EXPECT GREAT FOOD. AND A MENU THAT SIZZLES.
Today, people expect more from their food. From responsible to local to fresh and everything in between – your menu has to keep up. At US Foods®, you can expect more. We have great food and innovative new products, so you can fire up your menu and keep diners coming back for more.
NCRLA BOARD OF DIRECTORS
EXECUTIVE COMMITTEE:
AMBER MOSHAKOS, CHAIR LM Restaurants
BURNEY JENNINGS, VICE CHAIR Biscuitville Fresh Southern
TOM PASHLEY, SECRETARY Pinehurst Resort
JASON SMITH, SECRETARY 18 Restaurant Group
NISHITH “NISH” PATEL, IMMEDIATE PAST CHAIR Beacon IMG, Inc.
JIM BELEY, NC TRAVEL & TOURISM BOARD LIAISON
The Umstead Hotel and Spa
LANCE TRENARY, NRA LIAISON Golden Corral Corporation
LYNN MINGES, PRESIDENT & CEO
FRANK GRAY, GENERAL COUNSEL AND LOBBYIST
BOARD MEMBERS: PATRICK AIELLO Ecolab
ANDY CLARK US Foods
SHERI ERHART CMC Hotels
DAN FREELAND Concord Hospitality Enterprises
PHIL FRIEDMAN
Salsarita’s Fresh Cantina
TIM GOSS Firehouse Subs
DORIS HUEBNER
F & D Huebner, LLC
RUSS JONES Davidson & Jones
SCOTT MAITLAND
Top of the Hill Restaurant, Brewery & Distillery
PINKESH PATEL AAHOA Liaison
SHAUNAK PATEL Parks Hospitality Group
VINAY PATEL SREE Hotels, LLC
GONZA SALAMANCA Gonza Tacos Y Tequila
TOM SASSER Burke Hospitality
IAN SAUER
Summit Hospitality Group LTD
BILLY SEWELL Platinum Corral, LLC DOUG STAFFORD Griffin Stafford Hospitality, LLC
STEVE THANHAUSER Angus Barn, Ltd. CHARLES THOMPSON
JASON SMITH 18
ALLIED BOARD MEMBERS: PATRICK AIELLO Ecolab ANDY CLARK US
Welcome New NCRLA Members
Allied Dickerson Outdoor Products, Raleigh HUB International, Charlotte Salary.com, Cary Salido, Chapel Hill Takeout Central, Chapel Hill Western Business Systems, Asheville
Lodging Courtyard by Marriott Raleigh/Cary Courtyard by Marriott Raleigh Midtown
Courtyard by Marriott Charlotte Southpark Courtyard by Marriott Fayetteville Courtyard by Marriott Greensboro Crown Hotel & Travel Management
Restaurants
Cape Fear Poki, LLC, Wilmington Dive Bar, LLC, Hickory Dive Bar, LLC, Mooresville Haywood Smokehouse, Dillsboro
Henry’s Restaurant, Wilmington
H2 Public House, Cornelius
Imperial Restaurant Group, Raleigh Kipos Hellenic Cuisine, Wilmington
Little Dipper Fondue, Wilmington
Mac’s Speed Shop, Concord
NOFO @ The Pig, Raleigh
Rally Entertainment, Charlotte Venable, Chapel Hill
Vintage Sofa Bar, Winston-Salem
Help Still Wanted
As we close out 2022 and begin a new year, we are thankful for you. Together, we have had a remarkable year on so many fronts.
The state’s $500 million Hospitality Business Grant program, championed by NCRLA, was a historic investment in the survival of our restaurants, hotels, and bars. This was the largest state government allocation for the hospitality industry in the nation. Thousands of eligible businesses that suffered economic losses during the pandemic received one-time payments from the state.
As workforce issues continue to plague restaurants, hotels, attractions, bars, breweries, and other hospitality-related businesses, we have been hard at work helping address these issues. The state legislature allocated $5 million of the state’s portion of the American Rescue Plan funds to NCRLA to support a worker recruitment campaign. NCRLA hosted nine Workforce Roundtables and heard from business owners and operators. Then we hosted six focus groups with workers and potential employees. The results from these sessions are outlined in this issue and will be used to create a hospitality worker recruitment campaign for 2023.
In addition, the NC Department of Commerce has contracted with the NCRLA Foundation to administer a $1.1 million hospitality workforce training program.
bars, breweries,
The training program will offer formal training and certifications to help attract, expand, and retain talent needed to fuel NC restaurants, hotels, and other hospitalityrelated businesses. These courses will be available on NCRLA’s website.
Our advocacy efforts have been equally successful. Together with our partners from the National Restaurant Association, we raised more money than ever before at our Manteo to Murphy PAC fundraiser in October. These funds will help us continue to support policymakers and state leaders who champion the hospitality industry.
As we begin 2023, we look forward to seeing you soon at our NCRLA events, regional meetings, and golf tournaments. Mark your calendars now for NCRLA’s Stars of the Industry in February, Chef Showdown in August, and Manteo to Murphy in October.
As we begin the new year with a positive outlook, we want to encourage you to take advantage of all the benefits that NCRLA members enjoy. We offer a variety of businessbuilding resources, many of which you can find online at NCRLA.org.
We are always here to support you and help your business grow.
