Low Development Costs, High ADRs and Incredible Valuations
Written by: Jay Bhakta
Glamping has taken the hospitality industry by storm over the last few years with developments occurring overnight. These remote-style stays became especially popular over the course of the Covid pandemic, as they offered the distanced retreats and vacation getaways that many craved after lockdowns. Due to the lack of physical structures required, development is rapid and far less costly. However, with the unique service proposition provided, glamping properties are able to charge high ADRs. And, as these properties are valued based on the income approach, their valuations are derived from their cash flow — resulting in incredible returns.
With varying startup costs through different business models, these high returns can be further extended. By making decisions such as buying or leasing land, startup costs can be further mitigated, allowing for a low barrier of entry for new competition to join. With the growth in popularity of online travel agencies, new and existing companies are able to compete in the marketplace without the need for previous brand presence or awareness, further lowering the hurdles of entry. Because of these factors, glamping properties are quickly profitable and scalable.
Innovative hoteliers within the industry are beginning to transform traditional hospitality by better understanding the relationship between investment costs and ADR. Traditional hospitality used to state that investment costs would correlate with the ADR you were able to charge. However, with the newer generation of travelers willing to spend more on experiences rather than materialism, development has been flipped on its head and is rapidly changing, allowing for many new creative opportunities and solutions.
In addition, to the financial incentives provided from lower investment costs and higher returns, the unique selling proposition of glamping includes sustainability, eco-friendliness and an escape from the hustle and bustle of everyday life, while still providing the luxury of comfort. These are just a few of the many reasons people are choosing glamping as their next travel experience rather than a trip overseas. It is important to note that it is not only campers who are choosing glamping, but also travelers who are typically interested in taking vacations in other countries and staying in hotels.
Glamping provides tech and business savvy property managers with many possibilities for creative solutions to improve upon the blank slate due to the lack of proprietary burdens of the traditional hospitality business. Glamping is truly a creative outlet and unencumbered in its naivety. This space is growing rapidly and will see many further innovations that will continue to shape the future. However, it is currently in need of entrepreneurs who will provide centralization and standards to further grow the market, as the current state of decentralization can provide a shattered and messy booking experience.
Stay-tuned to the fine, glamping options that develop over the next several years; or consider an entrée yourself and make it your next business endeavor.
This blog post tied for First Place in the Fall 2022 HFTP/MS Global Hospitality Business Graduate Student Blog Competition presented by the HFTP Foundation. Participants are students participating in the Master of Science in Global Hospitality Business, a partnership between the Conrad N. Hilton College of Global Hospitality Leadership at the University of Houston, the School of Hotel and Tourism Management at Hong Kong Polytechnic University and EHL. The blog posts that received the top scores will be published on HFTP Connect through March 2023. Learn more at HFTP News.
Jay Bhakta is a recent graduate with a Master’s in Global Hospitality Business from EHL Business School with an interest in hospitality asset management, development and operations.
Resources:
BLLA. (2022, August 3). How boutique brands are leveraging strategies to revolutionize the hospitality industry. Hospitality Net. Retrieved October 29, 2022, from: https://www.hospitalitynet.org/news/4111821.html
Improving Online Ordering With Images
Looking for a sure-fire way to win the attention of Grubhub customers and improve their online ordering experience? Try adding a few images to your restaurant’s menu through the Grubhub for Restaurants platform. Including photos can increase sales of menu items by up to 30 percent – and it’s easy to see why.
From improving order accuracy to giving customers a better idea of what to expect, images can help deliver an online ordering experience that customers are hungry for.
Why great restaurant photography improves diners’ online ordering experience
Integrating images into your restaurant’s online presence greatly improves customer satisfaction.
Take a look at the three pain points that strong restaurant photography has helped resolve:
Greater menu familiarity
While new and exotic dishes are guaranteed to spark curiosity, they likely won’t be a top choice among customers who don’t know what’s in them. Eating is a full sensory experience, and photos can help give diners visual cues that can get their mouths watering. Clear up any confusion about dishes on your restaurant’s menu by including images wherever possible.
Quicker online ordering
Use images to show, not just tell, customers about your restaurant’s offering. Supplementing menu descriptions with appetizing images that can capture the hearts – and stomachs – of customers in just seconds will reduce the time it takes them to place an online order. The faster a customer adds meals to their cart, the less chance that they will change their minds and not place an order.
