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The restaurant experience was once solely comprised of human-to-human, in-person experiences. In 2022, with the introduction of ChatGPT, we saw restaurants – and just about everyother industry – look for ways to incorporate artificial intelligence within their customer operations.
A recent eBook by Softarex Technologies highlights all the main aspects of AI usage in restaurant operations, from customer service to back-of-house management. This transformation is not just about automation; it's about creating smarter, more efficient, and more personalized dining experiences.
Omnichannel communications and value-oriented customer expectations are two elements challenging restaurant owners and operators, according to a survey from Klaviyo. ” Multiple elements impact whether a potential customer actually follows through with a visit and if satisfied guests will return.
Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Too high, and youll drive customers away.
How do you stay on top of what your customers are expecting when they step through your doors? As we head into 2024, price-related issues are still top-of-mind for restaurant customers after the inflation boom earlier this year. Do you know what’s on their mind?
"The pandemic forced the restaurant industry to reinvent itself overnight, moving from a primarily in-store dining experience to an omnichannel, digital-first business. These changes have become permanent shifts in how they target customers, market themselves, and design their offerings." How Do You Stack Up?
In 2024, restaurant traffic slowed while price sensitivity grew. Moreover, three out of four respondents believe restaurant prices are higher and high prices are the primary reason for cutting back on restaurant spending. Recurring customers. Promotions and discounts attract customers, but they’re often short-lived.
Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.
"Restaurants thinking about implementing surge pricing need to balance the revenue upside with the potential brand backlash," says Savneet Singh, CEO of PAR Technology. "While ’" Is it possible for restaurants to have the best of both worlds and maximize revenue and still capture customer loyalty? Yes, and yes!
Dynamic pricing would add friction to the guest experience, according to Capterra’s 2023 Dynamic Pricing in Restaurants. Sixty-five percent of consumers say dynamic pricing would make the decision of where and when to eat more difficult; 63 percent say it would make it harder to budget their restaurant spending.
At the same time, a rise in fast-food prices driven by inflation is reshaping consumer behavior, with many customers now treating fast food as a splurge rather than a convenience. The future of dining will center on creating smarter, simpler, and more personal experiences for customers.
Just like a well-crafted mission statement will help guide your business decisions, identifying and understanding your target customers and competitors through restaurant market research will give your business a competitive edge. Do you want to find out which food items your customers love the most? With the 4.5%
With so many people leaving the industry, restaurants stepped up—raising wages, creating new opportunities, and doubling down on the employee experience. Similarly, AI-driven thermostats will optimize indoor climates, enhancing the comfort of both staff and customers while balancing energy usage.
As the restaurant industry moves into 2025, design is taking center stage as a key driver of guest experience, operational efficiency and brand storytelling. Design is more than aesthetics, it’s a strategic tool for enhancing guest experience, driving operational success and telling your brand’s story in an ever-competitive space.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
Running a restaurant isn’t just about crafting the perfect plate or creating an unforgettable experience for your guests, it’s about making money. Many distributors will adjust their margins when they see a customer who understands their value. Here’s an example from my own experience. Don’t fall for it.
Many restaurant operators have misconceptions about average order volume (AOV) and how it works, making statements like: I need more customers to make more money. In fact, boosting AOV is one of the easiest and most effective ways to increase revenue while improving the customerexperience for your guests.
Restaurant owners looking to purchase an existing license can face prices up to $1 million depending on demand. In California, annual fees for a liquor license can also reach up to $1M, depending on factors like operating hours, customer policies, and whether the establishment offers on-site brewing.
In the modern dining landscape, where convenience and customerexperience are paramount, restaurants increasingly rely on electronic payment systems to facilitate transactions. For restaurants, especially those operating on thin margins, these fees can influence pricing strategies, profitability, and even operational decisions.
With social media shaping trends, culture and commerce around the clock, younger generations are increasingly using these platforms to discover new dining experiences. Now is the time for restaurant brands to ask: Are we merging human insight with technology to craft meaningful customer journeys? Benihana exemplifies this approach.
However, 30 percent of high-income consumers are dining at TSRs more frequently than before, signaling room for premium offerings at the right price. Value Isn’t Just About Price—It’s About ExperiencePrice sensitivity may be at an all-time high, but focusing solely on discounts risks missing the bigger picture.
. "Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss," Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. "We
With digital and frictionless experiences at the forefront, diners are seeking their favorite restaurants in new, more affordable ways. Some brands’ apps even track mobile-order customers’ location to help ensure their food is fresh, whether it’s a burger or a salad. The top reasons?
From my experience, it is difficult to experience a dinner for two in a moderate full-service, independent restaurant for less than $120 without gratuity. Look at the cost of raw materials required to produce those items and ask a simple question: “Can we afford to sell these items and will people pay the price we need to charge?”
