Tag: tech

BEYOND PRICE HIKES: INNOVATIVE STRATEGIES FOR BOOSTING RESTAURANT PROFIT

Posted on by Franchise Strategist

Photo by Lily Banse on Unsplash

Raising menu prices might seem the easiest solution to boost profits, it is not always the best approach. By optimizing your menu, reducing waste, enhancing the customer experience, embracing technology, offering unique experiences, upselling, managing labor costs, and exploring alternative revenue streams.

BEYOND PRICE HIKES: INNOVATIVE STRATEGIES FOR BOOSTING RESTAURANT PROFIT
By Fred Kirvan – Founder and CEO, Kirvan Consulting

Profitability is always the goal for any business, for restaurants maintaining profitability can often feel like a delicate balancing act. When margins tighten, the instinctive response might be to raise menu prices. However, this approach isn’t always the most effective—or the most welcomed by your customers. Fortunately, there are numerous strategies to enhance your restaurant’s bottom line without resorting to price hikes. Here are some creative and practical ways to boost profits while keeping your patrons happy.

Optimize Your Menu
One of your most powerful tools is your menu. Streamlining your offerings to focus on high-margin items can significantly improve your profit margins. Conduct a thorough analysis of your menu to identify popular and cost-effective dishes. Promoting these items more prominently encourages customers to choose them, thereby increasing your average profit per order.
Additionally, consider implementing menu engineering techniques. This involves categorizing your dishes based on their popularity and profitability and strategically placing high-margin items in prominent positions on the menu. Descriptive, appetizing language and professional photography can make these dishes more appealing.

Reduce Food Waste
Food waste is a significant issue in the restaurant industry, often leading to unnecessary expenses. You can reduce waste and improve your bottom line by implementing better inventory management practices and training staff on portion control. Consider using technology solutions like inventory management software to track your stock and forecast demand accurately.
Creative use of ingredients can also help minimize waste. For example, using vegetable scraps for soups and sauces or repurposing leftover bread for croutons can turn potential waste into profitable dishes.

Enhance Customer Experience
A memorable dining experience can turn first-time visitors into loyal customers. Investing in staff training to improve service quality, creating a welcoming ambiance, and ensuring consistent food quality can enhance the overall customer experience. Happy customers are more likely to return and recommend your restaurant to others, increasing your revenue through repeat business and word-of-mouth marketing.
Loyalty programs and personalized marketing can further enhance customer retention. Offer rewards or discounts to repeat customers, and use data from your point-of-sale system to send personalized offers based on past dining habits.

Embrace Technology
Technology can play a crucial role in streamlining operations and reducing costs. Online ordering and delivery systems, digital reservation platforms, and self-service kiosks can improve efficiency and reduce labor costs. Adopting a robust point-of-sale system can provide valuable insights into sales trends, helping you make informed decisions about menu adjustments and promotions.
Social media and online marketing are also powerful tools for attracting new customers. A solid online presence, engaging content, and targeted advertising can increase visibility and drive traffic to your restaurant.

Offer Unique Experiences
Differentiate your restaurant by offering unique experiences that go beyond just dining. Themed nights, live music, cooking classes, or wine-tasting events can attract new customers and provide additional revenue streams. Collaborating with local businesses for cross-promotions can also expand your customer base and create a sense of community.

Focus on Upselling
Training your staff to upsell effectively can significantly boost your average check size. Encourage servers to suggest appetizers, side dishes, desserts, and beverages. Highlighting unique pairings, such as wine or cocktail recommendations with certain dishes, can enhance the dining experience while increasing sales.

Manage Labor Costs
Labor costs are one of the most significant expenses for any restaurant. Optimizing your staffing levels based on customer demand can reduce unnecessary labor costs without compromising service quality. Cross-training employees to handle multiple roles can also increase flexibility and efficiency, allowing you to manage your team more effectively during peak and off-peak hours.

