FSR March 2023

F U T U R E O F QU I C K S E R V I C E

paid signing bonuses for crew members, which it’s never done before—something Roy Rogers stages over time to ensure employees stick around. For some managers, the brand is paying $3,000–$5,000. “That’s just the way of the world,” he says. But like Brown Bag, labor is a cost Roy Rog ers is willing to dig into its coffers for to ensure it doesn’t blend in with the fast-food f ield. “We make it a really important point to be able to hire people with social skills. We call it the ‘Spirit to Serve,” Plamondon says. In October, Roy Rogers lifted the lid on a new design. The model keeps the brand’s nostalgic look but spins modern with natural wood, neu tral colors, and warm lightning. Inside, there’s updated tech, including new elec tronic menuboards and LED fixtures. Countertops were expanded and some items removed to allow for more drive-thru. Roy Rogers is also imple menting digital menuboards in the lane as well. The dining room menuboards have made a big splash since it enables restaurants to adver tise the menu according to the daypart. When it was static, units had to showcase breakfast, lunch, and dinner all at once. Now, with digital, they can devote entirely to whatever’s featured ( breakfast in the morning, etc. ) There’s less clutter, more pic tures, and an ability to highlight LTOs. And in another switch seen throughout the industry of late, the new build is smaller inside. Quick-serves are moving toward this scaled-down footprint for myriad reasons. One is the accep tance digital is taking up a larger portion of the business. So a bigger kitchen makes more sense than a larger dining room. The other is to improve ROI and create buildings that can f it on more compact parcels of land. It’s become increasingly difficult for restaurants to chart larger locations since land is more expensive and rarer to come by. All said, the dining room at Roy Rogers isn’t going anywhere “because of who we are,” Pla mondon notes. “And we’ve always had a nicer environment in our dining rooms. And I really mean that. I’m not just saying that this from a brand speak,” he says. “… When we do remod els, we really make sure that the environment is nicer. You see people who are there to engage with one another. You see more groups of people, fam ilies.” One hallmark feature is communal tables, which are in every restaurant. “We feel like our place is more like a bar,” Plamondon adds. “It’s like ‘Cheers,’ where peo

ple come and spend a little bit more time eating and staying there and using the Fixin’s Bar. It’s just different.”

“People want to gather again, and in big numbers,” says Scott Snyder. “They want to be with other people. And coffee being such a social and communal sort of product and experience,

THE HABITUAL OCCASION ENDURES Count Scott Snyder, the CEO of Bad Ass Coffee of Hawaii, among those operators who feel the death of dine-in was premature. Need proof ? Snyder turns to, of all places, Taylor Swift. Her Eras Tour sent Ticketmaster into shambles, even leading to some fans filing a class-action lawsuit against the company. Regardless of the logistics or controversy, it sent a pretty clear message, Sny der says. “People want to gather again, and in big numbers,” he says. “They want to be with other people. And coffee being such a social and com munal sort of product and experience, we think it’s important.” In no arena is this experience versus conve nience query surfacing more than coffee. What does the “third place” even look like anymore? Mobile order and pay and delivery drove 72 per cent of Starbucks’ total sales volume in North America in Q4, with delivery accounting for more than 4 percent of sales—up 35 percent year over year. Some 90 percent of new store growth going forward will include drive-thrus. Perhaps it was coming already, but definitely thanks to COVID, Snyder thinks the “third place” will become a less prominent feature in coffee shops across America. Internally, the Bad Ass team debated what this might mean and why it was unfurling. “What we’ve come up with is there are so many people working from home now that when they come to the coffee shop in the middle of the day, it’s a rest,” Snyder says. “That takes us back to the café, right? They want a place. They’ve got to get away from the computer; get out of the living room or their study. So when they come to the café, it’s a rest, an escape. They want to sit down and enjoy the meal.” Back in August, the morning daypart was mixing 51 percent at Starbucks, with 65 per cent of it occurring before noon, above pre-virus results. That quarter (Q3) marked the fifth con secutive period of positive comps growth in the a.m. But even with routines snapping back and morning occasions returning, it’s clear coffee has evolved from just a habitual segment to one that’s providing the break and indulgent treat Snyder referenced. Case in point—the rocket ship that is cold coffee, which accounted {CONTINUED ON PAGE 117}

we think it’s important.”

 SCOTT SNYDER

 BAS ASS COFFEE HAS A LOT OF RUNWAY AHEAD, AND THAT INCLUDES BUILDS WITHOUT DINING ROOMS AS WELL AS THOSE WITH THEM.

BAD ASS COFFEE OF HAWAII (4)

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INDUSTRY-WIDE ISSUE

MARCH 2023