Kitchentelligence Magazine State of Industry Feb 2025
The State of the Industry
THE BIG LABOR SOLVE
THE VALUE OF PREMIUM
TURNING GRIPES INTO GOLD
CUSTOMIZATION WITHOUT THE CHAOS
HOW TO IMPROVE PROFIT MARGINS
5
THE BIG LABOR SOLVE
Explore proven tactics for navigating what’s next in staffing. 10
THE VALUE OF PREMIUM
Use specialty ingredients to balance cost with value.
14
TURNING GRIPES INTO GOLD
Address common pain points to win guest loyalty.
16
CUSTOMIZATION WITHOUT THE CHAOS
Meet the demand for personalized experiences –efficiently.
EMBRACING TECHNOLOGY TRANSFORMATIONS
Streamline and automate tedious tasks to improve operations.
22
TOP THREE AI TOOLS AT YOUR SERVICE
Try new technologies that actually enhance the guest experience.
24
HOW TO IMPROVE PROFIT MARGINS
Your menu is your money-maker –use this free tool to enhance it.
GOLD
CANYON PREMIUM ANGUS ® CHUCK BURGERS
It all starts with USDA upper 2/3 Choice ground angus chuck selected from a superior supply of Angus cattle that meet our ten quality specifications to deliver perfectly juicy and flavorful burgers. We make them available in the traditional style, or gently roll them to size so they arrive with a homestyle, hand-made appearance and tender bite that customers crave. You can top them with your signature style, but always start with USDA G-114 Gold Canyon Premium Angus beef.
Contact your Shamrock Foods Sales Representative for more information.
®
PROVEN TACTICS FOR NAVIGATING WHAT’S NEXT IN
LABOR CHALLENGES
Controlling what you can control to bridge the labor gap and win.
RETAINING A WINNING CREW:
It’s as mission critical as ever, but as labor shortages persist, so do the challenges.
Here are some expert strategies for creating an attractive workplace and a rock-solid operation that makes the most of every dollar and every day.
“Have a vision, share the vision, and lead by example to fulfill the vision.”
Higher wages – even if only marginally so – plus good quality benefits are a powerful differentiator. Take direction from the team via one-on-one discussions or surveys to reveal which benefits will make the most impact and best demonstrate your commitment to their health, wealth and job satisfaction. Think modest but meaningful performance bonuses, free parking and meals, and tailored perks and benefits that make good use of finite resources.
BEYOND FLEXIBILITY, GIVE THEM AUTONOMY
Scheduling apps like 7shifts, HotSchedules and When I Work let staff choose their shifts, simplify shift trades and ensure coverage. Empowering employees with more control over their schedules has been
proven to boost retention and attendance while reducing burnout. Consider rotating weekends or three consecutive days off to create the work-life balance your team will truly value.
OFFER CAREERS, NOT JUST JOBS
Incorporate simple yet structured career pathing and pay close attention to high-potential MVPs you most want to retain. “It’s about building lasting relationships with employees and turning them into long-term partners in your business,” says Mary McVoy, Shamrock Foods Restaurant Consultant, California. “The key is to include an educational aspect in every role, from the dishwashers to the managers. Everyone in the business should feel they have the opportunity to grow.”
CULTURE CLUB
Shaping an environment where employees feel safe, seen, valued and empowered starts and ends with leadership.
Regular one-on-ones, engaging team meetings, and open communication foster trust and give employees a voice and a stake in the business. Manageable workloads and the right tools also fend off burnout and keep the collective happy and hungry for success.
DO LESS, BETTER
Pare down to core menu items that cross-utilize high-quality ingredients to reduce complexity without compromising on craveability. Seasonal and limited-time offers keep guests engaged with fresh choices, while a well-engineered core menu stays easy to execute. Tools like Menu Wizard provide data-driven analysis to identify the most profitable items versus
those that are less popular or resource-intensive.
LEVERAGE AI WHILE STAYING HUMAN
AI has a place in providing data insights, but not replacing human roles. Platforms like Dryver and Popmenu capture visit frequency, purchase history and other guest details to personalize marketing and sweeten their experience. Similarly, TouchBistro or SpotOn integrates data analytics for targeted scheduling and promotion to meet the moment and build loyalty.
