National Restaurant Association Show 2024 Insider

8 takeaways from the 2024 Restaurant Show Behind the scenes at the industry’s biggest event

TECHNOLOGY What’s next for A.I., data & automation

WORKFORCE Cut labor costs and boost retention

MENU 10 trends to watch

COCA-COLA COLLECTIVE New tools to navigate labor, sustainability and traffic challenges

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National Restaurant Association Show 2024

https://www.youtube.com/watch?v=IeSJ6g53gOQ

N early 60,000 foodservice pro- fessionals descended on Chica- go last month for the National Restaurant Association Show, looking for ideas and innovations for their toughest business challenges. There was no shortage of options to explore — think: 2,200+ exhibitors, in 900+ product categories, spread out over 12 football fields worth of space. How does one make sense of it all? Look no further than this one-of-a-kind interactive report, brought to you by Na- tion’s Restaurant News and Restaurant Business. Our award-winning editorial teams were out in full force, walking the floor, tasting countless products, watching tech demos, asking tough questions and talking directly with hundreds of restau-

rant leaders to bring you the biggest trends in the industry now. In the following pages, you can find our teams’ key takeaways and hear insights di- rectly from their in-depth conversations with industry innovators. This official post- show recap is packed with videos, pod- casts, insights and data from the year’s biggest event. Maybe you couldn’t make it this year and want a taste of what you missed. Or per- haps you were there and just couldn’t take it all in. Either way, we’ve got you covered. Whether you’re looking to manage ris- ing labor costs, update your tech stack, re- vamp the menu or rethink the price/value equation, you’ll find everything you need to optimize your business for the rest of 2024 and beyond. We’ll see you back there next year.

Sam Oches Editor-in-Chief Nation’s Restaurant News

Jonathan Maze Editor-in-Chief Restaurant Business

COVER PHOTO: NATIONAL RESTAURANT ASSOCIATION SHOW / OSCAR & ASSOCIATES

THE SHOW AT A GLANCE

CONTENTS

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RESTAURANT SHOW 8 takeaways from the National Restaurant Association Show INDUSTRY INSIGHTS Coca-Cola Collective: New tools to navigate labor, sustainability and traffic challenges

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https://www.youtube.com/watch?v=pbOhY9pRfWU

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INDUSTRY INSIGHTS Operator Spotlight

LISTEN Podcast Spotlight

TECHNOLOGY 9 tech tidbits from the National Restaurant Show

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TECHNOLOGY How data has become the universal currency of restaurant tech TECHNOLOGY 4 challenges to address as AI takes over the restaurant industry WORKFORCE Labor takes center stage at the National Restaurant Association Show

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https://www.youtube.com/watch?v=p9tzlMAx3t0

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MARKETING How Gen Z is changing restaurant marketing

OPERATIONS Dynamic pricing a divisive subject at National Restaurant Show OPERATIONS Raising menu prices is not the only way to make a profit FOOD TRENDS Menu trends that went to the max at the National Restaurant Show BEVERAGE TRENDS Non-alcoholic spirits and boba emerge as major beverage trends National Restaurant Association Show 2024 Photo Highlights

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RESTAURANT SHOW

8 takeaways from the National Restaurant Association Show

Fewer robots, more sustainable packaging, AI and automation. And a whole lot of boba. T he teams from Nation’s Restaurant News and Restau- rant Business were out in full force at the recent National Restaurant Association Show in Chica- go, logging thousands of steps around the massive exhibit and education space — tasting new products, test- ing tech tools and spotting emerging trends. Here are a few of the things that stood out. Shifting labor models California’s minimum wage increases went into effect less than two months ago and the consensus from many attendees we spoke to is that the $20-an-hour threshold will spread far and wide. As such, labor efficiencies are top of mind. Whether those effi - ciencies are achievable via tech solu- tions, retention, culture or something else, the search has become desper- ate. “We’re getting more people this year asking us ‘how can you help us save on labor costs?’ Much more than last year. There’s more urgency. You can almost feel the weight,” said Julie Rudder from QSR Automations. Ian Wren, from kiosk company Bite, said many operators stopping by his booth were from California and were asking not just about how kiosks can generate higher check sizes – as has been the case in the past – but also how they can help save on labor costs. BY NRN & RB EDITORS

Sure, there were still burger flipping robotic arms and automated sushi makers, and even a couple of robots. But there were far fewer robots than last year and more so-called invisible tech solutions. Austin Prosser, a se- nior manager at Toast, said most peo- ple visited her booth to ask about AI and how it can benefit them for things like staffing to data usage. “Last year, everyone was talking about robots. This year, they’re all talking about AI,” she said.

“Even just two or three hours a day at open or close at $20 an hour adds up,” he said. This conversation, mind you, isn’t becoming more urgent just because of a $20 minimum wage, but also be- cause employees are demanding sim- plicity more than ever. They’re also demanding more purpose and culture from their restaurant employers. That mindset shift comes courtesy of the pandemic and is worthy of the deeper conversation that is currently happen- ing, according to gusto founder/CEO Nate Hybl. “Investing in your people is sneaky capitalistic. Happier employees create happier guest experiences and reve- nues go up,” he said. “It’s a great way to grow a business.” Robots take a backseat AI and automation solutions domi- nated the show floor even more than last year, but in sort of a different way.

