240. Menu Engineering for Profit

In recent years, third-party delivery services have become increasingly popular, with companies like Uber Eats, DoorDash, and Grubhub taking a large cut of restaurant sales. However, a new trend is emerging: restaurant takeout is starting to lead as the more popular model. There are a few reasons for this shift. First, third-party delivery services can be expensive for restaurants. They typically charge a 15-30% commission on each order, which can eat into profits. Second, third-party delivery services can harm the customer experience. Customers have reported issues with late deliveries, incorrect orders, and damaged food. Third, third-party delivery services can make it difficult for restaurants to build customer relationships. As a result of these factors, more and more restaurants are offering takeout as their primary delivery option. Takeout allows restaurants to keep more profits from each sale, giving them more control over the customer experience. It also allows restaurants to build customer relationships by collecting their contact information and sending them promotional emails and offers. Catering Comes Back The popularity of experiential catering: Consumers look for more than just a meal when they cater an event. They want an experience that is both memorable and delicious. This has led to the popularity of experiential catering, which offers guests interactive and engaging food experiences. For example, a caterer might set up a pasta station where guests can watch as their pasta is made fresh to order. The rise of sustainable catering: Consumers are increasingly concerned about the environmental impact of their food choices. This has led to a demand for sustainable catering options which use local, organic ingredients and sustainable practices. For example, a caterer might source their ingredients from local farms and use compostable plates and utensils. The growth of mobile catering: Mobile catering is becoming increasingly popular, as it offers a convenient and flexible way to cater events. Mobile caterers can bring their food to the event, eliminating the need for guests to travel to a restaurant or banquet hall. This is an excellent option for events held in remote locations or with limited parking. One company helping restaurants improve their digital and catering sales is Figure 8. Figure 8 is a team of hospitality management consultants who turn off-premises into profit. We empower restaurants and other food-related ventures through sustainable delivery system design and implementation. From integrating the right tech stack to improving your profit margins, and everything in between, we make it happen. In this interview, we discuss the challenge of brand value when delivery has gone bad and the lasting effects of this customer experience could be one of the most costly things a restaurant is hit with.