At Your Service Volume 12, Issue 1
An official publication of the NC Restaurant & Lodging Association © 2023
STAFF
President & Chief Executive Officer LYNN D. MINGES
Vice President of Communications & Business Development CHRIS MACKEY
Vice President of Government Affairs ISABEL VILLA-GARCIA
Vice President of Finance and Operations SHELLY EUBANKS
Director of Membership NATALIE COX
Director of NCRLA Foundation & Workforce Development KECIA POLING (TAYLOR)
Executive Assistant JENNA DAUGHERTY
Digital Communications Manager NATE ROBERTS
Communications, Development & Events Coordinator INEZ NICHOLSON
NCRLA Foundation & Workforce Development Coordinator KATIE PARKER
Food Safety and Lodging Regulations Specialist CAROLYN K. GRIFFIN
Editor SHANNON FARLOW Designer TRACIE EUBANK
BUSINESS OFFICE
222 North Person Street, Suite 210 Raleigh, NC 27601 Phone: (919) 844-0098 Website: NCRLA.org
For advertising and sponsorship inquiries, contact Chris Mackey, Vice President of Communications & Business Development, at cmackey@ncrla.org.
Published by Farlow+Co, LLC
/NCRLA @NCRLA
Or search North Carolina Restaurant & Lodging Association
As workforce issues continue to plague restaurants, hotels, attractions,
and other hospitality-related businesses, we have been hard at work helping address these issues.Amber Moshakos NCRLA Board Chair Lynn Minges NCRLA President & CEO
UPCOMING EVENTS
Network with hospitality industry leaders at one of NCRLA’s upcoming events.
Learn more at NCRLA.org
January 30
NCRLA Annual Meeting
10 a.m. – 11:30 a.m.
NCRLA Corporate Office Raleigh, NC
January 30
NCRLA Board of Directors Meeting
12 p.m. – 1 p.m.
NCRLA Corporate Office Raleigh, NC
February 20
Asheville Chapter Meeting
Time and Location TBD
February 21 Charlotte Chapter Meeting
Time and Location TBD
February 27
Stars of the Industry Awards
5:30 p.m. – 7:30 p.m. Sheraton Imperial Hotel Durham, NC
March 7
NCRLA Foundation Board of Trustees Meeting
10 a.m. – 11:30 a.m. Virtual
March 19 – 21
North Carolina ProStart Invitational NC Central University Durham, NC
April 10
Charlotte Regional Golf Classic 9 a.m. – 4 p.m. Rocky River Golf Club Concord, NC
May 2 – 4
National ProStart Invitational Washington, DC
May 20 – 23
National Restaurant Association Show Chicago, IL
You’re likely eligible for up to $26,000 per employee in Employee Retention Credit (ERC) cash. And the NCRLA wants to make sure you collect every penny.
Presenting the Easy ERCTM
We’ve partnered with Adesso Capital—a firm that specializes in ERC filing for the hospitality industry—to make it easy for you to claim your ERC cash. Don’t
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Adesso’s expert CPA team then goes to work to prepare your ERC and file it with the IRS.
You may then choose to receive up to 50% of your ERC cash within days with an advance against your ERC payout.*
Scan this code to visit the ERC Support Center now
*ERC Cash Now is a loan product funded via one of Adesso Capital’s financing partners. Adesso Capital is not a lender. Rates, terms, and conditions are determined by the lender and are subject to change at any time until a loan documentation is completed. All products and services are subject to eligibility and other conditions and restrictions. All terms, conditions, and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees, and restrictions may apply. Not valid in all states.
Easy ERCTM and ERC Cash NowTM are trademarked by Adesso Capital.
Restaurant employment declined sharply during the COVID-19 recession in spring 2020, but then rebounded in late 2020.
Despite this partial recovery, as of 2021, the number of restaurant workers in North Carolina was still below its pre-pandemic level.
What Happened to North Carolina’s Restaurant Workers After COVID-19
By Andrew Berger Gross, Senior Economist, NC Department of Commerce, Labor & Economic Analysis DivisionWe all know how difficult it is to find restaurant workers these days. We see it in the “Help Wanted” signs hanging on the front door of every restaurant on Main Street.
We hear it from employers: according to our recent Employer Needs Survey, 87% of hospitality employers in North Carolina say hiring has gotten harder since the start of the COVID-19 pandemic.
And we see it in the labor market data: in 2021, the number of job openings for food service workers reached an all-time high in North Carolina, but restaurant employment remained below pre-pandemic levels as employers struggled to fill open positions.
We looked at data from the North Carolina Common Follow-up System (CFS) to determine what happened to all
those people who were working in North Carolina’s bars and restaurants prior to the COVID-19 pandemic and explain why it has been so hard to hire restaurant workers in recent years. The number of North Carolina workers primarily employed in the Food Services and Drinking Places sector (“restaurant workers”) increased by around 18,000 between 2017 and 2019. Restaurant employment declined sharply during the COVID-19 recession in spring 2020, but then rebounded in late 2020. Despite this partial recovery, as of 2021, the number of restaurant workers in North Carolina was still below its prepandemic level. Our state had 504,000 restaurant workers in 2021—around 39,000 fewer than the number we’d expect if restaurant employment had continued to grow at its prepandemic pace.
What happened to North Carolina’s 39,000 “missing restaurant workers”?
When comparing the 2019–2021 decrease in restaurant workers to the 2017–2019 increase:
• Nearly half (47%) the 2021 shortfall in restaurant workers is accounted for by an increase in individuals leaving the restaurant sector to work in a different industry.
• Around one-third (32%) is explained by an increase in individuals leaving the workforce entirely.
• The remainder is due to workers staying on the sidelines: fewer employed workers transferring to the restaurant sector (19%) and fewer individuals entering the workforce (3%). Workers who left the restaurant sector following the COVID-19 recession tended to shift into the same industries where former restaurant workers found employment prior to the recession, such as Administrative and Support Services; General Merchandise Stores; Professional, Scientific, and Technical Services; and Food and Beverage Retailers.
While restaurants had a hard time filling open positions during the first two years of the COVID-19 pandemic, more recent evidence suggests hiring conditions have improved since then.