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National Restaurant Association Show 2024

PHOTO CREDIT: ALICIA KELSO (TOP), ADOBE STOCK (BOTTOM)

Making Sustainability Profitable This industry has long strived to gen- erate more sustainable solutions, but this year sustainability was a much, much bigger part of the spotlight as evidenced by the volume of exhibitors touting eco-friendly products. Most of these exhibitors were packaging companies promoting features like compostable, recyclable, PFAS-free, or aqueous coating. Dave Lewis, with Detpak, said busi- ness is busier than it’s ever been, driv- en by increased regulations. He add- ed that there is also a higher need for such solutions because of elevated delivery and takeout traffic, requiring more packaging. Packaging certainly isn’t the only piece of this sustainability puzzle. More people are seeking food waste solutions both because it’s the right thing to do and because it’s a cost savings measure, according to Robb White of Leanpath. “Operators realize this is a way to save money during a time they are looking for more ways to save money because of all the other costs they’re dealing with,” White said. “Plus, you’re not just wasting your food, you’re wasting the labor that went into mak- ing that food. We just can’t do that as an industry anymore. We’re running on tighter margins.”

“ Last year, everyone was talking about robots. This year, they’re all talking about AI.” — Austin Prosser

AI may be a buzzword, but not for long Artificial intelligence is the preor - dained hot tech item at the Show this year, and for good reason. Swing a baguette and you’re likely to hit a tech vendor pitching their new AI tool. It has earned AI the reputation of being a buzzword, and that’s also fair: The technology has a lot of promise but it’s also become a bandwagon. Ask around though, and you’ll find plenty of people who are bullish on AI. Liz Moskow, a restaurant consultant who specializes in technology, says AI doesn’t deserve to get lumped in with

other emerging tech like robots. She believes it’s the real deal. Asked whether AI would ever be able to write a song with the same emotional weight as a human musi- cian, she said, “I do think AI will. It’s learning every day.” Dena Meek, the CEO and founder of an AI startup called XBlock, shared that view. She may be a little biased. But then again, she works with AI every day, and she said it only improves—it never goes backwards. “It’s going to be more powerful than us soon,” she said.

Beverages are having a moment We know consumers want more spe- cialty beverages and we definitely saw that reflected on the show floor – ev - erything from energy drinks to mat- cha to boba. Lots and lots of boba. We also saw more choices for rim- mers – beyond margarita salt. Twang had an entire display for its beverage accoutrements, from toppings and in-

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National Restaurant Association Show 2024

PHOTO CREDIT: FREEPIK.COM

INDUSTRY INSIGHTS

Coca-Cola Collective:

https://youtu.be/ARS5mwKTJR4

Connect with The Coca-Cola Company Here

How The Coca-Cola Company works to support the restaurant industry Dagmar Boggs of The Coca-Cola Company talks with Nation’s Restaurant News editor-in-chief Sam Oches during the 2024 National Restaurant Associ- ation Show about how the company works to drive the industry forward through education, data and other resources for restaurant operators. Hear how restaurants can tap into consumer insights, lead- ership tools and on-trend products to accelerate growth in challenging times.

The Coca Cola Company is a total beverage company with products sold in more than 200 countries and territories. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide including sparkling soft drinks, water, sports, coffee, tea, juice, value- added dairy and plant-based beverages. We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. We seek to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide.

Dagmar Boggs President, Foodservice and On-Premise North America Operating Unit

coca-colacompany.com

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National Restaurant Association Show 2024

New tools to navigate labor, sustainability and traffic challenges

Anton van Zyl of The Coca-Co- la Company talks with Nation’s Restaurant News during the 2024 National Restaurant Association Show about why sustainability is so important to today’s consumer and how restaurants can devel- op packaging, recycling and reuse programs that are both good for the earth and good for business. Building a sustainable restaurant packaging strategy

https://youtu.be/OrkWMNjYOro

Melanie Daigle and Eric Blumen- thal of The Coca-Cola Company talk with Nation’s Restaurant News during the 2024 National Restau- rant Association Show about how the company’s initiatives aim to help restaurant operators through their biggest challenges: Leader - oping employees, while Coca-Cola Lens empowers operators with must-have data and insights. Empowering the restaurant industry’s future leaders

https://youtu.be/hO4rReGXjqc

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National Restaurant Association Show 2024

8 takeaways from the National Restaurant Association Show

RESTAURANT SHOW

clusions to coloring and coatings. The company just partnered with Coca-Co- la, if you want to get a sense of how big this demand is becoming. Other notable drink samples in- cluded: a slushy-ice cream concoction accented with popping boba balls and a choice of crunchy toppings like crumbled ginger cookies and crispy chili-lime bits; a butterfly pea flower drink that changes color; and an Ins- tagram-ready, bubble-topped cocktail that releases a smoke-filled aroma when the bubbles are pierced. Several companies selling THC-in- fused cocktails and infused non-alco- holic spirit alternatives were showing off their wares in the Show’s bar area. The availability of these weed-spiked drinks currently varies widely, based on state regulations, but the drink makers said they are working on ex- panding their presence not only in restaurants but in grocery and conve- nience stores, too. One such company, Flora Hemp Spirits, sells a Delta 8 (25 mg of THC per 2 ounces) and a Delta 9 spirit (10 mg of THC per 2 ounces). The company also sells CannaCocktails, canned cocktails with 5 mg THC, and CannaSpritz, a seltzer with 3 mg of THC. Another brand, Wynk, which says it is legal in 37 states, sells flavored seltzers with a 1:1 THC-CBD content of 5 mg each. Cannabis-infused drinks are ready for prime-time “Everything’s driven by the consum- er. It’s very easy to see the opportuni- ty in this category because cannabis is being legalized and normalized. More people are trying it,” Adam Peabody, CEO of Flora Hemp Spirits, said. “I think in 5 to 10 years it will be a 50/50 market share split between THC-in- fused beverage and the alcohol cate- gory. It’s a generational thing. Cybersecurity a growing concern It is almost impossible to prevent a cyberattack, according to restaurant tech executives who spoke during a panel on cybersecurity Monday. The criminals have simply become too nu-

