View
0
Download
0
Category
Preview:
Citation preview
1
COVID-19: What’s Working & What Will Become Part of the New Normal
2
International Foodservice Manufacturers Association
Vision
Enhance consumers
foodservice choiceEnable co-creation
of value with operator
Integrate manufacturer
resources/operator needs
Mission Objective
InsightsConnectivity Best Practices
Three Centers of Excellence
Today’s Guests From Kinetic 12 Consulting
3
Bruce Reinstein
Partner
Kinetic 12 Consulting
Tim Hand
Partner
Kinetic 12 Consulting
Coronavirus Impact on the Foodservice Industry
What’s Working &
What Will Become Part of the New Normal
Tim Hand Bruce Reinstein
Kinetic12 Consulting
May 5, 2020
Coronavirus Impact on the
Foodservice Industry
What’s Working &
What Will Become
Part of the
New Normal
Change is upon us
Innovation, creativity and
reinvention describe how
operators are reacting to the
COVID-19 crisis.
These are unprecedented times
and we expect some significant
revolutions in how operators
conduct business.
Let’s now look forward to what
might change.
1
Aggressive
Merchandising &
Promotion Tactics
2
New No-Touch
Food-Safety
Protocols &
Services
3
Focus on
Simplifying
Operations
4
New App
Modifications &
New Technology
5
Embracing
Employees
Differently
6
New Streams of
Revenue
7
Interacting with
Suppliers &
Distributors
8
Tighter Financial
Management
8 areas of operator change
Tracker: When Each State is Reopening Its Economy
Source: Morning Brew
Source: Morning Brew
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
1Aggressive Merchandising & Promotion Tactics
It’s not all about price• It will take more than a good price to
drive traffic and keep customers.
• Customers will evaluate options based on
a broader set of criteria including - ease
of ordering, pick-up and delivery options,
food safety and sanitization.
Telling a real story• We are going to be more discerning -
Consumers will become less accepting of
marketing “fluff-messaging” and look for
fact-based points of difference.
• Operators story needs to be real,
authentic and resonate with the
consumer.
1
2
1Aggressive Merchandising & Promotion Tactics
3
4
Family & Friends meals
• Family & Friends meal bundles will
become a standard - but it will be
limited to the most popular items.
• Operators will innovate and make it
easier to order for 2, 3 or 4, and have
built-in leftovers.
Meal Kits
• Cook at home restaurant kits - save
money and have fun creating and
cooking your favorite foods from your
favorite restaurants.
1Aggressive Merchandising & Promotion Tactics
5
6
Curbside pick-up & delivery of
two-three course meals
• Fine dining and polished casual will
accelerate their investment in take-out.
• Previous hurdles will be solved: the inability to
control food quality and presentation, the
lack of personal table-side service and the
lack of the dining room experience.
Groceries at Foodservice
• Express grocery will remain, to a limited
degree.
• Sale of proprietary restaurant items like
sauces, breads, frozen soups, beverages,
seasonings and even branded napkins can drive revenue.
1Aggressive Merchandising & Promotion Tactics
7 No more free delivery
and lower 3rd party
delivery fees covered
by operators • Free delivery will end and go back to
regular cost.
• Curbside will pick up steam as an
alternative to higher delivery charges.
• High 3rd party delivery costs will be renegotiated.
Kinetic12 Consulting
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
2Focus on Simplifying Operations
Restaurants will go back to their core
menus
• A “back to basics” approach will become the norm. Menus will be reduced.
• LTOs will need to drive traffic and incremental revenue - not simply be content for the next commercial.
Reduction of skus• Paring down skus will make it easier on purchasing,
receiving, and storage as well as reduce waste.
• Products will need to work harder - be incorporated into multiple recipes and creative LTOs.
Peeling off staffing layers• A move back to “multi-taskers” who are well
trained to handle multiple roles.
• This will allow an operation to run leaner and provide more flexibility in scheduling.
1
2
3
2Focus on Simplifying Operations
Practical packaging
• Effective, safe, multi-use take-out packaging
will take the place of cheap packaging.
• Dimensions of great packaging being
expanded - priced right + sustainable +
functional + tamper-proof.
Comfort food innovation
• Consumers retreat to comfort foods in
difficult times.
• Similar to the innovation explosion we’ve
experienced with hamburgers and more
recently with mac & cheese, other comfort
foods will be turned into successful, yet
simple innovation platforms.
4
5
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
3New No-Touch Food-Safety Protocols & Services
Frictionless curbside pick-up• Curb-side pick-up at virtually every full-service operation.
• Apps for ordering, payment, communication and pick-up with the goal of zero contact between patrons and staff.
