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Maximizing Busy Restaurant Periods with a 'Hot' Shelf Strategy - QSR Magazine
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googletag .defineSlot( '/5272491/foodnews_network/qsr_spotiblepushdown', [1, 1], 'div-gpt-qsr_spotiblepushdown' ) .defineSizeMapping( googletag .sizeMapping() .addSize([991, 0], [1, 1]) .addSize([768, 0], [1, 1]) .addSize([320, 0], [0, 0]) .addSize([0, 0], [0, 0]) .build() ) .setTargeting( 'articletitle', ['maximizing-busy-restaurant-periods-with-a-hot-shelf-strategy'] ) .setTargeting( 'cat_target', ['9affe74ad83766b15daefd242fec358b,business-advice,customer-experience,menu-innovations,outside-insights,restaurant-operations,story,ros'] ) .addService( googletag.pubads() ); googletag .defineSlot( '/5272491/foodnews_network/qsr_prestitial', [[300, 225],[300, 400],[525, 550],[640, 480]], 'gam-holder-prestitial-banner' ) .defineSizeMapping( googletag .sizeMapping() .addSize([991, 0], [[640, 480],[525, 550]]) .addSize([768, 0], [[640, 480],[525, 550]]) .addSize([320, 0], [[300, 400],[300, 225]]) .addSize([0, 0], [[300, 400],[300, 225]]) .build() ) .setTargeting( 'articletitle', ['maximizing-busy-restaurant-periods-with-a-hot-shelf-strategy'] ) .setTargeting( 'cat_target', ['9affe74ad83766b15daefd242fec358b,business-advice,customer-experience,menu-innovations,outside-insights,restaurant-operations,story,ros'] ) .addService( googletag.pubads() ); googletag .defineOutOfPageSlot( '/5272491/foodnews_network/qsr_stickyfooter', googletag.enums.OutOfPageFormat.BOTTOM_ANCHOR ) .addService( googletag.pubads() ); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); </script> <script id="wtwh-uni-gam-content-hash-variables"> var contentHash = "9affe74ad83766b15daefd242fec358b"; var cat_target = "9affe74ad83766b15daefd242fec358b,business-advice,customer-experience,menu-innovations,outside-insights,restaurant-operations,story,ros"; </script> </head> <body class="post-template-default single single-post postid-89550 single-format-standard wp-custom-logo wp-embed-responsive content-sidebar-layout" id="top"> <!-- xyzzy top --> <div id="prestitial" style="opacity: 0;"> <div id="prestitial-overlay"></div> <div id="prestitial-grid"></div> </div> <div class="site-container"> <a class="skip-link screen-reader-text" href="#main-content">Skip to content</a> <header class="site-header" role="banner"> <div class="wrap"> <nav class="nav-primary nav-primary--left nav-primary--desktop" role="navigation"> <ul id="menu-main-menu" class="menu menu--primary-left"> <li class="menu-item layout-image-right"> <a href="/category/food/"> Food </a> <div class="mega-menu"> <div class="mega-menu__inner"> <ul class="sub-menu"><li id="menu-item-76884" class="mega-left-item mega-left-item-1 menu-item"><a href="https://www.qsrmagazine.com/food/beverage/"><span>Beverage</span></a></li> <li id="menu-item-76885" class="mega-left-item mega-left-item-2 menu-item"><a href="https://www.qsrmagazine.com/food/breakfast/"><span>Breakfast</span></a></li> <li id="menu-item-76886" class="mega-left-item mega-left-item-3 menu-item"><a href="https://www.qsrmagazine.com/food/burgers/"><span>Burgers</span></a></li> <li id="menu-item-76887" class="mega-left-item mega-left-item-4 menu-item"><a href="https://www.qsrmagazine.com/food/desserts/"><span>Desserts</span></a></li> <li id="menu-item-76888" class="mega-right-item mega-right-item-1 menu-item"><a href="https://www.qsrmagazine.com/food/health-wellness/"><span>Health & Wellness</span></a></li> <li id="menu-item-76889" class="mega-right-item mega-right-item-2 menu-item current-post-ancestor