Loyalty Programs: The Profit Behind the Rewards

The phrase “customer loyalty program” often brings to mind images of punch cards and freebies, but loyalty programs have evolved through the years into so much more. Technology and data mining techniques have turned the programs from cheap promotional tactics into big data goldmines that allow smart establishments to tailor their marketing to each customer.  In this article, we’re going to take a look at the different types of loyalty programs, why your restaurant needs one, and the best practices for implementing it.

How it works

In the restaurant industry, there are two basic types of loyalty programs: points based systems or tiered systems. Points-based systems reward customers for dollars spent or frequency of visits, while tiered systems benefit long-time customers by awarding them special access and exclusive opportunities.  To determine what type of system would work best at your restaurant, consider which behaviors you would like to reward.

Why You Should Implement a Loyalty Program

The numbers are in and they show that it is much more lucrative to focus on creating loyalty in your customers than gaining new customers. A study by Bain & Company reported that a 5% improvement in customer loyalty can increase lifetime profits by as much as 95%. Even more, a whopping 70% of customers who participate in loyalty programs report purchasing more.  New business is great but it costs more to acquire a new customer than retaining an existing one: in some cases, up to 6 or 7 times more.

Some restaurants who have implemented loyalty programs have also seen a reduction in attrition and an increase in referrals.

The kind of loyalty that influences the frequency of a customer’s visits occurs when customers relate to a dining establishment. Take a look at the demographic that you would like to focus on and make sure that your business positioning and processes align with those of that demographic. Creating a customer persona could be helpful during this process. Customer personas are fictional, generalized representations of your ideal customers.

For example, in a college town, your customer persona is probably an early 20-something looking for a meal at the most affordable price point. If you are located in a more family friendly area the persona might look more like someone in their mid-30’s who is willing to spend a little bit more for a higher quality meal.

Return on Investment

Having a loyalty program can also do wonders for collecting customer data. By tracking the items purchased, the frequency of visits, and dollars spent, you can determine the best areas to invest your money. Managers or owners can even take the gathered analytics to analyze the popularity of a dish and determine what other items could be purchased to pair with it and increase sales. For example, if one of your all-time best sellers is a poultry dish, you might want to consider ordering a new chardonnay known to pair nicely with chicken.  You’re customers receive a better all-around experience and you see an increase in profits.

These same analytics can be used to analyze customer behaviors, which can then be organized into data to develop promotions that are designed specifically to appeal to a certain group of customers.  The ultimate goal is to create motivational offers to influence a customer, increasing the frequency of return visits as well as per-visit spending.

Loyalty Program Best Practices

  • Provide an Immediate Incentive
    • That instant reward for signing up might be just enough to convince any customers that are on the fence about joining to take the plunge.
  • Make it Easy to Join
    • Don’t force your target audience to have to scour your website to find your sign-up page. Have it in a highly visible spot as well as talking to your staff about encouraging customers to sign-up in the restaurant. Signing up should take no longer than a few minutes.
  • Take only the information you absolutely need
    • Customers don’t want to spend their time filling out long surveys just to sign up for your program. Try to limit your questions to essentials like name, birthday, and email address.
  • Personalize offerings to members
    • Loyalty programs often fail because their offerings are too general. By creating specialized incentives based on what the customer has previously purchased you are more likely to see them walking through your door.

What Not to Do

  • Limited Time Offers
    • Limited time offers can be a great way to get customers in the door and increase traffic, but these strategies are not enough to create loyal customers. Spending money on these promotions may see an uptick in new customers but these are the same customers who are not likely to return until you run another promotion.
  • Don’t Have Customers Wondering if the Rewards Will Work
    • Make sure your employees are well versed in redeeming your loyalty system. It can lead to frustration on both sides if customers are trying to use a loyalty program reward and aren’t able to because of faulty programming or a poor system. Your relationship with the customer is the most important thing.
  • Don’t Forget to Use the Data
    • Customers will expect relevant offers in exchange for the personal information they are providing. It is crucial to make use of the information provided to tailor your message as much as possible.

Loyalty programs may seem like they are geared more towards benefiting the customer but in the end, it is a mutually beneficial relationship. The value of the data gathered, and brand loyalty that is inspired far outweigh the costs of a few perks. By implementing and utilizing a loyalty program your restaurant could see a significant increase in profits.

 

 

 

How to Prepare Your Restaurant for a PR Crisis

PR Plan

Running a restaurant is a big responsibility. You have employees, vendors, and customers all counting on you to succeed. This pressure is magnified even more so when there’s an unexpected crisis thrown into the mix.

Whether it’s a health hazard or an earthquake, your restaurant needs to be prepared to deal with the fallout and snap into crisis mode. These crises happen without a moment’s notice and can be catastrophic if not dealt with correctly. So how does your restaurant begin to prepare for the unexpected?

Avoid Being the “Ostrich”:

When a crisis does strike, your restaurant needs to be fast-acting to acknowledge the issue and take the appropriate steps to work towards a solution.

The very last thing you want your organization to be facing at the height of a disaster is a media outrage because you didn’t make any sort of statement. There is no playing the ostrich here; you cannot stick your head in the sand and pretend your problems will go away. You need to be clear, succinct, and precise with your plan internally and to the public. This can be done with a crisis management agenda.

Creating this plan can help you remain calm in times of crises which, in turn, can lead to better decision-making. Every restaurant should have an agenda for managing critical situations, the size of which will depend on the size of your operation and the issue at hand.

How to Compile a Crisis Management Agenda:

  • Brainstorm the risks faced by your restaurant such as food safety, insurance liabilities, and potential disasters (before they occur).
  • Create a checklist or plan of what should happen when an emergency happens.
  • Designate a task force of individuals who will carry out the step-by-step plan.
  • Delegate tasks and information to be disseminated internally and externally of the restaurant.
  • Identify key organizations that need to be notified such as fire, police, and ambulance services.
  • Make a list of audiences that need to be informed: reporters, legal entities, insurance companies. Don’t forget how you plan to address employees and the public.

PlanThis agenda should be shared with upper level management and designated employees that are appointed in the agenda. For an effective strategy, this information can easily be spread with Google Docs. Using Google Docs can lessen paper usage and, in case of a fire, will ensure you plan stays intact.

Having a crisis management procedure in place can lessen panic and give you a roadmap for navigating the seas of this crisis.

Keep Your Emotions in Check:

It’s without a doubt that going through a crisis that puts your livelihood in jeopardy is a stressful time. It’s also a crucial time to remain level-headed throughout the crisis. By acknowledging the issues your restaurant is facing and following your crisis management agenda, you can use your team to direct your efforts appropriately, even if you’re still in shock while the situation unfolds.

Not keeping your emotions in check can cause more issues if you act on them. Instead of acting brashly, use your emotions to convey sincerity and genuine concern. Maintaining a calm and professional demeanor can not only begin to fix customer perception but also inspire a more civil view for employees.

Emotions

For example, Applebee’s had a tumultuous public relations nightmare in 2013. Long story short, Applebee’s fired a staff member for posting a negative comment that a customer had written (due to a privacy violation) and then praised another staff member through a post that also had the customer’s name. Applebee’s posted on Facebook stating the reason they had fired the first staff member, which invited many comments from followers. In the middle of the night, the Applebee’s social media team posted an update on the post, which got lost in the 17,000 comments currently on the post. The social media team began tagging the people who had commented and copy/pasting the update their comments, leading to more heckling and an additional 16,000 comments. The social media team could have waited until a reasonable hour and posted a new update, not a comment, instead of adding fuel to the fire.

Moral of the story? Think before you act impulsively.

