A PUBLICATION OF THE OREGON RESTAURANT & Lodging ASSOCIATION | MARCH 2014
MILLENNIALS
Savvy Generation Influencing the Beverage Business also in this issue Marketing by Text?
Michele Stultz, co-owner and mixologist Equinox Restaurant & Bar, Portland
Under ACA Defining Full-Time Has Major Impact on Scheduling and Coverage Costs.
Increasing revenue during off-peak hours. OregonRLA.org - 1
2 - Main Ingredient - March 2014
April 9, 2014 |
DoubleTree By Hilton Portland
R e ception & Silent Auction 5:30 P.M. | Dinner & Live Auction 7:3 0 P. M . Join us for the annual Oregon Restaurant & Lodging Association dinner and fundraising auction. Mingle with hospitality industry leaders and make invaluable connections while supporting the Oregon Restaurant & Lodging Association’s Political Action Committee. GET YOUR TICKETS! Contact Glenda at 503.682.4422 or GHamstreet@OregonRLA.org DONATE AN AUCTION ITEM! Contact Jenn at 503.682.4422 or JStarr@OregonRLA.org BECOME A SPONSOR! Contact Lea at 971.224.1543 or LEnnis@OregonRLA.org
SILVER SPONSOR
SILENT AUCTION SPONSOR
HOSPITALITY INDUSTRY PARTNER: FOURNIER GROUP
LIVE AUCTION SPONSOR
BEER SPONSOR
OregonRLA.org/OneBigNight All proceeds go to ORLAPAC. The One Big Night Auction benefits advocacy and the election of pro-industry candidates.
OregonRLA.org - 3
- Now serviNg -
What you need, when you need it.
For your convenience Cash&Carry has over 8000 quality food and restaurant products priced right for the success of your business, seven days a week.
- ALwAYs AvAiLABLe -
days a week. Stop by, we are open 7 gene, Oregon Don - Store Manager, Eu
4 - Main Ingredient - March 2014
• Fresh Produce • Frozen Food • Bakery & Deli • Paper Products • Glassware & Small Wares • National & Private Label Brands
• Fresh Meat • Cheese & Dairy • Grocery & Beverages
Where Restau
rants Buy Bett
www.smartfoodservice.com - 800-662-4242
er ™
PHOTO BY HEIDI JANKE
MARCH2014 Features 14 | CONNECTING WITH THE MILLENNIALS Savvy Generation Influencing the Beverage Business
12 | Tips to Build Business
Mixing Tech with the Latest Trends is a Recipe for Success.
21 | Marketing by Text?
New FCC Rules Explained
Government Affairs
8 | ORLA Advocacy Update 2014 Session Coming to a Close 9 | ORLA Advocacy Update Minimum Wage 10 | ORLA Advocacy Update Under ACA Defining Full-Time Has Major Impact on Scheduling and Coverage Costs.
Membership
6 | New Members
7|
14
Michele Stultz, co-owner and mixologist of Equinox Restaurant & Bar, Portland prepares the EQ GIMLET; gin, St. Germain elderflower liqueur, simple syrup, lime juice and soda.
23 |
President’s Letter Is Your Business Positioned for Generation Shifts and Buying Habits? Are You Properly Controlling Your Liquor Liability? Licensing and Employee Training
26 | Manage My Restaurant Increase Revenue During Off-Peak Hours.
OregonRLA.org - 5
WELCOME New Members from January 2014 Main Ingredient is published twelve times a year by the Oregon Restaurant & Lodging Association (ORLA), 8565 SW Salish Lane, Suite 120, Wilsonville, Oregon, 97070, 503.682.4422, 800.462.0619. Articles address issues, programs, news and trends important to Oregon’s foodservice and lodging industry. To learn more about the Oregon Restaurant & Lodging Association, visit OregonRLA.org.
MEMBERSHIP To become a member of the Oregon Restaurant & Lodging Association, please contact Jennifer Starr, JStarr@OregonRLA.org or 503.682.4422.
The Allison Inn & Spa, Newberg
Oscar Drake's NW Grill & Tavern, Portland
Bennington Properties, Sunriver
Rodeway Inn, Medford
Club Pioneer, Prineville
Saffron Salmon, Newport
Elan Guest Suites & Gallery, Jacksonville
Shucker's Oyster Bar, Lincoln City
Frankie's, Albany
Tabor Tavern, Portland
Hood River Bagel & Company, Hood River
Tiga Sushi Bar, Salem
Hotel Modera, Portland
Wildlife Inn, Winston
Legaria's Bar & Grill, Woodburn
Zoup!, Tualatin
Ma Mosas, Grants Pass Nor'Wester Seafood, Gold Beach
SUBMISSIONS For submission guidelines or other editorial input, please contact John Hamilton, JHamilton@OregonRLA.org. ADVERTISING Please support the advertisers herein; they have made this publication possible. For information on advertising opportunities, please contact Lea Ennis, LEnnis@OregonRLA.org, 503.682.4422.
HOW CAN WE SERVE YOU?
Call your regional representative today! Oregon Restaurant & Lodging Association staff are located across the state supporting membership activities, training programs and government affairs in your local area.
PUBLISHER Steve McCoid, President & CEO, ORLA EDITOR & CREATIVE DIRECTOR John Hamilton, ORLA ASSOCIATE EDITOR Lori Little, ORLA DESIGN Heidi Janke, ORLA
PORTLAND METRO WEST, NORTH COAST Clackamas (West), Clatsop, Columbia, Multnomah (West) Tillamook, Washington, and Yamhill counties
ADVERTISING SALES Lea Ennis, ORLA ORLA BOARD OF DIRECTORS
LORRI GEORGESON 503.341.4810 LGeorgeson@OregonRLA.org
Astoria Seaside PORTLAND Beaverton McMinnville
SALEM
Newport
CORVALLIS
Jeff Morton, Secretary, InnCline Hotel Management Jerry Scott, Treasurer, Elmer’s Restaurants Kevin Bechtel, Shari’s Restaurants Joe Benetti, Benetti’s Italian Restaurant Michael Carbiener, Oswego Lake Country Club Tom Drumheller, Escape Lodging Company Steve Faulstick, Westmont Hospitaltiy Group, DoubleTree by Hilton Portland Chuck Hinman, Best Western Plus Hood River Inn Gary Hoagland, Hoagland Properties Bob Jensen, Big Green Events & Wild Duck Cafe Becky Johnson, OSU Cascades Fred Jubitz, Jubitz Corporation John Lenz, Jaspers Café Patrick McShane, InnSight Hotel Management Group Chris Otto, Sunriver Resort, Destination Hotels Buggsi Patel, BHG Hotels
PORTLAND METRO EAST, HOOD RIVER Clackamas (East), Multnomah (East), and Hood counties STEVEN SCARDINA 503.718.1495 SScardina@OregonRLA.org WILLAMETTE VALLEY, CENTRAL & SOUTH COAST Benton, Coos, Curry, Lane, Lincoln, Linn, Marion and Polk counties
JOEL POMERANTZ Regional Program Manager 541.517.3791 JPomerantz@OregonRLA.org
Baker City
BEND EUGENE Coos Bay Bandon
Roseburg
MEDFORD Ashland
Klamath Falls
CENTRAL & SOUTHERN Crook, Deschutes, Douglas, Jackson, Jefferson, Josephine, Klamath, and Lake counties TIM CASWELL 541.499.2168 TCaswell@OregonRLA.org
Vijay Patel, A-1 Hospitality Peter Roscoe, Fulio’s Pastaria Todd Stromme, Food Services of America Brett Wilkerson, North Pacific Management Co.
