Restaurant Resolutions: 5 Ways Restaurant Operators Can Make 2020 Their Best Year Yet

As 2019 comes to a close, many people are beginning to create and work on their new year’s resolutions. So why shouldn’t we do the same with our restaurants? In this blog post we look at five ways restaurant operators can improve their business in 2020 and make it the best year for business yet. Give it a read and let us know in the comments what your business resolutions are for 2020.

Operations – The Future for the Win

We don’t devote much time to food here at The Daily Rail. Sure, we talk about chicken wings, but that’s the only item we know you all actually serve in common ;-)

However, there is one observation we want to make and it’s about climate change. Over the past year, we have seen a major shift in the conversation about combatting climate change. With the release of the Green New Deal initiative, our industry has been front and center. Whether it was a prohibition on hamburgers or the elimination of natural gas as a cooking source, restaurant operators have been – and will continue -- feeling the heat.

You will see more and more in the upcoming year about operators embracing sustainability and climate conscious operations. Frankly, it’s a great strategy. Instead of waiting for some statutory responsibility, we predict more operators will get ahead and market their behavior as a differentiator. Don’t think for a second that your guests won’t appreciate any effort you make to be a clean-operating corporate citizen.

It’s not only good for the environment, it’s also good for business.

Technology – Internet of What?

If you know what IoT stands for then you are already ahead of this trend. For those of you that don’t, it means Internet of Things. In application it means having your equipment, music, HVAC or other systems internet enabled.

Imagine getting a message alerting you to a compressor that is failing before it actually conks out. By connecting functions like refrigeration and climate to the internet, you can use the data more effectively to both monitor and get the best value from their operation.

But IoT isn’t limited to your physical plant. Today’s new POS that relies on cloud-based systems to run their processes are equally a part of the new digital ecosystem. You can gain data on the performance of your staff, manage their deployment, and build efficiencies into your management that local processing only could never provide. Look to see more integrated applications for your restaurant to come into fashion in the upcoming year.

Human Resources – Give Staff What They Want

It’s high time we start really investing in people in our industry. With turnover at record highs for restaurants, there can be no question we are doing something wrong. We have seen the trend asserting itself as big players like Walmart and McDonald’s dramatically increase their spending on staff needs. From expanded benefits to extraordinary training opportunities, these national brands are seeing a dramatic return in their investment.

Sure, as a smaller player, you can’t afford to match those operators, but that doesn’t mean you can’t compete in other ways. For example, if you are implementing a new software, allow a line manager to take charge of the project. By including them from start to finish, you provide them with valuable experience and that will satisfy the need of young managers to feel they are being trained and developed.

Also, you can rotate the responsibilities so your team gets a more well-rounded exposure to the tasks in your operation. You improve your bench strength while simultaneously enriching your team’s experience. These are not costly suggestions, but by simply identifying ways to improve their training you are providing them with an important component of job satisfaction. This will become increasingly valuable and this year will prove that quite clearly.

Marketing – Know Your Audience by Generation

This is a topic on which we have devoted much time and consternation. The various generations continue to age and if we told you that by next year 80% of Millennials will be parents, would you be shocked? It has become even more important than ever to understand the expectations of your guests by generation. Of course, no one size fits all solution will attract a specific generation, but knowing who you are serving is the first step in serving them.

For Millennials, it continues to be experiences that dominate their consumer needs. But they aren’t to be undone by the younger cohort of Generation Zers. Both expect you to behave sustainably, but they really aren’t as loyal as the slacker Gen Xers. This section is chock full of links to various insights we have provided so you can be better prepare for the new generational wars that appear to be breaking out all over. Ok, Boomer?

Marketing – Scarcity is the New Black

The last couple of years have proven the limited time offers (LTO) are a powerful methodology for driving new or more frequent traffic. You need look no further than the incredible success of the Popeye’s chicken sandwich promotion. They did what we have long supported, started with the scarcity approach and then turned it into a menu item people now love. It’s manufactured loyalty and frankly it has proven brilliant for them based on the results.

Bu they aren’t the only fast and quick service food operators that rely heavily on the tactic. Starbuck’s and their silly holiday cup promotion and McDonald’s McRib are both other successful uses. But full service restaurants are now seeing their way to it with Applebee’s running LTO drink offers and seen their same store sales climb steadily. And as previously alluded to, it’s a fantastic way to test out new items for durability on your menu.

Or if you are even more courageous, why not engage in a pop-up experiment? You can run it in your own restaurant or capture a temporary space and do it there. Either way, you are feeding into the guests’ desire to be in on the secret and to access the scarce. If for no other reason, it appeals to Millennials and Gen Zers in a big way, but ultimately we will see more of this tactic in the coming year.

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