Say Sorry and Mean It:

Apologizing is not an easy step for any business, but it is a necessary evil in trying to repair the public’s trust. While making an apology, focus on being sincere. After all, what is an apology without feeling the deepest regret about the actions that occurred? With an honest-to-goodness apology to the affected parties, a business is taking ownership of the situation and can give it credibility.

micIn making this heartfelt apology, you will also want to take timing into account. If a crisis occurs, a restaurant’s timely apology is important in keeping customers on their side. Even if your team is working behind the scenes to better the situation, it is imperative that these actions are communicated and not done in silence. The longer an apology takes, the less customers will take it seriously.

Go further for your customers and add a side of great customer service to your apology. From late 2015 to early 2016, about 40 Chipotle customers were sickened from E. coli contaminants; a tough blow to a restaurant chain that prided themselves on fresh food free of genetically-modified organisms. Making an apology statement turned advertisement in major newspapers nationwide, Chipotle founder, Steve Ells, addressed the outbreaks, apologized, and made promises of more thorough food safety standards. To bring people back into its restaurants, Chipotle launched their brief rewards program, direct mail offers, and mobile promotions to earn free burritos.

Unfortunately, the world can change at the drop of a hat: people make snap judgments, tectonic plates collide, and food is not handled with proper care. But that doesn’t mean your restaurant can’t be prepared to combat these crises when they happen. Having a plan, keeping your emotions in check, and truly apologizing are crucial elements in preparing your restaurant for a future crisis. Remember the best offense is a good defense.

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The French Connection

French food is backFrancophiles, rejoice! The James Beard Foundation has named French cuisine a hot trend for 2017 and French restaurants are creeping back onto the scene.

French cooking, with its structured techniques and timeless traditions, has often been held as the golden standard in the culinary world. But the past 35 years have been a rocky time for French cuisine, including a New York Times article claiming French food needs to be saved.

Even though French cuisine is laden with time-consuming recipes like cassoulet and gut-busting rich roux, French cuisine has fairly simple roots. Both “cuisine du potager” (cooking from the garden) and “cuisine du marché” (cooking from the daily market) are the foundations of French cooking. Food was always seasonal, fresh, and differed from region to region, creating astoundingly different regional dishes.

From the beginning, French cuisine took on many different characteristics. French cuisine from the northern regions focused on vegetables local to the area, dairy products, and sausage. Southern regions incorporated richer ingredients like mushrooms, herbs, and game birds. Many chefs took these regional cuisine styles and created many esteemed cooking techniques. Sautéing, “sous-vide”, and “déglacer” are just some of the French cooking terms that have been outside the realm of the cuisine.

French cooking was known around the world for its finery and strategic practices that made this an art form more than just preparing food on a plate. But many chefs wanted to move away from the heavily regimented procedures and decadence of French cuisine and come up with a lighter alternative. Lower fat sauces, the integration of more garden vegetables, and using simpler presentations began in the 1960’s. From this, “nouvelle cuisine” was born. This movement was embraced for a small period of time, but met with heavy criticism from traditionalist French chefs and food critics.

By the end of the 1980’s, “nouvelle cuisine” had fallen out of vogue and many chefs returned to the more classical methods.

However, other ethnic foods such as Italian and Mexican began to take center stage. French restaurants and cuisine took a hit by being perceived as stuffy; customers were more interested in other flavors and combinations. Even many French chefs began going the safe and less expensive route, giving up their quest for Michelin stars, and focusing on the basics.

Most recently in 2014, the French government has tried to let consumers be aware of a restaurant’s quality of food with a “fait maison” logo. This logo would indicate whether a restaurant’s food is in fact “homemade” or not. In an effort to reduce costs, many restaurants in France were relying on industrial caterers or external food service providers to prepare food. While this is done by many restaurants internationally, it does take away from the integrity of French cuisine, which was once upheld has the standard for all culinary traditions. The many exceptions to the “fait maison” make it easy to circumvent as well as receiving a large negative backlash from food critics and chefs.

Even though it seems French cuisine has toppled from its pedestal of grandeur as of late, this trend is on the watch list for 2017 and is making a comeback. Many classically-trained chefs around the country are looking to restore the name of French cuisine and others are bringing their own flavor on the great classics.

French Laundry

Once housing a saloon and then steam laundry business, Thomas Keller’s French Laundry continues to make history on Washington Street in Yountville, California. French Laundry has been dazzling palettes with its tasting menus (which change daily) and wines since 1994. Even with a decline in formal French dining, Keller’s restaurant has succeeded over the years and is a testament to his expertise. Among winning the “Five Diamond Award” annually since 2005, Thomas Keller is the only American-born chef to have three star Michelin ratings for two different restaurants (French Laundry in Napa Valley and Per Se in Manhattan). French Laundry has set high expectations in French cuisine for restauranteurs, service, and patrons.

French Laundry

Photo via Femme Rouge

Bistronomic

Combining the words bistro, gastronomy, and economic, and all that they mean to French cuisine, chef Martial Noguier opened his first independent restaurant Bistronomic in 2011. While Chicago is becoming a food capital, Bistronomic is right there and relevant as ever with its comfortable atmosphere and Midwestern ingredients. Noguier keeps classic items on the menu with a regional twist in the maple leaf duck breast a l’orange and escargot with breadcrumbs. Making French cuisine seem approachable is quite an understaking, but Bistronomic and Noguier pulls it off.

Bistronomic

Photo via Bistronomic

Petit Trois

Shaking up the traditional white-tablecloth atmosphere of many French eateries, Petit Trois is Los Angeles’ exclusive but approachable bistro. With a “bar á la carte” menu style, Petit Trois focuses on simple French dishes such as escargots and omelettes with simple wines and cocktails. Opened by Ludo Lefebvre, Vinny Dotolo, and Jon Shook in 2014, this bistro champions no-frills French cuisine with a relaxed feel- no stuffiness here! With a no reservations policy, the 21 bar stools are up for grabs to the early bird. Petit Trois has landed at the top of many “best of” lists, including “2015 Restaurants of the Year” by Food & Wine. It is rumored a second location will be opened in the California’s San Fernando Valley.

Petit Trois

Photo via Eater LA

The Twisted Frenchman

Cities around the United States are seeing the return of French cuisine in the forms of fine dining and casual bistros. French cuisine is even making its way back into the steel city of Pennsylvania, Pittsburgh. New ownership transformed what was the former Notion Restaurant on South Highland Avenue, into chef Andrew Garbarino’s The Twisted Frenchman in 2015. Up-and-coming on the restaurant scene, Garbarino has to rely more on his food than his name to bring guests in. With its food described as “modern French”, The Twisted Frenchman’s menu is peppered with game birds and quintessential French entrees. Lovingly referred to as “foie gras PB&J”, this appetizer is Garbarino’s signature and gives a contemporary take on an otherwise classic dish.

The Twisted Frenchman

Photo via TripAdvisor

Le Coucou

In the mid-20th century, there were six luxury restaurants that ruled New York City and held the standard for French dining. Since 2004, all except one (La Grenouille) have closed their doors. The white table clothed finery of these establishments lives on and served as inspiration for chef Daniel Rose’s Le Coucou, opened in 2016. Along with Stephen Starr, restaurant extraordinaire, Le Coucou is an encouraging sign of fine French cuisine reigning once more. French delicacies line the breakfast, brunch, lunch, and dinner menus, including the cheeky “tout le lapin” (all of the rabbit). While this is Rose’s first stateside restaurant, Le Coucou is the resurgence of fine dining for local New Yorkers and tourists to share in alike. To many of Le Coucou’s patrons, this isn’t a resurgence; this a whole new experience.

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The Recipe of a Restaurant: How to Break into the Industry

Open for Business

Have you dreamed of owning your own restaurant? Maybe you’ve sketched out what the exterior would look like on a napkin, daydreamed about what you would serve, or even picked out your china?

