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      "body": "@@ -11,17 +11,28 @@\n I'm \n-preparing\n+currently working on\n  a m\n@@ -89,16 +89,28 @@\n upt the \n+industry of \n online r\n@@ -144,22 +144,27 @@\n ables in\n-dustry\n+ the States\n , so I w\n@@ -201,31 +201,8 @@\n ghts\n- I've already collected\n . Th\n@@ -411,26 +411,8 @@\n that\n- (informal sector)\n . An\n@@ -448,18 +448,17 @@\n  answer \n-wa\n+i\n s about \n",
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      "title": "Interesting insights from the US restaurant industry",
      "body": "<html>\n<p>I'm preparing a market research for my startup that's going to disrupt the online reservations of restaurant tables industry, so I wanted to share some first insights I've already collected. The main challenge is to determine the more or less exact number of <strong>reservation-taking restaurants</strong> as that's the one and only target audience for my product and there is no known data on that (informal sector). Another interesting question to answer was about the general attitude towards <strong>using technology in the food industry</strong> by both restaurateurs and guests, as well as its real effects.</p>\n<p><br></p>\n<p><strong>MARKET OVERVIEW</strong></p>\n<p>According to <a href=\"https://www.restaurant.org/News-Research/Research/Facts-at-a-Glance \">National Restaurant Association</a> there were <strong>1m+ restaurants in USA</strong> (72.387 alone in California &nbsp;and ca.15m in the world) that generated around <strong>$799bn in revenue in 2017</strong>. <a href=\"https://www.statista.com/topics/4476/restaurant-and-foodservice-industry-in-the-us/ \">Statistsa </a>and some other sources give a bit different numbers: 647k restaurants in the US which made $766bn in sales in 2017. Interesting fact is that American restaurants make 22% of global consumer spending and give job to 13-14m employees according to different sources.</p>\n<p><br></p>\n<p><a href=\"https://www.restaurant.org/Downloads/PDFs/Events-Groups/Fast-Casual-Show-State-of-Industry-Presentation-Ma.pdf\">Top 5 States</a> - Restaurant Sales 2017 (in billions $):</p>\n<ol>\n  <li>California - 82.2&nbsp;</li>\n  <li>Texas - 54.1</li>\n  <li>New York - 43.3</li>\n  <li>Florida - 41.7</li>\n  <li>Illinois - 25.2</li>\n</ol>\n<p><br></p>\n<p>One should generally differentiate between full-service (also called 'tableservice restaurants') and limited-service restaurants (FSRs &amp; LSRs):</p>\n<p>- @ <strong>LSRs</strong> patrons generally order at a cash register or select items from a food bar and pay before they eat - irrelevant for us.</p>\n<p>- @ <strong>FSRs</strong> patrons order and are served while seated and pay after eating - yep!</p>\n<p><br></p>\n<p>Based on the figures above, here's a rough estimate on the total number of FSRs in USA in 2017:</p>\n<p>- $291.61b = 36.5% of all US restaruants revenue in 2017 which equals to <strong>around 365k FSRs total</strong>. Other sources give approximately the same number for FSRs, ranging them between 36% -42%.</p>\n<p><br></p>\n<p>However, within those 365k FSRs we need to further differentiate between restaurants that accept reservations over the phone/online and walk-in only restaurants (“first-come, first-serve” policy for the main reason - no-shows reservations). It looks like there is no exact number on reservation-taking restaurants and this information is quite informal.</p>\n<p><a href=\"https://www.sec.gov/Archives/edgar/data/1125914/000104746909008000/a2194323zs-1.htm#dw72501_business\">OpenTable</a> estimated the number of reservation-taking restaurants in North America at 30k places total back in 2009, while there were <a href=\"https://www.reuters.com/article/us-global-oil/oil-prices-up-2-percent-as-opec-nears-deal-to-raise-output-idUSKBN1JI03B?rpc=44\">475k</a> restaurants back then overall. This number made 6.3% from all US restaurants in 2009 only (FSRs + LSRs combined). So if we would like to make a very rough assumption for the total number of reservation-taking restaurants in 2018 based on this constellation from 2009, we would end up with <strong>ca. 63k+ restaurants that accepted reservations in 2017</strong> (6.3% from 1m) to start with...</p>\n<p><br></p>\n<p><strong>USE OF TECHNOLOGY</strong></p>\n<p>It's nice to see <a href=\"https://pos.toasttab.com/blog/restaurant-management-statistics\">that</a>:</p>\n<p>- 73% of diners agree that restaurant technology improves their guest experience.