Higher order accuracy
In addition to providing customers a snapshot of what a dish might look like once it finally arrives, images also give back-of-house staff members a visual guide for putting orders together. By taking a few seconds to compare the image on your restaurant’s menu with the finished product, your staff can ensure no detail – big or small – is overlooked.
Where to feature your restaurant photos
There are many places where your restaurant’s brand will pop up online, and it’s important that strong photos are included in your digital presence. Brush up on our restaurant photography tips if you want to learn more about how to snap professional-grade photos. Take a look at where you can add photos to get more traction online:
Feature your dishes on your restaurant’s menu
Your restaurant’s online menu is the most important place to feature images of your food. When diners are scrolling through a list of dishes, a jumble of dish descriptions makes it hard for them to navigate your restaurant’s offerings. Restaurants that have already made the switch from fully text menus to photos on their online ordering platforms have seen their conversion rates increase by about 25% on average.
Your menu photos should showcase your food – capturing each dish at its prime. Close up photos of your dishes help capture your creation’s details, giving diners a look into what ingredients are cooked in. Plating is especially important when it comes to menu photos. Take your time arranging each dish and make sure the plate and background are clean. You want your diners’ focus to go straight toward the food.
Nando’s Peri-Peri has perfected their menu photos on Grubhub Marketplace. Highlighting their main dishes along with recommended side pairings helps diners envision what their order will look like.
When you partner with Grubhub, your restaurant can schedule a free photoshoot so you can get professional photos of your cuisine to feature in your digital presence. Already a Grubhub Marketplace partner? Schedule your free photoshoot today or reach out to your Account Advisor to learn more.
Highlight your offerings on your restaurant’s website
90% of customers research a restaurant online before visiting – that’s more than any other type of business. Your website serves as a virtual home base for your restaurant’s brand. It’s often the first place you can make a memorable impression on customers, so featuring irresistible images of your cuisine can motivate diners to place an order.
Your restaurant’s brand begins to form online as soon as a customer search for your cuisine. When a customer searches for your restaurant on Google, your restaurant’s Google Business profile will appear. This profile features basic information about your restaurant including its address, hours, website and ordering platform. Make sure you update your Google Business profile so that customers can easily find out more info about your restaurant.
What types of images should you include on your restaurant’s website? Photos of your food are great to place on your homepage and menu. Crisp images of your cuisine on top of white plates that will showcase the natural colors of your ingredients stand out. Since natural light can help do the same, consider conducting each of your photoshoots near windows. Take a look around your restaurant and snap some photos of your staff in action. It’s also important to include photos of your ambiance so that diners can get a feel of your overall dining experience.
Be selective about what photos you choose to feature. Too many photos can bog down a website’s load time and make it more difficult to navigate. Check out more tips on how to design a successful restaurant website.
A strong restaurant website won’t do much for your bottom line unless you have a clear avenue for diners to place an order. Elements of how to create a seamless online ordering system? Look no further than Direct.
Direct is a commission-free online ordering platform that allows customers to place orders right from your website. Direct makes menu management simple. When you update menu items or add photos on your Marketplace menu, your Direct menu will automatically update to reflect changes. You can bring your restaurant’s brand to life with Direct by easily customizing your site to match your brick and mortar location.
Check out how Naan N Curry used their Direct site to feature their food photography:
Connect with your diners on social media
Social media is a gold mine for foodies these days. Social media offers the perfect format to tell your restaurant’s story through images – putting your mouth watering food photography center stage. Creating a social media profile for your restaurant can get your food into the digital conversation, and strong food photography can help bring your account to the top.
When it comes to social media, strong photography is key. There’s no one size fits all for social media composition, and cookie cutter posts can blend into customers’ feeds. Mix up the recipe by trying out one of these formats:
- Food features are high resolution, close up images of your dishes. These posts are great for featuring a specific menu item.
- Food films are videos that feature your dishes. Videos tend to perform better on social media apps like Instagram and TikTok, so taking advantage of this feature to show your food in action can draw extra attention from diners.
