CHICAGO —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Foodservice operators attending the National Restaurant Association Restaurant, Hotel-Motel Show filled Chicago’s McCormick Place seeking the newest products, strategies and best practices to help their operations survive the recession and, perhaps, even thrive in it. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“The collective No. 1 challenge for us is the economy,” said NRA chairman Michael Kaufman as he introduced the show’s keynote panel presentation. “It’s no secret we’ve had to become sharper in building sales and managing costs.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
The most recent industry data, together with observations from those in the field, have shown the economic downswing that began in earnest last year already could have found its lowest point. Consumer confidence has been trending upward, restaurant operators’ confidence on the economy’s future has reached the highest point in a year, and restaurant analysts and investors have started to bet on the beginnings of a sector upswing. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Attendees at the trade show here also said sales seem to be stabilizing in the most recent weeks—not getting much better, but not getting any worse either. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Nevertheless, growing unemployment, a still-stagnant housing market and the volatile capital markets continue to impact the economy and the foodservice industry, many said. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Hudson Riehle, senior vice president of research and information services for the NRA, predicted that the going will remain tough for the industry for a couple of more years. Even as the economy improves, consumers will remain tight-fisted, at least initially, he said. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“We’re going to see fundamental shifts in spending,” Riehle said. “We’re also seeing the substantial influence of value marketing as cash-on-hand still remains tight.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Indeed, a restaurant’s top line in this environment is top of mind, reported members of the show’s keynote panel. The panel featured best practices from successful chains Buffalo Wild Wings and Chipotle Mexican Grill as well as observations from fine-dining restaurateurs Joseph Bastianich and Daniel Boulud, and industry consultant Damian Mogavero of performance management firm Avero LLC. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Panelists also discussed the need for successful restaurants to offer better value to today’s consumer—and not just with lower menu pricing, but through the quality of food and service as well. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
To the consumer, “a restaurant’s service and food is all relative to price,” Mogavero said. “Customers today have re-evaluated this formula, and the best companies are looking at all of these factors.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Restaurant operators in all sectors of the industry are exploring ways to add value to a customer’s dining experience, through lowered pricing, improved service, offers for reduced pricing on a second visit or a free menu item to a restaurant regular. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“Let the customer experience validate [menu pricing],” said Bastianich, a New York-based restaurateur, whose restaurants include Esca, Otto and Babbo. “It’s relative. But delivering value to customers is paramount today.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Boulud said his new casual restaurant, DBGB, which is set to open soon in New York, will be tasked with providing “indulgence on a dime, instead of indulgence on a dollar.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
He noted that stimulating sales is imperative today, even at the expense of short-term margins. Like many in the industry, he has lowered some charges on his fixed-price menus and has explored ways to create dishes with less expensive ingredients. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
At Chipotle Mexican Grill and Buffalo Wild Wings, the service aspect has been just as important as managing menu pricing and operating costs. “We have a heightened awareness today that everything needs to be perfect,” said Steve Ells, Chipotle’s founder and co-chief executive. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
At 860-unit Chipotle, where recent price increases have topped 6 percent, traffic will be driven by a focus on the quality of food and a customer’s experience, rather than just menu pricing. “I don’t see the point in…slash-and-burn discounting,” Ells said. “It’s a problem for the industry. It sends a negative image and is an unsustainable business model.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Sally Smith, Buffalo Wild Wings’ chief executive, said it was important to motivate employees throughout the 580-unit chain to drive sales using specific examples of how they can improve a restaurant’s top line. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“I can’t even tell you what the average check is,” she said. “It’s more important to look at sales per hour or sales of a product per hour. We need to help servers understand that if increasing sales by $300 is the goal, that means 60 additional hamburgers. It’s important to talk specifics.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
In a panel discussion on menu pricing and strategies, Steve Carley, president and chief executive of 418-unit El Pollo Loco, said the evaluation of menu pricing today is more important than ever. The chain most recently has been in a heated marketing battle with 5,200-unit KFC, which debuted its grilled-chicken menu items with offers for a free taste test. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“You either are on-spot with your marketing and pricing and gaining traction, or you’re not and your store is empty,” Carley said. “I have never seen [an environment] so unforgiving.” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Throughout the four-day conference, discussion surrounding the uses of social-media tools like Twitter and Facebook came in a close second to talk about driving guest traffic in the face of a difficult economy. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Chains including McDonald’s, Dunkin’ Donuts and Krystal each showcased recent case studies covering their experiences on the Web, Twitter and Facebook. The key takeaways for operators looking to employ social-media tactics included the need for authentic messaging, regardless of the medium used; an understanding that new social-media tools are two-way discussions with consumers and not always under corporate control; and the knowledge that an entire organization must be engaged around a single marketing strategy. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
All operators emphasized the message that today’s social-media tools are just like yesterday’s word-of-mouth marketing tactics. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
“The water cooler keeps moving and you need to be everywhere your customers are,” said Margie Myers, senior vice president of communications at Dunkin’ Brands. “Social media isn’t going away, but you don’t want it to. How great is it that you can connect directly to the customer?” —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Green initiatives, from solutions like energy-efficient lighting to more aggressive campaigns like sustainable food sourcing, were actively discussed between operators and suppliers. Labor efficiencies, as well as coupon and marketing tactics, also were top of mind topics on the show floor. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Attendance this year was about 54,000, down 25 percent from last year when about 71,500 attendees hit the show floor. The number of exhibitors also fell 18 percent to 1,800, from 2,200 a year ago. Officials said while the show was hurt by the economy, those in attendance were there to close business. —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
Tim Taft, chief executive of Souper Salads Inc. in Lewisville, Texas, said the show looked more sparsely attended than in years past, but that “operators really are paying attention to new products and ideas, especially if they can save money.”— [email protected] —While restaurateurs acknowledge the economy will continue to dominate business this year, many say they are utilizing the downturn to find ways to improve operations, from employing better labor practices to engaging consumers through the use of social media tools.