Explore Alternative Revenue Streams
Consider diversifying your revenue streams, including catering services, meal kits, or branded merchandise. Offering cooking classes or hosting private events can also provide additional income. These alternative revenue streams can help stabilize your income and mitigate the impact of seasonal fluctuations in business.

Summary
While raising menu prices might seem the easiest solution to boost profits, it is not always the best approach. By optimizing your menu, reducing waste, enhancing the customer experience, embracing technology, offering unique experiences, upselling, managing labor costs, and exploring alternative revenue streams, you can improve your restaurant’s profitability in more sustainable and customer-friendly ways. Implementing these strategies will help you maintain a healthy bottom line and create a loyal customer base that appreciates the value you provide.

Learn More about Restaurant Profit Growth

REVOLUTIONIZING FRANCHISE GROWTH: THE POSITIVE IMPACT OF NEW TECHNOLOGIES ON MULTIPLE LOCATIONS AND BRANDS

Posted on by Franchise Strategist

Photo by cottonbro studio

The franchise industry is undergoing a significant transformation driven by various innovative technologies. Cloud computing, AI, mobile applications, IoT, VR, AR, blockchain, data analytics, chatbots, RPA, and 5G are collectively shaping the future of franchises with multiple locations and brands.

Revolutionizing Franchise Growth: The Positive Impact of New Technologies on Multiple Locations and Brands
By FMM Contributor

The franchise model has become an increasingly popular avenue for entrepreneurs looking to establish a presence in various markets. With the advent of new technologies, franchises are experiencing a transformative shift that positively impacts their growth across multiple locations and brands. This article explores the cutting-edge technologies reshaping the franchise industry and propelling businesses to new heights.

Cloud Computing: Enhancing Connectivity and Efficiency
One of the key technologies driving franchise growth is cloud computing. This allows franchisees to store and access data remotely, streamline operations, centralize information, and enhance collaboration among multiple locations. Cloud-based systems facilitate real-time data sharing, enabling franchisees to make informed decisions promptly. As a result, brands can maintain consistency in their operations and customer experiences across diverse geographic locations.

AI and Machine Learning: Personalizing Customer Experiences
Artificial Intelligence (AI) and machine learning algorithms empower franchises to personalize customer experiences. By analyzing customer behavior and preferences, franchises can tailor their marketing strategies, recommend products, and provide targeted promotions. This enhances customer satisfaction and fosters brand loyalty, a crucial factor for sustained growth in a competitive market.

Mobile Applications: Streamlining Operations and Customer Engagement
The proliferation of mobile applications has revolutionized how franchises operate and engage with their customer base. Brands can leverage mobile apps for streamlined order processing, loyalty programs, and real-time customer communication. Mobile apps enhance the overall customer experience, offering convenience and accessibility that resonate well with today’s tech-savvy consumers.

IoT (Internet of Things): Smart Franchising for Operational Excellence
The Internet of Things (IoT) brings us into intelligent franchising by connecting devices and systems. Franchises can utilize IoT to monitor equipment performance, track inventory levels, and optimize energy consumption across multiple locations. This improves operational efficiency, reduces costs, and minimizes downtime, contributing to sustainable growth.

Virtual Reality (VR) and Augmented Reality (AR): Immersive Brand Experiences
Virtual and augmented reality technologies are changing how franchises engage with customers. Brands can create immersive experiences through VR and AR applications, allowing customers to virtually experience products or services before purchasing. This innovative approach attracts new customers, strengthens brand identity, and fosters a unique connection with the audience.

Blockchain: Ensuring Transparency in Supply Chain Management
Blockchain technology is revolutionizing supply chain management for franchises with multiple locations. Franchises can enhance traceability and reduce the risk of fraud in their supply chains by providing a secure and transparent ledger of transactions. This level of transparency instills confidence in customers and helps franchises build stronger relationships with suppliers and partners.

Data Analytics: Informed Decision-Making for Strategic Growth
Data analytics are crucial to the success of franchises with multiple locations. By harnessing the power of data, franchises gain insights into consumer behavior, market trends, and operational efficiency. This information enables informed decision-making, allowing franchises to adapt to changing market demands and adjust their strategies for sustainable growth.

