Toast Tipping Suggestions are One Thing but Charging Customers to Use Their Service is a Tipping Point

 

The original thesis of technology use in restaurants was to save restaurant employees time thus saving the restaurant money. When Toast came along with it, was a ‘automatic’ tipping charge added to the bill in most cases it started 18 percent.  For those of us in the industry we thought nothing of it as most of us tip well above that as a professional courtesy.

The team at Foodservice Solutions® consists like most companies of workers in their 20’s, 30’s, 40’s, and some as old as our Grocerant Guru® who has worked in the industry as long as the other have been on earth. All however thought the minimum was a bit high for beginning workers buying a fast-food meal.

Steven Johnson Foodservice Solutions® senior expert contends that Toast is near a tipping point where the cost of the service becomes a greater annoyance than benefit for the retail outlet or the consumer.

In case you did not know, Toast is adding a new consumer-facing $0.99-cent surcharge to all online orders, without giving restaurants the option to opt out of the new fee, in an unpopular move that has caused restaurant operators to post letters and tweets of protest on social media. The Boston Globe, reported that the fee will be added to all online orders over $10 and will be beta-tested with a small group of restaurants before being rolled out nationwide on July 10.

Now according to a mockup of Toast’s interface, the .99-cent fee will not show up separately and will be instead part of a combined line called “taxes & fees” that already regularly shows up when customers place online orders. Unless consumers expand the “taxes and fees” subsection, they won’t see the new “order processing fee,” which, according to Toast, is intended to “help fund product investments” like SEO menus, customization, and chargeback coverage.

However, if President Biden passes what has become known as the Junk Fee Protection Act, hidden fees like this one from Toast or others from ticket-selling websites could be under fire. NOTE: The team at Foodservice Solutions® that includes all workers of all ages support the JUNK FEE PROTECTION ACT.

Talk about double talk, here is want they are quoted as saying about the new fee; “As we innovate, we remain committed to keeping restaurant digital ordering costs low and protecting restaurant bottom lines from third-party commission fees,”]. “We also take any changes to our pricing model at Toast very seriously. That is why to help fund ongoing innovation in restaurant technology, we are updating our pricing model to add a nominal $0.99 fee paid by guests on orders $10 and over on Toast online ordering channels. This change helps fund product investments and continued innovation in support of helping restaurants maintain the direct relationship with their guests.”

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Payment Technology Drives Customer Adoption for Restaurants Big and Small

 

It is at the intersection of hand held marketing, mobile devise ordering, and payments that time starved consumers of all ages have become familiar with, accepting, and adopting digital restaurant and foodservice payments. If you are not looking a customer ahead, you are losing ground.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®’ retail foodservice operations including Chain Restaurants, Independent Restaurants, Convenience stores and Bodegas all if they are not offering digital payments today, start doing so.  

Here is the case for adding one more level of technology to you operation. According to a study carried out by the Bureau of Labor Statistics in January this year, the restaurant labor force is still over 450,000 jobs below pre-pandemic levels — marking the largest employment deficit among all U.S. industries. 

In November 2022, the National Restaurant Association found that 63% of full-service restaurants and 61% of limited-service places are operating with fewer employees than needed to accommodate guests. 

At the beginning of February this year (2023), The Washington Post reported that although many industries have recovered since the start of the pandemic, 2 million hospitality and leisure jobs still remain open. 

“Hospitality is still stuck in the dark ages. High-friction ordering, slow and clunky payments, and labor challenges lead to low profitability and a poor customer experience,” notes Brian Duncan, President of me&u USA, a global leader in at-table ordering specializing in restaurants and bars. 

The labor shortage has led chefs and restaurateurs to reduce their workweeks, while some restaurant owners have had to increase the wages of their staff by as much as 20% in addition to closing earlier on weeknights. Others have even had to change their business practices to attract new employees.  

So, our Grocerant Guru® had the opportunity to ask Brian Duncan a couple questions about just who is using digital payments today. What percentage of current customers are independent Restaurants? 

Duncan continued, “For me&u this percentage is above 80%. This is primarily because independent restaurants have less red tape to make a decision and therefore can adopt new technology faster. However, quite a few corporate chains have signed on and we see this shifting to around 65% in the next 12 months.

Regular readers of this blog know that chain restaurants experiment early and often and generally get a little better deal. So, the team at Foodservice Solutions® asked can chain restaurants leverage their size for a better price? 

Duncan, “100% they can; but it is always based on volume. Price breaks usually come with chains that are ordering large volumes of a specific item. This is why restaurants are always looking to add menu items but no SKUs in order to keep their prices low while adding variety. Think of having a blue cheese burger, blue cheese on a salad, and blue cheese on a steak.”

