FSR February 2023

FirstCourse

new event focusing on digital con tent creation. While the programming at South Beach’s FoodieCon will span multiple platforms, TikTok influencers account for the lion’s share of speakers. It all begs the question why this new medium has taken foodservice by storm. The answer may have more to do with authenticity than aesthetics. “Users like TikTok because its seem ingly endless content feels authen tic and unfussy—videos made by real people, for real people. Creat ing ads that capture the candid nature of organic TikTok content helps busi nesses blend in and profit,” said Molly Burke, senior retail analyst at software marketplace Capterra, in a statement. A recent survey by Capterra found that TikTok can be especially bene ficial for smaller enterprises; 78 per cent of small enterprises that ran Tik Tok ads reported a positive ROI within the last six months. At the same time, three-quarters of businesses using Tik Tok post non-advertising content, and fewer than two-thirds run ads. Although the general enthusiasm around TikTok signals a greenlight for restaurants to pursue the channel, some experts advise caution. Maeve Webster, president of consulting firm Menu Matters, cites recent contro versy surrounding the app. In Novem ber, the FBI stated that TikTok, a Chi nese-owned business, posed a security threat. And as of December, 19 states had at least partially blocked access to TikTok on government-affiliated devices. But beyond these concerns, Web ster reminds operators that, as with any red-hot trend, it’s best to wade in, rather than jump. “By all means, keep an eye on it; con sider how the fads …may impact lon ger term and more impactful behav iors that are relevant to your business, and consider how a reasonable share of budget may be spent on exposure,” she says. “But I’d counsel against plac ing too many eggs in a basket that’s teetering on the edge of the kitchen counter.”

nflation Threshold The AS RESTAURATEURS CONTINUE to hold their collective breath while rising costs creep onto their menus, new data from Paytronix elucidates at what point loyal customers will cut back on their spending. Accord ing to the findings, 55 percent of restaurants have reported that their check prices have increased more than the cost of the ingredients , meaning loyal guests have, thus far, been willing to pay more for the items they typically order. Nevertheless, there is a tipping point where even the most loyal of customers begin spending less, and per Paytronix, it’s when inflation hits 10 percent. According to the U.S. Bureau of Labor Statistics, inflation for food consumed away fromhome had increased 8.6 percent between October 2021 and 2022. While that is inching close to the estimated threshold, restaurants should take heart that the increase was 12.4 percent for food at home.

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FEBRUARY 2023