STAFF: How Has the Fight for $15 Impacted the Country’s Culinary Capital?
Rumors of the New York restaurant scene’s death have been greatly exaggerated. When the city passed legislation raising its minimum wage to $15 per hour—$10 for tipped employees—doom & gloom came forth from every economic prognosticator from Washington Heights to Battery Park. Restaurateurs aren’t in this business for the fat profit margins—somewhere between 3-5% is the norm. With labor costs usually representing more than half of an establishment’s expenses, any increase in wages would surely spell disaster for the industry as a whole, right? Eh, maybe not.
DID YOU KNOWS…
Another City Bans Natural Gas
Brookline, MA has joined Berkeley, CA in its attempt to reduce carbon emissions. Brookline residents have voted to ban oil and gas pipes in all new buildings as well as in “gut renovations.” Supporters say the bylaw will singlehandedly decrease carbon emissions from local buildings – which account for two-thirds of the town’s emissions – by 15% over the next 30 years. The law is slated to go into effect in 2021, and there are some exceptions to take note of. Berkeley’s natural gas law ban is currently being sued by the California Restaurant Association.
It’s Getting Hot in Here
NASA's Goddard Institute for Space Studies recorded the surface temperature of the planet's land and oceans. As this chart shows, the trend over the last century has been one of increase. In 1918, the global annual average temperature was -0.30°C, one hundred years later it is now +0.85°C - an increase of 1.15°C and a significant step towards what has been described by UN Secretary General António Guterres as the 'point of no return' on climate change.
Latex Glove Ban
Lotta banning going on lately. Starting in January, California is banning latex gloves in restaurants and other foodservice locations. They join Ohio, Arizona, Connecticut, Hawaii, Oregon, and Rhode Island with similar bans. The California law noted that foodservice workers can wear latex glove alternatives, however. The goal is to lower the number of latex allergy incidents which can be caused by a product touching natural rubber latex, inhaling airborne latex protein particles, or ingesting food prepared using latex gloves.
THE BRINK OF WAR
Why it matters to you: Popeye’s declared war on the chicken sandwich; McD’s is now responding.
The Popeye’s chicken sandwich story is a perfect blend of healthy competition with a bit of cheek thrown in for good measure. However, some of their competitors don’t seem to be in on the joke and they are working furiously to respond. We have so often encourage you to follow the national brands as a method of keeping up and it seems like McDonald’s is following our advice. They have been testing two new chicken sandwiches of their own which have the illustrative names Crispy Chicken Sandwich and Deluxe Crispy Chicken Sandwich. Yup, that’s for real. The real problem isn’t that they aren’t creative or even that they are late. No, what McD’s fails to comprehend is that Popeye’s success is precisely because they aren’t as big as the largest fast food chain.
Their relatively small foot print (3,100 locations vs. McD’s nearly 38,000) is part of the viral success of their crispy chicken sandwich. They launched the marketing for the sandwich by trying to throw some shade a Chick-fil-A and their success was as much predicated on scarcity as any other factor. McDonald’s can never compete with scarcity and, frankly, they shouldn’t try. However, as an independent operator you can, and that is exactly the instruction from this chicken sandwich war we are seeing. Create your own viral sensation. In your case, that sensation doesn’t have to sweep the internet. It just has to excite your guests and be available as a limited time offer (LTO). If it succeeds, you can continue to follow the Popeye’s model and add it to your menu. Heck, even McD’s follows this recipe (think McRib). So, take that first step and find the right sandwich to make it so.
[Source: USA Today]
GIFT CARDS FOR THE WIN
Why it matters to you: Selling gift cards is a sound marketing strategy for more reasons than you may think.
Hear me out on this: gift cards are the sales batteries of the restaurant industry. By selling cards all month in December, you can store up revenue and allow it to trickle in over a long period of time. In fact, estimates have the number of gif cards that are never redeemed at almost $1 billion. Even better, the benefits of gift card sales are only limited to them never being redeemed. Gift cards are a way to grow your business by introducing your restaurant to folks that might not have visited were it not for the gift certificate. So, do you have a gift card marketing plan in place? If not, you are literally walking past the profit in ways you might not even understand, which is why this primer on gift card marketing is perfectly timed.
To start, make sure you make it’s easy to buy your gift cards. Whether it’s an online system or just having a handful already prepped for sale, you want to make sure they’re not a hassle for your guests to buy. A seamless process is crucial. To drive those sales, include gift card messaging in ALL of your marketing efforts throughout December. Some operators offer promotions like get your own $20 gift card when you purchase $100. Amplifying the purchase is a great way to reward your regular guests for promoting your restaurant. You can also work with third-party network that take a percentage of the sale but make your card available on more places to more people. No matter what strategy you take, there is no doubt driving your gift card sales in December will translate into an easier January and maybe even a better year overall.
[Source: Modern Restaurant Management]