OUTSOURCE AND UPGRADE
Using a third party for non-core functions like deep cleaning, food delivery and administrative functions can save time and resources for fundamentals like guest service, menu innovation and overall efficiency.
Outsourcing accounts payable in particular can yield significant time savings and efficiency, while
solutions like MarginEdge can intuitively reduce admin hours and free managers to do what they do best.
CUT THE PREP
The quality of products that reduce risky chopping and help staff work more efficiently have advanced to the level of matching or surpassing what you could do in-house.
Chef favorites include pre-portioned proteins from Gold Canyon Meat CO.® and Pier 22 Seafood CO.®, plus Markon Ready-Set-Serve® produce: washed, chopped and ready to go. Though often overlooked, using Jensen Foods XTREME® oil for extended fry life and ProClean® cleaning products saves maintenance time and allows staff to focus on quality service.
The best meals start with authentic ingredients and end with lively conversation. That’s the very spirit of sobremesa – the cherished tradition of lingering at the table for conversation with friends and family. It’s also the inspiration for Sobremesa by Shamrock Foods – your trusted partner who can deliver everything you need to create real Mexican dishes.
Our Hispanic specialists have sourced authentic Mexican and Latin American ingredients and products you can trust – and your customers will love. From beans and rice to tortillas and chips, salsas and spices to fresh produce, eats and seafood, and more. So every dish you create will have that real hecho a mano – or made by hand – flavor.
Contact your Shamrock Foods Sales Representative for more information.
CARNE ASADA FRIES
These Carne Asada Fries are the perfect way to cross-utilize staples you likely already have in your kitchen for a high-margin appetizer, hearty entrée, or late-night special.
INGREDIENTS
Carne Marinade
• 1.5 lbs Gold Canyon Premium Carne Asada
• 1/4 cup Markon Ready-Set-Serve lime juice
• 1/4 cup Markon Ready-Set-Serve orange juice
• 2 tbsp soy sauce
• 1 tbsp Trifoglio Superiore olive oil
• 2 cloves Markon Ready-Set-Serve garlic, minced
• 1 tsp Katy’s Kitchen chili powder
Fries
• 1 cup Markon Ready-Set-Serve guacamole
• 2 tbsp Markon Ready-Set-Serve green onion, sliced
• 1/2 cup Shamrock Farms Crema Mexicana
DIRECTIONS
1. Marinade the Carne Asada
a. In a large bowl, combine lime juice, orange juice, soy sauce, olive oil, garlic, chili powder, cumin, oregano, sea salt, black pepper, paprika and chipotle chili powder.
b. Add the Gold Canyon Premium Carne Asada to the marinade and stir to coat evenly. Cover and refrigerate for up to 2 hours.
2. Prepare the Fries
a. Heat the Xtreme Canola Fry Oil to 350°F in a deep fryer or large skillet.
b. Fry the Bountiful Harvest fries until golden brown and crispy, about 3–5 minutes.
• 1 tsp Katy’s Kitchen ground cumin
• 1/2 tsp Katy’s Kitchen oregano
• 1/4 tsp Katy’s Kitchen sea salt
• 1/4 tsp Katy’s Kitchen black pepper
• 1/4 tsp Katy’s Kitchen paprika
• 1/4 tsp chipotle chili powder
• 1/2 cup El Mexicano Cotija Polvo, crumbled
• 1 lb Bountiful Harvest fries
• Xtreme Canola Fry Oil
c. Drain the fries on paper towels and season lightly with salt.
3. Grill the Carne Asada
a. Grill the Gold Canyon Premium Carne Asada to your desired doneness medium-rare to medium recommended.
b. Let the meat rest for 5 minutes before slicing it into thin strips or bite-sized pieces.
4. Assemble the Fries
a. Arrange the fries on a large serving platter or individual plates.
b. Top with the sliced carne asada.