current-menu-parent current-post-parent"><a href="https://www.qsrmagazine.com/food/menu-innovations/"><span>Menu Innovations</span></a></li> <li id="menu-item-76890" class="mega-right-item mega-right-item-3 menu-item"><a href="https://www.qsrmagazine.com/food/pizza/"><span>Pizza</span></a></li> <li id="menu-item-76891" class="mega-right-item mega-right-item-4 menu-item"><a href="https://www.qsrmagazine.com/food/sandwiches/"><span>Sandwiches</span></a></li> </ul> <div class="mega-menu__right mega-menu__right--layout-image-right"> <div class="mega-menu__right-item"> <div class="mega-menu__right-item-content"> <p class="mega-menu__right-item-leader is-style-highlight has-font-size-2-font-size"> <mark class="has-inline-color has-secondary-color"> The executive is working with a booming smoothie and juice sector. </mark> </p> <span class="mega-menu__right-item-header"> <a href="/story/6-questions-with-juice-it-up-ceo-susan-taylor/" target=""> 6 Questions with Juice It Up! 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https://www.qsrmagazine.com/wp-content/uploads/2023/10/customersdiningout-400x225.jpg 400w" sizes="(max-width: 552px) 100vw, 552px" /><div class="node-image__credits">Adobe Stock</div><div class="node-image__caption">A good start determines the finish.</div></div><h1 class="entry-title">Maximizing Busy Restaurant Periods with a ‘Hot’ Shelf Strategy</h1> <span class="entry-date"> <time datetime="2023-10-02"> <span class="entry-date__month"> Oct </span> <span class="entry-date__day"> 2 </span> <span class="entry-date__year"> 2023 </span> </time> </span> <div class="single-post-under-title has-thumbnail"> <div class="single-post-category"> <div class="single-post-category__inner"> <svg height="24px" width="24px" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 384 512"><!--! 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lang="EN-SG"> (RM) isn’t just a buzzword; it’s the art and science of ensuring every order at your fast food counter maximizes your revenue. By serving the right meal to the right customer, at the perfect moment, and at an optimal price, RM can turn a quick bite into a regular stop. Think of your RM strategies as a </span><a href="https://www.qsrmagazine.com/outside-insights/how-restaurants-can-master-revenue-management"><span lang="EN-SG">3-shelf toolbox</span></a><span lang="EN-SG">, each shelf filled with tactics tailored for specific scenarios.</span></p> <p><a href="https://www.qsrmagazine.com/outside-insights/what-happy-hour-teaches-us-about-dynamic-pricing"><span lang="EN-SG">In our previous discussion</span></a><span lang="EN-SG">, we delved into the ‘cold’ shelf, strategies for those quieter mid-afternoon lulls. Now, let’s turn up the heat and dive into the ‘hot’ shelf. Imagine those lunchtime rushes when the drive-thru line wraps around the building, and every register is beeping non-stop. The challenge? How can RM ensure that during these peak times, every fryer and grill isn’t just busy, but also boosting your bottom line?</span></p> <p><span lang="EN-SG">Let’s start off with a story. I vividly recall an email from a student with the intriguing subject line: “What is hot?” It was late at night, and she and her team were deep into their class project for my Restaurant Revenue Management (RRM) course, pondering the tools on their ‘hot’ shelf. Their dedication got me thinking about the broader implications of the ‘hot’ strategy for the fast food industry.