&nbsp;</p>\n<p>- 95% of restaurateurs agree that restaurant technology improves their business efficiency</p>\n<p>- the most important technology features for guests are online reservations, free wifi, and online ordering</p>\n<p><img src=\"https://i.imgur.com/6D1PZH1.png\" width=\"1213\" height=\"1354\"/></p>\n<p><br></p>\n<p><strong>WALK-INs ONLY</strong></p>\n<p>So why would restaurants choose to stay with the conservative “first-come, first-serve” model despite having the option to boost sales with online reservations? The main reason are the no-shows reservations that drive restaurant owners crazy, especially, imagine, on days like the Valentine's or New Year's eve, but also on any other regular Friday and Saturday nights. The <a href=\"https://www.theglobeandmail.com/report-on-business/industry-news/marketing/restaurateurs-turn-tables-with-apps-to-tackle-revenue-sapping-no-shows/article23398249/\">average rate of no-shows</a> for a typical restaurant is around 15 per cent. Secondly, the walk-in model could only work for places with mid- to low-priced menus as it is hard to imagine patrons of more expensive higher-end restaurants to wait in line for few hours (some restaurants had up to 4 hours wait time, believe it or not).</p>\n<p>Furthermore, for some restaurateurs as well as for a wide audience of guests it all comes down to this special experience they have to make when first queuing for 30-60 or even 90-120 minutes, then this exciting feeling of getting to the top of the line and finally the culmination of becoming a part of a busy and loud place on let's say a Friday night - it's like being in the middle of a hot concert! While patrons can enjoy this special type of entertainment, on the other side, for restaurant owners managing waiting lines in front of their entrance is the best way of marketing themselves as something special too. No wonder that <a href=\"https://www.lavu.com/blog/trends/no-reservations-benefits-walk-only-restaurants.html \">walk-in only busy restaurants earn 20% to 25% more in revenue</a>, changing tables up to four times a night thanks to immediately seated real-time queuing patrons on the contrary to 1.5-2 tables per dinner at those with phone/online reservations.</p>\n<p><br></p>\n<p>I have few more interesting topics on my list for further research:</p>\n<ul>\n  <li>Competition between online reservations services in the US</li>\n  <li>Use of technology (detailed) and its benefits</li>\n  <li>Reservation or walk-ins only?</li>\n</ul>\n<p>So just let me know in the comments below whether you found this review useful and what would you like to know more about in my next post?</p>\n</html>",
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      "title": "Interesting insights from the restaurant industry in the States",
      "body": "<html>\n<p>I'm preparing a market research for my startup that's going to disrupt the online reservations of restaurant tables industry, so I wanted to share some first insights I've already collected. The main challenge is to determine the more or less exact number of <strong>reservation-taking restaurants</strong> as that's the one and only target audience for my product and there is no known data on that (informal sector). Another interesting question to answer was about the general attitude towards <strong>using technology in the food industry</strong> by both restaurateurs and guests, as well as its real effects.</p>\n<p><br></p>\n<p><strong>MARKET OVERVIEW</strong></p>\n<p>According to <a href=\"https://www.restaurant.org/News-Research/Research/Facts-at-a-Glance \">National Restaurant Association</a> there were <strong>1m+ restaurants in USA</strong> (72.387 alone in California &nbsp;and ca.15m in the world) that generated around <strong>$799bn in revenue in 2017</strong>. <a href=\"https://www.statista.com/topics/4476/restaurant-and-foodservice-industry-in-the-us/ \">Statistsa </a>and some other sources give a bit different numbers: 647k restaurants in the US which made $766bn in sales in 2017. Interesting fact is that American restaurants make 22% of global consumer spending and give job to 13-14m employees according to different sources.</p>\n<p><br></p>\n<p><a href=\"https://www.restaurant.org/Downloads/PDFs/Events-Groups/Fast-Casual-Show-State-of-Industry-Presentation-Ma.pdf\">Top 5 States</a> - Restaurant Sales 2017 (in billions $):</p>\n<ol>\n  <li>California - 82.2&nbsp;</li>\n  <li>Texas - 54.1</li>\n  <li>New York - 43.3</li>\n  <li>Florida - 41.7</li>\n  <li>Illinois - 25.2</li>\n</ol>\n<p><br></p>\n<p>One should generally differentiate between full-service (also called 'tableservice restaurants') and limited-service restaurants (FSRs &amp; LSRs):</p>\n<p>- @ <strong>LSRs</strong> patrons generally order at a cash register or select items from a food bar and pay before they eat - irrelevant for us.