NJ Hospitality Industry Joins Forces
In opposition to the Governor’s call for unlimited liquor licenses. Just three years after Governor Phil Murphy’s pandemic shutdown caused widespread to New Jersey’s family-owned restaurants, bars and taverns, the Governor has brought forth a plan to further financially devastate thousands of small, family-owned businesses, eliminate local jobs, and endanger the public by flooding the State with an unlimited number of cheap liquor licenses. As a result of his irresponsible plan, the Coalition for Responsible Alcohol Licensing has been established to educate the Legislature about the significant issues facing the industry and to provide workable solutions based upon decades of experience and industry data. In addition to the New Jersey Licensed Beverage Association and the New Jersey Restaurant and Hospitality Association, coalition members include the New Jersey Wine and Spirits Wholesalers Association and the Beer Wholesalers Association of New Jersey, with additional members expected to join. “We cannot sit idly by while the Governor attempts to reduce our sweat equity and financial investments to nothing more than a scrap of paper to be picked up at town hall,” said Diane Weiss, Executive Director of the New Jersey Licensed Beverage Association (NJLBA). “We are committed to protecting the value and integrity of New Jersey liquor license holders”. Dana Lancellotti, President and CEO of the New Jersey Restaurant and Hospitality Association noted the industry continues to struggle in the wake of the Governor’s pandemic restrictions that shuttered numerous businesses that faced customer capacity restrictions for more than one year. The Administration’s plan, she said, would hurt the hardworking business owners who followed the rules while investing in a liquor license.
Independent Restaurants Struggle With April Rent
Though remain optimistic. Following a relatively optimistic March in which independent restaurants’ rent delinquencies improved materially, things seemed to have slowed down again. According to new data from Alignable, 49% of small restaurant businesses couldn’t pay the rent in April. April’s delinquencies were at the highest level thus far in 2023. In March, rent delinquencies fell to 34% versus 40% in February, 38% in January and 52% in December. Restaurant rent delinquencies trailed only transportation across all segments in April. Overall, 39% of small business owners fell behind on rent this month, compared to just 30% in January, pointing to a steep downward trend within the past four months. According to Alignable’s survey of over 4,200 respondents, independent operators cited rent increases, continued inflation/supply costs, reduced revenue and less access to funding as their biggest roadblocks. Fifty-three percent said their rent is now higher than it was six months ago, while 75% of small business owners say they haven’t experienced any relief yet on cooling inflation.
8 Ways to Increase Restaurant Revenue
With outdoor dining. Patios and creative outdoor dining spaces became a necessity to keep restaurants afloat during the pandemic; now, they’re being leveraged as additional revenue streams. Attracting and retaining patio guests could provide the additional boost in sales restaurant operators have been looking for to battle increased operating costs. Whether a local café, fast-casual spot, or fine-dining restaurant, maintaining an inviting and well-serviced patio can be key to bringing in additional revenue in the warmer months. Here are eight low-cost strategies to get patrons to the patio this summer and beyond. During busier dining times, additional patio seating can accommodate more customers, reduce wait times and boost sales through higher table turns. When arranging your outdoor space, pay extra attention to the seating design to make outdoor dining an attractive option for customers. Ensure the seats are comfortable and the tables are well-spaced to maintain the airy appeal customers crave when opting to dine outdoors. Seasonal ingredients taste fresher and cost less, which is the ideal base for a profitable menu. Consider separate menus, chalkboards, or table tents to promote these temporary specials. These elements are less expensive to create than a regular menu and can be quickly changed out to promote specials or removed should the kitchen run out of a seasonal product.
The Brunch Boom is Alive and Well for Restaurants
Non-breakfast brands are embracing the revenue-generating daypart. Not quite breakfast. Not quite lunch. The late-morning and mid-afternoon brunch daypart is more than a meal. It’s a social experience, and one that consumers are hungry for coming out of the pandemic. Opportunities exist for non-breakfast brands to carve out their share of the brunch segment. When executed correctly, the daypart can be a solid revenue generator for restaurants that have traditionally focused on dinner service. That’s been the case for The ONE Group, parent company of Kona Grill and STK, where brunch has become a core business for both concepts. Emanuel “Manny” Hilario, president and CEO of The ONE Group, says the idea came from the hotels where the company provides food and beverage services. “We saw the strong demand and success of the brunch daypart at the hotel properties in which we operate, and we identified that there was a customer need and a supply shortfall that we could fill nationally with the addition of a quality brunch offering with a highly differentiated vibe,” he says. The ONE Group started testing brunch at both restaurants in 2020, developing programs that fit within each brand’s identity. Kona Grill is known for its sushi and seafood, while STK’s approach to fine dining blends a chic lounge atmosphere with a modern steakhouse experience. The key to winning at brunch for both brands involved crafting a menu that’s fun for guests to interact with, featuring items that Hilario says are both “craveable and Instagrammable.” “The customer wants their friends to know they are out at brunch,” he says. “The greatest metric we have to illustrate our success would be how viral brunch has become, and how guests interact with the brands on digital during this daypart. The camera eats first, and it most certainly does at brunch.”.
