Upserve State of The Restaurant Industry Report Ebook

The Pass
T H E R E S TA U R A N T I N D U S T R Y | J A N 2 0 1 8
Upserve’s State of the Restaurant
Industry Report
2
Contents Introduction
Introduction 2
Things move fast in restaurants. Whether you’re a small
Restaurant Menu Trends 3
cafe, a fine dining establishment or a casual restaurant,
Restaurant Staff Turnover Trends 9
speed is something you’re used to.
Restaurant Table Turn Times Impact on Check Cost and Tips 15
Notes and Definition of Terms 19 Technology moves fast, too. New technologies are changing the way
restaurateurs and their staff interact with each other and with guests, from
rapid shifts in restaurant point of sale systems to restaurant analytics that
reveal hidden insights to improve staff performance, fine-tune menus and
grow margins.
But the speed of tech improvements can be difficult to keep pace with for
restaurant owners and operators, especially when a server is out sick, you
need to get a plumber in before the next shift and you’re dealing with a
mispick from the distributor.
That’s why here at Upserve, a provider of top restaurant POS, payments and
analytics software, we’re releasing our inaugural restaurant industry report.
Because we’re the choice of thousands of restaurants in every state of the
U.S. for restaurant POS, credit card processing and analytics, we were able to
review millions of transactions and derive insights on staff turnover, payments
and menu trends. Importantly, this isn’t survey data, but based on actual data
pulled from thousands of restaurants.
The findings are the result of an analysis of data pulled from thousands
of restaurants and millions of transactions across the U.S. In addition, we
performed a retroactive analysis of 2017 menu trends to see which would-be
hits actually lived up to their hype, and which ones fell flat.
Our goal is for restaurateurs to use this report as a data-backed resource

for the ever-evolving restaurant landscape.
The results include new, and often surprising, findings on hot-button labor
issues like employee turnover and tipping. Most importantly, the data are
helping drive actionable insights for restaurateurs and their staff.
U P S E R V E .C O M
3
Menu Item
Trends Reviewed
1. Amaro
2. Brisket Menu Item Trends Report
3. Cauliflower
4. Charcoal Finding food trends from the food fads?
5. Charcuterie
Restaurateurs are always trying to stay ahead of changing
6. Coconut
consumer tastes. But the secret sauce is knowing what’s hype
7. Coffee and what’s hot.
8. Edamame
Plenty of food trends were predicted for 2017. We selected menu
9. Empanadas items — from sorghum to kombucha — predicted to be among
10. Fermented the top food trends for 2017. Based on sales data collected from
11. Fire-Roasted nearly 3,000 restaurants across the U.S. from 2015 through 2017,
we measured the actual sales performance of each item, and
12. Frybread assigned each item a score.
13. Jackfruit
Rather than simply look at sales volume, which can be artificially
14. Kombucha
high or low, we developed a metric we call an Upserve
15. Koji Performance Score, or UP score. This metric takes an item’s
16. Mead sales volume and compares it against the sales volume across all
sales, which we believe is a better signal of lasting power among
17. Naan Pizza diners. The metric is within a range between 0 and 10, where a
18. Octopus higher number indicates stronger sales volume. A low UP score
indicates a low fraction of total sales for restaurants.
19. Pho
20. Poke Each item’s performance is measured and presented in charts
21. Porridge below, indicating which trends continue to fly and which
flopped. If an item fared well in 2017, we believe there is a higher
22. Sauerkraut likelihood of its future popularity in 2018, and might be a food
23. Sorghum trend that restaurants should consider adding to their menus.
24. Tacos
25. Tamales
26. Tataki
27. Tater Tots
28. Turmeric
29. Yogurt
As seen on RestaurantInsider.com: photo of a “Reanimator” including activated charcoal from

Cindy’s, a rooftop restaurant at the Chicago Athletic Association Hotel. Credit Nick Gerber.
4
Menu Item Performance Charts

1. Amaro 7.6
4. Charcoal 6.5
Current UP Score: 7.44 7.475

Add to the menu? Maybe Add to the menu? Yes
While this Italian liqueur trended slightly 7.35

This lump of coal in the stocking has a 5.25
upwards in 2017, we saw essentially a flat smaller share of sales, but menu items
growth compared to years prior. It might 7.225 involving charcoal (including cocktails) have 4.625
have predicted to be hot, but is more likely been trending up consistently. Charcoal
to plod along. 7.1
menu items from 2015 to 2017 were way up, 4
2015 2016 2017 signaling continued demand in 2018. 2015 2016 2017
2. Brisket 9
5. Charcuterie
7.2
Add to the menu? Yes Current UP Score: 7.14 7.05
Add to the menu? Yes

