Current state of the enterprise (chain restaurant) market
The enterprise restaurant industry is a constantly-changing landscape. Chain restaurants have weathered the storm of COVID-19, and have returned to almost pre-pandemic levels of success. With new technological advancements, evolving consumer preferences, and shifting economic conditions, fast-casual restaurants must continuously adapt to stay profitable.
Restaurant owners are focused on growth in 2023. According to the National Restaurant Association, 3 in 4 operators say their sales are close to what they were before the pandemic, and they’re aiming to expand in the next year. During 2023, the foodservice industry is projected to reach $997B in sales. The market size for chain restaurants is currently $57.1B, and is expected to increase by 2.5% throughout 2023 according to IBISWorld.
Top 2023 Enterprise Trends
- Restaurant Staffing Shortages
- Co-branding
- Technology Consolidation
- Health and Wellness
- Sustainability
Restaurant staffing shortages
Despite the industry’s financial recovery from the pandemic, nearly 2 million jobs in the hospitality sector remain unfilled in 2023. More than 87% of restaurants are looking to hire this year – if they can find qualified applicants.
While there’s no quick fix to multi-location staffing shortages, there are solutions to help you optimize your operations. Investing in restaurant technology is the most efficient approach to a more successful business. Otter’s Order Management decreases time spent managing delivery, helping your staff focus on what they do best. With Order Management, you’ll reduce staffing needs across all of your locations.
Co-branding
As the industry continues to evolve, co-branding is becoming an increasingly popular promotional strategy for enterprise restaurants. Done well, co-branding can be a win for all involved, engaging customers while boosting each brand’s sales and exposure.
To make the most of co-branding, it's essential to choose the right partner and product. Brands with similar values and target audiences make for a natural fit, while the right product provides versatile menu items.
Let's look at some examples of of restaurant co-branding
- KFC x Beyond Meat: Beyond Meat items were pushed out to over 4,000 stores, and created more media impressions than any other product launch in the brand's history.
- McDonalds x Cactus Plant Flea Market: Toys from this promotion were being resold online from $10,000 to $300,000.
- Apple x Starbucks: Over 12 million Starbucks customers buy items through Apple Pay on a monthly basis, accounting for over 15% of the cafe’s revenue.
- Dairy Queen x Orange Julius: Orange Julius products are available at over 4000 Dairy Queen stores, with 800 locations offering a blended menu from both brands.
- Taco Bell x Doritos: The Taco Bell Doritos Locos Taco sold over 500 million units within 14 months of being launched, earning the restaurant over $1 billion.
Technology
Enterprise restaurants are expected to have it all: a well-run kitchen and good service inside and out of their restaurants. The only way to achieve this is through a highly-efficient, consolidated, integrated system. The larger a business grows, the greater the importance of its streamlined technology. Some restaurants and coffee shops are turning to kiosks and even robots, utilizing human employees only where needed most. On a smaller scale, chain restaurants can also leverage tech touchpoints to help their staff succeed.
This is where Otter’s Order Management comes in. Enterprise restaurants can utilize Order Management to consolidate all of their delivery apps, saving them time, money, and labor.
Health & wellness
Over the past two years, health and wellness has become a major priority in the restaurant industry. Consumers are looking for healthier food options and plant-based animal alternatives to avoid allergens or improve their immunity. Placing focus on healthy, naturally-sourced menu items can capture modern eaters’ interests, letting enterprise businesses capitalize on this demand.
Sustainability
In 2023, consumers are looking for transparency in restaurant sustainability practices. A Hospitality Tech study found that 56% of respondents wanted restaurants to share how they’re making their deliveries more environmentally-sustainable. 54% of respondents said they would prefer to order delivery from restaurants that remove excess packaging from their meals. A major element of avoiding food waste is ensuring that delivery orders are correct, preventing returns and excess.
Otter’s Order Management
As enterprise restaurants continue to grow with demand, the answer to most challenges is efficiency and consolidation. With Otter’s Order Management, you can sync online and offline orders from all delivery apps in a single place. This harmonization keeps your countertops clear, your staff focused, and your orders fulfilled.
Just Salad has been an enterprise-level Otter customer since 2021. On the next slide, you’ll see what Jason Rotter, Just Salad’s VP of Operational Services, says about his brand’s experience with Order Management.
Just Salad & Otter's partnership
“Just Salad chose Otter for their reliable order aggregation, Menu Management, and Auto-Accept solutions. Their innovative technology seamlessly manages orders across multiple platforms, simplifying operations and improving efficiency with an easy read receipt. Otter’s Menu Management feature also lets us rapidly update seasonal offerings over various platforms. Auto-Accept ensures orders are accepted and processed instantaneously, and easily tracked using Otter’s Dashboard.
We’ve been a customer since 2021, using Otter across 65 locations with our delivery apps, logistics partners, and API tools. I’ve enjoyed working with their exceptional customer support team, and they’ve shown a commitment to our brand as an invaluable partner.”
- Jason Rotter, VP of Operational Services, Just Salad
