Greetings!
Anecdotally, we know that Dining with a capital D is making a comeback. We see it in the opening of Gabriel Kreuther, with its multimillion-dollar, ultra-luxe fine dining in New York City. In the ability of restaurants like San Francisco’s Saison to charge for its meals ahead of time. And now NPD tells us that more guests are indulging themselves by dining in, rather than taking out.
While this is good news for average checks—better beverage sales, more desserts and other add-ons—it also means that operators will have to step up their games in terms of execution and service. Consumers may be willing to put up diminished quality for the sake of takeout or delivery convenience, but when they’re dining out they’re doing it for the overall experience.
In this month’s newsletter, we’ve got two articles that cover aspects of the customer experience: better coffee, and so-called “large format” menu items, which represent the opposite side of the small-plates coin. And be sure to read Clyde Gilfillan’s article on the six keys to financial success.
The New Coffee Culture
By Joan Lang, Editorial Director
Portola Coffee Lab
Forget the age-old question “Regular or Decaf?” Today it’s more likely to be “Pour-over or Cortado?”
Customers have been gathering at local coffeehouses for hundreds of years, but the past decade has seen a new order, with an ability to personalize and experiment with coffee that has grown to become a mainstream phenomenon. With new trends like pour-over coffee or single-service brews, the specialty coffee revolution that was pioneered by companies like Starbucks is continuing its run at innovation. A so-called Third Wave of Coffee movement now underway includes refinements at all stages of production, from improvements in coffee bean growing, harvesting, and processing, to stronger relationships between coffee growers, coffee traders and roasters, to higher quality and fresh roasting, also known as micro-roasting.
Analogous to the elevation of everything from bread to beer to cheese—and borrowing more than a page from the terroir-based wine craft movement—coffee has become a culinary product. And that makes it a competitive point of difference for operators, not just in the specialty coffee sector, but in any operation where quality and artisanship are part of the menu.
Interestingly, the technology ranges from the retro-chic (Chemex) to the ultra high tech (nitro-injected cold brew), often happily coexisting on the same counter. Many Third Wave coffee houses also do their own roasting, sometimes onsite, as at Tandem Coffee + Bakery, which is garnering a cult following in Portland, ME.
All this is fine and dandy for a dedicated specialty coffee shop with baristas and a full budget allocated to roasting, grinding and brewing high-end java. But how can operators of full-menu restaurant operations leverage the public’s interest in fine coffee—and being able to enhance sales and profitability in the process? Even QSR chains are doing it, so it’s important to keep ahead of the trend.
Here are some ideas, one or more of which can elevate your coffee service.
1. Consider a single-origin coffee program – One of the biggest trends in coffee is buying product grown within a single geographic area, rather than a blend. You have to do your homework, since certain geographic areas can be so large as to be meaningless as a harbinger of quality, but promoting single-origin is a great strategy for emphasizing your commitment and garnering premium prices. Better yet, consider offering a rotating selection of different single-origin coffees, depending upon the season or other factors.
2. Make sure it’s on the menu – Customers won’t necessarily know you pride yourself on selling a great cup of coffee unless you let them know. While characteristics like aroma and fancy siphon brewers on display say COFFEE, not every restaurant can do this. Put your coffee selections on the menu, including any special considerations like how it’s brewed and where the beans are sourced.
3. Buy coffee locally – More and more cities have roasters who are crafting unique coffees that they sell wholesale, as well as in their own retail outlets where coffee lovers can become more familiar with the brand. Work with a local roaster, just as you would farmers, cheesemakers and beer brewers.
