THE "FAST-CASUAL" DINING PHENOMENON

FOR RESTAURANTS AND BARS

Many recent articles relating to the on premise segment of our business, have commented on the decline of casual dining. I even authored an article on this very subject, for a national publication.

In that article as well as many others, it seems that, along with the tough economy, the problem facing this segment is cheap competition. I spoke with the owner of three north Jersey restaurants. He told me that he had never seen competition coming at him from so many directions. He told me (I paraphrase), “When times are tough, as they are now, people look long and hard at where they can spend their money. I not only consider other dining places to be my competition, but also Bennigan’s, Chili’s, Mc Donald’s, Denny’s and even the hot dog stands you see around the area. Anyone offering a food experience has to be in my cross-hairs.”

With that as the background, I will now bring up the newest twist to the casual dining scene; In an attempt to fight the soft economic conditions, along with all of the aforementioned competitors, in a more profitable manner, some “outside the box” thinkers are attempting to create a new category…”fast casual” dining.

The idea behind this direction is simple. Take some of the costs out of the equation while maintaining a positive atmosphere for the customers. In any business, two of the top P & L line item expenses are payroll and cost of goods. Knowing this, some intelligent retailers have made changes to the established template for casual dining. They are attempting to alter their business, saving costs where possible, while trying to maintain the same ambiance and positive feel of the original place.

Some suggested changes can be, but are not limited to:

1) A seat-yourself policy (no hostess or reservations).

2) A trendy but limited menu, offering the top selling menu items (or profit-makers) of the current establishment.

3) Cafeteria style food offering, with table service for beverage and clean up only.

4) A limited beverage offering, concentrating on profitability and turnover.

5) A closer look at portion control at the back end of your place. Not reducing portion size, but ensuring consistency.

6) The proper placement of items on your menu. Studies have proven that the customer will spend a greater amount of time looking at the top of the right-hand pages in a menu. Take full advantage of this by placing your most profitable items in these spots.

7) Always post a daily menu on a dry erase or chalk board. Make sure your specials all tie in a beverage at a reduced price. Go one step further and change the board with the meal/time. A lunch board from 11:00 ‘til 2:00; a Happy Hour board (where legal) from 4:00 ‘til 6:00; a dinner board from 5:00 ‘til close. Make sure the customer is aware of the items YOU want to sell.

When analyzing an establishment for this potential makeover, the above points should be reviewed. As the retailer, it is you who must make the final decision on which way to move your business. A great “sounding board” can be your Beverage Alcohol distributors. Beverage Alcohol is the one product that can make the transition to the “fast casual” concept, with the least amount of hassle. It is one of the most profitable categories in your establishment and (with the exception of some wines) it involves very little employee training in order for your wait staff to become proficient in answering customer questions.

Use your Beverage Alcohol distributors to help plan this move to the next hot idea in the on premise segment. These distributors can share with you the sales trends, margin breakouts and support items for all their potential items. They can also help you with promotions and specials tied to food offerings. If this new direction means you must impact new consumers, your distributors can help you to reach them. Consider the distributor as a consultant to you and your business. Their resources enable them to help you with ideas and concepts from different areas. This blog can also assist with ideas and success stories from other markets around the country.

Be aware of all potential avenues down which you can take your business. Making changes to the status quo and staying one step ahead of your competition, can repay you with surprising, long term benefits.

More on this trend in upcoming blogs.

We appreciate your business and support.

Thank you,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net