With the new year fast approaching, foodservice and restaurant operators continue to grapple with strategies to overcome the challenges they face in today’s economic climate.
The question is how to create priorities and an agenda that maximizes the guest and customer experience profitably.
We see four key concerns and would like to dedicate this space to suggesting solutions and strategies for dealing with each.
Labor issues are still a top concern. From attracting, training, and retaining talent to addressing increasing employee costs, some restaurants are scaling back their hours of operation as a result.
Those lost hours equate to lost revenue.
Secondly, there’s no question that inflation has hit the industry hard. Rising food costs, interest rates, rent, business license fees, and other expenses are all high.
Next, the proverbial deck has been shuffled with the hybrid work week hurting restaurant sales. When people work from home, they are less likely to go out to eat.
Finally, state and local regulations are also posing challenges.
As we expand our footprint across North America, we see multi-unit restaurant companies with locations across the USA and Canada, each dealing with different rules and with that the challenge of maintaining consistency and cost control.
Our first suggestion for 2024 is to increase your investment in training.
A 2023 survey by the National Restaurant Association revealed that 62 percent of operators reported not having enough employees to meet customer demand.
This includes both full-service and limited-service restaurants. The food and beverage industry’s turnover rate is higher than in any other industry, according to the US Chamber of Commerce.
Working in a restaurant is a demanding job, both physically and mentally. Many workers report feeling burned out every day.
And, when a restaurant is short-staffed, the current team pulls double duty which adds to their frustration.
That said, a career in foodservice can be a rewarding profession with opportunities for advancement, flexible work schedules, team-focused and socially interactive cultures, and chances to be creative.
Restaurant workers who receive ongoing training are more likely to feel valued and respected, perform their job function at a higher level, and have positive attitudes about their work.
Investing in training increases employee engagement, productivity, and retention. Training will also help reduce mistakes and accidents, ensure compliance with regulations, and maintain a high standard of professionalism.
Training programs include a combination of in-house training addressing the culture and values of your organization, customer service standards, food and beverage preparation and sales, and cleaning and sanitation procedures.
External training offered by suppliers and industry associations include food safety, alcohol service, and allergen management. Training can be delivered in person or online.
Our next suggested focus is on waging your own war on inflation with a new look at expense management. With rising costs comes the need to save money wherever possible.
On average, a restaurant wastes 4-10% of their food inventory. Reducing food waste can cut overall costs by 2-6%. Start with a food waste audit to determine the amount of pre-consumer and post-consumer waste and the sources such as spoilage, over-preparation, errors, portion size, etc.
Next, determine tactics to address each category of waste including improving inventory control, ensuring proper storage, and repurposing ingredients to avoid scrapping.
Menu editing is another approach to reducing waste of slow-moving ingredients. In addition to saving money, reducing food waste will have a positive impact on the environment and supports sustainability initiatives.
Schedule a review of all non-food supplies and determine opportunities to consolidate SKUs, switch to better-value options, and take advantage of innovations that will not only save money but improve customer satisfaction.
Ask your supplier to perform an analysis of your paper products, packaging, and sanitation supplies and recommend alternatives that will meet your changing needs.
You may be able to save money on some items allowing you to invest in upgrading others that improve the customer experience.
Using technology such as kiosks or tablets will speed up the ordering and payment processes, improve order accuracy, and free up staff for other tasks.
With consumers pulling back on discretionary spending and many continuing to work from home, restaurants are seeing fewer customers through their doors.
Look at traffic erosion, opportunities to reverse that trend are the catalyst for increased sales in 2024. To increase sales, operators need to embrace the changing consumer behaviors and preferences.
Behavior has shifted based on circumstances you can’t control; however the good news is that there are tools you can employ to either recapture customers or replace them.
Online ordering continues to grow at 6% per year with the meal delivery segment expected to reach $120 billion by 2027.
Investing in websites, social media marketing, and loyalty programs are an effective way to meet your potential customers where they are.
90% of diners look at a restaurant online before visiting it in person and for those wanting to order for delivery, a robust online presence is table-stakes.
With delivery and take-out making up a large portion of sales, it is important to ensure food is packaged properly. Poor packaging can lead to dissatisfied customers and bad online reviews.
Make sure the packaging you choose is designed to maintain food integrity, prevent leaks, and deter tampering. Packaging can also be used to promote your brand and special offers to encourage repeat sales.
Using sustainable packaging options is another avenue for improving customer satisfaction. From compostable bowls to reusable containers, packaging that can be diverted from a landfill is often appreciated by today’s consumers.
Let’s not forget the basics of sound restaurant management. One is maintaining a clean and sanitary establishment, something that is crucial to a restaurant’s success.
Dine in customers are more aware of cleanliness than ever before and will not return to a restaurant if they do not believe is clean.
Keeping the front of house areas clean including restrooms, dining rooms, and even pick-up counters is a must. Kitchen sanitation is also a top priority.
This is an area to invest in training for your staff. Your supplier of cleaning and sanitation supplies may offer training resources.
For example, Imperial Dade’s training programs include classes specific to food safety, restroom cleaning, floor care, and more.
We offer sessions via webinars, live classes, YouTube videos, and articles.
Finally, a key to success in ‘24 is staying informed and compliant with regulations.
We are more than happy to help guide you to readily available resources to keep you on top of changes in restaurant laws and regulations that are tightly monitored by state and local authorities.
Even the most diligent food business owner can miss an important rule and be charged with fines or even shut down. These regulations include health and safety codes as well as environmental regulations.
Surprise inspections are performed that check to ensure that all requirements are met.
Some jurisdictions require every staff member that comes into contact with food complete training to earn a food handlers’ card and that managers and chefs earn food safety certification.
Staying compliant can be challenging when staff turnover is frequent.
There are additional environmental regulations restricting the disposal of organic waste and banning certain types of packaging materials, including plastic bags and straws.
These rules vary widely by state, county, or city and can be challenging to keep up with, especially for operators with multiple locations.
Restaurant associations are an excellent source of information on regulatory standards. State and municipal websites may be helpful and are updated frequently to reflect the latest statutes.
Bookmark these websites and create a regular cadence of checking to ensure you are up to date on what is required. Suppliers can also be a resource for training, guidance, and recommending alternative products to ensure compliance.
Imperial Dade frequently publishes informative content, articles and videos, available to the public on our Expert Insights leaning center and on our YouTube channel.
These are researched with industry subject matter experts, not AI, and are peer reviewed for accuracy. We’re looking forward to a great 2024. Let us know how we can help.
