Latest / From Kitchen to C-Suite™ / PULSE! Today’s Hotel, Restaurant & Bar Industry News Deep Dive (08/12/2026)
Transcript
- Brad Peters: Welcome to Pulse, today's hotel, restaurant, and bar industry news, a deep dive from HRB Universal, navigating your industry. With insights from leaders from DoorDash, launching its own in-house fleet of delivery drones, to AI predicting your kitchen's exact needs before the dinner rush begins, the Tech Arms Race in Hospitality has officially gone airborne. absolutely airborne. Welcome to Pulse in today's hotel, restaurant and bar industry news deep dives, brought to you by HRB Universal. We are delivering the critical updates, trend analyses, and operational intelligence you need to stay ahead in hospitality. And you know, our mission today is really to figure out how you survive this new hospitality divide. Like how do you automate your delivery and your kitchen to this absolute robotic precision while making your physical dining room feel more deeply human than ever before? Yeah, that divide is exactly what we're tackling. I mean, we are looking at just a massive stack of operational reports for this deep dive. And the problem with giving your customers the ability to order flawlessly via some AI agent is that you now have to actually cook and fulfill that food at algorithmic speeds. Right. Which is terrifying for most kitchens. Utterly terrifying. So we are starting at the absolute front lines of this friction point today. DoorDash has officially unveiled DoorDash Air. Yeah, this is huge. It really is. Yeah. They have secured a Part 135 air carrier certification from the FAA to operate an in-house Drone delivery system. And we really need to dissect what that FAA Part One Thirty Five certification actually means for your logistics network. Because Doordash didn't just, you know, buy some off the shift commercial drones at Best Buy and hire teenagers to fly them. No, not at all. Right. A 135 certificate is the exact same regulatory framework required to operate a commuter airline or a private charter jet. Wait, really? A commuter airline? Yes. They are one of only eight drone operators in the entire country to achieve this. I mean, it mandates rigorous maintenance schedules, pilot training for the remote operators overseeing the flights, and incredibly strict safety protocols. Yeah, regarding payload weights, weather minimums, flight paths over populated areas. They are basically building a full scale aviation department. Which is just wild to think about for dropping off a burger. Exactly. And the reason they are spending hundreds of millions of dollars to do this. Comes down to solving a very specific operational bottleneck. The dreaded three to five mile radius. yeah. The sources show that mid-range deliveries, that three to five mile zone, they make up about twenty percent of DoorDash's total order volume. Right. But and here is the devastating metric for you operators out there, those specific orders take twenty-five percent longer to fulfill via human couriers. It's a nighter zone. It really is. Now in the drone pilot programs, they're averaging twenty five minute delivery times from the moment the order is fired to the moment the food literally drops in the backyard. Which is incredibly fast. Right. And these drones are being integrated into what DoorDash is calling the autonomous delivery platform. So it rats orders between human dashers, the dot sidewalk robots, and now the drones. And if you look at the unit economics of that three to five mile zone, they're just a nightmare for gig work. for sure. The pay structure, right. Exactly. If a dasher gets an order going half a mile, well, it's a quick turnaround. High volume, low mileage, it works. Yeah, it makes sense. And if they get an order going twelve miles, the algorithm usually attaches a pretty significant premium to make it worth their time. But three to five miles, that is the dead zone. The dead zone. It takes the driver out of their prime staging area, forces them to navigate, you know, crosstown traffic, multiple intersections, and all for a payout that just doesn't adequately compensate for the time lost. So the human drivers just look at the offer on their phone and hit decline. Exactly. The order just bounces from driver to driver waiting for someone to finally accept it. And meanwhile, the food is sitting on your expo counter dying under a heat lamp. Yes. The fries are getting soggy, the burger bun is getting tough, the ice in the fountain drink is melting. And the guests at home, they do not care about the Dasher algorithm. They blame the restaurant. 