“Through expansive experiences that inspire our guests paired with the ambiance of the space and the food on the plate, we’re setting new standards for the industry and creating truly spectacular moments for all who enter our restaurants and bars.”
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Key customer factors that influence dining preferences, from demographics to behavior. A restaurant target market is the specific group of customers your restaurant is designed to attract.
In show of changing customer preferences, over half of the brands on this year’s list are new (27) compared to last year. Many of the restaurant brands on the list, like Dave’s Hot Chicken and Cava, are thriving by offering high-quality, and on-trend food at accessible prices.
Beata Zawrzel/NurPhoto via Getty Images New CEO Brian Niccol is hoping customers will fall back in love with the coffee chain. Starbucks had its moment in the sun, but at some point along the way, it lost touch with what its customers were actually looking for. Here’s why they fell out of love in the first place.
More than eight in ten restaurant operators expect 2025 sales to meet or exceed 2024 levels, but rising competition will require differentiation through experience, service, and innovation, according to The National Restaurant Association’s 2025 State of the Restaurant Industry report.
They have to balance keeping customers happy while making sure their staff gets paid fairly. Restaurants must rethink their approach to tipping to retain staff and keep customers happy. This takes the pressure off customers and ensures that everyone gets their fair share. Simplifies the tipping process for customers.
Revenue growth in 2024 was largely driven by menu price adjustments. Although concerns about customer sensitivity influenced pricing decisions, only 9 percent of restaurants did not change prices in 2024, down 19 percent from 2023, indicating a stronger shift towards strategic price increases.
These metrics give you a clear picture of your delivery performancefrom order volume and customer retention to delivery speed and profitability. This might seem like a small detail, but it plays a big role in the overall delivery experience and significantly impacts customerexperience. What Impacts Order Volume?
In both fine dining establishments and cafes, filtered, sparkling water is increasingly part of the included hospitality experience, not an upsell. Sinzer also considers what ensures diners feel like the price tag equates to a full experience. “We And that’s how it should be.
Technology doesn’t just level the playing field; it allows mom-and-pop shops to improve efficiency, reduce wait times, and enhance the customerexperience in ways that were once out of reach. The benefits expand beyond labor and into customer data and efficiency. However, customer expectations are constantly evolving.
For a long time, third-party delivery apps seemed like the easiest way to get your restaurant online and in front of new customers. This means customers place orders through your own website or appnot a third-party platform. This means customers place orders through your own website or appnot a third-party platform.
What should be a reassuring sightscreens full of customer ordersis actually a logistical nightmare. A single mistakelike forgetting to accept an order on one app while preparing anothercan result in a frustrated customer and a lost sale. These small errors add up, leading to unhappy customers, negative reviews, and wasted food costs.
This ideally reinforces the connection in the customer’s brain between their everyday choices and the resulting impacts on the environment: “You’ve saved so many gallons of water, you’ve saved so many square meters of land and emissions and energy,” as Goldman says. Congratulations. The environmental mission can come later. So he took action.
11, 2024, comparing it to the average Sunday in 2024 and found that: Wings win MVP with an 87 percent increase in sales The average price of wings ordered increased 18 percent. The average price of wings increased 18 percent, likely due to demand and larger orders. “Customers still associate the experience with your brand. .
This is where a buying group brings that advantage, helping source at the best price, quality, and then creating sourcing redundancy when mother nature gets in the way of supply with fresh agricultural products. This is another area where produce buying groups have experience and will help food service operators navigate.
Customers expect to browse menus, place orders, and pay for their meals with just a few taps of their phones. For restaurant operators, this presents both an opportunity and a challenge: how to implement an online ordering system that maximizes revenue while maintaining control over their customer relationships. billion in revenue.
For a deeper dive into brand messaging, strategy, and authenticity, creating unified guest experiences, and the orchestration of physical and experiential touchpoints, Modern Restaurant Management (MRM) magazine reached out to The Plaid Penguin’s Founder and Sir Idea Man Joe Haubenhofer. A strong restaurant brand goes beyond a logo.
Operators would see increased prices in their supply chain, resulting in rising costs to their guests as well. For instance, we're seeing a significant shift towards personalized guest experiences. What does the Canadian guest expect from a restaurant experience? AI is also boosting staff productivity.
Survey results indicate diners are seeking distinctive dining experiences, planning ahead with early reservations, and seeking out earlier evening bookings The holiday season is bringing a wave of excitement among diners, with 68 percent of respondents planning to celebrate at restaurants or bars.
Fast food chain Wendy’s has announced plans to test “dynamic pricing” at its locations across the country, beginning in 2025. According to CNN, the move is a part of the chain’s $20 million investment in digital menu boards, which will allow it to tweak the price of a Biggie Bag or Frosty in real time. If so, you’re in luck!
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