The latest headlines and features from the editors of FSR Magazine.

Christine Barone, CEO of True Food Kitchen, brings a spirit of innovation to this new chain store.

Inspired by fast leisure, but capable of providing more functions, a movement is taking place among full-service restaurants, which may change the experience-oriented dining as we know it.

With the advent of the 1990s, no one mistaken the catering industry for a complex field. There are fast food, buffets, pizzas, and a variety of sit-in restaurants-fine, family, casual, and independent restaurants all over the United States.

In some ways, the market feels like an exclusive party where no one can get an invitation. Opening a new restaurant is expensive and risky. The traditional view is that the ratio of sales to investment is at least 2 to 1. But when operators add up the costs of soil, buildings, furniture, fixtures, and equipment, their capital needs will far exceed $1 million. In the face of a competition with giants, the sales of opening a new restaurant are expected to exceed US$2 million. This is something that even the most well-meaning entrepreneurs have to seriously consider.

Join the NextGen leisure revolution: This twice-monthly email will debut in 2022 and will bring you the latest news and events in this field. 

However, although this pattern is firm, in fact consumers have begun to push for more. It has led aspiring restaurant owners to seek online rental real estate, which can be developed more affordable if not developed as traditionally. This fertile land ignited the fast-growing concept of pizza and sandwiches. It is about to become another thing-the incubator of "fast leisure" that was later created.

By 1993, a former American Culinary Institute graduate and a San Francisco first-line chef had transferred his father's $85,000 loan to Chipotle, and assembly lines and ingredient promotion methods were not commonly used in counter services. Within a month, Steve Ells sold 1,000 burritos a day from his original location in Denver. Countless concepts reflect Chipotle's approach and set off a gourmet feast after the Great Depression in 2010. Lower barriers to entry, reduce red tape, and let bold ideas waver in the formulaic world of fast service.

Firebirds Wood Fired Grill plans to grow stronger after responding to COVID.

According to industry consultant Pentallect Inc., in the next five calendars, fast leisure has grown by 10-11%. Today, it accounts for approximately 18% of the revenue of the entire limited service category.

Why this happens is not a big mystery. High-quality decoration, higher-quality food, and higher-level service are what the new generation of experience-oriented diners want. Just as Shake Shack was vividly introduced to the market in the mid-2000s, we need to pay attention to how millennials view their brands; from the background stories of the food suppliers on the menu to the music playing in the background, they feel a good sense of belonging and recognition feel. 

However, what changes the status quo is that all of this is proved possible without giving up convenience. Or be asked to empty your wallet.

In turn, fast leisure spins the wheel of quality in fast service, forcing even the largest and oldest chains to pay attention to freshness, sustainability, and the information they sell to customers. The food used as fuel is dead.

As history often happens, this journey has begun to repeat itself. Until now, it is the full-service industry that has witnessed one of the most transformative periods in its history. In recent years, this movement has been heating up as the casual dining icon withdrew from the footprint of excessive leverage during the rise of millennials more than a decade ago. It was severely shaken by COVID-19.

Take full advantage of this climate, flourish and evolve today, not complying with the accepted rules or restrictions accepted by the pre-defined definition of restaurant appearance. Think of a streamlined menu. Clean, fresh, and desirable food. Adaptable, flexible and dynamic footprint. Entrepreneurship culture. Technically ready and proficient off-site. The hybrid model is not afraid to cross market segments.

Just like fast casual wear, these brands also act as change agents for the entire category, setting new standards for employee care, culture, sustainability, supplier relationships, and expansion prospects. You've seen this in big-name brands such as Outback Steakhouse and Chili's, which have reduced their menus to support better execution. Or Applebee and its recent renewed focus on value and core stocks. As fast snack food as fuel, this emerging full-service market segment has weakened the mindset of casual chains that grabbed everything a few years ago for everyone.

But what do you call it? Some people refer to this group as "exquisite" or "upscale" leisure, but these two terms are not widely understood or used by consumers, and often obscure a key element: better food and better service. Accessibility and accessibility at an affordable price point. Once again, fast leisure changes everything.

The greatest opportunity for these full services is to satisfy the ever-changing customer preferences brought about by fast leisure, while also satisfying the desire for experience in a way that the concept of counter service will never be able to satisfy.

