Lodge REITs: Selecting A Winner
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COVID hit Lodge REITs additional exhausting, however this yr has seen a substantial amount of leisure journey inside the US Information from the Transportation Security Administration reveals that journey passengers, as a share of 2019 ranges, reached basically 100% in July of this yr, after diving to close zero in April 2020.
Hoya Capital Earnings Builder
Based on Hoya Capital’s analysis, resort occupancy is again to 96% of the 2019 fee, whereas ADR (common every day room fee) is up 11% and RevPAR (income per out there room) is up 7%. Nonetheless, when inflation is taken into consideration, ADR is down about 2.5% and RevPAR is down about 6.2% since 2019. All three metrics (Occupancy, ADR, and RevPAR) are anticipated to be absolutely recovered to pre-pandemic ranges in actual phrases by 2024.
Hoya Capital Earnings Builder
Consequently, Lodge REITs are the fourth-best performing REIT sector of 2022, with a mean complete return of (-6.71)%, in comparison with the Fairness REIT Index mark of (-18.52)%.
Hoya Capital Earnings Builder
The forecast for earnings development is excellent, all throughout the Lodge REIT sector.
So the query is, if you’re focused on beginning or rising a place in a resort REIT, which firm? This text zeroes in on the one Lodge REIT greatest positioned to reward traders over the following 12 months.
First Criterion: Stability Sheet
There are 15 US Lodge REITs. Since a strong stability sheet is the required basis of any sturdy funding, let us take a look at how these 15 firms are positioned for liquidity and debt, so as by market cap.
| REIT Lodges | Liquidity | Debt Ratio | Debt/EBITDA | Bond |
| Hosted Lodges & Resorts (HST) | 2.29 | 32% | 3.4 | BB+ |
| Ryman Hospitality (RHP) | 1.00 | 38% | 6.9 | B |
| Apple Hospitality (APLE) | 3.07 | 30% | 4.0 | — |
| Park Lodges (PK) | 1.81 | 57% | 10.6 | B |
| Pebblebrook Lodge (PEB) | 1.95 | 43% | 15.0 | — |
| Sunstone Lodge Traders (SHO) | 3.14 | 19% | 2.5 | — |
| RLJ Lodging (RLJ) | 1.95 | 56% | 7.5 | B+ |
| DiamondRock Hospitality (DRH) | 2.00 | 36% | 8.0 | — |
| Xenia Lodges (XHR) | 1.90 | 49% | 7.0 | B |
| Service Properties Belief (SVC) | 1.21 | 93% | 14.9 | B+ |
| Summit Lodge (INN) | 1.45 | 44% | 8.0 | — |
| Chatham Lodging (CLDT) | 2.41 | 46% | 9.0 | — |
| Hersha Hospitality (HT) | 1.44 | 62% | 9.0 | — |
| Braemar Lodges (BHR) | 1.43 | 89% | 11.5 | — |
| Ashford Hospitality (AHT) | 0.98 | 102% | 15.5 | — |
| Sotherly Lodges (SOHO) | 1.13 | 73% | 18.7 | — |
| InnSuites Hospitality (IHT) | 1.60 | 29% | — | — |
| REIT common resort | 1.81 | 41% | 9.5 | — |
| Total REIT common | 1.90 | 25% | 6.4 | — |
Supply: Hoya Capital Earnings Builder and TD Ameritrade
Within the desk above, values shaded in inexperienced are higher than each the Lodge REIT common and the general REIT common. Values shaded in yellow lie between the Lodge REIT common and the general REIT common. Values shaded in purple are under each averages.
As you may see from the underside two rows, the Lodge REIT sector is in worse form than the REIT sector total, with liquidity decrease and debt considerably increased.
There are lots of distressed stability sheets on this sector. Since we’re searching for the most effective Lodge REIT to spend money on, we are able to safely remove each firm whose Liquidity Ratio, Debt Ratio, or Debt/EBITDA is worse than the Lodge REIT common. That features each firm with any purple in its row of values. This eliminates all however 4 candidates: HST, APLE, SHO, and DRH.
This isn’t to say that not one of the different Lodge REITs may make you some cash as an investor. For instance, Sotherly Lodges (SOHO) was just lately designated by Zacks as a Robust Purchase. It is simply that with stability sheets that weak, they’re too huge a danger for my style.
Second Criterion: Funds From Operations
Wholesome firms do an excellent job of steadily rising revenues, that are greatest measured within the REIT world by FFO (Funds From Operations) per share. Let’s have a look at how our 4 candidates are doing in that regard.
| ticker | 3-year FFO Development | 5-year FFO Development | * 2022 FFO Development | * 2023 FFO Development |
| HST | ( -2.1)% | ( -0.3)% | 174% | 7.2% |
| APPLE | ( -3.2)% | ( -3.1)% | 58% | 13.6% |
| SHO | (-11.3)% | ( -8.0)% | 1750% | 33.8% |
| DRH | ( -6.1)% | ( -2.5)% | 633% | 17.0% |
| REIT common resort | (-6.4)% | (-15.0)% | 888% | 29.9% |
Supply: Hoya Capital Earnings Builder
*Projected
The trailing 3-year and 5-year FFO development numbers present that every one 4 of our candidates are outperforming the Lodge REIT common, which nonetheless hasn’t recovered to its pre-pandemic ranges. However all 4 considerably lag the general REIT averages of 9.1% and seven.8%, respectively. The exception is SHO, which is outperforming Lodges on 5-year development, however underperforming on 3-year development. Thus, Sunstone has been slightly slower to get better from COVID than the opposite three candidates.
