Insights Archives - Revenue Management Solutions

Unit level financial data eases mounting pressures for franchised brands

As people become vaccinated and restrictions are eased, consumers are eager to return to dining out. While the restrictions of the past year may be lifting, the pressures on operators, franchisees and brands are not. Food and labor costs are rising. Supply chain...

Your top restaurant pricing questions answered

At RMS, we field a lot of questions from our clients. In the past 12-15 months, our clients have had new concerns, brought forward by reduced menus, an increasing number of digital channels, labor shortages and supply chain issues. But no matter the environment, one...

Restaurant consumer update: Are we happy yet?

In May 2020, RMS fielded a survey to assess consumer dining behaviors and perspectives during COVID-19. At the time, no one could have predicted we’d be at this for more than a year. But RMS adjusted, as we all did, and transformed a one-time COVID check-in to a...

9 Ways Restaurant Operators Can Adjust to What Will Be

There’s no denying COVID-19 has brought many firsts and rapid change. For most, it’s the first crisis that has shifted the lives of everyone on the planet, all at the same time. The disruptions in our collective social environments and lifestyles have been...

The Impact of COVID-19 on Restaurant Consumers

2020 has been called the “year of irrevocable inflection” for the restaurant industry. We agree and have expanded our data collection to support our clients and the industry as they manage rapid change. Most pointedly, we’ve checked the pulse of consumers with...

RMS research explores how casual restaurants can use their menu to capture the new digital consumer

More than half of all quick-service and limited-service restaurant sales will be digital by 2025, according to market research firm Incisiv. Is your menu ready? As digital sales rose like a rocket ship this past year, the use of printed menus shot down in the opposite...

The impact of plant-based foods on restaurant recovery

While the chicken wars flocked to new heights this year, another burger alternative is quietly growing its share: plant-based proteins. Not confined to a drive-thru sandwich, the category encompasses a wide range of grocery and restaurant options, including nut and...

How the stimulus package will impact your sales: a nuanced approach

As the U.S. House of Representatives works to advance its $1.9 trillion coronavirus relief package, it’s safe to say that the bill’s passage would positively impact restaurant sales. After all, if passed, the bill would grant individuals up to $1,400 directly and...

Minimum wage increases: 4 tips to help restaurants brace for what’s next

In 2020, 21 states raised their minimum wage. On New Year’s Day 2021, 20 more states did the same. Five additional states (Connecticut, Delaware, Nevada, Oregon, Virginia) and the District of Columbia will follow suit over the coming months, in addition to Florida’s...

A Look at 2021 Minimum Wage Increases

In 2020, 21 states raised their minimum wage. On New Year’s Day 2021, 20 more states did the same. Five additional states (Connecticut, Delaware, Nevada, Oregon, Virginia) and the District of Columbia will follow suit over the coming months, in addition to Florida’s...

Restaurant industry update: UK edition 2021

We don’t yet know the long-term impacts of the COVID pandemic on the global restaurant landscape. And, in the UK, the bruised and battered industry is being hit by a second, potentially much bigger wave: Brexit. We checked in with our London-based Managing Director...

Drive-thru traffic isn’t stopping: tips for getting your share

In the most recent episode of Revenue Stream, Revenue Management Solutions VP of Consulting Services Chris Norton and Director of Behavioral Research Dr. Christina Norton talk about drive-thrus and restaurant loyalty trends. What can restaurants do to stay relevant...

Restaurant consumer trends in dining 2021

2021 Forecast: Cloudy with a strong chance of in-home dining Product developers and differential calculus buffs have a term: forcing function. The term refers to a function in an equation or system that forces conscious attention upon something. In calculus, it...

4 tips for managing consumer expectations and staying on top of restaurant trends

Last time, we reported on a December webinar that laid out what investors are thinking for 2021. This week: what’s top of mind for consumers. Senior Food and Drink Contributor for Forbes.com Alicia Kelso hosted the panel discussion, which invited Nicole Miller Regan,...

What Consumers and Investors Think About 2021: A Power Panel

Back in April, a month into COVID restrictions, collectively we imagined that things would return to normal in a few short weeks. Like an overstretched rubber band, we thought we’d snap back. We weren’t quite right. What has stretched? Our creativity, our tech...