Carnivores love this cut. Brisket has grown
8.25
6.9
in demand year over year since 2015. It Charcuterie has been trending up in
started off very strong in 2017 and indicates 7.875 popularity as a menu item since 2015. While
a strong popularity that will likely last there was a dip at the end of 2017, it’s a 6.75
into 2018. 7.5

consistent seller that will likely stay a go-to
2015 2016 2017 for diners. 6.6
2015 2016 2017
8.25
3. Cauliflower 7.85
6. Coconut
Current UP Score: 8.02 8
7.8
Add to the menu? Yes Current UP Score: 7.80
7.75
Cauliflower sales continued to sprout 7.75
through 2017 and have grown consistently Coconut tends to have bumpy years with
since 2015. It’s trend line shows promise for 7.5
understandably higher peaks around the 7.7
continued demand in 2018. spring and summer months. It’s year to year
7.25 trend line is largely flat, but it remained
7.65
2015 2016 2017
popular in 2017. 2015 2016 2017
5

CONTI
7. Coffee 8.5
10. Fermented
2

Add to the menu? Yes Add to the menu? No
You probably could’ve figured this one 8.375

Fermented menu items didn’t even appear 1.7
out even before your first cup of joe, but on the radars until April 2016, and since
people love coffee, so keep it coming. And 8.313 then, the peak score hasn’t even ever 1.55
don’t think it will ever go lukewarm: This broken 3. While the trendline indicates the
perennial favorite drink has been growing possibility of slightly more demand in 2018,
8.25 1.4
incrementally in popularity year over year, 2015 2016 2017
there’s a lot of doubt it will ever be a hit. 2016 2017
with larger sales in the winter. So when the ** No documented “fermented” item names until 4/4/16
temps drop, brew another pot.
11. Fire-Roasted 9.4
8. Edamame 7.1 Current UP Score: 8.92 9.275

Add to the menu? Maybe
Current UP Score: 6.98
7.025
Add to the menu? Yes Although fire-roasted menu items for 9.15
2017 have a high average score of 8.92 —

Although at certain points during 2017, 6.95
indicating a solid level of popularity on a
9.025
edamame’s popularity fell behind the menu — that number has been trending
previous year, its average score was higher 6.875 downward over the past two years. While
8.9
than the two years prior, and its overall popular, it will probably flatten out in the 2015 2016 2017
trendline indicates a likely steady demand coming years.
in 2018. 6.8
2015 2016 2017
5.5
7
12. Frybread
9. Empanadas 4.875
6.85
Current UP Score: 6.46 Add to the menu? No
Add to the menu? Maybe 4.25
6.7
At its peak popularity in 2015, frybread, a flat
Although empanadas saw solid sales — it’s bread deep-fried in oil, saw a high score in 3.625
been trending down year over year. It’s not 6.55 the 5 range, but since then it’s been steadily
likely to make a resurgence in 2018. declining and won’t likely sizzle this year.
3
6.4 2015 2016 2017
2015 2016 2017
** No documented “fermented” item names until 4/4/15
6

CONTI
13. Jackfruit 4
16. Mead 6.5
Current UP Score: 3.84 Current UP Score: 6.33 6.25

3
Add to the menu? Yes Add to the menu? Yes
Thank the vegans! Jackfruit, a tree-borne 2 Restaurant Insider first wrote about the fact 6
fruit billed as a “healthy and sustainable that mead is experiencing a renaissance in

vegan meat replacement” saw a 131 percent 1
August 2017. While this honey-hyped drink 5.75
growth in popularity in 2017. This fruit is saw a dip between 2015 and 2016, it trended
flowering and that’s likely to continue strongly in 2017. It may be worth a sip.
this year. 0
2015 2016 2017
5.5
2015 2016 2017
** No documented “jackfruit” item names until 10/4/15
17. Naan Pizza

3.2
14. Kombucha 6.5

Add to the menu? No
Not only did the average score drop in 2016 2.8
Kombucha, or fermented tea, had a strong 5.5 for naan pizza, it didn’t even appear as a
2017, jumping from prior year sales. menu item in our data for 2017, meaning this 2.6
However, the trendline began creeping past trend may be a naan-starter this year.
5
down at the end of the year, meaning this 2.4
trend might be losing some of it’s fizz. 2015 2016 2017
4.5
** No documented “Naan Pizza” item names until 10/4/15
2015 2016 2017
and in 2017
18. Octopus
15. Koji 3.4 8.2