Von Kutzleben noted that the compa- ny used to determine labor based on sales. “But if you think about increas- ing prices, that wasn’t the best indi- cator of how to best serve the guest and the ebb and flow of customers,” she said. Now, she said, the company is using traffic patterns to determine labor. “It was a little bit of a no-brain- er,” she said. Takeout and delivery at Applebee’s has soared in recent years, particularly after the pandemic. The casual-dining chain is eager to address that demand with improved facilities and is testing drive-up windows at some locations, said Vicki Hormann, executive director of off-premise at the chain. The problem? It’s not exactly easy to do at many Applebee’s locations. “We’re a 40-year-old brand,” she said. “Some of our locations are 40, 20 years old. They would require a recon- figuration of traffic flow and the ability to drive up.” That’s a classic problem for a lot of restaurant chains working to ad- dress consumers’ growing need for off-premises sales. Many of their facil - ities were not exactly built with take- out in mind, requiring creative ideas to accomplish the task. In Applebee’s case, pickup lockers have been a savior, Hormann said. The chain uses the lockers for curbside and delivery orders. And they don’t re- quire a completely new configuration.

merous, varied and sophisticated to keep up with. Cyberattackers today run the gam- ut from state-backed organizations to college kids trying to score a free meal to so-called hacktivists looking to make a point. Many attacks are now perpetrated by AI bots, making them even more difficult to stop. The best thing a restaurant can do to protect itself is buy cybersecurity insurance, said Leon Davoyan, CTO of Dave’s Hot Chicken. “It’s like riding a motorcycle,” said Fat Brands CIO Michael Chachula. “It’s not a matter of if you’re gonna go down, it’s when you’re gonna go down. It’s not if someone’s gonna try to attack you, but when.” Delivery and takeout growing pains Third-party delivery has caused some real headaches for restaurant chains’ labor strategies. At Tropical Smoothie Café, Chief Marketing Officer Deborah

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National Restaurant Association Show 2024

PHOTO CREDIT: FREEPIK.COM

Introducing Coca-Cola Lens! A free insights platform designed to empower operators to make data-driven decisions.

Click here for free insights.

©2024 The Coca-Cola Company

TOPO CHICO SABORES WINS A 2024 FABI AWARD!

©2024 Topo Chico

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National Restaurant Association Show 2024

INDUSTRY INSIGHTS OPERATOR SPOTLIGHT

Chipotle Mexican Grill

Laurie Schalow of Chipotle Mex- ican Grill talked with Nation’s Restaurant News’ Alicia Kelso about how the brand’s employ- ee retention and benefits strate - gies helped drive down turnover to perhaps its lowest level ever.

https://youtu.be/RxPaSd1wbgk

James Walker, who holds execu- tive roles at Frisch’s and Experi- ential Brands, talks with Restau- rant Business’ Jonathan Maze about why restaurant brands of all types need to reinvent them- selves to stay competitive as con- sumers grow more discerning. Frisch’s & Experiential Brands

https://youtu.be/JUz1UQYr8w4

Nick Vojnovic of Little Greek talks with Nation’s Restaurant News’ Sam Oches about how restaurants keep ‘dodging bul- lets,’ and why he recommends restaurants keep prices steady despite rising costs. Little Greek

https://www.youtube.com/watch?v=HKbmolAIQg8

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National Restaurant Association Show 2024

James O’Reilly of Ascent Hos- pitality Management, parent to Perkins and Huddle House, talked with Nation’s Restaurant News’ Joanna Fantozzi about why family dining’s time is now. Ascent Hospitality Management

https://youtu.be/T8w1QlX_8VA

Restaurateur Michael Solomon- ov of Federal Donuts & Chick- en, among other brands, talks about what he sees for the fu- ture of third-party restaurant delivery and how the dough- nut concept is targeting growth through franchising. Federal Donuts & Chicken

https://youtu.be/wF2HYUg5FW4

Ingrid Martinez, VP of Marketing for Norms, talks about how the 75-year-old Southern California diner chain adapts it messaging to cultivate its strong Hispanic customer base. Norms

https://youtu.be/60T9I4DB9K0

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National Restaurant Association Show 2024

INDUSTRY INSIGHTS OPERATOR SPOTLIGHT

Brittany Maroney of Dividend Restaurant Group talks with Na- tion’s Restaurant News’ Leigh Anne Zinsmeister about how Dividend Restaurant Group — parent to Sul- livan’s and Eddie Merlot’s steak- houses — approaches its loyalty program and taps into the market- ing potential of micro-influencers. Dividend Restaurant Group Michelle Korsmo of the National Restaurant Association talks with Restaurant Business’ Jonathan Maze about how the group looks to lead restaurants through an ‘in- tense’ policy environment. National Restaurant Association

https://youtu.be/C-KnF7MzYCE

https://youtu.be/doOuIGupdWM

Matt King of Legal Sea Foods talks with Nation’s Restaurant News’ Leigh Anne Zinsmeister about what’s next for the Boston-based fish and seafood chain. Legal Sea Foods

https://youtu.be/HzXs8OPqcDA

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National Restaurant Association Show 2024

Unmatched Purchasing. Unlimited Performance.

https://www.youtube.com/watch?v=VSkHZdO3vGY

Connect with Entegra Here

How strategic menu development drives profitability at restaurants Chef Lynn Hay and John Csukor of Entegra talk with Nation’s Restaurant News during the 2024 National Restaurant Association Show about how the company helps foodservice operators blend culinary creativity, cost controls and labor efficiencies to maximize profitability.