The projected development figures for 2022 are gaudy. That’s largely as a result of most Lodge REITs simply returned to optimistic FFO final yr, so the comparables are extraordinarily straightforward. Thus, the projected 2022 Lodge REIT common FFO of $1.58 per share appears nice, in comparison with 2021’s common of simply $0.16. (Wow! that is an 887.5% improve! See what I imply?)
SHO appears nice on this yr’s projected FFO development column, exactly as a result of it was the slowest of the 4 candidates to return to optimistic FFO. By the identical token, APLE’s projected development of 58% appears anemic alongside the others’ triple-digit charges, however that’s as a result of APLE emerged sooner and stronger than the others, so its comparables are tougher.
Probably the most significant and eye-opening determine on this desk is the Lodge REIT sector’s projected common FFO development per share for 2023: a whopping 29.9%. Of our 4 candidates, solely SHO outpaces the pack on that metric. The others lag the projected common, exactly as a result of they’ve emerged sooner and stronger than the others.
All 4 of our candidates are projected to develop at wholesome charges.
Dividend metrics
That is the place we begin to see some separation. Itemizing our 4 candidates once more so as by market cap, a transparent favourite emerges.
| Firm | Div. Yield | 3-yr Div. Development | Div. Rating | Payout | Div. Security |
| HST | 2.72% | (-18.9)% | 1.45 | 30% | A |
| APPLE | 5.29% | (-11.2)% | 3.70 | 50% | A+ |
| SHO | 0.00% | (-33.0)% | 0.00 | 10% | — |
| DRH | 0.00% | (-33.0)% | 0.00 | 10% | — |
| REIT motels avg | 1.71% | (-26.3)% | 0.68 | 17% | A |
| REITs total | 3.38% | 6.2% | 4.05 | 59% | C |
Supply: Hoya Capital Earnings Builder, TD Ameritrade, In search of Alpha Premium
Dividend Rating initiatives the Yield three years from now, on shares purchased immediately, assuming the Dividend Development fee stays unchanged.
As you may see, APLE far outshines the opposite candidates in present Yield, and in reality, APLE is paying effectively above the REIT common, at 5.29%. Each firm within the Lodge sector eradicated its dividend throughout the COVID sell-off. APLE was the primary to revive its dividend. So when dividend development fee is taken into consideration within the Dividend Rating, APLE emerges just a bit under the REIT common, at 3.70, however far forward of second-place HST at 1.45.
Valuation metrics
Let’s record our candidates so as by dividend rating now, and have a look at valuation.
| Firm | Div. Rating | Value/FFO ’22 | Premium to NAV |
| APPLE | 3.70 | 10.4 | (-16.5)% |
| HST | 1.45 | 9.9 | (-23.3)% |
| SHO | 0.00 | 13.9 | (-14.6)% |
| DRH | 0.00 | 9.1 | (-190)% |
| REIT common resort | 0.68 | 10.2 | (-22.4)% |
| Total REIT common | 4.05 | 19.5 | (-5.0)% |
Supply: Hoya Capital Earnings Builder, TD Ameritrade, and creator calculations
The common Lodge REIT these days is “discount” priced at 10.2 instances FFO for 2022, barely over half the Value/FFO ’22 of the common REIT. Our 4 candidates are clustered close to the Lodge REIT common, with SHO on the excessive facet at 13.9x, and DRH on the low finish at 9.1. The distinction is sufficient to drop SHO to fourth place, however does not warrant any change within the first and second decisions. Solely Host Lodges (HST) trades at a reduction larger than the Lodge REIT common, and simply barely.
Market cap “Candy Spot”
Analysis by Hoya Capital signifies that the scale of a REIT exerts an actual affect on its complete return. The optimum dimension is “higher mid-cap,” from $4 – $10 billion. That is the Candy Spot. Subsequent greatest is massive cap, then “decrease mid-cap,” from $1.4 – $4 billion. Small cap REITs convey up the rear.
Right here is how our 4 candidates stack up on this key issue.
| Firm | Market Cap |
| Hosted Lodges & Resorts (HST) | $12.6 B |
| Apple Hospitality (APLE) | $3.6 B |
| Sunstone Lodge Traders (SHO) | $2.4 B |
| DiamondRock Hospitality (DRH) | $1.9 B |
Supply: TD Ameritrade
Of the 4, APLE is the closest to the Candy Spot, at $3.6 billion. The following most favorable spot is held by HST, at $12.6 billion.
Dialogue
That is sort of a no brainer. As a result of practically all Lodge REITs pay very low dividends, investing in any of them besides APLE is a price play. Traders aren’t fairly as yield-crazy as they had been earlier within the yr, and the true value of cash has come down some. So the atmosphere for development investing is healthier than it was in January, but it surely nonetheless is extra of a price investor’s atmosphere. From a development standpoint, it’s tough to establish a frontrunner within the pack. Nonetheless, from a price standpoint, there is no such thing as a contest, as a result of one firm boasts a vastly superior dividend.
And the winner is . . .
The Lodge REIT that emerged first and strongest from the pandemic, with a robust runway of FFO development, the primary to revive its dividend, and the one one which pays an above-REIT-average Yield:
Apple Hospitality REIT
MetLife Funding Administration LLC Has $3.77 Million Holdings in Host Motels & Resorts, Inc. (NASDAQ:HST)
MetLife Funding Administration LLC raised its place in Host Motels & Resorts, Inc. (NASDAQ:HST – Get Ranking) by 23.1% in the course of the first quarter, in line with its most up-to-date submitting with the SEC. The agency owned 194,133 shares of the corporate’s inventory after buying an extra 36,374 shares in the course of the interval. MetLife Funding Administration LLC’s holdings in Host Motels & Resorts had been price $3,772,000 as of its most up-to-date submitting with the SEC.