6 - Main Ingredient - March 2014
Pendleton La Grande
Oregon City
Lincoln City
Ryan Snyder, Chair, Martin Hospitality Ralph Matt, Vice Chair, Best Little Roadhouse
Hood River
OREGON RESTAURANT & LODGING ASSOCIATION 503.682.4422 | 800.462.0619 | Membership@OregonRLA.org | OregonRLA.org
EASTERN Baker, Gilliam, Grant, Harney, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wasco, and Wheeler counties JENNIFER STARR 800.462.0619 JStarr@OregonRLA.org
PRESIDENT'S LETTER
Is Your Business Positioned for Generation Shifts and Buying Habits? Demographics have always fascinated me. The ability to use this tool to define a business’s customer base or refine a business plan to address the needs of a target market is real and used often by successful operators. Using that data to understand your customers is another great use. In any event, if you aren’t using this tool you should be. In the high tech era we live in, access to this information is certainly much, much greater than it was back in the day. The internet provides you with all sorts of studies and information at a great price – free – to use to manage your business. This issue of the magazine looks at a specific demographic population – the Millennial or Gen Y generation and what their effect on the purchase of alcoholic beverages is today. If you’re in this area of the industry this is must read. I’m sure it will serve you well as you look at your offerings in terms of type, number of options, price and presentation. We hope it assists you in growing your business and meeting the needs of your customer base. We are in a unique spot in the history of our nation as the largest generation in history, the Baby Boomers, begins to retire. This generation has affected nearly every aspect of life during its time on earth. From politics to consumer goods, music to fashion, and entertainment to healthy living, the Boomers have left a huge impact on the world we live in. Now we have the new, largest generation in the Millennials. These are the grandchildren of the Baby Boomers and they have their own unique view of our world. They are the first generation that has grown up with all of the high tech equipment and toys that are so much a fabric of our lives now. As a result, that fact played a large part in how they communicate and interact with one another. Texting, tweeting, messaging on one’s Facebook wall, and other social media tools are all unique ways of staying in touch with their peers that their grandparents didn’t have and don’t understand. However, as a business person you really do have to understand and utilize all of these tools to be a success now and certainly in the future.
ORLA is using demographic information to position itself for the future too. We are in the midst of discovering what exactly the younger generations expect from their trade association to ensure we are properly positioned to provide it in the future. Most trade associations were developed for the Baby Boomers and prospered due to the fact that Boomers joined and supported their association as the right thing to do. The new technology has made information available to everyone via the internet taking away another key service originally provided by associations. The younger generations communicate much more frequently via the new technology making industry functions provided by associations as a general meeting place for industry peers obsolete. As you can see a reshaping of ORLA’s value proposition is needed and underway. Is your business in the same position as ORLA? Still viable, still performing well but needing to make sure that you are positioned to serve the future customers as well as you’ve served your long term customers. If you’re not sure, look to the demographic makeup of that customer base as a basis for any changes you’re considering. You’ll be glad you did and you’ll gain a better understanding of, and appreciation for, those customers.
STEVE McCOID, PRESIDENT & CEO, OREGON RESTAURANT & Lodging ASSOCIATION
OregonRLA.org - 7
ORLA ADVOCACY UPDATE
2014 Session Coming to a Close
T
he 2014 short legislative session is coming to a close, and to be blunt, very little was accomplished. This was Oregon’s second “short session” since voters approved a measure to hold annual sessions. Some lawmakers are talking about going back to voters to see if they want to continue the annual sessions, given the fact that only a few policy items were actually addressed. The main focus of this limited session centered on the state budget. A recent revenue forecast added about $100 million in additional property tax revenues, which will automatically go to local school districts; and just under $100 million in general fund revenues, which will be used to cover some shortfalls in the Oregon Corrections and Oregon Health Authority budgets. There were also several bonding authorizations passed for Oregon Colleges and Universities. The two big policy issues that have been kicked around in the media also got kicked around in Salem. These included the I-5 bridge project, also known as the Columbia River Crossing, and the Oregon Health Exchange, known as Cover Oregon. The Columbia River Crossing passed during the last legislative session, and was supported by most business organizations. But following Oregon’s approval of their portion of the funding, the State of Washington did not approve their part of the bridge. Supporters of the bridge went to Salem with a few Oregon-only options, which included various ideas such as tolling and bonding. Legislators did not seem to have an appetite for the “Oregon-only” idea, so for now it does not look like a new bridge will be built in the near future.
8 - Main Ingredient - March 2014
Cover Oregon, on the other hand, cannot be set aside in the same fashion. The failed web portal for the Health Exchange for the Affordable Health Care Act must work or the State will probably be required to use the Federal Exchange. Currently people entering the Exchange are applying and being signed up manually – the old fashioned way – but many lawmakers are frustrated because the government has invested almost $200 million in a program that does not work. There were lots of hearings and speeches on both topics, but at the end of the day nothing really happened. Oregon’s web exchange will work for Oregonians at some point, but when and at what cost to taxpayers are unknown as of now. The political questions associated with this issue: are voters upset with the way it’s unfolded and who do they blame? The answers may come in November. The issue of statewide paid sick leave was not discussed during the short session as we expected, but it will be brought up during the 2015 full session. And, with ballot measures coming this year on distilled spirits, marijuana, corporate taxes and drivers’ cards, there may be fallout come the next legislative session. We may look back at this 2014 short session and say, “Remember how nice it was when the Legislature didn’t do anything?” | Bill Perry If you have any questions or comments, please contact Bill Perry at BPerry@OregonRLA.org.