Entegra is a business performance and procurement services company with bold initiatives, creative solutions and a driven advisory team ready to partner with hospitality-driven businesses to propel them forward and achieve more than ever. As the largest food group purchasing organization in the world, we deliver the industry-specific savings solutions, digital tools, advisory services and corporate social responsibility support to help clients improve customer experiences — and achieve their goals.

Chef John Csukor Entegra Head of Culinary, North America

Chef Lynn Hay Director of Culinary Operations, Entegra Performance Kitchen

entegraps.com

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National Restaurant Association Show 2024

INDUSTRY INSIGHTS OPERATOR SPOTLIGHT

Craveworthy Brands

Kim Decarolis of Cravewor- thy Brands talks with Nation’s Restaurant News’ Alicia Kelso about how the company helps its portfolio brands kickstart a new chapter of growth.

https://youtu.be/zj63_ceRmcQ

Nico Nieto of Naf Naf Grill talks with Nation’s Restaurant News’ Sam Oches about why even the best marketing cannot succeed if in-store operations are not working at an optimized level. Naf Naf Middle Eastern Grill

https://youtu.be/8ueqcuvwJSQ

Brian Wise of Freddy’s Frozen Custard & Steakburgers, talks with Nation’s Restaurant News’ Alicia Kelso about how the chain cut burger cook times by about 40% to boost throughput and improve employee experience. Freddy’s Frozen Custard & Steakburgers

https://youtu.be/GQkqXU39w3M

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National Restaurant Association Show 2024

Let’s Create Great Dishes Together.

https://www.youtube.com/watch?v=BrM-JihDepw

Connect with J.T.M. Here

J.T.M. Food Group is a forward-thinking food-processing company still rooted in the same principles of the original butcher shop. For four generations, the food professionals at J.T.M. have provided on-trend products and solutions, including sauces, soups, sides, dips, pastas, scrambles, and taco fillings, with the same commitment to integrity and quality we’ve had since the butcher shop days.

How to create menu items that win over guests without straining the back-of-the-house

Brad Nelson of J.T.M. Food Group talks with Nation’s Restau- rant News during the 2024 National Restaurant Association Show about how the company’s beer cheese, birria sauce, queso and more, give restaurants a springboard for develop- ing flavorful, slow-cooked menu items — without the hours of prep time.

Brad Nelson Executive Director Of Marketing

jtmfoodgroup.com bradnelson@jtmfoodgroup.com

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National Restaurant Association Show 2024

INDUSTRY INSIGHTS OPERATOR SPOTLIGHT

San Pedro Fish Market

Michael Ungaro of San Pedro Fish Market talks with Nation’s Restaurant News’ Sam Oches about how the nearly 70-year- old Los Angeles seafood brand leverages the power of storytell- ing through both social media and its docuseries “Kings of Fi$h.”

https://youtu.be/r9k6U-W2jRA

Sean Kennedy of the Nation- al Restaurant Association talks with Restaurant Business’ Peter Romeo about two big issues on the association’s radar: the im- pact of credit card swipe fees on margins, as well as evolving regulations targeting so-called “junk fees.” National Restaurant Association

https://youtu.be/1wCdvzXJ0Qs

Le Claquettes Chaussettes

On their first trip to the United States, husband-and-wife team Arthur Blanchi and Victoria Hen- no talk about culinary strategy for their award-winning food truck on the island of St. Martin.

https://youtu.be/t932L1VeRZM

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National Restaurant Association Show 2024

Drive Restaurant Growth with Location Intelligence

https://youtu.be/4yuJZqfZpp0

Connect with Placer.ai Here

A data-driven look at restaurant traffic trends

Placer.ai is the most advanced location analytics platform describing physical locations, the people and businesses that interact with them, and the markets they inhabit. Placer empowers restaurant professionals to inform real estate decision making like expansion and lease negotiations, analyze consumers to enhance marketing and merchandising, and understand market trends for benchmarking and operational improvements.

R.J. Hottovy of Placer.ai talks with Nation’s Restaurant News during the 2024 National Restaurant Association Show about what’s driving shifts in restaurant traffic. Hear how Placer.ai — “the foot traffic experts” — can help restaurants understand the consumer behaviors that will shape the future of their businesses.

R.J. Hottovy, CFA Head of Analytical Research Placer.ai

placer.ai/restaurants

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National Restaurant Association Show 2024

PODCAST SPOTLIGHT

Brought to you by:

EXTRA SERVING A podcast from Nation’s Restaurant News

A DEEPER DIVE A podcast from Restaurant Business

A data-driven look at the restaurant industry 26 MIN

Potbelly’s franchising push

7 MIN Lynette McKee of Potbelly talks with Sam Oches about the growth potential of the sandwich segment and why her team is bullish on expansion.

