Recap of Friday August 4, 2023: Rampant Service Fees, Anheuser-Busch Layoffs, Nightmare ERC Employee Retention Credit

Welcome to Restaurant News Roundup presented by LiveFlow, your go-to source for the latest updates and happenings in the restaurant industry.

In this special recap article we roundup stories on all the ways restaurants are using AI, Anheuser-Busch layoffs, the nightmare of the ERC Employee Retention Credit program, lawsuits over MrBeast's burgers to hotels crafting sober beverage menus, Restaurants adding reservation fees, no-show fees, services fees, and more breaking news.

Our mission is to bring you a rapid-fire of the ten top stories covered in under ten minutes. We strive to keep restaurant professionals informed of the current affairs of the industry.

To watch the Videocast of this installment of Restaurant News Roundup, click here

1. MrBeast sues Virtual Dining Concepts to shut down MrBeast Burger by Joe Guszkowski - Restaurant Business Online 

The YouTube megastar accused the company of damaging his reputation by selling bad food with his name on it.

The complaint cited reviews and articles highlighting “inedible” food, late-arriving and inaccurate orders, unbranded packaging and a faulty website. It includes dozens of examples of online reviews calling MrBeast Burger “disgusting,” “terrible” and “worst burger ever,” as well as numerous images of raw and undercooked chicken and beef.

VDC has confirmed, they have hired lawyers and are preparing for a court battle. 

Question: Can virtual concepts whose food production is outsourced, thrive? Case in point, Chili’s “It’s Just Wings” vs VDC’s “Mr Beast Burger”

Article Link: Read More

2. JUICER Launches 'Enlighten' to Help Restaurants with Direct Ordering by FSR Magazine

Enlighten is a consumer facing widget for restaurant websites that highlight the cost-savings consumers can enjoy by ordering directly on restaurant websites.

Ashwin Kamlani, JUICER’s Co-Founder & CEO, says, “We believe that most consumers don’t know about how much they could save by ordering direct, and if the industry comes together to educate the consumer it could initiate a wave of change in consumer behavior.”

Question: Could Enlighten shift consumer behaviors and make restaurants more money?

Article Link: Read More

3. Blaze Pizza CEO: We want an experience that can’t ‘be replicated by machines’ by Aneurin Clyne - Restaurant Dive

The biggest challenges the industry faces this year are rising food costs and labor shortages. 

CEO Beto Guajardo says, “One trend that concerns me is the rise of automation. We need to focus on providing a unique and personalized customer experience that cannot be replicated by machines.”

Question: What restaurant jobs are most in jeopardy of being replaced by automation and robots?

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4. Congress Hears From Tax Pros About ERC Tax Credit Challenges by Michael Cohn - Accounting Today

The Employee Retention Credit (ERC), a tax credit that was created by the CARES Act to help businesses keep employees on their payroll during the pandemic.

Restaurants are facing major challenges amid constant sales pitches by aggressive third-party companies, overpromising hefty tax refunds to employers, despite processing delays and vetting by the IRS for rampant fraud.

It is a legitimate program, expiring at the end of the year, which many have thought was a scam and have not applied for funds they are eligible for. I would like to hear from any businesses that have received funds through the program? 

Question: Who is sick of getting bombarded by these ERC robo-calls?

Article Link: Read More

5. Hotels expand drink options for growing number of sober and sober-curious guests by Tad Wilkes - Restaurant Hospitality

The growing sober market includes guests refraining from alcohol, permanently or temporarily or experimentally for the “sober-curious” crowd.

 It is important for operations to understand those consumer motivations and goals, from those just following the “Dry January” or “Sober October” trends to those trying to be more inclusive to their social circles. 

Question: I’m interested to hear from Bartenders, how is the quality and availability of quality base ingredients for “low-proof” or “zero-proof” drinks?