But have you ever thought of taking this dream one step farther and putting your ideas to work?

If you’re looking to bust into the restaurant business but aren’t quite sure of what you would need to do it, we’ve compiled the largest pieces you need, into one guide. And because opening a restaurant is no easy task, we spoke with Rob Coffaro, owner of Coffaro’s Pizza in Slippery Rock, Pennsylvania, to get his expertise on the subject.

Coffaro's Pizza

Prep Time

Concept- First things first, you need a concept. This may be something you already have under belt, but if not, you need to cement what your vision is for your restaurant. Having a more concrete concept can help you carry the elements you want into your restaurant more clearly.

Location- Whether you’re taking over another restaurant or building from the ground up, you should have your location. Talk to your realtor about the different options for your commercial venture. This will impact how you finance your restaurant.

Finances- How you finance will largely depend on your situation. If you are so lucky to have been saving up in your personal savings account, these liquid funds could get you on your way. If your credit is in good standing, a credit card could be a viable solution, depending on how much you need. Another option could be a restaurant specific loan or a Small Business Administration loan. A restaurant specific loan is not bound to a specific need and has a varying interest rates and terms, depending on the size of the loan. Based on the financial institution, this loan can have many different names but serves the same purpose. An SBA backed loan can offer lower down payments and longer terms to the business owner but can be difficult to qualify for. To qualify, a business must meet size requirements, be in good financial standing, be in the for-profit industry, and meet the credit requirements of the lending institution. Instead of going the commercial route, you could also have investors help fund your restaurant. If these are friends and family, remember that while the money can be convenient, it can also be a strain on the relationship.

Business plan- After you’ve analyzed the risks and you’re ready to take on the responsibility of owning your own business, it’s time to create a business plan. This plan gives you a guiding light when things seem dark or what to do next. When documenting your business plan, be sure to include information on your concept, team standards, design, target market, market overview, financial risk, business structure, and external individuals that will be helping you run your business (like a lawyer or accountant).

Legal matters- If you plan on serving alcohol or having a BYOB policy, make sure you check your state’s liquor license laws. Some states can take longer than others for this process, so if this applies to your business definitely get a jump on it!

Slice of Advice- Be Organized

Mix in Your Ingredients

Write your menu- It’s time to test out what culinary creations will grace your menu. Use focus groups of friends, family, and other chefs to narrow down what fits your restaurant’s style and flow. Make sure to also include various substitutions to accommodate guests with food allergies or dietary restrictions. When designing your menu, you need to keep in mind the physical look of the menu, how categories will be presented, and the pattern in how it’s read.

Network- How are you going to obtain the ingredients of your daily fare. Research foodservice vendors on price, quality, and delivery time but also keep local farms or vendors in mind. A great way to build relationships in the community is to partner these homegrown businesses which could help get your foot in the door for future events.

Get social- Start creating a buzz about your establishment. Choose two or three social media platforms that you are well-versed in (or are prepared to master) and begin showing the world what makes your business unique. You have a great opportunity to show the beginnings of your restaurant, from the first time you walk through the door to opening night. Use it!

Dimensions- Space planning can give you important figures such as your capacity, how many pieces of furniture you can order, and the image of how your restaurant will look at the end. There are many requirements that restauranteurs need to implement in their layout. Whether large or small, your restaurant can be planned out before you purchase a single piece of furniture.

Filling the space- To complete your restaurant, you will need commercial furniture and restaurant equipment (think refrigerators, ovens, etc.). Be sure to purchase products that promise quality and durability. Don’t forget to also pick up dinnerware, napkins, cooking utensils, and silverware to run your business smoothly and efficiently. It’s also time to finalize your menus and send them off to print!

Safety is key- In most states; you need to have a pre-operational inspection done before your restaurant opens. During this inspection, there should be absolutely no food on the premises. The pre-operational inspection confirms that your restaurant is compliant with health laws.

Build your team- The amount of upper-level management you need will depend on your business structure and size but most restaurants have a general manager, assistant manager, shift leaders, and chefs. You will want to look for individuals that are successful in recruiting, supervising, and budgeting. When your management team is in place, you can start hiring the wait and kitchen staff. From top level management all the way to the first-time job holder, training is important for seamless, united customer service.

Slice of Advice- Hiring

Let’s Get Cooking

Get your feet wet- Have your soft opening a couple weeks before your grand opening that introduces your business to the community. This lets your future customers get to know you and get excited that you will be opening very shortly.

Call your health inspector- Directly after your soft opening, schedule an operational inspection with the health department. Staying up on these issues is important for the longevity of your business.

Make it an event- For your grand opening, make sure that you are present and available. This is the time to enjoy your handiwork and introduce yourself and your team to all those who came out to support you. You should invite some sort of press outlet, but you may want to also hire a photographer to attend. Designate a staff member or friend to be in charge of social media that night, this is an event you will want to remember.

Slice of Advice- Do the Math

Enjoy Your Final Product

So your restaurant is now a full-blown operational business. That’s awesome, but the hard work is just beginning. You need to keep up on budgeting, food safety, licenses, and your customers’ overall experience. It’s important to keep in mind that while it may be simpler to hire the accountant and just leave the finances to them or hire an assistant to focus on staying up to date on licensing, you need to be involved. Just because your restaurant is open does not mean you can stop researching and educating yourself. Let this and every ounce of customer feedback drive you to become a better restaurant and business. You need to be involved with each workings of your business to protect and nourish it every step of the way.

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5 Restaurant Trade Shows You Won’t Want to Miss in 2017

Trade Show Set UpIndustry trade shows are crucial for top players in the restaurant business. Owners, managers, and decision-makers can network, sample new food methods, test top of the line technology, and discover upcoming trends within the industry. Trade shows bring together the moving parts of the restaurant community with the common goal of bettering businesses.

Whether you’re just breaking into the industry or you’ve owned your restaurant for 30 years, these five trade shows are a great place to reignite your inspiration and make connections to further your restaurant.

International Restaurant & Foodservice Show- New York, NY

March 5-7, 2017

Calling all food lovers! Celebrate the City that Never Sleeps with the International Restaurant & Foodservice Show. Enjoy the newest food trends at the “Taste NY & Craft Beverage Showcase” pavilion or spectate the “27th Annual U.S. Pastry Competition” for a deliciously good time. One of the largest trade shows on the eastern seaboard, this trade show is a must-see for restaurant owners. Located in the Javits Center, you’ll find 550+ exhibitors to interact and network with. Previously this trade show boasted 20,000 attendees and is limited to restaurant and foodservice professionals. Industry insiders can buy a 3-day pass to enjoy vendors, live demonstrations, and educational opportunities. Gain a fresh perspective on your business and get inspired with specialty events and pavilions. If you’re looking to bump elbows with some of the most experienced individuals in the restaurant industry, make sure to check out this trade show!

Nightclub and Bar Trade Show- Las Vegas, NV

March 27-29, 2017

Bringing the neon and glamour of the Vegas strip, the Nightclub and Bar Trade Show sparkles at the Las Vegas Convention Center. Work hard and play harder at this trade show with an estimated 39,000 attendees and more than 600 exhibitors. The NCB show caters to everyone from single owner operations all the way to multi-location tycoons. And don’t be fooled by the name, restaurants and hotels alike frequent this show with its Vegas-like atmosphere. This show is not open to the public, giving attendees a more exclusive and efficient interaction with suppliers. It also offers additional conferences and networking parties to further the education and connections of attendees. Show-goers can choose from a series of ticket packages to customize the experience. Whether you are an owner, buyer, or industry newcomer, this trade show is a great place for networking and experiencing the nightclub industry at its truest form.

