Arizona Restaurant News Jan/Feb by sherry gillespie

Regulars Dish on Why They Like to Eat Out 2400 N. Central Ave. Ste 109 • Phoenix, Arizona 85004 Tel: (888) 661-DINE or (602) 307-9134 www.AZRestaurant.org

88% of adults say they enjoy going to restaurants

74% of adults agree that going out to a restaurant with family and/or friends gives them an opportunity to socialize and is a better way to make use of leisure time than cooking and cleaning up

43% of adults say restaurants are an essential part of their lifestyle

37% of adults think that purchasing meals from restaurants, take-out and delivery places makes them more productive in day-to-day life

27% of adults say that purchasing take-out food is essential to the way they live Source: National Restaurant Association, National Household Survey, 2010

BOARD OF DIRECTORS

CHAIRMAN Michael Monti Mike Head Monti’s La Casa Vieja Fleming’s Prime Steakhouse & Wine Bar Anita Petersen Coca-Cola IMMEDIATE PAST CHAIRMAN Jeremy Schlosser Jeff Schaufel Coca-Cola Tucson Golden Corral Tracy Uffelman VICE CHAIRMAN Alliance Beverage Michael Leichtfuss Ruth’s Chris Steak House PRESIDENT AND CEO TREASURER Steve Chucri Louis Basile, Jr. steve@azrestaurant.org Wildflower Bread Company VICE PRESIDENT OF MEMBERSHIP SECRETARY DEVELOPMENT Albert Hall Jana Shelton Acacia at St. Philips jana@azrestaurant.org Mike Duran Shamrock Foods

In 2011 Arizona restaurants are projected to post a 3.5% increase in restaurant sales, which will equate to $9.6Billion in gross sales receipts. Nationally, restaurants are projected to post $604Billion in gross sales receipts for 2011. PUBLISHER Arizona Restaurant Association

GRAPHIC DESIGN Tiger Type Design PrismaGraphic

EDITOR Sherry Gillespie sherry@azrestaurant.org

ADVERTISING Arizona Restaurant Association

Arizona Restaurant News is published bi-monthly by the Arizona Restaurant Association (ARA), 2400 N. Central Ave. Ste 109, Phoenix, AZ 85004, tel. (602) 307-9134, and is a benefit of membership in the association. Articles do not necessarily reflect the view or position of the ARA. Editorial coverage or permission to advertise does not constitute endorsement of the company covered or of an advertiser’s products or services, nor does Arizona Restaurant News make any claims or guarantees as to the accuracy or validity of the advertiser’s offer. © 2010 All rights reserved. No part of this publication may be reproduced in print or electronically without the express written permission of the ARA.

Larry McManus McManus Construction

Joe Cotroneo Crescent Crown Distributing Jeff Flancer Flancer’s Café Rex Griswold R&R Restaurants Kim Harris Outback Steakhouse

MEMBERSHIP REPRESENTATIVE Debra Williams debra@azrestaurant.org MARKETING AND EVENTS MANAGER Sara Anderson sara@azrestaurant.org GOVERNMENT RELATIONS MANAGER Sherry Gillespie sherry@azrestaurant.org

Shane Hitzeman Pride Restaurant Group

RESTAURANT AGENT Gary Maughan gary@azrestaurant.org

Reed Johnson Macayo’s Mexican Restaurant

OFFICE MANAGER Amanda Diercksmeier amanda@azrestaurant.org

industry partners

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At Your Service 6 Head Table 8 Green Scene 10 AZ On the Fly 12 FEATURE: Tap Into Your Super Saver Hero 14 COVER STORY: YOU CANâ&#x20AC;&#x2122;T HIDE FROM THE IRS 18 Market Fresh 22 Customers & Culture 24 ARAnswers 25 Insurance Insight 26 Health & Nutrition 28 About Your Business 30 Marketplace 31 Fraud Alert 31 What Consumers Want 32 Tip of the Month 36 Events 37 Legislative Update 38 Legal Ease 40 Top 5 42 Food Fashion 44 Advertisers Index 46

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Partnerships Matter By Steve Chucri

he word partnership can have several meanings to all of us. As we jump into 2011 I am excited to share with all of our members the terrific partnerships the Arizona Restaurant Association (ARA) has with our endorsed vendors. Quality of service at times can seem to be a thing of the past and that is unacceptable to our organization and the fine companies we endorse. It’s paramount today that restaurateurs have the right tools at their fingertips to solve any problem that may come their way. The ARA’s endorsed vendors pride themselves on meeting the expectations of our members every time they are called upon to do so. As you know, finding quality, reliable and cost efficient vendors can be extremely challenging for any restaurateur. The ARA prides itself on creating processes each and every year whereby we filter through the best and brightest talent that services the foodservice industry. Given the multitude of needs facing restaurateurs, there seems to be an endless stream of daily headaches that need to be addressed. We can all agree, it’s nearly impossible for

restaurateurs to meet these demands by themselves. The list of needs is comprehensive: credit card processing, payroll processing, worker’s compensation insurance, property and casualty insurance, maintenance and repairs on equipment, phone systems, music licensing, linen services, health insurance, email marketing and even auto insurance. Thanks to our talented and professional team of partners, our members can receive these services for a discounted price. Moreover, members can be assured that the work is done correctly and in a timely fashion. We will be marketing our great group of vendors throughout the year to all of our valued members so you can learn more about them and more importantly, see how they can help you in your everyday restaurant operations. I urge you to call the association office whenever you are in need of service and we will put you in contact with the right company to address your concern. As always, thank you for your valued membership and I wish you a prosperous and healthy 2011.

Steve Chucri is president and CEO of the Arizona Restaurant Association.

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Today’s Special: Grassroots Activism By Mike Head

t is easy, as restaurant owners, to become bogged down in the day to day operations of running a restaurant. But to think that our businesses exist only within four walls is a myopic view that can be the detriment of a restaurant. 2010 wasn’t the best of years in terms of the economy, but the added work and creative steps we took to drive business helped strengthen our resiliency. I leave 2010 with a better understanding that laws, regulations and politics that exist outside of my restaurant, have a way of impacting my overall operations. Never before has government action had such an effect on my bottom line. Fortunately, as Chairman of the Arizona Restaurant Association (ARA), I have an organization that I can lean upon to ensure my rights are being represented in government. However, their representation only goes so far. Elected officials want to hear from community leaders, like restaurateurs, to understand all impacts of proposed legislative initiatives. The ARA creates issue-focused events that allow members to take an active role in the politics of the restaurant community. Last year, on a number of occasions, I sat down with elected leaders and discussed potential pieces of legislation. In candid conversation, those officials explained why they took specific stances on measures that impacted my business. We talked about alternatives to current rules that could help reduce regulatory burdens, such as compliance-regulations in regards to the Nutritional Menu Labeling Act.

I Chairman Alert: NRA Take Action efforts have provided me the opportunity to easily and effectively reach my elected leaders with a well crafted message relaying my stance on particular issues. Get involved at www.restaurant.org.

In 2010, through a variety of ARAcommunications outlets, I learned about healthcare, minimum wage, immigration, and the list goes on. Through briefings and updates I am armed with enough background knowledge to contact my elected official with an effective and meaningful message. Arizona’s restaurant industry is so broad in its reach, means so much to this state and has a direct impact on the state’s economy. Elected officials, therefore, take a vested interest in the concerns of restaurateurs and it is exciting to have their attention. Through multimedia communications about the possible impacts of proposed legislation at all levels of government, the ARA has kept me informed and made me even more aware and appreciative of how important grassroots activism is. This is an exciting year for the ARA. I am happy to take an active role to support their legislative initiatives and I encourage you to do the same. This year, changes are proposed to preserve your business for the future through implementing proactive laws that will thwart future attacks on restaurants. Unnecessary laws with added cost burdens have no place in a recovering economy. It is our responsibility, now, as a group, to take advantage of opportunities and give back by speaking up. I look forward to serving as your Chairman for 2011 and working with Arizona’s restaurant community to strengthen the industry in which we are all so proud to be a part.