Chatbots and Virtual Assistants: Improving Customer Service
Franchises increasingly incorporate chatbots and virtual assistants to enhance customer service across multiple locations. These AI-driven tools can handle routine inquiries, provide instant responses, and offer personalized assistance. By automating certain aspects of customer service, franchises can better allocate resources and ensure a consistent and positive customer experience.

Robotic Process Automation (RPA): Streamlining Back-End Operations
Robotic Process Automation (RPA) is streamlining back-end operations for franchises, particularly in finance, human resources, and inventory management. By automating repetitive tasks, franchises can reduce operational costs and save resources for more strategic initiatives. These efficiency gains translate to improved scalability and sustained growth.

5G Technology: Accelerating Connectivity
The advent of 5G technology is a game-changer for franchises with multiple locations. This enhanced Connectivity by 5G enables seamless communication, more immediate data transfer, and enhanced mobile experiences. Franchises can leverage 5G to support innovative applications, such as augmented reality experiences, that rely on high-speed and low-latency networks.

The franchise industry is undergoing a significant transformation driven by various innovative technologies. Cloud computing, AI, mobile applications, IoT, VR, AR, blockchain, data analytics, chatbots, RPA, and 5G are collectively shaping the future of franchises with multiple locations and brands. Embracing these technologies improves operational efficiency, enhances customer experiences, fosters brand loyalty, and positions franchises for sustained growth in an ever-evolving business landscape.

LEARN MORE ABOUT FRANCHISE GROWTH HERE
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This post was researched and edited with the support of AI

TRENDS EXPECTED TO DOMINATE RESTAURANTS IN 2024

Posted on by Franchise Strategist

Photo by Louis Hansel on Unsplash

As we anticipate the culinary landscape of 2024, it is evident that restaurants are gearing up to meet the evolving demands of their patrons. Whether through sustainable practices, plant-based offerings, technological advancements, global fusion flavors, personalized menus, or immersive experiences, the industry is set to provide an array of exciting options

Trends Expected to Dominate Restaurants in 2024
by Franchise Strategist

Introduction:

In the ever-evolving landscape of the culinary world, staying ahead of the curve is paramount for restaurants seeking to attract discerning diners. As we step into the year 2024, the gastronomic scene is poised to witness a plethora of innovative trends that promise to tantalize taste buds and redefine the dining experience. In this article, we will explore the upcoming restaurant trends that are set to make waves in 2024, showcasing the industry’s commitment to culinary excellence and customer satisfaction.

Sustainable Dining:
Sustainability continues to be a driving force in the restaurant industry, with eco-conscious consumers placing a premium on environmentally friendly practices. Restaurants are embracing sustainable sourcing, reducing food waste, and adopting eco-friendly packaging. Keywords such as “sustainable dining,” “eco-friendly restaurants,” and “zero-waste practices” will undoubtedly gain prominence in 2024.

Plant-Based Revolution:
The plant-based movement is reaching new heights, and in 2024, we can expect an even greater emphasis on plant-based menus and alternatives. Phrases like “plant-based cuisine,” “vegan options,” and “plant-forward dining” will resonate with a growing audience seeking healthier and environmentally conscious dining choices.

Tech-Infused Experiences:
As technology continues to permeate every aspect of our lives, the restaurant industry is no exception. Keywords like “smart menus,” “contactless ordering,” and “virtual dining experiences” will become synonymous with establishments embracing innovative technologies to enhance customer service, streamline operations, and create a seamless dining experience.

Global Fusion Flavors:
Culinary boundaries are blurring as chefs experiment with diverse global flavors to create unique and fusion-inspired dishes. “Global fusion cuisine,” “international flavors,” and “culinary crossroads” will define the menus of trendsetting restaurants, offering patrons an exciting journey through the world’s diverse culinary traditions.

