Bringing retail and restaurants together to boost the bottom line.
“Success is best when it’s shared.” — Howard Schultz.
From London’s Hard Rock Cafe to Munich’s Hofbrauhaus via a dazzling array of lucrative R+B merchandising opportunities, giving people a chance to pick up a little something to remember their experience has been tried, tested and deemed a success many times over.
In 2018, FSR magazine was among the first publications to report on a new and infinitely less kitsch trend in the F+B retail world - that of all-day dining restaurants with extra-added marketplaces.
A whole host of American businesses such as Washington’s Maketto and Seattle’s London Plane had curated the perfect dining and shopping experience, seamlessly blending them so both became greater than the sum of their parts.
It stands to reason, psychologically, that somebody who has enjoyed their time with you, will happily take something away with them - be it the ingredients used in the dishes they have just tasted, cookbooks from the city or even tableware from the restaurant itself.
Modern restaurant retail feels much less about hoodies and mugs, and rather more about olive oil and locally crafted napkins. It’s cool, it’s inviting, and happily for you as the R+B manager, it is great for profits.
Of course, at the time of writing that FSR article, little did anyone know that this embryonic cool-as-a-cucumber restaurant/retail concept was about to grow a lot faster than anyone could have possibly imagined.
In the difficult pandemic period, with ever-changing restrictions and countries going in and out of lockdown, R+B brands worldwide were forced to pivot and for many, it was adding a retail aspect to the business that kept them afloat. Simply put, if you can’t come to us, we’ll find a way to come to you.
We had neighbourhood Italian places producing pasta by the kilos, the rise of the meal kit and even fine dining restaurants selling groceries, leveraging their relationships with their suppliers to stock people’s pantries with the same ingredients used by the restaurants themselves.
And whilst the world has opened up again for most of us, it looks like there may be some permanent changes to the way we dine out - one of those is our acceptance of the restaurant & retail hybrid. It’s here to stay.
We think nothing of popping into a place for a coffee and not only leaving with our soy latte, but also a bag of the single-origin beans used to make it. Or enjoying that truffle oil that the kitchen drizzled on our salad, and then being able to purchase it. Or even admiring the wine glasses and being able to order our very own set with the bill.
Whether leading the charge prior to the pandemic or taking part in the great pivot of 2020, the restaurants that have succeeded in this space are making tasty profits by adding a retail revenue stream, without losing the core of who they are. You cannot just mesh a plant-based restaurant with a butcher’s and hope for the best - the concept needs to align.
Let’s dive into a case study of The Quality Chop House - a heritage restaurant that has mastered the art of fine food, good times and an impeccable retail offering, where both sides of the business serve each other.
Opened in a Grade II-listed building, QCH celebrates 150 years of feeding hungry Londoners with their modern take on traditional British dishes (and some of the finest confit potatoes you’ll find anywhere).
After the diner falls madly and irreversibly in love with the food and drinks on offer, they have the option to browse the store where they can find fresh fruits and vegetables from the QCH suppliers, soups and ready meals, quality meat (of course), hampers, apron, cheese, charcuterie - lo and behold, you’ll even find everything you need to make those iconic confit potatoes at home.
The retail does not have to detract from the dining experience - it adds to it, allowing the guest to take a little piece of the Quality Chop House home with them.
Knowing your audience is key and it is within the understanding of their reasons for dining with you in the first place that will help you decide what, if any, retail option is the right one for your brand.
Are any of you reaping the rewards of a retail revenue stream within your R+B? Let us know over at @wired.fnd over on Instagram.
To discover how star power can shine a light on your brand, explore Brand Association Vol.2
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