- Interactive stories is the best way to directly prompt an action from a customer. On apps like Instagram and Facebook, you can post images to your story that will appear at the top of diners’ feeds. With this feature you can directly link to your online ordering website, ask interactive questions or run a contest.
- Behind the scenes photos and videos help your restaurant come to life. You can make a short video showing how your chef whips up a recipe or use a photo slideshow to showcase what your employees like to order.
- Reposts of your followers’ photos of your food can not only connect you with your customers, but also give you more unique content to work with, turning your diners into your PR team. Make sure you get permission from the original creator before you repost any content. You can also collaborate with local micro influencers to expand your reach.
Hashtags are key when it comes to getting your account more exposure. #Foodie has over 200 million posts on Instagram, and #LocalRestaurant has racked up over 300,0000 posts. You can also get in on the local conversation by using hashtags like #AustinFoodie or #NYCeats. Adding trending hashtags to your post allows them to enter different categories online, bringing your restaurant into people’s social media feeds.
Make your restaurant picture perfect with Grubhub by your side
Embellishing your restaurant’s online presence with eye-catching photography can greatly improve your digital brand. Adding them to your website, online menu and social media accounts get customers’ mouths watering, prompting them to place an order.
A picture is worth a thousand words, and a picture of your delectable food is worth the delivery fee for Grubhub’s over 30 million customers. That’s why Grubhub offers a free photoshoot for restaurant partners. Ready to get your mouth watering food in front of hungry diners? Partner with Grubhub today to start taking more orders now.
McPlant nuggets premiere in Germany –
The world’s first plant-based nuggets at a McDonald’s restaurant will be available in Germany’s 1450 outlets today, replacing the vegan burger.
Also new on the menu is the McPlant Burger. It replaces the vegan burger and the Fresh Vegan TS, and McDonald’s has emphasized the plant-based characteristic of the nuggets and patties, avoiding the vegan designation.
This makes Germany the first country market with plant-based nuggets on the menu boards. According to the company, this is also the first time a plant-based alternative has been available in a Happy Meal.
McDonald’s and Beyond Meat worked together to create the new plant-based nuggets and tested them in nine restaurants in Stuttgart in August. The nuggets are made from peas, corn, wheat and tempura breading. Beyond Meat has also had a chicken substitute available in restaurants since mid-2021, when the company rolled out its revamped recipe.
In addition, the McPlant Burger, which is already available in Austria, the UK and the Netherlands, among other countries, is now permanently on the menu in Germany.
With the two new products, McDonald’s, and manufacturers Beyond Meat, aim to appeal primarily to flexitarians. This is because their market share is growing steadily in the German population. For the product launch, the company actively involved guests in the development in a broad-based market test.
The McPlant nuggets are said to be a real alternative to Chicken McNuggets in terms of taste.
The McPlant burger with the Beyond Meat patty is also based on pea protein in combination with processed cheddar cheese, tomatoes, lettuce, pickles, onions, sandwich sauce, ketchup and mustard, and is claimed to be able to convince even die-hard McDonald’s fans .
The burger replaces the Fresh Vegan TS or Veganburger on the menu and no longer bears the vegan label. This is because animal products such as eggs and milk are used in sauce and cheese sandwiches.
Guest wishes and transparency first
To distinguish the plant-based nuggets from the chicken nuggets, they come in a drop shape that is not found in the classic nuggets.
To publicize the new McPlant products, staff will be distributing free sample portions in McDonald’s restaurants in Germany from February 22 to March 01, 2023. From 02 to 05 March 2023, McDonald’s fans and registered users of the McDonald’s app will then have the chance to win one of 100,000 coupons each to try the McPlant Burger and McPlant Nuggets for free.
Bedrock Origin | Great Beef & Reef Edition (The Four Elements)
Bedrock Origin | Great Beef & Reef Edition (The Four Elements)
To ring in the new year, Bedrock Origin is bringing back its The Great Beef & Reef Series, which showcases the best of land and sea. In its first 2023 edition, the chef draws inspiration from the four elements – fire, water, earth and water. This 6-course dinner tasting menu runs from now until 31 March 2023 at S$168++ per person and wine pairing is available at an additional S$88++. There is also an option of Siberian Caviar (additional S$60++). We had the S$168++ dinner tasting menu.