Hyper-Personalized Menus:
Consumer preferences are becoming increasingly individualized, and restaurants are responding by offering hyper-personalized menus. Utilizing data analytics and customer feedback, keywords such as “personalized dining,” “bespoke menus,” and “customized culinary experiences” will dominate discussions as restaurants strive to cater to the specific tastes and preferences of their clientele.

Immersive Dining Experiences:
In 2024, diners will seek more than just a meal; they crave immersive experiences. Restaurants are incorporating elements like live entertainment, interactive cooking demonstrations, and themed dining nights. “Immersive dining,” “live culinary performances,” and “interactive dining experiences” will be buzzworthy phrases associated with establishments offering more than just a delicious plate of food.

Conclusion:

As we anticipate the culinary landscape of 2024, it is evident that restaurants are gearing up to meet the evolving demands of their patrons. Whether through sustainable practices, plant-based offerings, technological advancements, global fusion flavors, personalized menus, or immersive experiences, the industry is set to provide an array of exciting options for diners seeking both culinary excellence and a memorable dining adventure. Stay tuned as these restaurant trends take center stage, shaping the way we dine in the years to come.

LEARN ABOUT FRANCHISING YOUR RESTAURANT CLICK HERE
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This article was researched and edited with the support if AI

Modern Tech Can Give Restaurants An Edge

Posted on by Franchise Strategist

It is much more likely that franchisors, with resources already on hand, will be able to promote system-wide improvements for all franchisees in their systems.

Modern Tech Can Give Restaurant Businesses An Edge
By Jeremy Einbinder

Restaurants are continuing to use newer technologies that have the potential to optimize the experience both for the consumer and the business. Anything that improve customer experience and reduce labor costs- which is very important in a tight market- is a win-win.

Franchised Restaurants Set Themselves Apart

All of these innovations are especially important for franchised restaurants and allows them to set themselves apart from other restaurants. For entrepreneurs looking to open restaurant locations, it can be difficult to gather all the technological resources available to improve operations. It is much more likely that franchisors, with resources already on hand, will be able to promote system-wide improvements for all franchisees in their systems. These technological enhancements are wide-ranging and could set off a franchise restaurant boom.

For instance, instead of third-party delivery apps, many customers report a preference for ordering directly from the restaurant itself. It would be beneficial, if possible, for a company to have their own internal delivery app. In addition to building brand recognition, this also helps businesses avoid paying exorbitant fees.

Fred Kirvan, Founder and CEO of Kirvan Consulting, a New Jersey based restaurant optimization and consulting firm said: “At this year’s National Restaurant Show, we observed some notable improvements in tech-driven kitchen equipment aimed at providing a more consistent product to its end-user but much of the new tech seemed to be aimed at employee retention.”

Look But Don’t Touch

Payment technologies which allow for no-contact money transfer can also prove to be crucial, especially since the pandemic. In keeping with no-touch technology, it is becoming commonplace for customers to also access only menus and order without contact, allowing for a much safer environment for everybody. The cost reduction for restaurants can be substantial.

There are also tech payment options for employee payroll. Kirvan noted: “Companies offering early pay options and incentives were the noticeable standouts for me. Employee retention is key when you can consider all the software available for taking orders, you’re going to need people to prepare those orders.

Reservation applications like Eat App, Tablein, or OpenTable allow customers to see available time slots, and book their times at their convenience. In such apps, users simply view the time slots available with the number of seats needed and select one. This takes away any awkward interaction with staff of someone calling the restaurant and asking for a specific time for a reservation, only to realize it’s not available. For the business, it allows much greater flexibility in managing waitlists as well as customer loyalty.

Reducing Friction for the Front and Back of House

For streamlining customer orders, Kitchen Display Systems are very efficient, allowing both customers and kitchen staff to seamlessly log orders, instantly displaying them on screen according to priority. This also makes accommodating dietary restrictions much easier.