In short, the old classification did not achieve sports justice.

The NextGen casual restaurant has achieved a new balance in all aspects of its own, focusing on some previously neglected aspects, while also reducing the burden of other functions that have long been the backbone of casual dining. The common denominator of tradition and NexGen leisure brand is the commitment to hospitality and the driving force for development.

Therefore, at FSR, we decided to label the future of full-service: NextGen Casual. In the next few months, we will pay more attention to the emerging industry and track how it grows, evolves, and, importantly, how it affects everything around us, from high-end dining brands becoming more approachable to leisure giants strengthening Their games. 

If you consider yourself a casual NextGen restaurant, we would love to hear from you. We see this industry as any full-service brand with 5 to 200 units and plans to grow, chef- or quality-oriented, sustainable development, modern, modern decor, and ingredients. The check price is between 12-24 US dollars. Between range.

But first, let us introduce some of the leading players of NextGen Casual, what makes them successful, and how they view the full-service industry in the future.

Chart editor's note: FSR worked with Bruce Reinstein and Tim Hand, partners of Kinetic12 Consulting, a Chicago-based food service and integrated management consulting company, to grasp the factors that are important to the NextGen casual restaurant brand and which opportunities are worth investing in this stage of the pandemic journey . Kinetic12 conducts online surveys of 100 senior executives from leading emerging and growth chains every quarter, and then conducts one-on-one interviews. This study investigated 23 brands.

Once, the executives of True Food Kitchen held a brainstorming meeting. CEO Christine Barone said that the reality is that there is no nickname to summarize what the brand offers and represents: a restaurant based on science and an anti-inflammatory food pyramid-the brainchild of its founder, Dr. Andrew Weil. “We say it feels like'conscious leisure',” said Baron, a former senior vice president of food at Starbucks, who joined True Food Kitchen in 2016.

"I think in the catering industry for so long, experience is all about providing service. It's really a bit similar in the whole range, but the way it is executed is different. And delicious food. But I think what the next generation concept offers, and how I How to see ourselves, we are making great food, great service, and we are taking this experience to a truly different level."

"And," Barone continued, "when you walk through our door, you really distinguish ourselves from our mission."

For decades, casual dining has been adhering to a comfortable concept: you can walk into a restaurant in any town, any time, and any date. This experience is like putting on your favorite sweater. When Shake Shack (and others) chose to "unlock" the multi-unit experience to reflect independence and the localization of food, it fell apart. In addition, driven by social media, young consumers are beginning to care more about their ability to become brands. They sniff out dishonesty from big companies. Maintaining neutrality on social issues is a major red flag.

Therefore, the idea that a package approach will appeal to a generation obsessed with self-expression is a trivial idea at best. You either have to give them a group that belongs to them, or you risk becoming culturally agnostic.

When Barone joined, True Food Kitchen had 12 stores. There are now 39, and each looks a little different. "In the past, it was like, here is an art project, there are things you can choose from here, and you might walk into Topeka, Kansas, which is the same artwork as Tampa, Florida," Baron said. "So I think this is part of it: distinguish the restaurant environment to truly reflect your mission and purpose."

Kyle Noonan is the owner and CEO of FreeRange Concepts. FreeRange Concepts is a multi-concept operator outside of Texas, operating the dog park-themed franchise MUTTS Canine Cantina, as well as The Rustic, Bowl & Barrel, The Rustic, Bowl & Barrel, and The According to General Public and Joe Leo Fine Tex Mex, casual dining “has become a sea of ​​stereotypes, and many big brands are beginning to look similar to each other from a design and food perspective.”

"Consumers today want their dining experience to be different, whether it is the physical beauty of the space, the unique menu offering, or something that provides entertainment elements," he said.

To put it bluntly, the expectations of the guests have forced the historical boundaries between restaurant categories to become blurred. Because of this, the response of full-service restaurants has undergone a major shift. Eggs Up Grill CEO Ricky Richardson stated that the brand has reached 50 stores in August. Eggs Up Grill has set an opening record for three consecutive years, with an average growth rate of 25%.