We thought that this menu is good value given the portions (especially for the mains) and the quality of the ingredients used. Bedrock Origin @ Oasia Sentosa is also away from the city’s hustle and bustle – an excellent choice to have a date or intimate meal with friends and family.
Budget: $168++ per person (additionally $88++ for wine pairing)
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The 9 most popular restaurant delivery days
Marketing for restaurant delivery is a tricky mix of strategy and timing. Throw in a need for creativity (who’s going to come up with weekly topics and track what’s relevant) and it can be tough for restaurant owners and operators to find time in their busy schedules to find ways to promote their eatery.
But the fact is, marketing remains one of the most important tasks on your to-do list because it’s the easiest way to keep your diners engaged and your restaurant top of mind.
For example, pairing promotions with a boosted social media presence can help generate business and put guests in seats. Or, as this case may be in modern times, directing them towards your online ordering platform so they can score some delivery.
Restaurant delivery is on the rise. More than 18 million orders were placed on Grubhub in 2022, and online ordering is growing 300% faster than in-house dining. By 2024, online food delivery services are projected to become a $32 billion industry. It pays to master your digital ordering strategy now.
Capitalizing on consumer trends can help drive diners to your restaurant.
National holidays with the most orders
It’s all about national holidays – and we don’t just mean Christmas and Fourth of July. National food holidays and unofficial top restaurant delivery days like mega sporting events and primetime for restaurants looking to amplify off-premise orders.
Take a look at the national holidays that bring the most orders to restaurants and learn how you can promote them to capture more hungry diners.
1. New Year’s Day
Nothing lulls regrets from the previous year more than a good hearty meal, according to Grubhub diners. Over 660,000 orders were placed on Grubhub on New Year’s Day in 2022. It can pay to double down on delivery in the new year as many customers don’t want to leave their house on the day off to get a meal. And having a delivery partner like Grubhub can help take the stress of coordinating deliveries off your plate.
The holiday season is a great time to roll out a seasonal menu that incorporates festive favorites. Perfecting a seasonal menu can help make your restaurant stand out as customers tend to appreciate flavors that correspond to the time of year. Consider creating a New Year’s Day brunch menu that can cure any hangover – incorporating comforting favorites like french toast, pancakes, fresh fruit and home fries.
2. Mother’s Day
For decades, Mother’s Day has been the most popular day for people to dine out. The holiday gives a perfect excuse to ditch the home cooking and take mom out for a nice meal. However, in recent years families don’t need to leave their house in order to get a five-star meal for the guest of honor.
Over 616,000 diners decided to get a restaurant meal for mom in 2022. Families are eager to celebrate the ladies in their lives with delicious food that nobody in the house has to cook themselves.
Read our Mother’s Day guide to see the plethora of ways to play into that excitement, including Mother’s Day restaurant specials and promo ideas like tucking kid-friendly extras such as stickers and coloring sheets into delivery bags. Don’t forget to use social media and your email list to let people know what you’ve got planned for the holiday.
3. Martin Luther King Jr. day
Martin Luther King Jr. Day falls on the third Monday of January. This federal holiday honors Dr. King’s legacy of social justice and equity. MLK Day is also a National Day of Service that encourages Americans to volunteer to improve their communities in honor of Dr. King.
While this holiday brings thousands of orders to restaurants, it’s also a time for restaurants to show they care for their communities. Restaurants can take part in the MLK Day of Service by giving back. Patrons tend to support businesses that align with their values, and this National Day of Service is a great opportunity to show what your restaurant stands for.
Consider hosting a food drive by highlighting that your restaurant is a place where people can drop off their food items. Take lead by donating restaurant meals to local food banks. There are many creative ways to give back to your community, and taking initiatives on this National Day of Service can make your restaurant stand out.
4. Presidents Day
Every third Monday in February Americans celebrate Presidents Day to honor those who have served as president in our 246-year history. Whether diners get the day off or not, many spend the day ordering from their favorite restaurants. In fact, over 550,000 customers placed orders on Grubhub last Presidents Day.
Looking for a unique promotion to run on Presidents Day? Try giving a percentage off different president’s favorite foods on your menu. Did you know John Adams started his mornings with hard cider? Or that Thomas Jefferson’s favorite food was mac and cheese? While you may not serve James Garfield’s favorite squirrel stew dish, you can highlight the dishes you do have that past presidents have enjoyed.