Foodservice Solutions®, What type of training is required at the store level? 

Duncan, “The primary training required is a mental shift in the staff believing that the tool is there to help them do their jobs and not to take their jobs. Front-of-house staff can be weary of new solutions because their compensation is closely tied to the relationship with the customer. The primary goal of our staff is to gain the trust of the restaurant team showing them that the software will enhance their relationship and also put more money in their pockets.”

Foodservice Solutions®, What factors are impacting the restaurant and hospitality industries in the U.S.?  

Duncan, “Similar to all industries, there have been issues with labor shortages. Combined with the pressure to increase compensation for employees, inflation at all-time highs, and the pressure from consumers to not increase prices, it is a perfect storm. Restaurants are thinking outside of the box simply to survive in this new climate.”

Foodservice Solutions®, How can technological innovations help restaurants operate with limited staff and still increase revenue?  

Duncan, “The point of good restaurant technology should be to enhance the restaurant's ability to provide good customer service. Implementing technology that operates almost unnoticed by the customer while removing tasks from the staff that does not add value to the dining experience is the perfect solution.”

Foodservice Solutions®, How can self-service ordering and streamlined payment tools enhance customer experience? 

Duncan, “Creating great customer experiences happens when the front-of-house staff is engaging with the customer and not while items are being input into the POS or the customer is waiting on checks to be dropped and picked up. Order and pay at table solutions allow the customers to enter their own order and leave at their convenience when they have completed their dining experience all while enabling the front-of-house staff to provide an amazing guest experience.”

Technology can bridge the customer service gap when there are fewer employees available. Customers prefer to use self-service kiosks or access the menu by scanning QR codes because they can take additional time to read the menu, find new things to try, and customize their orders exactly to their preferences. 

Such technology means shorter waits at the counter, faster table turnover, and more accurate orders because the information is transmitted directly from the customer to the kitchen. Also, Pay-at-the-Table Technology cuts out the back-and-forth trips from the POS terminal to the table to process payments shaving several minutes off each table turn. 

“Manual orders are typically expensive, slow, and inefficient. Smart technology reduces labor costs, takes the load off servers, increases spending per order, and elevates the customer experience,” concludes Duncan.”   Are you looking a customer ahead.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Independent C-Stores Struggle to Compete with 7-Eleven

 

How can independent C-stores keep up with the grocerant niche fresh food fast undercurrent over flowing from 7-Eleven driven by customer consumption and adoption?  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated, “it’s not easy, however they must first simply follow the trends in foodservice and put their own local spin on it; that creates differentiation with a twist. After all differentiation in foodservice does not mean different, rather it means familiar but with a twist.”

In the case of technology, independent C-store must google 7-Eleven, for software that is like 7-Eleven, is expanding with for its new Mobile Checkout contactless shopping solution.  Don’t worry there will be a company out their filling the void with a product you too can license.

After all right now, 7-Eleven has Mobile Checkout available in more than 3,000 participating 7-Eleven locations in 31 states and Washington, D.C., The service allows 7-Eleven mobile app users to quickly scan items and pay for purchases without waiting in a checkout line. Here's how it works:

·         Download the 7-Eleven mobile app from the App Store or Google Play, or update the app to the latest version to ensure it has the Mobile Checkout capability.  

·         Register for or log into the 7Rewards loyalty program.

·         Open the app in a participating store and tap the "Mobile Checkout" icon on the homepage.  

·         Scan the barcode on each product to add it to the basket. Discounts or promotions will be applied automatically.

·         Pay for purchases in the app using Apple Pay, Google Pay or a debit or credit card. Customers can also pay with the 7-Eleven Wallet feature of the app.

·         Confirm purchase by scanning the on-screen QR code at the confirmation station before exiting the store or show it to a sales associate to confirm payment for the purchase.  

7-Eleven Digital Senior Vice President Raghu Mahadevan, stated, "After over a year of living through the pandemic, Americans have a new perception of what convenience looks like. For many, it's a contactless shopping experience without waiting in line," … "Luckily, we were already testing Mobile Checkout and had begun expanding 7NOW home delivery to hundreds of markets before lockdowns occurred. Now, we are accelerating the expansion of Mobile Checkout to ensure customers can shop at 7-Eleven the way they want to shop: safe and convenient. It's what people expect from the world's leading convenience store — we plan to exceed those expectations and take the in-store shopping experience to the next level."