Richardson understands this transition better than most people. Before joining Eggs Up Grill in 2018, he served as President and Chief Operating Officer of TGI Fridays. "For many years, the way a full-service restaurant has operated has allowed guests to comply with the brand's expectations of what they want to eat," he said. "[This forces] the guests to feel a certain level of atmosphere and require each customer to eat according to the brand's schedule."

"All this has changed," he added. "Guests want restaurants to be very focused, do what they are good at, and be consistent."

Therefore, a narrow menu of this NextGen category is defined. "They want quality, convenience and value, and they are valued," Richardson said. "Whether it is in the way they are treated or in terms of their acceptance."

Eggs Up Grill is committed to creating an open, airy, light and "happy" atmosphere through its colors, decorations and layout. But this is a dialogue that goes far beyond visual cues.

In Richardson's view, requiring guests to "eat on the brand's schedule" has become an old concept.

Condado Tacos offers experience and convenience: the hallmark of the NextGen category.

Chris Artinian, CEO and President of Condado Tacos, has worked in the catering industry for 31 years, ranging from fine dining to casual dining to an "on-call" work perspective. Morton's The Steakhouse was born for 17 years. Customers of this restaurant can arrange a day to eat. Artinian said that there is still sufficient demand for this long occasion, but not so much in the middle ground.

For decades, the loyal supporters of casual dining have appeared in the form of cheaper high-end staple food, which is far from fast food. However, although they are faster, they have almost no speed. "What we learned from fast leisure is that people's attention span is shortened," Artinian said. "And they don't have time. They are always running away, especially when you talk about lunch. But I think in the past few years, this industry has been inexperienced."

Can you create a differentiated experience in a model that can provide people with food in 8 to 12 minutes? Can you use the same potential to provide 45 minutes or longer visits to those who want to visit? This is the answer to the key question of separating NextGen Casual from counter service. "I think this is magic," Artinian said.

Being able to provide a full-service experience for people who want to reconnect with family, important others and friends, not just through the through train, this is the way full-service always wins. However, the difference today is to strike a balance between experience and convenience and value. This approach will not automatically cause business to be lost due to fast leisure or fast service.

"I think people still want that kind of fun group experience, but it's a more casual way, and I think this is our starting point," Artinian said.

At Condado Tacos, the average check fee is between US$15 and US$16, and the extensive service model starts with ticking the card and setting up your own taco joint store—no different from ordinary sushi restaurants. These systems have been digitized in the past year, and guests can choose to click on a QR code to experience their experience, and the server will guide them through the options, or if they still want, they can get a paper menu.

However, the essence of Condado Tacos' condensed menu is centered on core ingredients, all of which are easy to assemble and execute, Artinian said. It enables the brand to maintain flexible employees in the kitchen and pay "a little more."

"We only need fewer people to execute our products, which allows us to invest more in our employees," he said.

Paul Macaluso (Paul Macaluso) is another full-service restaurant executive from an external perspective. He took over as CEO of Another Broken Egg Cafe in 2019. Macaluso's previous position was the CEO of Quick Service Krystal Burger. Before that, he was the president of McAlister's Deli, a FOCUS Brands chain.

Although Another Broken Egg Cafe was Macaluso's introduction to the world of meditation, things quickly changed-but it didn't go further. "The next generation [full service] is a high-end dining experience in a high-end casual environment that can reduce downtime or wasted time for guests," he said. "This includes having more accurate waiting times and a more efficient ordering and payment process. For us, this means unique and innovative brunch entrees paired with handmade cocktails, and being able to add ourselves to the waiting list, So you can get in and out in 45 minutes."

Another Broken Egg Cafe is working with new points of sale and loyalty partners to develop a system to speed up service time and provide brands with consumers' order history and preferences. Macaluso said the server will be able to use the information at hand to process the dining table and help them personalize each experience. Although this sounds like something quick casual or quick service might preach, "the attention to detail is beyond what counter service can provide," Macaluso said.

This 75-unit brand has already opened 7 stores in 2021, and 4 more are about to open. As its same-store sales so far this year have soared by 20% from 2019 levels, it signed 14 more agreements. Between the compensation benefit and the new opening, Another Broken Egg Cafe expects system-wide sales growth to exceed 35% this year, and has to increase its five-year forecast. Macaluso said that by the end of 2026, the chain is likely to have more than 200 units.