Restaurant Update from Asia

In April, RMS reported on the state of restaurants in Asia. Now, seven months later, it’s time for an update. For the sake of this article, we’ll focus on Korea. Unlike the U.S. and Europe, Korea has not had any mandatory shutdowns of restaurants during the pandemic —...

Family dining and the holidays, pandemic edition

Back in May, we interviewed diners across the globe and asked them about family dining. We asked heads of two-parent families with two children ages 6-12 to answer the question plaguing the industry at the time, which remains relevant now: What will it take for...

Predictive Analytics and The New Reality

At the recent MURTEC Restaurant Next event, RMS Chief Strategy Officer Joel Davis shared his views on using data to enhance customer service, loyalty and revenue. Davis, who leads RMS’ analytics and data strategy discipline, shared insights on WHY and HOW data...

2021 Planning: Financial Data will Repair the Cracks

In a recent TED Radio Hour episode on resilience, Esther Perel stated, “a pandemic, a disaster, highlights the cracks. It will also reveal light shining through.” While she was speaking to interpersonal relationships, her analogy also applies to our business, which is...

Should your restaurant be considering a subscription program?

More than six months into the COVID-19 pandemic, the restaurant industry has been put to the test — and achieved previously unimaginable evolution at a previously unthinkable pace. Operators have coped with a complete revamping of day parts such as breakfast and...

Temporary disruption or here to stay? 5 restaurant trends to include in your recovery plan

To stay alive during the pandemic, brands, owners and operators have had to adapt. Many restaurants found it necessary to kick long-term plans into immediate action, such as adding drive-thru, while many made changes no one ever would have anticipated — fine dining...

Restaurant Pricing in the Time of Corona

“Should I take price?” has been the primary question from our restaurant clients of late. Our answer, surprisingly, remains the same now as it was pre-COVID: “That depends.” We remain in the midst of the greatest challenge the restaurant industry has ever faced. Yet...

How to Improve Restaurant Margins With Better Delivery Pricing

Delivery is on everyone’s mind right now. Restaurants traditionally oriented towards dine-in, have made significant moves to implement delivery options. As restaurants expand this contactless channel, they face a complex environment with higher costs to serve....

More take-out & delivery, hold the breakfast. How singles and families are dining today.

COVID-19 has had a lasting impact on families, and particularly on how, what, where and when to eat. Whether it is the decision to have a meal delivered or pick it up through the drive-thru, eat breakfast at 8 a.m. or 11 a.m., try out the neighborhood restaurant’s new...

News from Europe: What does the restaurant industry look like now?

In June, RMS Managing Directors Philipp Laqué, based in London, and Nicolas Bordeaux, of Paris, shared the state of the restaurant industry in Europe and the UK. We checked back in with our European outposts this month, with additional insights from Rosa Blanco-Vegas,...

Reduced restaurant menus offer opportunity for profitability and simplicity

Q&A with RMS menu engineering expert on top 7 reasons to reduce your menu The analogy may be obvious, but as with any successful recipe, a sustainable and profitable restaurant also comes down to using the correct mix of ingredients. Now that most everything we...

Update from the United Kingdom: Restaurants Receive Boost from Government

Normal is still a far way off for United Kingdom restaurant owners and operators, but July did bring about a few bright spots amidst a tough first half of the year. On July 4, restaurants and pubs opened. A few days later, borders reopened for travelers from...

Dispatch From Asia: What Does Restaurant Dining Look Like Now?

In April, RMS Managing Director Winny Daud shared her insights on Singapore’s response to the pandemic, based on her experience as a restaurant analyst, client partner and Singaporean. We spoke to her again this month to see what’s changed in the restaurant industry...

Finding New in the Old: The Rise of QR Codes during the coronavirus pandemic

When it comes to restaurant cravings these days, limited contact is what’s on the menu. In fact, “avoiding contamination” has replaced “food quality” as the most significant consideration when deciding where to dine. According to our survey of 1,200 U.S. customers,...

Consumer preferences have changed. These insights will help your restaurant recover.