</span></p> <p><span lang="EN-SG"><strong>Understanding “Hot”</strong></span></p> <p><span lang="EN-SG">In the realm of RRM, “hot” signifies those times when demand surpasses supply. It’s like having a restaurant full of hungry customers but only so many burgers to serve. The challenge is to make the most of this high demand. Broadly, there are two ways to approach this:</span></p> <ul> <li><span lang="EN-SG">Cater to the highest value demand.</span></li> <li><span lang="EN-SG">Optimize your capacity to serve as many as possible.</span></li> </ul> <p> </p> <p><span lang="EN-SG"><strong>1. Catering to High-Value Demand</strong></span></p> <p><span lang="EN-SG">Airlines and hotels have long used RM systems to prioritize high-value customers, especially during peak times. They restrict lower-priced options, ensuring that premium customers get priority. For quick-service restaurants, this strategy can be a game-changer.</span></p> <p><span lang="EN-SG"><strong>Skip the Discounts</strong>: Busy times are not for promotions. Keep those for the quieter periods when you need to attract customers.</span></p> <p><span lang="EN-SG"><strong>Leverage Loyalty Programs</strong>: Your regulars are gold. Use loyalty programs to send them exclusive offers or give them priority access during peak hours. For example, </span><a href="https://get.chownow.com/blog/shhh-this-is-how-to-pull-off-a-secret-menu-at-your-restaurant/?utm_medium=desktop_nav&utm_source=marketplace_web"><span lang="EN-SG">consider offering a secret menu</span></a><span lang="EN-SG"> to your highest-value guests.</span></p> <p><span lang="EN-SG"><strong>Channel Management</strong>: While first-party orders are ideal, third-party platforms are a reality. Tools like ChowNow or Olo can help manage these channels effectively, ensuring you prioritize high-value orders.</span></p> <p><span lang="EN-SG"><strong>2. Maximizing Capacity</strong></span></p> <p><span lang="EN-SG">To truly capitalize on ‘hot’ periods, every aspect of your operation needs to be streamlined:</span></p> <p><span lang="EN-SG"><strong>Setup</strong>: A good start determines the finish. Your restaurant layout should facilitate smooth movement for both staff and guests. During peak hours, consider offering a limited, but profitable menu. Tools like </span><a href="https://dynameat.io/"><span lang="EN-SG">DynamEat</span></a><span lang="EN-SG"> allow restaurants to focus on high-profit items that can be quickly prepared. Also, ensure you have the right mix of staff, especially during peak times. Labor scheduling software like that provided by </span><a href="https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwiv1LeZysGBAxVJz8IEHU-QCyYYABABGgJwdg&ase=2&gclid=CjwKCAjwmbqoBhAgEiwACIjzEJR1Fx8HZegusCMjsjAKqQpIJufKMltbEThDOIAsZzPazBvfmXiq3xoCoN8QAvD_BwE&ohost=www.google.com&cid=CAESa-D2zF_skXvUe4GY23go9bnezjeKQ3wVb2BOgmqOMsR_DHYMpWiQ4f5YG-jby_Fx_i4p5ZJhMNTO72MaRQp6_RMxhoDblE4CuhTaGcy2sbSWU_zVFu-mkc8NF81btzNdH1FWNxyZRHC9bajg&sig=AOD64_0qltgOXP3bJupDq-WxgwOXV5PObQ&q&nis=4&adurl&ved=2ahUKEwjcp7CZysGBAxVpJ0QIHdyYBywQ0Qx6BAgGEAM"><span lang="EN-SG">Sling</span></a><span lang="EN-SG">, </span><a href="https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwjwl4ODysGBAxUXJa0GHe1XCFEYABAAGgJwdg&ase=2&gclid=CjwKCAjwmbqoBhAgEiwACIjzEKy3Z4x5704smEPOacasdr7gfGM_PRm4v3M9N7Th9EKnOQyIZP_IGRoCh_4QAvD_BwE&ohost=www.google.com&cid=CAESa-D2ongg_8id7brWxRPniSGbcxJwbKP08J1LJL-Kw_wt6lJqHWeFE8TjfSJ-crRQPJUL59pH1C3n2Kb3581YGEwIwTsT7axGCrw2cw1BH-4OSjNirN_tninEw6l1p4yTnxDkUYbcGRyQpE1a&sig=AOD64_3JeqlQiI3vBwiQ5A-RvbK3_pfjAw&q&nis=4&adurl&ved=2ahUKEwitlvyCysGBAxUMJEQIHX2cAaMQ0Qx6BAgJEAM"><span lang="EN-SG">7Shifts</span></a><span lang="EN-SG">, and </span><a href="https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwimiLmmysGBAxUDB60GHV1JC10YABACGgJwdg&ase=2&gclid=CjwKCAjwmbqoBhAgEiwACIjzEMQJ-iIRWrlpAVx8vvw24WMz_1O9j6RTD2cVQWvaNBUnOe_B0OS7UBoC95UQAvD_BwE&ohost=www.google.com&cid=CAESa-D2PNSzWlpGFwJQHDZrOxGO6Iu969_-CaU2gJGWUaIWroiM-VCXmJE36xQ9OfSdmfXpCHpTlFLwEPNrP5twr1ihB8r5U9gdw3oCDldlSNwQqRpr4Gy1dsersV6Zj_Km6n_IkLqAKykBpxqp&sig=AOD64_2XNtWufWssgSepPk-OzSlISXasZA&q&nis=4&adurl&ved=2ahUKEwjh2bCmysGBAxXSJEQIHUl3ByUQ0Qx6BAgOEAE"><span lang="EN-SG">Restaurant365</span></a><span lang="EN-SG"> can help with this.