100%. The review on Yelp doesn't say Doordash took too long to assign a driver. It says the food at this restaurant is cold and terrible. You take the brand damage for a fulfillment failure you couldn't control. Which is just brutal for operators. So DoorDash is looking at this bottleneck and realizing that throwing more human capital at it just isn't solving the problem. The autonomous drones bypass the traffic, they fly point to point, and they completely eliminate the human decision of whether the payout is quote unquote Worth it. Which fundamentally changes how a kitchen needs to sequence its tickets. I mean, think about it. If a drone is dispatched the second the order hits your POS, it isn't getting stuck at a red light. Right. It is arriving at your loading zone at a highly predictable exact second. The variance in driver arrival times is virtually eliminated. Wow, so you have to be perfectly on time. Yes. This requires your kitchen to have absolute precision in prep times. You cannot have a drone hovering over your roof for 10 minutes waiting for a side of ranch. That's a hilarious visual, but a total operational disaster. Exactly. The integration of this autonomous delivery platform means your KDS needs to be talking directly to the dispatch algorithm, timing the bagging process perfectly with the drone's descent. But you know, the physical fulfillment is really only half of the front door equation here. The way the order is actually placed in the first place is undergoing an equally massive shift. agentic commerce. Yes. Right. Google is making aggressive moves back into the restaurant space. They are integrating AI powered ordering directly into Google Maps, aiming to own what is being called agentic commerce. And agentic commerce is essentially the transition from a graphical user interface to a conversational AI-driven interface. So moving away from apps entirely. Basically. Yeah. Let's look at the traditional flow, right? A guest opens an app, types in a restaurant name, scrolls through a menu, clicks on items. adds them to a cart, inputs payment, and hits submit. Which takes time and effort. Right. It's a high friction process. Agentic commerce means the AI acts as an autonomous agent on behalf of the consumer. Okay. Give me an example of how that looks for the guest. The user simply says to their phone, order my usual from the taco place downtown and have it delivered to the office. And that's it. That's it. The AI in Google Maps knows what the usual is from historical data. It knows where the office is, it securely holds the payment token. It negotiates with the restaurant's API via natural language processing, places the order and confirms it. The friction drops to zero. Literally zero. Which I mean, that is terrifying for restaurant operators who have spent the last five years trying to build up their own first party data. absolutely terrifying. Because if Google's AI is placing the order, well, Google owns the customer relationship. Google owns the data. The restaurant is just a dumb kitchen fulfilling an API request at that point. Right. You become a white label commissary for Google. Exactly. And this is exactly why brands are fighting so viciously right now to protect their digital real estate. Look at what Domino's is doing in our reports today. Yeah, their new app rollout. Right. They just launched a massive redesign of their app and website, incorporating AI-based ready time estimates. But they aren't just launching it and hoping people use it. They're literally paying customers to stress test it. Yeah. The bug bounty program. Yes. They're offering a five dollar discount to anyone who places a digital order and provides feedback on the new interface. Aaron The financial modeling behind that $5 discount is just brilliant, honestly. I mean, think about what a bad app deployment actually costs a massive brand like Domino's. Millions, I would imagine. Easily. If they roll out an update and there is even a half second of digital latency on the checkout screen. Or if you know the add to cart button is slightly misaligned on a specific Android device, cart abandonment spikes. People just give up and order a burger instead. Exactly. A one percent drop in conversion across the Domino's network translates to millions of dollars in lost revenue over a single weekend. Wow. So paying five dollars for feedback is a steal. It is. Traditionally, a company would pay a massive QA firm to test the app in a sterile lab environment. But lab testing never perfectly replicates the chaotic real world variables. Right, like varying cellular signals or older phone models. Or just impatient customers swiping too fast. By offering a five dollar discount, Domino's is crowdsourcing their QA to millions of actual users. That is so smart. The cost of customer acquisition in QA is bundled into a marketing campaign that drives immediate sales. And simultaneously identifies every single microscopic bug in the UI. And Taco