Different institutional buyers have additionally just lately modified their holdings of the corporate. Tcwp LLC acquired a brand new place in Host Motels & Resorts within the first quarter valued at roughly $31,000. Harvest Fund Administration Co. Ltd boosted its stake in Host Motels & Resorts by 118.2% in the course of the first quarter. Harvest Fund Administration Co. Ltd now owns 2,147 shares of the corporate’s inventory price $41,000 after buying an extra 1,163 shares within the final quarter. Riverview Belief Co grew its holdings in Host Motels & Resorts by 83.6% within the first quarter. Riverview Belief Co now owns 2,389 shares of the corporate’s inventory price $46,000 after buying an extra 1,088 shares in the course of the interval. UMB Financial institution NA MO purchased a brand new stake in Host Motels & Resorts within the fourth quarter valued at $50,000. Lastly, Rockefeller Capital Administration LP raised its holdings in shares of Host Motels & Resorts by 80.4% in the course of the fourth quarter. Rockefeller Capital Administration LP now owns 3,030 shares of the corporate’s inventory valued at $52,000 after buying an extra 1,350 shares in the course of the interval. 98.79% of the inventory is owned by institutional buyers.
Host Motels & Resorts Inventory Efficiency
Shares of Host Motels & Resorts inventory opened at $17.64 on Thursday. The enterprise’s fifty day easy shifting common is $18.04 and its 200 day easy shifting common is $17.76. The corporate has a present ratio of 11.29, a fast ratio of 11.29 and a debt-to-equity ratio of 0.62. Host Motels & Resorts, Inc. has a 12 month low of $15.10 and a 12 month excessive of $21.63. The agency has a market capitalization of $12.61 billion, a P/E ratio of twenty-two.05 and a beta of 1.22.
Host Motels & Resorts (NASDAQ:HST – Get Ranking) final launched its earnings outcomes on Wednesday, August third. The corporate reported $0.36 EPS for the quarter, lacking analysts’ consensus estimates of $0.48 by ($0.12). Host Motels & Resorts had a return on fairness of 8.86% and a internet margin of 13.34%. Throughout the identical interval within the prior yr, the agency earned $0.12 EPS. As a bunch, analysts anticipate that Host Motels & Resorts, Inc. will put up 1.79 EPS for the present yr.
Host Motels & Resorts Will increase Dividend
The enterprise additionally just lately declared a quarterly dividend, which might be paid on Monday, October seventeenth. Buyers of report on Friday, September thirtieth might be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized foundation and a dividend yield of two.72%. It is a enhance from Host Motels & Resorts’s earlier quarterly dividend of $0.06. Host Motels & Resorts’s payout ratio is 30.00%.
Analysts Set New Worth Targets
A lot of brokerages just lately commented on HST. Truist Monetary boosted their goal worth on Host Motels & Resorts from $19.00 to $21.00 and gave the corporate a “maintain” ranking in a analysis report on Wednesday, June 1st. Wells Fargo & Firm raised shares of Host Motels & Resorts from an “equal weight” ranking to an “chubby” ranking and lifted their worth goal for the corporate from $20.00 to $21.00 in a analysis report on Monday, August twenty ninth. Citigroup boosted their worth goal on shares of Host Motels & Resorts to $22.00 in a analysis observe on Monday, August fifteenth. Barclays dropped their worth goal on shares of Host Motels & Resorts from $23.00 to $22.00 and set an “chubby” ranking on the inventory in a analysis observe on Thursday, July seventh. Lastly, Evercore ISI reiterated an “outperform” ranking and set a $23.00 worth goal on shares of Host Motels & Resorts in a report on Monday, July eleventh. 4 analysts have rated the inventory with a maintain ranking and 7 have issued a purchase ranking to the corporate. Primarily based on knowledge from MarketBeat.com, Host Motels & Resorts presently has a consensus ranking of “Reasonable Purchase” and a median worth goal of $22.00.
Host Motels & Resorts Profile
(Get Ranking)
Host Motels & Resorts, Inc is an S&P 500 firm and is the biggest lodging actual property funding belief and one of many largest homeowners of luxurious and upper-upscale inns. The Firm presently owns 74 properties in america and 5 properties internationally totaling roughly 46,100 rooms.
Additional Studying
Need to see what different hedge funds are holding HST? Go to HoldingsChannel.com to get the most recent 13F filings and insider trades for Host Motels & Resorts, Inc. (NASDAQ:HST – Get Ranking).
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.jpg "Suggestions and tips to scale up your backside strains this Valentine’s")
Suggestions and tips to scale up your backside strains this Valentine’s
Love is within the air and it is a lovely time for eating places to ramp up their footfall by attracting love birds and singles alike. The discretionary spending of shoppers surge by an ideal margin throughout Valentine’s week and in accordance with the Retail Promoting and Advertising Affiliation, about 13 billion {dollars} is spent by shoppers every year round this time.
So faucet into the huge potential and be sure to’re within the lead this Valentine’s Day by adopting the following tips and tips which can work wonders in your backside strains!
1. Particular Reductions and Provides
Convey your clients to the middle and provide real reductions to assist them have a good time their love. You possibly can run particular singles low cost to make them really feel included or give out a 15% off on each tenth order of the day to make your clients really feel fortunate and particular. Curate a unique set of reductions and appeal to extra shoppers all through the week.
2. Promote it properly
Market your presents properly. With out advertising and marketing them and spreading consciousness about your initiatives, the train might be futile. Guarantee your social media is updated and offline advertising and marketing is completed proper with upgraded pamphlets and flyers. Additionally, be sure to section your clients and run focused campaigns so your most loyal clients get the utmost advantages.
3. Make it Straightforward to Guide Reservations
It’s clearly that point of the yr when you do not need any technical glitches which might trigger inconvenience in your clients or your employees. So be sure to’re capable of take reservations seamlessly, deal with tables and handle queues. Practice your employees properly prematurely to handle rush hours throughout the week.
