When's the best time for reservations?

One thing is certain in the restaurant industry, and that's change. In today's edition, we're talking about some of the latest industry transitions, like those happening across tipping, reservations and Michelin Awards.

But before we get started, if you need a moment of calm as you face these changes, not to mention the holiday rush, may we suggest this delightful video of the U.S. Surgeon General peeling a mango all in one piece?

Ok, now back to the grind.

On the menu:

💠 Pandemic-related restaurant closures continue
💠 If diners wrap up leftovers, do you judge?
💠 A Denver-based restaurant group reveals its secrets
💠 What's bolstering the beverage boom?

What’s on our radar: Michelin stars and Bib Gourmands for restaurants in Chicago, Washington, D.C. and New York were announced last week. 

But does a Michelin star matter? While Michelin’s relevance today is certainly debatable, Eater’s recent interview with Gwendal Poullennec, director of the Michelin Guides, highlights how the guide has evolved with the restaurant scene in the U.S. 

The trend on our radar: Speaking of Michelin, restaurant groups that have been awarded Michelin Stars in the past, such as Momofuku and Carbone's Major Food Group, are dialing up their CPG growth. 

What we’re keeping an eye on: Restaurants shuttering around the country. Three popular Colorado Springs food businesses — Mountain Shadows Restaurant, Mark Anthony’s Pretzels and FH Beerworks — announced closures over a two-day period last week. The owners of Mountain Shadows Restaurant, which has been featured on Food Network’s Diners, Drive-Ins, and Dives, noted that difficulties resulting from the pandemic contributed to its closure. 

Plus: Do you judge diners who take home leftovers?

It's a good time for reservations

Toast released reservation research for Q4 2024 and found a few trends that should be positive for restaurants. Full-service restaurants on the platform saw an uptick in reservations for Mondays and Tuesdays and a slight decrease in Saturday reservations. One possible reason? Avoiding the weekend crowds, Toast told Restaurant Business. Earlier reservations were also growing in popularity, with an increase in reservations at the 5 and 6 p.m. slots, perhaps due to more flexible work schedules. While Tuesday at 5 p.m. hasn’t become the new Saturday night for restaurants, these small consumer shifts do help smooth out traffic spikes and make it easier to keep service consistent. (Toast)

What tips mean to servers today  

Tips make up less of restaurant servers’ income, new data from ADP Research shows. Base wages now make 43% of a server’s paycheck on average — up 35% as a share of income from January 2020 to September 2024. Recent changes to wage and tip laws don’t tell the whole story of this change, senior editor Joanna Fantozzi writes in Restaurant Hospitality. Labor costs spurred by shortages a few years back contributed as well. While labor competition has cooled, “the gains workers made during 2021 and 2022 have been baked into the market,” researchers note. Of course, at high-end restaurants, tips tend to make up more of a server’s pay. And those tips could increase under another Trump presidency, some in the industry say. (Restaurant Hospitality) 

97%

of full-service restaurants plan to expand in some way in 2025

(TouchBistro's 2025 State of Restaurants Report)

💠 How Trump's deportations could affect the restaurant industry

💠 A food waste for foodservice professionals webinar

💠 The restaurant beverage boom is expected to continue

"The whole purpose of a restaurant is to enlighten the community it has the privilege to serve."

-Peter Newlin, co-founder and partner of Denver-based Gastamo Group

(🎧The Take-Away with Sam Oches)

Thank you for reading The Prep.

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