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When you own or manage a restaurant, customer satisfaction at the end of the meal should be a top priority. Of course the food is key, but there are ways to enhance the overall experience, and technology can be a great help. QUASEP takes a look at the possibilities. 

Any restaurant operator knows how great it feels to see a customer walk out delighted with the experience. In today’s highly competitive restaurant industry, customer service is more important than ever. Gone are the days when service meant no more than providing a pleasant experience. To be successful, restaurant operators today need to anticipate customer needs and desires. But how far should they go to please customers?

Customer loyalty

A simple satisfaction survey at the end of a meal is no longer enough. Offering rewards to your first-time guests, for example, will make them want to come back. Loyal customers can be given a free product or a discount on the menu. Get creative! Loyalty programs are also a great word-of-mouth marketing strategy.

Building customer loyalty in the restaurant industry is about personalizing not only the experience, but the brand message. Customers are looking for more than products—they want a brand whose message and values align with their own.

Understanding your program members’ preferences will help you optimize your product offering based on customer habits. With the increase in digital transactions, customers are seeking more personalized interactions in their everyday spending. In other words, a personalized experience is becoming a key factor in building loyalty—encouraging customers to come back and spend more at your business.

Recognizing your customers

These days, everyone wants the VIP experience. How can you make customers feel not only welcome, but recognized? Technology can help you collect information about them, so you’ll want to use this tool as efficiently as possible. Customers want to be recognized. Why not indulge them? Show them you know their habits, new menu items they might like, what they don’t like, or what they’re allergic to. Nothing makes customers happier than feeling that you care about them and that they can trust you.

Think of all the interactions you have with your customers. Understanding individual customer behaviours, tastes and preferences will allow you to optimize your menu and promotions. Every touchpoint becomes a personal experience, creating a mutually beneficial relationship. Why not offer each customer a personalized menu?

Spring Trends: Cold Drinks Are In!

With spring finally here, consumers are putting down the hot beverages, opting instead for flavoured water, vitamin water, energy drinks, cold brew coffee and non-alcoholic cocktails. QUASEP takes a look at the trends.

Cold drinks are a great way to drive sales and, from an operational standpoint, are very convenient. Quick to prepare and serve, they’re a major advantage in today’s labour shortage.

Many of these beverages come in cans or ready-to-drink containers, a format in high demand among today’s busy consumers who seek convenient products on the go.

Cold drinks are also a very broad category. Classic soft drinks and traditional orange juice are out, and a whole new range of products has replaced them.

A fast-growing market

The market has shifted its focus to health as consumers become more concerned with healthy eating and reducing sugar intake. 

Most brands are introducing products with little to no carbohydrates, while others boast “natural” ingredients such as echinacea, green tea, ginseng and guarana.

Water in its many forms is also on the rise, with more and more consumers aiming for the two-litre daily intake recommendation. But people want more than plain water, as shown by an increase in vitamin water sales, for example.

Despite these health trends, energy drinks remain at the top of the non-alcoholic beverage category.

Evolving trends

As consumers constantly seek out new products to try, businesses need to be adaptable to change. Pepsi and Coca-Cola are a prime example of major brands in a perpetual race to reinvent themselves.

The abundance of cold drink options gives consumers a convenient shopping experience, but for companies, it can be a challenge to navigate. Trends are often very short-lived, and brands will need to tap in quickly to reap the benefits.

If we look at alcohol, over the last three years, the trend has shifted from hard seltzers—flavoured sparkling water with alcohol—to flavoured, malt-based alcoholic beverages. 

Non-alcoholic cocktails are also popular, especially with younger consumers, who are showing a rising interest in the annual alcohol-free February challenge.

What to watch for

Another trend to look out for? The iced tea market is expected to grow. Tea is the world’s second most widely consumed food-and-beverage product after rice, and its iced version is becoming an increasingly popular choice.

In the meantime, this summer is sure to bring back slushies—a seasonal staple that always keeps people refreshed.

Highlight: Trends are often very short-lived, and brands will need to tap in quickly to reap the benefits.

After an enduring labour shortage accentuated by the pandemic, the restaurant workforce seems to be making a gradual comeback. But how skilled are these workers? QUASEP takes a closer look.

The unemployment rate in Canada has risen, resulting in a higher number of workers on the job market. This is a boon for the restaurant industry, which has struggled with staffing since losing many of its skilled workers during COVID-19.

Old hands are coming back, but the industry is also taking in many new, inexperienced workers—many of whom aren’t up to the same standards, or lack the necessary skills altogether.

