Inside the Restaurant of the Future / Ben Calleja (LIVIT) speaks at RestaurantSpaces
Summary
TLDRThe speaker from Livid, a company known for restaurant design, discusses their global expansion and insights into the future of the industry. They share their innovative approach to creating a fine-dining experience at fast-casual prices, emphasizing operational efficiency, technology, and staff flexibility. The presentation highlights their lab store in downtown LA, which won 'Best Restaurant Design of the Year', and explores how they achieve high throughput, efficient labor, and a frictionless customer experience through technology and design.
Takeaways
- 🌐 Livid is a global restaurant design company with a presence in 46 countries and an annual opening rate of around 1000 restaurants.
- 💡 They focus on operational efficiency and technology to disrupt the industry, aiming to understand consumer trends across markets.
- 💰 Coming from Stockholm, where they pay a high minimum wage, Livid has solutions to address challenges related to increasing labor costs.
- 🏆 They have learned from various industry players and are now focusing on creating an experience that is both convenient and aspirational.
- 🍽️ Livid's concept combines the efficiency of fast food with the ambiance of fine dining, aiming for high throughput and transaction capacity.
- 🛠️ Their latest store in Sweden is a 3500 square feet space with 200 seats, showcasing a reduced footprint and innovative design.
- 👨🍳 They hire team members with no prior restaurant experience, emphasizing operational efficiency and staff flexibility through cross-training.
- 📱 The company is tech-driven, leveraging technology to enhance the dining experience and operational efficiency.
- 🏆 Their US lab store in downtown LA has won the 'Best Restaurant Design of the Year' award, showcasing their global sourcing and design capabilities.
- 📈 Livid measures and tracks various aspects of the restaurant experience in real-time, using data to optimize guest experience and operational efficiency.
- 🔮 They experiment with different elements like music, scent, and lighting to enhance the dining experience and influence customer behavior.
Q & A
What is the main purpose of the session described in the transcript?
-The main purpose of the session is to share insights and learnings with the attendees, hoping that they can apply these to their operations or brands.
In what countries is the company mentioned in the transcript currently operating?
-The company is operating in 46 countries.
How many restaurants does the company open per year?
-The company opens roughly a thousand restaurants per year.
What is the minimum wage in Stockholm, as mentioned in the transcript?
-The minimum wage in Stockholm is $23.
What is the company's approach to restaurant design and operations?
-The company focuses on operational efficiency, technology, and disruptive innovation in the restaurant industry, aiming to create a lifestyle space that is both aspirational and affordable.
What was the concept behind the new restaurant model discussed in the transcript?
-The concept is to combine the efficiency and affordability of fast food with the experience and environment of fine dining, without compromising on quality.
How does the company ensure operational efficiency in their restaurants?
-The company ensures operational efficiency by hiring team members with no prior restaurant experience, cross-training them on all stations, and relying heavily on technology.
What is the significance of the '2.0 lab' mentioned in the transcript?
-The '2.0 lab' is an advanced restaurant concept that the company has implemented, focusing on further technological integration and efficiency improvements.
What is the average capital expenditure for the restaurant mentioned in the transcript?
-The average capital expenditure for the restaurant is between three and three point two million dollars.
How does the company leverage technology to enhance the guest experience?
-The company uses technology such as sensors, real-time tracking, and geofencing to create a frictionless and personalized dining experience for guests.
What is the company's strategy for retaining talent in their restaurants?
-The company's strategy for retaining talent includes listening to employees, creating brand style guides or dress codes that allow for self-expression, and providing a cool and engaging work environment.
Outlines
🌟 Innovative Restaurant Design and Operations
The speaker discusses the company's expertise in restaurant design and its focus on operations, technology, and industry disruption. With a global presence in 46 countries and an annual opening of a thousand restaurants, the company leverages its extensive market knowledge to understand consumer trends and challenges. Originating from Stockholm, where a high minimum wage is the norm, the company has developed solutions to tackle such issues. The speaker emphasizes the importance of creating an experience that balances affordability with a sense of belonging, aspiration, and operational efficiency. The company's research has led to a new concept that combines the efficiency of fast food with the ambiance of fine dining, aiming for high throughput and transaction capacity with a unique hiring strategy focusing on operational efficiency and tech integration.