4. Have a “house blend” crafted to your specifications – A step above sourcing is custom-crafted. Thomas Keller has worked with Equator Coffee on custom blends for his restaurants for years, some of which are also sold to the public. On the other end of the spectrum, there’s Chik-fil A’s Farmer Direct. Many specialty coffee roasters now offer custom service, which represents a powerful win-win for both buyer and seller—not to mention the coffee-loving guest
5. Get in on the iced-coffee boom – Iced coffee is hot, and getting hotter, and the same quality trends (brewing method, bean origin, etc.) that are affecting hot coffee are also impacting the iced coffee market. Mintel data further suggests that the recent growth in iced coffee sales has not been restricted to summer. Many operators are also offering flavored iced coffee to take advantage of snacking and mini-indulgence occasions
6. Upgrade the brewing method – Even in-room hotel coffee is improving, thanks to K-cups and other new technology. In addition to sourcing better beans, buy the best and most appropratre brewing method you can afford for your concept and volume needs—even if you only sell a few hundred dollars’ worth of coffee a night. At the very least, the investment will pay off indirectly in a coffee program that will shine a halo around your operation’s quality commitment. At the most, it has a good chance of improving sales and profits in the long run
7. Investigate French press and other tableside methods – On a related note, there’s nothing like a French press, delivered and plunged tableside, to satisfy coffee lovers and self-merchandise to guests at neighboring tables; they can also command premium pricing, especially when offered in addition to “regular” coffee. Like the old-fashioned espresso pots served in Italian restaurants, the French press and its kin turn coffee service into a pleasurable ritual. Small individual pots of already-brewed coffee, which provide a second cup, are another means of making tableside service count for more
8. Don’t be afraid of the dark side – Dark roast, that is. Even Dunkin’ Donuts, long known for its light-duty coffee, is offering a more robust dark roast
9. Grind beans in-house – Few things make coffee taste better than freshly grinding the beans. New brewing methods combine grind and brew into one piece of equipment, but a separate burr or other specialty grinder work just as well
10. Cross-utilize coffee in cocktails – Summer or winter, good coffee makes a great cocktail, bringing new meaning to the term “getting a buzz.” It needn’t be brewed to order, either, especially in the case of cold coffee drinks, which means that you may be able to use overproduction. Note that you can even repurpose that French press
For more information, including coffee basics and more trends, check out this comprehensive article from Men’s Journal.
Large Format is the New Small Plates
By Joan Lang, Editorial Director
Now that small plates for sharing have become ubiquitous on the menus of both independents and chains, it’s time for a new shareable concept. That would be “large format.” Like family-style platters, large format feasts are meant to be shared by a group of diners, and they often comprise not just large portions, but large pieces: roasts, whole fish, an entire fried chicken or another multi-portion prepared item.
At Chicago q, for instance, where chef/partner Lee Ann Whippen has translated her success on the championship barbecue circuit to an upscale restaurant, ‘cue lovers can order a whole pork shoulder for the table, accompanied by cole slaw, American Kobe beans and corn bread. The signature item is such as big deal that it is brought to the table on a cart and pulled tableside by the chef herself, using a pitchfork-like tool called “bear claws.” How’s that for a signature item that guests will remember and associate with Chicago q for a long, long time?
And, like small plates, large-format items have significant operational benefits that the average guest isn’t even aware of:
• They’re dramatic, self-marketing signatures
• They often require advance notice, which helps with forecasting
• They support premium pricing
• There can be customer education or a special point of service contact involved (such as when the server explains
how to roll a lettuce wrap or discusses sustainable seafood while boning a fish)
• The Instagram-worthy appearance of large-format items makes them perfect for word-of-social-menu advertising
• They can be easier for the kitchen to prepare and the waitstaff to time than individual-order coursing
In reality, the concept is not that different from a traditional Chinese dim sum meal, in which diners share a few plates of dumplings and other nibbles, then finish with a communal soup, hot pot or noodle dish—many of which are only available during dim sum service hours. And how many Continental restaurants featured Chateaubriand for two back in the glory days?
In other words, big shared dishes are a fixture in many cultures, but savvy restaurateurs are putting this own spin on things for a new foodie audience.
• April Bloomfield, chef/owner of The Breslin, John Dory, The Spotted Pig and other popular NYC restaurants, offers such popular “large formats” as a $75-per-person Thai Feast (centered on a whole tempura-fried red snapper) at John Dory and Rib of Beef, Balsamic Roasted Duck, Suckling Pig and more at The Breslin.
• Hotel ZaZa, in Houston , offers an unusually comprehensive large format menu program that can include shared starters, sides and sweets, and such entrees as Sauteed Striped Bass, Cherry Cola-Marinated Quail and Roasted Pork Tenderloin
• Nashville’s Josephine has become known for its multi-category large format options, including meats like split goat, vegetables such as a whole roasted cauliflower, and desserts including an entire chocolate tart
• The Frontier, in Chicago, offers a large-format “animal service” that includes everything from heritage pork, wild goat or a shrimp boil to a whole wild-caught alligator stuffed with whole chickens, and smoked over cherry and apple wood. Available for 12-15 people and priced per the market, it’s served with alligator jambalaya, Caesar salad with polenta croutons, 5 cheese mac, vegetable succotash and cornbread
The fact that these dishes are marketed as large format, rather than the family-style or even banquet menus that they are speaks to a whole new niche for the concept.