During the pandemic, culinary schools were struggling to attract students, and classes were far from full. Many applicants show great interest in the job but lack the necessary training and skills. Their knowledge of the industry is often limited to cooking shows and competitions.

Reality check

These candidates may love to cook at home, but that doesn’t mean they’re ready for the fast-paced environment of a restaurant kitchen, or the rigour that comes with working on a kitchen crew. They’ll need more than culinary or service-related skills—restaurants require discipline, punctuality and much more.

More and more, managers are seeing staff members cancel their shifts at the last minute, miss work for personal reasons, or show up late after staying up all night.

“Today’s chefs are somewhere between the last generation, which valued a culture of violence and authority, and today’s generation, which no longer takes work seriously,” said an anonymous Montreal chef.

Continuing education

But in the wake of a growing labour shortage, can we really turn down these qualified candidates? We really can’t, because at the end of the day, businesses need to keep running. Just remember, whether it’s your front-of-house or back-of-house staff, your workers represent your business, and you need to do everything you can to help them improve.

This might mean focusing on training, setting aside time and money for new team members. Set up an efficient, supervised training process, giving your more senior staff a sense of responsibility and your recruits a support system.

There are a number of resources available, from Restaurants Canada webinars to reports by the Conseil québécois des ressources humaines en tourisme (CQRHT). You’ve got to start learning somewhere, even if it’s in your own restaurant. And we learn by doing!

Highlight: “Many applicants show great interest in the job but lack the necessary training and skills, their knowledge of the industry often limited to cooking shows.”
 

For businesses seeking to promote their brand and attract new customers, the catering trend is an attractive option. It’s important, however, to know the key steps and to formulate a strategy. QUASEP explores the subject.

Offer your product off-site. Catering services are typically brought to different locations each time, for example to a hotel, park, film set or reception hall, or any event space. 

Some companies now offer full catering packages for business meetings, birthday parties or other special events. Is this a good market to tap into? Many restaurant operators are exploring it as a way of diversifying their businesses.

The trend has taken off in the US in recent years. From breakfasts and sandwich boxes to hot bars, some restaurant chains are promoting their on-demand catering services, where customers can order a menu and have it delivered to an event at a specific time.

All types of food businesses have entered the catering market, from fast-food chains to fine-dining restaurants and even large grocery retailers, each one playing to its strengths. Meals from outside the home has become the norm, and consumer needs have to be met. 

Catering requires planning
 
Alongside food delivery, catering is a way of attracting a different type of customer. Why not sell boxed lunches to the start-up around the corner?

The first step is to assess what you can do with the resources you have. Offering too many products without any real guarantee of quality is counterproductive. The important thing is to stand out by being creative and offering an innovative service. Remember you’re not the only option on the market!

Being responsive to customer requests is almost as important as the quality of the product itself. When it comes to variables outside your company’s control, such as last-minute guest additions or schedule changes, being adaptable is crucial.

Whatever type of catering you choose, you’ll need to know your target clientele. Some services allow for more freedom, while others require more organization. Be sure to factor your strengths into your decision!

A restaurant’s earnings don’t depend solely on the number of customers. Smaller spaces may limit seating capacity, but they also limit expenses. When it comes to profitability, what’s the ideal restaurant size? QUASEP explores the question.

The current small-is-beautiful trend applies to restaurants as much as any other industry. We’re seeing a resurgence of cozier layouts, from small sandwich shop–style spaces to izakaya-inspired Asian restaurants. 

A number of chains and family restaurants are also moving towards an express model or opening smaller spaces without table service. Specialty restaurants are also on the rise, including counter-service chains such as Sushi Taxi.

On the high-end side, we’re seeing an emergence of mini-restaurants that offer single prepaid tasting menus to dining areas of around 10 seats. This format offers customers a more intimate experience with the chef and wait staff.

Lower costs

Small-scale restaurant concepts offer a number of benefits, starting with the economic aspect. A smaller space means a lower initial investment, making bank loans more accessible.

It also means less money spent on equipment, furniture and the space itself—rent being the third-highest expense for restaurants. Along with rent come fixed costs such as heating and insurance, which are proportional to the size of the space. For restaurants that are closed multiple days per week, these costs can be a real burden.

From an operational standpoint, smaller restaurants are easier to manage and require fewer staff members—a major advantage given the current labour shortage. 

Simply put, it’s better to have a small restaurant that’s too full than a spacious one with empty seats. Restaurant operators with a strong business model and healthy profits should focus on maintaining their formula instead of feeling the need to expand.

Bigger is sometimes better

Larger spaces do have their advantages. There’s no denying that a higher-capacity restaurant can—and should—be more diversified in its menu and concept, for example with catering services and takeaway meals.