Victor Fernandez of GuestXM by Black Box Intelligence talks with Restaurant Business editor-in-chief Jonathan Maze about traffic trends, value, the trade down effect — and which brands stand to benefit in the current environment.

How to compete in an ever-changing market

The ROI of sustainability

24 MIN Juan Martinez of Profitality talks with Jonathan Maze about why key to succeeding in today’s foodservice industry — par- ticularly in a “value war” that is likely to last most of this year — is a mindset of continuous improvement.

13 MIN Alexandra Harden of Just Salad talks with Nation’s Restaurant News’ Sam Oches about how the brand leverages sustainabil- ity efforts to drive revenue and maximize profitability.

Finding relief from rising costs

How better tech integrations can boost profitability 18 MIN

27 MIN Scott Redler of Mokas Cafe, who is also immediate past chair of the National Restaurant Association and co-founder of Freddy’s Custard & Steakburgers, shared his perspective on the broad set of challenges facing restaurant operators as well as his outlook on the growth environment

Bryon Kunkel of Mad Mobile and Cristine Vickery of Avalara spoke with Nation’s Restaurant News’ Sam Oches to explain how effective tech integrations maximize a foodservice oper - ator’s return on investment.

Understanding the latest restaurant traffic trends 29 MIN

YouTube influencer on the importance of authenticity 26 MIN

R.J. Hottovy of Placer.ai talks with Restaurant Business ed- itor-in-chief Jonathan Maze about how consumer behaviors are shifting leading to the industry traffic challenges and a looming value war.

Sam Zien, better known to his 4 million YouTube subscribers as Sam the Cooking Guy, talks with Nation’s Restaurant News’ Sam Oches about his career path and what he learned at his first National Restaurant Association Show.

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National Restaurant Association Show 2024

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National Restaurant Association Show 2024

TECHNOLOGY

9 tech tidbits from the National Restaurant Show Technology reporter empties his notebook after a busy few days in Chicago, where restaurants showed they’re hungrier than ever for tech.

BY JOE GUSZKOWSKI SENIOR EDITOR RESTAURANT BUSINESS

T hree days spent on the floor of the National Restaurant Show in Chicago turned up quite a few tidbits on the cur- rent state of restaurant technology. Here are nine lessons from the big event. Tech is the hottest thing since free samples It’s not news, and it’s not even neces- sarily surprising, but it is worth taking a step back and marveling at just how central technology has become at the Show. At certain points, it was hard to even get through the aisles in the Tech Pa- vilion due to traffic overflow from the booths. (And wow were there some spectacular booth designs this year.) You’d think vendors were giving away hot dogs or something, but no— just software demos and the occasion- al piece of new hardware to admire. It was a testament to restaurants’ grow- ing appetite for tech.

The Tech Pavilion was a popular spot, as usual.

That’s how Square got pulled into the kiosk game. The POS company has long integrated with other kiosk pro- viders, but this year it launched one of its own. “Sellers on the Square platform were always asking, ‘When are you gonna build our own kiosk?’” said Ming-Tai Huh, Square’s head of food and beverage. “They don’t want one more integration to manage.” … But a patchwork approach has its perks Then again, some operators are of the mind that using a mix of vendors is better than going all-in with one. Grant Krueger, owner of Tucson, Arizona-based Union Hospitality Group, said diversifying gives restau- rants more flexibility if they ever de - cide to make a change. “It’s gonna be better to have a tech stack with different players rather than have all your eggs in one basket,”

Everyone wants to do it all …

The most noticeable trend while trawl- ing the tech booths was the number of suppliers claiming to be the one and only tech platform a restaurant needs. Vendors have been pushing in this direction for years, in part because restaurants are demanding more sim- plicity from their tech.

[Restaurant operators] don’t want one more integration to manage.” — Ming-Tai Huh, Square

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National Restaurant Association Show 2024

PHOTO CREDIT: JOE GUSZKOWSKI

Better Guest Experience

https://youtu.be/o-xoeufbggE

Connect with Essity Here

The Tork brand offers professional hygiene products and services to customers worldwide ranging from restaurants and healthcare facilities to offices, schools, and industries. Our products include dispensers, paper towels, toilet tissue, soap, napkins, wipers, but also software solutions for data-driven cleaning. Through expertise in hygiene, functional design and sustainability, Tork has become a market leader that supports customers to think ahead so they’re always ready for business. Tork is a global brand of Essity, and a committed partner to customers in over 110 countries.

Putting hygiene at the center of the restaurant guest experience Marissa Tekirian of Essity North America talks with Nation’s Restaurant News during the 2024 National Restaurant Association Show about why a focus on hygiene and cleanliness is critical for creating restaurant experiences that meet the needs of today’s customers.

Marissa Tekirian Regional Marketing Manager Foodservice

torkusa.com

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National Restaurant Association Show 2024

9 tech tidbits from the National Restaurant Show

TECHNOLOGY

found him taking a picture in front of their booth). He said Otter is the only system he saw at the Show that came

close to what Toast offers. What can’t AI do?

Need something done in your restau- rant? If AI can’t do it today, it will prob- ably be able to soon. At the Show, there was a camera that monitors burger quality, software that automates invoicing, and a sys- tem that spits out ways to add avoca- do to your menu, to name just a few of the applications on display. And while AI has officially achieved buzzword status, there seemed to be a lot of genuine enthusiasm for it among attendees. “We get really excited by the right use cases,” said Patric Knapp, VP of operations at Bobby’s Burgers by Bob- by Flay. “AI can really take data today, capitalize on that information and present it in a way that is useful to us.” Tech support goes AWOL Several operators lamented the sorry state of customer service that’s being provided by some vendors these days.

