Increased cleanliness measures, innovative marketing strategies and suggestive selling techniques are just a few elements that food brands will need to implement, explains Fransmart’s Dan Rowe.
COVID-19 is only part of this perfect storm we are in. The mandatory lockdowns put a bookend on the longest bull market run ever. We were due for a correction, but these factors have had devastating consequences for most of the restaurant industry.
I’ve been through a few terrible economic cycles, but I always try to recognize that the world’s eight billion people are waking up hungry every day — and no amount of bad news is going to change that. People are going to eat… somewhere. Estimates show 20-40 per cent of the restaurants will never be able to reopen, and even those that reopen will slowly make their way back to normalcy. However, the future is bright for those that can last through this crisis, because there will be the same number of hungry mouths, but 20-40 per cent fewer options of places to eat. The restaurants that develop trust and communicate with their customers are the ones that are going to succeed.
The change will be about safety, trust and convenience
There has never been a more heightened sense of the need for sanitation, cleanliness, safety and trust. Restaurant food safety practices are rapidly evolving, and it will be years before customers are fully comfortable eating out. Celebrity entrepreneur and business consultant Jon Taffer is leading the narrative about how the dining landscape is going to change, and I agree with him.
Ahead of the coronavirus, Taffer, who already has a reputation for cleanliness, created his own Taffer’s Safe Dining System™ for his new tavern concept, Taffer’s Tavern. Taffer has taken this time to figure out how to adapt his restaurant to what will become the new normal in restaurant dining. The top changes in restaurant safety will include employees wearing gloves and face masks, employee temperature logs, sufficient spacing between tables to ensure a six-foot distance, and additional sanitation stations.
Off-premise dining will be pervasive
Consumer demand for digital ordering and delivery options was slowly increasing, but it is now at an all-time high. Pre-coronavirus, Statista pegged revenue in the online food delivery segment to just under $95bn in 2019. It estimated revenue to show an annual growth rate of 9.3 per cent, resulting in a market volume of more than $134bn by 2023. Off-premise dining is the way of the future, and now it has become the new normal.
Fast-casual pioneers of American Halal food, The Halal Guys, hopped on this trend ahead of the curve, as they have been experimenting with delivery-only cloud kitchens over the past year. Now there is a new and much larger percentage of businesses using third-party delivery apps that would have never thought to use them before. Many of our brands have reported record off-premise sales with fewer employees. Right now, you can easily connect the dots between the restaurants that are able to remain open and weather this storm to those that have been embracing off-premise, delivery and app-driven carry out. The chains that are closing down are those who have done little or no off-premise dining.
Innovative marketing is the name of the game in keeping customers engaged
Being socially savvy during this time and connecting with your customers and the community is of utmost importance, as people will remember how you marketed during this crisis. A few ways U.S. brands have gotten creative amidst the coronavirus include giving away essentials like toilet paper, hand sanitizer, and bulk grocery items with meals purchased. Two of Fransmart’s New York City-based brands, The Halal Guys and Mamoun’s Falafel, have been keeping their employees working by donating meals to the local food banks and hospitals. Through doing good and supporting the community, these brands secured an even more loyal customer base.
Even more importantly, brands must communicate and remain transparent with the world on what they are doing and how they are handling evolving situations. Brands without a social media presence have very little means of real-time communication with their customers about promotions or delivery options, among other things.
Turn negatives into positives
When faced with an issue, those who panic simply won’t succeed. Brands that have taken the time to be proactive and pivoted as quickly as possible are the ones who are thriving right now. For example, immediately after being hit with the new CDC guidelines and having to close down the interior of stores to their customers, The Halal Guys got creative and adopted the drive-thru methodology in their very own parking lot.
Other brands found creative ways to give back during the crisis and created avenues for their communities to take part in something bigger. Indian street food restaurant brand Curry Up Now implemented a “Roll It Forward” program that allowed customers to donate meals to help feed local healthcare workers. For every donation meal purchased when ordering via the Curry Up Now app or website, the restaurant matched the meal donation and delivered them to local hospitals.
Another example of connecting with communities in a positive way, modern seafood shack Slapfish implemented a kids eat free program to help families struggling with school closures.
Sell food, don’t just take orders
Restaurants have to change their mentality when it comes to selling. Don’t just take orders – sell food. This way you can drive 10 per cent more sales, just by asking a customer if they want a side of bread or dessert. Suggestive selling is the easiest way to drive more revenue without any additional marketing, labor or other costs. Chains like McDonald’s have conditioned people for years to order numbered meals. Brands should learn from the big chains to create bundled meal experiences. Now more than ever, Americans want bundled “grab and go” options like lunch boxes and family-style meals for dining at home.
Fransmart’s diner concept located in the D.C. metro area, Bob & Edith’s Diner, took the time to re-strategize its operations so it will run more smoothly once restaurants begin to open again.
They’ve used this time productively to reflect and rethink how they can do even more volume in even smaller footprints by implementing a server-friendly business model that has the servers focused on selling food and thus making more money per shift while driving sales by another 15 per cent.
ABOUT THE AUTHOR
Dan Rowe is the CEO and founder of Fransmart, the franchise development company responsible for the international growth of brands like Five Guys, Qdoba Mexican Grill and The Halal Guys.
IMAGE: Bignai / Shutterstock.com