Bell is playing the exact same game with their proprietary data. They just launched a massive update featuring my menu and this thing called My Mods for specific item customizations. Yes, the My Mods feature is fascinating. Right, and they also added profile avatars and lock screen tracking. Taco Bell is reporting 30% year over year growth in loyalty members, and nearly 50% of their US sales are now fully digital. That digital mix is huge. It's massive. But let's zero in on that My Mods feature for a second. Because on the consumer side, it just looks like a convenient way to save the fact that, you know, you want your crunch wrap with no tomatoes and extra nacho cheese. Right. It feels like a nice perk for the user. But on the corporate side, my mods is the most powerful menu engineering tool ever created. Okay, break that down for us. Why is it so powerful? Well, traditionally, fast food R and D relies on focus groups and limited test markets, which, you know, they're expensive, they're slow, and they're often highly inaccurate. Because people act differently in a st sterile focus group room than they do at a drive-thru at midnight. Taco Bell has essentially digitized their entire shadow menu. They are aggregating millions of real time data points on exactly how customers are hacking their food. wow. So they can see the trends instantly. Instantly. If they see that 80,000 people in the Southwest are independently swapping out a specific protein for black beans and adding a specific hot sauce, they don't need a focus group. They already know it works. Right. They don't need anyone to tell them what the next limited time offer should be. The customers have already built it, priced it, and proven the demand. It turns the entire user base into an outsourced culinary development team. That is incredible. And then the lock screen tracking they introduced. Plays right into the anxiety of modern delivery we were talking about earlier. Yeah. Where you can see exactly where the food is. Right. The user doesn't even have to unlock their phone to see exactly where their food is in the prep process. But I want to push back on this a bit. Here is where the entire narrative of seamless tech integration kind of hits a brick wall for me. Okay, let's hear it. We have to talk about the Shake Shack glitch that went viral in the news this week. yes. That was bad. A customer was at a self-served kiosk in a shake shack. They navigated the menu, built their order, and got to the payment screen, which presented the standard tipping options. Right, standard kiosk flow. But the customer hit no tip. And because of a back-end tech error, when they opted out of the tip, the total price of their order actually increased. Yeah, the mechanics of how that glitch happened are an absolute nightmare for PCI compliance, but the operational damage is even worse. A glitch isn't just a bug, right? I like to use the analogy of a digital lock door. It's the digital equivalent of Of a waiter chasing a guest into the parking lot to demand a tip and then pickpocketing them when they say no. That is exactly how it feels to the consumer. It breaks the social contract of hospitality instantly. I mean, in a climate where consumers are already experiencing massive tipping fatigue, especially at self-serve kiosks where there is minimal human interaction, this is a disaster. A glitch that seemingly penalizes a customer for their financial choice. destroys brand trust in a matter of seconds. The customer filmed it, put it on social media, and millions of people suddenly assumed the brand was intentionally deploying dark UI patterns to steal from them. And this is the immense danger of the digital arms race we're in. As operations become entirely automated, consumer tolerance for digital friction vanishes completely. Right. If a human messes up, they can fix it. Exactly. A human waiter can apologize for wringing something in wrong. They can comp a dessert They can use empathy to recover the service. A kiosk cannot apologize. No, it just spits out a receipt. Right. If a kiosk double charges a card, or if an app crashes right as Apple Pay confirms, the customer immediately feels victimized by a faceless corporation. The recovery process is brutal because the guest has no human to express their frustration to. So they broadcast it to the internet instead. Exactly. Which brings us to the quote unquote, so what? And the core actionable takeaway for your front of house operations today, you have to audit your digital latency and your UX flows today. Right now. Do not assume your IT vendor has optimized everything for your specific menu. You and your executive team need to sit in your parking lot, drop your phone down to one bar of sell service, and try to order a highly customized meal on your own