Current UP Score: 2.89 3.15 Add to the menu? Maybe 8
Octopus saw steady growth in popularity in
Koji, the mold that makes miso, sake and 2.9 7.8
2015, dipped in 2016 and ended the year up
soy sauce possible, wasn’t on the radar until
in 2017. Despite a drop in sales at the end
April of 2016 when it started popping up on 2.65
of the year (but really, who wants octopus 7.6
menus and checks. This menu item saw a

with their figgy pudding?), its average
jump in popularity in 2017, which means it
2.4 score indicates a healthy demand that may 7.4
may be on the cusp of getting bigger. But, 2016 2017 continue in 2018. 2015 2016 2017
for now, it remains a more marginal share ** No documented “koji” item names until 4/4/16
of sales.
7

CONTI
19. Pho 7.5

22. Sauerkraut 3.9

3.775
Pho sales grew year over year since 2015 and 6.5
Although sauerkraut sales grew slightly 3.65
it had a very strong 2017 with an average year over year between 2015 and 2017,
score of 7.28. The trendline indicates that 6 its popularity took a steep decline at the 3.525
this trend is pho’ real. end of 2017, and its average score of 3.75
demonstrates weak demand overall.
5.5 3.4
2015 2016 2017 2015 2016 2017
20. Poke 8.6
23. Sorghum 3.75

Add to the menu? Maybe Current UP Score: 3.29 3.375
Add to the menu? No
While poke started the year off strong, sales 8.3
declined over 2017, and its average score of Although the trend line for sorghum in 2017 3
8.15 fell short of its 2015 score 8.42. Poke is 8.15 remained fairly steady, a downturn at the
clearly still a strong seller, but the hype may end of the year indicates a flattening in 2.625
be on the decline. overall popularity for this grain.
8
2015 2016 2017
2.25
2015 2016 2017
21. Porridge 4.6 24. Tacos 9.95

Add to the menu? Maybe 4.3 Add to the menu? Yes
Porridge experienced a steadily average 4

Tacos remain perennially popular with 9.85
year in 2017, and though its score of 4.5 average scores never dropping below 9.4.
surpassed 2016 levels overall, the second (Though summer months are their biggest 9.8
half of the year dipped below the prior year’s 3.7
moment.) Even though the 2017 average
popularity levels on numerous occasions, score for tacos dropped slightly, it’s clear
indicating an uncertain outlook for 2018. 3.4 that this menu item is likely to stay in 9.75
2015 2016 2017
2015 2016 2017
demand in 2018.
8

CONTI
25. Tamales
6.2
28. Turmeric 3.8

6.05
Tamales’ popularity took a slight dive in 5.9 Turmeric may have had a promising moment 3.4
2016, but started to rebound in the past year. early on in 2017, but even at peak popularity,
Its end of year performance suggests it still 5.75 it never got above 3.7. It saw a big downturn 3.2
has some spice in 2018. in the second half of last year indicating this
spice should be shelved for 2018.
5.6 3
2015 2016 2017 2016 2017
** No documented “Turmeric” item names until 10/4/16
26. Tataki 6
29. Yogurt 6.6
Current UP Score: 5.83 5.75 Current UP Score: 6.45

Add to the menu? Maybe 6.3
Tataki had a strong start to 2017, but sales 5.5
Yogurt has seen continued growth in 6
fell below 2016 levels at numerous points
popularity since 2015, and ended 2017 with
throughout the year. Even so, this seared 5.25
a strong score of 6.48. However, unlike
meat or fish menu item ended up with a 5.7
in years past, yogurt popularity took a
very respectable average score, indicating
5 downturn after July, and never recovered.
its overall above-average popularity as a 5.4
2015 2016 2017
This trend may indicate a mainstay for many
menu item. 2015 2016 2017
menus, but not necessarily an exciting
addition in 2018.
6.5
27. Tater Tots

6.25
The lowly tater tot has seen steady growth in
popularity since 2015 and ended 2017 with
a higher score in 2017 than the previous two 6.125
years. This spud is a stud.