🏗️ Disruptive Construction and Design Strategies
The speaker details the innovative construction and design strategies employed by the company, which include sourcing materials directly from factories worldwide and building off-site. This approach significantly reduces costs, as exemplified by the company's restaurant in downtown LA, which was built for 1.5 million dollars, half the estimated industry standard. The restaurant's design elements, such as a unique restroom, have become popular on social media, attracting attention without any marketing budget. The concept aims to cater to different times of the day, from breakfast to late-night lounge, and has been recognized as a top event space in downtown LA. The old jewelry store's transformation into a modern restaurant with a speakeasy in the former vault adds to the establishment's unique appeal.
🍽️ Streamlined Menu and Kitchen Operations
The speaker outlines the restaurant's simple yet effective menu, consisting of share balls, bowls, salads, and pizzas, with a significant portion being vegetarian or vegan. The focus is on affordability and efficiency, with the highest-priced item being a black truffle pizza at $16. The kitchen operates without traditional chefs, relying on an assembly line process designed by a Michelin-star chef. The front-of-house operations are equally streamlined, with a strong emphasis on presentation and storytelling through the drinks menu, which is designed to create visual appeal and social media engagement. The back-of-house is minimal, with the entire kitchen process relying on a single piece of equipment, reflecting the company's commitment to efficiency and innovation.
📊 Data-Driven Insights and Employee Engagement
The speaker discusses the data-driven approach to understanding and enhancing the guest experience. The company measures everything from dwell time to customer flow, using technology to track and analyze customer behavior in real-time. This data is used to optimize the dining experience, removing friction points, and increasing table turnover. The speaker also highlights the company's success in employee engagement, with a focus on hiring for attitude and providing cross-training opportunities. The use of technology extends to the employee training process, which is conducted through an app, and a unique approach to uniforms, allowing staff to express their personal style within a brand guide, resulting in high retention rates and employee pride.
📈 Future Trends and Conclusion
In the final paragraph, the speaker provides a quick overview of the company's approach to future trends, emphasizing the importance of understanding and leveraging technology, music, scent, and other sensory elements to enhance the dining experience. The speaker also mentions a trend report available for download, which summarizes the company's global learnings and insights. The presentation concludes with an invitation for further discussion and questions, highlighting the company's commitment to innovation and industry leadership.
Mindmap
Keywords
💡Disruption
💡Operational Efficiency
💡Technology Integration
💡Experience Design
💡Labor Market Challenges
💡Global Expansion
💡Menu Innovation
💡Customer Engagement
💡Social Media Marketing
💡Sustainability
💡Branding and Packaging
Highlights
Livid is known for restaurant design but focuses on operations and technology to disrupt the industry.
The company operates in 46 countries and opens around a thousand restaurants per year.
Livid's insights come from a global perspective, understanding consumer trends across six continents.
The speaker is from Stockholm, where a high minimum wage has led to innovative solutions for labor challenges.
Livid has learned from various industry players, focusing on consumer experience and disruption.
Consumers seek a place that serves as a home, workplace, and entertainment hub.
The industry is moving towards a balance between convenience and experience.
Livid aims to combine the efficiency of fast food with the ambiance of fine dining.
The company's latest store in Sweden is 3500 square feet with 200 seats and high throughput.
Livid hires team members with no restaurant experience to ensure operational efficiency and staff flexibility.
Technology is key to profitability in high-cost markets like Sweden.
The company's lab store in downtown LA won the best restaurant design of the year award.
The LA store was built off-site, showcasing global sourcing and cost efficiency.
The restaurant's restroom is the most Instagrammed in the US, indicating successful user engagement.
Livid's concept aims to work from breakfast to late-night lounge, capturing all day parts.
The menu is simple, with a focus on vegetarian and vegan options, and high efficiency in food preparation.
The restaurant operates with a cross-trained staff, promoting flexibility and efficiency.
Livid measures and tracks everything in its restaurants, from guest flow to dwell time, to optimize the guest experience.
The company uses technology to create a frictionless dining experience, with orders triggered as guests enter.
Livid's focus on the five senses, including music and scent, influences guest behavior and satisfaction.
The company has a low staff turnover, emphasizing the importance of employee satisfaction and brand style in uniforms.
Livid shares its learnings and trends in a report available for download, offering insights into the future of the industry.