Frictionless drive-through• Wide-spread adoption of no-touch protocols for
QSR/Fast Casual drive-through.
• App ordering, no-touch payment at the window.
Overt employee sanitization
practices• Expanded sanitization standards for employees.
• Overt cues of safe-handing/no-touch protocols - use of latex gloves, masks, dining room/bathroom sanitization practices, signs on tables and doors.
1
2
3
3New No-Touch Food-Safety Protocols & Services
Mandated sanitization practices
• Government mandates – e.g. spray down the
restaurants on a regular basis with a hi-grade
disinfectant.
• Regulations for glove usage as well as new training
requirements on sanitization and food handling.
Self-serve anything will become a
safety issue
• Existing self-serve condiments, beverages, and
touch-screen ordering - either go back behind the
counter or be redesigned to be no-touch.
• Buffets and salad bars will be re-thought or
disappear entirely.
• Portion control condiment use will increase but be
kept behind the counter.
4
5
3New No-Touch Food-Safety Protocols & Services
Sick employee protocols
• New rules for what constitutes being sick.
• Short term - temperatures taken before shifts
begin
Tamper-proof packaging
• Greatest areas of immediate operator
investment.
• The investment in tamper-proof packing
could result in an increase in the cost of the
order for delivery.
• Off-premise packaging will become a
differentiator and part of an operator’s brand
experience and no longer be viewed as a
cost to be minimized.
6
7
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
4New App Modifications & New Technology
New app functionality
• New app functionality - to help consumers
research and track sanitization and no-
touch protocols, to curb-side delivery, to
menu bundling services, to Foodservice
grocery shopping options.
• For employees, new sanitization and food
handling training functionality and heath
and sick-day trackers.
Self-serve ordering terminals
• Facial recognition and voice-driven
solutions to be eventually adopted in place
of touch-screen tech.
1
2
4New App Modifications & New Technology
Consumer order tracking• Our collective obsession with tracking orders
will be amplified by our new compulsion to
know who has touched our food.
• Amazon-like tracking in Foodservice delivery
and curb-side orders + videos of food being
prepared.
Sanitization tracking• Demand for information on an operator’s
sanitization practices.
• Tools to track sanitization and communicate to
consumers via apps, websites and in-restaurant
trackers.
• Cues to show consumers they are safe - table
tents that reads “this table has been sanitized”.
3
4
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
5Embracing Employees Differently
An entrepreneurial approach to
employee engagement• Expansion of “employee engagement cultures”
investment.
• It will be about the “team” and that includes
CEOs on down.
Hiring and keeping the best• A labor surplus has been created - but fewer staff
will be needed so hiring the best will be even
more crucial.
• Expanded benefits and perks offered, wages will
go back to being based on skillsets, handling
multiple stations and reliability.
1
2
5Embracing Employees Differently
A safe working environment• Foodservice employees have the same fears
and needs as consumers.
• Creating a safe environment for staff and
conducting on-going training will be crucial to
attracting and keeping people.
• New role - “sanitization experts”.
Being scorecarded by
employees• Staff will scorecard current and potential
employers on their sanitization and safety
practices.
• A new determining factor in where people
choose to work.
• Operators must consider the attractiveness of
their work environment.
3
4
5Embracing Employees Differently
5
6
Coming to work sick• Coming to work when you’re sick will now
be perceived as irresponsible.
• New policies will be published that clarify
what sick is.
• Short term - temperature checks ++
• PTO will be modified.
Shared employees
• The idea of shared employees, while not
new, has been adopted recently and is
working.
• We see the practice of holding “two-jobs”
becoming formalized.
• New partnerships between non-
competing restaurant operators and other
retailers.
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
6New Streams of Revenue
Revenue beyond dine-in• Curbside, delivery and drive-through will
play a crucial role for restaurant and
non-commercial growth moving
forward.
• Major investment and renovation to add
and expand these off-premise services.
Adding dayparts• Expanded daypart footprints - but
without complicating menus.
• Opportunity to “fill the gap” with other
nearby restaurants closing.
• Concepts that rely on one daypart (fine
dining -dinner only) will expand hours.
1
2
6New Streams of Revenue
Proprietary products • Proprietary / “signature items” will
become more common.
• Not just bottled dressings and hot
sauces, but proteins, breads and
beverages.
• Meal kits – to allow assembly at home.
Groceries• Buying groceries at a restaurant is a new
concept for consumers.
• This will continue - but in a way that
drives revenue with existing customers.
• Operators will continue to sell their
proprietary sauces and dressings along
with a limited selection of other items,
primarily pulled from the inventory they
buy for the restaurant.