How to Use Your Network to Understand Your Restaurant Better
Location-based services can offer a wealth of information. In today’s highly competitive restaurant industry, every decision counts when it comes to optimizing the business. The use of technology within a restaurant is often focused around providing solid WiFi and ensuring that point-of-sale (POS) technologies are efficient, with more advanced restaurants incorporating mobile applications, digital signage and even interactive kiosks into their operations. Location-based services, however, can offer a wealth of information to help restaurant owners better understand their business. By tapping into the network, owners can learn more about the restaurant and use this information to make better decisions, drive more foot traffic to stores, and improve operational efficiency, customer engagement and ultimately the top and bottom lines. Location-based services (LBS) have been around for some time, but current advances in technology and ease-of-use have made them more attractive to the restaurant industry. With LBS technologies, restaurant owners can track foot traffic, monitor congestion levels and even predict which days and times will be busiest. Armed with this information, owners can make more informed decisions about staffing, menu items, promotions, and more, giving them better insights on customer share-of-wallet and the ability to enhance brand intimacy.
Supply Chain Transparency Can Make Your Restaurant Safer
Boost key metrics. What if I told you that you could solve a variety of your problems by improving your supply chain transparency? This one effort can help your restaurant ensure you’re aligned with suppliers that prioritize safety and quality efforts. It can also help you identify – and mitigate – a variety of risks. Supply chain transparency can provide vital information about suppliers’ environmental, social, and governance (ESG) initiatives. And it can help protect your guests, reputation, and bottom line. While it’s important for restaurants to serve delicious meals, that alone is not enough anymore. Customers want to know where their food is coming from. They want to know what safety and quality protocols your suppliers practice to ensure that food is safe from point of origin to point of consumption. And they care about social and environmental impact: ethically treated animals, sustainability, fair labor practices, DEI, and more. Restaurants and other food businesses have, as a result, put more focus on increasing supply chain transparency. Doing so helps these brands:
Restaurants Under Attack from Cybercriminals
How to protect your business. As the restaurant industry becomes more reliant on technology, the risk of cyber-attacks is rising. Cybercriminals are increasingly targeting restaurants, seeking to steal sensitive customer data and disrupt business operations. One study found that in 2016, the food and beverage industry accounted for ten percent of all data breaches. While many restaurant owners may not think they need to worry about cyber-attacks, the reality is that no business is immune. That’s why it’s essential for restaurants to consider cyber liability insurance. Restaurants are attractive targets for cybercriminals for several reasons. First, they typically store significant customer and employee data, including names, addresses, and credit card information. This data is highly valuable on the black market and can be used for identity theft, fraud, and other criminal activities. For example, POS systems have proven to be particularly vulnerable. 75 percent of all data breaches that impacted restaurants originated from a compromised POS system. Second, many restaurants rely on outdated or unsecured technology, making them easy targets for cyber-attacks. Finally, restaurants are often understaffed and may need more resources to invest in robust cybersecurity measures.
Do We Have to Subscribe to Restaurants, Too?
Why restaurants and customers are signing on for memberships and subscriptions. I have too many subscriptions. There are the streaming services — Netflix, Hulu, Disney+; there’s Amazon Prime, which allows me to “subscribe and save” yet again, creating several micro-subscriptions within the bigger one; and then there are the little indulgent services I’ve come to rely on — Stitch Fix, Chewy, Instacart+. I subscribe to the Substacks of my colleagues, plus print and digital media of all kinds. I still subscribe to Pandora, even though I know Spotify has more cachet. By my rough count, and I’m sure I’m forgetting some, I have around a dozen active subscriptions. And now, restaurants near and far are practically begging me to sign up for even more memberships. Some are essentially beefed-up loyalty programs promising perks like free delivery and points that can be used toward future purchases; others are monthly meal deliveries that drop chef-prepared dinners right on your doorstep; and others are wine clubs that bundle bottles with tasting notes to turn subscribers into instant connoisseurs. It all has me wondering, who are these subscriptions for? At this point, I’m extremely hesitant to sign up for any new subscriptions, even from the restaurants I love. And I’m not alone: According to the personal finance app Rocket Money, in 2022 the average US consumer was juggling around 6.7 subscriptions (up from 4.2 in 2019), including streaming and retail, amounting to over $200/month. A study by C+R Research finds that 42 percent of people continue to pay for subscriptions after they stop using them. (Personally, I’m still trying to figure out how to pare down my existing streaming services and get out of the at-home gym subscription I signed up for.)
Did You Know?
How to conduct a successful restaurant audit. An audit can also be a powerful tool that can help you improve the financial health and profitability of your restaurant. Conducting a successful one can help you figure out where your business could use a little improvement. By identifying any weak spots, you can make necessary adjustments that can set you up for long-term success. First, take stock of the following areas of your restaurant business:
Employee Tip
Tips for hiring help in seasonal restaurants. As of early April, the U.S. Department of Labor’s (DOL) Bureau of Labor Statistics (BLS) reported February job numbers that showed the accommodation and foodservice sectors still had about 1.2 million job openings. Summertime and holidays create even more demand for labor as people tend to eat out more often. Seasonal employees can help you staff up for this increased business. Here are some hiring tips.
Bielat Santore & Company – Restaurant Industry Alert
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