Hospitality Minutes Weekly Report: Week ending December 16th, 2023. Issue #3.

This week’s highlights in the restaurant industry:

• How AI is transforming the restaurant industry

In the dynamic landscape of the restaurant industry, artificial intelligence (AI) is emerging as a key player, addressing challenges from labor shortages to operational efficiency. Major players like Wendy’s and CKE Restaurants are incorporating conversational AI into drive-thru ordering systems, while delivery providers like DoorDash and Grubhub are experimenting with AI chatbots and delivery robots.

For high-end restaurants, the focus is on generative AI powered by Large Language Models (LLMs). This goes beyond mere automation, enhancing online ordering platforms with visually compelling content. The article emphasizes the time-saving aspect of LLMs, particularly in content curation for extensive menus. In multilingual regions like Europe, AI-driven machine translation facilitates quick and accurate language adaptation for menus, making them accessible to diverse customers. The transformative potential of AI extends to streamlining manual tasks, such as handling invoices and managing menus, freeing up restaurateurs to concentrate on their culinary craft and guest experiences. Ultimately, AI's role is seen as an exciting addition to the industry, not to replace human interaction but to empower restaurant operators for a more efficient and engaging future.

• World's First Fully Autonomous, AI-Powered Restaurant Opening in Southern California

Cali Group, in collaboration with Miso Robotics and PopID, has unveiled plans for the world's first fully autonomous restaurant, CaliExpress by Flippy?. Located in Pasadena, California, this groundbreaking eatery employs advanced AI and robotics for both grill and fry stations. Guests can engage with the autonomous system by checking in with their PopID accounts on self-ordering kiosks, receiving personalized recommendations, and completing swift payments. The menu, featuring burgers, cheeseburgers, and fries, showcases the innovative use of technology to deliver quality food at competitive prices.

Notably, the kitchen's automation not only transforms the dining experience for customers but also revolutionizes the workplace for restaurant employees. The use of Flippy, an AI-powered robotic fry station, enhances safety and reduces waste, offering crispy fries and freshly made burgers. The fully automated processes contribute to a safer, more efficient kitchen environment, requiring a smaller crew. This pioneering concept represents a significant leap forward in the integration of AI and robotics in the restaurant industry, providing a glimpse into the future of autonomous dining. The CaliExpress by Flippy is set to open in December 2023 by reservation only, with a grand opening to follow, inviting patrons to experience this unique blend of culinary innovation and automation firsthand. ??????

Flippy 2 working

• The next plant-based craze: Plant-based egg

The popularity of plant-based alternatives is extending beyond meat replacements, with plant-based eggs gaining traction on U.S. menus. Made from bean protein or similar alternatives, these plant-based eggs are now available in various forms, including scrambled, omelet-style, and hard-boiled, as well as substitutes in baked goods like cookies and bread. Despite a small percentage of the population identifying as vegan, a growing number of consumers, including non-vegetarians, are embracing plant-based eggs as a convenient way to reduce their consumption of animal products. Market research by Datassential reveals that 45% of the population is aware of plant-based eggs, and 14% have tried them. This trend showcases the increasing demand for plant-based options across diverse culinary offerings. ????

• What's trending in the food and beverage industry in 2024?