3
4
6New Streams of Revenue
Ghost kitchens
• Expansion of the “Ghost kitchen”
concept - driven by delivery,
frictionless, cashless, lower
investment and requirement for
cheaper real estate.
• New hybrid-ghost-concepts -
double drive throughs and
curbside pick-up, where ordering
and payment is done prior to
arrival.
5
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
7Interacting with Suppliers & Distributors
“Best-in-class” partnerships• How do you define “best-in-class”
supplier today?
• Operator expectations will increase.
• Operators are under tremendous
pressure to survive - will not have time for
suppliers and distributors that are not
meeting their expectations or not being
responsive.
• Chain will lean on their top 5-10 suppliers
and further refine their expectations,
access and reciprocating value for
these strategic relationships.
• It will be a new world of collaboration -
greater trust, shared risk, and mutual
acceptance of what win-win needs to
be.
1
7Interacting with Suppliers & Distributors
Collaborative innovation• Innovation support is part of being best-in-class.
• Chains will be even more open to CI – smaller
teams and greater need for external thought
leadership.
• Product innovation, testing, cost savings ideas,
recipes, training, promotions, merchandising
support.
Flexible, quality ingredients• Operators will become more flexible in their use
of ingredients.
• Sku reduction, labor reduction, menu
simplification, cost management.
• Flexible, high quality products at a good value
that can be used to develop profitable items for
LTOs and permanent menu additions.
2
3
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
8Tighter Financial Management
Changing footprints & more
efficient floor plans• Restaurants will get smaller with more space
devoted to serving off-premise orders.
• Floor plans will be re-thought to
accommodate social distancing,
sanitization, frictionless and queuing.
• Expansion plans will be curtailed as
companies rethink store designs.
Real estate• Good real estate has been difficult to obtain
– this will change.
• Empty restaurants will be less expensive to
lease, and existing rents will be renegotiated
due to the surplus of real estate.
1
2
8Tighter Financial Management
Labor adjustments• There will be a hard look at labor costs -
excess will be eliminated.
• Staff will go back to wearing multiple hats. Productivity and efficiency will be paramount.
• “Doing more with less” will be the new operations mantra… but in order to do that, operators will need to simplify their businesses.
Differentiation re-defined • Differentiation will be based less on menu
breadth.
• There is too much added cost in the supply
chain and kitchen complexity.
• Instead, differentiation will be based on value, experience, exploration, convenience and safety.
3
4
1
Aggressive
Merchandising &
Promotion Tactics
2
New No-Touch
Food-Safety
Protocols &
Services
3
Focus on
Simplifying
Operations
4
New App
Modifications &
New Technology
5
Embracing
Employees
Differently
6
New Streams of
Revenue
7
Interacting with
Suppliers &
Distributors
8
Tighter Financial
Management
8 areas of operator change
This is an important time to
reexamine your business
Fast-Break: Post-CV Growth & Recovery PlanningNow is the time to plan your recovery
MANUFACTURERSWhat do you need to do now to
address your “New Normal” business
environment?
• Fast turn-around
• Two 90-minute on-line meetings
• Prioritized report
Benefits:
• Understand how the New Normal
impacts your plans
• Identify what to stop, start or change
OPERATORSWhat do you need to do to prepare for
your “New Normal” business environment?
• Fast turn-around
• Prioritized report
• 10-point assessment
✓ Safety/No Touch
✓ Supply Chain
✓ Revenue Streams
✓ Staffing/Productivity
✓ Footprint-Adapt/New
✓ App/Website
✓ Menu/SKU Adapting
✓ Brand Ambassador
✓ Innovation/ Differentiation
✓ Financial Management
Coronavirus Impact on the Foodservice Industry
What’s Working &
What Will Become Part
of the New Normal
Tim Hand
tim@kinetic12.com
Bruce Reinstein
bruce@kinetic12.com
1 Aggressive Merchandising & Promotion Tactics
2
New No-Touch Food-Safety Protocols & Services 3
Focus on Simplifying Operations
4 New App Modifications & New Technology
5 Embracing Employees Differently
6 New Streams of Revenue
7 Interacting with Suppliers & Distributors
8 Tighter Financial Management
Learn more about us at
Kinetic12.com
Live Conversations with Segment Operators (all at 11AM CDT):
K-12 on May 18
Healthcare on May 19
C&U on May 20
Small & Midsize Chains on May 21
B&I on May 22
IFMAworld.com – Information Hub
45
Register now at
IFMAworld.com under
the Events tab.
May 12 @ 2PM CDT: Innovation: The Key to Responding and Adapting
to New Business Realities
May 14 @ 2PM CDT: Business Planning Using IFMA Scope
Recommended