Craft Brewers Conference and Brew Expo America- Washington, DC

April 11-14, 2017

If brewing is your game, the Craft Brewers Conference and Brew Expo America is the show for you. Taking place in the Walter E. Washington Convention Center, this trade show brings in 11,500 attendees and 700 exhibitors. This show takes a large part in providing education, services, and technology for the ever-expanding brewing industry. Because it is an industry trade show, the conference and show is not open to the public. For industry-insiders, different ticket packages are available depending on which events you wish to attend. To stay updated in this industry, seminars are offered at this show with titles like “Starting a Quality Lab in a Craft Brewery”, “What I Wish I Knew Before Opening a Brewery”, and “101 Ways to Blow Up a Bottle/Can and How to Not Do It”. From brewing masters to industry newbies, this trade show brings together the brewing community to new heights.

National Restaurant Association Show- Chicago, IL

May 20-23, 2017

If you’re looking to have plenty of vendors and options in one space, the National Restaurant Association Show in Chicago is definitely one to check out. One of the largest trade shows in the restaurant industry, the NRA show spans four days and requires at least two of these days to walk the entire show floor. Simply put, this trade show is enormous. Located in McCormick Place, this trade show rakes in 44,000 attendees and 1,300 exhibitors. While this show presents a great opportunity for start-up businesses to be launched into the restaurant industry, this is a popular show for larger chains and veterans to hit up because of the vastness of the offerings available. Needless to say, this is a great show to make connections from all over the country. This show is not open to the public, but is accessible for anyone involved with the food service or hospitality industries.

Florida Restaurant & Lodging Show- Orlando, FL

September 10-12, 2017

Whether you’re in the beginning stages of managing a restaurant or have 15 locations, the Florida Restaurant & Lodging Show is a must-attend show this fall. Located in the Orange County Convention Center, this trade show boasts around 8,000 attendees and approximately 400 exhibitors. Don’t let size full you, this trade show is highly attended by large resorts and corporate chains. Exclusive to the restaurant and food service professional industries, the general public is not permitted to attend this show. The FRLS excels in food demonstrations and culinary experiences. This trade show offers over 40 education sessions, informational forums, and a variety of exhibits to keep your Floridian stay filled to the brim.

IFRS in NYC

Photo via International Restaurant & Foodservice Show

Ready to attend an industry trade show? Make sure to check out these tips before you go to get the most out of your trade show experience.

Are any of these trade shows on your short list to attend this upcoming year? Let us know in the comments below!

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Popular Restaurant Trends Throughout the Years

Popular Restaurant Trends

How many times a day do you see blog articles pop up on social media titled “25 Most Embarrassing Food Clichés of (insert year here)”? And once your curiosity has gotten the best of you and you’ve clicked on these articles, you see a list teeming with negativity about food and restaurant trends from years gone by. While these articles can be entertaining, hindsight is always 20/20.

It’s safe to say that the restaurant industry has had plenty of changes occur from its inception, some of them better than others. “New” trends are difficult to come by in the restaurant industry, with many ideas being perfected over the years. But as restauranteurs, it’s necessary to look back on restaurant history to see what’s coming in the future.

The 1950’s

The 1950’s easily became the golden era for American restaurants. The Great Depression and war were a thing of the past and left the economy booming. This time of prosperity made it simple for other industries to flourish as well. Due to improvements in the nation’s highway system, the need for stops along interstates grew. With more and more travelers on the road, franchise restaurants became more in demand.

McDonald's in 1954

Photo from allday.com

Many of these franchised restaurants are still popular today. In 1954, the McDonald’s restaurant we know today was bought from the original McDonald brothers and transformed into franchise gold by Ray Kroc. McDonald’s was not the first fast food restaurant, but the assembly-line system was revolutionary for fast food restaurants to come. Kroc was able to turn this humble hot dog stand into a quick and efficient franchising opportunity. McDonald’s franchise model became a beacon of success for other restaurants, like Kentucky Fried Chicken and Dairy Queen, to follow in suit.

Highway System

Photo from nesbittrealty.com

With the highway system improvements also came advancements in the automotive industry. The 1950’s was filled with car culture; so why would restaurants be any different? While the first drive-in was opened along the Dallas-Fort Worth Highway in 1921, the 1950’s were the true heyday of drive-in diners. Serving up burgers and shakes, sometimes on skates, these diners became social hangouts for teens and families alike. The drive-in trend continued through the 1960’s and then declined with the increasing number of drive-through options in restaurants.

The 1960’s

Steak and Ale Menu

Photo from cravedfw.com

Although processed and junk food captured much of the baby boomers’ attention, it wasn’t the only trend happening in America at the time. Steak and Ale (casual dining) began offering a salad bar buffet to guests, keeping them occupied while waiting for their dinners. Soon enough, salad bars were popping up in steakhouses all over the country as a way to customize a guest’s appetizer.

Dining in the 60's

Photo from petermoruzzi.com

This decade was also defined by the meats served in restaurants. Most entrees at this time were focused around beef of some sort. Beef wellington, steak Diane, and Swedish meatballs were all popular beef dishes of 1960’s. In middle class restaurants, beef and lobster (or surf n’ turf) dinners were commonly seen on the menu.

Howard Johnson's

Photo from slate.com

At this point in history, there was an increasing emphasis on family time outside the home (vacations, a meal out, etc.). Popular restaurants of the time, Japanese steakhouse Benihana and Howard Johnson’s were often patronized by these families looking to spend quality time together and bond over dinner. In the 1960’s, dinner became more than just food and more focused on the emotions associated with it as a family.

The 1970’s

The 1970’s marked the beginning of environmentalism as the newest social cause, affecting the food and restaurant industry. Changing their tune from the 1960’s, customers wanted healthier options that were unprocessed and uncomplicated. This shift led to a rise in vegetarianism and health food stores.

At this point in time, there was a shift in gender roles. With a larger number of women in the workforce, restaurants were used as experiences with the family or a chance to get away from the preparations and cleaning up required of cooking at home. More casual-dining chains began spreading across the nation like the Cheesecake Factory and Ruby Tuesday, both opening their doors in 1972. For a quick bite, the 1970’s marked Subway’s start into franchising. Much like the fame of the McDonald’s assembly line from the 1950’s, the Subway assembly line was just as important for future restaurants in similar niches.

In finer dining, Le Cirque (New York City) opened its doors in 1974 by Sirio Maccioni and became a landmark in the city. One of the most infamous dishes to come out of Le Cirque was pasta primavera. This entrée soon became one of the most ordered items at restaurants across the country, its popularity spilling over into the 1980’s as well.

Le Cirque, New York City

Photo from insatiable-critic.com

The 1980’s

Innovation ran rampant in 1980’s restaurants. Chefs were taking creative license to create new combinations and dishes, making restaurants trendy and modern. While there were many traditionalists who argued against these new methods, it was certainly an exciting time to be in the restaurant business.

Nouvelle Cuisine

Photo from caraandco.com

Nouvelle cuisine was popular especially in finer dining establishments. Chefs worked hard to create elaborate presentations with their dishes, using the plate as a canvas. Popular New York City restaurants like Odeon and Quilted Giraffe used this style quite fervently throughout the 1980’s. Championed by chef Michel Guerard and food critics Henri Gault and Christian Millau, nouvelle cuisine allowed young chefs to be more artistic and not held to the restrictions of traditional French cooking.

Although this cooking style allowed chefs to be more creative in their practice, it ended abruptly with the stock market crash of 1987. With the largest one-day drop of the Dow Jones in history, customers expected more out of their restaurant helpings than the smaller, artistic portions of the time.