1. Continual exploration of global flavors is ongoing, with an increasing interest in diverse tastes worldwide. Consumers are seeking deeper cultural connections through food and exploring lesser-known cuisines in Asian and African cultures.
2. Consumers' pursuit of elevated convenience remains prevalent, as they seek ways to enhance the flavor and quality of their meals while embracing shortcuts.
3. The environmental impact of food remains a significant concern for consumers.
4. Drinks segment leading growth. In the upcoming year, there will be a surge in the demand for sophisticated single-serve beverages that are both fizzy and non-fizzy, as well as functional coffees, teas, and broths infused with ingredients that provide an extra boost of energy, focus, clarity, or relaxation. These beverages will have minimal to no added sugar, salt, or synthetic ingredients, and will showcase tropical flavors, as well as herbs and botanicals from around the world.
5. Plant-based foods
6. Functional health products
7. The new fast-casual. á la minute cooking, fresh and healthy options, customer engagement and a variety of choices in the dish preparation process have proven to be successful in the fast-casual segment in recent years.
8. Spice tolerance on the rise. From Carolina Reapers to Scorpion Peppers, Guajillo and Hungarian Goathorn Peppers, these specialty varieties can be found fresh, whole, ground, or pickled. In addition, there is a new trend of botana sauces and chili oils that are becoming increasingly popular in condiment aisles.
9. Little treat culture. Brands are now jumping on this trend by offering affordable and convenient individual serving packages that bring pure joy without breaking the bank: impulsive macaron or a refreshing, functional, and bursting-with-flavor beverage like the bubble tea.
10. One dish wonders or ODWs. Single-dish restaurants are still up and coming. It’s all about specialization, finding, and exploring niches that few if any players have ventured into yet, staking a claim and providing for a unique experience while optimizing inventories and bringing about greater profitability.
11. Alternative caffeine boost. It has never been easier to combine a caffeine boost with additional health benefits. As a result, there's no better time than now to explore the world of "clean caffeine" and discover your next favorite pick-me-up.
12. Self-service kiosks and Grab and Go.
13. Consumers will be seeking value

• From Unrefined Salt and Tinned Fish to Umami Cocktails: Kimpton Brings New Food and Beverage Trends and Classics to the Table in 2024

?Kimpton Hotels & Restaurants, part of IHG Hotels & Resorts' luxury & lifestyle portfolio, is returning with its annual Culinary + Cocktail Trend Forecast,?highlighting predictions from its vast team of global culinary and beverage experts that will be featured on plates and bar menus in 2024.

2024 Culinary Trends

• Salt With a StoryWhile salt is one of the most common ingredients in cooking, expect to see a noticeable shift to unrefined salts (Black Hawaiian Salt, Kala Namak, Persian Blue Salt, Celtic Salt, Fleur de Sel) as consumers move away from table salt staples in search of something far more unique to add to their favorite dishes.
• Tinned Fish and?Seacuterie BoardsIn the last year, luxury tinned fish sales have soared as people embrace seafood's diverse range of flavors and sustainable practices. Expect to see more unique?conservas on charcuterie boards as well as dedicated 'seacuterie' boards including samplings of luxury canned fish like Spanish sardines in olive oil, habanero smoked oysters, and Maine eel smoked in alderwood packed in California olive oil.?
• Cabbage Takes Cauliflower's CrownCabbage will take over plates as culinary professionals and consumers alike turn to the cruciferous vegetable for its versatility, taste and texture. Napa, Savoy and Red Cabbage, Caraflex or Conehead cabbage.
• Creative Dry AgingWith dry aging, chefs are able to push beyond beef into more interesting dishes with duck, lamb and fin fish. Vegetables like beets and carrots are being dry aged with?koji to create a charcuterie-like texture and flavor. Even spirits like bourbon and gin are being treated with dry aging techniques to take cocktails to the next level.?
• Pastry is BackGuests can expect to see a rise in sweet and savory combinations, such as carrot mochi and chocolate smoked salt croissants with alternate sugars like date-based sugar, beet sugar and coconut sugar growing more prominent.