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European chains face a mixed bag of recovery

When it comes to COVID-19 recovery, countries across Europe have one thing in common: doing their own thing. As a result, pan-European brands face different rules and regulations by country and, in some cases, even among in-country regions. What does this mean for the...

How to Make Sure Your Restaurant Brand Survives

From immediate response to resolution and recovery, maneuvering a crisis with any sort of certainty can be challenging. With COVID-19, “challenging” is an understatement. Brands had to think quickly to respond to the crisis, without any real historical precedent. As...

What Should Restaurants Measure Now?

Historical and comparative data and information guide us, informing both near- and long-term actions. But in these times without historical precedent, we are left with the question: what should we measure now? Information enables conversations—and solutions. RMS CEO...

Winning families back for dinner

Insights from in-depth interviews with moms and dads in Germany, South Korea, UK and US As we begin on the road to recovery, RMS is finding ways to shed some light on the dramatically changed consumer attitudes and behavior. In April, we conducted a global consumer...

Series 6 – How did each gender’s relationship with food and their dining habits change during COVID-19?

Consumer insights Understanding the restaurant consumer in a COVID-19 world In this multiple part series, we are analyzing responses of over 1,800 restaurant consumers from 3 major markets (US, UK, and Singapore/ South Korea/Taiwan) to understand their behavior and...

How fast casual PDQ continued to serve quality to customers

Before March 2020, new menus could take a year to launch, with every item in every medium checked and rechecked. But the pandemic changed everything. Fast casual chicken concept PDQ launched a new menu just days after the WHO announced the pandemic, deleting certain...

Series 5 – How did each generation’s relationship with food and dining habits change during COVID-19?

Consumer insights Understanding the restaurant consumer in a COVID-19 world In this multiple part series, we are analyzing responses of over 1,800 restaurant consumers from 3 major markets (US, UK, and Singapore/ South Korea/Taiwan) to understand their behavior and...

Restaurant CEOs on Leading Their Brands Now and Beyond Coronavirus

On April 29, Revenue Management Solutions and EZ CERT supported Franchise Times’ lively webinar discussion with Peter Cancro, Founder and CEO of Jersey Mike’s Subs, Joe Koss, President and CEO of Culver’s Restaurant, and Chris Newcomb, Co-Founder and CEO of Newk’s...

Sense360 Briefing with Dora Furman

Recently our own vice president, Dora Furman, fielded questions from the Sense360 audience about the state of the restaurant industry. Watch the...

Series 4 – U.S. vs U.K. frequent users

The pandemic has affected everyone, however, consumers in the United States and the United Kingdom act differently when purchasing from restaurants in response to COVID-19, yet they have similar concerns. Consumer insights Understanding the restaurant consumer in a...

Pricing Post Crisis: What Should Operators Consider?

RMS’ Chief Strategy Officer Joel Davis leads our analytics and data strategy discipline and serves as a strategic consultant for many of our customers. He’s been asked a lot of tough questions lately about how to move into recovery – and what to do about price. Below...

Revenue Management Solutions’ Global Survey Finds 8 out of 10 Consumers Trust Restaurants

Concerns vary by continent and country, yet consumer confidence underlies all (TAMPA – April 28, 2020) Revenue Management Solutions (RMS) revealed insights from its global consumer study that assessed consumers’ dining behavior and perspectives on the restaurant...

Field Report: How is Singapore Responding to COVID-19?

If there’s one thing that’s been consistent across the globe during the pandemic, it’s how differently each country is handling restaurant restrictions. It shouldn’t come as a surprise. After all, there’s no handbook — government, corporate or otherwise — to help...

Series 3 – U.S. vs Asia frequent users

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Your Coronavirus Response Recovery Depends on Data

We’re in a time of great opposites. On one hand, you’re required to engage in the quickest thinking of your career as we rapidly change course to meet the needs of the day. On the other hand, the COVID-19 crisis will begin to subside, and that time will require a very...

Series 2 – U.S. Frequent users

During the pandemic, frequent users in the U.S. only marginally reduced ‘using’ restaurants, are mostly concerned about lacking social interaction and rely on “Word of Mouth” for their food...

Series 1 – Common consumer themes

Recommended for youInfographicsInfographic COVID-19: U.S. Frequent usersApril 2020InfographicsInfographic COVID-19: U.S. vs Asia frequent usersApril...