Transcripts
what I tried to do today on today's
session is sharing and hopefully by the
end of this session you can take some
insights with you to your operations or
to your brand so that's the main purpose
so livid is mainly known for restaurant
design but actually what's really
important what we do under the surface
where is everything from operation and
technology and really try to disrupt the
industry so as you see behind me we are
now in 46 countries and we open roughly
a thousand restaurants per year and that
gives us a little bit of the crystal
ball right knowing all markets six
continents where our consumers heading
what are the real challenges I come from
Stockholm we pay $23 minimum wage right
so when you guys here are concern about
minimum wage raising we come from the
future and we have solutions for that
hopefully so we've opened over 13,000
restaurants it's super cool to see some
of our clients in the room thanks for
that but over these years we've learned
a lot learn from the big guys and small
guys and the disruptors but I think
what's really happening is this
disruption and what consumers are really
looking for and the previous keynote
speaker talked a lot about experience so
what we've tried to do is really double
down on what is experience and what is
that we're looking for so we talk to a
lot of our guests and a lot of clients
obviously we do research and focus
groups all over the world and a lot of
them actually said would love this to be
a SIL house but we are the membership
it's a place where I can work I can live
I can play it's a place where I'm see
and be seen it's a place to belong and
at the same time it's aspirational it's
a place I wanted to belong to right but
I'm not gonna go away from value so it
still has to be affordable so we took
all those things and then we asked you
the operators what are you looking
really for what is the rest of that
future for you guys and the answer was
this we would love
to have the traffic and the throughput
of tears are put in a lifestyle wrapping
right when we're now almost the industry
is either you are convenience or your
experience we start trying to focus on
the experience the brick-and-mortar what
is that going to be in the future right
so we want their brands to be relevant
we obviously need a great return of
investment capital we want efficiency we
have problems with our skilled labor
there's a pond of labor not a pool of
labor right and we want it to be highly
tech driven so with all this information
that you gave us we said this what if
what if we could take the efficiency of
killers our affordable prices quick
service and plug that into a fine-dining
environment you know someone will you
have elevated food and good cocktails in
an aspirational setting nobody's done it
what would happen if we do it so our lab
brief was this we said we want to fine
dining environment at fast casual prices
we wanted high throughput and we measure
that at a guest every 30 seconds and
high transaction capacity a thousand
guests per store tied footprints our
latest store in south of Sweden is 3500
square feet with 200 seats and a reduced
Catholics I'll tell you more about that
and then this is what's really
interesting
we decided only to hire team members
that had never worked in a restaurant no
experience whatsoever and no chefs we
wanted operational efficiency and staff
flexibility cross-training
and lastly we wanted to be powered by
tech how can we be profitable in the
high cost market like Sweden and it was
interesting because we opened our first
or a lab store three years ago and then
four months ago we came to the u.s. and
open in the US and if you asked anyone
we're not to come and open a store they
said California
well there we went to California here we
are and not only in California we went
to downtown LA which is even more
challenging so after the success of
Stockholm and I had the pleasure to
share with you two years ago some of the
learnings from there we were named the
Amazon go of restaurants because of the
tech and efficiency we had we decided to
take it one step further and do a 2.0
lab so this is what it looks like it's
in downtown LA if you have time feel
free to visit the interesting thing
about this is we open only four months
ago and we just won the award for the
best restaurant design of the year
everything you see on these pictures is
built off-site we only hired MEP in the
u.s. everything else is directly sourced
from the factories so Granite's and
marble come directly from the quarry in
China or the furniture the bar comes
from Spain so we really source this
globally interesting fact I did a little
Q&A yesterday at the restaurant and I
asked four of you how much the capex was
for this restaurant and the answer was
between three and three point two
million dollars we built this whole
thing 4,800 square feet for 1.5 million
so just disrupting the way we build a
restaurant and design our restaurant is
very interesting this is a restroom is
the most instagrammed restroom in the US
and depending if you're in the male side
on the women's side there's different
messages so you have to check both out
yeah interestingly enough we spent $0 on
social media marketing zero we have no
budget for social media during the first
five days of operations we were getting
one Instagram follower per second we had
5,000 followers on day five this is all
user-generated content so what we wanted
to create is a concept that works from
breakfast early morning through lounge
you can come in you can sit you can hang
out with your laptop to late night
for those of you who haven't visited I
have a quick one-minute video of what
the space looks like on a Thursday night
[Music]
so in R Us store we've now started to
opening the evenings you can have some
music on and as we grow we're gonna
start with brunch and the lunch in our
Swedish store will normally add capacity
from 11:00 a.m. in the morning to 2:00
a.m. at night so it's all about