To find out which industries hospitality employees shifted to during and since the pandemic, go to the NC Department of Commerce’s website and look for the blog from September 23, 2022.
Some Left the Industry, Some Left the Workforce, Others Stayed on the Sidelines Shortfall in Food Services and Drinking Places employment in North Carolina (2021)
39,000 missing restaurant workers in 2021
NCRLA ELECTION UPDATE
NCRLA Hospitality Industry Champions Win Big on Election Night
NCRLA-supported candidates who advocate for our state’s hospitality industry won big in November’s midterm elections, with 92% of NCRLA PAC-supported candidates winning their elections. NCRLA backed 36 bipartisan candidates in the general election. The NCRLA Advocacy Fund supported 14 bipartisan candidates through independent expenditures. Between the two funds, only four candidates that we helped lost their races. These decisions by NCRLA’s PAC and Advocacy Fund Boards place NCRLA in a position of political strength for the upcoming legislative session. Overall, NCRLA invested more than $500,000 in the 2022 elections at both the state and federal levels to elevate the hospitality industry’s political influence.
North Carolina’s 2022 Midterm Results Recap
In the United States Senate race, Congressman Ted Budd defeated former Chief Justice Cheri Beasley, 57.08% to 50.71%. North Carolina’s delegation to Congress will have a different split than in years past, with seven Republicans and seven Democrats winning their races. There is currently a nine-tofour Republican split in congressional representation. This is a major gain for NC Democrats due to redistricting changes and a new congressional district.
In the State House, Senate Republicans achieved a supermajority winning 30 of the 50 seats. However, House Republicans missed a supermajority by one seat winning only 71 of the seats. This means that should Governor Cooper decide to veto any legislation, that veto would hinge on holding every Democrat in the House together. That also
means Democrats in the House will have to show up to every single session vote, or else overrides will likely be called up to a vote in their absence. This change in dynamic will make the passage of legislation much more volatile, but will likely prevent sweeping social changes.
Republicans also took control of the North Carolina Supreme Court. With the addition of Trey Allen and Richard Dietz, Republican justices now have a five-to-two majority for the first time since 2016. Due to the way NC Supreme Court races are staggered, Republicans are guaranteed a majority on the court until at least 2028. During this time, the Supreme Court could see important cases related to voting rights, redistricting, education spending, abortion, and more.
Upcoming Legislative Session and Redistricting
The legislature is slated to return for the long session in January. They were also scheduled to come back for mini-sessions in November and December to address pending issues, like Medicaid expansion, but have now pushed those decisions to the new year. Come January, a number of top issues will likely be top priority, including Medicaid expansion, education funding from the Leandro case, further personal income tax reform, and the current election maps. NCRLA is working with our Government Affairs Committee to create the hospitality industry’s legislative priorities for the next biennium. These priorities will be approved or edited at the January meeting of the Board of Directors.
Save the Date for Rally in Raleigh—June 6, 2023
Mark your calendars and make plans to join us on Tuesday, June 6 for our annual Rally in Raleigh at The Merrimon-Wynne House. NCRLA members will have the opportunity to visit one-on-one with legislators. This event will help set the course for important legislative discussions about laws that impact you, your business, and your workforce.
Manteo to Murphy Raised the Roof at the Pavilion at the Angus Barn
North Carolina’s hospitality industry is better positioned than ever for the coming year thanks to our successful Manteo to Murphy PAC fundraiser. NCRLA’s annual event—hosted by Van Eure and Steve Thanhauser from the Angus Barn and Lance Trenary from Golden Corral—was held at the Pavilion at the Angus Barn on Oct. 24.
More than 300 attendees, including President & CEO of the National Restaurant Association Michelle Korsmo and Vice President of Public Affairs Sean Kennedy, enjoyed appetizers and drinks prepared by North Carolina’s top chefs, wineries, and breweries.
Throughout the night, attendees bid on amazing silent auction items, including tickets to Carolina Panthers and
Carolina Hurricanes games. They also bid on exciting vacation packages and exclusive wine and liquor pairings. The live auction, hosted by professional auctioneer Justin Swisher, nearly raised the roof off the Pavilion as bidders tried to outdo one another.
This exciting event is an important part of NCRLA’s advocacy efforts each year as we raise funds to support the NCRLA PAC, the NCRLA Advocacy Fund, and the National Restaurant Association’s Restaurant PAC. In fact, North Carolina raises more money than any other state in the nation for hospitality advocacy efforts.
A big thank you to all our sponsors and to those who donated to the event’s silent auction.
Presenting Sponsors
Van
Lance
Gold Sponsors
Bob
Burney
Helen
Ecolab
Billy
Corbett
Sean
Jamar
NCRLA received a grant from the North Carolina General Assembly (appropriated from the American Rescue Plan Act) to administer a North Carolina hospitality workforce recruitment campaign with the goal of assisting the hospitality community in solving the current workforce shortage.
Rebuilding Our Hospitality Workforce
Workforce challenges continue to plague restaurants, hotels, attractions, bars, breweries, and other hospitality-related businesses in North Carolina. With funding made available from the American Rescue Plan, the North Carolina Restaurant and Lodging Association (NCRLA) is working to help address the issue. NCRLA received a grant from the North Carolina General Assembly (appropriated from the American Rescue Plan Act) to administer a North Carolina hospitality workforce recruitment campaign with the goal of assisting the hospitality community in solving the current workforce shortage.
To kick off the process, NCRLA hired a consultant to conduct a series of nine town halls in Charlotte, Asheville, Greensboro, Durham, Raleigh, Wilmington, Greenville, Kitty Hawk, and one virtual session. More than 350 business owners, operators, and key management staff from a variety of restaurants, hotels, bars, and hospitality-related businesses identified their biggest workforce challenges, shared hiring practice solutions they have collectively been using to recruit employees, and brainstormed messaging themes that could be used in a campaign to attract workers back to the hospitality industry.