ORLA ADVOCACY UPDATE
Minimum Wage
R
ecently, on Sunday February 23, 2014, The Oregonian published an editorial on minimum wage. The ending paragraph of the article was very well put. It read, “So maybe it would be good if the minimum wage debate brings more attention to Oregon. What policy-makers would see is if they want to make real progress on reducing poverty, restoring the middle class and energizing the economy, the minimum wage is little more than a political diversion.” While there is a lot of rhetoric on both sides of the minimum wage debate, raising the minimum wage actually gives little buying power. It creates a reduction in hours among lower skilled workers, and the products and services they use increase in cost. And, Oregon remains above the national average in unemployment. The Oregonian editorial also stated, “It’s equally hard to argue that the minimum wage has made much of a dent in poverty. And it clearly hasn’t done much to boost the state’s per capita or median household incomes, both of which lag the nation.” The insight of The Oregonian that “the minimum wage is little more than a political diversion” is a longstanding tactic of the unions. Before the 1996 minimum wage increase was on the ballot, the Oregon AFL-CIO put out a request for proposal on August 7, 1995 and the reason for the RFP stated, “In order to combat this hostile electoral and legislative climate, our campaign will … force our opponents to expend significant resources fighting laborbacked initiatives that will benefit working people.” We have clearly seen that the government employees benefit packages have been costing the State billions of dollars – that’s billions with a "b" - in unfunded liabilities, so the unions indeed need a diversion. If the backers of higher minimum wages wanted to direct help to people living solely on minimum wage, they would address it through the legislative process and try to reach meaningful compromise. There
are provisions in the Federal Fair Labor Standards Act, and in 40-some states that would help businesses manage their hours as it relates to tipped employees and minors entering the work force. Most people listed as minimum wage workers in Oregon are either tipped employees making and reporting over $20 an hour in combined income, or minors who live with their parents and are gaining much-needed work experience. In Oregon we have one of the highest unemployment rates in the country, and the unemployment rate for minors is even higher. But the unions’ outrageous benefit packages and threats of strikes are creating problems in schools and local economies, and the public is becoming frustrated with the escalating costs. So when the unions need a political diversion, minimum wage is their old go-to topic. It creates management concerns with payroll, employee hours and price increases, but the public stops talking about the real issues. Organized labor has not been able to deal with private sector issues, so union growth has primarily been in the government sector. Unions and policymakers that spend time on minimum wage are continuing down a path of lost focus and lost hours. If the unions concentrated on matters that grew the economy, all citizens would benefit. Minimum wage workers do not join unions; they are primarily young, inexperienced individuals just entering the work force. Income growth will come from manufacturing jobs and higherskilled workers, and those people are the ones that join unions. We all need to focus on job creation and income growth, and not merely the same old “political diversion.” | Bill Perry If you have any questions or comments, please contact Bill Perry at BPerry@OregonRLA.org.
OregonRLA.org - 9
ORLA ADVOCACY UPDATE
Under ACA Defining Full-Time Has Major Impact on Scheduling and Coverage Costs.
I
n less than 12 months, employers will be required to comply with key elements of the Affordable Care Act (ACA). This issue has consumed much of the policy discussion of late at both the federal and state levels. Members and staff of the Oregon Restaurant & Lodging Association have travelled to Washington, DC and to Salem in an effort to address a few of the fundamental concerns we have with the way the law is written. We’ve spelled out what we believe will be the potential impacts this immense law will bring about. But whether folks agree with the law or not, it was clear that when President Obama won re-election, the law was here to stay. One of the reasons why industry operators have not continued to provide healthcare plans to all of their employees is that as costs increased, employees did not want to cover their portion of the premium. As more employees opted out over the years, businesses could not meet the participation requirements to offer a plan. This is why many employers went to management-only healthcare plans. Under the new law, if participation requirements stay the same and costs continue to rise, many employees would rather pay the fine than pay their share of the premium. One of the law’s most visible changes is defining employees who work 30 hours 10 - Main Ingredient - March 2014
a week as “full-time.” Employers across the country will be forced to accept this arbitrary definition, despite an almost universally accepted definition of a 40-hour week as full-time. Additionally, a 30-hour-per-week employee is even less likely to be willing to pay for coverage. If the benefit cost for coverage is the same to an employer for both a 30-hour and a 40-hour employee, the labor cost of health insurance to the employer could be more than $1.00 per hour higher for the 30-hour employee. Employers will be forced to change the number of hours scheduled for their employees. One factor that has always made employment in the hospitality industry attractive to young parents and college students is that the work can be part time and provide a flexible schedule. But the ACA requires that employers with 50 or more full-time employee equivalents offer health insurance to all employees who work at least 30 hours per week, or pay penalties. It also means that employers and employees will lose the scheduling flexibility that draws millions to the industry. Because of the high costs of health insurance, many employers will have no choice but to place limits on the hours employees work, restricting growth opportunities for both businesses and employees.
The good news is that Congress can still act to provide employers and employees relief from the health care law’s 30-hour definition of full-time, and in doing so, preserve the ability of restaurants to grow and create jobs. In fact, the House Committee on Ways and Means is holding a hearing on the issue to examine the impact of the 30-hour definition and the need to address this problem. Small employers can also access plans through the exchange system, but employers with more than 50 employees cannot. If insurance companies cannot alter their participation requirements under a business insurance plan, then large employers should be allowed access to plans under the exchange as well. There needs to be some corrections to the law if the Administration wants the Affordable Healthcare Act to work. If employers can’t offer affordable plans to their workers, then the number of uninsured workers will not decline, and costs will continue to escalate. | Bill Perry If you have any questions or comments, please contact Bill Perry at BPerry@OregonRLA.org.
STATE HEALTH EXCHANGE OPEN ENROLLMENT October 1 - March 31, 2014 All Individuals in the Country Are Required to Have Health Insurance or Pay a Penalty Starting January 1, 2014. Do your employees know their options? Who will they turn to for answers? Garth T. Rouse & Associates has been an endorsed provider of Oregon Restaurant & Lodging Association for over 30 years. Their staff will come to your workplace and conduct a meeting for all of your uninsured or individually insured employees. The meeting will take no longer than 20 minutes to give them the three pieces of information they need to make an informed decision; • What is the penalty? • How much does insurance cost? • Are they eligible for a subsidy and how much would it be? Employees with individual plans may be eligible for subsidies under the state exchange. Any employees who want to get enrolled and avoid the risk of penalty can take another 30 minutes to get signed up and have their questions answered. The meeting will cost you nothing (other than some staff time) and would be a goodwill gesture to your employees while potentially heading off questions that you don’t want or are not equipped to deal with.
To Schedule a Meeting or Ask Questions Contact Garth T. Rouse & Associates at HealthInsurance@profben.com or 1.800.523.3316.
For More Information Visit: ORLA’s Online Healthcare Center
OregonRLA.org/Healthcare Online Resources - Use FTE and tax eligibility calculators, FAQs and more.
Stay Informed! - To ensure you receive the latest news and alerts regarding the healthcare law, sign up online! Ask a Healthcare Expert- Submit a question
directly to ORLA’s healthcare expert, Garth Rouse, via email.
OregonRLA.org - 11
Tips to Build Business Mixing Tech with the Latest Trends is a Recipe for Success.
W
hat’s the best way to find out what’s on-trend and profitable for your business? Take the time to talk to hundreds of local restaurant operators and owners. We are fortunate to have the opportunity to have meaningful discussions with hundreds of customers throughout the year. “Enlightening” is one way to describe the challenges that restaurant operators face every day, and another is “rewarding”. When we are able to talk to so many experiencing successes, it opens many possibilities to finding solutions for those with challenges. Through those discussions we have identified several trends for 2014 that may enhance your business and lead to growing customer loyalty: PROFITABLE ALTERNATIVES – With record-setting cattle prices, chicken will continue to play an important role in menus. We will also see more pork and underutilized cuts of beef being featured. Pork brisket and osso buco as well as chuck flap tail and sirloin flap tail offer nice alternatives!
more sandwiches, wraps and small bites for those “distracted diners” that always have a phone glued to one hand.