This was a common refrain on the Show floor.

he said, noting that a POS overhaul can be a painful process. Small firms look for an exit The shift toward more all-in-one plat- forms has had an impact on smaller, more specialized vendors, some of which are hoping to get swallowed up by a bigger fish. “We’d love to get ac - quired,” said a rep from one small firm that asked not to be named. There are certainly buyers out there. Back-office tech supplier Restaurant365, fresh off its acquisition of training specialist ExpandShare, just raised $175 million and plans to use some of it on more acquisitions, for example. A tech community is forming There’s a real movement underway among vendors and restaurants to create more community within the fragmented tech world. That was visible at the Show via the proliferation of podcasts being re- corded on the floor. Shawn Walchef, a restaurateur and podcast veteran, said the format is a great way for op- erators to learn from one another. “Because we’ve started podcasting, we’ve connected with people all over the globe,” he said. Some suppliers are looking to fos- ter similar connections for their cus- tomers. SpotOn, for instance, has be- gun hosting monthly online meetups where restaurants can talk shop. And Toast was passing out literature invit- ing operators to join its free online fo- rum, Toast Community. “Connect with

your industry peers whenever it’s con- venient for you,” the handout says. Keep an eye on Otter The digital ordering company run by CloudKitchens CEO Travis Kalanick quietly launched a POS system this year, and operators are taking notice. Rafael Alves, CEO of New Jer- sey-based Snack Mania, is a longtime Toast customer and superfan (we

There’s a movement underway among vendors and restaurants to create more community within the fragmented tech world.”

Shawn Walchef, right, hosts a podcast at the Show.

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National Restaurant Association Show 2024

PHOTO CREDIT: JOE GUSZKOWSKI

Good Memories in the Making TM

https://www.youtube.com/watch?v=kEacZv7FnHI

Connect with The J.M. Smucker Company Here

Menu development strategies for a tight labor environment

Smucker Away from Home is a division of The J.M. Smucker Company and specializes in meeting the needs of foodservice professionals across all segments. A wide range of products are offered through its family of iconic brands, including Smucker’s®, Uncrustables®, Jif®, Folgers®, Hostess® and Cafe Bustelo® to name a few. The comprehensive portfolio of leading brands is designed to meet the needs of all foodservice segments, considering every application, from breakfast condiments to back-of-house ingredient solutions, to snacks and branded coffee. The consistent thread is a dedication to offering trusted brands to elevate the dining experience for your guests while addressing operational needs.

Three leaders from the J.M. Smucker Co. talk with Nation’s Restaurant News during the 2024 Nation’s Restaurant As- sociation Show about how the company’s suite of beloved brands — Jif, Smucker’s, Uncrustables, and more — can help restaurants deliver craveable items while limiting complexity in the kitchen.

Chef Ken Edwards The J.M. Smucker Company

smuckerawayfromhome.com

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National Restaurant Association Show 2024

9 Tech tidbits from the National Restaurant Show

TECHNOLOGY

“ The future of restaurants is data-heavy.” — Bryan Solar, SpotOn

One noted that a lot of what used to be known as customer service is now self-service. Another complained that it’s hard to get an actual human on the phone when there’s a problem

Knapp spoke to a lot of providers while building Bobby’s tech stack. He valued the ones that made him feel like a partner rather than a potential sale.

“We were not looking for a POS system, but a POS partner who says, ‘Here’s how we can support you,’” Knapp said. Restaurants are a data business Believe it or not, there are still opera- tions out there that have little insight into how sales are performing or what items are selling best. That’s a big lim- itation at a time when costs are chang- ing rapidly and every penny counts. “The future of restaurants is da- ta-heavy,” said Bryan Solar, chief prod- uct officer at POS provider SpotOn. “It’s one of those things where it’s like, evolve or die.” SpotOn has invested a lot in its data capabilities, developing dash- boards that reflect a restaurant’s per - formance in real time, down to which servers are selling which items. That level of visibility is vital for im- proving operations, Solar said: “You can coach to stuff if you can see it.”

Avocados from Mexico was showing off an AI tool that generates avocado-based menu items.

Tech Trends from the Show Join Nation’s Restaurant News’ Joanna Fantozzi and NRN con- tributor Diana Blass as they walk the Show to see what’s new in restaurant tech. Here are four innovations that caught their eye.

https://www.youtube.com/watch?v=XS5gbKhGt9M

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National Restaurant Association Show 2024

PHOTO CREDIT: JOE GUSZKOWSKI

Distinctively delicious baked goods are our bread & butter.

https://www.youtube.com/watch?v=wVfWMmCIy88

Connect with Bimbo Bakehouse Here

Menu development strategies for restaurants

At Bimbo Bakehouse, we offer an extensive selection of delicious baked goods in a dizzying array of flavors, formats and beloved brand names. But there’s more to us than that. We also go above and beyond to help you grow your business. See how our efficiencies of scale, creative solutions and deep culinary insight can deliver what your business needs to succeed. Learn more at: https://bimbobakehouse.com/en-us.

Jennifer Cottrell of Bimbo Bakeries USA talks with Nation’s Restaurant News during the 2024 National Restaurant Association Show about how the company’s portfolio of bread brands — including Thomas’, St. Pierre and Entenmann’s — help restaurants easily create on-trend entrées, snacks and LTOs.