5. Add Toppings
a. Drizzle Shamrock Farms Crema Mexicana over the fries and carne asada.
b. Sprinkle El Mexicano Cotija Polvo generously on top.
c. Add dollops of Markon ReadySet-Serve guacamole for creaminess and flavor.
d. Garnish with sliced Markon Ready-Set-Serve green onions for a fresh finish.
6. Serve and Enjoy Serve immediately while hot. Perfect as a main dish or shared appetizer!
®
The Specialty Solve for
CO$T VS VALUE
How premium ingredients and strategic menu engineering can balance cost with value.
As costs continue to rise across the industry, operators are challenged to maintain profitability without turning guests off with noticeable price hikes. This is where specialty items shine. By offering thoughtfully curated premium items that enhance perceived value, restaurants can help guests truly get more from the experience. We’re talking more delight, more comfort, and an expanded palette for their dollar.
INVEST IN THE DETAILS
Today’s diners expect that a higher price point means an elevated experience–not only in the ingredients used, but also in the overall dining atmosphere. Everything from the cleanliness of the restaurant to attentive service and ambiance plays a role in justifying higher menu prices.
ADD LITTLE LUXURIES
Subtly elevate perceived value by incorporating carefully chosen and conservatively applied premium ingredients. “An old fashioned with a couple of Luxardo cherries instead of dyed maraschinos is worth an extra dollar,” says Tim Maness, Shamrock Foods Restaurant Consultant, Colorado.
“Consumers already expect premium ingredients relative to high
prices,
so the justification now comes
from
the
perception of the whole experience: Are the parking lots and restrooms clean? Did the host make eye contact? Was my table ready when I arrived? Was I thanked when I left?”
– Tim Maness, Shamrock Foods Restaurant Consultant, Colorado
ANCHOR THE PRICE RANGE
High-end specialty items can be used to contextualize the pricing and build menu-wide margins.
“Positioning high-end items as premium offerings sets a pricing ‘anchor’ that makes other menu items seem more affordable by comparison,” says Joy Miller, Shamrock Foods Restaurant Consultant, Arizona.
BUILD BRAND RESONANCE
“Share a good origin story, which usually leads to where the owner’s love of food and hospitality comes from,” says Leif Mann, Shamrock Foods Business Resource Manager. Use enticing buzzwords like
“handcrafted,” “locally sourced” and “small batch” to signal quality and attention to detail. That said, be sure to balance this approach with brevity. “There is a growing sense of menu fatigue, and most guests don’t want a novel about where the chicken was grown and fed,” says Maness.
KNOW WHEN TO CHARM
Charm pricing like $19.99 instead of $20 is a classic move for making prices feel accessible. Use the opposite approach to drive up the value of specialty menus. “Setting specialty items at a round number can imply quality – no $ signs,” says Miller.
“Crafting a compelling narrative is essential for operators to connect with guests and enhance their experience. Tell the story behind the concept and the ingredients, and educate your staff to do the same.”
– Joy Miller, Shamrock Foods Restaurant Consultant
MAKING.
With Minor’s, you’ll always have a chef in your corner to help you deliver the quality and consistency you demand—and the creativity you crave. From classically-prepared Bases and Stocks to globally-inspired Flavor Concentrates, we’re here with the products, solutions and inspiration you need to bring your most delicious vision to life. Explore our full line of products at minorsfoodservice.com
TURNING GRIPES INTO GOLD
Address these common pain points and win guest loyalty every time.
“Reduced menu with a trained staff = speed of service!.”
Invest in consistent, thorough training to ensure service excellence and create feedback loops with guest surveys and staff reviews to uncover and address service gaps.
LONG WAIT TIMES:
Leverage smart staffing to schedule peak-time coverage to reduce wait times and table management systems to optimize seating and reservations to improve flow.
HIGH PRICES AND PERCEIVED VALUE:
Craft value messaging to highlight quality ingredients and culinary techniques to justify prices, and offer value options and deals like budget-friendly options or combos to appeal to all diners.
LIMITED DIETARY OPTIONS:
Stay on top of menu updates and add diverse choices – vegetarian, vegan, gluten-free – and regularly refresh those options while creating customizations that allow substitutions to meet individual needs.