</span></p> <p><span lang="EN-SG"><strong>Ordering</strong>: In the fast-food world, speed is king. For online orders, a user-friendly interface is crucial. For walk-ins, consider introducing kiosks. They’re not just trendy; they’re efficient. </span><a href="https://www.touchbistro.com/blog/why-self-ordering-kiosks-are-becoming-the-secret-weapon-for-successful-restaurants/"><span lang="EN-SG">Touch Bistro</span></a><span lang="EN-SG"> reports that kiosk ordering can be up to 40 percent faster. During “hot” times, every second counts. And don’t forget the drive-through—it’s a goldmine if managed well. For example, </span><a href="https://www.qsrmagazine.com/reports/2023-qsr-drive-thru-report"><span lang="EN-SG">Chick-Fil-A gets its drive-thru customers faster</span></a><span lang="EN-SG"> than any other chain. Chains </span><a href="https://www.restaurantdive.com/news/white-castle-soundhound-ai-voice-drive-thru-100-units-2024/689624/"><span lang="EN-SG">deploying AI</span></a><span lang="EN-SG"> can speed things up even more while at the same time reducing labor cost and increasing average check size. </span></p> <p><span lang="EN-SG"><strong>Order Production</strong>: Your front-of-house might be running smoothly, but if there’s chaos in the kitchen, it’s a recipe for disaster. Organized stations, clear communication, and efficient technology integration can work wonders. Consider pre-prepping certain items or even off-premise production for items that require longer preparation times. </span><a href="https://www.servicephysics.com/"><span lang="EN-SG">Service Physics</span></a><span lang="EN-SG"> helps restaurants improve their efficiency. For example, one of their </span><a href="https://www.linkedin.com/feed/update/urn:li:activity:7109954448390557696/"><span lang="EN-SG">recent clients</span></a><span lang="EN-SG"> was able to decrease customer wait time by 33 percent, and increase the number of pizzas produced by from 38 to 54 pizzas per half hour. Think about the revenue impact of that.</span></p> <p><span lang="EN-SG"><strong>Order Fulfillment</strong>: Once an order is ready, the handover should be seamless both for customers and delivery drivers. Whether it’s at the counter, the drive-through, or a pick-up point, ensure the process is quick and hassle-free. </span><a href="https://pos.toasttab.com/blog/on-the-line/improve-delivery-efficiency#:~:text=Speed%20up%20the%20process%20of,to%20pick%20up%20takeout%20orders."><span lang="EN-SG">Toast</span></a><span lang="EN-SG"> has some very useful tips for this.</span></p> <p><span lang="EN-SG"><strong>Evaluation</strong></span></p> <p><span lang="EN-SG">It’s essential to pause and assess. Are you meeting your targets? Key performance indicators like speed of service, order accuracy, profit margins, and customer feedback can provide valuable insights.</span></p> <p><span lang="EN-SG">Navigating the “hot” periods in the fast food industry can be challenging, but with the right strategies, it’s an opportunity in disguise. The essence of Restaurant Revenue Management is to maximize profit by making the most of available resources. Whether it’s the all-purpose tools of menu design and pricing or the specialized ‘hot’ and ‘cold’ shelf strategies, the goal remains the same: optimal profit.