🎃 Food for Thought: 28th September 2023
Serving Up Industry Insights and Expert Advice for Restaurants
In this week's Food For Thought Newsletter
Uber Eats to Enhance User Experience with Google-Powered Chatbot in Late 2023
Shake Shack Tests Sugarcane Alternative "Zero Acre Oil"
Opening a New McDonald's Franchise Will Be More Expensive in 2024
Restaurant Technology: Top Trends and Tools
What the Craft Beer Sector Could Look Like Within 10 Years
Pepsi's Creative Genius Makes a Comeback Alongside Mo Salah
Christmas 2023: What Can the Off-Trade Expect?
Coca-Cola's Latest Creation: AI-Powered Beverage for a Futuristic Twist
Will Chipotle's Burrito Robots Take Over?
Chick-fil-A Tests Robot Servers
☕ Grab a Coffee, and Let's Get Started
📱 Uber Eats to Enhance User Experience with Google-Powered Chatbot in Late 2023
Uber Eats has announced its plans to launch a chatbot feature powered by Google's PaLM 2 large language model (LLM) in the US, UK, Australia, and Canada. Initially, the AI assistant will assist users in finding restaurant deals and reordering favourite items. Uber aims to enhance user engagement and increase conversions with this conversational AI.
The chatbot will allow customers to make specific requests, such as finding vegetarian Thai dishes or trending Mexican restaurants. It will provide personalised recommendations based on the customer's preferences and assist in removing the need for manual navigation across menus and stores.
💡 This will streamline the ordering process and remove the need for manual navigation across menus and stores on the app, ultimately enhancing the customer experience. Restaurants with ordering websites must offer a friction-free experience to drive direct sales. A Customer Experience Audit can help you identify any areas for improvement along the customer journey.
🌿 Shake Shack Tests Sugarcane Alternative "Zero Acre Oil" for a More Sustainable Menu
Shake Shack is testing Zero Acre oil in two Manhattan locations as part of a pilot program during Climate Week NYC. The oil from rain-fed sugarcane plants aims to champion sustainability by replacing soybean oil in several menu items.
The initiative includes popular items like Crinkle Cut Fries, Shroom Burgers, Shack Stacks, Veggie Shacks, Chicken Shacks, and Chicken Bites. Shake Shack's collaboration with Zero Acre Farms demonstrates their dedication to reducing their environmental footprint.
According to the company, swapping traditional vegetable oils for Zero Acre oil offers a healthier and more environmentally friendly choice. The company aims to revamp ingredients to align with its environmental, sustainability, and social governance goals.
💡 The collaboration between Shake Shack and Zero Acre Farms demonstrates Shake Shack's commitment to environmental, sustainability, and social governance goals. This initiative showcases how restaurants can change their menu items to offer healthier and more environmentally friendly choices, attracting eco-conscious consumers and boosting their brand image.
🍟 Opening a New McDonald's Franchise Will Be More Expensive in 2024
McDonald's announced its first increase in franchise royalty fees in nearly 30 years. Starting January 1, 2024, the fees will rise from 4% to 5% in the US and Canada. This increase will apply to new franchisees, buyers of company-owned restaurants, relocated establishments, and other scenarios involving the franchisor.
Existing franchisees running current operations, those purchasing franchised locations from other operators, rebuilt existing sites, or restaurants transferred within family members are exempt from the increase. McDonald's US president Joe Erlinger, stated that the increase is to ensure the long-term success and value of the brand.
The 5% fee is standard in other countries, while the 4% was specific to North America. McDonald's does not anticipate a significant impact on its current market, considering the higher rate is common in many owned markets. As of 2021, McDonald's has over 13,400 locations in the US, with 95% operated by franchisees.
💡 Restaurant owners and marketers should take note of this news because it highlights the changing costs of opening and running a successful fast-food franchise. It also provides insights into the McDonald's brand's long-term strategy and value preservation.
🍽️ Restaurant Technology: Top Trends and Tools
Some key tech trends for the restaurant industry in 2023 include the implementation of digital menus with augmented reality for visualising dishes, robot-assisted kitchens to enhance chef capabilities and AI-powered customer insights for personalised marketing campaigns.
Smart inventory management using IoT devices allows restaurants to monitor inventory levels and minimise waste. At the same time, eco-friendly tech integrations promote sustainability, and voice-activated ordering through devices like Alexa and Google Assistant provides customers with a hands-free and intuitive interaction.
These tech-infused trends are reshaping the future of the restaurant industry, providing restaurants with innovative tools to optimise their performance and offer an enhanced dining experience.
🍻 What the Craft Beer Sector Could Look Like Within 10 Years
The global craft beer sector is projected to exceed $282.6 billion by 2032, growing at a CAGR of 10.6%. Ale beer dominates with diverse flavours, while the off-trade holds over 60% market share.
Craft beer tourism and the surge in microbreweries drive growth. North America leads with % revenue. To expand, breweries can tap emerging markets, invest in eco-friendly practices, and offer low-alcohol options. Differentiation, branding, and distribution strategies are also vital ingredients for success.
💡 The growing demand for craft beer could be a lucrative opportunity for restaurants. There is significant potential for restaurants to increase their revenue by selling craft beers. Additionally, the surge in microbreweries and craft beer tourism presents an opportunity for restaurants to collaborate with local breweries and attract beer enthusiasts as customers.