Chef Paul Prudhomme

Photo from investors.com

Another popular trend in the 1980’s was Cajun cooking. While other American chefs looked to other countries to inspire their dishes, chef Paul Prudhomme looked to his Louisiana roots. Prudhomme used classic Louisiana ingredients like blackened beef, crawfish, and shrimp to create exciting menu items such as Chicken and Andouille Gumbo and Cajun Jambalaya. The blackening technique became very popular in the 1980’s, being used in fish and other meat entrees.

The 1990’s

Fusion cooking was on the rise in the 1990’s. A trend, fusion cooking is the combination of different cultural dishes to create something new. Laying the ground work for this new trend, celebrity chef Wolfgang Puck served dishes that combined French and Asian influences for an interesting mixture. Items on Puck’s Chinois on Main menu included foie gras with pineapple and catfish with fried ginger.

Wolfgang Puck

Photo from minnpost.com

While these dishes could be highly creative and delicious (like this Thai-inspired pizza), some chefs took it a step too far and created “con-fusion” which were unexpected flavor hybrids that didn’t complement each other well. The “con-fusion” was a result of the chefs trying to jump on the bandwagon and allow their restaurant to have the next big thing, which doesn’t always coincide with a customer’s palate. It is very difficult to specifically label certain “con-fusion” recipes as a failure because taste is extremely subjective. But something tells us that a recipe for spicy Asian green beans with blue cheese isn’t going to be our new favorite food either.

Fusion Cooking

Photo from guyeatsfood.com

Many chefs are not a fan of the term “fusion cooking”, claiming negative connotations from the 1990’s. Even though it is still a popular cooking style in the modern world, the term fusion cooking is not normally used.

The 2000’s

At the turn of the century, America became much more conscientious about their foods. Consumers were more concerned about where their food came from, how it was processed, and what was in it. This kind of curiosity led to many consumer-driven changes that effected food suppliers, distributors, and restaurants.

Super Size Me documentary

Photo from netflixlife.com

One of the most revolutionary food documentaries to ever hit the small screen was Morgan Spurlock’s Super Size Me, which premiered in 2004 to a shocked America. It was common knowledge at this point that fast food was not the ideal meal for a healthy diet, but this documentary took just how unhealthy fast food could be and made it a living nightmare. After this documentary, many fast food chains began to evaluate their menu offerings.

Fresh food

Many consumers demanded more health-conscious options from all of their eateries. Even big-box retailers like Walmart were starting to offer organic options to their customers. So why wouldn’t restaurants as well? More restaurants began creating and marking healthier choices on their menus while others provided more detailed information about where the food came from. This kind of communication with the customer makes them feel more in charge and able to make more educated decisions based on the information that is provided to them.

Because consumers were aimed to obtain healthier foods (for the most part) they frequented businesses like Subway, Jamba Juice, and casual dining establishments like Applebee’s and Olive Garden. Some of the most popular foods of this decade included sushi, bacon, super fruits (blueberries, acai berries), and cupcakes. Many restaurants assimilated these flavors as a part of their core offerings.

The 2010’s

While we are 60% of the way through the 2010’s, there are still prominent restaurant trends that will have sticking power throughout the remainder of this decade.

Chipotle Assembly Line

Photo from qz.com

Restaurants that offer assembly line-like service allow for customers to choose how they want their food prepared are huge right now. The customer is able to tailor their experience from station to station to have their food made exactly the way they want it. This customization ability can be seen in restaurants like Chipotle, Blaze Pizza, and even Starbucks.

Coffee craze

Speaking of Starbucks, the 2010’s are drink-crazed. Whether it is coffeehouses or microbreweries, the interest in mixology has skyrocketed. Many restaurants are not limited to regular or decaf coffee offerings anymore. Similarly, restaurants are also producing their own type of craft beer or wine. There is a certain fascination with making these concoctions because it is all about creativity, and is great for expanding your profit margins.

In urban areas where rent is astronomical and constantly changing, the newest restaurant trend isn’t to become a physical building; it’s to have a food truck. This trend has roots starting in Los Angeles with Kogi BBQ truck and chef Roy Choi. With the help of Twitter and the combination of Korean and Mexican cuisine, the Kogi BBQ truck became a success that inspired restauranteurs to take an alternative route for restaurant ownership.

If you’re looking to create something new in your restaurant, it is always helpful to look to the past for inspiration to create your future. These popular trends from the 1950’s all the way to today have their time and place in history. The restaurant industry has a cyclical nature; trends are bound to find their way around again. While the subject matter of the trends may not be your restaurant’s cup of tea, at the very least, you can get a theme night out of it!

What are some trends (modern or older) your restaurant has tried? Let us know in the comments below!

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Columbus Day Facts

Columbus Day FactsHappy Columbus Day! Whether you’re enjoying a sales event or a day off, the time period of Columbus is certainly a defining, historical series of events that many people don’t know a lot about. We’ve rounded up some fun facts for you (or your next go at being on Jeopardy) about the holiday and the furniture of the time.

Did you know?

Christopher Columbus:

Christopher Columbus was not the famed explorer’s real name; it was closer to Cristoforo Colombo.

Columbus’ trip coordinated with what is said to be the beginning of the Spanish Renaissance that lasted until the early 18th century.

Many paintings of Columbus were not actually of him; most were painted after his passing in 1506.

Christopher Columbus landed in the Bahamas (not the East Indies, oops!) on October 12, 1492.

Most people at the time of Columbus knew that the Earth was not flat, but weren’t aware of the other continents “in the way” of the East Indies.

Spain was not Columbus’ first choice for sponsorship; England, France, and Portugal all said no.

Ship
After his primary voyage to the New World, Columbus made 3 trips back to his colonies there.

Columbus Day is not celebrated in 22 states because of its controversial history.

Columbus Day was proclaimed a national US holiday by President Franklin D. Roosevelt in 1937.


The Furniture of the Spanish Renaissance:

Spain was in its political prime, controlling southern Italy, Portugal, the Netherlands, and now, New World colonies as well.

Renaissance furniture design was inspired by Greek and Roman antiquities, especially in Italy.

The cassone chest became one of the most recognizable furniture pieces of this time period with its intricate carvings or gilded decorations.

cassone

Photo by the Metropolitan Museum

Much of what is depicted on Renaissance furniture comes from mythology or history, separating it from the Gothic styles that pulled from the lives of saints.

Cabinet and furniture makers of the time began to use more lustrous woods like walnut.

Walnut Chair

Photo by the Metropolitan Museum

High back chairs were all the rage throughout European countries because of their throne-like appearance.

Moorish High Back

Photo by 1stdibs.com

Columbus Day is celebrated in many ways around the country including food festivals, retail sales, or the replacement of Indigenous People’s Day. Regardless of what you’re celebrating on this brisk October day, have a safe holiday!

Let us know in the comments below how you plan on spending the day.

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How to Make Your Restaurant Successful on Yelp

Find Us on YelpFaced with large amounts of competition, businesses are constantly fighting for their customers’ attention. Word-of-mouth marketing is a powerful driving force in today’s society and has the ability to sway decisions like what to buy and where to eat. This type of marketing may seem difficult to harness, but with programs like Yelp, businesses have a way to engage with customers and help mold their opinions.

Yelp is a great way for small businesses to compete with larger chains by showcasing what they have to offer. In Q2 of 2016, Yelp had a monthly average of 23 million unique visitors who went through Yelp’s mobile app and another 69 million unique visitors who visited Yelp via the web. A Nielsen study reports that 78 % of users rely on Yelp to find restaurants (out of all categories), capturing the highest percentage of the categories. Needless to say, Yelp is a well-used resource for restaurant-goers whose importance is often under-estimated by restaurant owners.

How It Works

Imagine you’re on vacation and it’s your first time at a destination. Up and down your hotel’s strip, there is dinner option after dinner option. As a consumer, the choices are overwhelming. How do you even begin to choose? You could just waltz into the first place you come to and take your chances.  Or, you could leverage the experience of thousands of Yelpers that have visited before you and have left reviews of just about every restaurant in town.  Without the uncertainty and risk of visiting an untested spot, you and your family can get down to the business of enjoying your vacation.