6
2015 2016 2017
9
Restaurant Staff
Turnover Trends
Employee turnover (or churn) is a constant concern
for any small business.
But in the restaurant industry it is like a revolving door. The turnover rate
in the hospitality sector exceeded 70% for the second consecutive year,
according to data from the Bureau of Labor Statistics’ Job Openings and
Labor Turnover program. Many cities have noted a weakened restaurant
talent pool, particularly among chefs.
This level of turnover is detrimental to restaurant success as both front of

house and back of house staff are key ingredients to delivering memorable
hospitality. High employee turnover creates unwelcome distractions for
owners and managers, neverending recruitment, the costs of training and
ramping up employees, and a loss of institutional memory held by long-
tenured employees.
According to data pulled over the July through September 2017 period,
restaurateurs’ turnover challenges continued. But there was some
intriguing findings in the data. For instance, an employee’s position was a
greater signal of turnover than region or even base pay. Unsurprisingly,
roles with greater responsibility (management, servers, kitchen staff) saw
lower relative turnover than more transient positions (bussers and runners,
catering staff, cashiers).
Restaurateurs shouldn’t expect much relief in the kitchen or on the floor,

though. While servers and kitchen staff were among the lowest turnover
rates (28%), that remains a troubling churn rate for most restaurants in a
tight labor market.
Key Takeaways
Weekly turnover rates increased from July to September on a weekly basis. “The lowest turnover was among
• Seasonality is the most likely culprit for this employee churn as many
seasonal workers hired in the summer months, especially high school
bar staff at 25% and managers at
and college students, return to school around September. Turnover in Q3 23%. These trends were relatively
increased 2.18% over Q2, and was 5.3% greater than the full year average.
An estimated 30% percent of seasonal restaurant jobs are occupied by consistent across regions.”
students, according to Pew Research.
An employee’s position in the restaurant is a greater signal of turnover

risk than region.
or no minimum wage rates. This gap will likely grow in 2018 as many of
• The restaurant’s service area does appear to have an impact on turnover those states and/or municipalities in the West and Northeast passed new
rates. Turnover was highest in the Northeast and Midwest. In the example minimum wage hikes or had automated increases start at the beginning
of a cashier or counter service professional, turnover was 30% higher in of the year.
the Midwest than in the West, for instance.
• However, turnover was higher by position than by region. The highest Finding and Keeping Kitchen Staff is a Priority for Restaurants
turnover was among roles like counter service/cashier (36%), support staff in Every Region
like bussers, dishwashers and runners (34%), and among “other” roles
(32%) which encompass functions such as catering staff, sommeliers, etc. • But the gap in base pay rates between positions revealed just how prized
The lowest turnover was among bar staff at 25% and managers at 23%. kitchen staff are in a tight labor market. The gap in base pay for kitchen
These trends were relatively consistent across regions. staff between the lowest average region (South) at $11.33 compared to
the highest paying region (West) at $12.67 was only a difference of $1.34
an hour for kitchen staff. This gap is smaller than even for management
Pay rates were highest in the West and lowest in the South, and that gap staff, where the gap between the lowest and highest paying region was
is likely to increase in 2018. $2.85. This suggests that finding and keeping kitchen staff is a priority for
• Base pay rates (not including tips or overtime) were highest for each restaurants in every region, especially where qualified talent is harder to
employee role in the West and lowest in the South. The average bar staff find.
employee made a $4.67 per hour in the South compared to $10.50 in the
West, for example. The pay gaps in hourly rate align with regions where Base pay rate has little impact on turnover.
states and/or municipalities have imposed higher minimum wage rates.
Many of the states and/or municipalities in the West and Northeast region • You want to keep a valued employee, give them a raise, right?
(and some in the midwest) have significantly higher minimum wage Surprisingly, there’s little signs of correlation between a higher base pay
rates, while several states that make up the South region have smaller and employee turnover. In all seven categories of staff measured, there
was little difference in base pay between staff still employed at the end of
September and those who had quit or were let go.
11
Good help is hard to find, Turnover by Region
even harder to keep Bar Counter Kitchen Management Other Server Support
40%
35%
Overall Turnover Rate

30%
38%
25%
33% 20%
Overall turnover rate
MIDWEST NORTHEAST SOUTH WEST
Employee turnover was relatively consistent from region to region, with the
30%
lowest being seen in the West at 27% and nearly 32% in the Northeast. (The
average was 30% in both the South and Midwest.)
The greater signal of employee turnover was the position of the employee. As
26% expected, roles such as cashier, bussers, runners, dishwashers and related
support roles had high turnover. But while servers and kitchen staff showed a
lower turnover rate than a cashier or busser, they still both hit 28%, signaling
keeping the main workforce of the front and back of house is a continual
challenge for owners and managers.
23%
Meanwhile, bar staff and managers seemed happiest to stay put with a
BAR COUNTER KITCHEN MANAGEMENT OTHER SERVER SUPPORT
turnover rate of 25% and 24%, respectively.
12
Mind the gap Pay rate by role, grouped by region