4. Shock your buyer
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You may give out particular mementos throughout Valentine’s week to make your buyer bear in mind the candy gesture and make them come again time and again. It may very well be a complimentary dessert or the restaurant’s signature dish or perhaps a piece of inventive cutlery.
5. Particular Menu
Curate a particular menu just for Valentine’s Day and create sufficient buzz round it. Present particular dishes or fusions meals as a restricted interval providing to extend your pool of shoppers and in addition enhance your repeat buyer fee in the long term.
6. Concentrate on the expertise
Final however not the least, construct a extra experiential ambiance in your buyer. Host comedy nights, singles occasions, dwell music, or video games nights to present an idiosyncratic and holistic expertise to your buyer.
So get able to see your restaurant bustling with crowd this Valentine’s and stand up to your ears. These advantages will preserve your toplines surging even past the festivity so don’t miss out and be sure to do capitalize on the hovering romance within the wind.
An all-inclusive guide to restaurant branding
The food-service industry is both competitive and crowded; new establishments enter the market every day. In this environment, strong restaurant branding is a must. Well done, it can help your business stand out from the crowd and build customer loyalty.
What is restaurant branding?
Restaurant branding is the process of creating a recognizable identity for your restaurant. A great brand is both visual and experiential; it encompasses the different ways customers interact with the company. This includes visual components, such as your logo design, menu layout and signature colors, as well as big-picture elements, such as the brand voice and core values.
Branding helps you carve out a place for your restaurant in a challenging industry. It communicates how your establishment is different from competitors so customers can make an informed choice.
Think about the most popular restaurants you know — chances are, they have strong brand identities. That’s because successful restaurant branding comes with a few key benefits:
- Easier customer acquisition. A strong identity builds brand awareness and recognition, ensuring potential customers know about your restaurant and understand your unique selling proposition (USP). This familiarity increases the chances that diners will choose your establishment for their next meal.
- Higher customer retention rates. After a customer dines at your restaurant, your branding reminds them of the experience and encourages them to come back for more. Because it’s cheaper to retain existing customers than to find new ones, this perk can boost your bottom line.
- Better brand loyalty. When your brand messaging resonates deeply with customers who share the same values or preferences, it can build long-lasting brand loyalty. Loyal customers are more likely to try new foods, attend events and spend more money at your business.
- Consistent customer experience. When your branding is clear across all touchpoints, guests know they can rely on you to deliver a consistent experience. This can give your restaurant a competitive advantage when customers are in the mood for something specific.
- Increased order volume and revenue. If a customer loves your brand, they’re more likely to share it with friends and family. In many cases, a personal referral is all it takes to convince a new customer to try your restaurant.
- Easier hiring. A recognizable brand helps attract job seekers who fit your restaurant’s personality and values — a big advantage when it comes to hiring and retaining employees.
How to build a brand in the restaurant industry
Next to creating the menu, building a strong brand identity is one of the most impactful things you can do as a restaurant owner. Take your time with each step — an intentional, thoughtful process helps you get it right on the first try.
1. Research your target audience
Restaurants get nearly all of their business from dine-in customers and delivery orders. To succeed, your brand must meet the needs of the local market.
To start, determine how many of your customers are:
- Local residents
- Just passing through
- Tourists in the city or region
Then, break down each group into different demographics. How old are they? Why are they dining out? What are their dietary preferences? What are their priorities? What food do they like?
The more you know about your target audience, the easier it is to identify what they look for in a restaurant brand. Local health-conscious diners might want fresh ingredients, while college students are likely to prioritize price. People who are just passing through probably want a convenient location and fast service.
2. Define your restaurant brand
This is the most important step in the restaurant branding process: defining your brand. Your goal is to distill your business ideas into a clear, concise concept. Start by identifying key elements:
- Mission. This statement describes what your restaurant does. For example, the mission of sweetgreen is “building healthier communities by connecting people to real food.”
- Vision. A vision statement explains what you want your restaurant to achieve in the future. It gives your brand something to strive for.
- Brand values. These are the core beliefs that inform all your business decisions. For example, Chipotle’s brand values include “making food fresh every day,” “fighting for our planet” and “treating our people right.”
- Unique selling proposition. Your USP is the element that distinguishes you from competing restaurants in your area. It should be something that benefits customers, such as a unique atmosphere, new cuisine or fast service. Think about what sets your restaurant apart.
- brand positioning. This concept refers to how you position your brand to affect customer perception; it’s directly connected to your USP. You might position yourself as the go-to spot for healthy lunchtime takeout or the most romantic date-night restaurant in town. Think of how your restaurant will serve customers.
- Concept. A restaurant concept defines the overall theme, atmosphere and service type. This will help you when you start physically planning your restaurant.
- Signature dishes or ingredients. Identify the foods that will be the stars of your menu. This might include the chef’s specialty dishes, a unique local ingredient or seasonal ingredients.
- Aesthetic. Describe how you want the restaurant branding to look. It might be clean and modern, bold and colorful, or cozy and earthy.
It’s not uncommon to discover areas of overlap between different restaurant branding ideas. If you’re opening the only counter-service spot in town, for example, your restaurant concept might also be its USP.
3. Develop your brand identity
Now that you have a clear understanding of your restaurant brand, it’s time to create a brand identity — the elements that help customers recognize your company.
First, develop a strong foundation:
- Brand name. This is the name of your restaurant. It often conveys something specific about your location, personality, style or cuisine.
- Brand personalities. List the characteristics of your restaurant to explain the vibe and diner experience. You might use words such as fun, sophisticated, youthful, innovative or healthy.