HEALTHY ITEMS – Consumers are becoming increasingly health conscious. The health needs of baby boomers, parents wanting to see more healthy options on kid’s menus and the growing awareness of the benefits of healthful eating among millennials are all factors in this trend. There are also more and more requests for gluten-free items. Not just for the dietary requirements, but because of the benefits of overall healthier eating. LOCALLY SOURCED PRODUCTSOperators have to be cognizant of consumers desire to know where food is coming from. The perception of freshness, quality, sustainability, and the support of local businesses and agriculture are all becoming more important to consumers. CONVENIENCE – More and more operators are trying to cash in on the consumer’s craving for convenience. Whether it is featuring quick-to-prepare items for people in a rush for lunch, utilizing technology for speeding up the service process or offering
12 - Main Ingredient - March 2014
ETHNIC INSPIRED DISHES – Indian, Latin and South American inspired flavors are piquing the interest of consumers. Curry, coconut, ginger, yucca, mango and chimichurri are just some of the ingredients that diners are looking for to stimulate their appetites! How does Bahian spiced chicken and beans with yucca mash, Madras lamb curry or chorizo and potato frittata sound? EDGY COMFORT FOOD & MIXED PREP – While there is a growing demand for healthier options, we are seeing more of a backlash against it too. Many diners still crave their creamy, cheesy, high fat goodness. Candied bacon pancakes, braised short rib perogies and putines will surely satisfy any appetite! Also very popular in the Northwest are on-trend preparation methods such as wood-fired grills, special aging and roasting methods, using local ingredients in rubs and sauces, and adding variety to the way foods are served, such as stacking foods high or offering BBQ items on skewers. A little inspiration and imagination will help to keep your business growing. DRINK TRENDS – Even though they are not a new trend, craft beers remain as popular as ever. More and more people are offering ciders on tap too. There is also an increasing popularity
in micro-distilled and artisan spirits. For example, one of the fastest-growing beverage categories is fruit smoothies. Smoothies are gaining popularity for many of the same reasons as teas and juices: freshness, healthfulness, customization and variety. Additionally, a smoothie can be promoted as a meal (replacing breakfast or lunch) or as an afternoon snack! Your fresh fruits can be tropical such as kiwi or mango, or they can be regional such as apple or huckleberry. NON-ALCOHOLIC BEVERAGES – House-made soft drinks using natural ingredients are a great way to differentiate yourself! Many operators are also offering
specialty iced teas. Sweet teas, chai teas and Russian teas are just some of the options we are seeing out there. EMBRACE TECHNOLOGY – The food world has embraced smart phones, mobile applications and the iPad, offering a host of fun and convenient tools for everyone. There are apps for just about every foodie need and desire, including searching for restaurants (Urbanspoon), making reservations (OpenTable), telling friends what restaurant you are dining at (Foursquare), reviewing restaurants (Yelp), finding out what is in season (Locavore), sharing food photos (Foodspotting), and tracking calories (Lose It!).
SOCIAL MEDIA MARKETING – It is becoming increasingly effective to utilize social media to fill seats. Everyone has a Facebook page these days. Savvy operators create content, beyond listing today’s specials, which encourages engagement from their patrons. Accurate information and great descriptions utilizing specific keywords on Google+, Pinterest and Instagram will help promote your restaurant through SEO (search engine optimization). | Mark Sena, Business Resource Manager, Sysco Portland
OregonRLA.org - 13
PHOTOgraphy BY Heidi Janke
Connecting with the Millennials S AV V Y G E N E R AT I O N INFLUENCING THE BEVERAGE BUSINESS
L
ike food and beverages, some things are just meant to come together. For Oregon’s craft brewers, the stars started to align 1983, the year that the state legislature made brewpubs legal. Perhaps just as significant as the birth of the restaurant industry’s newest niche was the first birthday of what would become the largest generation in U.S. history, the Millennials. Also known as Generation Y, this hyperactive future segment of the imbibing populous would start having a profound effect on brewing businesses just 20 years later.
14 - Main Ingredient - March 2014
The mobile Millennials, an adventuresome lot born between 1982 and 2004, aren’t satisfied with the status quo when it comes to beer or any other beverage for that matter. Their seemingly endless desire to experience new things extends from prohibition era cocktails to some of today’s finest wines. Equipped with mobile devices and fingers that can text or fire off a picture in the blink of an iPhone, they can mobilize mobs of customers and have a profound influence on a bar manager’s bottom line.
Equinox Restaurant & Bar
OregonRLA.org - 15
EQUINOX RESTAURANT & BAR LEFT: CRISPY MUSHROOM BITES; fried wontons stuffed with mushrooms, danish bleu cheese and chives, with sweet chile aioli RIGHT: EQ GIMLET; gin, St. Germain elderflower liqueur, simple syrup, lime juice and soda
That doesn’t mean that Millennials are lavish when it comes to spending on adult beverages. Nor are they naïve. “I think the younger generation these days is taking a different position on dining and drinking combinations,” explains Michele Stultz, co-owner of and mixologist at Equinox Restaurant in Portland. For example, Stultz mentions that “happy hours” are hot. “We've noticed that what's going on with the younger folks is more of an interest in dining for cheap, so to speak, but having a nice experience, good ambiance, quality food and quality beverage,” she says. “It's very important for us to not charge an arm and a leg for food and drink. I think that's what's helped us to attract customers, however old or young, and sustain ourselves through some of the harder times and do well during times when the economy is up.” The fact that many in generation “why not?” thrive on experiencing the food and beverage world live rather than on a 16 - Main Ingredient - March 2014
screen certainly hasn’t hurt business. “This generation wants to distinguish itself from others," explains Patrick Bernards, cofounder and chief enthusiast, Bull Run Distilling Company. “They’re not about ‘me too’. They’re more about ‘me first’. They like to be in the know. They like to experiment, being the first among their network of friends and coworkers to discover the next great local whiskey. That’s far more important to them than to say, ‘I drink the same whiskey as you. It’s about creating the fit versus fitting in.’ “The other point about price, given the current economy, is that affordable luxury is still in play. In other words, the bourbon aficionado may not be able to fly to Kentucky to travel the bourbon trail with his friends, but he can build his home bourbon library with some of the finest stock as well as go to the better whiskey bars and craft cocktail bars. That’s affordable.”