Jennifer Cottrell Foodservice Marketing Lead Bimbo Bakehouse

bimbobakehouse.com/en-us

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National Restaurant Association Show 2024

TECHNOLOGY

How data has become the universal currency of restaurant tech

While robots, POS systems, and kitchen gadgets were on display at the Restaurant Show, data was the behind the scenes driving force at almost every tech booth. T he most popular technol- ogy tool on display at the 2024 National Restaurant Association Show in Chi- Benchmarking tool that allows restaurants to compare their restaurant and menu performance against similar restaurants in their region (though all of the data is anonymized). In this case, the ag- gregate Toast operator customer data is used to provide insights to restaurants on what they should put on their menus next, and how they can update their pricing to keep up with operational trends “We wanted to create something that enables each of our merchants to see what’s happening outside of their four walls,” Susie Riley, prod- uct designer and vice president of new ventures with Toast, said. “So, if your sales were down last week, you’re probably wondering, ‘is it BY JOANNA FANTOZZI SENIOR EDITOR NATION’S RESTAURANT NEWS and their competitors. The tech- nology uses both AI and machine learning to aggregate and analyze menu data.

cago was mostly invisible. What do the robotic arms, POS systems, back of house analytics tools, and more booth gadgets have in com- mon? Most of them are powered by and supported by data. Data — whether it’s collected by machine learning or AI — has proven to be the universal currency of restau- rant technology in 2024 and be- yond. Operators are waking up to the significance of data collection and optimization in operational decision-making, from employee scheduling and inventory man- agement, to marketing data about customers. This was especially evident at the Restaurant Show, where almost every booth at the tech pavilion went into detail about the data their software (and some- times hardware) provides. Toast was showcasing its new

Data was the star of the National Restaurant Association Show.

CONTINUE READING ON PG 28

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National Restaurant Association Show 2024

PHOTO CREDIT: GETTY IMAGES

Inspiringly Different.

https://www.youtube.com/watch?v=i2Ja07b53s8

Connect with Rational Here

How equipment can help with restaurant labor challenges

RATIONAL is the world market and technology leader in the field of hot food preparation for professional kitchens. Founded in 1973, the company employs more than 2,500 people globally. For over 50 years, RATIONAL has focused on providing unparalleled cooking solutions, delivering outstanding and consistent food quality, automated work processes, and high potential savings by optimizing space, labor, energy, and yield. Learn more at rationalusa.com.

Simon Lohse and Lee Baker of Rational talk with Nation’s Restaurant News during the 2024 National Restaurant Associ- ation Show about how the right pieces of kitchen equipment can support labor efficiencies and build a foundation for culi- nary innovation.

Simon Lohse Executive Vice President RATIONAL North America

Lee Baker Vice President of Product Management RATIONAL USA

rational-online.com/en_us/

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National Restaurant Association Show 2024

TECHNOLOGY

How data has become the universal currency of restaurant tech

just me, or was this happening to other restaurants in my neighbor- hood?’” As more and more tech vendors begin to utilize data reports in new and insightful ways, it’s crucial for designers to create accessible UX interfaces that can be easily acces- sible by a busy store manager on the go. User interface design was men- tioned by multiple tech vendors on the Restaurant Show floor, in - cluding both Toast and Middle- by-owned AI company Powerhouse Dynamics. Although Powerhouse Dynamics’ Internet of Things prod- uct is not new, the “plug and play” interconnected network of all Mid- dleby (and associates’) equipment was showcased for the first time this year. The Powerhouse Dynam- ics’ IoT capabilities include sending operational, maintenance, and en- ergy usage data to operators. Us- ers can also set rules for the sys- tem, which can help to eliminate the noise of too much unnecessary data, so for example setting a rule

to immediately notify a franchisee or manager if the freezer breaks in the middle of the night, even if they don’t necessarily need to know ev- ery piece of data the system could provide. “Let’s say I don’t want to pay attention to the 95% — I already know when it’s all going right — I just want to know that 5%, and then I want to get that to my field later so they can close that gap,” Alex Lundy, vice president of prod- uct at Middleby said. “So that’s where a lot of the power comes from and where the data can be- come actually useful.” It was surprising to see how many data-supported hardware and equipment were on the Restau- rant Show floor, including robotics. While robot arms that specialize in dipping fry baskets and sprin- kling cheese on pizzas have been around for several years, technolo- gy startup Robochef takes this au- tomation technology to a new level with the addition of data insights, alongside customizable back of

house robotics solutions. “We are able to collect data in our cyber physical ecosystems via an ecosystem of sensors and mo- tors, and that behavior is all col- lected in the cloud,” Aravind Durai, founder of Robochef, said. “This allows us to have a digital footprint of everything that ever happened in that machine in the field…allow - ing us to gain useful insights that typically would not have even been possible using human resources.” For example, Caesar’s Palace in Las Vegas has a Robochef-run cookie shot vending machine from acclaimed pastry chef Dominque Ansel that is able to run automat- ically long after the bakery closes, but the casino floor is still open. “Based on the analysis of that sales data, the next day morning at 4:00 when the bakery staff comes to replenish the stock, you’re able to tell them with 99% confidence that they should stock the machine up with X amount of cookies and know you’re not going to run out,” Durai said.

2024 RESTAURANT TECHNOLOGY OUTLOOK

What’s next for restaurant tech? Nation’s Restaurant News and Restaurant Busi- ness surveyed nearly 600 restaurant operators to find out. Explore the full results in our second annu- al Restaurant Technology Outlook. Click here to access your free copy.