- Brand voice. Your brand voice is the way you use words to express the restaurant’s personality in marketing materials, menu descriptions and customer communications. Consider your tone, vocabulary choices and style. A trendy bistro might use slang terms, and if you run a cozy local coffee shop, you could write as though you’re speaking to a friend.
- Brand stories. Write a short narrative that explains your restaurant’s origins, mission, vision and values. Keep this handy so you can add an “about us” section to your restaurant’s website further down the line.
Finally, it’s time to create the most recognizable part of a brand: the visual elements. These are the things that create the look and feel of your brand. At a minimum, you should:
As you develop these visual brand elements, ensure each one reflects the intangible elements of your restaurant — namely, its personality and style. If you’re building a fun, family-friendly restaurant, you can use playful fonts, bold colors and saturated food photos on the menu. A fine-dining establishment might opt for script fonts, a sparse menu design and black-and-white photos.
For a restaurant, interior design is an extension of the brand’s visual identity. It should match the overall aesthetic of your logo, fonts and colors to create a cohesive brand image and a consistent experience.
4. Create a restaurant branding strategy
The last step in restaurant branding is getting your new brand in front of your target audience. Use a variety of marketing tactics to build name recognition and awareness.
- social media Build profiles on popular social media apps like Facebook, Instagram and TikTok. This is one of the best ways to directly connect with customers and introduce them to your brand. Use your visual identity elements wherever possible to help customers recognize your brand. Individual posts are a great place to showcase and refine your brand voice.
- Email marketing. Collect email addresses from your guests and/or buy access to local mailing lists. Send marketing emails to promote specials, new menu items and events.
- Influencer marketing. Pay local micro food influencers to promote your restaurant to their blog readers and social media followers. Social media influencers can have a direct impact on growing your brand’s reach.
- Online ordering. Build visibility among local diners by putting your restaurant on an online ordering platform such as Grubhub. This will give your restaurant instant access to a large cohort of customers.
Branding best practices
Restaurant branding is different for every company; your brand strategy should be tailored to your business, food and guests. To build a successful restaurant brand, use these best practices:
- Create brand guidelines to maintain consistency for visual elements and food photos.
- Make sure your messaging is clear and consistent from channel to channel.
- Build brand integrity with friendly, helpful customer service.
- Respond to customer comments and reviews using your brand voice.
- Share your brand story on social media accounts.
- Post regularly on your blog and social media to increase brand awareness.
- Hone in on your company’s unique qualities to develop a one-of-a-kind brand.
- Add branding elements to your to-go and delivery packaging.
By following these tips you can design a restaurant brand that will strongly resonate with customers and grow your ROI.
Grow your brand with a trusted partner
The more exposure customers have to your restaurant branding elements, the more familiar they become. Your delivery partner can be a valuable asset — a reputable platform like Grubhub gets your restaurant and menu in front of customers who are actively looking for new places to eat. Sign up today to start increasing order volume and building brand awareness.
9 trends in AI in restaurants
Technology is rapidly evolving in businesses, and the restaurant industry is no exception. Restaurateurs are learning that utilizing technology can make their operations smoother, growing their business. Advancements like AI in restaurants have made technology more accessible to businesses, introducing conversational language to make it easier for business owners, staff and customers to interact with technology.
The great thing about AI is that it’s a technology that can cater directly to your business needs. Don’t worry – this isn’t a technology that will take over your business, rather work for you, improving operations and streamlining your kitchen. And even better, with evolutions like ChatGPT, accessing this technology is easier than ever.
Take a look at our tips on how you can implement AI into your business to improve the experience for both your employees and customers.
What is AI?
AI (or artificial intelligence) is the simulation of human intelligence by computer systems. AI uses machine learning and predictive analytics to interact with humans. AI systems have the ability to ingest large amounts of data, look for patterns and correlations and make future predictions or answer questions. AI takes machine learning to the next level by using a variety of techniques to generate creative solutions.
No two restaurants are the same, and the needs of each restaurant owner are different. AI has made working with technology more personalized to each business.
What is ChatGPT?
ChatGPT makes conversing with AI simple. It uses an AI language processing tool to allow for human-like conversations with a chatbot. ChatGPT was created by OpenAI, and taps into the power of Google to spit out answers to user-generated questions. It’s like having your own personal assistant – for free!
The great thing about ChatGPT is that it’s moldable. You can be as specific or vague as you want, performing endless tasks like dishing up food industry trends or writing your menu descriptions. You can specify the format you want the program to deliver (like a social media caption) and limit the amount of content it will produce (like asking it to use 200 characters).
Don’t know what to ask ChatGPT? Ask them the best way to use ChatGPT for restaurants. For example, if you type “What are good questions to ask you about running my restaurant?” ChatGPT will respond with a list of questions you can explore like “What are some effective strategies for managing food costs in a restaurant?” or “What are some best practices for hiring and training restaurant staff?” Plug in those questions and ChatGPT will instantly serve you an in-depth answer.
Get started with ChatGPT by creating your free account.
Why should restaurants implement AI?
Working in the restaurant industry is chaotic, and turning to technology like AI can help make daily operations smoother. Using AI tools can help make your most ambitious restaurant ideas a reality.
AI integrations have helped restaurants by:
- Improving efficiency and accuracy. AI eliminates the risk of human error, increasing your accuracy to improve efficiency.
- Streamline Labor. AI can help complete restaurant tasks, reducing your labor costs and curbing employee turnover.
- Making smarter decisions. AI analyzes restaurant information and data to help you make more informed business decisions based on industry trends and your restaurant’s performance.
- Creating content. ChatGPT can write menu descriptions, social content and marketing materials for your restaurant.
- Cutting costs. AI can help you analyze your spending and finances to improve your ROI.