Results and Recommendations
Business owners and managers reported feeling stressed and frustrated as they struggle getting applicants to show up for scheduled interviews. They specifically mentioned the state’s current work search requirements related to unemployment benefits as a barrier in the hiring process.
To help overcome workforce issues, the most frequently reported change owners made as they recruited workers was to increase pay across the board for employees.
Wages and Benefits
• 80% of respondents increased pay for all employees • 49% increased pay for hard-to-recruit positions • 38% provided signing bonuses • 34% increased benefits or reduced the cost to employees • 19% provided additional time off
As a result of work shortages, many businesses have changed the way they operate, including reducing the range of menu
items in restaurants or eliminating daily housekeeping services in lodging establishments.
Many businesses are turning to technology to solve problems. Raleigh, Charlotte, and Durham have the highest adoption rates of technology, while Asheville, Greenville, and Greensboro had the lowest adoption rates of these tools.
Changes Made to Availability
• 47% of respondents limited offerings
• 46% of respondents limited hours of operations
• 40% of respondents reduced capacity
• 28% limited the days they were open
• 26% reported no significant changes
Owners and operators reported similar themes when it came to recruiting employees.
Biggest Challenges in Recruiting and Retention (Scale of
1 to 10)
• Getting applicants to show up for interviews – 7.5
• Getting people to apply – 5.9
• Getting new hires to show up for work – 5.2
Other Challenges
Owners and operators believe many hospitality employees moved to self-employment opportunities or higher paying
jobs like Amazon. Some moved to office jobs where they could work from home. A smaller percentage had health concerns or just chose not to go back to work in a traditional job with a regular paycheck. To overcome these challenges, participants also brainstormed messaging themes that could be used in a campaign to attract workers back to the hospitality industry.
Campaign Recommendations
• Focus on Personal and Professional Growth
• Celebrate Our Diversity
• Emphasize Culture
• Emphasize Pathways to the Future
• Underscore that Hospitality Jobs are Honorable, Flexible, and Pay Good
• Rehabilitate the Image of Our Industry
• Show a Little Kindness
The next step in the campaign development is to hear from current, recent past, and prospective future hospitality employees. The recommendations from both owners/operators and employees will be used to create a hospitality message and image development campaign designed to recruit workers to, or “back to,” the hospitality industry.
The full report from Owners and Operators is available on NCRLA’s website.
Worker Relief Fund Helps Heart Attack Victim Recover
The NC Restaurant & Lodging Association (NCRLA) Foundation created the NC Restaurant Workers Relief Fund to address the devastating effects on our industry’s workforce due to the COVID-19 pandemic. As we continued to see the need to support the workers in our industry, the NCRLA Foundation transitioned the emergency fund to the NC Hospitality Workers Relief Fund and expanded the opportunities to administer relief for a variety of emergencies, not limited to COVID-19 impacts.
Recent grantees have been able to use funds to help cover expenses when they have missed work due to an illness or needed help with car repairs.
One long-time employee at a Waffle House District Office found himself in need when he experienced cardiac arrest while he was at work. His heart stopped, but his teammates jumped into action with a defibrillator and were able to help him regain a pulse. After spending five days in the hospital recovering, he needed financial assistance to help cover some of his medical expenses.
Since the program began, the NCRLA Foundation has given out more than $1 million to more than 3,000 people in need.
Each applicant is eligible for up to $1,000 in one-time assistance. To be eligible, the owner/operator/manager of the hospitality business must submit the request. Any restaurant, hotel, tavern, or hospitality-related business in good standing can submit a recommendation for financial assistance for any employee in need at any time. The employee must be a resident of NC and must have been employed for at least 90 days by the company making the request.
Business owners can make the request through this a form at NCRLA.org/ foundation/nc-hospitality-workers-relief-fund.
Thank you to all who helped, and continue to help, make a difference for communities across North Carolina.
BEYOND THE CONSUMER: LEVERAGING PUBLIC RELATIONS FOR BUSINESS GROWTH
By Kelly Propst, Vice President, Largemouth CommunicationsWhen thinking of traditional businessto-business (B2B) communications strategies, technology companies, healthcare organizations, or manufacturers may be among the first to come to mind. For the restaurant and hospitality industry, public relations remains an excellent tool for attracting consumer interest, helping to build brand awareness, and driving sales, but it shouldn’t be overlooked when targeting business stakeholders, industry partners, and investors.
There are complementary PR methods that start with identifying key messages and milestones that resonate with a core business audience. For several years Largemouth Communications has worked with Fransmart, a leading franchise development company, to favorably position its portfolio of emerging brands in a way that attracts prospective franchisees. Through media relations, Largemouth leverages businesscentric news milestones, entrepreneur profiles, and storylines to demonstrate momentum, growth, and opportunity.
Technology Leadership: Rise Southern Biscuits & Righteous Kitchen
Founded in North Carolina by the late, beloved restaurateur and chef Tom Ferguson, Rise Southern Biscuits & Righteous Kitchen is known by patrons for its scratch-made, buttery biscuits. This fast casual brand has grown to 17 locations throughout the Southeast and
beyond thanks to its premium, quality menu items. Its franchisees, however, are also attracted to Rise for its nimble store footprint, operational excellence, and technology adoption. To help tackle the labor shortage crisis, Rise took a techforward approach to contactless ordering, including installing a unique, heated locker system and touchscreen ordering kiosk at its 932-square-foot location in downtown Durham. While the pilot program helped streamline the ordering experience for guests, early data showed that it helped Rise increase sales and build tremendous operational efficiencies into its labor model. Largemouth underscored this storyline by announcing the program’s success, accompanied by tangible ROI data based on Item 19 outlined in the Rise Franchise Disclosure Document (FDD). It’s no surprise that existing franchisees were eager to adopt the technology in their local markets, and now every new installation or store opening presents another chance to reinforce Rise as a leader in implementing technology that impacts the bottom line.