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National Restaurant Association Show 2024

Authentic Mexican.

https://youtu.be/EXMBMJFTUCU

Connect with V&V Supremo Foods Here

Why authenticity is key to resonating with today’s restaurant consumer Gilberto Villaseñor of V&V Supremo talks with Nation’s Restaurant News during the 2024 National Restaurant As- sociation Show about how the 60-year-old, family-owned cheese company helps restaurants tap into the rapid growth of Mexican cuisine and provides a platform for cu- linary innovation.

V&V SUPREMO FOODS, INC. is the premier, award- winning producer of authentic Mexican cheese, crema, chorizo, and maker of Chihuahua® Brand Quesadilla Cheese in the United States. Founded in 1964 by the Villaseñor family, it remains the oldest family-owned Hispanic cheese company in America. Our products are well-recognized within the dairy industry and have won numerous gold awards from prestigious competitions across the country and overseas. We are dedicated to delivering exceptional flavor, texture, and quality, embodying our heritage and passion. V&V Supremo®, an authentic taste crafted over generations, celebrates heritage, quality, and love in every product.

Gilberto Villaseñor Chief Visionary Officer V&V Supremo Foods, Inc.

Mario Cota Executive Chef V&V Supremo Foods, Inc.

vvsupremo.com/fs

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National Restaurant Association Show 2024

TECHNOLOGY

4 challenges to address as AI takes over the restaurant industry At an education session at the National Restaurant Association Show, panelists discussed the challenges behind the AI and robotics revolution. A lthough it seems like AI and robotics have penetrated many aspects of restau- rant operations, the truth BY JOANNA FANTOZZI SENIOR EDITOR NATION’S RESTAURANT NEWS 3.

“The team member now is actually more productive because they’re lis- tening, but doing another task, and if the computer cannot analyze or un- derstand what the human is asking for, generally the team member does,” Schalow said. Data readiness In order to be able to invest in AI and robotics, one major component that many operators have not invested enough in, is understanding how to mine, collect, and analyze data from various elements of their tech stack. Tech literacy is a huge hurdle for many operators to clear before they can truly take advantage of the innovative solu- tions out there. “You have to have your data in order — doing a data readiness exercise, for example,” Hicks said. “If you don’t have your data warehouse in order, then you’re not going to be able to action it, whether it’s marketing or anything else.” Cost Right now, a lot of the most exciting AI capabilities — from generative AI-run back-of-house operations to robot fry cooks — are at a pricepoint that’s out of reach for many operators. The pan- elists seemed to think that even though it seems like “pay to play” right now, the cost will eventually come down. “The challenge, historically, has been, ‘how do we get the cost down and make that digestible?’ and I think that we’re there in a couple of years,” Hicks said, adding that he suggests that operators start small with AI and invest in automated marketing programs, for example, instead of jumping straight to robot line cooks. 4.

too? If you have kiosks, QR codes and AI answering the phones, do you need as much labor in the front- or back-of- house? “When we first turned on AI order - ing, we had guests asking if we had eliminated a position in the restau- rant and employees nervous about job elimination, but we said that this will be more of a job enhancer,” Schalow said. “The reality is, everyone still has a role, but we are going to be executing more efficiently because we have to find effi - ciencies within our P&L. So, there’s still a role for you, but that role might look different.” However, it’s a complex issue, and not everyone agrees. Panelist Ryan Hicks, CEO of Franchise Supplier Net- work, said that unfortunately the ad- vent of AI and automation does mean that some positions will be eliminated. “I would say the goal is actually to eliminate some jobs if you’re talking about [offsetting] labor costs,” Hicks said. “This has been the story with new technology time and time again…but there’s also new job creation along with the technology… the same type of scary technology that that can displace peo- ple in the workforce can also help you recruit other people in the workforce.” The computer is not perfect Ironically, even though a major purpose of AI is to take on menial or time-con- suming tasks, it actually takes human labor to teach it to do so. Bob Schalow said that at his restaurants where he added voice AI in the drive-thru lane, you might be greeted by a computer, but the human being is listening in to take over if the conversation strays too far from the capabilities and scripting of the artificial intelligence. After all, AI has its limitations, especially in this stage of the technology development. 2.

is that the hospitality industry is still in the early stages of implementation. In fact, according to recent data from the Nation’s Restaurant News Intelligence Tech Market Leader Report, 63% of op- erators do not currently use AI. At the National Restaurant Asso- ciation Show in Chicago, experts and operators explored the questions and challenges around AI and robotics for the average hospitality operator during the “Revolutionizing Hospitality: The Journey of AI and Robotics in Enhanc- ing Guest Experiences” education ses- sion The most simple issue? Internet connectivity. “I can tell you what keeps me up at night — losing the Internet,” Bob Scha- low, senior vice president of Diversified Restaurant Group said during the pan- el discussion. “You when I’ve lost the Internet, I’ve lost the capability to run my restaurant. Back in the day we just had cash registers, but the reality is that when I’ve lost the internet, I’ve lost my restaurant. So we’re now drastically trying to get that up and going.” Besides losing Internet connectivi- ty, here are some of the current road- blocks and limitations that were dis- cussed. Employee Displacement Fears With discussions around AI and auto- mation, eventually the topic of employ- ee replacement will come up: If you have voice AI in the drive-thru lane, do you need headset-wearing employees 1.

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