In the whirlwind that was last year, we saw takeout save the day, the morning meal rush decline as workers stayed home, and outdoor dining spaces become fixtures—even during the coldest months. As the industry finds its footing, we’re all looking forward to the day when things get back to “normal,” even as we recognize that the definition of normal has changed considerably. Along those lines, here are some of the COVID-related dining trends that are most likely here to stay:

Cleaning and sanitation

Pre-COVID, restauranteurs were no stranger to food inspections. Usually carried out an average of 1-3 times per year, every state has updated their inspection guidelines to reflect FDA and OSHA recommendations that limit the transmission of COVID-19. Staying up to date is crucial, not just to pass inspection, but to inspire the confidence needed for consumers to dine out. In Zagat’s Future of Dining Study, diners were asked what would most influence their decision to dine out after COVID restrictions were lifted. An overwhelming 75% cited “health & safety concerns.” Looking forward, you will want to not only build your reputation on great food and service, but a commitment to keeping your diners and employees safe through clean, safe food preparation and serving practices.

What this looks like is different for every restaurant, but for most it includes continued transparency in cleaning practices—signage and advertisement of regular sanitation helps customers feel safe. Also, many are looking towards hygienic (and eco-friendly) options like single-use serving utensils made from biodegradable/sustainable materials and non-print menus, which are becoming increasingly popular with the rise of QR codes and in-app ordering at the table. Highly visible sanitizing stations for diners and workers placed strategically throughout the restaurant, as well as contactless payment, even while dining in, are most likely here to stay.

Takeout and delivery

Amid 2020’s shelter-in-place orders and shutdowns, third-party delivery apps saw their business double. However, when many dining rooms opened across the country late last year, OpenTable still reported a decrease of 52% in the number of seated diners. As more individuals are vaccinated and restrictions lift, expect the caution around dining out to remain. Now is the time to make sure that your takeout and delivery processes are seamless. Unsure of where to start? Statistics show that 64% of diners prefer to order direct through the restaurant for delivery. Perhaps it is time to set up your own delivery service—it’s a revenue-generating investment that is also likely to increase overall customer satisfaction.

Similarly, with takeout you’ll want to explore additional channels. If you don’t have the space to create a drive-thru window, consider adding curbside pickup—50% of diners last year said they are using the service more than before. Not only is it a great way to create another point of contact with customers, but curbside service can help redirect some of your drive-thru traffic: eliminating bottlenecks, potentially shortening drive-thru wait times, and creating the perception of immediacy. For the best customer experience, consider integrating your curbside pickup/delivery options within your app or website.

Value

Consumers will be driven by value moving forward. Last year, QSR’s data showed that 40% of diners were looking for “a good value for the money” when dining out. Surprisingly, attributes like variety of menu offerings, atmosphere, and even convenience were on the decline. In general, the markets are rebounding better than most predicted, but 2020’s high unemployment rates and market instability cast a long shadow, and consumers are cautious about how they spend their money.

Another force behind value-driven dining is the emergence of the home chef. Last year, folks picked up their spatulas more than ever, and though many will return to their pre-COVID dining patterns in the next year, it’s estimated that about 37% of diners will opt for home-cooked meals—a $50 billion dollar industry difference. In this type of climate, competition is high, and brand loyalty is key. Creating an in-house rewards program or linking up with a larger partner is a great way to incentivize guests to return. Loyalty programs encourage habit and create a sense of reward for customers each time they order from your establishment.

You may also want to consider offering coupons and family-style menu options. In April of last year Datassential asked consumers how they would save money after restrictions were lifted and 23% cited coupon usage, while another 15% percent said that they would order from shared or large portion menus.

Communication is (still) key

Adaptation was the name of the game in 2020, and while there’s no crystal ball, last year’s dining data can tell us much about what to expect moving forward. Positioning your restaurant to respond to these trends may increase overall customer satisfaction and show you exactly where to invest your resources to generate the most revenue.

Regardless of what changes you make, remember that transparency and communication with your customers is paramount. Updating your restaurant’s web page and social media to reflect changing hours, new/renovated dining areas, and current menus will help your patrons stay engaged. Much is changing in the industry, but this is also an unprecedented opportunity to reset and discover what works best for you and your customer base.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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In our latest e-tool, “Seven steps for reopening indoor dining,” we share seven key steps to consider when reopening for indoor dining, including:

• Review local guidelines
• Evaluate staff needs
• Bolster food safety and sanitation practices
• Update your menu
• Launch promotions and specials
• Nurture off-premise sales
• Announce your reopening

Download this free e-tool to help you create a successful plan for your restaurant prior to reopening for indoor dining.

The post Seven steps for reopening indoor dining appeared first on Rewards Network.

Festive drinks

Delicious drinks are a key component of any good celebration and Cinco de Mayo is no exception. Consider curating a special drink menu for this day that showcases Mexican-inspired cocktails, beers, and beverages. Featured drinks can include:

Margarita–Put your bartenders’ creativity to the test and develop your very own Cinco de Mayo house margarita. It can be infused with extra spice, flavor, or a completely unexpected twist.

Paloma–A tequila cocktail that’s packed with zesty lime juice, grapefruit juice, and sparkling water, this concoction makes for a delightfully refreshing drink.

Michelada–This Mexican beer and Clamato cocktail can be made a dozen ways, so make sure your restaurant’s variation is unique, delicious, and a reflection of your brand’s personality.

Tequila–Offer a variety of Mexican tequilas that range in price and taste to satisfy a wide variety of budgets and palates.

Mexican Mule-A twist on the traditional “Moscow Mule,” a Mexican Mule includes tequila, ginger beer, and lime juice—it’s always a crowd favorite.

Other alcoholic and nonalcoholic beverages restaurants can serve on Cinco de Mayo may include Horchata, Bloody Maria, Agua de Jamaica, Mexican Hot Chocolate, and Mexican beer. Don’t be afraid to create ownable cocktails and drinks that spotlight Mexican ingredients and flavors to impress your guests with unique beverage options they won’t find anywhere else.

Delicious dishes

Of course, no Cinco de Mayo celebration would be complete without an extensive and mouthwatering Mexican food menu. When planning your menu, it’s a good idea to choose items that have ingredient crossover to save on cost and reduce food waste. Below are a few Mexican staple dishes that your chef can put their own unique and festive spin on.