- Customize the customer experience. AI can allow for menu customization to allow your diners to have more control over their dishes and experience.
- Growing customer base. AI has helped restaurants grow their customer base by finding new diners and improving their reputation by responding to customer inquiries and creating engaging content.
9 ways to use AI in your restaurant
Ready to give AI a shot? Here are some ways you can utilize AI in your restaurant.
1. Phone operations
With the help of voice assistants, AI can talk directly to your customers and become your personal phone assistant. Answering phones requires employee labor, and if you grow your business, it can be difficult to always be on the line. In a Popmenu survey, 83 percent of customers will move on and find another restaurant if they try to call and get voicemail more than once. Enabling AI phone technology can allow you to care for your customers without the extra labor.
Tools like SoundHoud allow you to customize your phone system’s answers to talk with customers to answer questions and take orders. You can customize your AI phone answering to take reservations, answer frequent questions and take messages.
2. Take orders
Self-service ordering is rising in popularity. It makes the process easier for customers who can easily see all the menu options at their fingertips, and it helps staff avoid wasting time taking orders. AI makes online ordering even easier by reacting to customer behavior and predicting their next move.
Fast casual restaurants have been some of the first businesses to embrace AI ordering. Taco Bell’s in-store kiosks use AI to identify up-sale opportunities based on the customer’s order, and McDonald’s opened their first completely digital restaurant in Texas.
Not all AI integrations are a total robot takeover, and there are simple ways you can use AI to help with customer orders.
POS integration is one of the most common AI tools restaurateurs use. These tools help simplify order and menu management by connecting your different POS systems. This way you can keep track of orders, inventory and staff all from one place.
3. Get industry insights
Keeping up with the ever changing restaurant industry is difficult, especially as customer habits and tastes change. AI is a great tool for gathering and sorting through trend information. ChatGPT taps into the power of Google, making research simple. Try asking ChatGPT questions about the restaurant industry to get insight into customer cravings.
What kinds of questions should you try asking ChatGPT?
- What are the top ordered restaurant foods?
- What fruits and vegetables are in season right now?
- What is the most popular way to serve chicken?
- What are the top ordered dinner foods?
4. Enhance your menu
Research shows that menus with images and dish descriptions resonate better with customers. Now, you can create the perfect menu with the help of AI. You can use ChatGPT to generate menu text by asking them to create a one-sentence description of your dishes. Looking for menu photo tips for your cuisine? Ask ChatGPT for help on composition and style. Wondering what recipes are in season? Ask ChatGPT what’s trending.
AI’s influence in menu engineering doesn’t stop there. Technology has enabled restaurants to get a better handle on their inventory. Solutions like ClearCOGS offer a kitchen ingredient management system that can keep track of your inventory to help you plan food preparation and ordering.
5. Analyze data
Odds are you have many types of restaurant technology in your restaurant, and some of these systems are collecting valuable data. Take Grubhub, for example. Our platform collects data on your customers, and serves it up to you in our Customer Insights dashboard.
Digging into data is one of the best ways to understand your customers, staff, supplies and overall business. Don’t bite off more than you can chew by trying to dig through this data on your own. You can use AI to analyze data, segment customers, organize information and find insights.
Want to create a targeted marketing campaign? Copy and paste your customer data into ChatGPT and ask them to pull out repeat customers. You can then create marketing materials specifically tailored to this customer base.
Let’s say you want to understand your customers’ impressions of your restaurant. You can copy and paste the reviews into ChatGPT and ask it to look for the main trends. You’ll then get insight into the general sentiment of your customers to help make adjustments to make their experience more positive.
You can also use AI to track operational data from your restaurant. AI can help you analyze busy and quiet business hours so you can adjust your staffing accordingly.
6. Keep track of finances
When it comes to keeping track of your finances, you only want to use technology you can trust. With POS integration, you can search and find fraudulent or inconsistent transactions, look at purchasing data and understand transaction trends. With this info, you can better prepare your inventory and adjust prices based on the Cost of Goods Sold (COGS).
You can use AI to unpack your restaurant’s finances. ChatGPT can help you analyze your pricing menu so that you can competitively price your items. You can ask ChatGPT the average price of a specific menu item, or how much specific ingredients cost in different seasons.
7. Organize operations
As a restaurant owner, you have a lot on your plate. Relieve some stress by allowing AI to take care of tedious tasks. As we’ve mentioned, POS integration can be a lifesaver for restaurant owners by tapping into AI to streamline operations.
Turning to technology to handle these tasks that could take employee hours gives your staff back valuable time they can invest in other areas of your business. AI tools can help you schedule employees based on busy times so that you’re prepared to handle a rush. You can also use your POS system to keep track of inventory so you can get 86 items as soon as they run out.
AI can help you make informed decisions about your restaurant, predict inventory changes, customer trends and employee needs so you can stay on top of your business.
AI can also help you communicate with your employees. Need help creating onboarding materials for your staff? ChatGPT can write it for you. Just ask it to write a training guide for a certain position.
8. Create marketing materials
Without marketing, customers won’t know about your restaurant. But with marketing campaigns getting more creative, it can be hard to come up with ideas that stand out. That’s where AI can come in – generating ideas and copy for all your marketing needs.
A good marketing campaign covers all bases: social media, email, website and paper inserts. ChatGPT can help you write copy that is optimized for each platform. Let AI help you create targeted marketing materials that resonate with your customers.
Social media marketing is one of the best ways to reach customers directly, but coming up with what to post can be overwhelming. AI can help you create content, write captions and understand trends. You can use ChatGPT to come up with social media captions, hashtags and respond to comments and messages.
9. Improve the customer experience
Finding and attracting new customers is difficult for any restaurant. You can use AI to help you interact with customers to ensure they have a positive experience with your business.