Another Broken Egg Cafe is FSR's 2020 breakthrough brand of the year.

The recent success has made Macaluso another icon of NextGen Casual, a huge departure from the traditional full-service-the rise and stickiness of off-site business.

"At its core, full-service has always been about high-quality service and hospitality elements. Although we think these elements are still essential to most of our guests, more and more guests are willing to give up this brand of our brand. One element only gets our service. Delicious food, whether it's picking up or delivering," he said. "We expect the percentage of guests will continue to grow over time."

Another Broken Egg Cafe established an online ordering platform within 45 days of the worst of the new crown epidemic. Macaluso said this usually takes 4-6 months. The pandemic pushed the chain store business beyond the four walls, increasing from 2% of total sales to 15%.

"This change has had a domino effect on other components of our technology stack and roadmap, including a new, cloud-based, open interface POS system and new customer loyalty programs, which will all be scheduled later this year. Time to launch," Macaluso said. "These initiatives usually take 2-3 years to complete."

This is a common story played out in the COVID bubble: pent-up demand and off-market revenue drive the concept of full service far higher than the sales volume in 2019. But what is the lasting effect?

Artinian says you can't underestimate it. Operators have the opportunity to establish additional visits in ways that their counter service counterparts cannot. Guests who showed up on Friday and Saturday nights now realize that they can also have dinner while driving home on Thursday. During the COVID period, it is solving logistics problems in a full-service restaurant, so the experience is not chaotic. Guests crowded the lobby. Struggling to find a parking space. Not sure who to talk to when they walk in. Everything that can send them to the road for fast service.

Condado Tacos launched a new app in August that provides tiered loyalty, which is different from the mainstay of Starbucks and other counter services. It also provides mobile ordering for pickup or delivery, storage of gift cards and credit cards, and access to favorite orders and restaurant updates.

Steve Kislow, CEO of Firebirds Wood Fired Grill, a chain store with 53 units, plans to add 5 new stores in 2022. He said that changing customer dining locations is more than just providing Good service restaurant, and it's time. "On the one hand, the traditional intent of the menu dining model has changed," he said. "We have noticed an emerging trend that shows when people eat lunch and dinner is changing." Thanks to remote work, customers can eat around the clock. It's not just Dunkin' and Starbucks experiencing this.

Smokey Bones' virtual brand helped it attract new customers during the COVID period.

A full-service restaurant just touches the technical surface. James O'Reilly served as the CEO of Long John Silver's for 4 years before joining Smokey Bones in the fall of 2019. He said that casual dining five to 10 years ago revolved around a comfortable environment and a good experience. built. Compared with traditional fast service, this is enough to provide a strong value proposition.

"Future full-service restaurants are changing to reflect new and higher guest expectations, which are driven by technological advances, innovations in convenience, and the higher quality of food needed to provide value to casual dining guests. Every day Growth and progress," he said.

Smokey Bones adopts the "anytime, anywhere" technology vision, allowing guests to fully digitally control their internal or external experience. The Smokey Bones store’s recent design has a smaller restaurant, more technology, and dedicated off-site visits. O'Reilly added that some menu items have been discontinued, so the chain can be separated from the "generalist" casual dining chain. The brand now refers to itself as a "protein confectionery" and shoulders the vision of "the meat we make".

"The opportunity for the aspiring next-generation full-service concept is to embrace the permanently changing perceptions of restaurant dining and their higher expectations for frictionless digital experiences, food quality, and dining memories. These expectations continue to make casual dining an integral part of A leading value proposition in the restaurant industry," O'Reilly said.

"In the past, restaurant owners paid more attention to the taste of food," Tomo Takahashi, founder and CEO of Jinya Ramen Bar, responded. "Recently, restaurant owners need to analyze their target audience and reach them through brand marketing."

The pandemic has accelerated technological change-there are almost no gray areas. However, it also created new users in established channels, Richardson said. In other words, COVID has significantly increased people's requirements for efficiency, both because they use new outlets, such as roadside and takeaway, and because they want contactless options.

“The experience is evolving in this way, but due to demand, it may increase by 5 to 7 years in terms of guest expectations and business adoption,” Richardson said. "COVID has also created users for channels and time slots, such as getting breakfast through third-party delivery. I think if there is no pandemic, these users will not happen."