capturing all day parts having
everything from coming in early morning
in breakfast to really late late night
drinks and cocktails
[Music]
[Music]
it's been named the best space for
events in downtown LA which is great so
we do a lot of film shootings a lot of
events etc which is an additional
revenue stream this is a picture the
space was an old jewelry store from 1925
and we converted the vault into a
speakeasy so if you go to the restaurant
corridor there's a door that says
emergency exit alarm will sound if you
open that door you get into this
speakeasy but just because it's pretty
doesn't mean that it works so I want to
share some some insights and that you
can take with you hopefully to your
concepts and as a sneak peek to the
future so in terms of menu it's a very
simple menu we have share balls
we have bowls and salads and we have
pizzas 60% of the menu is vegetarian 20%
of the menu is vegan very quick very
easy
our highest item on the whole menu is
$16 it's a black truffle pizza with real
black truffle there's no truffle oil so
thanks to throughput scale and
efficiency you can really have
affordable prices in an environment like
this this is our food this is how it
looks like considering that we're using
no chefs so we work with a Michelin star
chef that actually creates our menu but
everything is based on assembly line so
this is some the look of some of the
dishes we have no mixologists so most of
our cocktails or all the cultures from
the cocktail lists are pre batched but
we focus a lot of the presentation so
the one to the right is called the
smoking pot we can sell 200 smoking pots
a night in this place and it's all about
the look and feel so most of our drinks
are actually designed not for picture
they're designed for stories for
Instagram stories so there's a movement
in it the drink to the left actually
comes in yellow and when you pour it
turns red you guys that visited
yesterday you had a drink that was white
and when we poured it turned out to be
purple so very interesting very limited
back-of-house this is the only piece of
equipment I toured some of you the
kitchen there's no kitchen
and the prep is this ice and that's it
so everything goes only through one
piece of equipment and that's why we
have a kitchen there's only 600 square
feet out of 600 square feet kitchen we
can produce a thousand meals a day a
very interesting model the fact that we
hire for attitude you don't need to have
experience in the restaurant allows us
to cross train so every train or the
whole training of the team members is on
an app they train on the way home or on
the way to work and what we do is that
we promote cross-training so the more
stations they are trained on the more
money they make and that allows us to
have everyone work every station the
chef can do a drink the guy the bar can
do the dishes and the dishwasher can run
tables so everyone does everything with
that in our Stockholm restaurant we do
five guests per labor hour and when we
count labor hour we include cleaning we
clean our own restaurants so we're able
to do five guests per each labor hour
that's the trick to be profitable in the
23 books in our market so we are able to
do 8 table turns per day that's once you
get the efficiency in rotation and the
team members structure it's very
interesting what you could do we're
actually faster than these guys so we're
now working with hotel companies that
are tired of having deliverer and uber
drivers in their corridors because you
order a club sandwich from the main
kitchen it's gonna cost you 35 bucks and
45 minutes so we can really deliver to
the restaurant to the hotel rooms in
less than seven minutes so in terms of
return of investment in sourcing as I
mentioned really think out of the box
how we source things and try to jump
over a lot of the steps we have the
advantage of being globally connected
with vendors so we can really be Navas
t'v and that there's a lot of money to
be saved
doing that and there's some sharing this
is our pizza box and some of you have
seen it it's gone viral people said we
were completely nuts you can't do a
pizza box that cost a dollar it's
impossible and we said ok we call this
the project
pizza box for the boardroom if a board
would to order pizza what would that box
looks like so what you touch is actually
silk and slides out and is the same
friction that when you open your iPhone
product you know that little suction
when you open the box what it was very
interesting and we did a focus group so
we took exactly the same pizza the same
food and presented it in our box and in
a white box and we asked guests how much
were they were willing to pay for the
same product they are willing to pay 27%
more money for the same product in our
box versus a white box we kind of
expected that but what we did not know
is that 80% of people that order our box
posted on Instagram so we can actually
take the money from the marketing budget
not from the optics budget and very
interesting as well and it's a good
learning for you
they not taking the pizza out of the box
and put it on the plate and take the
picture they take this picture and
what's on this picture or brand so make
sure that the picture or the the
packaging is picture worthy and the
brand is relevant on on the actual
packaging we're starting to get orders
of 150 or 200 pizzas I don't have 200
friends so we started to call back to
these guys and sorry I have to ask why
are you ordering 200 pizzas and it's for
weddings at 3 a.m. in the morning where
people are drunk they won't have pizza
but they don't want a Domino's Pizza
sorry Domino's they really want
something elevated so a lot of events we
had a t-shirt company launched the new
campaign in our boxes as Cola so there's
a lot of things we can do with this we
call these restaurants our labs and
they're packed with technology packed
with sensors so we measure everything
MAC addresses Bluetooth beacons heat
mapping everything you can imagine we
