Experience the Experience

Adam D'Sylva’s Lollo Restaurant
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Food and Entertainment driving immersive experience

Australia’s food and beverage operators have been striving to return their businesses to some degree of normality in order to drive sales, stabilise costs and prepare themselves for the imminent financial obstacle of Job keeper payments ceasing in three weeks’ time. It is clear from the ABS that the future is bright for food and beverage operations, however, operators need to be creative, flexible and innovative in order to comply with the remaining Covdid-19 restrictions around social distancing and the control in patron numbers in any one enclosed space.

Grand Slam Dining Oval, Australian Open, Melbourne
Image Via Broadsheet

In this blog my aim is to talk about the ever-increasing spend potential on food and beverage based around a number of “Happiness—hungry” experiences.  The infographic below shows that cafes and restaurants have bounced back better than other retail sectors in Australia since the industry has reopened. 

Here in Australia, December 2020 Retail Trade data shows that Cafes and Restaurants have had the strongest bounce-back from the March – May period than any other category of retailing.  Cafes and Restaurants turnover for December 2020 was 88% higher than the average for March to May.  This outpaces hardware stores, electronics goods, department stores, supermarket and clothing/footwear retailers.  This performance shows the resilience of the industry and the desire of Australians to eat out.

Information provided by the Australian Bureau of Statistics – December 2020
Image Via Future Food

Newly opened Lilymu, Parramatta Square 
Image Via Timeout

Long before Covid-19 arrived, our consumer driven society were gravitating towards “pleasure over product” when it comes to allocation of their discretionary income. Eating out, dining-in on deliveries and drinking at licensed premises are all favourite pastime activities of the modern consumer and provided the offer is well planned and executed, very profitable for the operators with customers returning time and time again. The future looks bright for the industry with bookings at an all-time high, a host of new food and beverage venues planned for our capital cities and suburbs and spending in food and hospitality growing year on year. 

Newly opened Parramatta Square’s podium level overlooking the public domain
Image Via The Urban Developer

Pleasure-hungry customers are looking for memorable experiences, eating and drinking along with immersive leisure and entertainment experiences to bring happiness via a range of avenues.

Bar 83 at Sydney Tower, Sydney CBD
Image Via Timeout

Exchange Hotel Pop-Up Beach Club, Melbourne 
Image Via Concrete Playground

Never before has innovation mattered as much as it does in this transitioning post-Covid-19 world. We have all seen how the world has changed in the last year and the food and hospitality operators have had to respond and adapt accordingly, with many food and beverage operators pivoting to deliver creative and appealing offers that have redefined their businesses.

Hospitality and food venues have a history of being driven by change, after all, food is fashion, and as such we see trends and seasonality and economic situations all influence food and beverage operations. Introducing new food and beverage products and revenue streams is now the norm for many food operators. This is not always a bad thing and can work to the benefit of the industry, as we all move to “Experience” based spending and pleasure-seeking activities.

AO Chef Series - The Eatery at the Glasshouse in the AO Dining Precinct
Image Via Broadsheet

Businesses driving new food and beverage products and promotions, offering reason for us to spend more money in restaurants, cafes and bars is as much about their desire to make up for lost revenue as it is for the benefit of the consumer, in their desire to move-on from the long lockdowns faced over 2020. The industry in 2021 can be seen as a showcase of new and wonderful products, services and price-promotions that have been developed and executed with professionalism across a range of food and beverage venues, in response to the Covid-19 impact on our industry sector. Impressive, innovative and intriguing range of products and services has in some cases moved beyond a fleeting fad into an industry focus and new economic direction. 

In the case of outdoor dining, pre-paid bookings, set price menus, new day part trading times, it is often said that once discovered, anything new or ground-breaking is old, but this may no longer be the case. Modern consumers are accepting of the new-normal around the range of food and hospitality products and services now offered, which appear to be gaining traction as we come to enjoy the transition in a post-Covid-19 society.

The George on Collins, half priced oysters and champagne
Image Via Concrete Playground

Today’s smart and informed customers demand great hospitality– delicious food and service excellence. The demand for leisure and experiential entertainment is massive as customers yearn to “buy pleasure” in the form of eating, drinking, socialising, leisure, entertainment and immersive past-times. 

CHI By Lotus, Barangaroo
Image Via Timeout

It is now a clear case of Pleasure versus Product. People have money to spend; and if the “pleasure” items they are seeking are perceived as experiential and capable of delivering happiness, they will seek them out and buy them gladly. 

It’s all about the customer – feed me, shop me, entertain me – the customers first principles don’t change, but the experiences operators offer must adapt.

Yoshii’s Omakase at Nobu, Barangaroo Sydney
Image Via Crown Sydney

Cashed up and ‘happiness-hungry’ humans living in growing cities and beyond are looking for positive experiences, great food, beverage and entertainment that will deliver pleasure, social engagement and positive memorable experiences time and time again.   

Operators’ innovations are endless in their efforts to drive sales and better serve their customers:

•  Improved menus and delivery services for food and beverage

•  Happy hour promotions on food and cocktails

• Curb side pick-up food orders 

• Design-driven Drive-Thru 

• Pre-opening pop up - sampling the tastes to come

• Streamlined menus for reduced seating duration e.g. 90-120 minutes

• Set price menus – guaranteeing minimum spend for food operators

• Improved alfresco COVID safe seating

• Early bird menus – Aperitivo cocktails and antipasto from 3pm - set price incentive and a new meal service time

400 Gradi, bringing back bottomless pizza promotion 
Image Via Broadsheet

The shift in the industry has been apparent and continues to evolve as we see many changes occurring locally and nationally that are reshaping the food and hospitality landscape. Forward thinking operators are reinvesting back into the industry that has served them well for so many years. With scarcity of international and domestic travel for the foreseeable future, customers are forced to dine locally and many operators are seeing this as an opportunity to launch their new business concepts and respond to the local demand.

On the local front-

Australian Venue Co. month long happy hour deal – 50% off your bill. 
Image Via Aus Venue Co

400 Gradi Bottomless pizza and drinks promotion.
Image Via 400 Gradi

Melbourne CBD poised for a flood of restaurant openings:

• Alejandra Saravia – Farmer’s Daughters  - CBD Melbourne 

• Chris Lucas, Martin Benn and Vicky Wild – Society – due to open April/May 2021 

• Karen Martini – Hero - all day restaurant café - ACMI fed square

• Marriot’s new W hotel – Lollo Restaurant - overseen by Adam D’Sylva

• W Hotel – Culprit Wine bar & Japanese restaurant Warabi opening soon. 

• HQ Group’s newest venture – 4 level hospitality venue on Lonsdale Street

• Out with the old, in with the new – The closure of Ezard’s making way for a Melbourne outpost of Sydney’s Nomad Restaurant

• Di Stasio Pizzeria – Ronny Di Stasio’s foray into Lygon Street

Alejandra Saravia, Farmer’s Daughters, CBD Melbourne 
Image Via Broadsheet

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Cover Image: Nick & Nora’s Melbourne
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