There are wide gaps between base pay between regions that clearly reflect
the minimum wage requirements of the states and municipalities that make Bar Counter Kitchen Management Other Server Support
up those regions. The cities and states that made up the South were the
lowest paying region, which correlates to the minimum wage requirements
$15.00
(or lack of) in those locales. While in the West and Northeast, where minimum
wage is often higher, the rates tended to be higher.
This gap will likely widen in 2018 as many of the regions with already $11.25
higher minimum wage regulations, enacted increases to start in the new
year. Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, and
Ohio increased minimum wage
automatically based on cost of living
increases, which are typically more
“But whether in the South, Northeast, Midwest $7.50
gradual increases. Arizona, California, or the West, kitchen staff base pay tended to
Colorado, Hawaii, Maine, Michigan, be higher and the gap between regions smaller,
New York, Rhode Island, Vermont and $3.75
Washington increased minimum wage indicating that the struggle to find and retain
by legislation or ballot, which usually quality kitchen crews is a nationwide pain point.”
correspond to larger spikes.
$0.00
Importantly, a statewide increase in base pay rates is not the only factor.
MIDWEST NORTHEAST SOUTH WEST
Cities within the regions often enact their own pay hikes, which can have
a major impact on the overall data when there’s a heavy concentration
of restaurants. An example would be in Minneapolis, a Midwest hot spot
for dining, which has been heatedly debating a citywide increase of the Base pay just an appetizer
minimum wage to $15 per hour.
Little difference was found between employee turnover and base pay rates.
Also worth noting is the adjustment for pay by position depending on region. While pay was slightly higher for most employees still on the job at the end
In the West, for instance, the base pay rate from cashier to manager is more of September than those who left or were let go, it was a nominal increase in
gradual as the floor for pay is higher in many of the locations included in hourly rate.
that region, while in the South a server will make far less than kitchen staff
with the expectation that tips will make up the difference. But whether in the
South, Northeast, Midwest or the West, kitchen staff base pay tended to be
higher and the gap between regions smaller, indicating that the struggle to
find and retain quality kitchen crews is a nationwide pain point.
13
This suggests that other factors, such as ability to advance in career or State Minimum Wage Levels
happiness on the job, likely have more to do with retaining an employee than
the hourly pay rate. However, for front of house workers, like servers, the role State State Minimum Future State Annual Automatic
of tipping will often play a role as well since it greatly impacts their overall Wage Level Legislation/Ballot Increases Indexed to Cost
take-home pay more than an hourly rate at most restaurants. Increases of Living?
Meanwhile, bar staff and managers seemed happiest to stay put with a Alabama None None No
turnover rate of 25% and 24%, respectively. Alaska $9.84 None Yes
Arizona $10.50 $11.00 - 2019 Yes, beginning in 2021
$12:00 - 2020
Hourly rate for active vs churned employees
Arkansas $8.50 None No
California $11.00 $12.00 - 2019 Yes, beginning in 2023
Bar Counter Kitchen Management Other Server Support
$13.00 - 2020
$14.00 - 2021
$13.00 $15.00 - 2022
Colorado $10.20 $11.10 - 2019 Yes, beginning 2021
$12.00 - 2020
Connecticut $10.10 None No
$9.75
Delaware $8.25 None No
D.C. $12.50 $13.25 - July 2018 Yes, beginning in 2021
$14.00 - July 2019
$15.00 - July 2020
$6.50
Florida $8.25 None Yes
Georgia $5.15 None No
Hawaii $10.10 None No
$3.25 Idaho $7.25 None No
Illinois $8.25 None No
Indiana $7.25 None No
$0.00
Iowa $7.25 None No
Kansas $7.25 None No
ACTIVE INACTIVE
Kentucky $7.25 None No
Louisiana None None No
“Meanwhile, bar staff and managers seemed happiest to stay Maine $10.00 $11.00 - 2019 Yes, beginning in 2021
$12.00 - 2020
put with a turnover rate of 25% and 24%, respectively.”
Maryland $9.25 $10.10 - July 2018 No
14
State State Minimum Future State Annual Automatic State State Minimum Future State Annual Automatic
Wage Level Legislation/Ballot Increases Indexed to Cost Wage Level Legislation/Ballot Increases Indexed to Cost
Increases of Living? Increases of Living?
Massachusetts $11.00 None No Oklahoma $7.25 employers None No