Appetizers

• Homemade guacamole/salsa/Pico de Gallo with chips
• Shrimp ceviche
• Empanadas
• Elote
• Crispy tostadas

Main dishes

• Chicken tamales
• Mole poblano
• Skirt steak tacos
• Pork posole
• Carnitas with Mexican rice and refried beans
• Tortas
• Fajitas

Desserts

• Homemade churro
• Caramel flan
• Tres Leches cake

Outdoor space

Due to constantly shifting COVID-19 restrictions and guidelines, utilizing your restaurant’s outdoor areas is a smart idea. If you have an outdoor patio, rooftop, or sidewalk seating, consider reworking this space for a Cinco de Mayo celebration. This can include renting tents or heaters, depending on the climate in your area. It’s important that your restaurant adheres to state and local guidelines surrounding coronavirus and outdoor dining regulations. If a viable option, you can offer ticketed timeslots that people can sign up for on your website. Limiting party sizes and how long guests are able to reserve a table for will allow the maximum amount of people possible to enjoy your restaurant in a safe way. By having predetermined reservations and time limits in place, guests will understand the expectations and feel safer knowing that your restaurant is following social distancing protocols.

Take-home kits

One strategy that’s seen success throughout the pandemic is take-home meal kits and drink kits. An ideal solution for people who are not quite comfortable dining out yet, your restaurant can assemble take-home Cinco de Mayo kits. This way, your customers can enjoy your restaurant’s menu and celebrate from the comfort of their own home. Your Cinco de Mayo meal kits can feature traditional Mexican dishes (like the ones we previously listed) as premade, ready-to-eat dishes or you can instead include the portioned ingredients so everyone can cook together. Similarly, your restaurant can test offering to-go drink kits. These can have all the necessary, pre-portioned ingredients and garnishes for popular Cinco de Mayo cocktails. It’s a good idea to choose the top three cocktails that typically sell the best on this day to include in your take-home drink kit options this year.

Social media

Now it’s time to let everyone know about your restaurant’s Cinco de Mayo celebration options by posting on your website and social media pages. Include a link to book reservations and disclose any COVID-19 guidelines/restrictions that are required for guests. Consistently post about your Cinco de Mayo offerings a few weeks before the day to give people enough time to plan and possibly order meal kits ahead of time. It’s a good idea to feature professional quality photography of your Mexican food and drink items to encourage social media engagement. You can also promote your to-go Cinco de Mayo meal kit and drink kit options with a link to the ordering page. Overall, it’s important to let your customers, both current and prospective, know exactly how they can safely celebrate Cinco de Mayo with your restaurant this year during COVID-19.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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Why meal kits?

Meal kits are a rising sector of the restaurant industry that’s predicted to grow 25% to 30% by 2022. This specific service is ideal for restaurant owners during unpredictable times because it allows them to plan ahead in terms of ingredients and kit quantities well in advance. Meal kits can be a consistent revenue stream that’s always running behind the scenes, even when restaurants fully reopen for indoor dining. Another silver lining is that meal kits require less assembly for your staff but are priced competitively with prepared options. It’s also important to note that uncooked ingredients tend to travel much better and remain fresher than typical takeout/delivery meals. This fact can also allow your customers to plan out their meals well in advance, placing your restaurant’s meal kit in their family’s usual meal rotation. The ability to expand and diversify meal kit options fairly easily in relation to customer feedback and sales data is also an attractive element of this type of service.

Steps to success

When beginning to set up your restaurant’s meal kit service, first decide what type of meals you’d like to offer. It’s a good idea to start with a top-selling dish that many of your patrons already associate with your restaurant. For example, if your Margherita pizza is one of your bestsellers, this may be a great test meal for your first foray into meal kit service. Then, explore what other dishes you’d like to include and how many options will be available each week to customers. Once you’ve decided which dishes you’re planning on offering, next it’s important to determine what days of the week they’ll be available for purchase. Find out which day(s) is typically your lowest-grossing for takeout/delivery (if applicable) and consider offering your meal kit options during this time to see if it helps to boost off-premises sales.

Once your restaurant’s meal kit selections are nailed down, you’ll want to calculate the amount of ingredients and supplies needed to fill the orders. Then, analyze your return on investment (ROI) for each dish sold by deciphering your added costs and comparing it to your regular operational expenses. Now, it’s time to choose if you’re going to run your meal kit service fully in house on your restaurant’s website, or if you’d prefer to use a third-party online subscription platform. Below are a few platforms that have gained traction since the pandemic.

• Table22
• The Third Place
• DailyKit
• Chef Meal Kits

Whichever option you select, ensure that it’s optimized for mobile, and that the platform is extremely easy to navigate for both customers and your staff.

Packaging and delivery decisions

Now that all of the logistics have been worked out, it’s time to launch and promote your restaurant’s meal kits. A good place to start is with your current customers—email your current base and let them know about your new meal kit service and how they can place an order. Then, post the launch announcement and link to the order page front and center on your website as well as on all of your restaurant’s social media pages. To round out the promotion efforts, it’s a savvy idea to reach out to any local reporters, bloggers, or community news outlets, making them aware of how your restaurant is adapting to the challenges brought on by the coronavirus pandemic. Take your marketing initiatives a step further by offering an online cooking class (prerecorded or live) for each specific meal kit dish that’s led by one of your chefs.

Along with the directions you’ll include on how to prepare the meal, feature a link on how and where customers can give you feedback on their meal kit experience. Gathering real-time consumer feedback can be an excellent source for unearthing areas in need of further optimization in a restaurant’s meal kit operation. This direction card is also a smart place to encourage people to follow you on social media and to post a photo of themselves enjoying their meal kits. Include your social web addresses, handles, and any applicable location tags and hashtags. Discovering what your customer base likes, dislikes, and expects from a meal kit service can be the key ingredients to a successful and revenue generating arm of business.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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Rethink your outdoor space

If your restaurant boasts an outdoor patio, rooftop, or sidewalk seating, consider retooling this precious space for a St. Patrick’s Day celebration. This may include renting tents, heaters, or firepits along with featuring on-theme decorations—think shamrocks, green, and gold galore. Adhering to state and local guidelines surrounding coronavirus and outdoor dining regulations, you can offer ticketed timeslots that people can sign up for on your website. Place a limit on party size and how long patrons are able to reserve a table for to allow the maximum amount of people possible to enjoy your event. By having predetermined reservations and time limits in place, guests will understand the expectations and feel safer knowing that your restaurant is following social distancing protocols. If your restaurant is located in a cooler climate, consider referencing our blog, “How to prepare for outdoor dining during cooler weather,” to gather more tips and tricks for creating a warm and inviting outdoor space.