Menu Innovation: Curry Up Now
With menu items like Chicken Masala Burrito, Sexy Fries, and Naughty Naan, Curry Up Now offers playful takes on traditional Indian street food. What started as a popular Bay Area food truck in 2009 has grown to become the largest and fastest growing Indian fast casual restaurant in North America. Husband-
and-wife co-founders, Akash and Rana Kapoor, have since expanded their empire to include three food trucks, 20 restaurants spanning coast to coast and several delivery outposts nationwide. As the brand continues to grow, the Kapoors went in search of a trusted leader to take over culinary development and, earlier
this year, revealed Abhijit Kamath as the new director of culinary and flavor. Announcing this new role presented an opportunity to tout the brand’s legacy of menu innovation while signaling the significance of this executive hire for overall franchise growth. Largemouth secured coverage in key trade media outlets like Franchise Times, QSR, and Restaurant News, underscoring Kamath’s responsibilities for ensuring consistent, quality products at every Curry Up Now location.
Largemouth Communications specializes in leading PR strategy and messaging, media relations, social and corporate communications, issues management, brand activation, and more. We stand tall in our skills and services, ready to generate big ideas, big stories, and big impact. LargemouthPR.com
North Carolina has a Curry Up Now on the way! Familyled franchise group VAAP Management is opening at least five restaurants in the Triangle area.
HUNGRY
FOR THE RESTAURANT EXPERIENCE
After a roller coaster ride the last few years, consumers are hungry for restaurant experiences and reclaiming their sense of community According to the National Restaurant Association’s annual survey, despite the booming popularity of off-premises restaurant meals and snacks in recent years, pent-up demand for in-restaurant experiences— socialization, celebration, and culinary exploration is strong. Inflation, however, is changing how customers spend their restaurant dollars in a greater search for value, and operators will continue to promote meal deals, family bundles, and culinary kits that meet at the intersection of craving and budgetary caution.
And although consumers feel inflationary pressures, the cost of groceries is currently outpacing higher menu prices (up 13.0% vs. 8.5% year-over-year in October). Even in inflationary times, consumers want to use restaurants. The challenge for operators is to stay interesting and relevant to attract consumers who are looking to experience food they can’t replicate at home.
Restaurateurs always work to keep menu price increases in acceptable territory, but it’s been hard going over the last three years. Operators know that some of the recent efforts they’ve made to balance cost increases, including streamlining menus and innovating dishes with less costly ingredients, are just practical, and these efforts are reflected in the rankings.
Also, responding to changing customer demand: recognizing that dayparts are blurring. Remote work has profoundly disrupted the concept of set meal periods and the sheer convenience of accessing any kind of meal or snack 24/7 through delivery, curbside pickup, counter pickup, and drive-thru has had an impact on foodservice. The proliferation of hand-held items, bowls, sandwiches, wraps, and new sandwich carriers set up more menu items and meal solutions to go.
Comfort foods and healthier items continue to trend in a classic face-off; consumers are loathe to part with either option.
All restaurant dining is local, and according to the survey, more than 70% of respondents agree that customers want to gather on-premises—as hungry for connection as sustenance. More than 70% also say the chicken sandwich wars are still in play; in the lunch category, they grab two of the top three spots. During the Institute of Food Technologists annual IFT FIRST event in ’22, alternative sweeteners flooded the expo floor, and that trend is reflected in the Dessert category. How menus fit with environment, sustainability, and governance (ESG) is a key consideration for operators who want to build relevance with customers. ESG extends to packaging, sustainable farming, and finding value in—and using up—all foods. And while nutrition and sustainability continue to influence our food system, it’s flavor that sells food and you’ll find myriad instances throughout these lists where globally inspired seasonings and dishes drew votes.
NORTH CAROLINA:
KEY ALCOHOL TRENDS FOR THE HOLIDAY SEASON
By Diego Pesantes, Fintech Data Solutions TeamIt’s the most wonderful time of year! Let’s kick it off by unwrapping last year’s trends and combining it with market data to help us better gather and present insights into what consumers are likely to choose this holiday season.
One thing we know for sure is that consumers are eager to hit the town, purchase their favorite alcohol products, and gather with friends and family to celebrate the spirit of the season.
But whether you specialize in beer, wine, or spirits, the question remains the same: Which type of alcohol products are going to be in high demand and what are the trends that you should be paying close attention to?
To help you meet consumer demand, make better decisions, and maximize holiday sales, here is our list of insights we think you should consider. And don’t worry—we’ve checked it twice. »
NORTH CAROLINA HOLIDAY SEASON MICRO TRENDS
BEER TRENDS
• Import beers are up during the fourth quarter, but topselling beer importers, Modelo and Corona, doubled their summer months average sales in each November and December 2021.
• During November and December, craft beer, which rarely tops sales over domestic brands, was the segment with the highest dollar sales.
• Seasonal beers accounted for the second-largest share of the market in beer styles, trailing IPAs, a big shift when compared to the remainder of the year percentages. So, break out those winter spiced ales and Christmas lagers.
WINE TRENDS
• Sales for regular wine of all flavors nearly quadrupled between November 2021 and January 2022.
• Boxed wine bottles sold five times the total amount they had already achieved during all previous months of the year—a jump from $50K to $250K, directly influenced by the gift-giving spirit.
