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How Restaurants Are Staying Open

CSSI Staff Post - April 22, 2020

How do we come out of this whole? The entire foodservice industry is asking this difficult question. Many restaurants have had to make very hard decisions about pivoting their business models to continue to provide revenue, resources and income to their staff, as well as to provide food to the communities. While delivery, curbside take-out and/or family meals might be a fit for some restaurants, not all operations are able to pivot successfully. Sharing out success stories—and some failures—is important to help the foodservice community learn and grow together during this time.

Why is adaptability important, especially during the pandemic? 

Remaining stagnant in a time of so much change is terminal. Understanding the strengths and weaknesses of your business model so you can adapt to the unseen future is paramount. On the other side of the pandemic, everyone will be looking at a new way of engaging. Delivery and take-out may still provide the largest source of consumer purchase. Customers will have higher expectations of how restaurants execute business. Clarity and transparency will be key. Additionally, consumers will want innovation. Restaurants need to continue to provide new options and change to their menus to stay relevant and on-trend.

What are some examples of restaurants that have successfully adapted their business to survive?

Pivoting to Take-out and Delivery – Red Robin has done a great job of adapting. Opting into what’s referred to as “native delivery” or “direct delivery,” the chain started offering “Red Robin Delivery” to save on hefty delivery commissions. It’s a win-win, as customers earn rewards and Red Robin captures integral user data.

Virtual Brands and Ghost Kitchens Dog Haus has stepped up their game in order to provide some relief to the revenue lost due to COVID-19. They are planning to launch The Absolute Brands: a series of brands designed to operate within the ghost kitchen space—a professional foodservice operation set up solely for delivery meals. Looking at their current pantry list, menu and previous successful LTOs, cofounders Vener, Riaz and Giragossian designed eight new concepts to fit. Dog Haus is able to maximize their digital presence and potentially engage with new customers in new dayparts.

Direct to Consumers with “RestauMarkets” – Some restaurant menus aren’t designed for the delivery space. In order to continue to operate, we have seen restaurants like Capital Grille offering raw steaks and sides for purchase to prepare at home.

Technology Hacks – Restaurants are using existing reservation platforms in a new way to reach their guests. Farmer’s Restaurant Group has remade their restaurants into markets. By using platforms such as OpenTable, they are able to schedule specific pickups for guests to buy goods. Reservation platform Tock has pivoted into an app designed for fine-dining restaurants to offer curbside pickup. Places such as Alinea and BOKA group are using Tock to provide fine-dining quality comfort foods at an affordable price. 

What has the pandemic taught us about adaptability and responding to a crisis? 
 
Good ideas can come from anywhere. A crisis of this magnitude affects everyone: CEOs, managers, hourly employees and beyond. When one opportunity closes, there is always more than one way to evolve. The foodservice industry, by nature, is comprised of some of the most forward-thinking and creative individuals—chefs, marketers, business entrepreneurs and go-getters, and they’re all digging in to find new ways to provide services.
Jess Bograd
Director of Culinary R&D
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