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

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Restaurant franchises and chains are an economic investment that needs to be carefully studied. A potential investor or overseeing company should pay attention to the economics of the whole store and what contributes to their overall profitability. Often times the corporation becomes solely interested in how much revenue is being sent to them from franchises or individual stores and how much each unit is making. They should spend more time on looking at how well each store is doing instead.

Read more: What Restaurants Need to Know about True Unit Economics

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A new trend in the beverage industry that is taking people by storm is the cold brew coffee trend. Many people are switching for the decrease in bitter flavors and acids. Although the method to make a cold brew coffee is simple, it is a time consuming process that takes over 16 hours. There are many types of cold brewed coffee listed here and it seems that the flavor is based off the method used to brew the coffee. It is best to just find the coffee you enjoy the most.

Read more: Cold brew remains a hot trend

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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/

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