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The restaurant experience was once solely comprised of human-to-human, in-person experiences. In 2022, with the introduction of ChatGPT, we saw restaurants – and just about everyother industry – look for ways to incorporate artificial intelligence within their customer operations.
A recent eBook by Softarex Technologies highlights all the main aspects of AI usage in restaurant operations, from customer service to back-of-house management. This transformation is not just about automation; it's about creating smarter, more efficient, and more personalized dining experiences.
Faced with rising labor costs and increasingly price-sensitive customers, restaurant brands are exploring new ways to balance profitability with consumer expectations. One of the most debated strategies is dynamic pricing, which adjusts based on demand and other variables. Here are three key strategies: 1.
Omnichannel communications and value-oriented customer expectations are two elements challenging restaurant owners and operators, according to a survey from Klaviyo. ” Multiple elements impact whether a potential customer actually follows through with a visit and if satisfied guests will return.
How do you stay on top of what your customers are expecting when they step through your doors? As we head into 2024, price-related issues are still top-of-mind for restaurant customers after the inflation boom earlier this year. Do you know what’s on their mind?
Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Too high, and youll drive customers away.
In 2024, restaurant traffic slowed while price sensitivity grew. Moreover, three out of four respondents believe restaurant prices are higher and high prices are the primary reason for cutting back on restaurant spending. Recurring customers. Promotions and discounts attract customers, but they’re often short-lived.
“This enduring customer loyalty drives the restaurant industry forward, creating clear opportunities for restaurants to enhance the dining experience through strategic limited time offers, efficient delivery and exceptional in-person service," said Samir Zabaneh, CEO of TouchBistro.
Rising restaurant prices and increased cost-of-living expenses are significantly altering dining out habits in both the US and UK, according to a new survey from Attest. Among the key findings affecting restaurants: Price Sensitivity : 86 percent of consumers in both the US and UK feel restaurant prices are higher than last year.
Great restaurants provide great experiences, and great restauranteurs unfortunately spend many of the hours in each week doing activities that could (and should) be automated, rather than being able to use those hours focusing on what makes their concept or business exceptional. Smarter data use. But what’s next?
Dynamic pricing would add friction to the guest experience, according to Capterra’s 2023 Dynamic Pricing in Restaurants. Sixty-five percent of consumers say dynamic pricing would make the decision of where and when to eat more difficult; 63 percent say it would make it harder to budget their restaurant spending.
How rising import taxes may reshape menus, pricing, and sourcing in the restaurant industry. The restaurant experience isnt just about great service and ambianceits deeply tied to ingredient sourcing and food costs. Cocktail menus, wine lists, and even upscale coffee shops could all see price jumps or feature a tighter selection.
Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.
"Restaurants thinking about implementing surge pricing need to balance the revenue upside with the potential brand backlash," says Savneet Singh, CEO of PAR Technology. "While ’" Is it possible for restaurants to have the best of both worlds and maximize revenue and still capture customer loyalty? Yes, and yes!
At the same time, a rise in fast-food prices driven by inflation is reshaping consumer behavior, with many customers now treating fast food as a splurge rather than a convenience. The future of dining will center on creating smarter, simpler, and more personal experiences for customers.
Just like a well-crafted mission statement will help guide your business decisions, identifying and understanding your target customers and competitors through restaurant market research will give your business a competitive edge. Do you want to find out which food items your customers love the most? With the 4.5%
With so many people leaving the industry, restaurants stepped up—raising wages, creating new opportunities, and doubling down on the employee experience. Similarly, AI-driven thermostats will optimize indoor climates, enhancing the comfort of both staff and customers while balancing energy usage.
As the restaurant industry moves into 2025, design is taking center stage as a key driver of guest experience, operational efficiency and brand storytelling. Design is more than aesthetics, it’s a strategic tool for enhancing guest experience, driving operational success and telling your brand’s story in an ever-competitive space.
Customers spend a remarkable 21 minutes on average in its stores, according to The Hustle, indicating that Buc-ee's offers an experience, not just a super-sized drink for the road. This suggests that while traffic may not have entirely dropped off, customers are reevaluating the value equation. Data from the U.S.
-based diners who recently ordered from a QSR, fast-food or fast-casual chai also found that value is about more than just price. Diners are looking for a better overall experience, from streamlined ordering to more inviting restaurant environments. What should operators take away from the results?
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
Running a restaurant isn’t just about crafting the perfect plate or creating an unforgettable experience for your guests, it’s about making money. Many distributors will adjust their margins when they see a customer who understands their value. Here’s an example from my own experience. Don’t fall for it.
Many restaurant operators have misconceptions about average order volume (AOV) and how it works, making statements like: I need more customers to make more money. In fact, boosting AOV is one of the easiest and most effective ways to increase revenue while improving the customerexperience for your guests.