Offering variety is harder for small restaurants, which are better off focusing on a single concept and developing a specialized menu.

Whether your restaurant is small or spacious, you’ll want to be sure you have a solid business plan and sound management practices. Get informed, weigh the pros and cons, and crunch the numbers. Restaurants are about much more than cooking. They demand real business intelligence.

Highlight: Better for your restaurant to be small and full than spacious and empty.
 

For restaurant operators, menu pricing is becoming an increasingly complex task. Food costs are just one of many factors to consider. The QUASEP team has taken a close look at the issue.

Simply doing things as they’ve always been done is no longer an option. Changes in the economy and in consumer behaviour, payment technology and tipping practices are all important factors when it comes to menu pricing.

Food costs are of course the most important variable in the spreadsheet. It may be tempting, but simply multiplying these numbers by three is no longer a solution, as it reveals nothing about the real-world selling price.

Overhead costs

Overheads such as rent and labour often end up at the bottom of the spreadsheet. Although considered fixed, these costs have become more variable in recent years—and will only continue to rise.

In the last two years, some Quebec businesses have seen rents more than double—hardly a negligible increase. When it comes to paying your staff, you’ll need to anticipate regulatory wage increases. Think carefully about how to provide good working conditions, and you should have no problem meeting the requirements.

The costs of delivery and takeout

In a December 2023 Doordash report, 78% of Canadian consumers said they picked up takeout during that year, while 58% said they ordered food delivery. Even when dining at a restaurant, many customers will ask to take leftovers to go.

These new consumer habits generate additional costs that shouldn’t be overlooked. Delivery packaging costs need to be accounted for in one way or another, not to mention the fees that come with using US-based delivery platforms.

Don’t forget tips

Point-of-sale terminals have come a long way, and customers can now make contactless payments with their credit or debit cards. Be sure to account for the associated fees. Tipping systems can also affect profits, along with inherent additional costs such as employee benefits.

The important thing is to keep costs under control and expect the unexpected. Have you put enough thought into your menu prices? 
 

Restaurant chains are expanding internationally, with many entering the Canadian market. As an independent business, what can you do to compete with these powerful global brands? QUASEP offers some insight.

When a small local restaurant closes its doors, a new chain location opens. In Canada, we’re seeing Popeyes, KFC, Johnny Rockets, Jersey Mike’s, Firehouse Subs and Jimmy John’s, to name a few, all operating under parent companies such as Inspire Brands and Foodtastic.

These chains typically enter the Canadian market through Ontario, testing the market in cities such as Toronto before expanding into other provinces. This was the case with Pret A Manger, which partnered with A&W to open its first location in Ontario’s capital this past January.

Food trends are a key factor. Chick-fil-A, the largest fried chicken chain in the U.S., is capitalizing on the recent craze for its star dish, and breakfast chains are booming as the morning daypart continues to rise in popularity.

Vacant spaces

Chains entering the market are taking over vacant spaces left by independent restaurants forced to shutter during the pandemic. From inflation to labour shortages, the industry has seen its share of challenges.

From a financial standpoint, it’s much easier for larger, well-established brands to secure bank loans and open new locations than it is for smaller independent businesses.

Major chains have the added advantage of being backed by large parent companies with proven track records. Restaurant groups provide assistance with hiring, operations management and on-site procedures, giving chains a significant edge over any independent.

Internal competition

By now, independent restaurants are well aware of the threat posed by major chains. To survive, they’ll need to improve their organizational structure and adopt a solution-based approach rather than blame the enemy.

In the meantime, these major restaurants are competing with each other’s concepts, whether fried chicken, iced coffee or burgers, while offering similar meal segments and price points.

A major challenge for international chains entering the Canadian market is to meet customer expectations. It’s not about reproducing a concept that works somewhere else, but adapting it to the existing local landscape.

So, who will come out on top?

Highlight: Chains are taking over vacant spaces left by independent restaurants.

Hotels, restaurants and institutions are seeing a shift in customer preferences, spawning new ideas on how to move the industry forward.

Customer profiling is the watchword for the hotel industry. Profiles are evolving as more and more travellers combine work and leisure, tacking on extra days to their business trips to do some sightseeing. For hotel operators, this means incorporating more practical workspaces into room renovations, or setting up quiet, secluded spaces in common areas.

Save time—and space!