Finer wines are not off limits either for Millennials, according to industry insiders. “I think all of us have been surprised by what the data shows,” says Jim Bernau, owner of Willamette Valley Vineyards, located in Turner. “The data clearly shows that as an age group, they are spending far more on a bottle of wine or a glass of wine than their age group did in previous generations. There is this old saying that you don't drink what your dad drank, and that's not true. What we're learning about Millennials is that they're not only drinking wine, they're drinking far more wine. They’re spending more money for it than previous generations at that age, so it's been quite surprising. That's not just true of wine, but it's also true of other specialty beverages − you know, ciders, craft beers.” Not even heart-touching Super Bowl ads can sway this group to switch to the old guard brands. “They are very much into craft beer, microbrews,” confirms Stultz. “I can't tell you the last time anybody
ever asked me do we even have Coors, Miller, Budweiser or even PBR. I don't get any of the college beer. I think there's an appreciation across the board, hands down, for craft beer, and we have six on tap. Nobody has a problem paying $4.50 for a pint of microbrew. I don't think that most people, unless you're really gouging them, are really concerned about the price of their drink.” Robert Rentsch, senior director, brand marketing & portfolio development for Craft Brew Alliance (CBA), which is home to legacy Portland craft beer pioneer Widmer Brothers Brewing, as well as new innovative brands like Omission, which is brewed to remove gluten, says that they are often willing to spend more for something special. “For example, a Millennial might be willing to spend twice as much on unique limited release beers or beer brands that evoke a strong sense of place like a Widmer Brothers Barrel Aged Brrrbon; they’re looking for a story they can connect with,” he explains. “Take a look at what’s happened throughout the beverage industry. Consumers are willing to spend more than they have traditionally in the past. They float in and out of categories based on who they’re with, what the occasion is and what the desired experience is. They might choose a distinctive, bolder beer like Upheaval IPA when they’re out for the night, and then keep the fridge stocked with Green & Gold Kolsch when the buddies are heading over to watch a Timbers game.” Having plenty of options on tap for them to choose from also helps. “Millennials are open to variety,” notes Rentsch. “They’re willing to explore and try new things. That’s not to say that Millennials aren’t brand loyal, as they will support brands that they’re able to connect with emotionally, but brand loyalty isn’t as absolute as it has been with older consumer groups.”
With powerful research tools just a touchscreen away, they can find something that they like quickly. “What's trendy is for people to be into these cool brews,” says Jamie Floyd, owner of Ninkasi Brewing. “You're talking about a generation of people who actually, legitimately grew up with things like cell phones. I didn't even have email in college. So you've got a whole different knowledge base. People’s access to information is incredible, so they can go online and look up what they want about breweries ‒ access to knowledge about those choices. Now, it takes seconds to have an answer to something that you want to know about, and that really magnifies the effect of culture change because there's just so much access to it.” In fact, beverage savvy Millennials often have a preconceived notion of what might tickle their taste buds. “They are more likely to discover an interesting cocktail than ask for a recommendation,” explains Brian Block, partner at Church, a Portland bar and eatery. “Their expectations of products are high, and they are more likely to return feedback. Mobile access allows patrons to look up recipes for obscure cocktails instantly. Previously, information travelled only from the bartender to the patron.” Now the latest information travels from this spontaneous group of consumers to their ever-widening circles of influence. “And there's a lot of social influence,” emphasizes Floyd. “People have a lot more orientation about what's going on around them. People have the ability to see each other doing things. You can meet at the tasting room with your friends, take a snapshot of yourself drinking a beer and put it up online immediately, where in our prior generations, that wasn't the case. They're engaging each other.” Though we won’t know the full impact of the Millennials until the tail end of the generation reaches the legal
“What we're learning about Millennials is that they're not only drinking wine, THEY'RE DRINKING FAR MORE WINE. They’re spending more money for it than previous generations at that age, so it's been quite surprising."
- J i m Bernau
OWNER, WILLAMETTE VALLEY VINEYARDS
EQUINOX RESTAURANT & BAR ABOVE: CORPSE REVIVER #2: gin, lillet blanc, cointreau, absinthe, lemon juice
OregonRLA.org - 17
drinking age in 2025, this demographic of beverage consumers is already flexing its considerable buying power. “If I had to venture a guess of the percentage that come into our tasting rooms and buy, it's got to be represented by at least 25 percent, 30 percent, which is a huge number in my mind,” estimates Bernards. He says that social media is driving them to his front door. “These guys have so much information at their fingertips, and they can influence. Everybody is an author these days, and I think that's just a huge piece of it that we never had.” That intercommunication is having a ripple effect much more powerful than classic one-way marketing campaigns. “They're having quite an impact on brands because of their behavior,” believes Bernau. “I think we're going to see, into the future and as they become middle-aged, these patterns will hold true. That's really where we find our market. Our market for highend Oregon wines is really in that group between the ages of 40 and 65.” Pub operators like Block are tuning in to their younger customers’ preferences right now. “Millennials influence what we are serving,” he reports. “They demand more out of their bar experience. Establishments must be alert to emerging trends when
“They're definitely GOING OUT and BUYING A COUPLE $10 COCKTAILS, just so they can tweet about it or put it on Facebook. It's kind of like a status thing."
-Chris Trenh o l m e
state manager on premise, Northwest Division, at Young’s Market
18 - Main Ingredient - March 2014
designing drink programs for them. They can be brand conscious too, but are changing allegiances from those of previous generations; for example, moving from Jack Daniels whiskey and Marlboro cigarettes to Buffalo Trace and American Spirits.” When it comes to cocktails, no concoction appears too far-fetched for the open-minded generation. “Just when you think you’ve seen them all, you’re hit with a combination you would have never thought would work,” shares Bernards. “Bars use of shrubs, bitters, bitter liqueurs, liqueurs, tinctures, amaro are still trending up. House infusions and barrel-aged cocktails are still fun and interesting, but it’s the use of the secondary and tertiary ingredients that are the focus these days. And the bars that are making their own bitters, tinctures, etc. are on the bleeding edge. I really think there is a lot more to come.” Stultz says that “classy-looking” prohibition era cocktails are hotter than ever with the younger crowd. “It could have to do with value and interest in history at the same time, because when you're ordering craft cocktails of the prohibition era, they're loaded with alcohol,” she points out. “Like a straight martini and a Manhattan tend to have about an ounce more than your regular cocktail does, so there's great value in ordering a cocktail like that. In some ways, it's like getting two for one.” Quantity may be enticing, but it doesn’t trump quality with Millennials. “They know the difference between really bad stuff and really good stuff,” says Chris Trenholme, state manager on premise, Northwest Division, at Young’s Market. “They're not buying the cheap stuff. That's below them now. Now it's like, ‘I want to step up. I'm not drinking that Canadian
whiskey. I'm drinking American bourbon.’ It's good for our business, because we sell more higher-end stuff. “You see this renaissance of classic cocktails. A lot of the old stuff is coming back. They want to learn about it. They're interested in it. It's fascinating. They're definitely going out and buying a couple $10 cocktails, just so they can tweet about it or put it on Facebook. It's kind of like a status thing. ‘I'm at the newest place in town!’ A lot of it goes back to having to be more educated and have more life experiences, things to put on that resume when they get out of college.” Apparently that includes knowing something about even the most inconspicuous ingredients. “You're going to see more of the classic cocktails with big ice cubes,” reports Trenholme. “Some places offer you like five different kinds of ice. They harvest their ice. I've never heard anything like that. I thought you harvest stuff from the ground, but I guess you can harvest ice now too.” It pays to know these and other drinkrelated details. “The guys that work behind the bars, they're very knowledgeable,” he continues. “They've done their homework. They know the history of these distilleries and bourbon houses. They're just more educated. They take pride in it. So when they're getting out there and making a Long Island Ice Tea, there's a lot of thought that goes into it.” According to Bernau, Millennials are even having an impact on his winery from the inside out. “It’s not just on the consumer side,” he points out. “It's also on the service delivery and the employee side. We have very engaged employees who are becoming expert in their fields. Did you see that 10, 15, 20 years ago?”
