The generational restaurant divide

In the restaurant world, staying ahead means understanding both your employees and your diners. This week, we’re looking at how engagement impacts employee retention, plus new data on how different generations choose where—and how—they eat. Plus: A seasoned Memphis restaurateur shares his no-nonsense approach to surviving tough times, and we explore the legalities of managers taking tips. But first: Check out this restaurant opening inspired by "The Office."

Nest eggs. Faced with the ongoing egg crisis, small restaurant owners whose livelihoods often depend on their weekly egg deliveries are getting creative. This includes using liquid and powdered eggs, and creating more inventory that doesn’t require eggs at all.

Keepin’ it real. Authenticity is the buzzword du jour, which is why storytelling has become such an integral part of restaurant menus. Some restaurateurs are sharing how they connect emotionally with diners.

The next big thing. As Netflix drops its trailer for “Chef’s Table: Legends,” many are asking who the next José Andrés or Alice Waters will be. But the better question is, who’s shaping food culture?

Gray matter. Indulgence and thrift. Technology and traditions. Restaurants that embrace the paradox of what diners want will be the ones that thrive in 2025.

Nottie-to-hottie. From Thai chilis to MSG, here are chefs’ secret weapon ingredients.  

'You have to know your costs'

The seasonal ebb and flow of diners is often stressful for restaurants, which inevitably see a decline, however small, in customers. It’s just part of doing business. And just like any other stress, albeit a recession, pandemic or rising prices, a seasonal lull requires restaurateurs and staff to be extra nimble.

Kelly English, a former Food & Wine Best New Chef, operates three restaurants and a catering business in Memphis, TN. And he’s sharing his secret sauce for weathering revenue storms. -Julien Perry

What's your biggest "restaurant survival" tip?
You have to know your costs even if it means doing math every day. Your biggest responsibility is as a provider of jobs and you must protect them. I also believe in the intangible aspects of value: get out and talk to your tables, do cooking demonstrations, do things that do not cost a cent but add value to your guests’ experience.

What's the best piece of advice you have for restaurateurs who are stressed out about filling seats?
You already know deep down what is wrong. If there are dishes that need to be fixed you know that, so fix them. If service needs to be fixed you know that—fix it. The most important thing you can do is connect with your guests; you either need to be present or have a dynamic general manager that can connect with them.

What's something restaurateurs can do right now to help increase business?I find being honest with the public really goes a long way. I will make social media posts explaining what an omelet will cost and why during our current egg crisis, which people find interesting. I cannot stress engagement enough. 

Are restaurant managers allowed to take tips?  

If a manager fills in for a server who calls out sick—performing the same duties and receiving tips, just like the server would—are they allowed to keep the gratuity?

The answer: It depends on the employee’s classification and primary duties, but generally speaking, no. Technically, only non-exempt supervisors can share in a tip pool.

This issue is discussed in a recent opinion letter from the Department of Labor Wage and Hour Division (WHD), clarifying who is legally able to participate in tip pools under the Fair Labor Standards Act (FLSA).

Why it Matters: Staffing shortages are an ongoing issue in the hospitality industry, and before a manager fills-in, it’s necessary (and smart) to understand who can legally share tips in order to maintain employee trust and thwart potential financial penalties. (Hospitality Net)

The secret to keeping your frontline workers happy

Restaurant employees who are engaged are happier and less likely to quit. That’s according to a new report by goHappy, a text message-based platform that allows employers to communicate with their frontline teams.

The report found that the turnover rate fell from 99% to 85% in companies where 75% of frontline workers were engaged. That means that a company of 500 workers would save about $329,000 annually, according to The Society for Human Resource Management.

The founder and CEO of goHappy, Shawn Boyer, says a lot of employee frustration comes from scheduling, whether that be last-minute schedule changes or not enough hours. Workers also reported that they often face challenges when it comes to communication, recognition and work-life balance.

Why it Matters: Employee engagement directly impacts performance. When employees feel valued and supported, they’re more likely to emotionally invest in the company, which means better work performance, reduced turnover and customer satisfaction. (Nation's Restaurant News)

Survey: How different generations are dining out

A new survey reveals how U.S. adults choose and enjoy their dining experiences. Eater and Vox Media surveyed more than 2,000 U.S. adults to get an idea of their dining habits. And while not all of the results are eye-opening, some are certainly surprising.

The survey covers how diners discover new restaurants (including what sources they use for recommendations), what diners want to get out of their experience (including social media fodder), how price factors into decision making and what food trends are on the rise. 

Here are some key takeaways:

• Price plays a major role in what diners choose from a menu. In fact, 33% of diners are choosing less expensive menu items these days and 29% are completely led by budget constraints.
• Most Boomers (90%) and Gen Xers (79%) rank comfort and relaxation in the top three experiences they seek when they dine out. Millennials, on the other hand, are more likely (48%) to seek out culinary exploration.
• Younger diners tend to find out about new restaurants through social media: 77% for Gen Z and 67% of Millennials. Independent restaurants are favored by 42% of diners, while 29% favor chain restaurants.  

Why it Matters: Survey results like these are essentially a window into the soul of a diner. These numbers can help shape a number of internal restaurant decisions, from menu composition and price, to flavor profiles and social media marketing. Knowing what diners want makes it easier for restaurateurs to cater to their needs, while potentially moving outside of their own comfort zone. (Eater) 

48%

Number of adults say they’re not dining out as often as they’d like.(Restaurant Business)

💠 This woman keeps Chicago restaurants pest-free 

💠 Restaurant marketing is a long game

💠 How a Texas Chinese restaurant thrives after 86 years  

💠 Why you should consider in-house catering

“If you don't have the trademark, or if you start your business and you're infringing on someone else's, it will cost you so much more money and aggravation down the road." 

– Hospitality lawyer Christy Reuter, on the importance of branding and trademarking your restaurant.  

(🎧Restaurant Influencers)

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