• Revenue in the sparkling wine segment increased over the holidays as well. Zooming into NC, La Marca Prosecco was the premier consumer choice, tripling in sales from $300k/ mo. in October to a remarkable $900k/mo. for November and December 2021.
• At the head of the NA wine pack, Sutter Home’s FRE alcohol-removed wine had a great start to the year by doubling sales in January. Yet, the California-based winery saw an immediate drop in sales during the following month, before averaging back out in March.
• Forecast: New entrant de SOI, by Celebrity singer Katy Perry, is expected to take a bite out of FRE’s hold on the market.
SPIRITS TRENDS
• Premixed cocktails occupy the largest share of the market. Consumers are opting for ready-to-drinks on-premises because they are familiar with them off-premises.
• Tequila is the spirit of choice for consumers when choosing mixed drinks. Not only has tequila been the spirit with the largest growth throughout the year, but sales also doubled the week of Christmas compared to all other weeks in the season.
• Eggnog-flavored spirits started inclining at the beginning of September last year and didn’t actually begin their downward slope until mid-January.
• “Spiced” was the most common flavor attribute of the seasonal variety.
FINAL THOUGHTS
The holiday season affects consumer purchasing both onpremises and off. From brand packaging to non-alcoholic alternatives, success depends on how effectively and efficiently your business meets the ever-evolving demands of alcohol consumers. When equipped with actionable insights, you can give yourself the gift of prosperity and revenue growth this year. Learn more at Fintech.com.
MEMBER SAVINGS PROGRAM
NCRLA Preferred Providers & Partners
DELIVERY & TECHNOLOGY SOLUTIONS
BYOD: Bring Your Own Data is the Data Correlation Engine that powers Mabel—the world’s first virtual restaurant assist. She helps duty managers make better decisions in the moment with real-time alerts.
DoorDash: Is a technology company that connects people with the best in their cities. They do this by empowering local businesses and in turn, generate new ways for people to earn, work, and live. They started by facilitating door-to-door delivery, but they see this as just the beginning of connecting people with possibility—easier evenings, happier days, bigger savings accounts, wider nets, and stronger communities.
Looking for energy efficiency upgrades but not sure how to pay for them? Duke Energy’s SmartPath™ can help. Get started today. Call 866.380.9580 or email smartpath@duke-energy.com to see if you qualify.
Fintech: Offers industry-leading technology solutions for beverage alcohol management from grain to glass.
iCharge: To meet the growing demand of electric vehicle charging needs, NCRLA has partnered with iCharge to help provide our members with the best-in-class hardware, equipment, and software options available on the market. iCharge provides a fully-managed charging service, including access control, automatic energy metering and billing, and smart load management.
Relay: Connecting your team means more than two-way talk. Relay is creating technology that focuses on innovative, durable, and adaptive ways for hospitality teams to communicate safely and efficiently.
EMPLOYMENT SERVICES AND WORKFORCE DEVELOPMENT
NC Hospitality Jobs: A free job board that is for anyone in the North Carolina hospitality industry. NCRLA is committed to supporting all NC hotels, restaurants, and bars to help our industry fully recover.
North Carolina ProStart: NCRLA supports culinary and hospitality training programs at the high school level. Mentorships and job placements are available.
FOOD SAFETY CERTIFICATION AND HOSPITALITY INDUSTRY TRAINING
American Hotel & Lodging Educational Institute: Founded in 1953 to provide working hospitality professionals with education and training. AHLEI continues to meet the needs of the industry with a variety of hospitality solutions, including online learning, professional certification, and resources for high schools, colleges, and workforce agencies.
Human Trafficking Training: Businesses Ending Slavery and Trafficking (BEST) provides consultation and training to hundreds of hotels focused on reducing human trafficking and mitigating the reputational, legal, and financial risks associated with it. NCRLA members can receive the training for free.
ServSafe Food Safety Training: NCRLA members get a 20% discount on ServSafe food handler, manager, and allergen training.
FOODSERVICE AND BEVERAGE
Got To Be NC: Representing all aspects of North Carolina agriculture, agri-business, and the state’s growing food industry, Got To Be NC is a proud partner of NCRLA to connect chefs and restaurants to local products to continue to diversify, innovate, and strengthen NC’s food and agriculture businesses.
Pepsi: Born in the Carolinas, NCRLA is proud to partner with Pepsi to not only quench your thirst, but to make a positive impact in the NC community.
Shelton Vineyards: Founded in 1999, Shelton Vineyards was envisioned as a new agricultural resource for an area once dependent on tobacco farming. Discover all the “Rieslings” why NCRLA partners with Shelton Vineyards.
NCRLA partners with a number of businesses to provide discounts and resources to support members.
US Foods: As one of America’s great food companies and a leading foodservice distributor, US Foods provides customers with innovative food offerings, culinary equipment, and a comprehensive suite of e-commerce, technology, and business solutions to help increase your bottom line.
HOTEL PERFORMANCE DATA
STR: The global leader in hotel data and performance benchmarking. As an NCRLA member, you are entitled to special discounts on many STR products and services, and access to the monthly STR report.
INSURANCE
HEALTH INSURANCE:
Insurance People: An exclusive health insurance offering, Insurance People is an independent NC-based agency that provides a comprehensive suite of insurance solutions to protect you from the unexpected.
United Healthcare: Offers “membersonly” pricing and healthcare solutions that include affordable virtual doctor visits through Teladoc, individual and family plans that don’t require employer participation, and discounts on home health lab testing services and prescriptions.
WORKERS’ COMPENSATION:
Cerity: A subsidiary of Employers, offers digital, direct-to-customer workers’ compensation insurance policies. They offer a fast, digital, and mobile-friendly experience that can provide instant quotes, flexible and affordable payment plans, efficient claims management, and loss control services, all at your fingertips.