Michigan $9.25 None Yes, beginning in 2019 of ten or more full
time employees at
Minnesota $9.50 when None Yes
any one location
annual sales above
and employers
$500,000/$7.75
with annual
when annual sales
gross sales over
below $500,000
$100,000/$2.00 all
Mississippi None None No others
Missouri $7.85 None Yes Oregon $10.25 $10.75 - July 2018 Yes, beginning in 2023
Montana $8.15/$4.00 for None Yes $11.25 - July 2019
businesses with
$12.00 - July 2020
annual sales below
$110,000 $12.75 - July 2021
Nebraska $9.00 None No $13.50 - July 2022
Nevada $8.25 without health None Yes Pennsylvania $7.25 None No
benefits/$7.25 with Rhode Island $10.10 $10.50 - Jan. 2019 No
health benefits South Carolina None None No
New Hampshire None None No South Dakota $8.85 None Yes
New Jersey $8.60 None Yes Tennessee None None No
New Mexico $7.50 None No Texas $7.25 None No
New York $10.40 $11.10 - Dec. 2018 No Utah $7.25 None No
$11.80 - Dec. 2019
Vermont $10.50 None Yes, beginning in 2019
$12.50 - Dec. 2020
Virginia $7.25 None No
North Carolina $7.25 None No
Washington $11.50 $12.00 - Jan. 2019
North Dakota $7.25 None No
$13.50 - Jan. 2020
Ohio $8.30/$7.25 for None Yes
businesses with West Virginia $8.75 None No
annual sales Wisconsin $7.25 None No
$299,000 and below
Wyoming $5.15 None No
Note that some states have lower minimum wage rates for tipped employees.
Source: National Conference of State Legislatures
15
Restaurant Table Turn Times

Impact on Check Cost and Tips
Tipping was a hot issue in the restaurant industry in 2017. Some restaurant
owners rebelled against the traditional tipping model, and others saw a
decline in tips, especially those operating in states where the minimum wage
increased. With already thin profit margins, many restaurant owners say they
simply cannot afford to increase workers’ wages.
Additionally, in a move that set off alarm bells among restaurant employee
advocates, the U.S. Department of Labor sought a rollback of Obama-era
tip-pooling regulations that prevent traditionally untipped workers, such
as cooks and dishwashers, from being included in tip pools. The new rules
would allow employers to collect and distribute tips at their discretion, as
long as employees receive the equivalent of $7.25 per hour, the full federal
minimum wage.
“Data revealed that hitting the right turn It’s safe to assume that issues
surrounding tipping will
time for tables can have a positive impact continue to stir up debate in
for both the restaurant’s bottom line and 2018 for restaurant owners
looking to boost revenue,
tipped employees’ wallets.” and for the vast majority of
servers who still rely on tips for
income. As finding the balance between increasing margins while ensuring
all staff receive fair pay was hard to find, data revealed that hitting the right
turn time for tables can have a positive impact for both the restaurant’s
bottom line and tipped employees’ wallets.
16
Key Takeaways The Costs of Camping

Aiming for a 40 minute table turnover time may help increase total All restaurant managers and servers have dealt with campers — those
revenue and tips. guests who perch at a table and never seem to leave. The tradeoff is higher
checks, right?
• Upserve data reveal that across all regions, the average tip increased with
time spent at the table, up until about the 40-50 minute mark. Likewise,
Not exactly. While average check size grew regularly for every ten minutes
meal cost tended to flatline around 30-40 minutes at the table.
at the table, topping out between 40 and 60 minutes, it began to flatten out
Campers are responsible for bigger overall checks and tips, but they’re not afterwards. Additional large spikes occurred at 80 minutes and 100 minutes,
always worth the wait. but the actual revenue for each minute at the table began to decline. Longer
times at a table mean higher checks, but less productivity from the staff.
• Guests who spend a lot of time at tables can mean an increase in average
check size and even average tips, but it’s not a straight up and to the right
correlation. While the average check grew from $88.39 at 40 minutes to
$123.45 at 80 minutes (and another spike was seen at 100 minutes), the
Average Check Cost Over Turntime
amount of revenue per minute the restaurant collects drops from $2.21
per minute to $1.54 per minute between the 40- and 80-minute mark. $186.60
$180.00
$200
• The number of checks per minutes at the table also sputters out after
40 minutes, suggesting that campers can be costly.
$150 $123.45
Similarly, long times at tables don’t necessarily mean a big jump in tips. $112.10
At the 40- to 50-minute mark, gratuities hit a tipping point. $94.13 $96.21 $94.06
$84.90 $88.39
• While the average tip is around $15, the tip amount as a percentage of $100
$70.72
the overall check begins to drop. At 110 minutes, the average tip is only
$3 more than it is at 50 minutes, and the percentage of the check is just $45.62
under 10%. A server working that table may wish they had worked more $50 $23.17
tables at half the time by then.
Tips were highest in the Northeast. $0