According to their website, Yelp’s purpose is to “connect people with great local businesses”. Their automated software program scours the top reviews that are written by users (“Yelpers”) based on quality and helpfulness, and it ranks businesses according to a proprietary algorithm. So how does your restaurant get the highest ranking? Typically, a larger number of reviews lead to a higher ranking in Yelp search and many other search engines.  The strategy then with Yelp is to get your restaurant as many good reviews as possible.  In this article, we are going to show you how to get started.


Yelp Ads
Claim Your Business

Claiming your business is the starting point for all businesses on Yelp. To be proactive with a Yelp strategy, you must claim your business to have control of that page. After you claim your page, you can then personalize it to help distinguish it among other pages. The goal of this page is to drive traffic to your own site. Optimizing this page will help your restaurant appear, not only in yelp searches, but also in search engine queries like Google.

It is interesting to note that according to a Boston Consulting Group study, businesses that simply claimed their Yelp profile generated incremental revenues of $8,000 annually just from being on Yelp.  Wouldn’t it be nice if your business could bring in an additional $8,000 per year by spending a small amount of time setting up you page and managing your reviews?  By the way, according to the same study, those who claimed their profile AND advertised on Yelp through PPC campaigns (more on that later) generated additional revenue of $23,000.

Rack Up the Reviews

Although it is the core function of Yelp, many businesses may wonder how customers will know to leave a review. Be cautious of how you approach this topic.  Yelp prefers “organic” review, which means reviews that have not been solicited or, worse, paid for.  It’s understandable if you think about it.  Most businesses only ask for reviews from their happiest customers, not those who have had a bad experience.  That might be great for the restaurant, but it damages the overall credibility of the review system. Yelp wants your restaurant to earn great reviews through exemplary business practices, not through solicitation and/or reward.

Even though Yelp discourages direct solicitation, they do leave the door open for more subtle ways of generating reviews.  The first, and most obvious, is to make sure that your customers know you actually have a Yelp account. You may have a customer that comes to your restaurant every single day for their morning coffee, but if they don’t know you’re on Yelp, how will the world know that you have nurtured and cared for this customer, so much so they visit your business every day? Make customers aware that you use Yelp by using this form to receive a window cling for your business. Also, remind customers to visit your Yelp page with a link in your email signature and/or a badge on your website.

To attract customers that are in the decision stage, use a Check-In Offer to entice them. A Check-In Offer is a reward a customer receives when they check into a business on Yelp. This reward is redeemed by mobile device at the place of business. After a checking in from a mobile device at a restaurant, the user is later asked to write a review of where they checked in at. Be careful not to offer incentives to customers who give better reviews, which is against Yelp’s policiesCheck In Offer

While the tactics above are handy with a new restaurant or during a slow time to jazz up reviews, you should always try and go above and beyond for customers. Have the mindset of what kind of experience you want your customers to walk away with, and then double it. What sets your business apart from the competition? Is your atmosphere, food, staff, or price point? Find what makes your restaurant original and makes for a memorable experience for your guests. Inspire people to choose your restaurant, enjoy themselves, and then right a smashing review because their experience was just that good.

Take a look at this improvement calculator to see how many reviews it will take to attain a certain rating for your restaurant.

Interact with Customers

You’ve put the work into claiming your business, spruced up your Yelp page, and the reviews are pouring in. All of a sudden, your first bad review comes in: a piece of coal in your carefully cultivated glittering diamond mine of positive reviews. Your first instinct might be to ignore the review, hoping it gets lost in the sea positive reviews. Maybe no one will see it?  That is a big mistake.  You should always respond to a negative review, even if the response is private.  The last thing that you want is an already upset customer feeling like you’re ignoring them.  You’ll definitely want to reach out to that Yelper in a way that lets them know that their concerns have been heard and you will take their input into consideration when shaping future decisions.

Whether you handle bad reviews publicly or privately is up to you, but maintain consistency – don’t respond publicly to the reviews where you feel like a customer is wrong, and privately to the reviews where you know you messed up. The flow chart below outlines Yelps best practices for responding to reviews publicly or privately.

Review Flow ChartFinally, remember that your public responses will be seen by existing and potential customers so always be courteous and understanding. Practice up on your PR skills and don’t isolate customers. You don’t want jeopardize your future business with a poorly worded response.

Free Assets for Business Owners

Yelp has many free resources for business owners to use, making it effective and easy on a budget.

Yelp for Business Owners app is the most comprehensive of these resources. With the app (available in the App Store for iOS and Google Play Store for Android), businesses track engagement, leads, and clicks to their site from Yelp. The app also has the capability to track the number of check-ins to a business, calls (from clicking the phone number), and the reservations made off of Yelp. Not only do these factors help you gauge your success on Yelp, but could justify an increase of foot traffic in your restaurant. Through the app you also have the capability to respond (publicly or privately) to messages, upload photos, and report reviews or messages. For a busy, on-the-go restaurant owner, the Yelp app is extremely valuable in managing your presence on the site.

Again, you don’t want to come right out and ask for reviews. But if you want another, more discrete way to remind customers about giving you a review, place a Yelp review badge on your website. By placing a review badge on your site, your customers can see that people have a reviewed your restaurant and prompt them to check out your Yelp page. Potential customers will be more inclined to visit a restaurant with many positive reviews, which the badge helps them see at a glance. Every time your business is reviewed, the counter clicks up and/or reflects in the stars. Per Yelp’s brand guidelines, there are only two badges allowed on a business’ site that shows their association with Yelp.

Web Review Badges

It is important for business owners to stay up to date on ways to effectively use Yelp. Yelp offers free 30 minute webinars that improve upon your existing Yelp knowledge. Topics range from how to respond to reviews to becoming a 5-star brand. These webinars help clarify how your restaurant can use Yelp as a sustainable, effective strategy for the long term.

Yelp Ads

While Yelp has plenty of free resources for businesses, there are also advertising packages to enhance your profile even further.

Yelp’s advertising packages operate on a cost per click (CPC) basis and could be beneficial for your particular niche. There is no pre-determined set cost because the cost depends on the competition and relevance of your advertisement to the user’s search. Yelp Ads can help your business with targeted local advertising and a more prominent placement on search and competitor pages.

If you want to upgrade your Yelp experience by paying for advertising, the Call to Action button may be one you want to take advantage of.

Whenever potential customers have searched and found your business on Yelp, what is the next steps you want them to take? The best way to provide a specific direction for these customers is to have a Call to Action button. When set up, this button appears towards to the top of your business’ page, underneath the location and uploaded photos.
When narrowing down what your Call to Action should be, think of what your desired end goal is. The button will take customers to more information in the form of a specific page of your website or coupon.

Call to Action
In the example above, Olive or Twist’s Call to Action button promotes their happy hour and links to their specials section on their website. Make sure your button is labeled with a broad, but relevant statement. You don’t want to give away all the information on your Yelp page, because then there is no need to click. This button provides a next-steps for potential customers to take part in.

Compare the different products that Yelp Ads has to offer with this chart.

Please note that just because a business advertises on Yelp does not mean they automatically get better ratings. A business could be rated two stars and advertise, leading to more people seeing that rating. On the other hand, a business that does not pay to advertise can have a five-star rating. For more information on Yelp’s advertising policy, feel free to check out their FAQ page.

If you own a restaurant that has never used Yelp or only as a consumer, go claim your business. Doing a simple Google search will leave you with endless results on how to optimize Yelp and best practices. But the best way to use Yelp is to jump right in! There are so many free resources and options for a business getting started on Yelp. Don’t think the only way to be successful on Yelp is to shell out a portion of your advertising budget. Let your customers know that you have a Yelp presence, respond thoughtfully to their reviews, and keep providing excellent experiences to make Yelp work for your business.