Mike Head is operating partner of Fleming’s Prime Steakhouse & Wine Bar in Scottsdale, Arizona.

“One of the very nicest things about life is the way we must regularly stop whatever it is we are doing and devote our attention to eating.” ~ Luciano Pavarotti 8

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NRA Conserve

Mr. Clean Goes

Green ne of the hardest challenges for green-minded restaurants is finding ecological ways to sanitize their kitchens and dining rooms. Chemicals seem to contradict that mission, but potential pathogens aren’t going to give themselves up. They have to be eradicated, and antiseptic cleaners are the proven method. But operators have discovered greener ways of doing the job. The key, they stress, is researching the matter completely. Here’s what some restaurateurs have discovered:

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Check out various options. Garland Taylor, owner of Richmond, Va.’s three Home Team Grills, settled on a device that ionizes and electrically charges water, which in turn kills bacteria. Scrutinize scientific test data. Sodexo required field tests before adopting a greener dishwashing system. Demand proof of a demonstrated performance improvement or reduction in costs, water and energy, advises Matthew Weingarten, executive chef, Inside Park at St. Bart’s, a Sodexo-run cafe in New York City. Consider trade-offs. Some operators are switching from chemicals to devices that use intense heat to kill microorganisms. They might save on cleaning compounds, but they’ll likely use more energy and water, Weingarten notes. Secure employee buy-in. Look into how your staff will react. “That’s absolutely critical,” says Home Team’s Taylor. Sodexo’s Weingarten agrees: “They need to be committed to the new cleaning protocols” and “what you are trying to gain.” Make sure your health inspector understands. A health inspector challenged Taylor’s use of ionized water as a disinfectant. Home Team had to educate the sanitation department.

This article was provided by the National Restaurant Association. For more information visit www.restaurant.org.

Some of our favorite GREEN restaurant products: ENVIROSUDS SOLID HAND DISHWASH DETERGENT ProClean Green EnviroSuds supplies superior detergency for manually washing pots, pans, dishware, cookware, glassware and flatware. Fortified with the highest quality surfactant system for unsurpassed grease removal .Rich long lasting suds stand up to any difficult cleaning task. High detergency level assures sparkling clean results. pH balanced.

AWESOME ProClean Awesome General Purpose Cleaner utilizes the latest environmentally friendly technology available in today’s market and is designed for use in areas from housekeeping to the toughest conditions in restaurant kitchens. This product is 100% biodegradable and phosphate free.

BALANCE ProClean Balance Neutral Floor Cleaner utilizes the latest environmentally friendly technology available in today’s market. No rinsing required, saving water usage, and is safe for all types of floors and most waxes while exhibiting a clean and pleasent fresh floral fragrance. This product is 100% biodegradable and phosphate free.

EcoLab Wash ‘n Walk® Line of Floor Cleaners EcoLab Wash ‘n Walk is a No-rinse, enzyme-based technology that saves time and water and increases safety through increased coefficient of friction. The formulation is biodegradable and more effective than traditional floor cleaning methods.

Wash n’ Walk® No-Rinse Floor Cleaner (2.5-gal) Wash n’ Walk® No-Rinse Floor Cleaner (2.5 gal) Eco-Clean Elite Wash ‘n Walk Enzymatic Floor Cleaner Keystone® Wash ‘n Walk Enzymatic Floor Cleaner

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Money Troubles for Arizona

DUI Checkpoints Criticized

A new report shows that due to previous tax cuts and expanded state programs, Arizona’s budget problems run deep, making fiscal fixes critical to the 2011 legislative agenda. _________________________________

Checkpoints aimed at catching drunk drivers have been criticized by industry leaders citing concerns regarding sending the wrong message about traffic safety as the checkpoints disproportionately target law abiding drivers. _________________________________

Healthcare Repeal will be blocked says Senate Dems

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What’s the Beef with the New Fad Diet

Top Senate Democrats concerned that a Republican effort to repeal healthcare reform is largely partisan, have said that any effort to repeal the law will be met with strong opposition in the Senate. _________________________________

Menu Prices Going Up

The vegan craze is becoming more prominent among diners looking for a way to trim their waistline. Restaurants across the nation are answering the call of this fad diet by offering increased options for no-meat menu items, including Veggie Burgers, grilled vegetable sandwiches and, of course, meat-free ice-cream (wait a second…) _________________________________

According to a National Restaurant Association trends report, value pricing was a common driver of diner traffic in 2010. While value priced menus will continue to be a hot trend, it is expected that menu prices will increase in an effort to regain lost revenues from the down economy. _________________________________

On the Side Restaurateurs are expected to focus more on side dishes this year as green vegetables and carb-loaded potato minidishes are tantalizing diner palates calling for an increase in a la carte items. _________________________________

Consumers can dine more comfortably as President Obama has recently signed a $1.4Billion overhaul of the nationa’s food safety system, with focus on increased government inspections and providing federal regulators recall authority. _________________________________

Starbucks Siren Changes Her Look

Menu Meets Technology

The marketing team at Starbucks is unveiling a new logo in March which takes the Coffee Siren out of the confines of the current logo’s circle as the company branches out in its product offerings. _________________________________

Payroll-tax cut boosts takehome pay 155 million Americans will see increased take-home pay starting this month because of the tax bill signed into law last month. The tax bill reduced the employee’s share of Social Security payroll taxes to 4.2 percent of the first $106,800 employees earn in 2011. 12

Congress Passes Food Safety

Apple’s new innovation, iPad is changing the way we order as bars and restaurants across the nation upload their drink and food menus for diners in order to make their choices readily available and easily scannable. _________________________________

Minimum Wage, Maximum Impact Arizona’s minimum wage workers will receive another boost in their paychecks as the Consumer Price Index (CPI) that automatically adjusts the wage each year went up, dictating a $0.10 increase in the state’s minimum wage. 6 other states will also see an increase in their minimum wage rates.

Consumers Demand Bison Bison farmers in the U.S. are struggling to meet the demand of the increasingly popular bison meat that has been marketed as a healthy alternative to classic red meats. _________________________________

Meat the New Nutrition Label Requirements Beginning in 2012, according to the U.S. Department of Agriculture, nutrition content labels will be required on all meat products. _________________________________

Twitter Popularity Lacking A recent research poll by Pew found that only 8% of surveyed individuals who are internet users are also using Twitter. _________________________________

Happy Birthday Monti’s Monti’s La Casa Vieja in Tempe, Arizona, is preparing for their 55th anniversary celebration. Monti’s was opened by ARA Hall of Famer, Leonard Monti in 1956 and is now run by his son, and fellow ARA Hall of Famer, Michael Monti. _________________________________

Mesa Hoppy About New Business Crescent Crown Distributing Company, distributor of alcohol and nonalcohol products, is expanding its operations to Mesa, in a much anticipated move by the city as it will add jobs and help to revitalize the area.

SEND US YOUR NEWS Arizona Restaurant News welcomes press releases from its members and other industry partners. Send releases to Sherry Gillespie, editor, at sherry@azrestaurant.org.

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Tap Into Your

Super Saver Hero

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Spoon wars? A popular food blog hosted a spirited discussion about including spoons in the silverware roll. Participants weighed in on all sides, from “always include” to “never include” to “servers should automatically bring when needed.” he lesson for food operations: Whatever costsaving measures you consider, be as certain as you can how the majority of your customers will react. So many of the things you can do to save money, though, might even be an improvement in service or perception of “customer care”! Read on.

time (conserve.restaurant.org). NRA and EPA hope to encourage reduction in energy and water usage with measurable bottom-line benefits for those participating. A convenient checklist on the website helps operators identify ways to save power— everything from labeling light switches to cleaning refrigerator condensing coils. There’s even a free Energy Star Portfolio Manager available to help you set and measure your own energy-reduction goals. Doesn’t it help to know that leaving your broiler off one extra hour each day can save $450 a year? If you’re not able to automate systems and equipment, a simple checklist and a bit of employee training could have you cutting costs in plenty of small ways that add up quickly—and considerably. Keeping equipment cleaned and maintained is another money-saving biggie. When your icemaker, walk-ins and HVAC components are all running at top efficiency, you’re paying less to run them. So de-lime that steamer frequently! What’s more, have a consultant evaluate tying the heating and cooling system in with the exhaust system, which can also increase comfort for employees and customers.