It’s a disaster. But will disaster insurance cover it?

Circumstances well outside operators’ control are forcing closures, loss of revenue and, in some cases, permanent shut downs. We can all agree that this is a “disaster,” but most business insurance policies only cover catastrophes of the physical kind, and will...

Piper Sandler invites RMS Chief Strategy Officer to share restaurant industry insights in the face of coronavirus

In a recent Key Opinion Leader conversation with investment bank and institutional securities firm Piper Sandler, RMS’ Chief Strategy Officer, Joel Davis, shared his thoughts about the current state of restaurant sales and consumer spending trends in the face of the...

Industry Notes: How restaurants can survive

These days are truly like none other. When Waffle House, notorious for its record of staying open during natural disasters, closes nearly one-fifth of its restaurants, you know it’s not good. But that’s precisely what’s happened amid the coronavirus pandemic. So what...

A time for ingenuity and relationships

Plato was right when he wrote, “Necessity is the mother of invention,” particularly now. Robin Blanchette, CEO of Norton Creative, agrees. “What worked yesterday may not work tomorrow,” she says. “The key is not giving up.” Norton Creative is a boutique creative...

Building carry-out and delivery sales

It is understandable that there is a sense of panic in the restaurant industry. However, you can do things now to mitigate the effect on your restaurant(s). Our partner, Norton Creative, a restaurant marketing and design agency, has shared a number of initiatives that...

How to manage operations in this delivery-only time

For most restaurants, there have always been three ways to serve guests and make money: dine-in, takeout and delivery. Now that government authorities, in an effort to help flatten the coronavirus curve, have required all dining rooms to close, you’re left with only...

Practice What You Preach: Tech Trends to Integrate in 2020

2020 starts a new decade. Some say a new beginning. And, according to Hudson Riehle from the National Restaurant Association, 2020 could bring forth a “new business model” for restaurants. We are excited about 2020 not because new things will start, but because,...

Margins, meats and the final mile: 2020 restaurant industry predictions

We recently returned from The Future of the Industry: 2020 and Beyond, hosted by Bloomberg Intelligence and The Elliot Group, where we listened to the most powerful minds in the industry debate today’s hot button issues – from plant-based meats, last mile delivery,...

The Psychology of restaurant menus: Part 2- Engineering

In Part 1 of our look at the psychology of restaurant menus, we examined how consumers react to design and what operators can do to ensure maximum impact for their offer. In this second part of the series, we’re looking at menu engineering. Revenue Management...

What to consider when designing your menu as we head into the new year

Holistic revenue management has been a big topic and will remain so into 2020. Growing traffic is a challenge and brands are working hard to ensure their menus and service proposition are as profitable as possible. Alongside sustainable food and provenance, the focus...

Dispatch from the field: focus on a strong economic model, but don’t forget the people

Las Vegas – We write from one of the most important restaurant conferences of the year – The Restaurant Finance & Development Conference hosted by the Restaurant Finance Monitor. The RMS team, including John Oakes, CEO; Jana Zschieschang, CMO; Bob Donofrio, SVP of...

1, 15, 20, 65, 70, 25, 2 and another 1.

No, this isn’t the algorithm for our newest pricing study. And these aren’t the winning lottery numbers. Instead, these numbers represent an instructive snapshot of the restaurant industry, courtesy of the Florida Restaurant and Lodging Association’s Marketing and...

4 steps to understand customer satisfaction and pricing power

Customer satisfaction is the underlying factor that leads people to keep coming back to your restaurant again and again. The simple fact is this: when restaurant operators excel in running their businesses, diners will continue eating there. High customer satisfaction...

How to incorporate seasonal trends into your menu

Every few months, restaurant operators are given the opportunity to refresh their food menus with the change of the season. By incorporating fresh flavors and ingredients to fit the season, restaurants can benefit from the excitement of innovation. A key factor to...

Menu design plays a key role in maximising food sales for hospitality operators

What role does our brain play in the way we read menus? In the first in a series on menu design and engineering, we take a look at current industry practices on how operators use menu design to drive sales. The saying goes that we eat with our eyes and there’s...

Meal kits & delivery trends represent key opportunities for operators

Philipp Laqué, RMS’ UK Managing Director, takes a look at the latest trends and innovations in at-home dining that operators should be looking to adopt. He also talks to Jackie Berg, VP Marketing for US-based Olo, the ground-breaking online digital ordering and...

What do restaurant operators need to consider when devising pricing structures for delivery offers?

Operators should look for a delivery partner who shares their values and enhances their offer. The provider should act as an extension to a business to reach more customers at different times of day or consumers who might not have considered the operator if they...

4 Proven Strategies to Raise Check Sizes

While restaurant traffic was down in 2018, many restaurants saw flat to positive sales growth due to increases in average check size. And while many brands raised their prices between 2–4 percent in 2018, others were able to achieve higher check growth through...

5 ways fast casuals can combat rising minimum wages

More states around the U.S. are raising the minimum wage in 2019. In total, 20 states will raise their minimum wage this year, with substantial increases of $1 in some states. For example, Maine’s increase will be 10 percent, Massachusetts’ is 9 percent, and...

5 ways to ensure your restaurant takes a bite out of the food delivery boom

Food delivery is certainly here to stay: It’s now a $100 billion-plus industry, with restaurant companies large and small embracing the concept. But are restaurant operators really getting ahead by making more and more deliveries? Fortunately, the answer is yes....

3 Tips to Win the Latest Restaurant Trend

It seems like there’s a new food trend popping up every week. The challenge is this: true concept innovators not only have to take an inspired idea and turn it into an irresistible offering, they must introduce it the right way and at the right time. With new ideas...

Is Dynamic Pricing Right for Your Restaurant Brand?

Many restaurant operators are taking advantage of dynamic pricing, but is it the right move for your brand? A few restaurants have been successful in executing dynamic pricing as a core part of their strategy, with the most well-known being Chicago restaurant Next,...

6 Key Ways Self-Serve Kiosks Can Boost Your Sales

Enhancing the customer experience through customization and convenience is more important than ever. While kiosk systems have existed since the early 1990s, their presence in the restaurant industry has increased in recent years as large brands such as Panera,...

Combat declining traffic by understanding the ailment before determining the remedy

Customer traffic is one of the key metrics restaurant operators use to measure success. When traffic is down, many chains turn to new promotions or even consider lowing prices, but will these actions reverse the trend? Before you take action, first take time to...

5 things to consider when choosing a delivery partner

With consumers seeking convenience, it is no secret that the delivery trend is here to stay. The strong drive towards on-demand delivery has led many third-party providers including UberEATS, Deliveroo and Just Eat to enter the market. With a vast number of delivery...

Generation Z Is Entering the Workforce: Are We Ready?

Just as restaurant managers figured out how to hire and retain Millennials, Generation Z (born after 1995) is looking for job opportunities. They have been described as being smarter than baby boomers and more ambitious than Millennials. Generation Z employees look...

What smaller chains should consider as they grow

Mine transactional data to understand customers and make smart decisions If you are the leader of a smaller, rapidly growing restaurant, you have to make decisions every day that may have a long-term impact on the concept’s success. Here are just a few examples: How...

Finding the sweet spot: What pricing strategy to use for distribution channels

For years, many restaurant operators have traditionally charged the same prices whether the menu is being used inside the restaurant, at the drive-through or for pickup, delivery or catering. But with the ever-increasing popularity of eating outside the restaurant via...

6 Tips to Help Restaurants Combat Higher Labor Costs

Though raising prices from the start is tempting, try these more effective solutions instead More and more municipalities around the U.S. are raising the minimum wage: In all, 19 states raised the minimum wage last year, with some of the largest increases in the...

9 Ways to Maximize Menu Profitability

Mitigate cost pressures and avoid giving guests sticker shock with these tips Too often, restaurant menus have catchy descriptions, gorgeous photos and an attractive layout, but are missing a key ingredient: They aren’t driving profitability. Certainly, you should...

6 Tips for Incorporating Applied Analytics Into Business Decisions

Restaurant operators have access to more data than ever. Here’s how to work with it. The adoption of more advanced POS systems in restaurants has led to data becoming more accessible than ever before. In today’s data-driven world, restaurants frequently want to...

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