EQUINOX RESTAURANT & BAR LEFT: CHOCOLATE TORTE with amarena cherries MIDDLE: pan seared DRAPER VALLEY CHICKEN breast with garlic mashed potatoes, braised kale and fontina leek fondue RIGHT: MICHELE STULTZ, co-owner and mixologist holding the QUEEN OF HEARTS: gin, rose petal liqueur, lemon juice, simple syrup absinthe wash
Floyd adds that restaurant staff, from chefs to servers, often learn about his products firsthand. “That's not to say they're not still drinking wines and don't really know and enjoy wine,” he says. “Not too long ago, if you were a chef or a future chef, you would definitely be expected to know a lot about wine. But when they get off of work, you see what cooks are drinking, and they're drinking beer. They already have that relationship. They're comfortable with it, and the more that we can get in early, as they're learning to be cooks and chefs, the more that that can just become a normalized part of their expression.” Nothing goes unnoticed by a segment of the population that grew up processing information very quickly. “This generation
has higher expectations when it comes to choosing a drinking establishment,” according to Block. “They desire the right ambiance and not simply a warm space to drink. Millennials want an experience, not just a drink. They want the space to have atmosphere, appealing décor, architecture, and theme. Their favorite bars need to be at the forefront of cocktail and cuisine trends. To them a ‘dive’ bar must deliver the correct experience, not only a cheap drink, and atmosphere is key.” When a restaurant, bar, or tasting room does deliver, they reciprocate by spreading the word in their social networks. “This generation is influencing each other on what spot is cool and which isn’t, without the business being involved,” he continues. “They want to feel that they are not being
exploited and manipulated by traditional advertising.” Trenholme finds it is hard to predict what will be hot in the future. “Portland is such a funky little town,” he observes. “Once you think you've got it figured out, you don't. You can't listen to anyone at a national level, because this place is unique.” Trenholme remarks that today, “You don't see a lot of things with gin, but gin will probably be cool 10 years from now and everyone will be drinking it.” The only thing certain when it comes to tomorrow is that the changes will continue. “As the largest demographic, the Millennial audience is a definite focus, but it’s important to acknowledge that they will evolve, their needs will evolve, and companies will need to be prepared to address their changing needs and wants,” predicts Rentsch. Block preaches preparing for the present. “If you aren’t appealing to the Millennials, your bar may not survive,” he worries. “A bar’s success depends on its ability to stay on top of trends, and to be conscious of the desires of this generation. The cocktail, beer, and wine programs must be interesting while remaining financially accessible. They want the stories behind the spirits and producers. They want their drinks to be conversation pieces.” Remember that atmosphere matters too. “It’s not just the drink anymore,” concludes Block. “It is about the consumer experience, and it has to speak to Millennials.” Though their eyes may dart from handheld to stein handle, Generation Y is absorbing everything around them and influencing beverages like nobody’s business. | Kirk Richardson
OregonRLA.org - 19
MEMBERSHIP DOESN’T COST, IT PAYS. The Oregon Restaurant & Lodging Association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save millions of dollars each year by using ORLA’s Endorsed Service Providers.
ORLA GROUP INSURANCE PLANS
CREDIT CARD PROCESSING
OFFICE PRODUCTS & SERVICES
ORLA HEALTH INSURANCE PROGRAM
EMAIL MARKETING
NUTRITION INFORMATION
POINT-OF-SALE (POS) SYSTEMS
MUSIC LICENSING
PAYROLL PROCESSING
• Workers’ Compensation • Property & Liability
FOR MORE INFORMATION, CALL JENNIFER STARR AT 1.800.462.0619.
OregonRLA.org
IS YOUR FOOD HANDLER TRAINING SLIPPING AWAY? 24/7 ONLINE FOOD HANDLER CERTIFICATION Fast, easy and valid statewide!
Sure your employees can get food handler certification, but how do you know if they’ve learned it, better yet did they retain anything? Unlike other training programs, ORLA developed the FIRST online training that includes quizzes and videos to help retention. ORLA’s online food handler training helps your staff serve the public safely and minimize risk to your business. Get the state-mandated food handler training your staff needs, on their schedule.
TRAINING THAT STAYS WITH YOU
VISIT OREGONRLA.ORG/TRAINING 20 - Main Ingredient - March 2014
MARKETING BY TEXT? New FCC Rules Explained
M
any restaurants have found success in using mobile technology to promote their latest deals, specials or discounts. But if you plan on using an automated service to connect with a large number of customers at once, make sure you get your customers’ permission in writing before you text or call. Otherwise, you could face hefty fines – or worse, put your restaurant on the receiving end of a class-action lawsuit – under new Federal Communications Commission rules. The FCC rules, effective Oct. 16 under the Telephone Consumer Protection Act, require restaurants and other businesses that send text messages or make phone calls through automated means to obtain “prior express written consent” on paper or electronically from the customers who will be receiving the communications. Previously, businesses just needed to meet the looser standard of obtaining “prior express content” from recipients. Under the new rules it isn’t enough to simply ask customers to sign up for a mailing list or to offer them an option to opt out of receiving messages, says Wilson Barmeyer, an attorney with Sutherland in Washington, DC. You’ll have to make it very clear to customers how their cell numbers will be used. “Prior express written consent is a very specific standard for what kind of consent
you need before you can do any mass text,” Barmeyer said. “The customer’s permission has to be in writing, and signed. They must give their cell number. They can’t be required to consent as a condition of purchase, and the customer has to expressly consent to be called or texted using an automatic caller or dialer.” The potential liability for failing to get express prior written consent can be severe, ranging from $500 to $1,500 per message. The numbers add up quickly, and the potential profits from pursuing violators have caught the eye of plaintiffs’ attorneys. Barmeyer notes that there have been many lawsuits over the years about auto-texting or auto-dialing without consent, but that these cases could escalate now that the rules for getting consent just got stricter. The rules only apply to texts sent via automated means, said Lewis Wiener, also an attorney with Sutherland. “It’s when you’re using auto-dialing (without a live person making the calls), predictive dialing (a form of automated dialing that connects agents to answered calls), a blast text, a blast phone marketing campaign,” he said. “If you have someone actually dialing the numbers, that’s a safe harbor.” This isn’t to say that restaurants shouldn’t use text messages for promotion. But operators need to plan carefully to avoid potential risks. Keep these tips in mind if you plan on marketing via text:
• Don’t work from a list you collected before Oct. 16, 2013, when the rules went into effect. The regulations require explicit consent, not implied consent. You couldn’t claim that a customer consented to be contacted simply because they supplied their number, Barmeyer said. However, he added, mobile technology industry groups have asked the Federal Communications Commission to clarify whether consents obtained before Oct. 16, 2013, are still valid. The FCC has not decided yet. • Consider incorporating consent into the sign-up process for a loyalty or customer-reward program. “Some restaurants have loyalty programs,” Wiener said. “When you ask somebody to sign up, you can say ‘By providing us your cell number, you consent to allow us to contact you. Check here if you want to opt out.’” • You can get consent online, but not by phone. It’s impossible to get written consent over the phone, but you could potentially incorporate it into your online ordering system via electronic signature, Barmeyer said. | National Restaurant Association
OregonRLA.org - 21
KIAUNA FLOYD
Amalfi’s Restaurant , Portland
“I couldn’t imagine operating my restaurant without the protection of ORLA defending my small business interests.” How would you describe your restaurant? One of the first restaurants to bring pizza to Portland, Amalfi’s has been a staple neighborhood gathering place since 1959, also known for unpretentious but classic Italian comfort food, hand-crafted cocktails, rotating beers and ample wine. What is the most important thing you’ve learned as an owner that you wish you knew when you started? Being a third-generation owner, I came into it with my eyes wide-open, knowing some prerequisites included knowledge of plumbing, electrical, maintenance, counseling, motivational speaking, etc. But nothing could prepare me for the 24/7 attention, the complete exhaustion that comes with wearing so many hats, which don’t come off when you get home. Restaurateurs should be recognized by Marvel Comics for their superhuman powers. What advice would you give to a new restaurant owner? Pat yourself on the back for being brave and ambitious. Slap yourself for being brave and ambitious. Treat your staff better than you want to. Keep it Simple, Stupid! KEEP FOOD & LABOR COSTS BELOW 30%. Above all, hold your head high for providing jobs in your community and being an entrepreneur.