A Dilemma of “Super Size” Proportions Amid rising food prices and shifting consumer preferences, the restaurant industry is facing a dilemma of “super size” proportions. percent menu-price inflation rate. Customers can become more critical of the quality of products and services when prices increase.
Restaurant owners looking to purchase an existing license can face prices up to $1 million depending on demand. In California, annual fees for a liquor license can also reach up to $1M, depending on factors like operating hours, customer policies, and whether the establishment offers on-site brewing.
In the modern dining landscape, where convenience and customerexperience are paramount, restaurants increasingly rely on electronic payment systems to facilitate transactions. For restaurants, especially those operating on thin margins, these fees can influence pricing strategies, profitability, and even operational decisions.
Coffee roasters around the world are struggling to navigate the rising tide of costs without losing loyal customers. Prices for green coffee have surged, operational expenses continue to climb, and economic pressures show no sign of easing. At the same time, coffee consumers are growing more price-sensitive.
From my experience, it is difficult to experience a dinner for two in a moderate full-service, independent restaurant for less than $120 without gratuity. Look at the cost of raw materials required to produce those items and ask a simple question: “Can we afford to sell these items and will people pay the price we need to charge?”
. "Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss," Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. "We
It is atop the list for restaurants looking to modernize, differentiate, and elevate experiences. The question now becomes – how to make sense of that data and use it to elevate the dining experience. consumers now use digital wallets as they seek a convenient, contactless payment experience. Data, Data, Data.
With social media shaping trends, culture and commerce around the clock, younger generations are increasingly using these platforms to discover new dining experiences. Now is the time for restaurant brands to ask: Are we merging human insight with technology to craft meaningful customer journeys? Benihana exemplifies this approach.
However, 30 percent of high-income consumers are dining at TSRs more frequently than before, signaling room for premium offerings at the right price. Value Isn’t Just About Price—It’s About ExperiencePrice sensitivity may be at an all-time high, but focusing solely on discounts risks missing the bigger picture.
With nearly every organization today adopting digital transformation strategies, many companies are focusing on providing more digital solutions to customers. Why Is Humanization So Important to a User’s Experience? The primary focus of the websites is having what you need, at a good price. Take Amazon, for example.
At the same time, economic uncertainty, consumer price sensitivity, and limited resources remain pressing concerns. For restaurant operators, these challenges underscore the importance of thoughtful decisions that boost efficiency and drive customer retention. Start small by choosing technology that connects easily.
With digital and frictionless experiences at the forefront, diners are seeking their favorite restaurants in new, more affordable ways. Some brands’ apps even track mobile-order customers’ location to help ensure their food is fresh, whether it’s a burger or a salad. The top reasons?
“Through expansive experiences that inspire our guests paired with the ambiance of the space and the food on the plate, we’re setting new standards for the industry and creating truly spectacular moments for all who enter our restaurants and bars.”
Wine lists that resemble an encyclopedia of the wine making craft are just the price of admission. The price they pay is a lack of balance in their lives, relentless stress, and always concerns about when their star will lose its shine. Make the tomato an experience. Make the sandwich your lifes work. Choose your oven wisely.
Beata Zawrzel/NurPhoto via Getty Images New CEO Brian Niccol is hoping customers will fall back in love with the coffee chain. Starbucks had its moment in the sun, but at some point along the way, it lost touch with what its customers were actually looking for. Here’s why they fell out of love in the first place.
More than eight in ten restaurant operators expect 2025 sales to meet or exceed 2024 levels, but rising competition will require differentiation through experience, service, and innovation, according to The National Restaurant Association’s 2025 State of the Restaurant Industry report.
They have to balance keeping customers happy while making sure their staff gets paid fairly. Restaurants must rethink their approach to tipping to retain staff and keep customers happy. This takes the pressure off customers and ensures that everyone gets their fair share. Simplifies the tipping process for customers.
This shift is fueled by more adventurous young palates and a desire for children's dining experiences to reflect the culinary sophistication enjoyed by adults. MK : Value is a significant consideration — parents are looking for quality options that are appropriately priced for smaller portions.
Revenue growth in 2024 was largely driven by menu price adjustments. Although concerns about customer sensitivity influenced pricing decisions, only 9 percent of restaurants did not change prices in 2024, down 19 percent from 2023, indicating a stronger shift towards strategic price increases.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Key customer factors that influence dining preferences, from demographics to behavior. A restaurant target market is the specific group of customers your restaurant is designed to attract.
In show of changing customer preferences, over half of the brands on this year’s list are new (27) compared to last year. Many of the restaurant brands on the list, like Dave’s Hot Chicken and Cava, are thriving by offering high-quality, and on-trend food at accessible prices.
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