The approachable and diverse concept of 110 Grill attracts guests of all ages.

One way to look at it is that COVID has cleared the stuffiness of the full-service room. Numbers have become an occasion for whatever you want. The pandemic has successfully introduced digital technology to people, especially elderly customers who have no choice when restaurants are closed. The agile full-service chain responded.

Approachable is a slogan that often appears in the NextGen leisure brand. They want to eliminate the stigma of dining on special occasions that provide full service, and open their world to customers every day and every day.

Ryan Dion, chief operating officer and co-founder of 110 Grill, built his Westford, Massachusetts brand around a full-service concept that meets any need. In his view, this is one of the problems of labeling a brand with "high-end leisure". This is a mental disconnect, like putting milk and soda on the same table.

"You can come in from the beach in shorts and sandals and enjoy a burger and beer at the bar, or you can enter our private restaurant in a suit for a meeting and enjoy rib eye steak and a delicious bucket of duck horn decoy Cabernet Sauvignon," Dion Say. "Either way, you are in line with our philosophy, our atmosphere. We are in the best condition."

Talking about the previous store design theme and the cross-service capabilities of the NextGen Casual category on different occasions, 110 Grill has five different seating areas in each of its restaurants. Guests can go from private to the terrace, then to the lounge to dine, and then to a place in front of the kitchen to watch the chef's performance.

"I believe people want to choose," Dion said. "They want to be in control of their dining experience without having to experience the same cookie-cutter experience every time."

As a consumer of its own brand, Barone of True Food Kitchen has also noticed this shift.

"What really surprised me was that I ate here today, but I think I can make myself eat like this every day," she said. "You can always come back."

Like Condado Tacos, True Food Kitchen customers can use QR codes to order and pay to speed up lunch. Or they can visit on weekends and celebrate for several hours in a row.

"I think this really needs to be considered," Barone said. "We want to set out to provide the experience you want, but we will not choose for you."

The latter point is crucial.

"If this is what you want today, that's what you got," Barone said.

COVID enables True Food Kitchen and other companies to truly examine the different needs of today's consumers. For example, the brand introduced family meals. But then it also launched a ghost kitchen with a limited menu near the company office. The location is open from Wednesday to Monday, and closed on Tuesday, allowing brands to test new products and plan innovations.

"COVID opens the door and says that these are actually two different businesses," Barone said of digitalization and dining. "They may come from the same kitchen and the same restaurant, but we need to start thinking about them in a different way, as well as the guests who come to us to celebrate the baby shower with her friends-she is the same person, but in a completely different mood. When picking up on Thursday night."

The ecosystem of NextGen Casual restaurant is much more subtle than consumers expected.

The spirit of True Food Kitchen is clear from food to design.

Of course, if food and beverages are not NextGen, none of this matters. Barone said that True Food Kitchen believes that food "is a journey in itself." This is not how anyone talked about this category 20 years ago. Things like pineapple cooked in the back of the house or avocado lime pie with kudzu root are said to stabilize blood sugar while you eat.

"You can come in and enjoy delicious food, but you can also continue to peel the layers and learn more and more things, and get a deeper understanding of the journey of its origin. We have all our stories and our understanding of the things that enter us. Purchasing with enthusiasm," Barone said.

"Food is absolutely functional," she added. "But it's much more than that. I think what the real gourmet kitchen and this next generation capture is that when you come in, the food is part of you. I eat at True Food, I am a member of True Food, and I like True Food. "

At 110 Grill, Dion said that creating a club-like feel is crucial. People want to lock in the brands they support and associate with. 110 Grill achieves this through a loyalty program with points equal to $1, and when guests reach a certain threshold, they will be rewarded. There are about 200,000 people in the program, and 110 Grill spends about $40,000 a month to give back to its customers-Dion believes this investment is very worthwhile.

They built the program to reflect the travel-based platform. It motivates repeat visits by becoming the primary consideration. In addition, 110 Grill can provide rewards on anniversaries and birthdays, and try to trade on slower days to incentivize behavior, such as double points on Monday. The brand also offers an option on its website for guests to provide feedback, and 110 Grill promises to respond within 24 hours. Dion said: "Every time you come in, you will have a consistent and unforgettable dining experience, and we want to make sure that nothing is missed."