TECH-RELATED ISSUES:
Set a regular system maintenance schedule, provide staff with thorough training, and ensure a quick path to tech support where applicable to resolve issues while minimizing disruption.
CLEANLINESS + ATMOSPHERE:
Enforce strict cleaning protocols and schedules for consistent, visible cleanliness and run “ambiance checks” to adjust lighting, music and decor for a welcoming feel.
“Consumers expect value in every part of the experience – from service to ambiance. It’s not just about the menu.”
– Tim Maness, Shamrock Foods Restaurant Consultant, Colorado
CUSTOMIZATION WITHOUT THE CHAOS
Driving consumer satisfaction and profitability by balancing tailored experiences with efficiency.
Meet the demand for personalized service without sacrificing operational effectiveness. Here, our experts weigh in on integrating unique offerings and interactive experiences efficiently to give guest satisfaction a boost without overcomplicating things.
CHOICE-CENTRIC MENUS
A modular menu design is a great starting point. By structuring the menu to allow guests to mix and match components like proteins, bases and sauces, restaurants can deliver variety without overwhelming the kitchen. Clearly labeled customization options like checkboxes or icons can streamline the ordering process, ensure clarity and accuracy, and get guests to the good part faster.
TECH-ENABLED ORDERING
Interactive ordering technology adds a layer of engagement and novelty that many diners enjoy and appreciate. Digital tableside ordering allows them to place and customize their orders directly at their tables, complete with photos, ingredient options, and even real-time kitchen updates. This can level up the fun factor while ensuring efficiency.
Technology platforms like inKind let guests digitize their customizations while supporting loyalty programs that reward them for trying new combinations. Photos and interactive digital menus let guests visualize their ideal meal and get exactly what they want how they want it.
“Create one item you’re okay giving away that is both unique to your restaurant and delicious. It doesn’t need to cost much, but it creates loyalty and repeat customers, which is worth so much more than what it costs you.”
– Leif Mann, Shamrock Foods Business Resource Manager
UNLOCK SECRET MENUS
Creating a sense of exclusivity with secret or mystery menu items can be an exciting way to engage guests. Limited-time secret items or special dishes available only through word-ofmouth or social media teasers can generate buzz and encourage visits. Social media is an effective tool for hinting at these exclusive options, sparking curiosity and drawing in those who want to discover something unique.
“INSIDER” OFFERS
Insider loyalty programs can further enhance the experience by offering members exclusive access to secret menu items or special deals. For an added element of surprise, mystery box promotions featuring a selection of limited-time or seasonal items can appeal to those who love to try something new and unexpected.
FOR THE GAMERS AND THE MAKERS
Gamified elements like earning points or rewards for trying new items or completing challenges builds engagement and encourages guests to explore the whole menu and find their new favorites.
Offering cooking classes or chef demonstrations is another immersive concept to explore. These formats foster a deeper guest connection to the brand and the menu by creating a unique and memorable experience they quite literally had a hand in creating.
DOUBLE DOWN ON GENUINE HOSPITALITY
Despite advances in technology, genuine human connection remains at the heart of a memorable dining experience.
“Table touches still go a long way when struggling during a high-volume shift. And video training for customer-facing employees to address communication, eye contact and problem solving is also very effective.”
– Jim Hargrove, Shamrock Foods Enterprise Restaurant Business Consultant
Simple acts like a thank-you note go a long way toward making customers feel appreciated. Restaurants can create personalized moments by offering a complimentary item like a signature biscuit or house-made treat. Small gestures that communicate care and hospitality can be an easy-to-achieve differentiator in what feels like an increasingly transactional world.
EMBRACING TECHNOLOGY:
TRANSFORMATIONS IN THE RESTAURANT INDUSTRY
New technologies are reshaping how restaurants succeed.
At first glance, the state of today’s restaurant industry doesn’t appear too different from 2019. Sure, much of how the restaurants operate is the same – guests order food, and we serve it. But under the surface, an already challenging enterprise has become even more so. While big issues like labor, supply chain, work from home and lockdowns have cooled or stopped altogether, these experiences left a lasting impact on how we do business even as restaurants rebound.