0 10 20 30 40 50 60 70 80 90 100 110
• The average tip was highest in the Northeast at $11.17, representing 16% of
check totals on average. But that could be a wash against the West. In that
region, the average tip was $8.41, 15.5% of the total check. Turntime in minutes
• But with the average server base pay rate at $10.42 in the West compared
to $7.42 in the Northeast, the actual earning potential depends heavily on
the ability to productively serve and upsell tables.
17
Additionally, tips saw little benefit from lingering guests. While average tip
size continued to grow up to the 50-minute mark, it then flattens out until the
80-minute mark. But as the time passes, the percentage of the check the tip Number of Checks Over Turntime, by Region
represents decreases, indicating price-shocked parties or potentially greater
use of automatic gratuities. So while the gratuity is highest at 110 minutes,
it’s much smaller percentage of the final bill. And that’s time the server could
be spending earning multiple tips off from more tables.
Midwest Northeast South West
Thankfully, turn times above 60 minutes represent a small percentage of
total checks. 60000
Tip as a % of Check Cost Over Turntime

Turntime in minutes 45000
20%
16.6% 16.9% 16.8% 16.4%

15.7% 15.7%
16.25% 15% 30000
13.1% 13.2%
10.5%
12.5%
9.9%
15000
7.7%
8.75%
5% 0
0 10 20 30 40 50 60 70 80 90 100 110 0 10 20 30 40 50 60 70 80 90 100 110
Turntime in minutes Turntime in minutes
18
Tips don’t move up much by region Average Tip by Region

Tips are a livelihood for much of front of house staff. How much you collect on
average and the percentage of check doesn’t move up or down substantially
Northeast West Midwest South
by region. The most significant shift would be in the Northeast, where the
average check was highest. 13.00
Needless to say, Northeast diners tend to leave higher tips!
However, when calculating how much money tipped employees actually

pocket will vary widely based on region. While the average tip in the 11.50
Northeast was $11.17 versus $8.41 in the West, many states in the West have
higher hourly pay rates even for tipped workers.
When considering how to compensate your front of house staff, you’ll need
to consider your average check size, hourly pay and what percentage your
Tips, $
10.00
guests tend to tip.
Region Average Tip Average Check Size Average Tip as
Percentage of 8.50
Check
Northeast $11.17 $68.80 16.24%
7.00
West $8.41 $54.19 15.51% 7/1 7/16 7/31 8/15 8/30 9/14 9/29
Midwest $9.19 $61.20 15.01%
South $8.37 $51.46 16.27%
19
Notes and Definition of Terms Regions Turnover Roles

