October 12, 2016
Staff turnover isn't just costing you top talent; it's also bleeding your bar or restaurant dry of major profits. Discover just where all that money goes and don’t forget to sign up for our upcoming webinar on how to win the war for talent.
GIVEAWAY: Last Chance to Win!
We’re giving away a free custom Bumdrum burn barrel. All you need to do to enter is invite your restaurant peers to receive The Daily Rail. The more addresses, the better your chances of winning!
Everyone loves chicken wings, right? Well, our Citizens of the Rail have been killing it with their social media posts on wings. Here are some highlights from their social feeds about #WingWednesday.
DID YOU KNOWS…
A Happy Chipotle Story
An Orlando couple like Chipotle. Like a lot. So much so that they took their engagement photos there. Manuel Rosario and Angela Gallo initially met on Facebook and had their first date at Chipotle (yea, we know what you’re thinking, but Gallo says she was so busy she had just one hour for a date). The couple has been going to the fast casual twice a week ever since. Chipotle is even catering their wedding for free! Has anyone ever taken engagement photos at your restaurant?
How High Can You Go?
You’ve heard of bull riding and bullfighting but what about bull-leaping? It’s a new sport in Spain that has people (literally) flipping head over heels. Check out the vid!
This Costume Is All The Rage
Costumeish decided to stir the pot with their “Parisian Heist Robbery Victim” costume, a reference to Kim Kardashian’s theft while in Paris recently. The costume includes a short white robe, a long black wig, sunglasses, a fake gag, some rope, and a “$4 million dollar” ring. The costume has received serious backlash on social media but has no plans on dropping the item.
WHO WILL THE NEXT FOOL BE [Song]
Why it matters to you: The sooner this election is over the better.
There seems to be many opinions on the root cause of the malaise hovering over our industry as a whole. We have observed multiple time that uncertainty due to the Presidential Election has created a stay-home approach on the part of many consumers. Looking at the rise in grocery bought foods it certainly lends some credibility to that conclusion. However, there may be other factors at work. Yum Brands CEO Greg Creed pointed directly at the election climate as a major factor in his most recent earnings call, but others believe over development and the alternative of grocery store food is taking its toll.
According to the National Restaurant Association, some 70% of restaurants are experiencing same-store sales declines this year. This is the worst performance since 2013 and tracks inconsistently with the overall economic conditions. While dropping commodities prices and high employment should mean more income spent on lower cost food products. With only 27 days until the election, we will be able to eliminate the political uncertainty, but will that fix the other issues? Only time will tell. Until then, Jonathan Maze, senior financial editor at Nation’s Restaurant News counsels you should focus on driving delivery and offer plenty of comfort foods.
DOING MORE WITH LESS
Why it matters to you: Offering an enhanced experience based on participating in a fund-raiser is a creative way to contribute to your community and grow your business.
We have spoken often of the Purpose Approach to running your business. The concept is to couple your business goals with a raison d’tere like fundraising or training young people in a skill positions your business as a leader in your community and inspires your guests to feel a part of something that you offer. In totally unrelated efforts we see two different examples of this purpose-based activity and we can all learn from their efforts.
In Ireland, 200 restaurants are participating in the ‘Dine in the Dark’ event to benefit the (you guessed it) National Council for the Blind. Guests will dine while blind-folded and experience a meal in a new an interesting way while raising money to support the council. The program runs from Nov 6 -13 and 8,000 people are expected to #godark. Back in the USA, a Duluth, Minnesota developer, Imran Khan started a crowd-funded campaign to raise money for a co-op style restaurant. For an initial investment of $250, any burger basket you buy comes with a pitcher of beer included. This initiative promises to simultaneously deliver a revitalized space to an up and coming neighborhood and provide a place where the community has a stake in the restaurant’s overall success. We are all judged by how we go through the world and operators that engage in efforts like this will certainly be judged warmly for their investment.
Why it matters to you: Whether we like it or not, our habits around meat-eating need to change.
Tyson, a brand associated exclusively with meat is hedging their bets and invested in Beyond Meat, a vegan startup that makes faux chicken. Tyson now owns a 5% stake of the company that has their products in stores nationwide already. This move should serve as a warning of the tide turning away from animal protein. It’s pretty much a fact that the rate of consumption of meat in this country is unsustainable and consumers in general need to and are consuming more vegetables.
A TALE OF TWO PROMOS
Why it matters to you: When it comes to marketing and promotions, there is a right and a wrong way to do it.
The GM of the Ann Arbor Ruth’s Chris bit off more than he could chew with a promo that promised the win-margin of Michigan football team versus Rutgers as a percentage of a meal off for patrons. Michigan won 78-0 and forced the restaurant to cap the promo at 50% retroactively. This resulted in a number of one-star reviews.
On the other hand, we have ‘Merica restaurant opening later this week, capitalizing on all things funny in American politics. A burger named the T-rump, features American cheese and Mexican pepper jack separated by a wall of onions. The restaurant itself is an equal opportunity offender and we’re certain their theme will attract plenty of guests.