With digital solutions like MarginEdge, restaurants can monitor inventory levels, track expenses and streamline purchasing.
A CLOSER LOOK UNDER THE HOOD
Much like diamonds (or a trusty pressure cooker in our case), overcoming obstacles and pressure can bring something beautiful from these hard-earned experiences, and one of the most significant transformations we’ve experienced has largely been thanks to technology. These changes have redefined how businesses operate, interact with customers and manage their resources. From streamlined operations to enhanced customer experiences, technology is at the forefront of driving the industry forward.
ENHANCED CUSTOMER JOURNEY
Restaurant technology has transformed nearly every step of a guest’s journey, starting with the adoption of digital ordering and delivery platforms. As consumers seek convenience and efficiency, restaurants have leveraged mobile apps and third-party delivery services to meet these demands. By integrating digital solutions, operators can reach a wider audience, offering their menu at the click of a button. Not only do these platforms boost sales, but they also provide valuable data insights into customer preferences and behaviors, enabling more personalized marketing strategies.
SMARTER POINT-OF-SALE SYSTEMS
Another significant trend is advanced point-of-sale (POS) systems. Modern POS systems are more than just cash registers; they serve as comprehensive management tools that track sales and analyze performance in real-time. This technology allows restaurant owners to make informed decisions, increase revenue and improve overall efficiency. The integration of contactless payment solutions has further enhanced the transaction process, meeting the growing consumer preference for quick and hygienic payment methods.
AI AS SERVICE
While still in the early days of artificial intelligence (AI) becoming more accessible for restaurant operators, customer engagement has already started to transform through the use of AI-driven chatbots and virtual assistants for seamless interactions, addressing customer questions and reservations efficiently. (Read more about the latest AI tools on pg. 24.)
EMBRACE WHAT’S NEXT
As technology continues evolving, it provides opportunities to enhance the dining experience, streamline operations and foster sustainable practices. Restaurants that embrace these changes are not only adapting to current trends but are also setting the stage for a prosperous future in a dynamic and competitive market.
REAL-TIME MONITORING …
In the back of house, technology has revolutionized managing the cost of goods sold (COGS), through inventory, recipe management and comprehensive expense reporting. With digital solutions, restaurants can monitor inventory levels, track expenses and streamline purchasing. Solutions like MarginEdge have profoundly transformed restaurant operations by enhancing efficiency and effectiveness. Traditionally, restaurant operators faced the tedious task of manually entering and interpreting COGS data, which was both timeconsuming and prone to error.
… FOR INSTANT INSIGHTS
Now these processes are streamlined, significantly cutting back on labor hours required to manage financial data. Its real-time insights allow operators to instantly access up-to-date information on sales, inventory and expenses, enabling them to make informed, data-backed decisions that can maximize profitability. This proactive approach fosters more strategic financial planning and agile responses to operational challenges, ultimately leading to more successful and responsive businesses.
AI TOP THREE TOOLS AT YOUR SERVICE
Here are three AI tools that can actually improve the customer experience.
THE HEART OF AI
AI is already reshaping the restaurant industry with revenue-boosting tools like AI voice answering. While there are some concerns that AI could compromise the ‘human element’ of the customer experience, a closer look shows the opposite could be true. Its capability to eliminate tedious, repetitive tasks could allow restaurant staff to put more energy into delivering exceptional service.
So, what AI-powered solutions can you expect to see at your restaurant? Here are three new technologies you won’t want to miss.
Like any new tech, AI may start slowly, but one thing is certain: Restaurants won’t want to miss it.
1. VOICE ANSWERING
Restaurants are often too busy to answer the phone during peak hours. AI answering eliminates this issue by answering every call, which helps retain valuable customers who would’ve otherwise been turned off. It also boosts business by allowing restaurants to field off-hours calls. On top of that, managers won’t need to worry about training AI on the intricacies of customer service. With proper setup, it can answer questions correctly almost 100% of the time.
LOOKING AHEAD
AI is steadily transforming from a chatting novelty to a practical solution. Expect it to be a restaurant site standard, greeting visitors, noting customers’ habits and sending valuable insights to your kitchen crew. It’s worth exploring what these tools can do for you now with an eye to the future.