Supersize the entertainment

As one of the most popular bar and restaurant holidays, no St. Patrick’s Day celebration would be complete without killer entertainment. Look into booking a local Irish band or Irish dancers that can perform at preset times either inside your restaurant if indoor dining is an option or in your outdoor space. Don’t worry if live entertainment isn’t viable this year for your business, there are plenty of Irish bands such as Dropkick Murphys, an American Celtic punk band, and Thin Lizzy, a hard rock band formed in Dublin, that are crowd favorites this time of year.

Socially distanced yard games are a great idea if you have the capacity in your outdoor dining area. Bags/cornhole, shuffleboard, horseshoes, and bocce ball are all excellent options that can help keep your guests entertained for hours and spark curiosity in people walking by your spot. St. Patrick’s Day is a holiday that’s brimming with fun facts and trivia. For instance, did you know Chicago uses 60 pounds of green dye to turn its river green each St. Patrick’s Day? Hosting a themed trivia contest may be just the edge you need to entice local residents to book a table at your restaurant this year. You can even take this a step further by allowing virtual guests to participate in the game, increasing your revenue and brand exposure.

Curate a limited menu

St. Patrick’s Day is a holiday that’s synonymous with festive food and drinks. Delegate a portion of your outdoor space to be a beer tasting area, featuring a variety of Irish beers, spirits, and cocktails. Retool your drink menu to include popular Irish drinks such as Guinness, Baileys Irish Cream, Irish coffee, and Magners Irish Cider as well as tasting flights. Consider offering these beverages in branded souvenir glasses—a savvy marketing tactic. Shareable comfort food reigns supreme on St. Patrick’s Day. Work with your chef to add Irish-inspired items to your restaurant’s menu like bangers and mash, corned beef and cabbage sliders, shepherd’s pie, Irish stew, and soda bread. When planning your menu aim to choose items that have ingredient crossover to save on cost and reduce food waste.

Offer take-home kits

The COVID-19 pandemic has highlighted the many effective creative ideas implemented by restaurant owners across the county. One such strategy that has seen success is take-home meal kits and drink kits. A perfect solution for people who are not quite comfortable dining out yet, assemble to-go St. Patrick’s Day kits that allow customers to enjoy your restaurant’s menu from the comfort of their own home. You can include Irish meal staples like the ones we previously listed as premade, ready-to-eat dishes or opt to include the portioned ingredients so friends and families can cook together. It’s also a great idea to add your own twist on Irish-inspired sweets such as apple cake, Baileys brownies, shortbread, and soda bread pudding, in your takeout meal kits. St. Patrick’s Day is known for its fun drinks and cocktails. This holiday test out selling to-go drink kits that include all of the fixings for popular St. Patrick’s Day cocktails like Irish coffee, Old Fashioned, and Guinness floats.

Share on social

Spread the word about your St. Patrick’s Day options on your website and social media pages. Include a link to book reservations and/or to reserve a timeslot at your restaurant’s outdoor dining space. Consistently post about your St. Patrick Day offerings about a month before the day to give people enough time to plan and to stay on their radar. Feature mouthwatering photography of your Irish food and drink limited menu items. Also, be sure to promote your to-go holiday meal kit and drink kit options with a link to the ordering page. Sprinkle in fun St. Patrick’s Day trivia throughout the month to keep your followers engaged and consider posting polls for people to take that can lead to valuable insights for your business. Simply put, it’s important to let your audience know exactly how they can safely celebrate St. Patrick’s Day with your restaurant this year, even though it may look a bit different than years past.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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Prix fixe menus

This is the main event, a romantic dinner for two. Work with your chef to create a few prix fixe menu options that will travel well and/or that guests can easily re-heat at home for that perfect meal. If possible, allow guests to choose between a few different options per course. A more inclusive menu mindful of guest dietary restrictions could lead to an increase in orders. Since many couples dining at home this year also have hungry kids to feed, offering a kid-friendly or slightly scaled down version of your prix fixe menu gives the whole family a chance to enjoy a special meal together (and brings in additional revenue). And, since Valentine’s Day falls on a Sunday this year, consider also offering a brunch option. If possible, include nods to the day with breakfast items like heart-shaped waffles, pancakes, chocolate-covered strawberries, etc.

Alcohol add-ons

If you are able to offer alcohol for pickup or delivery, this is a no-brainer to increase your profits. Include the option for guests to add a bottle of Champagne or other type of wine to their order, pre-mixed cocktails and mocktails, or even hot chocolate/mimosa fixings to accompany brunch offerings. If you have branded glassware, or have the budget to pick up some heart-covered glasses/mugs, consider making those available for purchase, or as part of your overall Valentine’s Day meal package.

Dessert

This is the time for your pastry chef to shine. Collaborate on a few different dessert options to tempt your customers’ sweet tooth, such as chocolate lava cakes, cheesecakes, heart-shaped cookies, hand-made chocolates, and more. These can be included as part of your fixed-price menu, or as add-ons for anyone looking to up their romance game and score points with their significant other. You could also offer dessert as an incentive to order two meals. For example, order two entrees, get a free dessert.

Ambiance

Since the holiday will look a lot different this year for many couples, it’s important to help set the mood. Some ways to do that is by offering more items as part of your prix fixe menu, or as additional options customers can add to their order, such as:

• A bouquet of roses or other flowers
• Candles, to help create the most flattering of lighting for couples
• A Valentine’s Day card signed by the owner and/or staff
• Items with your restaurant’s branding that customers can use for a home photo shoot of their romantic meal

If you decide to offer flowers, see if there is a local florist you can partner with. In exchange for promoting their business, you may be able to get a discount.

Entertainment

People are yearning for a return to the days when we could gather for live performances. Offer them a chance to experience that in a virtual form by partnering with a local performance space and adding on tickets for a virtual concert or comedy show. This can give customers another way to make their day feel special either before or after enjoying a delicious meal from your restaurant.

Singles

Tap into the desire by singles to not feel excluded by offering special menu options for solo diners. Many people are turning to self-care during our time in isolation, and a mouth-watering meal from your restaurant could be just what they need to feed their bodies, and their souls. If you can, take it up a notch by creating a virtual hangout for singles who order from your restaurant. You could even create breakout rooms for speed dating. Make it even more fun by asking your best bartender to lead a virtual cocktail class for guests who ordered a cocktail kit with their meal.

Galentine’s Day

While this may have started as a fictional holiday on the NBC sitcom Parks and Recreation, Galentine’s Day, which is celebrated on February 13, has been widely embraced as a way to celebrate the power and importance of female friendships. On the TV show, it takes place over brunch with copious amounts of waffles and champagne, so this is a perfect opportunity for restaurants who offer a breakfast menu. However, dinner options will likely also be welcome during this time of social distancing. A virtual cocktail class is another excellent option for honoring the holiday, as are add-on items such as flowers or dessert that customers can order for their favorite “galentine” (or themselves).

