🍷 Restaurant Roundup 2nd May 2024

👋 Get the latest scoop on the hottest hospitality trends served with a side of expert insights, from Domino's Tipping strategy to KFC's Nugget Dispensary

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📈 QSR and Fast Casual Visits Outpaced Full-Service in 2023

A new whitepaper from Placer.ai shows that QSRs and fast casuals have experienced year-over-year increases in visits every quarter since Q1 2023, while full-service chains' growth has slowed down. QSRs have benefited from the speed of service, invested in expedited service, and leveraged the marketing calendar to drive visits. The heavy presence of chicken concepts has also worked in their favour. Nevertheless, the industry is moving towards lowering pricing to sustain higher traffic levels. (NRN)

• 💡 I’m writing a deep dive into Chicken concepts; here’s a sneak peek at some of the trends

🍗 KFCs Saucy Nuggets Dispensary Experience

On April 20th, KFC offered L.A. residents the chance to try their new Saucy Nuggets, available in five different flavours, at the KFC Saucy Nuggets Dispensary  (as an alternative to Cannabis). The new nuggets, launched nationwide on April 1, come in Honey Sriracha, Korean BBQ, Sticky Chicky Sweet 'n Sour, Nashville Hot, and Georgia Gold flavours. KFC invited the public to visit the Dispensary and discover their preferred nugget flavour with the help of KFC's "sauce-perts." (RB)

• 💡 The global condiment market is growing, driven by increasing demand for ethnic cuisines and convenience foods,  so this is a smart move from KFC.
• Pop-up restaurants can be an effective way for restaurants to show off their creativity, generate hype, test new menu items, and connect with customers. Get involved with social media trends and holidays to create a sense of urgency and exclusivity.

🛒 Convenience Stores Pose Growing Challenge to Restaurants

The convenience store sector is evolving, shifting towards expansive foodservice programs to rival traditional restaurants. Highlighted by Joe Pawlak of Technomic at the Restaurant Leadership Conference, notable examples include a large, two-story QuikTrip in Fort Worth, Texas, focusing on prepared foods, and Buc-ee's, known for its massive stores and wide food service selection. This marks a significant evolution in convenience store offerings. (RBO)

• 💡 To combat the threat convenience stores and supermarkets pose to restaurants, use your marketing channels to showcase your experience, ambience, and service and differentiate yourself from grab-and-go options.
• Promotions and loyalty programs that focus on value can help combat the price-driven nature of grocery store meals. 
• Create targeted campaigns for each customer segment to educate viewers on how you cater to dietary and accessibility needs.

🍕 Domino’s Rewards Customers Who Tip Delivery Drivers

Domino's Pizza has announced a new promotion called "You Tip, We Tip" starting on April 29th. Customers who tip their delivery drivers $3 or more will receive a $3 coupon for their next order. The coupon is only valid for one week, encouraging customers to order from Domino's every week. This offer is only available through Domino's direct ordering channels. It is an extension of a previous customer tipping program introduced in January 2022, which offered discounts to take-away customers.

• 💡 This campaign is a good idea because it incentivises customers to tip delivery drivers while promoting repeat business. It should enhance customer satisfaction and build loyalty by acknowledging and rewarding tipping behaviour if successfully executed. 
• On the downside, this could increase pressure on delivery drivers to earn tips and reduce overall order value if customers aim for the minimum tip. Loyalty programs with tiered rewards or points systems could be a more sustainable strategy for repeat customers.

🕯 Papa Johns Launches Dip-able Garlic Butter Candle

Papa Johns has recently launched a new product to delight garlic lovers. In celebration of National Garlic Day, the company created limited-edition Garlic Butter Candles made with their signature Special Garlic Dip. These candles are available online and bring "a new level of flavour and ambience to any pizza night." Inspired by the popular butter candle trend, the melted "wax" becomes a delicious creamy dip to enjoy with your pizza. (JO)

• 💡 This quirky campaign creates buzz and shows brand personality, but replicating it might be tricky. For broader appeal, restaurants could consider twists on existing menu items or playful social media campaigns. 
• Venues offering unique experiences and food innovation could consider creating their own butter candles to differentiate themselves and attract customers.

That's a wrap for the week! thank you for being here! 🙏

I am honoured to include people from these amazing brands (and many more) in this newsletter community.

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