Radwan Masri, a 30 year veteran in the hospitality industry and a leading international culinary consultant and franchise expert with Ayy Karamba Hospitality added “The other side of food service tech driven business is FOH & BOH automation. Labor shortage in the service business combined with an increase demand for delivered food has impacted how food orders is being processed from start to end. Self-Serve ordering stations, QR codes scanning procedures. Your order nowadays through a drive through window is not the same as it used to be. i.e. I order in Chicago via a drive through window while my order is being processed by a mom sitting at home in Atlanta GA!”

This type of innovation is incredibly valuable and can easily cut down on unnecessary laborious tasks for employees. In addition, artificial intelligence technologies like Winnow reduce food waste. Using a camera, Winnow “learns” to recognize different foods being thrown away. It then calculates the financial and environmental cost of this discarded food to commercial kitchens. This in turn saves company’s money.

In Conclusion

If franchisees and independent restauranteurs expect to stay relevant and competitive they need to take advantage of these burgeoning technologies. The guest expectation has risen as a result of the pandemic and most guests will give a restaurant one, perhaps two chances to meet or exceed their exceptions. When it comes to the the overall guest experience, using these technologies gives operators a better chance to succeed.

3 Trends Poised For Growth In 2022 And The Tech Startups Helping To Fuel Them

Posted on by Franchise Strategist

3 trends poised for growth in 2022 and the tech startups helping to fuel them

(BPT) – The past year has brought a flurry of changes for many people. Maybe you’ve embraced online shopping and want to start to incorporate meal planning into that experience. Perhaps you’ve gotten into selling things from the comfort of your home or you’re now working remotely with people around the world.

Digital solutions meet modern needs so you can do these types of things successfully, whether you’re a consumer or an entrepreneur. Three of the top digital trends of 2022 showcase the growth of technology solutions by innovative startups focused on making life better.

Trend 1: Simplified online grocery shopping

The food marketplace is an evolving space with two trends poised for continued growth: online grocery shopping and meal planning. Grocery Shopii is the solution for shoppers who want to integrate meal planning into a customized online shopping experience.

Today, meal solutions are helping consumers tackle meal fatigue and save time. Not only are Shopii recipes curated by top bloggers, they’re hyper-personalized to each client’s preferences, offering suggestions that align with existing shopping habits. Plus, Grocery Shopii utilizes machine learning to expedite meal planning and online grocery shopping to 5 minutes or less.

Grocery Shopii is free for shoppers and helps grocers provide a tailored experience, which in turn builds customer loyalty. Learn more at GroceryShopii.com.

Trend 2: Interactive fashion resale marketplace

What people choose to wear defines who they are, and today more people than ever want to stand out in their own unique way. That’s why interest in vintage clothing, upcycled fashion, and handmade accessories is soaring, and Galaxy is connecting passionate sellers with engaged buyers.

Galaxy is the first platform of its kind to fuse live shopping and fashion resale, creating a truly social, entertainment-geared shopping experience with sustainable fashion at its core. With Galaxy, shoppers can have conversations while buying, allowing them to make more informed decisions and understand the stories behind the pieces they’re browsing.

Galaxy enables the next generation of fashion entrepreneurs to find and build their community, plus, unlike other platforms, takes no commission or fees. Visit Galaxy.Live for more information.

Trend 3: Symbiotic solutions to labor needs and economic empowerment

The labor shortage crisis, the Great Resignation, diversity challenges — job economy topics continue to capture headlines. Companies of all sizes are struggling to fill roles with quality candidates who meet their needs.

Meaningful Gigs is one solution that solves many issues that companies are facing today. This tech-packed platform connects skilled African designers with companies seeking high-quality digital design work. Their vision is to create 100,000 remote skilled jobs in Africa by 2028.

Meaningful Gigs provides companies with a way to tap into global diversity while also delivering critical design solutions for their businesses for creative, product and marketing teams. By supplying people in Africa with skilled jobs, the company focuses on continuous economic empowerment and socioeconomic advancement. Discover more at MeaningfulGigs.com.

2022 is sure to be a year of continued change as people increasingly rely on digital solutions. Explore these trends to see how they impact your life, and consider new technologies to meet your needs.