Responding to reviews is a tedious yet necessary task to keep your customers satisfied. Solutions like Chatmeter have made understanding and interacting with customers easier by compiling all the online conversations about your brand.
AI can also help you craft a response to negative reviews. Timeliness for responding to these reviews is key to showing a customer you care. If a customer writes a review on your website claiming that their service was poor, you can ask ChatGPT to craft a response.
AI features on online ordering tools remember a customer’s history to customize featured offerings based on their behavior. When a customer orders from your restaurant on Grubhub Marketplace, the platform will remember their preferences when they come back to order again. This technology helps make restaurant visits more consistent, prompting repeat customers to continue ordering.
Grow your restaurant technology with a trusted partner by your side
Embracing the latest trends in restaurant technology can help grow your business. Innovations like AI give restaurants the power to streamline their owners’ operations and customize their customer experience. POS tools have made embracing new technologies even easier by improving how restaurants manage orders, inventory and customer data.
No matter how you plan on tapping into AI tools at your restaurant, there’s no doubt that this technology is here to stay. Why not get ahead of the trend?
Ready to grow your business and attract new customers? Partner with Grubhub today to tap into the latest in restaurant technology.
Park Hotels & Resorts Inc. (NYSE:PK) Shares Sold by Dimensional Fund Advisors LP
Dimensional Fund Advisors LP decreased its holdings in Park Hotels & Resorts Inc. (NYSE:PK – Get Rating) by 4.9% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,908,699 shares of the financial services provider’s stock after selling 148,720 shares during the quarter. Dimensional Fund Advisors LP’s holdings in Park Hotels & Resorts were worth $34,293,000 as of its most recent SEC filing.
A number of other institutional investors have also recently made changes to their positions in the business. Treasurer of the State of North Carolina boosted its position in shares of Park Hotels & Resorts by 1.3% in the 4th quarter. Treasurer of the State of North Carolina now owns 96,741 shares of the financial services provider’s stock worth $1,141,000 after purchasing an additional 1,230 shares in the last quarter. HighTower Advisors LLC raised its stake in Park Hotels & Resorts by 35.9% in the 4th quarter. HighTower Advisors LLC now owns 25,685 shares of the financial services provider’s stock worth $305,000 after acquiring an additional 6,790 shares during the last quarter. Coombe Bender & Co LLC raised its stake in Park Hotels & Resorts by 2.3% in the 4th quarter. Coombe Bender & Co LLC now owns 269,042 shares of the financial services provider’s stock worth $3,172,000 after acquiring an additional 6,082 shares during the last quarter. Van ECK Associates Corp raised its stake in Park Hotels & Resorts by 79.9% in the 4th quarter. Van ECK Associates Corp now owns 23,250 shares of the financial services provider’s stock worth $274,000 after acquiring an additional 10,326 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in Park Hotels & Resorts by 2.4% in the 4th quarter. Russell Investments Group Ltd. now owns 482,138 shares of the financial services provider’s stock worth $5,684,000 after acquiring an additional 11,212 shares during the last quarter. Institutional investors and hedge funds own 89.42% of the company’s stock.
Wall Street Analyst Weigh In
A number of equity analysts recently issued reports on the company. Truist Financial raised their target price on Park Hotels & Resorts from $19.00 to $20.00 in a research note on Tuesday, May 2nd. Deutsche Bank Aktiengesellschaft lifted their price objective on Park Hotels & Resorts from $20.00 to $21.00 in a research note on Tuesday, May 2nd. TheStreet upgraded Park Hotels & Resorts from a “d+” rating to a “c” rating in a research note on Wednesday, February 22nd. Morgan Stanley reduced their price objective on Park Hotels & Resorts from $14.00 to $13.00 and set an “equal weight” rating for the company in a research note on Monday, April 17th. Finally, Wells Fargo & Company cut Park Hotels & Resorts from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $17.00 to $12.50 in a research report on Thursday, March 30th. Eight investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $17.55.
Park Hotels & Resorts Trading Up 0.4 %
PK stock opened at $12.99 on Friday. The company has a current ratio of 3.05, a quick ratio of 3.05 and a debt-to-equity ratio of 1.09. Park Hotels & Resorts Inc. has a 12-month low of $10.70 and a 12-month high of $19.47. The stock has a market cap of $2.80 billion, a price-to-earnings ratio of 11.70, a PEG ratio of 0.70 and a beta of 1.95. The business’s 50-day moving average is $12.46 and its 200 day moving average is $12.70.
Park Hotels & Resorts (NYSE:PK – Get Rating) last issued its earnings results on Monday, May 1st. The financial services provider reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.17). The company had revenue of $648.00 million for the quarter, compared to analyst estimates of $617.04 million. Park Hotels & Resorts has a return on equity of 5.90% and a net margin of 9.44%. The company’s revenue for the quarter was up 35.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.08 earnings per share. On average, sell-side analysts anticipate that Park Hotels & Resorts Inc. will post 1.93 EPS for the current fiscal year.
Park Hotels & Resorts Cuts Dividends
The business also recently announced a quarterly dividend, which was paid on Monday, April 17th. Stockholders of record on Friday, March 31st were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 4.62%. The ex-dividend date of this dividend was Thursday, March 30th. Park Hotels & Resorts’s dividend payout ratio is currently 54.05%.
Park Hotels & Resorts Profile
(Get Rating)
Park Hotels & Resorts, Inc operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts includes the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio.
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American Hotel Income Properties REIT (OTCMKTS:AHOTF) Price Target Raised to C$3.00 at National Bank Financial
American Hotel Income Properties REIT (OTCMKTS:AHOTF – Get Rating) had its price objective hoisted by National Bank Financial to C$3.00 in a research report released on Monday morning, The Fly reports.