Social media

Promote your Valentine’s Day options on your website, social media, and through emails. You can also create a custom message on My Rewards Network to tell members about your Valentine’s Day specials. Encourage customers to order early to avoid disappointment, and help get them excited for the big day, even if it will look different this year. Consider holding contests that ask customers to share photos of how they celebrated the holiday with your restaurant this year. You could offer a free dessert (to be redeemed at a later date) for any customer who shares a photo of them enjoying their meal at home, or offer a prize for the best-decorated table that features food from your restaurant. Another way to engage with customers is by encouraging them to share their favorite romantic movie, or create a poll and ask customers to vote for their favorite. The goal is to get and keep your guests excited and engaged with your establishment, and keep them coming back for more.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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In March the US government passed The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Included in the CARES Act was a highly successful loan program for small business owners, the Paycheck Protection Program (the “PPP”). PPP loans were 100% forgivable—if you closely followed the rules laid out in the bill.

On December 27, a second COVID-related stimulus bill was passed (the Consolidated Appropriations Act, 2021) with another $284 billion made available for PPP funding. “PPP2,” as some are calling it, contains many similarities to the first round of PPP, but also has several important differences. During the first round of PPP, Rewards Network (“we”) received many questions around what restaurant owners needed to do in order to receive 100% forgiveness on their PPP loan. Our restaurant experts studiously combed through the CARES Act, updates from the Treasury Department, and the Paycheck Protection Program Flexibility Act of 2020, to provide you our best take on how to receive full forgiveness of your PPP loan.

We have taken the same steps on changes for PPP2, which you will find below. As the Small Business Administration (“SBA”) and the Treasury Department work towards providing further guidelines, keep in mind that this information is subject to change. This is a rapidly developing subject matter, we will continue providing updates as more information is released in the next several days. As always, you should not make business decisions based solely on this blog, but rather, you should use this to help inform your discussions with your business advisors, accountants, and attorneys.

PPP2 total funding available

$284 billion has been set aside for PPP2 loans, with $35 billion set aside for those small businesses that did not receive PPP funding. An additional $40 billion is set aside for small businesses that either have less than 10 employees or that are in a low-income area and where the employer is seeking less than $250,000.

Who is eligible to apply?

To be eligible for a PPP2 loan, a restaurant must have been in operation by February 15, 2020. If your restaurant did not receive a PPP loan, then the eligibility criteria in the CARES Act apply to your application for a PPP2 loan, with minor changes. If your restaurant received a PPP loan, the following additional eligibility criteria apply to a PPP2 loan:

Second-time qualified borrowers (businesses that received a PPP loan, but need additional funding):

1. Have 300 or fewer employees per location (note: this figure is used as most of our readers are restaurants with a NAICS Code of 72).
2. Have used or will use the full amount of your first PPP loan.
3. Demonstrate a 25% gross revenue decline in accordance with any of the following:
   • If you opened in the third quarter of 2019, then compare your gross receipts from any quarter in 2020 with either your Q3 2019 or Q4 2019 gross receipts.
   • If you opened in Q4 2019, then you may compare your gross receipts from any quarter in 2020 with your gross receipts from Q4 of 2019.
   • If you were not in business in 2019, but you were in business between January 1, 2020 and February 15, 2020, special rules apply to the calculation of your gross receipts for purposes of qualifying for a PPP2 loan.
4. For borrowers that returned all or part of a PPP loan, PPP2 allows for a second loan, but contains special provisions relating to these borrowers.

New allowable uses

As with the PPP, the “allowable expenses” eligible for loan forgiveness in PPP2 include payroll, rent, covered mortgage interest, and utilities. Expanding on the PPP, PPP2 makes the following expenses potentially forgivable, and allows the borrower to choose a “Covered Period” (the amount of time the borrower has to spend their PPP2 loan) between 8 and 24 weeks:

1. Worker protection and facility modification expenditures, including personal protective equipment, made to comply with COVID-19 federal health and safety guidelines.
   1. What does this mean? “Worker protection expenditure” is defined as “an operating or a capital expenditure to facilitate the adaption of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established, or guidance issued by a state or local government during the period beginning on March 1, 2020.” This category includes costs incurred buying staff PPE, building new outside or drive-up dining capabilities, or adding protective measures such as better ventilation or acrylic between tables.
2. Expenditures to suppliers that are essential at the time of purchase to the borrower’s current operations.
   1. What does this mean? This is defined as “an expenditure made by an entity to a supplier of goods for the supply of goods that are essential to the business operation or that is made pursuant to a contract, order, or purchase order.” Of interest to many restaurant owners, this specifically applies to perishable goods.
3. Covered operating costs, such as software and cloud computing services.
   1. What does this mean? Covered operating costs is defined as “a payment for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records, and expenses.” For restaurants, “product or service delivery” jumps right off the pages of PPP2, and we will be paying attention to this as guidance is issued by the SBA and the Treasury Department.
4. Covered property damage costs.
   1. What does this mean? A covered property damage cost is defined as “a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation.”

What you need to provide (specific requirements and acceptable documents may vary depending on the lender)

1. Complete PPP application form.
2. Average monthly payroll cost
   • For Businesses operating for more than one-year, either:
     • your average monthly payroll costs (see below) for the one-year period immediately preceding the loan application date; or
     • your 2019 average monthly payroll costs.
   • For Seasonal business: use any 12-week period between February 15, 2019 – February 15, 2020 to compute your monthly payroll.
3. A good faith certification (a promise) that states:
   • The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations.
   • The borrower will use the loan proceeds only to retain workers and for other allowable uses.
4. Some documents that may be required:
   • 2019 proof of payroll costs;
   • Business information (TIN, EIN, SSN);
   • Owner Information (all owners, title, %, address, TIN (EIN, SSN)).

How much can I apply for?

Most PPP2 borrowers can receive a loan amount of up to 2.5 times their average monthly payroll costs, the same as with the original. Unlike the first PPP, however, the maximum loan amount under PPP2 has been cut from $10 million to $2 million.

PPP borrowers with NAICS codes starting with 72, which includes the vast majority of all restaurants and hotels, can receive up to 3.5 times their average monthly payroll costs, again subject to a $2 million maximum.

What is included in my payroll costs?