By offering diverse craft beers, including low-alcohol options, restaurants can cater to changing consumer preferences and attract a broader customer base. In this competitive market, differentiation and branding strategies will make all the difference.
🏆 Pepsi's Creative Genius Makes a Triumphant Comeback Alongside Mo Salah
Pepsi has launched its latest summer campaign, "The Street Is Full of Surprises," featuring football players Dejan Lovren and Mo Salah. The advert in Alexandria showcases the players trying various oriental foods before introducing Pepsi's new edition, Extra Fizz.
The campaign also highlights the beauty of Alexandria and its delicious cuisine. With background music featuring the iconic song "Sawah" by Abdelhalim Hafez, the advert aims to promote tourism and the new Pepsi edition.
Expectations are high for the campaign to go viral and reach millions of views, especially with Lovren's involvement. Pepsi's creative approach in connecting the new Extra Fizz edition with food and utilising the friendship between Salah and Lovren has been praised. The brand continues to set the bar high with its innovative campaigns.
💡 Through the association of new Pepsi editions with food and the friendship between Salah and Lovren, Pepsi has created a powerful story that drives an emotional connection between the brand and its consumers.
🎄 Christmas 2023: What Can the Off-Trade Expect?
Consumer research reveals that 35% of UK and Ireland consumers go out less frequently due to concerns over the cost of living and inflation. This may lead to more shoppers turning to the off-trade to treat themselves at home during Christmas 2023.
Retailers are expected to offer enticing promotions to encourage forward buying, with a focus on the spirits category. Beer has increased its lead in the low/no-alcohol category, giving spirits and wine manufacturers an opportunity to gain within this growing market.
Offering attractive deals is expected to yield favourable results during Christmas 2023.
💡 Where margins allow, restaurants can position themselves as an attractive and affordable option for consumers who still want to enjoy dining out but are looking for cost-effective alternatives.
To set themselves up for success, restaurants can offer special promotions, discounts, and value deals to entice customers during Christmas 2023. They can also focus on creating a welcoming and comfortable atmosphere to make dining out a memorable customer experience.
🥤 Coca-Cola's Latest Creation: AI-Powered Beverage for a Futuristic Twist
Coca-Cola has launched Coca-Cola Y3000, a limited-edition beverage co-created with human and artificial intelligence under its Creations platform. It is the company's third flavour release this year and aims to attract younger consumers. The Y3000 Zero Sugar and full-sugar versions will be available in select markets globally, including the United States.
The drink was created through human and AI perspectives, incorporating emotions, aspirations, colours, and flavours. Bubbles make up the Coca-Cola Creations logo, and the packaging design reflects a futuristic theme.
With AI, Coca-Cola hopes to forge deeper connections with consumers, especially among online gamers and social media users.
💡 The launch of Coca-Cola Y3000 and its AI-driven development highlights the growing trend of using AI in product creation and marketing campaigns.
🌯 Will Chipotle's Burrito Robots Take Over?
Chipotle is testing a new robot called The Makeline that can produce between 120 to 180 burrito bowls per hour, compared to a human employee who can make only 20 to 30 bowls per hour.
The robot offers better consistency and accuracy, addressing online order delays and missing ingredients. It may render popular customer "hacks" obsolete, such as asking for larger portions or double servings.
The robots will initially be used for digital orders only, and Chipotle may open new stores focusing solely on online orders. However, it is unclear if human employees will be phased out entirely in the future.
💡 Chipotle's robot is likely to get mixed reactions. Many people see this as a positive thing as it can lead to faster service and fewer errors, all of which help address the growing demand for online orders.
However, there may be concerns about the potential impact on human employees. The loss of jobs and the potential dehumanisation of the restaurant industry may worry some people.
It is important to note that while robots can offer many benefits, they may only be suitable for some restaurant brands.
🤖 Chick-fil-A Tests Robot Servers
Chick-fil-A is testing autonomous robots in select dining rooms to enhance the guest experience. The robots deliver food to tables while staff assist with beverage refills, table cleaning, and guest hospitality. This follows previous pilot tests of robot delivery services near Austin, Texas, and Santa Monica, California restaurants.
The fast food chain has been dedicated to improving customer service without overwhelming staff, adopting mobile ordering for dine-in guests in 2019 and implementing geofencing and wait time tracking features in its app. At least two robot servers, produced by Bear Robotics, were spotted in Texas restaurants.
This move towards robot servers is relatively rare in the fast food industry, with robotic waiters commonly found in casual chains and some independent restaurants. The Bear Robotics Servi models deployed by Chick-fil-A can carry two trays, hold up to 66 pounds, and have an eight to 12-hour battery life.
💡 A robot server can help restaurants use their human resources more effectively, increase productivity, and serve customers faster. Their fast and accurate work reduces the chances of errors and inconsistencies.
It's not without its cons, however. The initial investment, maintenance, and training involved in implementing robot servers should be considered carefully. Be sure to think about these factors and your brand's values before deploying robots in your restaurant.
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That’s a wrap for the week!
Please don't hesitate to contact me with any feedback or suggestions for future topics. Here's to Your Success 🥂