measure in these restaurants and not
only we measure everything we also track
everything so in real time every 15
minutes we know how many phones are in
the store we know where they come from
we know if you've been with us before we
know our capture rate we know all the
data from the phones even if you're not
connected to our
or to our Bluetooth so once we have all
the understanding and tracker and
correlate that with weather and external
events we track for example dwell time
and time value right how much value can
we get out of every minute of our guests
which is extremely important and try to
take out every minute of the experience
that is not adding value but at the same
time understanding and if you can see on
the graph this is from December half of
our guests are in the store less than 30
minutes so basically out of the whole
experience if you think of dining
experience is divided in three parts
you're going to restaurant you talk to
the host you get seated you get a menu
you wait for your server get your
manager all that we take that out the
actual dining component is regularly 20
minutes we don't eat for more time with
that and then the third part is I want
my check etc etc so we try to take out
those parts and therefore we can have a
table turns a day at a restaurant so
it's a text driven experience this is
the first restaurant in the world to
have an accuracy of one inch we know
where your phone is with an accuracy of
one inch so unfortunately you cannot say
tried yesterday I wanted to have it
ready for the conference we're beta
testing or app and it worked like this
we're here we're hungry we place our
order we're not telling the restaurant
where work when we're coming whenever we
want we just walk into the restaurant
the moment we break the geofence the
orders triggered to the kts we can go
and sit wherever we want we don't have
to talk to anyone within five minutes
food is on the table when we are ready
we walk out and we're prompted like uber
thanks for coming how was your
experience do you wanna rate us do you
want a tip so the true frictionless
experience that if you don't want you
can just go in and out 20 minutes that's
really what we're getting our average 12
time in Stockholm is 18 minutes for
lunch some insights and and I shared
these a couple of years ago with you so
we worked with a lot of the environments
so this concept is called V V is the
Roman numeral five for the five senses
so we worked with Spotify in
understanding what music impacts on
guest behavior and one of the learnings
that we did with McDonald's
was the depending on if you play brand
fit music you're actually going to
upsell on your high margin product which
is extremely interesting there's a
report if you email me I'll be happy to
send the report in terms of how you can
drive sales or throughput through the
type of music you play so the more brand
connected music you play you're gonna
have higher sales so we do something
called a burr sound scan understanding
and there's no right or wrong a brand
could either be energetic or calm so
once you understand your brand values
Spotify has then logged all these
attributes to all the music in their
portfolio and then the algorithm can
create playlists automatically that are
fit for a specific brand another
learning is volume so we did this test
in restaurants that serve salads and
pizzas and salads and burgers so healthy
and unhealthy food when we play exactly
the same playlist at 15 decibels higher
the sales of unhealthy food ie pizzas
and burgers went up 10% so think of that
10% so now we you can create the right
buy algorithm knowing how what are
capacities in the store and how many
guests we have inside the store the
algorithm can automatically create the
right music in real time we also work
with scent strategy we had used wood
fire oven scent and fresh basil when we
changed from wood fire oven scent to
fresh basil scent our salad sales go up
13% so monday to wednesday we use fresh
basil Thursday to Sunday we use wood
fire oven so think of that we're now
doing real-time controls so we can
actually change the light temperature of
each individual bulb in the restaurant
in real time depending on exterior
weather conditions and how many guests
we have inside the store and finally one
of the things that we work a lot is how
do we retain talent we have almost no
turnover after month six of operation
and we listen a lot to these kids that
have never worked in a restaurant but
want to work in this cool space in town
and one of the things that are most
important to them is not disguise them
not dress them up they hate
uniforms so whenever we can we suggest
having brand style guides or dress codes
that within a range you can choose how
to express yourself very interesting
very relevant and we actually listen to
them and we build them together with
them so they're super proud of what they
wear and how they dress even when they
leave the restaurant so a quick recap
from the learnings we have throughput 30
seconds per guest ticket time our
Stockholm store is now doing 4.5 minute
average ticket time no cooks
cross-training on all platforms no food
cost that's the beauty of pizza is flour
and yeast and water get a lot of seats
in at a 3500 square feet we get over 180
seats use tech whenever possible all
these solutions are available we've just
taken them from other sectors high
liquor sales makes use your bars and
that results in really high a B does
even in high labor markets I don't want
to finalize I have 10 seconds left
without giving you a little giveaway
every year at live it we do a trend
report the 20 trends for the next 10
years you can take a picture of it and
download it for free where we share all
the learnings that we have from across
the world and with that I'll be around
for the rest of the conference if you
have questions we don't have time for
that but I want to thank you for your
time thanks
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