Does your restaurant or business currently use Yelp as a strategy? If so, what’s your experience with having a page? If not, what are your reservations about it? Let us know!

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How to Market Your Restaurant to Millennials: Getting Social

Millennials

United States millennials span the ages of 18-35 and are a force to be reckoned with. This generation, also known as Generation Y, has surpassed the baby boomers (1946-1965) and now number 75.4 million.

Even with millennial numbers increasing, they don’t have control of the market at this point. Baby boomers still hold the buying power in today’s market; almost 50% of retail sales can be traced back to this group. But, millennials’ spending power will only continue to increase as they begin to earn more.

The true difference lies in how these generations communicate with businesses and brands. Generation Y is made up of extremely vocal consumers that are inter-connected and are not afraid to let others know what kind of experience they had at a business.

The millennial generation is often described negatively by their predecessors, but millennials are socially conscious and creative individuals that are becoming an increasing power in the market. This group’s craving for their peers’ opinions can often dictate many buying decisions, including where they choose to eat or drink.

Learning how to market to this rising group should be a priority for restaurant owners. By understanding the mind of a millennial, restaurateurs can uniquely tailor their marketing communications for this generation. Some call them self-oriented or naive, but millennials are changing best practices of the restaurant industry.

Social Media

Social media is an essential tool for restaurant owners to use when marketing to millennials. Restaurants that don’t use some form of technology platform to reach out and interact with customers seem out of date in today’s constantly changing society. Social media can give your business validity to those searching on the internet.

Celebrate what your business has to offer with your social media. Food is a visual commodity. Those who love to eat don’t only want flavorful bites; they want an aesthetically-pleasing experience they can share with others. Tailoring social media to your restaurant, guests, and mission can further brand your restaurant among many. For example, the “food and drink” category on Pinterest is the most pinned and browsed of all the categories and 90% of pinners are saving food and drink recipes on their mobile devices. This is a great indicator that these are items that people have interest in, so cater to it and get guests inspired by your selection.

You can promote events, menu additions, and even new staff on social media to give your business a face. Encourage your guests to check-in, tweet, post, and pin about your restaurant. Restaurants and bars that take the time to create quality content in their social media interactions can increase top of mind awareness and brand recognition. According to the State of Inbound Marketing, social media has a 100% higher lead-to-close rate than traditional outbound marketing. Use that to your advantage!

Although it is on a larger scale, Chipotle does this very well and it is a brand that millennials want to follow on social media to see what they will post next.

Chipotle

Think of your business as a lifestyle brand that you need to promote. Consumers want to learn more about you and your company’s background and be able to relate on a personal level. Whether it’s about the latest rules on food safety or what your lunch specials will be, creative content about your business and its industry makes you an authority on the topic. Millennials appreciate the diverse but relevant subject matter and your business becomes a reliable resource your niche.

Do's and Don'ts of Social Media

Social Experience

Millennials are constantly branding themselves. By sharing their organic mango and black bean salad on social media, this generation expresses more than just what they’re having for dinner. When looked at closely, these actions say this consumer supports the story behind their food and that this is the type of restaurant they frequent.  Millennials brands themselves to coincide with the identity of the business. They are proud of their decision to eat out, and they want to share their experience with others. Of course, an Instagram feed is often a very skewed perception of reality but still presents a rose-colored lens for the rest of the world to take a peek.

Because of this show-all, tell-all way of thinking, millennials are buying experiences at restaurants instead of just food. Restaurants and bars take on a form of escapism where they can get away and have a gastronomic adventure. Going out to eat is seen as an event by millennials, so always try and exceed their expectations with your restaurant practices. For example, Jimmy Buffet’s Margaritaville has risen far above the standards of just being a restaurant chain; it’s now a lifestyle choice. This may seem like an overwhelming feat for a small business but it is possible! Rosarito’s Fish Shack (Williamsburg, New York) does a great job as a single location restaurant that brands themselves as a lifestyle. From its tasty Instagram pictures to the nautical exterior, Rosarito’s Fish Shack transports guests straight to the New England coast for a seaworthy experience.

Be proactive with your customer’s experience by training and communicating with your staff appropriately. A restaurant’s staff can make or break whether customers enjoy their stay. Take the time to show them the over-arching goal of the restaurant and your expectations of the team. How you train and communicate with your staff can be the difference between a good and bad experience for your customers. It is these little things that seem insignificant that truly add up in a consumer’s decision to visit a restaurant again.

Do's and Don'ts of Social Experience

Social Responsibility

Consumers can evoke change in the way that restaurants do business, especially consumers that are as vocal as the millennial generation. This generation is extremely cause-driven and wants to see their patronage to a restaurant have a deeper meaning.

Generation Y customers feel the need for a greater value proposition in purchases; they want to know they are making a difference in the world. As science and communication have improved, sustainable movements have been center on the world’s stage for the lifetime of millennials.

Eco-friendly activities strike a chord with this generation quicker than their predecessors. Millennials want the food and restaurant industry to share these same values.

To narrow down what works the best for your restaurant, you have to know your situation. What’s best for your theme, customer, and price point could be completely different than the restaurant next door to yours. This being said there are lots of ways to improve sustainable practices in your establishment. Use local meat sources, beef up recycling efforts, take steps to reduce food waste, find ways to reduce energy output, and visit farmer’s markets for produce.

Millennials are willing to spend more to support businesses that have these values in mind. Whether this way of thinking is selfish or not, Generation Y makes decisions that will increase self-esteem, which, in this case, works to the benefit of the environment. There are multiple ways for you to get involved in your community while also using it as an edge to market it to millennials. It’s not only social responsible for you to consider local and organic options for your restaurant, it could be lucrative as well.

Do's and Don'ts of Social Responsibility

Social Cause

The millennial generation is a melting pot of beliefs and cultural traditions. The widespread effects of social media have made them more aware of the world around them. This drives millennials to search for a greater purpose of community, which restaurants can get in on as well.

More and more restaurants and businesses are using cause marketing as a strategy instead of just an added bonus when you buy that certain product. This technique is attractive for both business owners to increase patronage and also millennial consumers that have deep interests in bettering the community around them. Cause marketing can inspire people to eat at your restaurant because you stand for something, especially if it is a cause already near and dear to that particular community.

For example, Rosa’s Fresh Pizza in Philadelphia started a movement where for a $1 you can prepay for a pizza slice for a homeless person. Rosa’s has championed single location cause marketing that has reached national recognition, with over 10,000 slices pre-purchased for others. This helped grow and aid the Philadelphia community to be more aware of others.

Another example of restaurants doing good (and through pizza) is the mission behind Malawi’s Pizza. This pizzeria’s “Pizza with a Purpose” tagline promotes the restaurant’s buy one, give one strategy. For each meal purchased here, another is given to a child in Malawi.

Pizza

Both of the restaurants are great cases for the success of what combining cause marketing and community can do. Championing a cause is a great way to actively earn free advertising but also allows customers to feel good about eating or drinking at your place of business.

Cause marketing campaigns can help your restaurant differentiate from your competition and do good deeds at the same time.

Do's and Don'ts of Social Cause

As they grow older and acquire more disposable income, millennials are becoming more of an influence in the restaurant industry. Restaurants need to know how to incorporate this demographic when making decisions. The connection that Generation Y feels for the world around them is unique, and it presents a great opportunity for restaurants to appeal to them. As these millennials become bigger consumers, it will be crucial for restaurateurs to craft their businesses to what is important to this generation.