5. Labor Day
Labor Day is when we all say goodbye to summer and start looking forward to the crisp breath of fall. Many people are taking a minute to indulge in a last-minute burst of warm weather by barbecuing poolside or taking a picnic to the park or the beach.
Tailor your Labor Day promotions to what customers are already feeling. A farewell to summer celebration allows for tons of great prompt ideas on social media. Imagine brightly colored graphics, snapshots from the restaurant’s summer events, and a few strategic mentions of your Labor Day delivery deals like offering 15% off with a themed code like BYESUMMER.
Make the most of the biggest restaurant delivery days with Grubhub
Partnering with Grubhub gives restaurant owners and operators just like you access to a wide array of tools and educational resources designed to help you maximize engagement, traction and profits.
Grubhub’s promotion and loyalty tools guide you through the process of targeting your ideal customer, using smart marketing and plug-and-play promotions that have seen other Grubhub partners generate an average of 72% more new customers.
With Grubhub Marketplace, your restaurant gets in front of local diners who otherwise may have never heard of your food or who may have forgotten how delicious your menu truly is. Seasonal promotions are an excuse to remind everyone that you’re there, you have something incredible to offer and that they can sample it again at a discount.
What’s the best food delivery service for your restaurant?
Curious which food delivery service is the best? With so many food delivery apps on the market, there are endless potential partners for you to consider. But not all restaurant delivery services offer the same access to potential diners or the same tools to help you scale your business and achieve your goals.
Using the best food delivery service available can help you tap into promotional opportunities such as major holidays.
Here are a few things to consider as you decide which food delivery platform is right for you.
Brand name and customer reach in your area
It’s no use joining a third-party delivery service if it won’t get you in front of the diners that truly matter. With nearly 163 million Americans eating out each week – 64% of the country’s adults – it’s crucial to reach as many potential guests as possible.
Grubhub Marketplace is the largest marketplace of its kind, connecting restaurants with more than 33 million diners eager to find the source of their next delivery order. In fact, 9 out of 10 independent restaurant operators surveyed who use Grubhub agree Grubhub increases the volume of takeout and delivery orders – higher than the competitor average.
To gauge how Grubhub is doing in your area, visit Marketplace and check out nearby restaurants already using Grubhub to see their success for yourself.
Restaurant fees and profit margins
You’re joining a third-party food delivery service to help bolster your profits, don’t hurt them. Some delivery partners are primarily interested in their own bottom line, but Grubhub is invested in joint success, empowering restaurants so we can all share in a more bountiful future.
Grubhub Marketplace offers restaurants three different levels of membership, ranging from Basic to Premium. You control what you pay and which marketing tools you access so you can tailor your investment to the needs of your restaurant.
In addition to reaching your share of those 33+ million diners on Grubhub, you also get a dedicated Account Advisor and access to delivery services so you’re not navigating success on your own.
Your customers, your data
It’s hard to take your online delivery and takeout services up a notch unless you have access to key data points used in strategic decision making.
Direct not only helps you launch your own online ordering site, it also helps generate diner data you can use to fuel your marketing efforts. And it’s all free, with no commissions ever. Just promote your unique food service delivery link and watch as the customer and data roll in.
Delivery boundaries
One way to save on delivery fees is to use your own in-house team. Although this approach won’t work for everyone, restaurants that do have the bandwidth to oversee self-delivery can add that to other delivery service options including Grubhub delivery, supplemental delivery and pickup.
Grubhub delivery is a proven system, too. Nearly 9 out of 10 independent restaurant owners who use Grubhub agree that Grubhub streamlines takeout and delivery order processing, and 77% of consumers surveyed who use Grubhub highly rate Grubhub’s delivery speed.
Make the most of major delivery days with Grubhub
Top restaurant delivery days hold a major promise for restaurants looking for ways to broaden their customer base and increase revenue, but sometimes it takes a strong partner to make those goals a reality.
Partnering with a third-party delivery app gives you access to tools, knowledge and a built-in audience. At Grubhub, that means joining a platform that’s already a proven success. Now it’s your turn.
To experience the power of Grubhub firsthand, sign up today and get ready for your next round of holiday delivery promotions.