The Latest Scoop: The Restaurant + Food Service Industry
The year 2020 influenced (and may have altered forever) the way companies thought, operated, and planned. Because of that change, Setup has kept a close eye on ever-changing industries. We saw changes especially in the Restaurant sector - which is why we wrote about the Restaurant industry once, and why we are writing about it again!
Read more - The Restaurant Industry in 2020 + Beyond
“Delighting our Guest is in our DNA. We live and die by it.”
Meet the contributors:
#1 - What innovative changes are happening in the restaurant and food service space? What changes made are going to remain permanent moving forward?
Digital Growth
In order to create a comfortable and safe environment for customers, restaurants have added digital and off-premise services to customers. “Restaurants have had their make-or-break moment on digital, and those that can service off-premise effectively will continue to thrive,” shared Just Salad’s CMO, Andy Rooks.
Digital has gone from a non-essential to a crucial part of the business. “For many QSR’s it was unheard of that mobile order, pick-up, and delivery would represent such a substantial part of the business, yet here we are,” Ryan Ostrom, the CMO of Jack in the Box shared.
He added, “In addition, the digital journey of the guest is going to continue across all aspects of the business…from in restaurant dining to more enhanced drive thru. There is a focused effort by all QSR’s to get a stronger digital relationship with the guest, especially as recent privacy changes will impact how many of them currently market to them.”
“Today it is vital for regional and national brands to have a digital ordering experience. We have spent tremendous resources on our digital ordering experience this year and continue to enhance it. I see similar moves from other brands. Plus more and more food brands are utilizing text marketing.”
Brand Development
Through partners or further investment in retail, brands are doubling down on who they are and how they get noticed.
Rooks stated, “The most successful restaurant brands will continue their retail experience through packaging and messaging, even on third party platforms. Brand is more important than ever as a differentiator.”
Other brands are cutting through the noise by getting brand affiliates or partnering digitally with the NCAA NIL or college athletes. Julie Wade, the Senior Director of Marketing for Taziki’s Mediterranean Cafe, shared, “Going forward, everything is going to be about digital: micro-influencers, advertising on streaming services and geofencing are all here to stay...Brands are going to continue to dump millions of dollars partnering with influencers until the market becomes oversaturated.”
#2 - Are there other industries or companies outside your own that you have looked to for inspiration and why?
Just Salad is inspired by…
“Two of my favorite brands, Ben & Jerry's and Patagonia, both do an exemplary job of tying social good into their marketing DNA. Balancing product and mission is a big challenge, and often the mission gets pushed to the wayside or viewed as a publicity stunt. I love what these two brands do to incorporate what they stand for into the product and customer experience - it's truly differentiated and unforgettable,” stated Rooks.
“Balancing product and mission is a big challenge, and often the mission gets pushed to the wayside or viewed as a publicity stunt.”
Jack in the Box is inspired by…
“There are a ton of industries we look to for inspiration. It starts with the entertainment industry with players like Netflix and Hulu as we are fighting for the same customers' attention. We have to ask ourselves, ‘How do we not only partner to target their customers, but at the same time develop content that captures the audience’s attention?’”
Ostrom then noted Amazon for their personalization efforts and ability to make their consumer’s lives easier.
“Sometimes as marketers we gravitate to the shiny object when in fact the simple solutions provide some of the biggest wins.”
He then noted brands like Ghost, Alani Nu, Bang, and Beyond Raw because they “are truly building a name for themselves by leveraging social and digital channels. They are creating armies of brand ambassadors that become the true advocates of the brand and have more impact on sales than marketing from the brand itself.”
Brinker International is inspired by...
Wade Allen, SVP of Innovation, listed:
Grocery/mass merchants (Kroger, Target, and Whole Foods)
Tech Retail (Amazon, Tesla, and Apple)
Hospitality (Marriott, Hilton, and Airbnb)
“While no one has a crystal ball, these companies are very good at identifying new consumer needs that eventually mature into disruptive innovation.”
# 3 - What lessons can other industries learn from the restaurant and food service space?
Easy beats fast - Ryan Ostrom | CMO | Jack in the Box
“In QSR, a drive-thru takes only 5 minutes for an order, but the fastest growth in the business is a 45 minute delivery. Consumers truly value convenience.”
Be unique - Andy Rooks | CMO | Just Salad
“More than any other, the food service space is highly competitive and individualized to consumers. Remember that if you try to speak to everyone you speak to no one, and that you should focus on what makes you unique.”
Consistency is king - Ryan Ostrom | CMO | Jack in the Box
Making a great consistent product is key to winning the customers’ loyalty time and time again.
Be C.R.A.V.E.D. - Ryan Ostrom | CMO | Jack in the Box
“C.R.A.V.E.D is being cultural, relevant, authentic, visible, easy, and distinctive. Once you apply these elements into all aspects of your plans, your brand will propel forward.”
Focus on the customer - Wade Allen | SVP Head of Innovation | Brinker International
“Restaurants and the Food Service industry provide customers a custom manufactured ‘product’ upon request, and deliver it within minutes of their order. Because of this unique position, restaurant Team Members, Managers, Chefs and Executives have years of knowledge on how best to deliver an amazing customer experience, in the moment, when it matters most. Delighting our Guest is in our DNA. We live and die by it.”
Employees are key - Ryan Ostrom | CMO | Jack in the Box
“In fast food the employees are on the front lines with the guests and truly own the experience. This applies to most businesses where your employees are really the ones representing your brand.”
While we’ve all learned over the past two years that nothing is for certain, there are some themes that have always existed and will remain at the core of every business: creating a convenient, catered, and pleasant experience for the customer and adapting with the challenges. The Restaurant and Food Service Industry is investing more heavily into differentiation and digital marketing to serve up the best service possible.
“Third party delivery, virtual brands/ghost kitchens, and robotics are changing the traditional restaurant world as we know it. I believe that all three of these innovations will be permanent disrupters for years to come.”
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