Employers: With more than 100 years of experience, Employers has been providing restaurants and hotels quality services and flexible payment plans that keep NC workers not only working, but working safely.
LEGAL SOLUTIONS
ATTORNEY SERVICES
Blanchard, Miller, Lewis & Isley, P.A.: North Carolina’s liquor industry is dynamic and evolving rapidly, but it is also highly regulated. These attorneys have extensive experience representing breweries and hospitality industry clients before the NC Alcoholic Beverage Control Commission, as well as in litigation involving alcoholic beverage laws and regulations.
Cranfill Sumner: These attorneys help keep your business running smoothly and safely, protect your interests, and give you peace of mind. They assist retailers, hoteliers, and those working with them in matters related to Hospitality Law, Professional Liability, Employment Law, and more.
CLASS ACTION SETTLEMENTS
Class Action Capital: Many hotels do not have the time, resources, or relevant data available to file a settlement claim, and Class Action Capital will work with you to submit a fully comprehensive claim recovery, while minimizing the use of your employees’ time, internal resources, and the risk of errors when managing claims yourself.
TAX CREDIT SPECIALISTS
Addesso Capital: NCRLA has engaged Adesso Capital as our partner offering Employee Retention Credit filing services to our members. Adesso Capital provides concierge financial services to small and mid-sized businesses. When the pandemic drove business into a downturn, Adesso assembled a team of tax experts to help businesses maximize the federal COVID relief available to them. Adesso has helped hundreds of businesses secure tens of millions of dollars in ERC funds.
LIQUOR LIABILITY
Hospitality Insurance Group: When your business serves or sells liquor, it’s always best to play it safe. That’s why NCRLA partnered with HIG to provide the best liquor liability coverage possible to protect establishments in what is known to be a high-risk industry.
MARKETING & COMMUNICATIONS
Largemouth: Words matter! Largemouth has been helping clients in the hospitality industry navigate the maze of communication channels to take their stories to the next level. They help you with PR strategy and messaging, media relations, social communications, corporate communications, issues management, and brand activations.
MUSIC LICENSING
BMI: Broadcast Music, Inc. is the bridge between songwriters and the businesses and organizations that want to play their music publicly. Save up to 20% on annual fees. Call 800-925-8451 or visit BMI.com.
PAYMENT PROCESSING & PAYROLL SOLUTIONS
Heartland Payment Systems: As an endorsed partner of NCRLA and the National Restaurant Association, Heartland offers a complete suite of services, including credit card processing, payroll services, tip and check management, and gift marketing. With Heartland, restaurants and hotels can reduce expenses, enhance and improve operations, and increase profitability.
PRODUCT SUPPLIERS
Ecolab: Around the world, businesses in foodservice, food processing, and hospitality choose Ecolab products and services to keep their environment clean and safe, operate efficiently, and achieve sustainability goals.
FOOD SAFETY AND LODGING REGULATIONS UPDATES
The North Carolina Restaurant & Lodging Association (NCRLA) serves as the leading voice for the hospitality industry on issues relating to hospitality regulations in North Carolina. Ensuring that members are treated fairly and consistently across North Carolina is our top concern. Recently, our members noted that there was confusion surrounding the implementation of new legislation regarding bars. When Senate Bill 470 and HB 768 became law in July 2022, they exempted bar areas in establishments where food is NOT prepared from being inspected by the local health department, yet some inspectors were still including these areas in the inspection process.
When NCRLA intervened, the North Carolina Department of Health and Human Services (NCDHHS) sent an email to local county health departments giving guidance to health inspectors on how to comply and letting them know that bar areas are exempt from inspection and, therefore, should not be
included in plan review, permitting, or inspecting.
Another issue members are experiencing is the increased inspection times caused by the local health departments training new employees during regular inspections. Some of these lengthy training inspections would go through two meal periods, directly impacting daily operations at these establishments. NCRLA sent letters to local health departments asking to rectify the situation and we spoke with NCDHHS. NCDHHS is now training the local inspectors to be more efficient and they will also include this efficiency training in the curriculum of Centralized Intern Training three times a year.
These are just two of the many issues that NCRLA was able to solve and improve for our members. If there are any additional questions, or if there is a concern about how your establishment is being regulated, please contact us at info@ ncrla.org. Additional resources are available 24 hours a day at NCRLA.org. For
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To schedule your FREE energy efficiency review call, visit duke-energy.com/EEreview.
Member Moments
Proudly Recognizing North Carolina’s Hospitality Leaders
GOLDEN CORRAL RECOGNIZES VETERANS ON ANNUAL MILITARY APPRECIATION NIGHT
In recognition of Veterans Day, Golden Corral honored our nation’s heroes with a complimentary meal on Monday, Nov. 14. For the past 22 years, the buffet chain has invited all US service members, retired military, and veterans of each branch of service to take part in their annual appreciation night. In addition, Golden Corral partners with Disabled American Veterans (DAV), a nonprofit organization that provides lifetime support for veterans of all generations and their families, to raise funds through guest contributions. Since its conception, Golden Corral has served six million free meals to military personnel and generated nearly $18 million for DAV.
SHELTON VINEYARDS PARTNERS WITH NC STATE TO PRODUCE WOLFPACK WINES
Shelton Vineyards is growing their partnership with NC State University by adding two new wines to the university’s licensed wine collection. The Dobsonbased winery launched their Hallowed Places Collection with NC State in 2021. The licensed wine partnership program is led by NC State’s Office of Strategic Brand Management in order to highlight the university’s connections to the state’s viticulture economy. The wines are available for purchase from the Shelton Vineyards website and in their tasting room. A portion of the wine sales support student scholarships at NC State.