Separately, Scotiabank dropped their price objective on American Hotel Income Properties REIT from C$3.75 to C$3.50 in a report on Tuesday, March 7th.
American Hotel Income Properties REIT Stock Performance
AHOTF opened at $1.90 on Monday. American Hotel Income Properties REIT has a one year low of $1.69 and a one year high of $3.06. The business’s 50-day simple moving average is $1.84 and its 200-day simple moving average is $1.97.
About American Hotel Income Properties REIT
(Get Rating)
American Hotel Income Properties REIT LP engages in investing in hotel real estate properties. Its long-term objectives are to: increase the value of its hotel properties through operating excellence, active asset management and invest in value-added capital expenditures, expand its hotel portfolio through acquisitions on an accretive basis, and increase unitholder value and distributions to unitholders .
See Also
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How to get a liquor license
Alcohol can be a profitable revenue stream for your restaurant. It’s an easy win — the markup is high, the labor requirements are low, and the product has a long shelf life. In fact, the average restaurant makes about 20% to 25% of its income from alcohol sales. Before you can add beer, wine or spirits to your menu, however, you’ll need a valid liquor license.
What is a liquor license?
A liquor license is the permit you need to make, distribute or sell alcohol legally. These licenses are usually issued by your state, but counties and cities may also set additional restrictions. While each area has its own rules, most liquor licenses regulate factors such as:
- The types of liquor you can sell
- When you can sell alcohol
- Where customers can consume the alcohol they buy
- Limits on alcohol sales
- Who can buy alcohol from you
- Price limits on alcohol
It’s important to understand the specific liquor laws for your state, county and city — after all, you’ll need a license before you can sell a single drink. Most areas offer several license classes to suit different establishments. Common classes include:
- Beer and wine. These licenses allow you to sell beer, wine, cider and occasionally other malt beverages. Most areas have distinct beer and wine licenses for bars, restaurants, wineries, breweries and catering businesses.
- All-liquor. This license goes by many names, but it typically permits you to sell beer, wine and spirits.
- Tavern. A tavern license is designed for establishments where alcohol makes up the majority of sales.
- Hotel. Hotels that serve alcohol on the premises need this type of license, which may offer both on-premises and off-premises consumption.
- Brewing. A brewing license allows an establishment to brew its own beer and sell it to customers. Other licenses may also be required.
Most states have multiple variations on these licenses that specify whether you need to sell food, if customers can take their drinks to go and rules for live entertainment. Make sure to start early; the application process can take months.
How to get a liquor license
Your state’s liquor-control body, which is often called the Department of Alcoholic Beverage Control (ABC), typically handles the licensing process. It can tell you how to get a liquor license and advise you of any local laws that might affect the process. Some states require you to have a seller’s permit and appropriate business tax registrations before you can apply.
The process can vary by state, county and city but usually involves a variation of these steps:
- File an application. Contact your state’s ABC and file an application. You may be able to apply online; in certain areas, however, you’ll need to bring the application to the nearest ABC office. Expect to pay an application fee. You may also be able to apply for a temporary permit to sell alcoholic beverages before the official review process is complete.
- Post a public notice. Many areas require you to post a public notice in your restaurant to let customers know you’re applying for a liquor license. Certain states have additional rules for publishing a notice in the local newspaper or advising neighboring homes and businesses about your plans.
- Pay license fees. Depending on your area, you can expect to pay anywhere from $500 to $4,000 or more. There may also be additional fees if you need inspections or multiple licenses. You’ll also need to pay a renewal fee every 1 or 2 years.
- Wait for the licensing review. During this process, which can take anywhere from 1 month to 1 year, officials review your application. They’re likely to investigate you and your premises, as well as local laws. If you qualify, the state will either mail or hand-deliver your license.
- Post license and required notices. Most states require you to display your physical liquor license behind glass. Some also require alcohol warnings for minors and pregnant people.
Given the potential length of the application review, it’s important to integrate it into your planning process. Expect delays if issues arise or if your state has met its quota for new liquor licenses. If that’s the case, you will likely need to make do with a beer and wine permit until the next period begins.
Other bar licenses you may need
The liquor licensing process can be complex; you may need more than one permit, depending on the structure of your business. For example, if you plan to host live music, you’ll often need a separate license. In New York, it’s called a cabaret liquor license. Michigan has separate permits for businesses that offer catering, dancing, or entertainment. If you’re offering food, plan to get a health permit and a food service license.
You might also need a special alcoholic beverages license to:
- Offer extended hours
- Sell liquor at a secondary location
- host events
- Have a second bar
- Selling alcohol to members only
- Operate at a private golf club or a ballpark
Each license comes with its own fee, which could be anywhere from $500 to $1,000 or more. Most licenses are administered through the state ABC, but your city council may have additional requirements when you’re applying for a new license; the city clerk can provide details.
Grow your alcohol selection with Grubhub
Since 2020, alcohol delivery has been a growing trend; customers appreciate the ability to enjoy a drink with their meals at home. A number of states now allow restaurants to offer alcoholic beverages in addition to their regular menu. It can be a worthwhile investment — on Grubhub, the average order value increases by $14-$15 when you add alcohol.
If your state permits, Grubhub makes it easy to add alcohol to your delivery menu. You’ll need to package drinks separately and advise customers that delivery drivers will check IDs at the time of drop-off. You can streamline the process by taking steps to optimize your restaurant for beverage delivery. Choose secure packaging, for example, and make sure to provide insulation for hot or cold drinks.
Whether you’re hoping to offer alcohol sales on-site or with delivery orders, a liquor license is a must. Start the process well in advance and you can be ready to serve drinks as soon as you open them to the public.