And if your guests are not quite ready for a whole smoked alligator, bear in mind that there are other foods that can be menued as a large-format feat, including casseroles like lasagna or baked ziti, comfort foods such as meat loaf or roast chicken, or other large-batch foods like tagine or a lobster bake. It’s all in the attitude.
6 Keys to Financial Success
By J. Clyde Gilfillan, JCG3 Development Inc.
The essential goal for restaurateurs is to be a financial success – I doubt that many are in this business to lose money. While some value the everyday work and pleasure that comes from this greatest of businesses, this is a complex industry, with many variables and obstacles to success. It can be intimidating to those who are new to the industry, and frustrating even for veterans. However, there are six keys we can focus on that can help us move our restaurants in a positive direction and set up an atmosphere of success.
1. Surround yourself with the best people in the right positions, with clear standards, expectations, and performance levels. As in many customer-focused businesses, it’s the people who work within the structure and culture who drive the results. You must go beyond simple recruiting and hiring; you must hire the best people, put them in positions they can succeed at based on their abilities, and provide them with clarity—of work standards, job expectations, and the performance level they should attain.
2. Maintain an atmosphere of total quality, and remain consistent with that quality standard. Based on what is the best for your business (McDonald’s level of quality based on their standards is no different, better or worse than, say, Del Frisco’s—it’s all relative), your strategy must be to maintain that performance to standard with zeal and urgency. It is the attitude of the leader who dictates the level of quality and the passion for it. Included in this atmosphere of quality is a sense of consistency throughout the organization, a sense that the consumer can count on what that restaurant promises. You have to be consistent every day in your core products and services.
3. Be innovative and take risks where prudent and wise. While maintaining that core consistency, it is also wise to be innovative and to take prudent, measured risks to open new markets and target new consumers in order to grow your restaurant. It’s one thing to remain true and consistent with your core concept, but it’s another to stay stagnant while the industry goes right on by.
4. Have systems and controls/strategy and tactics in place to make sure you don’t just “wing it.” Systems provide stability, methodologies, and pathways to consistency in performance, and controls provide analytical checkpoints to measure performance metrics; both are essential to letting employees know where to go and how to do well in their jobs. Additionally, so many leaders at all levels are so singularly focused on the day-to-day operation of their businesses that they can lose acuity in the long-term. Having both strategic plans (those concentrated on the why, what, and where aspects) and tactical plans (those concentrated on the who, how, and when aspects) will provide horizontal and vertical perspective to leaders.
5. Be consistent with your numbers, and know where your money is: metrics are the lifeblood of results strategies and tactics. Measuring performance—whether through profit-and-loss statements, people performance evaluations, consumer focus groups or similar methodologies—is essential to understanding whether numbers are remaining level or if they are fluctuating. Fluctuation is a symptom of problems uncontrolled. Similarly, you must know where your money is—in other words, where you spent your money and why you spent it those ways. Tracking your financial performance is an essential part of operating a successful restaurant, but understanding the results puts you in a much better position to create better results.
6. Achieve continued same-store sales increases while expanding your base of restaurants. In order to grow in this business, you should strive to increase your restaurant sales period over period, year over year, and leveraging your concept over more than a single unit provides the economics to generate real growth numbers. While it is a dream of many to own and operate their own restaurant, creating a concept and brand that can grow beyond that single location leverages cash flow and economies of scale.
Need help building a more financially successful restaurant business? Contact Synergy Restaurant Consultants for an evaluation.
Tip of the Month
The large-format trend also exists in the beverage world, of course, ever since the wine industry invented magnums and craft brewers began bottling beer in 750 ml form. And apart from cocktails like the supersize Hurricane at Pat O’Brien’s in New Orleans, large-format drinks are very in vogue as well. New York magazine gave a shoutout to the Rum-Vroom Punch at End of the Century, and to the infamous Mai Tai Explosion at NoMad Bar, while Chicago drinking spots like Fulton Market Kitchen and The Dawson are getting lots of buzz for their communal quaffs.