What do you see as the value of your ORLA membership? Like baseball (ahem, softball) I wouldn’t dare go up to the batter’s box without a helmet. I couldn’t imagine operating my restaurant without the protection of the Oregon Restaurant & Lodging Association defending my small business interests. There’s a multitude of heavy regulation threatening our business doorsteps any given Sunday. Thank you ORLA for being my voice and representation so I can be more productive.
To see how ORLA can help your business be more efficient and profitable contact member services at 800.462.0619. 22 - Main Ingredient - March 2014
Are You Properly Controlling Your Liquor Liability? LICENSING AND EMPLOYEE TRAINING
A
company hosts an event at your establishment and alcohol is served. One of the attendees overindulges, gets in his car, and drives straight into oncoming traffic on the highway, killing a family of four. The surviving relatives sue for damages, naming everyone connected to the event in the suit, including your facility. How do you avoid a tragedy such as this? When it comes to liquor sales, every hotel, restaurant, lounge, and hospitality establishment must follow state and federal laws. Because laws differ from state to state, businesses must follow individual state liquor laws. Intent of the Law “The Dram Shop Act is intended to place responsibility for damages caused by intoxicants on those who profit from the sale of alcohol … [and] to protect the health, safety, and welfare of the people from the dangers of traffic in liquor.” • The term “dram shop” comes from 18th-century businesses in England that sold gin by the spoonful, called a dram. • Dram shop laws hold retail and hospitality establishments accountable for any harm—death, injury, or other damages—caused by an intoxicated patron. Licensing Each establishment must be licensed to sell and serve alcohol. • Licenses should be renewed and displayed appropriately. • Display proper signage. Signs displaying responsible drinking information, the establishment’s policies, and all legal information must be clearly posted. Make Sure Your Vendors are Licensed and Insured If you hire a vendor to sell or serve alcohol for your event, make sure that the vendor
is compliant with state and local licensing and insurance regulations. Employment Practices Do background checks on new hires to determine whether there are any: • Past alcohol offenses. • Previous serving responsibilities. Ensure Employee Training All employees who serve or sell alcoholic beverages must successfully complete an alcohol server training course before serving. Different states may have different laws or recognize various other agencies or sources of training/certification. Critical Parts of Alcohol Server Training: • Properly checking customer identification and recognizing false identification. • Recognizing when someone appears to be purchasing alcohol for minors. • Recognizing signs of intoxication or alcohol impairment. • Identifying situations that are likely to escalate or lead to extreme intoxication. • Diplomatically refusing to sell to minors and intoxicated persons, and identifying when circumstances are questionable. Training Records • Maintain records, including copies of certificates of the training and date completed for each employee. • Ensure that all employees complete the training within the time frames specified above.
• Who is under 21 years of age, • Who shows signs of being intoxicated, or • Who is at point where he or she is likely to become intoxicated. Consumption of alcoholic beverages by any employee or manager while working is not permitted. • Service of alcoholic beverages by a server who is intoxicated is prohibited. To avoid incidents, employees should be able to provide: • Nonalcoholic drinks and food. • A telephone for contacting a taxi service if a customer is too intoxicated to drive. Recording Incidents Keep a log whenever any of the following occur: • Identification is not accepted. • Service is refused or stopped. • When alternative transportation is offered. • Any violent action by anyone. • When police are called to come to the premises. • Any situation where the manager believes a record may be of value. The principles contained in this material are general in scope and, to the best of our knowledge, current at the time of publication. Liberty Mutual Insurance specifically disclaims all liability for damages or personal injury alleged to arise from reliance on the information contained in this document. | Liberty Mutual Thought Leadership
About Liberty Mutual Insurance Partnering with the Oregon Restaurant & Lodging Association (ORLA), Liberty Mutual Insurance
Procedures for Serving – Basic Serving Policy Alcoholic beverages may not be served at any time by any employee or manager of an insured to any individual:
provides members with insurance programs tailored to the hospitality industry’s needs. Today, the ORLA endorsed program covers more than 1,000 ORLA members and has saved participants over $99 million in insurance costs. For more information, contact your independent insurance agent or call 800.463.6381.
OregonRLA.org - 23
THE LARGEST FOOD AND BEVERAGE
EXHIBITION IN THE PACIFIC NORTHWEST
Northwest Foodservice Show Sure To Banish Those Late-Night Worries
W
hat keeps you up at night? Is it food trends and new ingredients? Are you a chef looking for the newest item that will make your menu genuinely pop? Are you constantly searching for that next great thing? Are you challenged every day to craft a profitable menu so that your business thrives? As a restaurateur interested in a fresh look at the newest food developments and preparation techniques, there is one place you go to find it all. At the Northwest Foodservice Show you can sample the finest wine, cheese, seafood and fresh produce available while networking with enthusiastic vendors who offer products and services that can help to save your restaurant time and money. If all things hospitality-related keep you up at night, then you should register immediately for the 2014 Northwest Foodservice Show in Seattle on April 13 and 14. It is a one-stop shop for hospitality solutions. The Northwest Foodservice Show showcases great equipment like heated holding cabinets, transport racks, dish dollies, carving stations and blast chillers. You can find induction cooking systems, drop-in woks, cook tops and pizza thermal delivery systems. In one booth you will find quality conveyor toasters; in another, gas and electric combination ovens. The show has roll-in refrigerators, outdoor/indoor chairs and tables, glass washers, underbar equipment, backbar, refrigeration
24 - Main Ingredient - March 2014
and bar design companies on display. If it is housekeeping, janitorial, institutional, luggage, pastry, and service carts that you need, the show has those too! Mobile bars, hoods, fryers, rotisseries, food warmers, deli equipment are on display, too. The show will have aqua scrubbers, ice makers and ice flakers, and this is just a small sample of all of the solutions you can find on display. The Northwest Foodservice Show has it all and more.
