June 26, 2019 June 2019 Industry Round-Up: The Latest Bar and Restaurant News
Does your restaurant or bar appeal to Instagram influencers and local celebs? Congratulations, you may be benefiting from “the snob effect.” That’s good news if you’re charging premium prices, because customers are more than happy to pay them according to the latest research.
We also dive into what’s keeping mobile adoption rates low in North America and how QSRs are leveraging technology for better customer service – along with even more tidbits from the latest bar and restaurant news.
So, grab a drink and let’s jump into the latest bar and restaurant news for June 2019…
The Snob Effect: Why Customers Pay Premium Prices at Restaurants
According to bar and restaurant news from the International Journal of Hospitality Management study , customers are more than willing to pay more for food and drinks at certain venues.
Findings showed that variables described as the “snob effect, bandwagon effect, and hedonic (pleasure) effects were identified as influencing prestige consumption.”
Basically, according to this bar and restaurant news, a combination of the desire to display wealth and success, try the latest trends, and a “treat yo-self” mentality all drive customers to whip out their wallets and pay a little extra.
If you want to add a little snob appeal to your restaurant or bar, start by getting on the radar of the movers, shakers, and influencers in the bar and restaurant world – use these tips to improve your Instagram presence. You should also look for ways to incorporate emerging trends onto your menu.
Mobile Payment Adoption in North America: Why Aren’t More Customers – and Restaurants – Using It?
Mobile payment options have been a big deal in bar and restaurant news over the last few years. Since it burst onto the scene, more and more organizations and customers are adopting mobile payment worldwide.
While consumers across the globe are opting for mobile payment at quickly increasing rates, the U.S. and Canada are lagging behind with only 17% adoption rate in America and 14% in Canada. That’s compared to 38% in Mexico, 56% in India, 23% in Africa, and 38% in the UAE.
So, what gives?
According to recent research, it could be the abundance of electronic payment options in the U.S. and Canada. Customers may be getting overwhelmed, and just sticking to what they know: using their credit cards or cash.
After reviewing several other studies on the subject, researchers found that our strong financial infrastructure and stricter financial laws could be contributing to the slow adoption rate of mobile technology.
More research needs to be done to determine how to get those adoption rates up in North America, but it’s a great insight for bar and restaurant news when deciding on payment options.
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Ring My Bell: QSR Industry Evolves Customer Service with Technology
For a few decades, QSRs have been struggling to compete with fast-casual dining brands that are flourishing. Hence, more and more QSR’s are evolving their customer service by incorporating tech solutions to streamline operations and help employees do their jobs more efficiently.
As the name suggests, QSRs are about quick service and convenience—two things that tech can help with. And after incorporating tech solutions at table-level, some QSR brands are seeing a surge in sales.
For example, Chick-fil-a adopted Kallpod, a tech-bell service to notify servers when a table needs assistance. The Kallpod has driven a huge increase in guests ordering more chicken—or dessert—without leaving their seats. So, this bar and restaurant news is just more proof that tech could be the key to boosting your restaurant’s bottom line.
How Interactive Technology Could Get Guests to Pay More
Interactive technology has been a pretty big buzzword in bar and restaurant news over the last few years. But how can it help other areas of the hospitality industry, like hotels? To answer this question, a recent study from the International Journal of Hospitality Management explored what drives unplanned spending for consumers at hotels.
The study revealed what we’ve seen in bar and restaurant news for years— that marketing factors blended into interactive technologies (like digital signage and handheld entertainment tablets at the hotel bar) have a major positive impact on consumer spending.
This study revealed that interactive technology isn’t just fun—it’s a consumer need that drives them to spend more.
Menu Innovation Requires Unique Concepts and Predicting Customer Needs
Giving customers what they want isn’t a new concept in bar and restaurant news. In fact, it’s the driving factor of success for most businesses.
But according to recent research, the restaurant industry should incorporate both customer needs and product innovation to develop technology that is competitive in its field.
This study explored the different factors that come into play when developing new technology and products for restaurants—specifically, menu innovation. And what it found was that while radical innovation (creating a completely new concept) is the surest way to score a successful product, incorporating the feedback and needs of customers also played a significant role in how technology is developed.
It’s not surprising in bar and restaurant news that customers want more technology—but according to this study, anticipating customer needs could be a better strategy for success than simply responding to them.
Industry Shake Up: World’s 50 Best Restaurants Announces Rule Change
Starting in January of this year, the World’s Best 50 Restaurants leaders announced in bar and restaurant news that the list will no longer feature repeat winners in the number one spot.
As opposed to holding the top spot for several years, prominent restaurants will now be featured as number one only once.
The decision faces some controversy but is in response to past criticisms about how the recipients were selected for the number one spot. While most chefs wait anxiously to see themselves at the top in bar and restaurant news, other see the list as a popularity contest that favors trendy new chefs over those who’ve practiced and perfected their craft for years.
Also, the misrepresentation based on gender and region makes restauranteurs wary about the fairness of the selection. Only a handful of restaurants outside of the U.S. and Europe have won the prestigious number one title—and even fewer were establishments owned by women.
Not to mention that the world of restaurant ranking is evolving due to social media and site reviews, making consumers and restaurant owners question the relevance of expert rankings. In the face of this controversial decision, it will be interesting to see what impact the prestigious list will have on bar and restaurant news moving forward.
Major changes keep things interesting in bar and restaurant industry news, and we look forward to how these new studies and technology will change the game for restauranteurs everywhere.