US FOODS WELCOMES STUDENTS TO THE US FOODS SCHOLARS PROGRAM
Two culinary arts students from North Carolina are among the 18 US Foods Scholars scholarship recipients selected for their 2022 class. Wake Technical Community College baking and pastry arts student Christina Bortnick and culinary arts student Emily Naughton will both receive scholarships of $20,000 to support their continued education and development. The foodservice company launched its US Foods Scholars program in 2017 to provide aid and professional advancement opportunities to students, as well as to address the ongoing talent shortage within the hospitality industry. Since then, more than $1.3 million in scholarships has been awarded to nearly 70 students who are pursuing degrees in fields like the culinary arts, baking and pastry arts, chef training, and business management.
NCRLA MEMBERS RECOGNIZED ON CBJ’S POWER 100 LIST
Charlotte Business Journal revealed their Power 100 list of leaders who are driving growth in the Charlotte area. The list is composed of economic developers, real estate professionals, business operators, and CEOs, as well as a few key figures who champion the NC hospitality industry.
Vinay Patel
President of SREE Hotels, NCRLA Board Member
Vinay Patel’s Charlotte-based company has 25 hotels, including 12 in the region and five within city limits. Patel has been an active advocate for the hospitality industry and its recovery.
Tom Murray
CEO, Charlotte Regional Visitors Authority
JIMMY PEARLS RETURNS TO BRICK-AND-MORTAR ROOTS
A Charlotte restaurant co-owned by NCRLA Chef of the Year Oscar Johnson and friend Daryl Cooper, Jimmy Pearls, has had quite the journey since its conception in 2020. What began as a brick-and-mortar establishment at The Market at 7th Street in uptown, shifted gears to operate as a food truck during the pandemic, has recently returned to their original location. The seafood restaurant pays homage to the owner's home state of Virginia, while also expanding on the Southern African-American cuisine options in the Charlotte area. After first opening in the beginning of the pandemic, Jimmy Pearls customers mainly ordered takeout from the restaurant, prompting them to go on the road in May 2021. During this time, the owners were able to build a clientele that would later patronize their 7th Street location.
Tom Murray is one of the most influential hospitality executives in the state, who has consistently focused on the importance of tourism-related business on the local economy.
Frank Scibelli
Founder and CEO, FS Food Group
Scibelli continues to shape Charlotte’s restaurant scene since his first concept, Mama Ricotta’s, opened 30 years ago in midtown. His portfolio now spans a diverse spectrum of cuisines.
À La Carte
A sampler of hospitality news stories
IRS Advisory Regarding the Employee Retention Tax Credit
The IRS has issued an advisory on the Employee Retention Tax Credit program due to some unscrupulous actors providing bad advice. This is something we anticipated, and it’s exactly why we sought out a vetted partner to help our members claim their ERTC credits. Adesso Capital has already helped nearly 10 NCRLA members claim more than $1.7 million in ERTC credits. Not yet a member? By using their services, Adesso Capital includes a one-year membership to NCRLA if ERTC credits are claimed. Most importantly, they’ll stand behind their work if the IRS ever has any questions. If you haven’t spoken to Adesso yet and there’s even a chance you left money on the table, please let us connect you with them today online or through our dedicated hotline at 888-549-1030.
The Rise of Social Districts in North Carolina
Social districts continue to pop up in various cities and towns across North Carolina. Since the North Carolina General Assembly passed HB 890 during the 2021 legislative session, more than 20 municipalities have implemented or approved a social district within city limits—including Raleigh, Durham, Charlotte, and Greensboro. Popularity increased as cities saw heightened foot traffic, and businesses earned more in taxable sales.
Market Growth of RTDs and Canned Cocktails
NCRLA’s alcohol management partner, Fintech, is tracking the market growth of ready-to-drink (RTD) cocktail sales to suppliers across the country. The sustained success has led to the development of an array of spirit-based premixed cocktails, wine spritzers, and hard seltzers. Combined with the loosening of alcohol restrictions in NC from the ABC omnibus bill, restaurants and bars are likely to see an increased demand for canned beverages within the foreseeable future. According to Fintech’s Competitive Market Analysis (CMA) data, supplier revenue from RTDs hit $769 million in 2021, and is at approximately $922 million so far in 2022.
January is National Human Trafficking Awareness Month
When hotel employees learn the signs of human trafficking, they can become advocates for helping human trafficking victims. NCRLA’s ongoing partnership with Businesses Ending Slavery and Trafficking (BEST) provides Inhospitable to Human Trafficking training to our hotel and lodging members. This partnership and resource is helping North Carolina become a leader in preventing the exploitation of vulnerable people in hotels. To take advantage of this free member benefit, Inhospitable to Human Trafficking training is available for hospitality employees online.
Learn more at NCRLA.org.
Demand for Year-End Hotel Stays Increases
As 2022 comes to a close, AHLA found that hotels are the top lodging choice for those certain to travel for leisure throughout the holiday season. According to a new national Hotel Booking Index Survey commissioned by AHLA and conducted by Morning Consult, 28% of Christmas travelers plan to stay in a hotel during their trip, compared to the 23% who planned to do so last year. The Hotel Booking Index (HBI) score gauges the short-term outlook for the hotel industry. Among those absolutely certain to travel for leisure in the next three months, 54% plan to stay in a hotel, according to the survey.
Restaurants Still Operating on Shorter Schedules
Shorter operating hours among restaurants, bars, and other customer-facing businesses persist across the country. Overall, restaurants have trimmed their weekly operating hours by 7.5%, or 6.4 hours, according to Datassential. Staffing shortages are preventing business owners being able to keep their establishments open longer. Independent restaurants have lost about 7.5 hours per week on average. Compared to 2019, 59% of more than 763,000 restaurants in the United States are operating on shorter schedules.
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