Restaurant stocks have exploded since the election. They have been lead by the very big companies and the stocks have risen by 25 percent since November. The presidential election was very good for the stocks in restaurants. Many big restaurant companies have seen a large boom recently. McDonald’s and Texas Roadhouse are two places that have gotten a huge push. Many of these companies have earned investor confidence and that is a really good sign for these companies.

Key Takeaways:

• To be sure, the market as a whole has skyrocketed over that time, rising 14 percent, according to the S&P 500 index. Still, restaurants are outperforming the broader market.
• Much of the industry’s strength is coming from the top. Several big restaurant companies have seen strong performance this year.
• McDonald’s Corp., for instance, hit an all-time high and passed $150 per share for the first time in company history.

“Since Donald Trump won the presidency in November 2016, restaurant stocks have risen 25 percent.”

Read more: http://www.nrn.com/stock-data/restaurant-stocks-have-exploded-election

The Union Square Hospitality Group is eliminating tips in their establishments. They plan to have all of their New York full service restaurants on this new policy. This policy is intended to improve retention of employees and improve fairness in wages. The tips are made up in employees’ wages by taking the tip line off of receipts and raising the price of menu items instead. This model has been working well so far and proponents of this policy believe that it is beneficial to employees because they will always be paid. Staff that rely on tips are always taking the chance that guests will choose not to tip.

Key Takeaways:

• Tipping can be a deterrent in customer service and companies can succeed without it.
• Raising menu prices may seem ineffective until the customer realizes saving in tipping.
• No tipping is mostly done in fine dining restaurants but can also be implemented in others.

“Meyer and his team eliminated the tip line on checks and raised menu prices in a model the company dubbed “Hospitality Included.””

Read more: http://www.restaurant-hospitality.com/back-house/union-square-hospitality-group-sees-progress-no-tipping-policy

In a 7 to 1 vote Seattle voted for there to be a tax put on sugary drinks. This includes anything from juice to soda. It will cause a 12 ounce soda to cost 21 cents more. This tax however will not affect drinks with milk as the main ingredient. Small business owners are not happy. They claim they were not thought of or included in this decision and this will hurt all small businesses in the end. The purpose of this tax is to raise 15 million to help support the cities food stamp program, and to encourage those on it to buy more fruits and vegetables.

Key Takeaways:

• the Seattle city council approved the new tax on Monday, which proponents say will reduce consumption of sugary drinks, particularly in lower-income neighborhoods with high rates of childhood obesity
• After much debate, the council approved a tax rate of $0.0175 per fluid ounce, which means a 12-ounce soda will cost an additional 21 cents.
• The tax is reportedly expected to raise about $15 million to help support a city food stamps program that encourages people to buy more fruits and vegetables

“Seattle joins a number of cities and counties that have taxed sugary drinks, including Berkeley, Calif., Philadelphia and Cook County, Ill., which includes Chicago.”

Read more: http://www.restaurant-hospitality.com/drink-trends/seattle-approves-tax-sweetened-beverages

Loyalty programs are a great way to retain current customers and encourage engagement with the business. Engagement means that the customer has an emotional or psychological attachment to the product or brand. This is very important in the restaurant industry. Loyalty programs can provide engagement if used correctly. Pizza Hut has been successful because their loyalty program is a custom app that gives customers points to use and provides visuals of the product. Points accrue when a customer has take out or dines in. Pizza Hut’s loyalty app also encourages users to visit the social media page for more interaction and makes it easy to share content and promotions with others. A well designed app and loyalty program will engage customers and bring in new business.

Key Takeaways:

• More businesses are now realizing the importance of customer loyalty, especially in the restaurant industry
• Pizza Hut makes sure that its mobile app solution is interactive, effective and differentiates from other programs
• The company’s loyal customers are incentivized with loyalty points to recommend Pizza Hut on social networks

“Although many restaurant owners are investing their resources into customer loyalty programs, many of these solutions are not tailored to drive customer engagement and build deeper relationships with consumers, failing to bring real business results”

Read more: http://www.restaurantnews.com/pizza-hut-drives-customer-engagement-with-its-mobile-loyalty-program/

For many restaurants today, it isn’t enough to just provide hungry customers their food, now it’s important that they provide their customers a dining experience that they will never forget. This is the world of today’s experience economy. Today’s young consumers want experiences instead of things and restaurants should adapt to these people by providing not just food and beverage but also add or improve areas such as their restaurant’s environment, technology, service, and special events for an unforgettable dining experience. Some of the ways to provide this new dining experience include: giving a show to demonstrate to the customer how their food is made, using technology to make ordering easier and faster, and giving guests control over their food so they can customize it to their needs. It’s clear that young consumers are now looking to get their money’s worth out of these experiences, so most restaurants should invest in these experiences.

Key Takeaways:

• You want to impress the consumers by giving a memorable show and making them enjoy their time there.
• You want to give the consumer exactly what they want and follow the culture of the area, while adding a personal touch.
• Be sure to use technology to your advantage. Make it easier for the consumer and the company.

“Instagram, Twitter, and their social media brethren have unquestionably accelerated the experience economy, compelling restaurants to make visits more eventful, fun, and authentic to ignite online sharing.”

Read more: https://www.qsrmagazine.com/guest-experience/10-ways-leverage-experience-economy