2. AGENTS
Mainstream AI chatting services, such as ChatGPT, Microsoft’s Copilot, and Google’s Gemini, have until now been used mainly as assistants for everyday tasks, such as creating new recipes and drafting work emails. However, advancements in AI technology are making them available for use by individual businesses, including restaurants, as “Agents.” Agents have virtually limitless applications – essentially, they can become digital members of your staff.
The versatility of Agents makes them perfect to use as an ultimate concierge service on restaurant websites. They can integrate with your payment and booking systems, enabling customers to place a reservation through chat or gather customer preferences and food requirements to turn into a custom menu, giving customers a truly personalized experience.
3. ENHANCED RESTAURANT SOFTWARE
The first AI tools for many restaurants will come as software enhancements. You will likely see an AI analysis tool for your POS capable of crunching real-time customer, inventory and transaction data to give you insights, like a 24/7 restaurant consultant. AI also presents massive potential to improve the steps within your marketing process. For example, MustHaveMenus, our menu partner, is developing an AI menu helper that will spellcheck your menu, check print readiness and offer design tips that include real menu engineering.
IMPROVE PROFIT MARGINS >
See how your guests really feel about your food to unlock profitability.
Your menu is directly tied to your profit. The items that people love and cost little to make are bringing in the most money. Meanwhile, high-cost dishes that don’t sell well are pulling your margins down.
Menu engineering compares the profitability and popularity of similar items (entrees, appetizers) on a restaurant’s menu. To do this efficiently, we recommend sorting items into one of four categories – Star, Plow Horse, Puzzle and Dog.
STARS: HIGH PROFITABILITY | HIGH POPULARITY
Stars are your best sellers and have great profit margins. Ideally, this should be your goal for every item. When you discover your stars, feature them prominently on your menu and run promotions to get people to try them. Also, examine their flavor profile to see what your guests expect from you. This will be helpful information when trying to modify low-performing menu items.
PLOW HORSES: LOW PROFITABILITY | HIGH POPULARITY
If a menu item is selling well, but has a low profit margin, it’s a plow horse. These are often deceptive. On the surface, people love them. But because their costs are too high, they’re not making you much money. Sometimes nothing. You can handle this in a couple of ways. If the item is really popular, try raising the price. If the ingredients are really expensive, consider modifying them. Or if people can’t finish the dish, lessen the portion. Just don’t do it all at once.
READY, SET, ENGINEER
Get a clear view on your menu’s performance by downloading SpotOn’s free menu engineering worksheet. You’ll need each item’s cost, price and sales for a month. After you have those, just plug in the info and the worksheet will categorize everything for you. Detailed instructions are included inside.
PUZZLES: HIGH PROFITABILITY | LOW POPULARITY
From a cost perspective, puzzles are engineered to make money, but guests just aren’t ordering them. Maybe they’re priced too high, and people don’t see the value. Perhaps the portions are not enough. Or they have a flavor profile that your guests don’t expect from your restaurant. Compare your puzzles with your stars and see if you can modify them to excite your guests. And if all else fails, consider removing them altogether
DOGS: LOW PROFITABILITY | LOW POPULARITY
Dogs are costing your restaurant double. They’re expensive to make and they don’t sell. Take a hard look at your dogs and ask yourself a few questions. How long have they been unpopular? Have their ingredient costs recently gone up? Why are they on the menu? If you need to downsize your menu, dogs should be the first place to start. It’s always hard to get rid of menu items, but it’s even harder to keep losing money.
TRUST THE DATA FOR BETTER PROFIT
Menu engineering helps you set aside your feelings and reveals how your guests feel about your food (and drinks) using real data. And when you understand your guests better, that’s when you discover your restaurant’s true profit potential.
We welcome your suggestions and comments. Material chosen for publication may be edited for clarity and fit. Please direct all correspondence to: Shamrock Foods Company
MAGAZINE – Reader Feedback 3900 East Camelback Road, Suite 300 Phoenix, AZ 85018 kitchentelligence @ shamrockfoods.com