Mobile Wallet Basics for Restaurants

Mobile Wallet Basics

Your smartphone is again evolving in usefulness.  At a point when you likely can’t imagine not having this device which serves as your phone, computer, planner, and social connection, it can now be your wallet.  In the restaurant industry, this concept poses a new adventure for owners because as with any new technology, the increased appeal to customers creates a massive adoption of the latest fad and convenience.  Your best bet is to become familiar with this concept and decide if you want to jump on the bandwagon to offer this new convenience to your customers.

What is a “mobile wallet”?

Termed “mobile wallet” or “digital wallet”, your smartphone, tablet, or smartwatch becomes the digital equivalent to that bulky wallet you carry around in your purse or back pocket.  Instead of pulling out a credit card to make a purchase, you just pull out your smartphone and pay with it.  This concept offers consumers two main benefits: convenience and security.  These benefits, as explained in a great article called Contactless Payments are Here. Are You Ready? by Brant Schelhaas from Vantiv Integrated Payments, are detailed as follows:

  • Convenience
    • No longer digging through a purse or bulky wallet to find cash or a credit card. Just grab your smartphone for payment.  Smartphones are more readily accessible these days than a card.
  • Security
    • More secure due to the fact that the technology uses encryption to help securely transmit data. Encryption is the process of encoding messages or information in such a way that only authorized parties can read it.
    • The customer never has to hand over a physical card therefore less likely to leave their card behind
    • Many contactless payment methods offer advanced identification technologies, like fingerprint readers
    • Payment networks that process contactless payments have the ability to detect attempts to use the same transaction information more than once
    • Contactless payments do not require the cardholder’s name to be passed between the card and the terminal
    • Many contactless payments do not use the customer’s actual account number when processing a payment

In addition to these customer benefits, Brant Schelhaas discusses the benefits to business owners.

  • Due to the benefits that are offered to customers, there has been and will continue to be a large increase in customer use. For those businesses that accept this new technology that customers are embracing, they will have a competitive edge over those who do not.
  • Contactless payments process faster than traditional payment methods. This means shorter lines and better customer service especially through peak times.
  • Contactless payments make business owners less vulnerable since they do not transmit the customer’s card information to the POS system.
  • Other benefits not listed in the article include:
    • Less wear and tear on your equipment due to no contact
    • Paper receipts are not required (unless requested) so there is less expense for you
    • More focus on selling versus handling cash or a card which can lead to more unplanned purchases
    • Less cash flow through your business

How do mobile wallets work?

A wallet begins with the download of a smartphone app that holds and stores debit, credit, and even loyalty card information for purchases in-store and through any virtual avenue.  Some smartphones already come with a wallet for your convenience but other apps can be downloaded if you prefer to not use the one on your phone. Below is a chart listing and offering basic information about some, but not all, of the best mobile wallets for 2016 ranked from bestcompany.com, an online company who reports real, unbiased reviews based only on consumer ratings, opinions, and experiences.  We have included the top seven of nineteen wallets listed in the article for your review in addition to some other apps on the list that are quite popular and frequently used:

Samsung Pay
  • Payment using a compatible Samsung Galaxy device
  • Swipe up to launch the app, secure with your fingerprint, and hover over the card reader to pay
  • Ability to add membership and loyalty cards
  • High-quality security
Apple Pay
  • Payment using an iPhone, Apple Watch, or iPad
  • Setup is easy with Wallet, preloaded on several apple devices
  • High-quality security with Touch ID
  • If your device is lost or stolen, use Find My iPhone or iCloud to stop the ability to use your phone for purchases
Android Pay
  • Payment using Android devices
  • Ability to add membership and loyalty cards
  • Setup is easy as it comes preloaded on some Android devices
  • High-quality security
  • If your device is lost or stolen, use Android Device Manager to instantly lock your device and secure it with a new password
Moven
  • Available on iOS and Android devices
  • Moven provides a digital bank account paired with an app to help you track your finances in real time and manage your spending
  • Can pair with your current Moven bank account and cards or you can link to your current bank account and cards
Level Up
  • Payment using iPhone, Android or Windows Phone
  • Get an instant digital receipt
  • Offers rewards for use so you can save money when you try new places and upon return
  • Engineered for security
PayPal
  • Pioneer of mobile payments
  • Send and receive payments using your desktop or iOS, Android, or Blackberry device
  • Compatible with lots of apps to make fast payments
  • Send a request for money with an e-mail or phone number
  • High-quality security
  • Free sign up, link bank info, debit and credit cards

 

Other popular apps that are frequently used:

Google Wallet
  • Send and receive money using select Android and iOS devices as well as on your desktop
  • Linked to your debit card or bank account
  • Google Wallet Fraud Protection and a PIN number for protection; high-quality security
  • If your device is lost or stolen, you can instantly remove access to your account at myaccount.google.com
Capital One
  • Payment using select Android or iPhone devices
  • Full access by Capital One credit card customers in good standing.  Capital One Bank and Capital One 360 debit card customers can use the app to receive real-time notifications, digitize gift cards, and view account balances and transactions; Wallet was designed to complement their app.
  • Instant purchase notifications and receipt capture

Once the chosen app is downloaded, the next step is to input personal payment information into the app for future use.  This can easily be done by following the instructions within the app paired with having access to your debit, credit, and/or loyalty card information as well as with your bank account number and routing number.

When loaded up with your personal information, your mobile wallet is ready to use.  Yet, not all stores/restaurants accept contactless payment.  Search on-line or in the app as to find out which establishments accept these types of payments.  Or, ask ahead.  You can also look for the contactless payment symbol within the store or restaurant as shown below.

To complete a mobile wallet transaction, the transaction requires two things:  a smartphone and an industry standard point-of-sale terminal that uses Near-Field Communication (NFC), a wireless connectivity technology that enables devices to communicate.  The smartphone just needs to be placed within 2-4 inches of the terminal and payment is completed.  Most smartphones are now equipped with NFC technology yet not all stores and restaurants have the equipment for this communication.  As time passes, this will most likely change.  With the concept of mobile wallets on the rise, customers are looking for convenience and speed with payments therefore requiring stores and restaurants to conform to these new payment trends.

How can my restaurant start accepting payments with mobile wallets?

With mobile payments on the rise, restaurants are looking to take the steps needed to adopt this new technology.  Here are some steps you can take to get the ball rolling:

Review your average sales traffic, customer base, and demographic area that you serve to determine if contactless payments are right for you.

Contact your payment provider to determine if your current point of sale terminal is already NFC/contactless payment-capable. If it is, ask your provider to enable it so that you can begin accepting contactless payments.  If it is not capable, find out what you need to do and the cost involved in changing out your equipment so that you have the ability to offer contactless payments.

Once the decision is made to offer contactless payments, develop a schedule of implementation and train your employees on how to use the contactless payment equipment and systems. Demonstration is always a great way to train so a mock set up to this process is ideal.  This would also be a great time to test the process to make sure that if any changes need made, they are done before offering it live.

When you are ready to offer contactless payments, it’s time to let your customers know! Send out an e-mail blast, communicate on all of your social media platforms, and order decals for the different payment methods that you are offering to put them up in your establishment’s windows.

These steps may sound simple but the process does take time and effort on your part to adopt.  Your current payment provider will be your biggest asset in this transition so working with them to assist you during your transition is key.

Will you jump on the bandwagon?

Mobile technology has really changed our lives.  Our phones have become more of a need than a desire because of the increased usefulness that it offers to our daily lives.  Because of this, you rarely find anyone without it.  When you add the option of using your phone as a wallet, an even closer attachment to a phone will be found and the benefits that it offers will guarantee it.  As a restaurant owner, will you jump on the bandwagon and accept contactless payments in your restaurant?  It’s a serious option to consider and one that offers benefits all around.

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