</p>\n<p>- @ <strong>FSRs</strong> patrons order and are served while seated and pay after eating - yep!</p>\n<p><br></p>\n<p>Based on the figures above, here's a rough estimate on the total number of FSRs in USA in 2017:</p>\n<p>- $291.61b = 36.5% of all US restaruants revenue in 2017 which equals to <strong>around 365k FSRs total</strong>. Other sources give approximately the same number for FSRs, ranging them between 36% -42%.</p>\n<p><br></p>\n<p>However, within those 365k FSRs we need to further differentiate between restaurants that accept reservations over the phone/online and walk-in only restaurants (“first-come, first-serve” policy for the main reason - no-shows reservations). It looks like there is no exact number on reservation-taking restaurants and this information is quite informal.</p>\n<p><a href=\"https://www.sec.gov/Archives/edgar/data/1125914/000104746909008000/a2194323zs-1.htm#dw72501_business\">OpenTable</a> estimated the number of reservation-taking restaurants in North America at 30k places total back in 2009, while there were <a href=\"https://www.reuters.com/article/us-global-oil/oil-prices-up-2-percent-as-opec-nears-deal-to-raise-output-idUSKBN1JI03B?rpc=44\">475k</a> restaurants back then overall. This number made 6.3% from all US restaurants in 2009 only (FSRs + LSRs combined). So if we would like to make a very rough assumption for the total number of reservation-taking restaurants in 2018 based on this constellation from 2009, we would end up with <strong>ca. 63k+ restaurants that accepted reservations in 2017</strong> (6.3% from 1m) to start with...</p>\n<p><br></p>\n<p><strong>USE OF TECHNOLOGY</strong></p>\n<p>It's nice to see <a href=\"https://pos.toasttab.com/blog/restaurant-management-statistics\">that</a>:</p>\n<p>- 73% of diners agree that restaurant technology improves their guest experience.&nbsp;</p>\n<p>- 95% of restaurateurs agree that restaurant technology improves their business efficiency</p>\n<p>- the most important technology features for guests are online reservations, free wifi, and online ordering</p>\n<p><img src=\"https://imgur.com/a/kPzrjQn\"/></p>\n<p><strong>WALK-INs ONLY</strong></p>\n<p>So why would restaurants choose to stay with the conservative “first-come, first-serve” model despite having the option to boost sales with online reservations? The main reason are the no-shows reservations that drive restaurant owners crazy, especially, imagine, on days like the Valentine's or New Year's eve, but also on any other regular Friday and Saturday nights. The <a href=\"https://www.theglobeandmail.com/report-on-business/industry-news/marketing/restaurateurs-turn-tables-with-apps-to-tackle-revenue-sapping-no-shows/article23398249/\">average rate of no-shows</a> for a typical restaurant is around 15 per cent. Secondly, the walk-in model could only work for places with mid- to low-priced menus as it is hard to imagine patrons of more expensive higher-end restaurants to wait in line for few hours (some restaurants had up to 4 hours wait time, believe it or not).</p>\n<p>Furthermore, for some restaurateurs as well as for a wide audience of guests it all comes down to this special experience they have to make when first queuing for 30-60 or even 90-120 minutes, then this exciting feeling of getting to the top of the line and finally the culmination of becoming a part of a busy and loud place on let's say a Friday night - it's like being in the middle of a hot concert! While patrons can enjoy this special type of entertainment, on the other side, for restaurant owners managing waiting lines in front of their entrance is the best way of marketing themselves as something special too. No wonder that <a href=\"https://www.lavu.com/blog/trends/no-reservations-benefits-walk-only-restaurants.html \">walk-in only busy restaurants earn 20% to 25% more in revenue</a>, changing tables up to four times a night thanks to immediately seated real-time queuing patrons on the contrary to 1.5-2 tables per dinner at those with phone/online reservations.</p>\n<p><br></p>\n<p>I have few more interesting topics on my list for further research:</p>\n<ul>\n  <li>Competition between online reservations services in the US</li>\n  <li>Use of technology (detailed) and its benefits</li>\n  <li>Reservation or walk-ins only?</li>\n</ul>\n<p>So just let me know in the comments below whether you found this review useful and what would you like to know more about in my next post?</p>\n</html>",
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