2024 Cocktail/Beverage Trends

• Textured Cocktails for the SensesRose and pistachio dust, dragon fruit crisp and edible helium bubble clouds are some of the sensory ingredients.
• A New Wave of?Umami?Kimpton bar leaders predict more experimentation with different types of fat washing as a new way to create smooth, creamy and velvety undercurrents in spirits rather than more traditional sweet syrups. Expect to find creations like a salmon martini or beverages using unique washing ingredients such as duck?confit and spam.
• Pantry Ingredients Featured in CocktailsBars will incorporate ingredients from the kitchen to up level cocktail and non-alcoholic beverages, including?biquinho peppers, salsa macha, soy sauce, fish sauce, whole cacao, black tahini, lion's mane and sweetened condensed milk as an alternative to more traditional cocktail infusions.
• Over-The-Top GarnishesFrom snap peas to using 3D printers, simple garnishes will evolve to elaborate final flourishes that completely transform a cocktail from salty and savory to?citrusy and bright in an instant.
• Cinnamon Revisited?Breaking out of its autumnal shell, the versatility of cinnamon will offer dynamic flavor pairings as a popular additive and bridge to?trans-seasonal beverages and dishes, like cinnamon and smoked salt coffee and chica moradas.?
• Unique Latin American SpiritsWhile tequila, gin and bourbon continue to shine on menus, 2024 will see the rise of Latin American spirits and liquors such as?Aguariente, Singani and Cocuy, served within craft cocktails or enjoyed on the rocks.?

2024 Dining Experience Trends

• Multisensory DiningConsumers will continue to look for culinary experiences that take them beyond taste and texture, and provide a holistic experience filled with more extravagance and novelty. Restaurants and bars will be paying even more attention to presentation and glassware, background music and smells to engage all the senses during a culinary journey.
• The Future of AIKimpton culinary experts anticipate more chefs will be open to integrating AI tools to optimize processes, reduce food waste and help make food more accessible, providing a new solution to operating as sustainably as possible. Restaurants will continue to emphasize responsible stewardship from zero waste efforts and regenerative agriculture, to water conservation.?AI can also be used as a new source of inspiration to spark conversation in the kitchen about new flavor combinations and dish ideas, allowing chefs to think about their menus in a new light.
• National Restaurant Association takes aim at FTC's proposal to kill add-on fees

The National Restaurant Association is spearheading a grassroots effort to dissuade the Federal Trade Commission (FTC) from implementing regulations that could ban various restaurant surcharges. The proposed rules, part of the Biden administration's consumer protection initiative against "junk fees," could outlaw common add-ons like credit-card processing fees, automatic gratuities, delivery charges, and service fees. The restaurant association contends that such a ban would necessitate incorporating these charges into menu prices, costing the industry an estimated $3.5 billion, with individual establishments facing a menu recasting cost of around $4,818.27 each, according to FTC estimates. The FTC's intention to regulate restaurant surcharges emerged after unsolicited complaints during an initial commentary period on potential new regulations.

Menu inspiration:

Korean Cuisine, Bowl of Naro Bap: Combination of A5 wagyu, cubes of tender gyeran mari (a seasoned, rolled omelet), and barley and sorghum bap—an earthy and nutty rice base.

Leadership Thoughts and Book Review

“Start with Why” by Simon Sinek.

Sinek provides a three-step framework that purpose-driven leaders use to inspire people to take action.??“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe.”

It is one of the best leadership books for receiving a foundational understanding of what it means to lead with purpose. If you want to refresh and revive your organization, you should read this book first. Without a doubt, Start with Why changes the game on how leaders guide their companies. It explains the importance of putting purpose at the center of the business so owners and executives don’t lose focus on fulfilling the company’s mission. An understanding of how to lead with why has the power to truly transform any business for the better. Buy this book here

Self-care tip of the week

Recognizing the importance of recovery for optimal performance is a key element, and breaks play a significant role in enhancing productivity.

It makes one wonder why there's a pervasive belief that constant activity leads to increased productivity and that burning out is a prerequisite for success. This mindset can be traced back to the first Industrial Revolution, where the efficiency of machines became a model. However, for the human operating system, downtime isn't a flaw; it's a valuable asset. Similar to elite athletes acknowledging recovery as part of peak performance, downtime serves as a productivity multiplier.

Do you take time to recover during this busy holiday season?

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Have a great weekend ahead!