Independent restaurants and small chains now make up 67% of the restaurant industry, according to Technomic data—and the opportunity for them to thrive is here. The state of the economy may suggest that diners are spending less at restaurants or choosing to cut back on what they order when they do dine out. However, the data suggests otherwise. Compared to Q1 2020, consumers are paying less attention to menu prices, aren’t necessarily picking the restaurant with lower prices, and aren’t always comparing prices anymore, according to Technomic Ignite Consumer data. While consumers may be dining out less overall, they are still looking for premium quality and a memorable experience.
For operators that want to win in 2023, there are three big ways they can do so: Exceed consumers’ new expectations, do more with less and build new revenue streams.
Exceeding expectations
Consumers are looking for more when they dine out now—more value, higher quality and interesting dishes on the menu—and that last part is most important. Nowadays, craveability is more important to consumers than cost, so it’s essential to offer dishes that will pique diners’ interest. Craveable choices heading into the new year include southern-inspired options, creamy sauces and unique pizzas—think less common cheeses and unconventional toppings, fruit or citrus flavored beverages, and upscale ingredients. What’s more, restaurants should be considering the needs of the whole table—59% of millennial consumers who live with children say that a kids menu offering is an important factor when choosing where to dine, according to Technomic’s 2022 Generational Consumer Trend Report.
Doing more with less
Labor remains a critical pain point for operators right now, and is likely to continue for a while. With that in mind, strategies for saving labor and optimizing the menu will be paramount. While automation is one way to streamline labor needs, consumers—particularly younger consumers—still prefer traditional service, so operators should consider other strategies, too. Focus on the ease of execution of dishes. For example, offering less complex dishes, using high-yield products and using easy-to-source ingredients ensure speedy, reliable service without sacrificing great taste.
Building new revenue streams through off-premise dining
Off-premise dining took off during the pandemic, and it’s here to stay, so operators should be sure to continuously refine their efforts to ensure maximum satisfaction. Third-party delivery providers can ease the burden of needing dedicated delivery workers. As a caveat, operators should be aware that if there are snags with those deliveries, it is the restaurant that will take the blame, not the delivery provider. Choose a partner carefully—customers will recognize the additional effort put in.
Off-premise quality should be considered as well. Ensuring each dish available for takeout or delivery can withstand the associated wait times can help avoid customers dissatisfaction. Do not feel nervous about eliminating dishes that do not travel well. By having a smaller, tighter menu for off-premise dining, operators can feel confident in their offerings.
Success in 2023 will hinge on whether operators are keeping up with consumer demand—and not just for great food, but great service, unique offerings and off-premise options. Learn more at nestleprofessional.com.
This post is sponsored by Nestlé Professional