Upserve Data Science used the regional definitions as
“Age” = Average age (days) employed (Based on timesheet). determined by the Federal Government
Role Definition
Upserve reviewed timesheet data in our database. For every
employee we determined “age” - meaning the first time they Bar Any role with “bar”
clocked in to Q3. An employee who didn’t clock in for 3 Region Number of States
states Server Front-of-house
weeks is considered inactive; an employee who clocked in at
least once a week is considered active. Cook Any role on the line
• Sorted by region active and inactive per week number
Midwest 12 Iowa, Illinois, Indiana, Kansas,
• Week column associates to week number in a calendar Support Busser, runner, hostess
Michigan, Minnesota, Missouri,
year (i.e Week 30 = July 23-July 29). North Dakota, Nebraska, Ohio, Cashier, Counter POS (mainly quickserve)
South Dakota, Wisconsin
Base Pay or Hourly Pay = The hourly rate paid to a Management Any role with “bar” + Admin control
specified employee.
Other Roles that don’t have “bar” or
Northeast 9 Connecticut, Massachusetts, “serve/service” in the title, such as
“Pay” = In Dollars Maine, New Hampshire, New “Sommelier” or “Caterer”
Jersey, New York, Pennsylvania,
“Turnover Rate” = Total number of employees who left/Total Rhode Island, Vermont
number of employees. Turnover rate is quarterly - grand Upserve Performance Score (UPS)
turnover rate - how many we saw in Q3 and how many
churned - roughly 30%. The annual turnover rate is 70%.
South 17 Alabama, Arkansas, District of To measure a menu item’s performance over time, rather
For each week in Q3 (weeks 26-39), Upserve provided the Columbia, Delaware, Florida, than simply look at sales volume, which can be artificially
weekly turnover of each role in a region. Also provided pay Georgia, Kentucky, Louisiana, high or low, we developed a metric we call an Upserve
rate for each role. Maryland, Mississippi, North Performance Score or UP score. This metric takes an item’s
Carolina, Oklahoma, South
sales volume and compares it against the sales volume
Carolina, Tennessee, Texas,
Virginia, West Virginia across all sales, which we believe is a better signal of lasting
power among diners. The metric is within a range between
0 and 10, where a higher number indicates stronger sales
West 13 Alaska, Arizona, California,
volume. A low UP score indicates a low fraction of total sales
Colorado, Hawaii, Idaho, for restaurants.
Montana, New Mexico, Nevada,
Oregon, Utah, Washington, Methodology: A menu item’s UPS value is determined by the
Wyoming log of the detrended normalized item sales [item sales/total
sales] which gets detrended via linear regression. The final
score is the log of the item sales.
Thousands of restaurants turn
to Breadcrumb POS by Upserve
for insights on how to deliver
remarkable hospitality.
Restaurant POS software should be intuitive, and
give you the insight and data you need, so you can
focus on your guests, not your technology. Schedule
a 15-minute demo and see how Upserve can give you
everything you need.
REQUEST A DEMO
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The Pass

Our goal is for restaurateurs to use this report as a data-backed resource

As seen on RestaurantInsider.com: photo of a “Reanimator” including activated charcoal from

Menu Item Performance Charts

Current UP Score: 7.44 7.475

While this Italian liqueur trended slightly 7.35

Current UP Score: 8.94 8.625

Add to the menu? Yes Current UP Score: 7.14 7.05

Add to the menu? Yes

into 2018. 7.5

Menu Item Performance Charts

Current UP Score: 8.44 8.438

You probably could’ve figured this one 8.375

temps drop, brew another pot.

11. Fire-Roasted 9.4

8. Edamame 7.1 Current UP Score: 8.92 9.275

2017 have a high average score of 8.92 —

Menu Item Performance Charts

Current UP Score: 3.84 Current UP Score: 6.33 6.25

fruit billed as a “healthy and sustainable that mead is experiencing a renaissance in

** No documented “jackfruit” item names until 10/4/15

17. Naan Pizza

14. Kombucha 6.5

Current UP Score: 2.49 3

Current UP Score: 8.06

menus and checks. This menu item saw a

Menu Item Performance Charts

19. Pho 7.5

Current UP Score: 7.28 7

20. Poke 8.6

23. Sorghum 3.75

Current UP Score: 8.20 8.45

21. Porridge 4.6 24. Tacos 9.95

Current UP Score: 4.45 Current UP Score: 9.81 9.9

Porridge experienced a steadily average 4

Menu Item Performance Charts

Current UP Score: 5.91 Current UP Score: 3.19 3.6

** No documented “Turmeric” item names until 10/4/16

Current UP Score: 5.83 5.75 Current UP Score: 6.45

Add to the menu? Yes

years. This spud is a stud.

This level of turnover is detrimental to restaurant success as both front of

Restaurateurs shouldn’t expect much relief in the kitchen or on the floor,

An employee’s position in the restaurant is a greater signal of turnover

Good help is hard to find, Turnover by Region

Overall Turnover Rate

MIDWEST NORTHEAST SOUTH WEST

Mind the gap Pay rate by role, grouped by region

Massachusetts $11.00 None No Oklahoma $7.25 employers None No

Restaurant Table Turn Times

Key Takeaways The Costs of Camping

Tips were highest in the Northeast. $0

Tip as a % of Check Cost Over Turntime

16.6% 16.9% 16.8% 16.4%

Turntime in minutes Turntime in minutes

Tips don’t move up much by region Average Tip by Region

Needless to say, Northeast diners tend to leave higher tips!

However, when calculating how much money tipped employees actually

Region Average Tip Average Check Size Average Tip as

Northeast $11.17 $68.80 16.24%

Midwest $9.19 $61.20 15.01%

South $8.37 $51.46 16.27%