Payroll costs DO consist of the following:

• Salary, wage, commission, or similar compensation (for individual employees making up to $100,000 annually);
• Payment of cash tip or an equivalent;
• Payment for vacation, parental, family, medical, or sick leave;
• Payment required for group health benefits, including insurance premiums (employer cost);
• Payment of retirement benefits (employer cost);
• Payment of State or local taxes assessed on the compensation of employees; or
• Paid administrative leave
• Group benefits are defined to include group life, disability, vision, and dental insurance

Payroll costs DO NOT consist of the following:

• Employee compensation for individual employees that exceeds a total of $100,000 in annual compensation (prorated for the Covered Period)
• Payroll taxes and income taxes
• Compensation of employees who reside outside of the United States
• Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116– 5 127) and qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act

How do I calculate my borrowing amount now that I know my payroll costs?

• The loan amount is calculated at 3.5x your monthly average total payroll costs (not to exceed $2 million)
  • Multiply average monthly payroll costs for the one-year period before the loan is made by 3.5.
  • Multiply average monthly payroll cost for 2019 by 3.5.
  • Compare the two products above and select the payroll costs calculation that is right for you.
  • Example: What is the maximum PPP loan that I can receive?
  • Assumptions:
    • 20.33 FTE employee count (more on that below)
    • ~100K monthly sales
    • 16% tip average, and
    • 30% labor cost (no additional costs were considered here)

Setting yourself up for full PPP2 forgiveness

Many of you are likely thinking just because I can qualify for a loan of 3.5 times my average monthly payroll costs, that doesn’t necessarily mean that I should take the full amount. While more guidance is expected from the SBA and the Treasury Department on topics that influence loan forgiveness, our recommendation for local restaurants is to take the full amount you qualify for, and then maximize every penny you spend with an eye towards full loan forgiveness. The following is designed to help you get there.

The goal of PPP2 has not changed from the original PPP: it is designed to get employees back to work (and keep them employed) and to help you pay other allowed expenses during this time of national crisis. Like before, if you create and follow a strategy based on accomplishing these goals, you will be giving yourself the best shot possible of exiting this crisis with an engaged staff and a strong business footing you can build on.

Streamlined forgiveness on loans under $150,000

PPP2 has simplified the forgiveness process for loans of $150,000 or less. As the average loan during the original PPP rounds was $100,000, and the vast majority of borrowers borrowed less than $150,000, this is likely to be the way most restaurants apply for PPP2 forgiveness.

What borrowers will need to do:

1. Sign and submit a one-page certification to their lender stating:
   1. how many employees the loan helped the borrower keep on staff;
   2. the estimated amount of loan that was spent on payroll costs; and
   3. the total loan amount received.
2. Complete an application provided by the SBA.
3. Attest that the borrower gave a truthful Borrower Certification and otherwise has complied with all other PPP2 requirements.
4. Promise to retain relevant records related to employment for four years, and spending records relating to Allowable Expenses for three years, for SBA audit purposes.

Forgiveness process for loans above $150,000

The Senate Committee on Small Business and Entrepreneurship has been given until February 10, 2021, to create the forgiveness process for PPP2 loans in excess of $150,000. We will update this blog as changes are made but to keep yourself safe in the meantime, please see below for more on keeping track of your PPP funds to achieve full forgiveness.

Button up the books

Irrespective of your loan amount, your first step should be keeping a close eye on how you are spending PPP2 loan proceeds. Many lenders in the first round of PPP loans required the establishment of a dedicated account for PPP loan proceeds this allowed many borrowers to keep a close watch on their PPP funds, and to keep their eye on full forgiveness. Different lenders have different rules, however, and practically speaking, for 99% of restaurants, here is what you can do:

• Keep your PPP loan funds separate from any other working capital;
• Make sure that your spending ratio for money received from the PPP loan is always within the 60% / 40% ratio, meaning you are spending 60% of the loan proceeds on payroll expenses, and the other 40% on allowable expenses eligible for forgiveness;
• Keep records of everything you use the loan funds for;
• Spend your PPP2 funds within the Covered Period you elect (between 8 and 24 weeks).

By following these steps, you will have done everything you can to maximize your potential loan forgiveness.

What happens if I must staff less than the FTE level I used to calculate my loan amount?

Many restaurant owners have told us that one of their biggest concerns is: what happens if I have to staff fewer FTE’s during the Covered Period than I used to calculate my average monthly payroll costs? This was a major topic and concern during the first round of PPP funding, made more pressing by government shutdown orders and capacity limitations, and it led to several SBA rules and regulations, Treasury Department guidelines, and the passage of the Paycheck Protection Program Flexibility Act of 2020. With another round of government ordered closings currently impacting markets across the country, you are wise to have this concern at the forefront of your mind while considering what level of funding to request.

In the first round of PPP funding, a reduction in force or a reduction in employee wages of more than 25% when compared to pre-COVID levels created a “forgiveness penalty”: the more you reduced your staffing levels or staff pay, the more you were penalized. Because of the dramatic impact of public health related closings and capacity limits, the SBA, Treasury Department, and even Congress passed clarifying rules, regulations, and clarifications on this topic. The Paycheck Protection Program Flexibility Act of 2020 went as far as to create a Safe Harbor, and an exception to the forgiveness penalty for businesses severely impacted by closings and capacity limits.

Unfortunately, we cannot state unequivocally that the Safe Harbor and exceptions will apply to PPP2 loans: both are tied to dates that will expire prior to the publication of this blog. Without clear specifications that state what to do if employee reductions occur, and how reinstatement will impact the forgiveness calculation, PPP2 borrowers are without clear guidance on this important topic.

Importantly, the SBA is required by the legislation creating PPP2 to issue guidance on this and other topics by January 6, 2021. Further, the PPP2 legislation empowers the Secretary of the Treasury and the SBA to jointly change dates in the CARES Act to effectuate the intent of PPP2. Rewards Network is calling on the Treasury Secretary and the SBA to extend the Safe Harbor and other exception deadlines through June 2021 so as not to unduly burden restaurant owners and other borrowers, and we will update the blog when more information is released.

Tax implications

While we are normally encouraged to stay away from anything relating to tax information, some things have changed since the initial CARES Act that you should speak with your accountant about. During your 2020 tax preparation conversations, be sure to ask about: not including PPP or PPP2 funds in calculations of your table income and the deductibility of expenses paid with the proceeds of a PPP loan.

Unsure where to apply?

There were many lessons learned during the first round of PPP funding, including where and how to apply. Many restaurants reported to us that they had the most success going directly to their day-to-day local bank or credit union for funding, as opposed to a large national bank. Some restaurants had a tough time securing funding with large financial institutions, even if that’s who they typically bank with. If you are having a hard time securing a loan with your bank you can apply through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, or Farm Credit System institution.

Rewards Network has recently partnered with Womply, a local commerce platform who last year helped over 50,000 small businesses apply for and get approved for a PPP loan. If you would like to apply for a PPP loan with Womply, simply click here to start the process.