website. That is a great exercise. You have to test it under real world stress. Exactly. You are looking for microscopic friction. How many taps does it take? Does the screen hang during payment authorization? And if you are relying on third-party delivery, you must prepare your physical infrastructure for upcoming autonomous handoffs. Drones and robots do not know how to wait in line behind a human delivery driver. Right. You have to design specific, localized staging areas, whether that's a dedicated drive-thru lane, a reinforced rooftop drop zone for these DoorDash drones, or a modified back door that can interface seamlessly with autonomous systems. The stakes have really never been higher for that front door. Truly. But a flawless digital ordering experience, whether it's through Google's Agentic AI or a perfectly optimized Domino's app, it means absolutely nothing if the kitchen collapses under the volume. Right, a seamless front end actually weaponizes demand against an unprepared back of house. That is such a good way to phrase it. Weaponize demand. Because when Google Maps can dump fifty orders into your system in sixty seconds without a single phone ringing or a single human taking an order. Traditional expoing just breaks down. It shatters. That is the exact transition point where AI has to move from the customer's phone directly onto the prep line. Which leads us into the back of house tech stack, our second block today. Let's look at what Sodexo is doing, because this is operational scale that just breaks the human brain. It really does. Sodexo is utilizing AI agents to manage and optimize over 70,000 recipes across its 27,000 North American locations. Seventy thousand recipes. Let that sink in. And this covers everything from university dining halls and corporate cafeterias to hospital food service and sports stadiums. The logistical calculus required to manage that many active recipes is staggering. I mean, let's break down the variables a corporate chef team has to deal with on a daily basis. Okay. Yeah. You have seasonal produce availability, you have massive regional supply chain disruptions. Like a truck breaking down. Exactly. You have localized pricing fluctuations for proteins, you have altitude adjustments for baking in Denver versus sea level in Miami. I didn't even think about altitude. Right. And you have strict nutritional macro tracking required for hospital settings, plus complex allergen cross contact protocols. It's too much for a human team. Way too much. When a single supplier shorts a shipment of a specific flour, a human team cannot manually calculate the exact substitution ratios, update the nutritional information, adjust the yield scaling, and push the new recipe specs to 27,000 individual kitchens before the morning prep shift starts. It's mathematically impossible. It is. So by utilizing AI agents, Sodexo is deploying an omniscient, centralized culinary brain. So the AI steps in and does all that math instantly. Instantly. The AI can ingest a supply chain shortage alert at 30 AM, cross-reference it against the 70,000 recipes, Identify the five hundred recipes affected for that specific day's menu across the entire network, and calculate the optimal ingredient substitution. Based on what is locally available in the walk-ins of those specific units, right? Exactly. Then it recalculates the caloric and allergen data and pushes the updated standardized prep sheets to the local kitchen managers before they even unlock the doors. That is wild. It ensures that the culinary standard remains absolutely identical whether a cook is transitioning from a corporate event in New York to To a university dining hall in Boston? Aaron And this completely shifts the role of the kitchen manager. The cognitive load of logistics, yield math, and supply chain scrambling is completely removed. Aaron But let me push back on this a little bit. I mean, I love the efficiency, but doesn't this risk turning kitchens into purely mechanical assembly lines? Can't AI truly standardize 70,000 recipes without stripping the quote unquote soul and culinary art out of the food. Well I would argue it actually does the opposite. so because the AI handles the algorithmic chaos of the macro operation, right? Which allows the humans in the kitchen to focus purely on execution. They have the time to focus on food safety, actually tasting the product, and managing the culture of their line cooks. I see. So it removes the paperwork so they can actually cook. Exactly. It frees them up to be chefs again, not mathematicians. Okay, that makes sense. And execution on the line brings us to the evolution Of the kitchen display system, the KDS. We have news from a company called Thrive, who is integrating Google's Gemini Enterprise AI to build a predictive