Paper Napkins, paper towels, takeaway bags and trash bags are one place to look to trim costs, says the president of a restaurant procurement company. A shift in quality here may not be as noticeable or as dramatic as using inferior ingredients, but ‘down-grading’ may not be the answer. Another option is bulk purchasing or taking advantage of periodic sales. Or finding dispensers that help cut down on the number of napkins and paper towels used. One national chicken chain aims to save $700,000 every year by switching from cardboard sleeves to paper for its French fries. Likely that’s more than your operation will save by swapping to different packaging for a food item, but the idea is certainly worth investigating. On the other hand, casual restaurants that are trying to “go green” have been Doesn’t switching back to washable plastic, it help to know china, glass and metalware for inhouse dining. It can be easier on the that leaving your budget in the long run, saving on broiler off one extra hour garbage and continued disposable each day can save purchasing.

$450 a year? Power The National Restaurant Association boasts that restaurants following the Conserve/EPA Energy Star Challenge and investing in energy efficiency could realize a 30 percent return on these investments over

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People Reducing employee hours during slower times helps lower labor costs for one pizza/Italian chain based in Illinois. And the owner knows exactly how much: $270 per month by cutting one hour per day. Another strategy is to use down time to have staff prepare foods in advance. Examples include cooking and freezing roasts for barbecue at a later date, and packaging cookies for holiday gift sales. And don’t forget motivation: employees should be on your team when it comes to cutting costs. Hold contests with prizes for the best energy-saving suggestion. Consult your employees regularly on ways to save money, and they’ll know you appreciate their input. Bonus: Appreciation also helps keep staff around longer, which lowers your recruitment and training costs.

And Those Spoons? According to one blog commenter, here’s the rationale for not providing them in the rollup: 1) saves inventory, 2) the more silver circulating the more will be stolen, lost or bent, 3) setting tables goes faster without one more element to include or wait for, 4) less work for the dishroom/dish equipment. Agree or not—someone has thought this through! Discovering dozens of ways to save money can be easy if efficiency is often in the back of your mind. Put those employees’ brains to work, too, for even more great strategies. And don’t forget your Shamrock Foods Sales Representative, who’s got plenty of experience and resources.

Plus... There are so many easy ways to cut non-food costs, we just can’t cover them all. But here are few more. + carefully measure cleaning and dishwashing supplies. One restaurant owner cut his usage in half with just that simple step. ---------------------------------------------------------------------------------------------------------------------------------+ switch to low-flow faucets and regularly check for leaks in the water system. It’s amazing how much water is wasted hourly from one small drip…drip…drip… (Remember, saving water also reduces your costs for electricity, gas and sewer.) ---------------------------------------------------------------------------------------------------------------------------------+ cut your waste stream—and your disposal fees—by recycling glass, plastic and cans and by composting food garbage. -----------------------------------------------------------------------------------------------------------+ Switch to single fans instead of multiple units. --------------------------------------------------------------------------------------------------------+ Retrofit windows with reflective film. -------------------------------------------------------------------------------------------------------+ Soak dishes whenever possible instead of running hot water over them to remove food.

Author’s Note: Founded in 1922 and still family owned, Shamrock Foods specializes in the manufacturing and distribution of quality food and food-related products. Visit Shamrock Foods online at www.shamrockfoodservice.com

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Tax day extended to April 18: You get three extra days to file your taxes this year. Emancipation Day, a Washington, D.C., holiday that celebrates the 1862 President Lincoln signing of the Compensated Emancipation Act which freed slaves in the district, falls on Sat., April 16. However, it is observed in D.C. on Fri., April 15. The IRS has therefore decided to extend the tax filing deadline to April 18 in 2011. Under the tax code, filing deadlines can’t fall on Saturdays, Sundays or holidays.

long time ago (well, the mid-80s anyway), there was tax legislation every couple of years. Somewhere along the line, it became a tax bill every year which started to make it harder for business owners to entertain any longer range planning. Now that the Tax Relief Act has passed there have been five bills in 2010 with significant tax components. In some cases, the legislation passed later in the year changes the legislation passed earlier in the year! Unfortunately it is difficult, if not impossible, to plan with any certainty the effects that legislation will have on business owners. With that said, let’s see if we can make any sense out of the past year and how restaurant operators might take advantage or otherwise navigate the troubled waters of today’s environment. Just before the holidays, new legislation brought mostly favorable opportunities for restaurant owners, but the year also brought restaurateurs a lump of coal the size of West Virginia. Let’s review the opportunities first and then conquer the white elephant.

Tax Relief Act of 2010 (TRA) Tax Rates The Administration and Congress have finally agreed to extend the “Bush tax cuts” for all taxpayers. This means the current tax rate structure of 10, 15, 25, 33 and 35% will continue through the 2012 tax year rather than the brackets reverting to 36% and 39.6% (in the case of the top two brackets). In addition, the favorable rates for capital gains and dividends on stock (15%) will continue instead of reverting to 20% and potentially 39.6%, respectively. The TRA has added other provisions that are favorable to individuals through 2011. Since many operators conduct business as flow through entities, these provisions should be beneficial. A non-exclusive list includes an “AMT patch”, as well as favorable rules related to various phaseouts of itemized deductions and personal exemptions.

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Equipment Expensing In order to promote job growth, the proposal also includes a 100% bonus depreciation deduction for fixed assets purchased after September 8, 2010 and throughout 2011. This allows a full write-off for purchases of new equipment during the year. (Please note this is one of the areas mentioned earlier where the most recent legislation actually changed the legislation enacted just a few months ago: The Small Business Jobs Act, passed in September 2010, provided for 50% bonus depreciation in 2011 while the TRA passed at the end of 2010 provided for 100% bonus depreciation for 2011.) In 2012, 50% bonus depreciation is available. While in the past few years profitable restaurateurs have been able to write off all equipment purchases under the recent generous Section 179 allowances, the new 100% bonus depreciation could likely benefit larger operators who have been unable because of the limitations under Section 179. This includes operators who have purchased large amounts of assets every year. In addition, Section 179 primarily benefited profitable operators. Now all operators can benefit from bonus depreciation which is not limited by a company’s profits. That way, operators can create a net operating loss (NOL) to carry back and reclaim taxes from the past two profitable years or to offset against future income. Bonus depreciation effectively replaces Section 179 deductions from September 8, 2010 through 2011. Please note that Section 179 still operates with respect to used equipment and that the deduction is limited to $500,000 for 2010 and 2011. Since many operators acquire used equipment when taking over the location of a closing restaurant, this is still an important point to note. The Section 179 deductions phase out, once over $2 million in assets are acquired. In 2012, bonus depreciation reverts to 50% from 100% so Section 179 once again becomes operative with respect to new equipment. Write-

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offs are capped at $125,000 (as long as less than $500,000 in qualifying property is acquired). This should allow smaller operators to expense most of their shorter-lived fixed assets in 2012 as well. After 2012, the limit drops to $25,000 as long as less than $200,000 in assets are acquired. Leasehold Improvements Another item specific to the restaurant industry is the two year extension (2010 essentially retro-actively and 2011) for the favorable 15-year write-off period (as opposed to 39 year) for qualified leasehold improvements for restaurant property. Since this provision effects the build out of restaurant space, decisions in terms of taking space, building it out and placing it in service prior to the expiration of the favorable rules place a premium on fast action and decision making. The restaurant build out is also available for bonus depreciation as well. A word of caution: restaurant owners might consider holding off on some of the deductions available to keep the opportunity for future deductions. If all fixed assets acquired are written off, there could be nasty tax surprises waiting in the future. Remember that bonus depreciation is the default and a special election is necessary to take slower depreciation. FICA Another goodie specifically for workers is a temporary reduction in the employee’s share of FICA tax from 6.2% to 4.2% for 2011. These rules also affect self-employed operators such as members of LLCs, changing the FICA portion of SelfEmployment (SE) Tax from 12.4% to 10.4%. These savings

equate to a total of $2,136 for those who max out at the FICA limit, which is $106,800 for 2011. Since the proposal does not change the employer’s share of FICA, which remains at 6.2%, it is unclear whether the FICA Tip Credit would be influenced. If so, it would alter the calculation of the credit for FICA taxes paid in excess of minimum wage. The calculation of the FICA Tip Credit has already been affected in 2010. Recall that the 2010 effect on the Tip Credit calculation results from the credit employers were given towards the employer’s share of FICA for newly-hired employees who had been out of work for a certain period of time, generally 60 days. The new law also extends unemployment benefits for another 13 months. If you are having trouble staffing your kitchen now, those problems will likely continue (oops, they told me not to get too political). Health Care Reform Now for that West Virginia sized lump of coal. Passage of the health care reform legislation has caused a great deal of reaction across the country among various organizations and industries. The restaurant industry has been among the most vocal since, in its current form, it will have great impact on their ability to grow. Some pundits have claimed it is the worst legislation this country has ever passed. The legislation is being phased in over time. One opportunity available immediately is a credit for employers who provide or subsidize health insurance for employees. This could help offset the cost of the premiums. Due to phaseouts, only small restaurants with small staffs might take advantage of this credit.

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The Small Business Jobs Act, passed in September 2010, provided for 50% bonus depreciation in 2011 while the TRA passed at the end of 2010 provided for 100% bonus depreciation for 2011.) In 2012, 50% bonus depreciation is available.

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The major impact to employers will begin in 2014. With recent changes to Congress (taxpayers voting with their feet?), no one really believes that the legislation will look the same in 2014 as it does now. That said, a smart operator must plan as if the legislation will not change. At this time, businesses with more than 50 full-time workers will be required to offer coverage or pay $2,000 per person annually as a penalty after the first 30 employees. However, the waiting period for insurance extended to employees stands at 90 days, an increase in the originally proposed 30- and 60day waiting periods. This helps restaurants that suffer from high turnover and may not retain an employee long enough for him or her to be qualified for insurance. For purposes of determining the size of the employer, all employees count. Part-time and seasonal employees must be converted, based on 30 hours per week or 120 hours per month, to full-time employees to determine whether the company has exceeded the 50 employee count. Will this law cause restaurant owners to minimize the number of employees working 30 or more hours per week? It would seem this could be an ideal way to manage the costs of employerprovided coverage since restaurants are conducive to flexible scheduling. Also, it could be that many employers might opt to pay the penalty rather than pay the premiums. Another controversial item in the health care legislation is the expanded Form 1099 reporting requirements. Starting in the 2012 tax year, all payments to vendors in excess of $600 must be reported on a 1099. In the past, only payments in excess of $600 to unincorporated service providers required 1099s. In addition, there are new 1099

reporting requirements on owners of rental properties beginning for 2011 payments. This will greatly increase the compliance burden on all business owners. Although most believe the 1099 reporting rules will be repealed, at least two attempts to do so have already failed. Optimism for 2011 and Beyond The restaurant industry has been hit hard by the downturn in the economy over the last several years. Although Health Care Reform and some other measures are worrisome, there are still reasons for both large and small restaurant operators to be optimistic for 2011 and beyond. The passing of key tax legislation in 2010, particularly the Tax Relief Act, encourages business investment and also allows consumers to keep more of their income, which will help spur more economic activity. This is good news for restaurants as more consumers are likely to have more disposable income in their pockets and will be more likely to dine out more often than they have over the last couple of years. Obviously this is a brief summary as there are many exceptions and special circumstances not mentioned above.

Authorâ&#x20AC;&#x2122;s Note: For more information on the Tax Relief Act and other legislation contact Brad Dimond or Kelly Lynch at (480) 839-4900. Bradley Dimond, CPA, is a Partner in the Scottsdale office of Henry & Horne, and is extensively involved with the planning and compliance aspects of closely held businesses and the respective owners of such businesses. He can be contacted at (480) 483-1170 or BradD@hhcpa.com. Kelly Lynch is a Manager in the Tempe office of Henry & Horne. His areas of expertise include tax and consulting work for a variety of businesses and individuals. Contact Kelly at (480) 839â&#x20AC;&#x201C;4900 or KellyL@hhcpa.com. january/february.11

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Tracks As a restaurant operator, you constantly evaluate your business. You scrutinize food invoices. You monitor labor costs. Yet when it comes to marketing, you may not know which of your efforts work best and which ones do not. or many small business owners, managing advertising, promotions and public or community relations are uncomfortable tasks. These tactics command a significant piece of the budget, and you may question your return on investment. Without a marketing plan, it is difficult to assess success or to modify your approach. To rectify this situation, create an annual marketing plan and evaluate each initiative. Set a budget and determine when you want to proactively communicate with your customers and prospects. Consistency is important whether you use one form of outreach or multiple media. The key is to track the response you get from each campaign, identifying which kind of promotion generates the most traffic and sales. After you outline a schedule, determine the types of communications that you wish to distribute. When designing a print advertisement, e-mail promotion or a direct mail piece, there are many elements to consider. What works for one trade area may not be effective in others. Try a variety of offers using varying media to learn what gives you the most bang for your buck. If your staff is involved in accepting coupons or special promotional pieces, it is important that they understand how to track them. If you have a way to use a code in a computer system, make sure they know to type in the exact code. Although it may seem easier to use the same code each time,

especially if there are multiple offers in the marketplace, this approach will not provide you with an accurate count. Many restaurants require manager assistance or approval to ring out a coupon to ensure that promotions are tracked properly. In addition to maintaining a tally of redeemed offers, track and compare the timing of your various campaigns to your sales figures. This will enable you to determine what efforts are most productive. Donâ&#x20AC;&#x2122;t be afraid to try new offers to see what works best. There are many variables to consider. Experiment with different combinations and monitor which ones prompt patrons to act. However, it is essential to not change more than one element at a time when evaluating a series of campaigns. You need to know what works and what doesnâ&#x20AC;&#x2122;t, but the only way to do that is to know exactly which element affects the results. Some aspects to consider are the offer, design and wording, as well as when and where the offer is placed. In response to your findings, be prepared to modify your communications, delivery mechanisms and timing as needed. Your marketing efforts should be scientific, not emotional. Numbers do not lie. Let the results drive your actions. Advances in databases also allow you to try sending different offers to different audiences. You can send out offer A to half of your database and offer B to the other half, enabling you to learn which one is most effective.

arizonarestaurantnews

| market fresh

Measuring marketing success is more than just the number of responses you receive. You must look holistically at the cost of each particular campaign, as well as look specifically at the cost of each medium that is used. For example, if you get two responses from an ad that cost $100 and ten responses from an ad that cost $1000, you might be inclined to think the latter was the better choice. However, when you consider the cost per respondent, the first offer was more successful as it cost half as much on a cost-per-customer basis. Once you identify a successful ad or promotion, use it as a “control” to compare future initiatives. If something is successful, there is no need to reinvent the wheel. However, it doesn’t hurt to try new ideas to determine if another offer prompts an even better response. Continue to use the control ad for at least half of your marketing efforts, and then test others as well. When a new offer beats the control ad, then that offer becomes the new control against which you can benchmark future efforts. The beauty of measurable marketing is that you don’t have to understand it. You just have to track the numbers and let them dictate what you do with your marketing dollars.

To measure the response to your campaigns, you need to track them. Some ways to make it easy include a:

Specific code for each individual offer Different offer for each individual advertisement Designated phone number to call Specific website to visit

Author’s Note: Jay Siff specializes in one-to-one marketing through his three direct marketing companies: Moving Targets, Birthday Connections and Loyal Rewards. Moving Targets (www.movingtargets.com) is a leading provider of new resident direct marketing programs. Birthday Connections (www.BirthdayConnections.com) focuses on customized birthday promotions and Loyal Rewards (www.LoyalRewards.com) helps restaurants encourage repeat visits through its unique, email-based business marketing service. For more information, contact 800-926-2451 x111 or jay@movingtargets.com.

january/february.11

customers & culture |

Healthy Options Provide Opportunity Healthy eating has gone mainstream. It’s a dining trend now embraced by more than 55% of Americans. So what does this mean for foodservice operators?

oday’s marketplace offers growing opportunity to satisfy consumers’ desires for better-for-you options, as well as to compete with at-home dining among people trying to eat healthier. Patrons are increasingly watching what they eat, and they’re not doing it just to manage their weight but also to manage their overall health. Pop culture is increasing awareness of the health-and-wellness trend through TV shows like Jamie Oliver’s “Food Revolution,” the “Meatless Mondays” initiative supported by high-profile chefs and Michelle Obama’s “Let’s Move” campaign focusing on physical activity. Consumers are turning to menus for nutritional information, as restaurants with 20 or more locations prepare to implement federally mandated menu labeling requirements. Foodservice operators are already taking advantage of the healthy-eating trend by featuring caloric information. For example, Applebee’s offers five entrees under 550 calories, Einstein Bros. Bagel’s now has “bagel thin” sandwiches with fewer calories and less fat, and Corner Bakery Café features “100 items under 600 calories.” The Dairy Queen Mini (half the size of a small 12-oz. Blizzard), Starbucks’ skinny lattes and Planet Smoothie’s lowercalorie drinks are examples of beverages that are now marketed featuring lower calories. Coca-Cola’s launch of Coke Zero™ falls into this trend as well.

You are What You Eat Diners are responding to the realization that “you are what you eat” with three main strategies: 1. Emphasize the positives (fruits, vegetables, organic, natural, fresh, made-from-scratch, heart-healthy, vitamins, antioxidants) 2. Avoid/reduce the negatives (fat, calories, sodium, sugar, carbs, preservatives, chemicals, processed food) 3. Control portion sizes for all dishes, whether healthy or indulgent (small plates, tapas, snacks, appetizers, lunch portions, minis, tasters) Leveraging Healthy Dining Trends For foodservice operators, providing healthy choices is good for the bottom line – and there’s healthy room for growth in this area. Items with nutritional claims account for just 9% of all menu offerings. Key opportunities for restaurants to leverage the healthy dining trend include: Differentiating your establishment from the competition with better-for-you and lower-calorie beverage choices. Helping diners pack on the produce – not the pounds – by offering more fruits and vegetables. Recent additions at major chains include Mediterranean olives at Romano’s Macaroni Grill, fried asparagus spears at Burgerville, lettuce wraps at The Melting Pot and fresh fruit skewers at K-38 Baja Grill. Utilizing seasonal offerings as another point of differentiation and opportunity to highlight fruits and veggies. Think Denny’s White Peach Breeze featuring Sprite®, orange juice and crisp peach flavor during summer months. Establishing appropriate price points. One-third of patrons are willing to pay more for healthier options, but the amount they want to spend is small. That leaves two-thirds of consumers unwilling to pay more. Many of today’s customers want to embrace healthy eating. To do so they need to make good choices. Play your part by providing options that satisfy their desires. The Coca-Cola Company can be part of that solution, offering a diverse portfolio including a variety of no-calorie beverages, juices and juice drinks, coffees, teas, waters and more. Contact your Coca-Cola representative to obtain calorie and nutritional value information for the Coca-Cola beverages you serve or may want to add to your beverage line-up. arizonarestaurantnews

ARAnswers Hair Me Out If a person works as a cook in a restaurant are they required to wear hairnets while preparing food? This is a hairy issue. The short answer is yes. ARAnswers referenced the FDA Food Code and found that it does, in fact, clearly explain that all food handlers “shall use hair restraints, which prevent any possibility of hair entering into food or contaminating contact surfaces.” However, something that the FDA Food Code failed to mention is that food preparers can take this unique opportunity to wear a stylish cover on their heads in lieu of donning the stereotypical lunch lady mesh to cover up the locks. Hairnets are only the first in a long line of requirements for food handlers. Food preparers are also required to maintain a level of hygiene and cleanliness that is on par with superdetective Adrian Monk, providing for the safest and cleanest possible environment for customers. While there are a multitude of additional requirements that we would love to list, we have to make room for our next member question.

bets are off and that employee may buy a drink for the guest (at his own expense, of course). To get you even more drunk with information: it is important to note, that the manager or owner of a licensed establishment may authorize employees to provide a complimentary beverage. Just be sure that she’s in good spirits when you ask.

.................................... Have a question for ARAnswers? Submit your inquiry to sherry@azrestaurant.org or contact the Arizona Restaurant Association at 602-307-9134. NOTE: The information provided by ARAnswers does not constitute legal advice. ARAnswers makes no claims, promises or guarantees about the completeness or adequacy of the information listed above

Additional information for food handler requirements can be found in the FDA Food Code located on the Maricopa County Department of Environmental Health website. ---------------------------------------

This One’s On Me!...or is it? Can a restaurant give away free alcohol to a customer? A neutron walks into a bar and asks the bartender “how much for a drink.” To which the bartender replies, “for you? No charge!” We couldn’t resist. Assuming there are no subatomic particles sauntering through your doors, ARAnswers decided to dig into the Arizona Revised Statutes for clarification. Title 4, the area in statute governing alcohol law explains that bar and restaurant customers cannot be served complimentary beverages from an employee of an establishment if that employee is currently “working.” However, when their shift is over, all january/february.11

insurance insight |

2011 New Year’s Resolution: Assess potential insurance risks to protect your business!

nsurance companies, like most businesses, celebrate capitalism and are driven by the potential to turn a profit. However, an insurance companies’ business model is derived on assessing risks to determine how profitable a policy may be. By assessing risks, providers can ascertain the profitability of specific policy holders based on the severity of potential risks and the amount of money that will have to be paid out if the potential risk becomes an actuality. Restaurants that suffer from higher rates are not necessarily the ones that have a claim, but more the ones that frequently have a claim, referred to as a “frequency issue.” The “frequency issue” is especially prevalent with worker’s compensation claims.

Below are some sample claims that, believe it or not, have happened… A minor and his friend were served a beer at a local neighborhood bar. Shortly after leaving, the underage driver lost control of his vehicle and struck a telephone pole. His friend suffered injuries as a result of the accident. Witnesses later testified that the bartender had not requested proper identification. Suit was brought against the bar claiming illegal service to a minor. The claim settled for $60,000 and expense costs totaled $25,000. --------------------------------------------------A young couple was served several drinks at a popular downtown bar. An hour after leaving the establishment, their vehicle crossed over two lanes of traffic and collided head-on with a tractor-trailer. The driver of the truck was severely injured. Suit was brought against the bar for negligent service and failing to properly train employees. The policy limit of $500,000 was exhausted and expense costs totaled $50,000.

A young woman and her boyfriend went to a local bowling alley and consumed three pitchers of beer during the evening. An argument ensued, and the boyfriend left the bowling alley alone. A short time later, his vehicle hit a construction worker who was putting cones on the highway. The construction worker suffered a broken pelvis, head injuries and facial fractures. Suit was brought against the bowling alley for negligent service. The claim settled for $200,000 and expense costs totaled $15,000. --------------------------------------------------A customer took one step into the insured building and slipped on the rain soaked floor. The customer sustained a non-displaced fibular fracture and sued the restaurant for $12,000 in medical expenses and lost wages.

A nightclub denied service of alcohol to a patron who appeared to be intoxicated. The patron was later involved in an automobile accident. Despite denying service, the owner of the nightclub was brought into the claim. The nightclub was not found liable, but had to pay $60,000 in defense costs. --------------------------------------------------Vandalism occurred to the insured’s the sign causing $3,000 of property damage to the sign. --------------------------------------------------An on premise power outage occurred causing the insured’s freezer to shut down and the food in the freezer to spoil. An equipment breakdown claim was made for the $5,000 of spoiled food. --------------------------------------------------**Depending on the state, an employer may be held responsible if an inexperienced or untrained employee sells alcohol to a minor, an intoxicated person or habitual drunkard.

Author’s Note: Bar and Restaurant Insurance is a specialty program dedicated to the restaurant industry. David DeLorenzo is a fellow restaurateur that is dedicated to staying on top of industry trends and needs in both the insurance and restaurant industry. David will personally review your policies and is always looking to protect your business, while also saving you money.

arizonarestaurantnews

| insurance insight

Restaurants, because of the broad nature of the business, often make claims for cuts, punctures, falls, slips, burns, sprains, and the list goes on. Claims issues will result in an increase in premiums or a drop in service; therefore it is critical that operators take necessary steps to evaluating their operations to reduce claims and thwart unwanted increases in premiums. In fact there are outside sources that can help look at a restaurantsâ&#x20AC;&#x2122; standard operations to make suggestions on how to improve safety and reduce employee risk, thus reducing claims. In addition, restaurants can contact their current insurance carrier to perform a loss control survey that will help shed light on risk-laden areas of the operation. It is best to look at the relationship between the operator and the insurance carrier as a partnership as neither want to have the blemish of employee injury on their record. Not only does a claim create a paperwork nightmare for the establishment, but it takes necessary staff out of the restaurant, causing additional cost burdens for the operator. Liquor liability claims, while less frequent than workers compensation claims, can be more costly and damaging for a business. Did you know that a restaurateur can be sued for having served a single drink to a patron who then goes to other bars and continues to consume, and eventually gets caught in some legal altercation? Attorneys in a DUI case involving a fatality will ensure that all establishments patronized by the offender are brought into the suit. It is therefore essential that you keep your staff educated in liquor laws and the correct ways in which to serve a patron. A liquor logbook that details interactions with patrons who have refused rides or have been refused service is an excellent tool to protecting your business should any situations come into question.

january/february.11

ANOTHER TIP When was the last time you had your property inspected? Take time to do routine inspections to look for loose wires, clean hoods, safe security, effective and efficient building fire sprinklers, and many more day to day items. Small steps, like simple self inspections or professional cleaning services can provide protection against fire, theft and potential insurance claims. As a restaurateur, you undoubtedly want to focus on food service and consumer interaction without having to deal with the strife and worry of potential risk elements at your establishment. Youâ&#x20AC;&#x2122;re in luck! By putting some simple procedures (described above) in place, the risk-preventing practices will become second nature and a welcome part of your daily operations. If, with all necessary protections in place, an accident resulting in a claim were to happen, with the appropriate documentation and adequate education, the situation will be not be crippling for your business.

about your business |

Plan Ahead to Reduce This Year’s Taxes The key to reducing your income taxes is to plan ahead. Far too often business owners, individuals, and restaurateurs wait until it is time to file their tax return and by then it is too late for many of the tax-reducing strategies. A little organization and planning can lead to significant savings on your income taxes. Listed below are three options to consider when planning your tax reductions. Retirement Planning Restaurant retirement planning is one of the more challenging due to the high employee turnover rate associated with the industry. The success of a 401(k) is largely based on the number of plan participants. A suggestion for potential participants is to advise them their plan is mobile if they are no longer with the current employer. Information like this is critical to increase plan participation and overall success of your retirement plan. If your restaurant offers a retirement plan, such as a 401(k), and you are not taking advantage of it by contributing, you are losing out on a significant tax savings opportunity. Any contributions you make, along with any employer matches, will grow tax deferred until you withdraw the funds when you retire. If you are taking advantage of your 401(k) and plan to increase your contributions, do it earlier in the year in order to increase your savings over time. In addition if you are a restaurateur and do offer a retirement plan to your employees, now is the time to review that plan.

Health Savings Accounts (HSAs) Often fluctuating income for many restaurant employees adds stress when an illness or health expense happens. In order to help avoid a potential cash deficit, I would recommend establishing a Health Savings Accounts (HSAs). Health Savings Accounts (HSAs) are similar to Flexible Spending Accounts (FSAs) in the sense that they allow you to use pretax dollars toward medical expenses that you incur throughout the year. In order to be eligible for an HSA, you have to have a high deductible health insurance policy (this typically includes an annual deductible of $1,000 or more, depending on the coverage). Premiums are typically very low for high deductible plans, allowing the money you would have spent on a higher premium to be put away tax-free in your HSA. The amount you can contribute on a yearly basis is equal to that of your deductible. You then use this money to pay for any health insurance expenses until your deductible is met and your insurance company starts covering your costs. An attractive feature of HSAs is that you can carry over any money that you don’t use each year, unlike traditional medical savings and flexible spending accounts. The money

you have left over will grow tax-deferred until you retire or use it. Charitable Donations An excellent tax savings opportunity for restaurateurs that is often overlooked is donations to charitable organizations such as the Salvation Army, Goodwill and other similar charities. Typical donations include equipment, furniture, and various items. Before you contribute, make a list of the items you’re donating and give each one a price, typically what you would expect to pay for the item at a garage sale. The IRS has pricing guidelines available for typically donated items. For your records, retain your item list and make sure you receive a receipt for your donation from the charity. Documentation is the most important part of charitable donations. These contributions can save you hundreds on your taxes. Saving money on your taxes requires organization and planning. There are many different options to consider and what works for someone else may not work for your particular situation. Taking the time to learn about the different options that may be available to you is worth your time and will save you money in the long run.

Author’s Note: This article is provided by Mark Dewane, a financial consultant at RBC Wealth Management in Phoenix, and was prepared by or in cooperation with RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions nor should it be construed as a recommendation to buy or sell any specific security. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance. RBC Wealth Management does not provide tax or legal advice.

arizonarestaurantnews

| marketplace

Marketplace • Marketplace • Marketplace • Marketplace • Marketplace

Make an ooompact

with Arizona’s Restaurant Industry

ADVERTISE HERE! For $250 To learn more, contact the ARA at

602-307-9134 or 888-661-DINE Marketplace • Marketplace • Marketplace • Marketplace • Marketplace

FRAUD ALERT! UnFEESable ecently the ARA received notification that a city was increasing the business license fee for licensees who serve alcohol. This license fee was increased disproportionately with other businesses and is therefore in breach of Arizona statute 9-500.06(a) which prohibits any discriminating increase in the collection fees.

STATUTE READS: 9-500.06. Hospitality industry; discrimination prohibited; use of tax proceeds; exemption; definitions A. A city or town shall not discriminate against hospitality industry businesses in the collection of fees. For purposes of this subsection “discriminate” means any increase of fees on hospitality industry businesses by any dollar amount on or after April 1, 1990 without a corresponding equal dollar amount of increase in the privilege license fees or other fees imposed on all other businesses in the city or town. For purposes of this subsection “fees on hospitality industry businesses” means annual liquor license taxes or fees or annual renewal or reissuance fees for municipal business privilege licenses, however denominated. Through our best and most dedicated efforts, the ARA works to stay abreast of changes to business policy. However, we appreciate the feedback of our members and encourage you to contact the Arizona Restaurant Association at 602-307-9134 with information regarding policy or regulatory changes. january/february.11

what consumers want |

Hoppy Pairings

Look for qualities in the food and beer that are similar, for example delicate foods require delicate beers just as high intensity foods should be paired with high intensity beers.

SanTan Brewing Devils Ale - Devils Ale is of the new breed of West Coast American Ales. Using fresh Cascade and Centennial hops grown in the Pacific Northwest, Devils Ale is known for it’s light citrusy hop flavor balanced with a firm caramel malt character. Deep, golden-maroon in color, the Sun Devils Ale is a pub favorite that goes excellent with everything from bacon cheeseburgers to filet mignon. 32

ne of the hottest trends in the restaurant world right now is the pairing of food and beer. Although it’s not really a new thing. For centuries, beer and food have been enjoyed together as part of the good life. Being grain-based, beer can be considered a food. Trappist Monks have long considered it to be liquid bread. Beer’s broad range of flavors, aromas and textures makes it a perfect match for nearly any kind of food, from handmade sausages to the most luxurious gourmet dishes. Wine has long been thought to be the best beverage to pair with food, but more and more we discover that beer is at least the equal to wine when it comes to food. There are a variety of reasons that beer is taking center stage with food starting with the fact that beer is an incredibly complex beverage. Wine uses grapes…and that’s pretty much it. Beer

can use barley, wheat, oats, and a variety of other grains. Beer uses hops…over 500 varieties, each of which provides different levels of flavor, aroma and bitterness. Yeast strains matter with beer. Different yeasts can provide everything from banana and clove phenols to a muted taste, really bringing out different flavors from the same combination of ingredients. Wine yeasts are primarily designed to complement the grape, accentuating already existing flavors. The variety of water types also can impact everything in a beer from flavor to mouthfeel. Many brewers use filtering systems to change the makeup of their local water to provide a different experience. Finally, brewers can add other ingredients to produce a desired result. It is not uncommon to see Belgian sugar, licorice root, coriander or orange peel in a beer. And has anyone ever tried a pumpkin beer?

Tripel Karmeliet - Blond, robust, smooth, and fruity three grain top fermented beer, refermented in the bottle. Brewed with pride and patience after Karmeliet tradition with wheat, oat and barley. 100% natural. Pairs with Mediterranean Cuisine, Sharp Cheeses, Pork and Poultry. arizonarestaurantnews

| what consumers want

There are almost limitless options for pairing food and beer. Of course matching strength with strength is number one. Look for qualities in the food and beer that are similar, for example delicate foods require delicate beers just as high intensity foods should be paired with high intensity beers. However, a variety of things can create intensity. With beer, flavor intensity involves a variety of qualities such as alcoholic strength, malt character, hop bitterness, sweetness, richness and roastiness. Next, look for harmonies. When food and beverage share a common element, pairings are typically better. Look at the nutty flavor of an English Brown Ale and a nice artisanal cheddar cheese; or the rich flavor of an Imperial Stout along with chocolate. Consider sweetness, bitterness, carbonation and richness. It sounds like a complicated process but in reality it is fairly simple. Specific qualities of food and beer pair together in predictable ways. Also, look at classic cuisines. There are reasons why cuisines of countries known for beer match so well. Of course bratwurst with a German lager is obvious, but look at less obvious pairings such as shellfish with Belgian ales (think mussels with something like Tripel Karmeliet) or perhaps the best pairing you would never think of, oysters with stout. Compare and contrast. All beer and food combinations should involve both of these principles. Some pairings will be more dependent on contrast, others on complementary flavors. All should strive for some kind of balance. Last but not least…experiment. Practice makes perfect and not everything is going to go together perfectly, but at least its fun eating (and drinking) the mistakes. There are specific ingredients in beer that pair with specific food characteristics. The sweetness of malt helps to smooth out spicy foods. Intensely spiced foods, which have become a popular component of today’s American diet, are complemented by craft beer’s ability to diminish heat. In comparison, wine’s higher alcohol actually accentuates the warmth from many spices which can be undesirable. The flavors of malt also harmonize very well with grilled, roasted and smoked foods. Alaskan Amber - Richly malty and long on the palate, with just enough hop backing to make this beautiful amber colored "alt" style beer notably well-balanced. Goes great in a beer batter for fish, chicken or fries. Pairs with salmon, flavorful meats and hearty Italian dishes. Also pairs nicely with delicate cheeses, artichokes and roasted red peppers - a perfect accompaniment to gourmet pizzas. january/february.11

Hops tend to contrast with rich foods and can offset the lingering aftertaste of cream sauces resulting in pleasant results. Hops bitterness cuts through the fat in food thus lessening the dense heavy feeling in your mouth. This is pleasurable as it allows you to more fully taste the ingredients of your dish and enjoy the true flavors of both your craft beer and the food. They also complement the malt in beer very well. If malt provides the body of the beer, then hops are certainly the soul. There are also many people who prefer hoppy beers with spicy foods as the hop resins can cut through the spicy flavors. Carbonation is another key factor in pairing beer and food. It is also a component that wine can not match. The bubbles New Belgium 1554 - This true American-style unfiltered wheat has something a little special – the nectar of the great Salmiana Agave. Agave complements the refreshingly light quality of our wheat and adds a subtle note of flavor that expands this beer’s uplifting taste profile. It is familiar, yet creative. Mix with orange juice for a great take on a mimosa; pair with light salads using the beer as an ingredient in a vinaigrette, also goes well with citrus flavors whether alone or as part of a fish dish. 33

what consumers want |

from the carbonation actually help to clear the tongue of fat and prepare it for the next bite. The tartness of lambics provide a nice tongue cleanser and makes for a perfect replacement for a sorbet or Proseco as an intermezzo. These spontaneously fermented ales have a nice refreshing flavor and are frequently used by Belgians in just that capacity. One caveat with lambics, stay away from the artificially sweetened ones as the will only serve to weigh the palate down with cloying sweetness. A related trend that is really starting to get popular is cooking with beer. The same things that make beer a great pairing beverage also make it a great cooking beverage. It just makes sense to cook with beer. Beer has more in common with a lot of the food that we eat than does that other popular cooking beverage. It contains grain (barley), herbs (hops), water and yeast. Wine contains grapes. Adding beer to a recipe can really change the character of the dish. It can enhance particular ingredients, help blend the flavors of the dish, or just add that little zing that your meal might be lacking. Certainly everybody is familiar with using a beer batter to coat fish or French fries, and many have even made beer can chicken (a unique recipe which provides great flavor and moistness to a chicken, but still seems somewhat undignified, not that the chicken cares anymore), but there are a variety of dishes that benefit from beer. There are recipes for everything from salads to desserts that include beer as a key ingredient. Some things to think about are using a Belgian Wit beer such as Wittekereke in a vinaigrette, the citrus flavor from the orange peel can really enhance the salad and help to bring out flavors that may be lying dormant. Use a nice brown ale in beef stew and let the malt add to the richness of the gravy. How about deglazing with beer? It works great and provides just that extra flavor that a dish may be lacking. Once you understand the principle of food and beer pairing, cooking with beer becomes simple. There are a few things to remember when experimenting with beer. As with any other liquid, when you cook with beer you will almost always reduce some or most of the liquid away which will magnify its flavors. For instance, if you were to make a brown gravy using beer instead of broth or water you might want to opt for something like a sweet stout with little or no hop presence otherwise you may end up with bitter gravy. Another consideration is that aroma is lost during the cooking process, so if you are using an ingredient that you want to have present in the aroma of the dish, splash a little extra towards the end of the process, or for a liquid dish, after cooking.

Beer is also an outstanding after dinner drink, at least certain beers are. Barleywines and Olde Ales are great stand-alone beers served in a snifter at 55-60 degrees. Belgian Quadrupels and German Eisbocks also work as an aperitif. Any rich, higher alcohol beer works in this role. Something that has become popular across the country are Beer vs. Wine dinners. In these dinners a chef prepares the meal and each course is paired with a wine and a beer. Typically these pairings are made by experts in the chosen beverage, perhaps a Sommelier or a Cicerone, who then discuss with the audience their reasons for choosing a particular wine or beer. The diners then vote on which pairing they preferred for each course. In just about every dinner, beer comes out victorious. But, in reality, the real victor is the person who learned a little more about what they like and how to enjoy food differently. There are countless variations on pairing and recipes and concepts for food and beer. The real way to handle it is to experiment with the beers and food, use it while cooking and determine what works best for you. Anything that opens up the mind, and the palate, to new experiences and opportunities can’t be a bad thing. So go ahead, put down that corkscrew before dinner tonight and pick up a bottle opener. You will be glad you did.

New Belgium 1554 - 1554 pours out a very dark brown with ruby hues, amber highlights and an off-white head. It’s as clear as can be for a beer this dark. This beer has a deep roasty quality in the aroma reminiscent of black coffee, with dark chocolate undertones and hint of grainy tartness. No noticeable fruitiness or hop aroma. The deep roasty aroma prevalent in the aroma is the primary flavor of the beer and is supported by semi-sweet, dark chocolate undertones. The roasty character is not overbearing as in porters or stouts though. There is a medium-low bitterness that is reminiscent more of black coffee rather than hops. 1554 is surprisingly medium-low/medium in body with medium-high carbonation. Pairs well with Earthy Cheeses, Roasted Meats, Rich Chocolate Desserts. 34

Author’s Note: Chuck Noll is the national accounts/fine beer czar/certified cicerone™ for World Class Beverages. World Class Beverages Arizona has been the market leader in craft beer and specialty imports in Arizona since 2002. With a belief in improving sales through sampling and other events designed to impact the end consumer, World Class beverage has changed the landscape of the craft beer culture in the state. arizonarestaurantnews

Take advantage of small-business health care tax credit s tax filing season approaches, the Internal Revenue Service and leading members of Congress are working to get the word out to small businesses and tax preparers about the new health care tax credit. Businesses with fewer than 25 full-timeequivalent employees and average wages of less than $50,000 can receive up to a 35 percent tax credit on the health insurance they provide to workers. To qualify, an employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate. The credit will increase to 50 percent in 2014. Because the eligibility rules are based in part on the number of full-time-equivalent employees, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

january/february.11

TAX TIP

The IRS did a round of education last May, but many small businesses remain unaware of the credit. The credit was part of the Patient Protection and Affordable Care Act, the health care overhaul Congress passed last spring. The IRS released Form 8941 this month for businesses to calculate the credit. "The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have," according to a letter Democratic senators sent last week to leading tax-preparer companies. "Small businesses and their employees cannot afford to miss out in claiming this important tax credit and we hope you agree with us and take all steps to ensure it is not overlooked."

tip of the month |

P T

OF THE MONTH

Hot Topic of the New Food Code is Actually a Cold Issue ack at the turn of the Century, (boy that sounds like a long time ago – doesn’t it) the FDA started recommending a cold hold temperature of 41°F due to Listeria monocytogenes being capable of slow growth even when under refrigeration. In the early naught years (another term that has been lost over the century), we have seen foods which have been subject to national outbreaks, spinach, romaine lettuce, and even tomatoes just to name a few. Seeing these outbreaks occur, FDA recommended that ready to eat products which include both cut leafy greens and cut tomatoes be held at or below 41°F at all times. Temperature Control for Safety (TCS), which is a new term for foods replacing the term Potentially Hazardous Foods is necessary in the case of cut leafy greens where the actual cutting or tearing of the leaf provides organisms the opportunity to invade the plant tissues. Studies have shown that E.coli O157:H7 can and will survive and grow at temperatures above 41°F. Many of us would think that the acidity in tomatoes would prohibit bacterial growth, but here too, studies have been shown that once sliced and or the outer skin of the tomato torn the tomato will allow growth of organisms, thus they too are TCS when cut. The question that is most frequently asked by operators when dealing with these new changes – How do I keep my cut leafy greens and my commercially processed and bagged salad mixes or spinach at or below 41°F. when they are used in a buffet line or salad bar. This is where TCS and the science of the growth of potentially hazardous organisms comes into play. Labeling rule; when fresh leafy greens are cut, chopped or torn

within the food establishment, they must be labeled and discarded if not sold or served within 7 days of the cutting. Likewise, commercially processed and packaged product once opened must be marked and then discarded within 7 days and at all times be held at or below 41°F. The solution to the issue of displaying cut leafy greens and/or cut tomatoes is the use of Time as a Public Health Control. Time alone can be used in controlling the growth of potentially hazardous organisms. This would require that the cut leafy greens defined as: iceberg, romaine, leaf, butter, baby leaf lettuces, escarole, endive, spring mix, spinach, cabbage, kale, arugula and chard when cut, shredded, sliced, chopped or torn are TCS. Once removed and held above 41°F. they must be tracked with a method that limits the product to 4 hours in the temperature danger zone. At the 4 hour mark, any remaining product must be discarded. The establishment must have an established procedure to use Time as a Public Health Control. If this method of food safety fits your operational needs, talk to your Inspector to ensure that you are on firm ground so a violation is not written. Please remember when using Time as Control, the time used the product when adding to a salad bowl is that of the oldest product. You cannot “marry” two bowls of cut leafy greens together unless you use the oldest time stamp and you are willing to discard product based on 4 hours from that original time. It is always better to throw out a little from the bottom of the bowl than risk throwing out an entire bowl prematurely. Good Luck and be Safe!

Author’s Note: David Ludwig, Manager of Environmental Health, Maricopa County 36

arizonarestaurantnews

| events

Day at the Capitol

calendar NRA Public Affairs Conference

FEBRUARY ____________________

Washington, DC

Join us for a luncheon at the State Capitol for your opportunity to educate your legislative representative(s) on issues facing the restaurant industry!

APRIL _______________________________________

13-14

Arizona Restaurant Week Many high-quality restaurants will participate in the event, showcasing some of Arizona’s most celebrated chefs. SEPTEMBER ____________________________________________

17-25

NRA Trade Show Chicago, IL MAY ________________________________________

Shamrock Food Show

MARCH

Phoenix, AZ

8-9

21-24

________________________

NOVEMBER

ARA Golf Classic Governor’s Conference on Tourism Scottsdale, AZ JULY

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Join the Arizona Restaurant Association Members in a golf outing full of food, beverages and prizes all while enjoying a round of golf with a great group at the spectacular Starfire Golf Club.

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Forks & Corks

APRIL

Phoenix, AZ A showcase of Arizona’s premier chefs, restaurants, resorts and fine wines.

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PAC ____________________________

Political Action Committee Fundraiser

TBD 37

Food and Drug Administration (FDA) Food Safety Modernization Act today: “We are pleased that the FDA Modernization Act today becomes law. This legislation represents meaningful improvements to the food safety system and focuses FDA’s mission on prevention. As part of this legislation, we will see enhancements to our food safety system, including additional hazard analysis, food safety planning, and increased inspections - all important measures to ensure food entering the supply chain is safe. Food safety remains the restaurant industry’s number one priority. This new law will positively impact the supply chain and ultimately improve the safety of food purchased by restaurant operators. It is imperative that the nation’s food chain remains safe, and this legislation is a step in the right direction.” ____________________________________________________

Alcohol Omnibus Bill

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Congress funds small-business lending incentives through March 4 Update from the National Restaurant Association Businesses interested in applying for a Small Business Administration loan have until March 4, 2011, to take advantage of two key incentives Congress created to boost small-business lending: a waiver of SBA loan fees, plus a 90 percent government guarantee for the agency’s popular 7a loans. In December, Congress approved an extension beyond Dec. 31, 2010, of these two provisions. The fee waivers and higher loan guarantees were enacted as part of September’s Small Business Jobs Act. