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A Deeper Dive: Bill Mathis, chairman of the North American Association of Subway Franchisees, joins the podcast to talk about the group’s relationship with management.

The restaurant industry is fast-paced and competitive. With customers enjoying consistency, the pressure is real. Even with new trends in technology and the lingering challenges of the pandemic, demand for new ways to access great food is at a high.

The pandemic created a lot of challenges for an industry with historically slim profit margins. But creative business owners found a way to meet customer demands while adhering to restrictions. Delivery-only restaurant models were the answer for 5% of operators since the start of the pandemic.

Still, nearly 64% of customers prefer dining in over delivery or online ordering. Restaurants that provide quality delivery service while maintaining the classic dining experience can capture the market from both sides.

No matter where your restaurant stands, the latest trends can give you valuable insight for seizing success in 2023. Continue reading to discover the latest restaurant industry trends and how restaurants are recovering from the pandemic economy.

Restaurant Industry Trends and Statistics
Sustainable Eating
Restaurant operators are cutting costs and giving consumers what they want with sustainable options for everyone. The industry is adopting a climate-conscious approach to recipe development. Sourcing local foods to welcoming vegan and vegetarian options are two ways to make your menu more sustainable.

And, consumers are taking notice. From fast food to fine dining, consumers want menu options that fit their lifestyles. Reducing meat consumption – especially red and processed meats – is healthy and sustainable. About 5% of consumers are embracing the health and environmental benefits of vegan and vegetarianism.

Delivery Only
Ghost kitchens and cloud kitchens are on the rise. These delivery-only restaurant models are innovative and flexible. The pandemic drove consumer demand for high-quality restaurant delivery and restaurant operators met this demand with creativity.

In 2022, 5% of restaurant operators reported moving into the delivery-only restaurant business. Ghost kitchens can change their menus frequently and experiment with new ingredients and flavors. They also have reduced overhead costs since they don’t have to pay for front-of-house staff labor.

QR Menus
QR menus were introduced during the pandemic to reduce the time spent cleaning physical menus during a restaurant shift. They’re convenient, eco-friendly, and can be updated regularly, avoiding the need to reprint menus with new recipes or specials.

The thing is – QR menus are here to stay. Since most people have smartphones, restaurantgoers will happily pull up the menu on their phones. This way, the menu never leaves the table, allowing guests to browse dishes and drinks throughout their experience.

Wi-Fi Everywhere
Lots of office workers are permanently remote following the pandemic. Restaurants and cafes welcome this trend by making wi-fi networks available to all guests. A Wi-Fi network also ensures that customers can easily access QR menus on their smartphones.

Some restaurants depend on table turnover to keep sales up. It might not seem like the best strategy to provide guests with free Wi-Fi. But, an internet connection is a deciding factor for many consumers’ choice of restaurant.

Hyper-local
Eating local has never been trendier. Consumers are embracing locally grown produce and flocking to restaurants boasting responsibly sourced ingredients. Local ingredients are more sustainable and often more cost-effective for restaurants.

Independent restaurants can also simplify their supply chains by emphasizing local ingredients to minimize costs. Local ingredients are available seasonally, which prompts cooks and chefs to be creative with what is available.

Cloud RMS
One of the biggest hurdles for restaurant management system (RMS) technology was the data connection and servers required to support these systems. Cloud technology and SaaS simplifies advanced RMS systems, making them more accessible for brands.

With the demand for delivery at an all-time high, cloud RMS systems are invaluable, allowing online orders to be fired directly to the kitchen. This streamlined aspect is critical because online ordering and delivery increased by 300% since 2014. Cloud RMS systems also help restaurants to stay organized, offering timesheets, digital inventory management, and detailed sales data.

Handheld POS
Along with Cloud RMS, handheld point of sale (POS) terminals let servers fire orders to the kitchen right from the table. This feature reduces mistakes, saves time, and increases overall efficiency for the entire restaurant staff.

Handheld POS terminals also allow servers to divide checks and take payments tableside. And, guests can rely on every server to be ready to fire an order. Almost every step of service is streamlined when service staff uses handheld POS.

Counter Service
Counter-service restaurants – often called fast-casual restaurants – are still a popular dine-out pick of choice. Consumers continue to demand convenience and speed. Counter-service restaurants can deliver high-quality meals quickly and consistently.

The counter-service model offers benefits to restaurant operators, too. They come with fewer overhead costs without a full FOH service staff and are equipped to fulfill delivery and online orders quickly.

The casual atmosphere of counter-service restaurants isn’t right for some operators or consumers. Yet, even chefs like Gordon Ramsay are embracing the counter-service model to bring his award-winning recipes to customers.

Staffing Challenges
While staffing for restaurants has gotten a little better since the worst days of the pandemic, restaurants continued to have staffing challenges in 2022. Restaurants historically have high turnover rates, but the pandemic exacerbated that issue. Around 75% of restaurants report high turnover rates.

Additionally, 40% of restaurant employees say there is a lack of team-building activities, and 70% want more hands-on training with managers. Restaurants can keep quality staff members by fostering a positive, compassionate workplace.

Strict Cancellation Policies
Restaurants are imposing stricter cancellation policies for reservations as another holdover from the pandemic economy. Avoiding no-show reservations is a solid tactic to keep sales steady for restaurant owners.

Some restaurants have customers place a deposit on their table so that the restaurant can pay servers even if customers don’t show up. Others are a little more lenient and will refuse to make reservations for people that consistently don’t arrive for their reservations. They also strictly enforce arrival times on reservations.

How will you act on these restaurant trends in 2023?
The restaurant industry continued facing the lingering challenges of the COVID pandemic in 2022. But, with delivery-only restaurants and updated technology, restaurant operators are finding ways to keep their sales up. With these trends, restaurants can continue to bring the highest quality meals to their loyal guests through 2023.

Source toasttab.com

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