This best effort analysis is based upon the reading of the Consolidated Appropriations Act, 2021 and known Treasury and Small Business Administration regulations as of December 30, 2020. This is a rapidly developing subject matter, and your personal accountant, banker, and attorney will be best suited to help you determine how this blog applies to your specific business needs. Provided for information purposes only and subject to revision.

Need more information about coping with COVID-19? Check out our free resource section dedicated to advising restaurateurs on how to navigate the changing rules and regulations during the COVID-19 crisis.

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What foods consumers want (and don’t want) during the pandemic

While a salad is often one of the healthiest items on the menu, that’s not what consumers want these days. For example, only 3% of restaurant orders included a side salad this past July, which is down from 4% a year ago.

Instead, the stress of the pandemic is causing many Americans to order high-calorie, comfort food options when dining at restaurants, such as pizza, French fries, and burgers. While these may taste great and give people a temporary mood boost, it ultimately could leave them more depressed if giving into temptation leads to weight gain.

One way restaurants can better serve their customers, while also boosting their revenue, is by creating healthier versions of traditional comfort food recipes.

Healthier comfort food alternatives

First, sit down with your menu and identify popular dishes that could be prepared in a healthier manner. Then, challenge your chefs to adjust the recipes to reduce the amount of calories and fat. Some options to consider while slimming down your menu include:

• Baked “fried chicken” and French fries
• A meatloaf that uses oats instead of breadcrumbs, and ground turkey breast instead of ground beef
• Substituting lower-fat cheeses on pizzas and evaporated fat-free milk in place of heavy cream in sauces
• Plant-based meat alternatives for burgers, meatballs, lasagna, etc.
• Mac and cheese made with whole wheat pasta and half regular, half low-fat cheese
• Buffalo “wings” (subbing in cauliflower for chicken)
• Mashed potatoes made with vegetable or chicken stock instead of cream
• Swapping out regular noodles for plant-based versions
• Vegetarian chili in place of a traditional meat-based chili

It will take some creativity and potential adjustments to your ordering, but these menu tweaks are an excellent way to appeal to your customers’ desire for hearty, satisfying food that is also healthy.

If possible, overhaul your menu so your healthy take on comfort foods is featured prominently and train staff to highlight these options to customers. Consider using photographs of your revamped entrées, and placing these items at the top of the menu or in a highlighted box, so they really stand out.

Mood-boosting foods

While satisfying comfort meals can help customers seeking to pump the brakes on pandemic-related weight gain, there are other ways restaurant owners can help consumers eat better and improve their mood by incorporating a variety of super foods.

For example, eggs contain melatonin, which can help people struggling with insomnia get some much-needed sleep. Black beans are filled with magnesium, which helps reduce anxiety. And yogurt, one of the best sources of probiotics, is a natural aid to help depression. Other foods that you can weave into your menu to help boost your customers’ health and mood include:

• Onions
• Garlic
• Leafy greens
• Whole grains
• Salmon
• Lentils
• Citrus fruit
• Red bell peppers
• Miso
• Kefir
• Beets
• Broccoli
• Turmeric

Highlight these ingredients on your menu whenever possible, including touting their health benefits for your pandemic-weary customers tired of cooking, but ready to embrace better eating habits.

Implementing menu changes

Obviously, overhauling your menu takes time. One way to ease into it is by rolling out new menu items gradually. This could be by introducing revamped meals as a daily/weekly special, and then making a new dish part of your regular menu once it becomes a proven hit with customers.

Restaurant owners might want to also consider creating “grab and go” meal plan boxes featuring healthier menu items that customers can enjoy at home. Allow people to order ahead for the week and purchase one meal or even a week of meals (with discounts or other incentives for customers who purchase a full week’s worth of food).

Promote your healthy offerings on social media to drive awareness of your slimmed-down comfort classics, including availability/ordering information if you decide to allow customers to pre-order meals. You also might want to consider partnering with a delivery service or implementing your own delivery service to drive more sales of your healthy classics.

To discover more restaurant marketing strategies and tactics that can help your business during COVID-19, take a look at our free e-tool, “Coronavirus era: 13 restaurant marketing tips.”

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Stay warm

The number one concern of patrons that choose to dine outdoors in cooler weather is staying warm. As a business owner, this should also be top of your list since the more comfortable and content guests are, the longer they will stay, and the more money they will spend. There are a variety of cost-conscious heating options that can work well on a restaurant patio.

Tents: Tents or transparent wind-blocking vinyl curtains can prevent harsh rain and snow from infringing upon your guests’ dining experience. This will also allow your outdoor dining space to be completely useable during harsher weather conditions (rain, wind, and snow) without obstructing views. And, it gives you the ability to remove the tents/sheeting for warmer weather use as well.

Heaters: Electric, gas, or propane heat lamps and infrared heaters can be a viable solution that restaurant owners can rent or buy. These commercial heaters can be situated around tables to ensure guests remain warm and comfortable throughout their entire meal. Of course, it’s necessary to check local/state laws as they pertain to off-premise electrical and heat sources in your area to see if this type of solution is allowed.

Fireplaces: Outdoor fireplaces can serve double duty by acting as a heat source, but also a key differentiator and selling point in a restaurant. Portable firepits, fire bowls, and fireplaces create the perfect warm and cozy ambiance that customers are craving during cooler weather months. Plus, they are typically inexpensive to run for long periods of time.

Blankets: A great way to promote your brand and keep your guests comfortable is to sell branded blankets, hats, and scarves. This way, people can rest assured that the items are clean and new (still in the packaging) and these pieces act as great traveling “billboards” for your restaurant — getting your logo and name out into the world for other people to see.

Get cozy

Furniture and purposeful accent pieces are what make any design exude the desired aesthetic and feeling. During these chillier months aim to make your restaurant’s patio a relaxing and inviting oasis for customers.

Furniture: Nothing prompts people to kick back, relax, and stay awhile like oversized lounge-style furniture. Try incorporating some large patio sectionals, chairs, and couches that have overstuffed cushions and soft pillows.

Lighting: Soft, subtle lighting can further add to the comfy and cozy vibes of your outdoor dining space. Affordable solar-powered fairy/twinkle lights, flameless (battery powered) flickering candles, and electric lanterns can add the perfect amount of mood lighting to any table or space.

Décor: Small, subtle touches can go a long way in curating a welcoming environment. It’s a good idea to add seasonal design elements like pumpkins, branches, evergreen trees, pine garland, and any other home décor items that can add a bit of texture and warmth. This can help guests embrace and enjoy the cooler weather and seasonal shifts.

