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Marketing

What do hybrid work changes mean for restaurants?

9/27/2024

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Amazon made headlines recently with its announcement that it would require all employees to return to the office five days a week as of this coming January. The online retailer joins major companies such as UPS and Dell, which have made similar calls in recent months, and it launched speculation that many employers that are struggling to maintain their company culture amid hybrid work may see this as an opportunity to bring employees back to the office. While the response to Amazon’s announcement has been mixed, it’s surely good news for foodservice businesses. Years of hybrid work have created uncertainty around future planning for restaurants, reduced foot traffic and shifted consumer dining habits, among other effects. A report from CNBC acknowledged that while many restaurants and hotels in city downtowns have seen their sales come back to pre-pandemic levels, that’s only happening on Tuesdays, Wednesdays and Thursdays. So the return of employees to cities is likely to create more reliable, predictable foot traffic during lunch and the daily commute. It’s interesting timing for restaurants looking for opportunities – or for the right moment to make changes. In a recent report from Bank of America, which preceded the news from Amazon, Ted Lynch, managing director of the bank’s Global Commercial Banking’s Restaurant Group, predicted 2025 to be a busy year for restaurant mergers and acquisitions. Amy Forrestal, managing director of the Atlanta investment bank Brookwood Associates, agreed. John Hamburger, publisher of the Restaurant Finance Monitor, acknowledged that for foodservice businesses looking to grow or develop new concepts, “there are still a lot of reasons to be a buyer.” Other industry analysts have said in recent months that activity around restaurant bankruptcies and restructuring will largely depend on return-to-work trends. Now there are clear signs that such changes are on the horizon. If you’re looking for opportunities, now could be a good time to assemble advisors, assess your budget, define your goals and weigh the revenue potential of various options based on the shifting landscape.
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Is it time for a marketing blitz?

9/6/2024

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Whether it’s inflation, labor expenses, or rising menu costs causing guests to visit restaurants less (or order less when they do), restaurant operators may feel there is little room to maneuver these days. That makes marketing all the more important — and as a recent newsletter from Restaurant Business suggests, right now there are a lot of brands doubling down on developing the kind of messaging that compels the right guests to come back. For instance, Papa John’s has shifted its promotions to focus more on its value offerings than on premium, quality ingredients. Portillo’s is planning a television and billboard ad campaign to coincide with football season. First Watch is fine-tuning its outreach to customers, including those in its loyalty program, to encourage people to dine with them. Statistics shared by Menu Tiger indicate that consumers are receptive to a wide range of prompts from restaurants: For starters, 70 percent of consumers say they are more likely to visit a restaurant that offers personalized promotions, 80 percent of consumer say they watch restaurant-related video content, and 80 percent of consumers expect restaurant brands to have a social media presence and to interact with them. Looking at your guest demographics and feedback, along with your data on traffic and ticket sizes, what stress points emerge? Are there particular guest segments that used to be in your sweet spot but aren’t driving the kinds of sales they once did? How can you use the tools in your toolbox — to include social media, your loyalty program, email lists, or traditional media outreach — to bring your brand front of mind for the kinds of guests you most value? At a time when it can be difficult to differentiate yourself on cost, the things you do to connect with guests in other ways can help set you apart.
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  • Home
  • Human Resources
  • Inflation
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  • Menu
  • Marketing
  • Technology
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