The nine-unit whisky cake of the FB Society concept family opened 10 years ago and is at the forefront of the leisure space from farm to table movement. Remember that is a unique selling point? "From farm to table" or "from farm to table" has been downplayed by restaurants, almost the same as "craft beer."

Ray Risley, chief operating officer of Whisky Cake, a former executive of the Del Frisco Restaurant Group, said that in today's market, it is easy to call himself that way. But it’s not easy to put it in place, the guests are responsible to you. The same goes for claiming that your meal plan is one step ahead of your casual and fast-serving competitors and fulfilling that promise.

Therefore, the need to differentiate becomes very important. When Jack Gibbons and Randy DeWitt created the whiskey cake, they wanted to bring an urban restaurant in the city center to the suburbs. This means that people usually don't see bar shows outside of the main subway. Imagine 250 whisky labels, barrel plans by top producers, and avid consumers who follow the brand just to track its latest products. By the way, beverages are one of the most important levers NextGen Casual uses to drive consumer competition behind the pandemic. Risley said that no matter what happens, guests who enter the concept of fast leisure or fast service usually don't want to spend $20 or more.

For the next ten years, Whiskey Cake continued to protect this asset while ensuring that it stayed ahead in the ever-changing landscape. One thing about NextGen is that full-service chains are not just driven by local restaurants—it's a collective upward wave that challenges the brand to become more customer-centric.

"If you look at the progress made now and the quality of food provided by some [fast service] personnel, consumers can promise to find really good food with very little time and money," Risley said. “Therefore, people in the leisure industry, people in [NextGen], and even people in high-end restaurants, they need to ensure that their operations are improved to justify the time spent by consumers sitting down and eating. You can no longer provide frozen products. Yes. People know."

Whisky Cake knows that you cannot win new customers without first-class food and beverages.

One element that cannot be forgotten is hospitality. If you want someone to add their check from fast leisure, you can't give them an experience that they forget the moment the server walks away. "[The server] must have the personality profile or interactive quotient that the guest is looking for, otherwise why would they spend an hour or an hour and a half dining time, if they are just bored with the same thing-the old waiter shows up and accepts the order, Then provide food," Risley said. "An entertainment factor must follow."

Many of NextGen Casual’s core principles also apply to employees in terms of guests and their desire to identify with this market segment and those who dine there. Given the labor shortage in the country and the fact that restaurants may never return to their previous staffing levels, the field has been reset in some respects. Risley said employees want a company that they trust as much as diners. One feature of FB Society is that it recruits employees based on whether the company thinks they are suitable and whether their resumes meet the requirements. Whisky Cake even provides new employees with a plant to take care of throughout the training process to encourage mindfulness and commitment.

"If you look at mobile phones and all the upcoming technologies, it won’t save people or spend money; it’s a time saver. So in terms of catering, service and interaction, you have to provide them with food and service and interaction To justify the one and a half hour commitment to catering," Risley said.

Brandon Landry, founder and CEO of Walk-On's Sports Bistreaux, has a similar view. "To become a successful restaurant today, guests need a certain level of service and accessibility, which makes these investments no room for negotiation," he said.

"When I think about the experience, I think it is reflected in the positive emotional response of the guest during the visit," Richardson added. "I believe it is difficult to optimize this response in a service-limited environment, and in this case, if implemented properly, a comprehensive service is difficult to beat."

The good news is that these NextGen leisure brands are responding to this call more than ever. In the full-service category, the combination of digitalization, corporate responsibility, accessibility, procurement commitment, and personality has never been more obvious or accessible. After months of blockade, customers are shouting.

"Being part of the huge changes that have been brought about is an incredibly exciting time," Barone said. "The COVID is a disturbance to every consumer's habits. With this, this is a terrible year that we have all experienced, and an incredible year of learning and future opportunities. Therefore, I think now is a leading A super exciting time for a goal-oriented brand and thinking about all the different ways we can better serve our guests."

The latest headlines and features from the editors of FSR Magazine.

The latest headlines and features from the editors of FSR Magazine.