Unexpected elements: Featuring something unique and unexpected in your outdoor dining area is a great way to catch a passerby’s eye. For example, some restaurants in cooler climates are testing outdoor pop-up igloos that are cleaned and sanitized after each use. Get creative and think outside the box for inexpensive ways to transform your outdoor dining space with savvy structures.

Shift the menu

Cooler weather will have people longing for hot drinks, fall-inspired flavor profiles, and warm comfort food. Consider shifting your typical menu items slightly to spur increased food/drink orders during outdoor dining this fall and winter. Take stock of what ingredients you already have on hand and get creative with how you can tweak them to fulfill seasonal expectations and tastes.

Hot drinks: Offering hot and comforting drinks that contrast the cooler weather can further add to a positive outdoor dining experience. Hot apple ciders, mulled wine, hot toddy cocktails, and warm espresso and coffee creations can get customers in the mood to bundle up and dine outside in colder weather. You can even explore the option of serving these hot libations in insulated branded thermoses to ensure they stay hot for the duration of your guests’ stay.

Seasonal flavors: Add a seasonal twist to some of your current menu items by incorporating flavors people associate with fall such as allspice, cinnamon, cloves, and nutmeg. Warm and comforting foods like three-bean chili, butternut squash bisque, apple cider doughnuts, and grilled cheese with heirloom tomato sandwiches are sure to leave your outdoor dining patrons asking for seconds.

Promotions: To encourage even more outdoor dining food and drink purchases you can test different specials and happy hour times. Play around with featuring various on-promo menu items and happy hour days/times to see what works best for your outdoor dining setup. Also, if you have firepits, offering a complimentary smores kit with any entrée purchase is a great method for potentially increasing sales, while allowing customers to associate your restaurant with a distinctive experience.

Amp up entertainment

The final piece of the puzzle to a budget friendly and successful alfresco dining experience is the entertainment. Since the weather will be a bit cooler, sitting around outside chatting may not cut it, so it’s time to get inventive when it comes to entertaining your guests.

Bluetooth speakers: If you’re able to implement individual tents or igloo structures, having a Bluetooth speaker available in each is a nice added touch. This allows guests to choose and play their own music from their phones without you having to stress about an outdoor dining music solution.

Games: Investing in jumbo-sized games like Jenga and Connect Four can provide entertainment for guests all year round. You can also offer playing cards, checkers, and any other nostalgic board games to encourage people to stay awhile — being sure to thoroughly disinfect the games after each use.

Holiday movies: Everyone has that one movie they love watching during the holidays. If feasible, consider setting up a large projector outdoors to play popular holiday movies. You can add a few special snacks and drinks like buttered popcorn, candy, slushies, and nachos to give your guests the real “drive-in movie theater” experience. Remember to check copyright laws and act accordingly before advertising and showing movies on premises.

Embrace the cooler weather

The overall key to curating an outdoor dining experience that won’t push you over budget is to find ways to resourcefully embrace and showcase all the positive aspects of cooler weather that people already enjoy. A cozy and inviting environment, paired with warm comfort food and hot seasonal drinks, along with killer entertainment will have your guests focused on the great time they’re having rather than the slightly chillier temps. Repurpose and reuse ingredients and other resources that you already have in house when possible to further cut down on costs. COVID-19 has undoubtedly forced restaurant owners to be hyper creative and focused on developing safe, sustainable, and profitable dining solutions for their guests. As a business owner, aim to glean key insights and learnings from these challenging times that you can implement in the years to come, long after coronavirus.

To discover more restaurant marketing strategies and tactics that can help your business during COVID-19, take a look at our free e-tool, “Coronavirus era: 13 restaurant marketing tips.”

The post How to prepare for outdoor dining during cooler weather appeared first on Rewards Network.

To help restaurant owners prepare for the fall/winter season, we conducted a survey of consumers to learn more about what they anticipate their dining habits will look like during the upcoming months.

The goal of this survey is to provide a nationwide snapshot of consumer sentiment around restaurant dining in the near future. However, there a few important caveats we want to share before we dive into our analysis. First, cooler fall/winter weather will obviously only impact certain parts of the country, so it stands to reason that a restaurant in Maine will face more challenges with winter dining than a restaurant in Florida. In addition, restrictions on restaurants can vary widely by state, and even municipality. For example, restaurants in Georgia re-opened with no restrictions back in June, while New York will not allow indoor dining until September 30, and then with capacity capped at 25%.

Consumers’ projected dining-out frequency

We started out by asking our survey takers how often they expect to dine out at restaurants this fall/winter, and what factors will impact their decision to dine out (or not). When it came to whether they would dine out more or less than last year, it was pretty evenly split, with slightly more than half saying they will dine out the same or more than in years past, and slightly under half saying they plan to dine out less. The vast majority, 75%, said they plan on dining out at least biweekly, with 30% saying they plan to do so five or more times per month. However, about 7% of respondents said they anticipate rarely or never dining out at a restaurant during the fall/winter season.

What are the primary reasons that some respondents cited for their plan to dine out less frequently? Unsurprisingly, the overwhelming top response was fear of catching/spreading COVID-19. The next top vote-getter was a reduction in dining due to a corresponding reduction in travel, which makes sense given that many of our members are frequent travelers who dine out more when they travel. Only 18% said it will be to save money, so economics do not appear to be playing a major role in this anticipated decline. Another notable finding was that only 13% said it was because they now prefer takeout/delivery. This tells us that to-go ordering has not replaced a consumer preference for dining out, and when the virus risk is mitigated, many customers are likely to return to restaurant dining rooms.

What it means for restaurants

Barring a dramatic decrease in coronavirus infections, U.S. restaurants are very likely to have fewer dine-in customers this fall/winter than usual. With decreased demand, it will be imperative for restaurants to deliver impeccable experiences to keep guests coming back, and to encourage positive reviews (especially important during a time when prolonged isolation is causing many people to be more active online). Restaurant operators should also focus on remarketing to guests through email or other means, as well as offering return visit incentives to keep customers coming back.

While nothing can replace the experience of dining out, restaurants should continue to invest in providing superior takeout and delivery services, as this will likely be the only way many consumers will feel comfortable consuming restaurant meals for some time. Another potential revenue generator is offering meal kits that customers can cook at home themselves. The rise in popularity of meal kit services such as Blue Apron, Freshly, and Purple Carrot has already proven the potential of this model, and many restaurants are already reporting success engaging with their customers in this way.

A final piece of advice for restaurants is to invest in a user-friendly reservation system. Whether partnering with a third party or launching your own, it’s important to make it as easy as possible for customers to book a table at your restaurant.