</span></p> <p><span lang="EN-SG">So, the next time you find yourself in a “hot” period, remember the late-night ponderings of my dedicated student and her team. It’s not just about managing the rush; it’s about making the rush work for you.</span></p> <p><span lang="EN-SG">As I wrap up this five-part series, remember the strategies and insights we’ve discussed. In the restaurant industry, every moment—whether it’s a rush or a lull—holds potential. Armed with the ‘all-purpose tools’ and specialized tactics we’ve explored, you’re set to maximize profits and growth consistently. Make every moment count.</span></p> <p><em><span lang="EN-SG"><strong>Sherri Kimes</strong> is an Emeritus Professor at Hotel School at Cornell and specializes in pricing and revenue management. She has actively involved with teaching, conducting research and consulting in restaurant revenue management for the past 25 years. She is passionate about helping restaurants increase profitability. She can be reached at </span></em><a href="mailto:sk@sherrikimes.com"><em><span lang="EN-SG">sk@sherrikimes.com</span></em></a><em><span lang="EN-SG">.</span></em></p> <div class="single-post-related-cat-chains"><a href="https://www.qsrmagazine.com/operations/business-advice/" aria-label="View Business Advice Category Posts">Business Advice</a>, <a href="https://www.qsrmagazine.com/operations/customer-experience/" aria-label="View Customer Experience Category Posts">Customer Experience</a>, <a href="https://www.qsrmagazine.com/food/menu-innovations/" aria-label="View Menu Innovations Category Posts">Menu Innovations</a>, <a href="https://www.qsrmagazine.com/operations/outside-insights/" aria-label="View Outside Insights Category Posts">Outside Insights</a>, <a href="https://www.qsrmagazine.com/operations/restaurant-operations/" aria-label="View Restaurant Operations Category Posts">Restaurant Operations</a>, <a href="https://www.qsrmagazine.com/story/" aria-label="View Story Category Posts">Story</a></div> </div> </article> </main> <aside class="sidebar sidebar--primary" role="complementary"> <div class="entry-author"> <div class="entry-author__item"> <div class="entry-author__content"> <span class="entry-author__name"> Sherri Kimes </span> </div> </div> </div> <div class="sidebar__sponsored-content"> <div class="sidebar__sponsored-content-item"> <div id='div-gpt-qsr_sidebarshort'> <script> googletag.cmd.push(function() { googletag.display('div-gpt-qsr_sidebarshort'); }); </script> </div> </div> <div class="sidebar__sponsored-content-item"> <div id='div-gpt-qsr_sidebarshort2'> <script> googletag.cmd.push(function() { googletag.display('div-gpt-qsr_sidebarshort2'); }); </script> </div> </div> <div class="sidebar__sponsored-content-item"> <div id='div-gpt-qsr_sidebar1'> <script> googletag.cmd.push(function() { googletag.display('div-gpt-qsr_sidebar1'); }); </script> </div> </div> </div> <div class="block-area block-area-sidebar"> <div id="recent-posts-block_eafca82b18de4b375af3f59d330d73d0" class="acf-block block-recent-posts podcast-layout-featured" style="margin-top:0;margin-bottom:0;"> <div class="block-recent-posts__top"> <h2 class="block-recent-posts__header is-style-icon-header has-font-size-6-font-size"> <span class="is-style-icon-header__inner"> <svg height="24px" width="24px" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 448 512"><!--! 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