It’s time for restaurants to say goodbye to paper. Simply provide QR codes on the tables, and customers can open the menu on their smartphones. This method has a number of advantages. First, it’s more eco-friendly, and second, it offers a contactless, germ-free option in a post-pandemic world. It’s also faster—a key factor when it comes to hospitality—since 

Wellness is another trend on the rise, with 41% of Quebec customers seeking these services when staying at hotels, and more than a third looking for transportation to local wellness centres, according to a study by Leger for Quebec’s hotel association, AHQ. If setting up a spa area or having a massage therapist in the hotel isn’t an option, consider partnering with a nearby spa and offering packages.customers won’t have to sit and wait for their menus. This will free up time for your staff, making your business more efficient. Be sure to keep a few printed menus on hand for customers who want them or who don’t have a phone.

In 2024, we’re not only saving time, but making better use of space. Patios, which have become standard since the pandemic, should be optimized this year. Add as much seating as possible, and extend your patio season with heaters, retractable roofs and fire pits. Some restaurants are even installing domes or bubbles, offering customers warmth, privacy and a view of the sky. Not only does this add a few weeks to your outdoor dining in the fall, but it provides shelter on rainy summer days.

Local, local, local

More than ever, people are expecting local products from restaurants. Food served in hospitals, schools and retirement homes is no exception. With the help of government programs such as SNAAQ—Quebec’s strategy for purchasing local food—and Ontario’s Local Food Act, institutions are opting for Quebec-sourced products. Despite the enormous volume of meals served daily in these institutions, the sector’s targets for local food continue to rise.

And what’s more local than a vegetable from your own garden? Market gardens are springing up at schools and other institutions, used not only to supply fresh produce but to raise public awareness. These spaces are a great way to teach market gardening and promote healthy eating. In 2024, it’s time to get our hands dirty!

Do your customers remember you? It’s up to you to remind them you exist and to keep them coming back. Here’s what you need to know.

Customer loyalty should no longer be the focal point for your business. Instead, you’ll want to promote your latest offers. These days, people aren’t going to restaurants for a surprise; they’re deciding what they want to eat and then choosing a place that has it. And there’s no shortage of competition.

According to François Pageau, restaurant management lecturer and researcher at the Institut de tourisme et d'hôtellerie du Québec (ITHQ), the key factors are localization, marketing, merchandising, the launch campaign and, above all, food and service quality, layout, decor, and ambience.

Offer a memorable experience

You might serve the best food in the area, but that’s not the only thing that will make your restaurant popular. It’s important to consider other aspects of your restaurant and create a harmonious customer experience. Your restaurant’s physical features are crucial, as they reflect both the credibility and functionality of your space.

In an age when we’re constantly bombarded with all kinds of images, your restaurant’s appearance matters more than ever. A unique visual identity is key to your success. Decor not only adds personality to your restaurant, but it forms a crucial part of the dining experience. Think of it as your way of introducing yourself to customers.

Restaurant operators need to ensure the ambience they create is in line with what customers want. This becomes an effective strategy for attracting customers, and can help you segment the market and determine the right atmosphere for your restaurant. And a unique experience is what will keep customers coming back.

Engage with customers

Customers love talking about the restaurants they’ve tried, whether on review sites such as Google and Tripadvisor, or when talking to friends and family. Don’t dismiss what people are saying about you. Showcase it! Using social media to communicate and interact with your customers will pay off. Your restaurant’s online presence has a significant impact on reservations and sales. It’s a virtuous cycle.

As prices continue to rise, restaurants have no choice but to adapt. For many, attracting customers in times of inflation and economic crisis is a major challenge. Offering deals can be a great solution. QUASEP will guide you in putting together the best proposal for your customers... and for you!

How can you draw customers with your prices without eating into profits? That’s the burning question for today’s economic climate. Options vary based on the type of business and its clientele, but for restaurants, the important thing is to be creative.

Major fast-food chains are often the innovators for this sector. Take a close look at their menus, and you’ll notice they’ve been evolving in recent months. Without cutting into profits, chains are selling more snack-type products, while promoting smaller portions on billboards and online.

Not-so-special specials

More and more, we’re seeing multi-buy promotions, which take away the notion of price per product. Businesses need to create an offer that fits their customers’ purchasing power. Of course, this power has been reduced by overall price hikes, but customers are still looking to spend on things they want—things you can provide.

Panicking and offering ridiculous deals to attract customers at the expense of profits is not the solution. In more economically prosperous times, this may have been an option, but not anymore. In other words, two-for-one deals or double-digit discounts do nothing more than delay already-dwindling profits. Instead, find long-term solutions that keep up with ever-changing demand.

The art of creating offers without losing profit

The first step is to analyze your menu. Where do you make the most profit? Promote your best-selling items. Thinking this way will help you maintain your margins without significantly reducing your profitability.