The importance of making guests feel comfortable

While most restaurants are going above and beyond to ensure that customers feel safe in their establishment, we wanted to find out what consumers’ comfort level is when it comes to dining out now compared to in the first few months of the pandemic.

The results were pretty evenly split, with 32% of respondents saying they feel less comfortable dining out now. This could be signaling continued uneasiness among some members of the public due to spikes in coronavirus cases across the country. However, 35% said they feel the same level of comfort and 33% responded that they feel more comfortable than in the earlier stages of the pandemic. Possible contributing factors for the increased comfort level could be enhanced dining room safety precautions as well as rising risk tolerance as most consumers have gotten a few positive dining out experiences under their belt.

We then looked a little deeper at consumer sentiment on indoor dining by asking survey takers how comfortable they are dining indoors at a restaurant that takes the proper safety precautions. There were a significant number of respondents on both ends of the spectrum, with 24% of respondents choosing very comfortable, and 19% selecting very uncomfortable. However, most people tended to land somewhere in the middle, with about 57% saying they were somewhat comfortable or somewhat uncomfortable dining indoors.

So, what is it going to take to make consumers feel safe dining inside? We asked them which dining safety initiatives are most important to them. The top responses were not surprising, with the majority overwhelming citing socially distanced tables, frequent sanitation, and staff wearing personal protective equipment (PPE). The “no-touch” options, including no-touch bathrooms, hand sanitizer stations, and touchless ordering, were not as popular among respondents. This could the result of the growing evidence that transmission occurs primarily by air, as well as the fact that many people have already become accustomed to washing their hands more frequently and/or are carrying around their own hand sanitizer.

What it means for restaurants

The majority of people fall somewhere in the middle, feeling either cautiously optimistic or somewhat skeptical about dining out. This group can likely be persuaded to dine out, but will need restaurants to demonstrate that basic safety standards are being followed in order to feel comfortable. They may also need to have an exceptional experience to feel that it’s worthwhile to return. This further highlights the need for restaurants to pay close attention to details in the end-to-end dining experience: from the reservation, to the meal, to the service.

Also worth noting is that 32% of survey takers chose outdoor seating availability as a factor in their dining-out comfort level. Many consumers prefer eating outdoors these days, so we asked how comfortable they anticipate they will feel dining on a climate-controlled patio in the winter. The majority of respondents said they would feel very comfortable or somewhat comfortable. Only 14% said they would feel very uncomfortable, with a quarter of respondents saying they would be somewhat uncomfortable (they can probably be persuaded to at least try it). It will be interesting to see how consumers actually respond to the prospect of dining outdoors as the weather grows colder in many parts of the country.

Takeout and delivery: a fast-growing and critical component for restaurant success

Many restaurants have been forced to rely heavily on takeout and delivery since the start of the pandemic, and will likely continue to do so. In fact, when asked how often they plan to order takeout or delivery this fall and winter compared to in previous years, more than half of survey respondents said they will order more than usual, with only one in 10 saying less than usual. This further solidifies the evidence that the demand for takeout and delivery orders will continue to grow.

We next asked our respondents what factors mattered most to them when it comes to the takeout and delivery experience. The top choice by far was having a culinary experience similar to eating at the restaurant, followed (not surprisingly) by restaurants and delivery drivers following proper safety protocols, price, and ease of ordering from the restaurant.

One thing worth noting is that only 13% of respondents said that ordering from their favorite delivery app was important, but 38% said that the ability to easily order from the restaurant website mattered to them. That makes sense, since when we then asked how they prefer to order takeout or delivery, 81% of survey takers said they prefer to order directly from the restaurant. This may not be surprising given that total order price was a top choice in the most important takeout/delivery factors, and most third-party delivery apps charge additional fees to use their service. Another possible factor could be growing consumer awareness regarding the sometimes hefty charges restaurants are forced to absorb from these third-party orders, resulting in a growing preference for ordering directly from the establishment.

What it means for restaurants

When it comes to to-go orders, consumers are increasingly expecting to receive a meal at a reasonable price that travelled well (perhaps with reheating instructions), and was delivered in a safe manner. It’s important for restaurants to not waver in meeting these to-go expectations, as one sub-optimal meal could cost them a customer (or more, if that customer goes on to share their negative experience with others).

Since takeout and delivery will likely continue to play a major role for the foreseeable future, restaurant owners need to closely evaluate their per-order costs, and consider dropping third-party providers that cause too big a hit to their bottom line. Owners should also examine the economic feasibility of launching their own delivery service, which could be much more profitable in the long run. And, as mentioned previously, they need to ensure that the ordering experience is as easy and intuitive as possible for customers.

Finally, restaurants should develop a cohesive remarketing strategy. Although nearly half of respondents indicated that they try new restaurants somewhat often or very often, nearly half said they rarely do. This is why remarketing to existing customers should be a critical component of any restaurant’s marketing strategy.

Incentivize guests to choose your restaurant

To find out how heavily incentives impact consumer dining decisions, we asked our survey takers how much they weigh the ability to receive reward incentives for dining out now compared to before the pandemic. Nearly half responded to say that it’s even more important than before, with almost the same percentage saying it carried the same importance as before. Only 5% said it was less important.

What it means for restaurants

Earning rewards for dining out or ordering takeout/delivery is becoming even more important to consumers. Restaurants that aren’t already offering some kind of loyalty program should consider creating one, especially as consumers have tightened their grips on their wallets. Restaurants with a loyalty program should also highlight the benefits while remarketing to guests.

Author’s Note: At Rewards Network, we can market your restaurant to members of some of the biggest loyalty programs—including United®, Hilton®, American Airlines, and Marriott Bonvoy®—aligning your restaurant with these trusted brands while helping you fill your tables (and your to-go orders) with full-price customers.

Conclusion

Restaurant owners are smart, savvy, and scrappy. Although the current environment poses many obstacles to success, restaurant owners can survive (and potentially even thrive) by being hyper focused on the customer. Paying attention to every little detail during the dining-in experience, while offering easy, affordable ways for customers to place a takeout/delivery order, could be the ticket to success in the COVID-19 era.

Looking for more suggestions on navigating the current and post-COVID world? Be sure to browse our dedicated COVID-19 restaurant resource section and follow us on Twitter.

We conducted this survey of members of AAdvantage Dining^SM, Caesars Rewards Dining, Rapid Rewards Dining®, and MileagePlus Dining^SM for approximately one week in early September. Members of AAdvantage Dining^SM and MileagePlus Dining were awarded bonus miles for answering the survey questions honestly and completely. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.

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