KDS. Yes, predictive KDS is the next major frontier. They are synthesizing structured and unstructured data to predict kitchen flow. Let's define the data first for everyone. Structured data is easy. That is your historical POS data. Right. The numbers. Right. It's the spreadsheet that says every Tuesday at noon you sell 40 burgers. But unstructured data, that is the chaotic reality of the outside world. The fun stuff. Yeah. It is the AI pulling text from a sudden surge of Yelp reviews, reading localized weather radar APIs, scraping the schedule of a convention center three blocks away, or monitoring real time traffic patterns on the highway outside your restaurant. And to truly understand the impact of this, you have to look at the legacy technology we've been relying on. For the last two decades, a KDS was essentially a digital ticket rail. Just a screen instead of paper. Exactly. It was a dumb monitor that replaced paper tickets. It only told the kitchen what had already happened. A guest placed an order and the screen told the cook to make it. It was entirely reactive. It's like looking in the rear view mirror. I use this analogy all the time. For years, a P and L or a KDS was like looking in the rear view mirror, reporting on the weather after the storm has passed. You can't change it. That's a perfect analogy. Right, but now this new predictive KDS acts like a highly advanced GPS radar for the line, telling you about the traffic jam ten miles ahead. Exactly. It doesn't just show you the current tickets, it analyzes the unstructured data. Let's say it detects a massive rainstorm moving in right as a convention is letting out down the street. Okay, so it sees the storm in the crowd. Right. And it correlates that with your historical data showing that rain drives people into your specific property. The KDS screen will literally tell the fry cook, drop three baskets of fries right now. We are about to take a 30 ticket hit in exactly eight minutes. Wow. In exactly eight minutes. Yes. The transition from a state of constant stressful reaction to a state of calm, algorithmic, proactive preparation changes the entire physiology of a kitchen. I can imagine. The primary cause of employee burnout and high turnover on the line is the sheer panic of getting weeds. Right. That moment when the ticket machine won't stop printing. And the team falls impossibly behind. It's a horrible feeling. It is. If a large language model like Gemini can accurately forecast the micro rushes based on environmental variables, you eliminate the panic. You smooth out the labor curve, you reduce food waste because you aren't over prepping based on a gut feeling, and you aren't under prepping and scrambling to thaw proteins during a rush. Speaking of food waste, the back end operations aren't just about cooking the food, they are about managing what is left over. The sustainability narrative is shifting dramatically. Yes, moving away from just marketing buzzwords. Exactly. We have an operational report out of Sharja's Coral Beach Resort in the United Arab Emirates. They have installed a heavy-duty on-site biodigester to turn their massive volume of food waste directly into water. They are addressing sustainability right at the source, directly on the property. Let's look at how a commercial biodigester actually functions, because this is where Sustainability transitions from a hollow marketing buzzword into a brutal hard cost saver. Right. It's about the ROI now. Historically, green initiatives and hospitality were viewed as luxury expenses, but hauling heavy, wet organic waste is one of the most expensive line items in a hotel's waste management contract. Municipal tipping fees are skyrocketing. yeah, they are. Landfills are charging premiums for organic matter because it rots anaerobically and produces massive amounts of methane. And hauling it requires huge dumpsters that take up valuable real estate on your loading dock, attract pests, smell terrible, and require diesel trucks to constantly back up into your property. Exactly. The biodigester eliminates the supply chain of garbage. The machine doesn't just crush the food like a consumer garbage disposal under your sink. It uses specific aerobic microorganisms combined with constant agitation, oxygenation, and heat to literally eat the organic waste. Eat it, literally. Literally. And because it is an aerobic process, meaning it relies on oxygen, it does not produce methane gas. Within 24 hours, the machine breaks down hundreds of pounds of solid food waste, including meat, dairy, and bones. Even bones. Yes, even bones. It breaks it all down into a safe, neutral graywater effluent that can be discharged directly into the standard municipal wastewater system. That is incredible. The financial breakdown there is