7-Eleven is offering 10 times the 7Rewards loyalty program points for every purchase made using the new feature in the app for a limited time. Now how can they afford that?  That’s not the right question.  The question you should be asking yourself is; What is the Cost of New Customer Acquisition?  Your goal should be to acquire new customers.  The keep them for life.

While, 7-Eleven was the first convenience store chain to develop proprietary technology for a full frictionless shopping experience from start to finish. Mobile Checkout works on both Android and iOS devices and is available for most 7-Eleven merchandise that has a bar code. Some items still require cashier assistance, such as financial services and age-verified products like alcohol, tobacco and lottery tickets. Don’t worry, search the internet you too can find a solution.  Help you store look more like tomorrow than like yesterday.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Grocerants: Why This Business Model Is Taking Over

The way consumers eat is changing. In the modern world, getting food is more convenient thanks to things like mobile ordering apps and meal delivery services such as Yumble. This makes it easier for those who do want to stay in to have a good meal without having to worry about cooking. (Today we have a Guest Blog post provided by Oliva Chang.)

But, according to a recent Nielsen study, Americans are choosing to dine out in greater numbers than ever before. This is one factor contributing to the increasing popularity of grocerants, which are essentially grocery stores offering both shopping and dining options.

This emerging business model offers several major benefits to consumers. Convenience is a major one. Although people are now more interested in dining out than they once were, they still need to buy groceries from time to time. Being able to do both in one location helps them save time. This is very helpful in an age where constant connectivity has resulted in busy lifestyles.

Additionally, statistics indicate traditional restaurant menu prices have been rising, while grocery prices have not. Grocery stores that allow shoppers to purchase items and dine right there in the store may therefore save consumers money.

The following trends help to further explain why and how the grocerant model has become popular in recent years:

Spending Habits

Unlike previous generations, the vast majority of millennials would rather spend money on experiences instead of products. The grocerant model simply caters to their preferences. This trend is likely to continue, given that studies confirm having experiences makes people happier than owning possessions.

Social Media

Social media has given the average consumer greater opportunities than ever to share their opinions on the food they eat. Going to a restaurant or your local grocery store and sharing a picture of a meal (along with a brief review) on Instagram allows anyone to indulge their inner food critic.

Social Awareness

A recent study indicates consumers now prefer to connect with brands that prioritize sustainability. On top of that, the number of farmers markets in the United States has risen substantially in recent years.

Consumers no longer feel satisfied heading to grocery stores to buy products without knowing anything about their origins, the manufacturing process, the supply chain, and various other factors that impact how sustainable a product may be. They’d rather dine at spots where they can learn about how their food reached their plate.

A traditional grocery store typically won’t offer this information, while a grocerant often can and will. It’s also worth noting that dining out can produce less waste than buying groceries, which often use up substantial resources for packaging.

On-Demand Services

It’s clear to see the ways in which on-demand food delivery apps have changed the way consumers eat. Instead of cooking their own meals, people want meals delivered straight to them. A grocerant can offer this service.

These are merely a few reasons people have begun embracing grocerants in record numbers. Traditional grocery stores should take notice. In order to stay competitive, they’ll have to shift their business models to meet changing consumer expectations.

If you would like to be a guest blogger feel free to reach out to the team at www.FoodserviceSolutions.us or Steve@FoodserviceSolutions.us

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Fresh, Fast, Food Convenience Store Speedway Focus is on Speed

Success does leave clues and while Speedway has been known for it service, fresh, fast, flavorful, grocerant niche Ready-2-Eat and Heat-N-Eat food the roughly 3,000 unit chain continues to evolve adapting to the evolving food focused consumer according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consumers are dynamic not static as smart phones out number land lines more and more consumers have migrated to from cash to digital payment options.  So, customers at Speedway convenience stores can now use Apple Pay at checkout elevating service once again.

Johnson stated that Speedway’s updated digital payments are outstanding as a hand held Food Marketing tool.  It is one key tools that are the undercurrents driving incremental brand adoption putting a new electricity in brand relevance for many younger consumers specifically Millennial's.

Today, new partnerships can drive sales in foodservice today as your brand is searching for the new electricity to help drive the brand forward. So, just what is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, beer, developing brands, unique urban clothing, grocerant positioning, Fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

Digital payment is big and getting bigger as Apple Pay is rolling out now in Target stores and more than 7,000 Taco Bell and 2,200 Jack in the Box locations in the next few months.  Customers can also use Apple Pay today at more than 245 Hy-Vee stores in the Midwest.

With the addition of these national retailers, 74 of the top 100 merchants in the U.S. and 65 percent of all retail locations across the country will support Apple Pay, according to the company.   Is your company keeping pace with consumers?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant