News Briefs

  • 5/13/2024

    Survey by SpotOn Reveals Restaurant Workers and Consumers Aren’t So Far Apart on Tip Culture

    spoton logo
    The emergence of preset tip amounts and requests for tips in spaces outside the hospitality industry has some Americans feeling burnt out from the concept of tipping altogether. While industries asking for tips have expanded, a new survey shows that “Tipflation,” as it has been coined, is not padding the pockets of restaurant workers. Restaurant workers say that, in reality, the tips they expect and receive aren’t experiencing the notable fluctuations being touted in the press. Today, SpotOn, the top-rated software and payments partner for restaurants and small businesses, revealed the results of a comprehensive study of tipped restaurant workers on tipping expectations, generational trends, and payment options. The report titled “Beyond Gratuity: Perspectives of Restaurant Staff on Tipping Practices” reveals that two-thirds of workers report their tips have stayed the same or decreased in the last twelve months, and more than half of tipped workers expect a modest 15% to 19% tip.
     
    This new data contradicts widespread reporting about increased tipping across the board. Instead, tipping trends remain relatively consistent. Internal data from SpotOn showed an average tip of 18.99% on orders placed through the SpotOn Restaurant point-of-sale system for March 2024. This is a slight decrease (0.1%) from 19% seen one year earlier in March 2023.
     
    In the survey, tipped workers also reported modest expectations for the minimum they expect to be tipped based on service. 52% of tipped workers surveyed said they expect between 15% to 19%, and only 1 in 5 tipped workers expect 20% or more. Worker expectations align with recent Pew Research Center findings that most Americans say they would tip 15% or less for an average meal at a sit-down restaurant, with only a quarter of people saying they’d tip 20% or more. 
     
    For years, restaurants have been working to optimize payments, reservations, staffing, and inventory management with digital solutions to improve their bottom lines, including handheld point-of-sale devices. With a handheld, restaurant staff can take orders and payments in real-time, whether at the table or for line-busting busy crowds, improving staff efficiency and speed of service, resulting in a better guest experience and better tips. Restaurants using SpotOn handhelds typically see both their average ticket price and average tip amount go up. Tipped restaurant workers have largely embraced the technology due to the fact that servers can cover more tables and significantly increase their take-home pay. While tip percentages have remained stable, technological efficiencies are improving everything from ordering to bill payment. Speed remains one of the most important aspects of customer service, so omitting the kitchen round-trip to put in an order or running a credit card at a far away terminal has been transformative to the industry.
     
    “We’ve seen at least a 5% to 7% increase in tips that servers and bartenders are making, thanks to SpotOn’s handheld,” said John Shepherd, Owner of Shep’s and Salt. “Having that screen right in front of customers speeds up the process both when they’re ordering and when they’re closing out, making it easy for our staff to focus on serving guests and providing quick and exceptional service.”
     
    When it comes to pre-set tip amounts, 43% of tipped workers say that predefined tip amounts on point-of-sale systems are actually helpful to both guests and servers. When asked what the predefined tip amounts should be, most respondents selected the standard 12%, 15%, and 20% options. A further 43% indicated that even a 10% option would be suitable. SpotOn’s default preset tip amounts are 15%, 18%, and 20%, aligning with expectations from both parties and can be edited by each restaurant operator. SpotOn recommends prompts be determined based on their restaurant’s service type and geographic location, among other factors. While requests for tips outside the restaurant industry have been cited as contributing to tip fatigue, most industry workers indicated they did not see adding tips to non-hospitality services as detrimental to their take-home pay.
     
    Restaurant workers and their guests may have similar expectations around standard tip amounts, but more than half of tipped workers surveyed believe customers do not understand how tips factor into their take-home pay. Most industry workers receive a tipped minimum wage combined with tips to reach the federal minimum wage. This is typical for the restaurant industry, which operates on unimaginably slim margins, often five to seven percent, and where every dollar and cent makes a difference. To combat inflation and rising costs without raising menu prices to unachievable levels, restaurant operators are turning to tech solutions to make the dining experience better for both guests and workers. Handhelds and order kiosks increase convenience and speed of transactions, resulting in higher tips for workers, while point-of-sale data helps operators staff shifts appropriately, lowering costs and enabling staff to take home more tips. 
     
    “The restaurant industry is in a tough position, facing rising costs, razor-thin margins, and changing consumer expectations,” said Kevin Bryla, Chief Marketing Officer of SpotOn. “We’ve seen that the right restaurant technology can deliver an enhanced experience for guests and drive operational efficiency and improved profitability for restaurateurs - both of which translate to improved pay and workplace satisfaction for restaurant workers. All of those factors need to work together to make a meaningful difference in a tough industry and tougher economic environment."
     
    SpotOn’s “Beyond Gratuity: Perspectives of Restaurant Staff on Tipping Practices” report dives into other aspects of how restaurant workers view tipping, including generational differences, opinions on what kinds of eateries (including fast food) should be tipped, what metrics tips should be based on, and much more. 
     
    Additional Survey Highlights:
     
    • Nearly half (47%) of survey respondents who receive tips said they feel positively about the current tipping culture in the restaurant industry, and only 8% felt that tipping culture is negative and harming the industry. 
    • Despite reports of tipflation and tip creep, industry workers who receive tips have not seen major changes in tipping in the past year. 36% report that their tips have stayed consistent, and 35% actually reported a decrease.
    • Tipped restaurant workers are not worried that more businesses outside the industry asking for tips will negatively impact their own tips — 64% say it has had no impact, while 8% say it’s even helping. 
    • When it comes to the minimum percentage they expect based on service, a majority (52%) of tipped workers expect between 15% and 19%.
    • When they choose to dine out at restaurants, however, industry workers are big spenders, with nearly half doling out 20% tips or higher. While they believe they are better tippers from working in the industry, they expect less from their customers. 
    • 68% of respondents work at restaurants that do not currently charge a service fee, showing that the additional charge is less widely used than it may seem.
    • If their restaurant does add an automatic gratuity, 46% of tipped workers do not expect customers to leave an additional tip. 
  • 5/12/2024

    The Coca-Cola Company Unveils Proprietary Insights Platform

    Coca-Cola lens

    The Coca-Cola Company announces the launch of Coca-Cola Lens, an insights platform focused on growth, and designed to empower operators in the foodservice and retail industries to make data-driven decisions. As retailers and operators across the country navigate ongoing economic challenges, Coca-Cola Lens makes actionable insights more accessible, magnifying relevant trends to anticipate consumer preferences. Coca-Cola’s business spans more than 250,000 retail outlets and 500,000 foodservice outlets in North America making it uniquely positioned to provide valuable, real-time insights to businesses that need them. 

    “Coca-Cola has always been dedicated to driving growth with our partners. With the launch of Coca-Cola Lens, we're taking that commitment to the next level,” said Dagmar Boggs, Head of Foodservice at Coca-Cola North America. “Now, customers will be able to self-serve the actionable insights they need, precisely when they need them, empowering our partners to navigate the evolving landscape with confidence and agility." 

    Coca-Cola Lens utilizes proprietary tools and data, plus insights from secondary and third-party sources, to bring insights into focus via a digestible, user-friendly website. Accessible to all at Coca-ColaLens.com, the platform dives deep into the nuances of consumer behavior, and then zooms out to show the trends and context that make up the bigger picture, all with a forward-thinking outlook.  

    At launch, there will be 16 unique thought leadership stories covering topics as broad as macroeconomic trends and as tailored as premium water trends, with new content every quarter.  

    “We are launching Coca-Cola Lens to deliver on the promise to create value beyond beverages to our customers, while serving as thought partners and consultants. Together, we will navigate this dynamic landscape, leveraging data and tools to drive our business strategies forward and accelerate growth,” said Pamela Stewart, Chief Customer Officer – Retail, Coca-Cola North America. 

    Restaurant Show Debut

    The platform will be introduced at the 2024 National Restaurant Association Show Booth 4402, and attendees can hear more information during Monday’s education session, Data and Dining: Feeding Growth with Actionable Insights.  

    For more information about Coca-Cola Lens and to explore the latest insights, visit Coca-ColaLens.com. 

     

  • 5/12/2024

    STUDY: 74% of Restaurants Project a 20+% Jump in Office Catering

    Almost all -- 97%  of restaurant operators surveyed expect their revenue from catering to grow in 2024 compared to 2023, and 74% anticipate over 20% growth, according to ezCater's  second annual “Feeding the Workplace” report.

    Grounded in ezCater order data and survey insights from over 2,800 different food for work stakeholders, the report looks at the state of food in the workplace and how restaurant operators can capitalize on this growing opportunity.

    ezCater revealed findings during its Catering Growth Forum at the 2024 Food On Demand Conference. 

    Today, food for work is expanding beyond traditional business catering, and more companies are using restaurants as a cafeteria alternative. In fact, the number of survey respondents reporting they order for daily and weekly recurring meals has increased 32% year-over-year. They also reported interest in additional workplace offerings such as restaurant pop-ups, food trucks, grab-and-go, and special events.

    "The food for work opportunity is much bigger than just business catering. While organizations continue to feed their meetings and celebrations, they are also increasingly using restaurant food to feed their people on a regular basis,” said David Meiselman, Chief Marketing Officer, ezCater. "With ezCater, restaurants can tap into the expanding food for work category and benefit from large, incremental orders from all types of workplaces nationwide."

    Additional key takeaways from this year's report include:

    • Food for work is a lucrative marketing channel: Nearly half (47%) of employees surveyed have ordered from or visited a restaurant after first trying it through an employer-provided meal. The average ezCater order serves 23 people and provides restaurants with valuable brand exposure.
    • Delivery tracking and mobile ordering are a growing priority for orderers: 90% of orderers are more likely to order from a restaurant that offers delivery tracking updates. Compared to a year ago, 67% more orderers are using mobile devices to place orders.
    • Choice is paramount for employees: 71% of employees surveyed prefer to select meals themselves when their employer provides food for work, and 64% prefer individually packaged meals.
    • Sustainable packaging is a differentiator: 43% of orderers prefer sustainable food packaging. What’s more, 37% of workplaces have made sustainable packaging a company requirement. Similarly, 28% of companies have requirements around food waste reduction.

    More broadly, catering is a strong revenue driver for restaurants. According to the operators surveyed, 97% expect their revenue from catering to grow in 2024 compared to 2023, and 74% anticipate over 20% growth. To learn more about the ezCater Catering Growth Platform, visit www.ezcater.com/grow.

    Methodology

    From January 22, 2024, to February 2, 2024, ezCater surveyed more than 2,800 restaurant operators, corporate catering orderers, and employees, on the state of food for work. Proprietary ezCater data was also gathered over 17 years from millions of transactions across more than 100,000 restaurants and caterers.

  • 5/9/2024

    STUDY: 80% of Diners Research Menus Online to Assess Dishes, Cost, Convenience,

    consumer not happy with surge pricing

    Consumers love restaurants—64% said they would dine at or order from restaurants every day if they could manage it—but a prolonged struggle with inflation is tempering their spend and gratuities for staff. 

    On average, consumers today spend 30% of their individual or family food budgets on restaurants each month, down from 40% in May 2022. Nearly 2 in 5 (38%) say they are spending the same or more on restaurant meals compared to last year, but are tipping less. This is according to Popmenu's nationwide study of 1,000 U.S. consumers in April 2024.

    Eating and drinking places generated $93.7 billion on a seasonally adjusted basis in March 2024, according to preliminary data from the U.S. Census Bureau. Following a decline in December and January, industry revenue grew in February and March—but is still trailing a $94.2 billion high in November.

    "Although restaurant industry sales remain healthy, competition for guests has intensified over the last several months," said Brendan Sweeney, CEO and Co-founder of Popmenu. "Consumers are doing their homework: 80% research restaurant menus online as they assess dishes, cost, convenience, and other drivers of dining decisions. Restaurants who are winning and growing are 1) offering more budget-friendly menu options or discounts and 2) actively engaging consumers across digital channels to entice them to order online or in person."

    What consumers want:

    • More leftovers: Half (52%) of consumers say they prioritize restaurants that offer bigger portions, so they have leftovers for another meal.
    • Bigger, better deals: 66% of consumers choose restaurants that provide more affordable menu items or special offers.
    • Fewer fees: 67% of consumers prefer to order directly from a restaurant's website vs. a third party, primarily to avoid fees and take advantage of cheaper menus.
    • More rewards: 45% frequent restaurants that offer a loyalty program.

    Survey Methodology
    Popmenu conducted an anonymous, nationwide study of 1,000 U.S. consumers, ages 18 and older, from April 16 to April 17, 2024.

  • 5/9/2024

    Cheetah Technologies Raises $14M, Names New CEO

    raising capital money bags

    Cheetah Technologies, a restaurant supply technology and food distribution supplier,  announced the appointment of their new CEO, technology and operations veteran, Kim Spalding. Over the last several months, Spalding and the Cheetah board collaborated on an additional $14M round of funding, focused on the continued development and scaling of the company's technology platform. 

    Spalding comes from esteemed posts at the likes of Google, Starbucks, and McKinsey. Over the past 25 years, she has shown a deep understanding of operational change management, process discipline, and innovative technology solutions to build value for shareholders and drive growth for businesses.

    "I've been fortunate to work with several companies that have had a tremendous impact on a global scale. Those experiences have prepared me for what could be one of my biggest challenges yet, tackling the food supply chain through technology," said Spalding. "The challenges facing this industry impact everyone on the planet, daily. Cheetah's technology was built to improve the entire foodservice industry by offering transparency, structuring and sharing data, and enabling excellent service. With scale, that can positively impact millions of small business owners, employees, and their customers."

    Cheetah's investors showed their support and excitement for Spalding's appointment and the business's trajectory with closing an additional $14M in funding focused on further strengthening their technology platform and its growth opportunity.  

    "The $400B restaurant supply chain market is fragmented, strife with low NPS scores, and therefore, is in dire need of transformation," said Charly Mwangi, Partner at Eclipse. "Paired with Cheetah's technology and density of talent, Kim Spalding brings the experience and operational skills needed to tackle this complex problem. Kim's appointment and Cheetah's latest round of funding will help propel the team forward in a meaningful way as they work towards their mission of transforming the foodservice industry." 

    Before joining Cheetah, Spalding was the SVP of Ocean Network Strategy & Platforms at Maersk where she led strategic investments in the ocean network and new product innovation. Prior to taking that role, she was the CEO of TradeLens, an enterprise SaaS start-up backed by IBM and Maersk to provide secure supply chain visibility using blockchain technology. Spalding served as the General Manager of Ads for Local Businesses and Emerging Markets at Google (2015-2022), including Travel Ads, Local Services, and Maps Monetization. She also served as a VP of Global Coffee and various operations and product roles at Starbucks, including the introduction of mobile payment on the Starbucks App. 

    Cheetah is a restaurant supply app, providing the simplest, most affordable way for restaurants to get their daily supplies. Cheetah's technology was developed to solve the complex issues facing foodservice distribution including supply chain management, logistics optimization, data analytics, and purchasing algorithms which enhance efficiency and profitability for every partner in the channel. Proprietary solutions connect multiple supply-side systems with in-house sales software bringing a lean, efficient, and reliable approach to the foodservice ecosystem. This software reduces the time & labor needed to place & process orders while minimizing food waste.

    Cheetah is founded and run by food industry veterans, supply chain and logistics experts, chefs, engineers, data scientists, and innovators who have come together to help restaurateurs, distributors, and manufacturers thrive. 

  • 5/9/2024

    Uber Eats to Power Restaurant Delivery on Instacart

    instacart uber eats partnership

    Instacart and Uber Technologies, Inc. announced a strategic partnership to bring Uber Eats restaurant delivery to Instacart customers. In the coming weeks, Instacart customers nationwide will be able to use the Instacart app to order from hundreds of thousands of restaurants, powered by Uber Eats.

    The experience will be featured through a new "Restaurants" tab in the Instacart app, providing a user-friendly interface that allows consumers to choose from a selection of nearby restaurants, browse menus, place orders, and track deliveries in real-time. Customers will be able to order groceries for the week from Instacart's more than 1,500 national, regional, and local retail banners across more than 85,000 stores – all fulfilled by Instacart and its shopper community – as well as dinner for the night from hundreds of thousands of restaurants, which will be fulfilled by Uber Eats and the couriers on its platform. Instacart+ members will also get even more value from their membership at no additional cost, with $0 delivery on grocery and restaurant orders over $35.

    "Our goal is to make it effortless for people to go anywhere and get anything," said Dara Khosrowshahi, CEO of Uber. "We're excited that this new strategic partnership with Instacart will bring the magic of Uber Eats to even more consumers, drive more business for restaurants, and create more earnings opportunities for couriers."

    "Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app," said Fidji Simo, CEO and Chair of Instacart. "Whether it's ingredients for a beloved family recipe, a prepared meal from a nearby grocer or takeout from a favorite restaurant – customers can now get the food they want, from the retailers and restaurants they love, all within the Instacart app."

    For Uber, powering restaurant delivery in the Instacart app is another way to help drive more orders to Uber Eats restaurant partners. This new channel also enables Uber to extend its leading restaurant selection to millions of customers across the U.S., including families in suburban markets that use Instacart.

    This partnership also extends the efforts of both companies to create technologies and solutions that support brick-and-mortar businesses. Through this launch, Uber and Instacart are helping restaurants and retailers grow by increasing opportunities for them to reach new customers online and drive more sales through an even more engaging Instacart experience.

  • Show MoreShow More
X
This ad will auto-close in 10 seconds