Article Link: Read More

6. How Restaurants Are Using AI from Menu Development to Marketing by Tricia Contreras - SmartBrief

Restaurants are using artificial intelligence (AI) to improve everything from menu development to marketing with writing copy, creating images and even tailoring content to the weather. AI can be used to analyze customer data to identify trends, to create personalized recommendations, manage job applicants, and to automate tasks.

Wingstop announced earlier this year that it is testing an AI voice assistant from ConverseNow to handle phone orders. The program, which is designed to eliminate missed calls and process phone orders the same as online orders, can take orders in English and Spanish, Chain Store Age reported.

Question: How are you using AI? And if you aren’t, what the hell are you waiting for?

Article Link: Read More

7. Uber Eats expands in-seat delivery to Oracle Park in San Francisco by Julie Littman - Restaurant Dive

Demand for mobile-ordering has increased following changes to MLB rules that led to shorter pitch clocks and shorter games.

Pickup is available at over 20 concessionaires inside Oracle Park. In-seat delivery in the park is available at 3,000 seats. Deliveries are typically made within five to 10 minutes of being processed.

Question: How long until mobile-ordering and in-seat delivery is available at every major sporting stadium?

Article Link: Read More

8. The Rise of the Reservation Fee by Melissa McCart - Eater New York

With 28 percent of Americans occasionally flaking on reservations, restaurants have been trying to hold diners more accountable with no-show charges of anywhere from $25 to $50. Now reservations fees are becoming more widespread.

Pearl Street Caviar and Kintsugi, charge a $10 to $35 per-person fee for a reservation. Torrisi and Carbone have a $50 per-person deposit that’s applied to the final bill and refunded if cancellations are made at least 12 hours in advance.

Question: I need to hear from diners and restaurants on this issue…how do you feel about both reservation fees and no-show fees?

Article Link: Read More

9. RESTAURANT SERVICE CHARGES ARE SUDDENLY EVERYWHERE. WHAT GIVES? by Restaurant Business Online

19% of family restaurants and 13% of quick-service say they have added service fees of some kind. 

Many diners aren't pleased with service fees: 'You feel like you're paying a cable bill'. Some say they’d be less likely to return to restaurants with a fee, while others say they would tip less or not at all.

Whether a "service charge," "living wage fee" or "happy kitchen fee," how surcharges appear on guest checks—and how they are disclosed—can be key in protecting a restaurant from costly litigation.

Bills on the processing and taxation of service fees are in state-houses across the country and at the federal level as well. 

Question: It’s really volatile right now when it comes to menu prices, labor models, tipping and service fees, so I just want to hear from you on what you’re most formed about in these debates?

Article Link: Read More

10. Anheuser-Busch layoffs: After Bud Light sales dip, company cuts hundreds of jobs by Francisco Guzman - USA Today

Anheuser-Busch InBev, employs roughly 19,000 U.S. workers, according to its website. If accurate, the less than 2% job cuts figure would affect about 380 workers.

In early July, Bud Light lost its spot as the top-selling beer in the country to Modelo Especial, with sales declined 20.1% and volumes fell 23.6% year-over-year. Much of this drop is attributed to back-lash over a promotional video on Instagram featuring transgender influencer Dylan Mulvaney

Question: With beer sales declining overall and these moves by Anheuser-Busch how does this affect operators who have relied on those beer sales as core to their business?

Article Link: Read More

Thanks for joining us for this week's recap from Restaurant News Roundup presented by LiveFlow.

LiveFlow is for restaurants, frustrated, using Quickbooks, desperately wanting better automated financial dashboards with real-time data. Click this link to try free, and use promo code BESTSERVED, to get 20% off for 3 months. Stop pounding your head against the wall with Quickbooks lack of functionality and archaic dashboard.

We hope these summaries keep you informed about the latest industry updates. Remember to follow along with our fast-paced show every week, where we deliver ten stories in under ten minutes. Fridays at 8am EST on Best Served Podcast Facebook and YouTube pages.