika Dias Co-Founder of Incentivio
"During the pandemic, we've seen all of our customers on average increase their average order size by 50 percent."
"During the pandemic, we've seen all of our customers on average increase their average order size by 50 percent,” says Sashika Dias, co-founder of Incentivio, a supplier of white-label digital technologies to restaurant companies. Incentivio is currently testing a suggestive-upselling and cross-selling solution for restaurants that leverages artificial intelligence and machine learning. The technology will analyze data from all previous orders that have been placed at the restaurant to suggest add-ons that best complement each customer’s order. The potential for such data-driven upselling is one of the chief reasons McDonald’s last year acquired Dynamic Yield, a technology company specializing in machine learning that provides personalized product suggestions to e-commerce shoppers based on a range of variables.
Exploring Data-Driven Upselling
Operators can incentivize add-ons that enhance the customer’s experience. As operators around the country were forced to shutter their dining rooms during the COVID-19 outbreak, many discovered that they could drive higher check averages for takeout orders by offering bundled family meals. These supersized offerings proved to be a natural fit for households populated by homebound parents and children with few activities to interrupt their mealtimes. In fact, many operators have reported higher check averages for takeout orders during the pandemic than they had previously experienced, in part because of these bundled meal deals that often combine entrées, appetizers, sides and desserts.
Restaurants have good reason to explore data-driven solutions for upselling. Leveraging data analytics to create individualized communications with customers can drive a 5-percent increase in incremental sales among loyalty program members, according to research from Boston Consulting Group. That’s in addition to enjoying the benefits of having a loyalty program in the first place. While few operators have the resources of a McDonald’s to acquire their own artificial intelligence companies, and many lack loyalty programs that automate upselling and cross-selling, there are actions they can take to encourage increased spending among their takeout and delivery customers. Following are a few suggestions:
Restaurants can encourage customers to buy gift cards by offering small incentives, such as a free appetizer, adds Dias. The bottom line when seeking to drive higher off-premises checks is that operators need to deliver something that benefits the customer in some way. “It’s really all about creating a great guest experience,” says Dias.
• Rethink your catering menu. Demand for individually packaged meals has increased fivefold. Boxed lunches are especially popular, but be sure to label items clearly. • Be everywhere online. Feature online ordering prominently on your website so customers can find it easily. • Ensure smooth (and safe) deliveries. Inform your customers about how you are keeping your staff and customers safe, such as mask and glove requirements. For contactless delivery, coordinate a drop-off location and delivery time with customers beforehand, and have your driver call or text when they are getting close. • Lower lead time to three hours or less. Fulfilling last-minute orders is operationally complex. Search volume on ezCater has increased for last-minute orders; 28% of searches are within four hours of the event. • Lower the order minimum and expand the delivery area. An order minimum of $50 or less will attract more customers who need smaller orders—and who may return with larger orders later. Expanding your delivery area to 10-20 miles will also increase the number of customers you can serve.
- Jamie Howe, director at Datassential
"Crowd pleasers like barbecue, pizza and Italian dishes are popular."
Jamie Howe, a director at Datassential, says that, in general, familiar comfort foods have been the most popular catering-menu offerings from restaurants. “Crowd pleasers like barbecue, pizza and Italian dishes are popular,” she says. “We also see growth of less common catering items like Mexican—quesadillas, tacos, burritos—and burgers and crispy chicken.” Among appetizers, salads, wings and chicken strips have been the most popular catering menu items, and dips such as hummus, queso and spinach-artichoke have been growing. And among side dishes, hash browns are the top trending menu item, according to Howe. “If virtual meeting catering is a possibility in this new world, [hash browns] could be an opportunity,” she says.
Catering Comfort Food
Operators seek out opportunities and create offerings that meet today's catering needs. Just as operators have had to reassess their business models to optimize takeout and delivery services during the pandemic, they must also rethink their catering services. With the fall and winter holidays approaching, restaurants that would normally be booking large, lucrative corporate parties are instead looking for new opportunities to capture some of those lost revenues. Foodservice operators should be thinking about potential new partnerships and creative ways they can leverage family and other gatherings, says David Alvarez, a veteran chef who operates his own catering and consulting business in the Sacramento, California, area.
The most popular sides include salads, rice and mashed potatoes, but French fries and macaroni and cheese have also been trending. Mac and cheese in particular presents opportunities for catering menus, Howe says, by virtue of its “foodie-friendly” variations when made with protein add-ins and premium cheeses. Hand-held desserts such as cookies have historically been the most popular dessert items on catering menus. But donuts and churros have been gaining favor among consumers and could offer caterers a point of differentiation as a dessert with sauces—provided they are offered in individual portions. Alcoholic beverages might also present an opportunity for catering menus, with mimosa, margaritas and punch all trending upwards. Wine has been trending down, but beer has grown nearly 10% on catering menus in the last four years, according to Datassential.
Alvarez is partnering with a wedding venue called Field & Pond in Winters, California, to use the 80-acre, picturesque site as a bed-and-breakfast and a destination for family “stay-cations,” which he will cater as a contracted private chef. “I think any caterer or any restaurant should be looking at opportunities to do private chef gigs,” Alvarez says. “Go to someone's house for a small party of four or five—it’s another way to keep your name in the public eye.” Another idea, he suggests, might be for operators with food trucks to partner together and create their own events, provided they operate within local health and safety guidelines. Several operators have pivoted their corporate-catering services to focus more on family gatherings and other social events, such as church dinners or book-club meetings.
- Christi Christian, Synergy Restaurant Consultants
"Food still connects people."
Christi Christian, a specialist in marketing on and off-premise sales at Synergy Restaurant Consultants, suggests that operators identify where and how people are gathering in their area—whether it’s neighborhood picnics or Zoom business meetings—and create catering packages that meet those specific needs. Office parties or meetings that take place via videoconference from multiple locations can still be catered by delivering box lunches to each person individually, for example. “It can still be fun,” she says. “Food still connects people.”
“COVID has really changed the game here,” says Howe. “Our research shows that people will consider ordering alcohol-to-go after COVID, whereas before they hadn’t.” Among non-alcoholic drinks, standbys including water, tea, soda and lemonade are catering-menu favorites. But trending beverages include ginger ale, strawberry lemonade, green tea, sparkling water and sweet tea, the latter a nod to the trend toward an interest in Southern foods, Howe says.
With offices reopening and social gatherings becoming more commonplace, operators should expect more demand for catering orders, says Mike O'Hanlon, head of the catering partner business at ezCater, a marketplace for business catering. “Higher margins, higher order values and incremental brand exposure make catering orders more valuable to restaurants than ever,” he says. O’Hanlon offers the following advice to help operators make the most of catering opportunities in 2020:
Preparing for the Future
“Be on the watch for when face-to-face meetings start becoming a reality again,” says Christian of Synergy Restaurant Consultants. “Be ready to pivot back, with items using high-quality ingredients and menus that appeal to multiple dietary preferences, because that was the trend before this happened.”