But despite all of the great deals and alluring new equipment, possibly the best reason to attend the Show is to build relationships with your peers within the hospitality industry. Any business publication worth its salt has written at least one article about the importance of creating lasting relationships within the community
in which you operate. As an attendee, that should be your primary goal: meeting people, vendors, technicians and fellow hospitality professionals in the state. Your objective should be finding out what is working for them, and what has helped your competitors succeed. Many attendees of the Northwest Foodservice Show will tell you that it is the relationships formed with real people that were the most advantageous for them in the weeks and months after the show. It’s the potential to meet the face behind a name and shake hands that makes attending a must for Northwest restaurants and hospitality professionals. If you register before April 4, attendance is free. The price can’t get much better than that. So, what are you waiting for? Visit NWFoodserviceShow.com to register and reap the benefits of attendance at the 2014 Northwest Foodservice Show. If you have attended before, we look forward to helping you renew those special contacts that you have relied on for years. If it is your first time, we look forward to introducing you to the industry at large in the best and most entertaining way possible. Don’t miss out on this year’s foodservice opportunities. Register today!
APRIL 13 - 14, 2014 • SEATTLE, WA WASHINGTON STATE CONVENTION CENTER
PRESENTING SPONSOR:
INTERACTIVE KITCHEN
WATCH, LEARN AND SAMPLE!
SAVE TIME & MONEY....
REGISTER TODAY! FREE ONLINE REGISTRATION
through Friday, April 4, 2014 (or pay $25 at the show).
VISIT NWFoodserviceShow.com SHOW INFORMATION, CONTACT: Orran Greiner, Tradeshow Manager
Interact with chefs as they prepare the latest food trends, sponsored by Sysco.
NEW PRODUCT SHOWCASE
Preview new and soon-to-be released products into the marketplace.
EDUCATIONAL SEMINARS Learn something new in one of many industry seminars. Topics include trends, best practices, controlling costs and team management.
400+ VENDORS
See hundreds of foodservice industry products and services.
THE NORTHWEST FOODSERVICE SHOW IS PRODUCED BY:
at 503.582.9482 or OrranG@NWFoodserviceShow.com
EXHIBITING & SPONSORSHIPS, CONTACT: Lea Ennis, Business Development Manager at 971.224.1543 or LEnnis@OregonRLA.org OregonRLA.org - 25
MANAGE MY RESTAURANT
INCREASE REVENUE DURING OFF-PEAK HOURS.
T
he recent recession did more than adjust people’s spending habits – it also changed how and when they eat. The days of three strictly observed standard meals are now past. As a result, snacking and off-peak food service continue to emerge as growth opportunities for restaurants. Because of financial tightening, more consumers have focused on deals and smaller purchases, including for their food. They’re ordering less during main meals – which can make them hungrier during the day. This makes them graze and snack more often, as well as eat during non-traditional hours. According to Technomic’s 2012 Snacking Occasion Consumer Trend Report, 48 percent of consumers are snacking at least twice a day, up from 25 percent in 2010. As restaurants have adapted to this trend, their share of the snack market has increased from 17 percent in 2010 to 22 percent today. Thirty-seven percent of consumers have broadened their definition of snack to include a wider variety of food and beverages. Sixty-two percent admitted that snacks are typically an impulse purchase as well. If you plan to capitalize on off-peak demand, your aim will be to increase traffic without detracting from peak-hour sales.
MORNING AND MID-AFTERNOON A sales opportunity during the morning breakfast hours is to offer smaller food items such as fresh fruit, trail mixes and bagel bites for later snacking. Many people will eat these snacks before or after lunch or in place of lunch. Downtime between lunch and dinner provides another chance to augment daily sales. Many operators identify 2 p.m. as being close to a big snacking hour. Some fast-casual or quick-service restaurants such as Sonic and Cici’s Pizza will also offer discounted specials from 2 p.m. to 4 p.m. to stimulate off-peak traffic.
26 - Main Ingredient - March 2014
HAPPY HOUR Many restaurateurs are finding the greatest off-peak opportunity to reside in the late afternoon, especially during Happy Hour (typically 5 p.m. to 7 p.m.). The late-afternoon window offers consumers a chance to dine out while remaining budget conscious. Happy Hour–only menus including specially priced cocktails, small plates and appetizers are common. Happy Hour can serve as a bridge to dinner hours as well. The post-recession economic shift has made many restaurants the new bar. More consumers are remaining at one location rather than moving around, making restaurants destinations for a full night out.
LATE NIGHT Late-night post-dinner dining represents yet another potential infusion of revenue for restaurants. The key to success is operating within the right context, as late-night crowds can differ significantly from the rest of the day’s customers. Later diners will often visit your restaurant to extend the night. A good percentage may tend to be younger (18 to 24) and look for a different experience or atmosphere from those who dine during typical dinner hours. Your late-night customers may be arriving from a party, a show or a concert, or a night of libations. To appeal to this group, you’ll want your restaurant to be fun, ambient and affordable during these hours. Restaurateurs will often switch to a simpler late-night menu at around 10 or 11 p.m. The menu might feature more snacks, small plates, appetizers and value-focused food that can be shared. Other restaurants use the time slot to feature fine cuisine or a balanced meal. A late-night menu can reflect items not offered during dinner or scaled-back versions of a chef ’s sophisticated style. The late-night crowd will still expect good service. Consider your atmosphere too. Some restaurants adjust the lighting or play different music. Others – such as Buzz Bakery in Alexandria, Virginia – offer board games to encourage customers to have fun and linger. You can make your restaurant a late-night destination.
Once you set your late-night hours, adhere to them. Don’t close early or change them without notice at the risk of alienating customers. For late-night staffing, assign those who have the stamina and don’t mind the hours and the type of crowd.
STICK TO YOUR STRATEGIES Building an off-peak customer base takes time, effort and patience. Accommodate your customers with the right food choices according to their schedules, budgets, preferences and lifestyles. Step up your marketing and publicity efforts. Build awareness and word-of-mouth through your website, your menus and social media. You can add to your profit margin if you connect with offpeak diners correctly. You might also wind up making them regular customers during other daily meals. | National Restaurant Association
Article provided by the National Restaurant Association. Visit Restaurant.org/ Manage-My-Restaurant for more articles.
IS YOUR ALCOHOL SERVER TRAINING SLIPPING AWAY? 24/7 ONLINE ALCOHOL SERVER CERTIFICATION Fast, easy and valid statewide!
Sure your employees can get alcohol server certification, but how do you know if they’ve learned it, better yet did they retain anything? Unlike other training programs, ORLA developed the FIRST online training that includes quizzes and videos to help retention. ORLA’s online alcohol server training helps your staff serve the public safely and minimize risk to your business. Get the state-mandated alcohol server training your staff needs, on their schedule.
TRAINING THAT STAYS WITH YOU
VISIT OREGONRLA.ORG/TRAINING OregonRLA.org - 27
28 - Main Ingredient - March 2014