undeniable. You are drastically reducing your solid garbage volume, which means you cut down on the frequency of trash pickups. Which saves a ton of money. Exactly. You reduce your disposal costs, you eliminate the pest control issues associated with rotting food, and you dramatically minimize your property's carbon footprint. Is a piece of technology that literally eats your overhead. Eat your overhead, I like that. Thanks. So the so so here. The takeaway for your back-of-house operations is that you must audit your data latency today. Predictive analytics and AI recipe management mean the difference between proactive leadership and reactive scrambling. If your kitchen only knows what happened yesterday, you are losing money today. Exactly. Take a hard look at your reporting systems. Operators must transition their reporting systems from historical data dumps to forecasting engines, and on the physical side, evaluate your waste management protocols. Calculate the exact tonnage of organic waste you are paying to haul away every month, and run the ROI on a localized biodigester. Look for tech that turns an operational liability into a sustainable asset. Solid advice. Which brings us to the ultimate operational paradox and our third and final block. We've spent the first two segments talking about hyper efficiency. Drones dropping food from the sky, AI ordering for the guest, AI writing 70,000 recipes, biodigesters eliminate waste on site. Right, automation everywhere. Exactly. The off-premise and back of house are becoming flawless robotic ecosystems. But the physical dining room has to do the exact opposite. Because getting delivery is so utterly effortless now, on-premise dining has to offer an experience so deeply human, so unreplicable. That it convinces a guest to put on hard pants, get in their car, and leave their house. Put on hard pants, yeah, that's the ultimate test. If your dining room is just a room where food is eaten, you cannot compete with a couch. You just can't. The physical space must justify the trip. It has to be a destination, not just a fulfillment center with chairs. And we are seeing this evolution tear through the industry right now, starting heavily in the hotel sector with the reimagining of the sports bar. this is a great trend. The Hokel Sports Bar has historically been a depressing space, right? It was usually a dark room off the lobby, sticky carpets, a few tapped kegs of domestic beer, a couple of generic TVs, and a menu consisting of frozen mozzarella sticks and overpriced wings. Just a sad place to watch a game alone. Exactly. It was a loss leader amenity designed just to keep stranded travelers from leaving the property. But now hotels are aggressively redefining these spaces into quote unquote luxury sports lounges. Yes. We are looking at properties like Foundry Field House in Portland. The aesthetic is described as moody and sexy, and it features an actual speakeasy that guests can only access through a secret red phone booth. I've seen pictures of that. It's stunning. It is. Then we have high velocity at the JW Marriott in Indianapolis, which features a true steakhouse quality menu and massive architectural video walls. And the Omni Dallas's owner's box, which uses a private club. VIP approach to watching a game. What we're witnessing here is the strategic premiumization of casual spaces. I mean, hotel F B directors have finally realized that the demographic profile of a diehard sports fan and the demographic profile of a high net worth luxury corporate traveler overlap significantly. That's a really good point. Right. By elevating the culinary program to stakehouse quality and designing a high-end, acoustically engineered atmosphere, they accomplished two major things. First, they capture the corporate traveler on a massive expense account, who wants a premium dry edged ribeye, but absolutely refuses to miss the NFL playoff game. Right, they get both. Exactly. And second, they draw in the local community. The space becomes a VIP viewing destination for locals who want a high end experience without going to a sticky, crowded sports pub. They are maximizing the revenue per square foot, really, by layering multiple experiences into a single footprint. A guest might come in for the game, but they stay for the speakeasy behind the phone booth. It turns dead lobby space into a massive profit center. It's brilliant space utilization. It really is. And it isn't just luxury hotels pushing for physical destinations. We have to examine the Froyo revival in the QSR space. The Froyo Revival. Yes. Sixteen Handles is leading a massive resurgence in frozen yogurt franchise growth. They signed twenty five new development agreements just in the first half of the year. Yeah, and they are succeeding. By offering wild, buzzworthy, limited time flavors, like a French fry flavored frozen yogurt made with real potatoes, and heavily investing in larger twenty-five plus seat stores specifically designed to act as community quote unquote third places. And you know, the strategic vacuum for the evening third place is massive right now. Because of coffee shops. Exactly. Coffee shops have dominated the third place real estate, you know, the anchor between home and work. For decades. But look at what the major coffee chains are doing right now. They are ripping out soft seating, they are shrinking their dining rooms, they are prioritizing mobile order pickup windows and drive thrusts. But these want you in and out. Right. They are essentially abandoning the community gathering space model to become high speed caffeine fulfillment centers. Sixteen Handles is looking at that vacuum, particularly in the afternoon and evening day parts when coffee shops close. And they are building twenty five seat stores to capture all of that displaced community traffic. Okay, but I have to push back on the sixteen handle strategy here. Because we have seen this exact movie before. Ten years ago, the Froyo boom took over the country. There was a shop with pastel walls and self serve machines on every single corner, and they all went bankrupt because the unit economics made absolutely no sense. The market oversaturated, the novelty wore off, and winter hit. So why on earth would sixteen handles think that building massive twenty-five seat locations to act as a community third place is a brilliant revival strategy? Isn't it just a dangerous real estate trap that ignores why Froyo failed the first time? It's a fair question, but the unit economics of a twenty-five seat lease today are entirely different than they were during the initial boom. The original Froyo crash was driven by hyper competition on every block and a total lack of differentiation. Everyone was selling the exact same tart yogurt. Right. Sixteen Handles is betting that the modern consumer, who is increasingly isolated by remote work and digital delivery, craves physical connections so deeply that a comfortable, vibrant community space will drive massive dwell time. And dwell time equals secondary purchases. Exactly. But the truly brilliant part of their strategy is how they drive the initial foot traffic. To fill those 25 seats in the first place. Extreme menu innovation. the French Fray Froyo. Yes. That flavor is not engineered to be their top-selling core menu item. It is a highly calculated, low-risk marketing stunt. You don't have to overhaul your supply chain to run a crazy flavor in one machine. But it gets people talking. It creates immense social currency. It drives a surge of TikTok videos, it gets teenagers and young adults into the physical store to try it on a dare. And once they are in that twenty five seat dining room, the environment keeps them there. It is customer acquisition disguised as culinary RD. Okay, that makes perfect sense. It's about engineering an experience that demands a physical visit. And nowhere is the demand for a unique physical narrative more evident than in waterfront dining. waterfront dining is a great example of this. Timeout just released their list of the best waterfront restaurants in America and analyzing this list. Proves that a premium experience is absolutely not a one-size-fits-all formula. It ranges wildly based on geography. Definitely. On one end of the luxury spectrum, you have Coast in Rhode Island, which operates under a resort elegant ethos, where gentlemen are strongly encouraged to wear jackets. Very traditional. Right. Then you have Mama's Fish House in Hawaii. They're famous because they literally list the name of the specific local fisherman who caught the food that day. Directly on the printed menu. And then you have places like The Psaltery in Alaska, which is located deep in the wilderness and is accessible only by boat. Each of these restaurants is leveraging their extreme geography to create a completely unreplicable narrative. I mean, think about the supply chain psychology at Mama's Fish House. Yeah, listing the fishermen. Right. In a world where consumers know that most seafood is frozen, shipped across oceans, and commoditized, Mama's Fish House uses hyperlocal storytelling as their primary differentiator. By printing the name of the fisherman on the menu, they aren't just selling you a piece of Mani Mahi. They are selling you a direct, intimate connection to the local ecosystem. Yes. They are validating their supply chain in real time, building immense consumer trust, and mathematically justifying a massive premium on the check average. You are paying for the story as much as the protein. And the sultry in Alaska takes that concept of exclusivity to its absolute limit. Making your restaurant only accessible by boat. Transforms the meal from a standard dinner reservation into a literal pilgrimage. It becomes an event. The logistics of operating a restaurant that can only receive staff and supplies by boat are terrifying, frankly. You are entirely at the mercy of the weather, title charts, and engine maintenance. But that operational difficulty is exactly what creates the value. The journey to get to the table becomes the appetizer. You absolutely cannot replicate that sense of adventure with a drone dropping a bag on your porch. You really can't. But you know, you don't need to have a boat dock in Alaska or a private fisherman in Hawaii to engineer exclusivity and drive physical visits. What do you mean? You can innovate entirely within the four walls of your existing menu. We are seeing major national chains leaning heavily into sandwiches and unique signature sauces to capture market share. right, the sauce wars. Exactly. Culver's just launched a fried pickle pub burger. Zach Spees rolled out a highly regional Alabama white booby Q sauce. Wingstop introduced a hot honey mustard dip. And if you analyze the menu engineering behind dipping sauces, it is arguably the most elegant operational strategy in the industry. Launching a new protein or a new sandwich build is dangerous. It requires massive supply chain overhauls, new kitchen equipment, extensive cross-training for the line cooks, and there is a high risk of cross-contamination or slowing down the ticket times. It's a huge headache. But adding a new sauce, like an Alabama white BBQ or a hot honey mustard. Is an incredibly low-risk, high margin maneuver. It costs pennies per ounce, it requires zero new equipment. The training time is literally put this new cup in the bag. Right. Yet a distinct cravable sauce completely changes the flavor profile of the existing core menu items. It creates a proprietary flavor mode. That's how I like to think about it. If a customer craves that specific hot honey mustard, well, they cannot go to a competitor to get it. It keeps the brand fresh in the eyes of the consumer. generates a massive social media buzz because people love reviewing extreme flavors online and it drives that crucial repeat visit, all while maintaining perfect operational simplicity on the line. So bringing it all together, what does this mean for the listener? The actionable takeaway here is that you must audit your physical space and your menu strategy immediately. Operators must ask themselves one brutal question. What are we offering that cannot be delivered by a drone? If the answer is nothing, you have a big problem. Exactly. Implement low risk, high reward menu additions like those signature dipping sauces to keep the menu fresh, and find ways to layer multiple experiences like a VIP room or speakeasy into your existing floor plan to maximize revenue per square foot. The modern consumer demands a strong sense of place and hyper specificity. Because the physical space is your ultimate defense against the commoditization of delivery. Whether it's knowing the name of the fisherman who caught your dinner, taking a boat to get to the restaurant, or entering a sports bar through a secret phone booth. The physical experience absolutely must justify the trip. Which brings us to the end of our deep dive today, but I want to leave you with a final provocative thought to mull over before your next service. Let's hear it. As we hand over our recipes, our delivery, and our kitchen management to AI and drones, will the true luxury of the future simply be human interaction? As your operations become more perfectly automated behind the scenes, how will you ensure your hospitality remains distinctly? Messily and beautifully human. That is the question of the decade for this industry, frankly. That wraps up today's edition of Pullish. Before you get back to your floor or executive suite, make sure to check out the other powerful shows in the HRB Universal Podcast Network. Kitchen to C Suite, your definitive roadmap for advancing hospitality careers from entry level up to executive leadership. Us. The Recipe for Results podcast extra fast, high impact extras packed with operational tactics and actionable solutions. 86ing the bad habits, cutting out systemic operational flaws, bad leadership habits, and inefficient practices across hotels, bars, and restaurants. Catch every episode of the HRB Universal Podcast on Apple Podcasts, Spotify, YouTube, or at hrbuni.com. Until next time, stay sharp, stay compliant, and keep your finger on the pulse of hospitality. On the go. Access the HRB network anywhere by downloading our web app at hrbuni.com forward slash app. Us prefer the big screen. Stream the podcast directly on your TV via Roku or Fire TV.