Menu prices need to be carefully selected. Simply looking at material costs is not enough. Based on your target market, you’ll need to strike the perfect balance between what customers are willing to spend, and the margins you need to stay profitable. Create the right dish for the right price.

Knowing how to act based on the strengths and weaknesses of your business is a daily challenge. Poor-selling menu items can be a major contributor to food waste, and therefore reduce profits. A strong menu leaves no room for unpopular dishes. It can also help streamline your staff’s work, minimize labour requirements or even reduce the time and resources needed to train new employees.

Uber Eats has released its fifth annual Uber Eats Cravings Report, featuring the top delivery trends for 2023. What were this year’s most popular items? Which ones are on their way out? QUASEP will break it down.

In 2023, people aren’t settling for simple fast food. From coast to coast, the most popular delivery dishes include a wide range of cuisines, with American, Japanese, Indian, Chinese and Italian at the top of the list.

Canada’s big cities also tend to eat more nutritionally balanced dishes. Uber Eats users in Montreal, Ottawa, Kingston, Toronto and Vancouver were the most likely to go for lower-calorie options. Even when grabbing a quick bite or skipping out on cooking, city dwellers are clearly committed to healthy eating.

In the US, as people head back to the office after the pandemic, many customers are asking for no onions to keep their breath fresh. Rosé wine is also on the decline, with users opting instead for light reds and whites, even during the summer months.

More than just restaurants

While many customers are ordering from a wide range of restaurants, more and more are using Uber Eats to shop from grocery or convenience stores. The platform isn’t just for hot, ready-to-eat meals—it also delivers everyday household items. In the US, the most popular items in this category were toilet paper, emergency contraceptive pills and COVID-19 tests.

Delivery trends are also showing a shift away from conventional mealtimes. Customers are satisfying their cravings with popular convenience-store snacks such as hot dogs, taquitos, slurpees, chocolate milk, chips, ice cream, popcorn, pepperoni pizza, candy and brownies. In the US, there has been an increase in late-night orders between midnight and 4 a.m., mostly from students. Businesses can take advantage of the trend by offering food 24 hours a day via delivery or vending machines.

Canadians used the platform to stock up on booze, with beer, vodka and whisky at the top of this year’s list, followed by Pinot Grigio and margaritas. In provinces that allow it, selling alcohol via delivery—in addition to serving it to dine-in guests—can be very profitable.

The most popular grocery items ordered through Uber Eats were fruits and vegetables, along with eggs and bottled spring water. Delivery platforms are expanding beyond ready-to-eat meals to include more raw ingredients.

Highlight: Delivery services are not just for restaurants.
 

What’s the optimal kitchen design for your business? What should you focus on and what should you consider before taking action? QUASEP will help you invest in the right places, whether you’re redesigning your kitchen or starting from scratch.

First, you’ll need to choose the right equipment for your restaurant. Gas or electric power? Where will you put the ventilation? What are the dimensions of your future kitchen? These initial decisions are key, as it’s very difficult to make changes down the road, said Guillaume Lussan, Project Department Director at Doyon Després, in an interview.

If you’re buying out an old restaurant, you may not need to design your kitchen from scratch, since you’ll likely be using similar equipment. You’ll probably just need to change certain details, such as the dinnerware, and add a few specialized appliances based on the food you’re selling.

Since the pandemic, more and more farmers are opening their own kitchens to prepare dishes and sauces directly on the farm. Equipment originally designed for industrial use is now being adapted for the commercial sector. This has made it easier, not only for market gardeners but also for restaurants and grocery stores, to process products on site.

Versatility and durability

As prices per square foot continue to rise, it’s a good idea to optimize your space with versatile equipment. Wherever possible, opt for multifunctional appliances to increase your efficiency and keep costs down.

Open kitchens are a popular choice for restaurants that want to showcase their process. In other cases, you’ll find closed kitchens, tucked away from the dining area. A growing trend is the dessert refrigerator, where you can entice customers by displaying your products.

When it comes to equipment, some may be more affordable up front, but it’s important to consider quality. A more expensive item could bring you a return on your investment by helping you save significantly on maintenance.

Ask yourself how long you plan on using it. One year? Three years? Fifteen? Remember that solid used equipment is often more worth it than a brand-new cheap appliance. For instance, a more efficient fryer will cost much more up front, but will save you money by consuming less oil. It’s important to weigh the cost of your investment against the amount you could save in other areas.

If you’re on a limited budget, however, it’s best to spend less on your future kitchen’s design and equipment, focusing instead on construction costs.

Highlight: Start with your initial infrastructure, calculating your costs and expected returns.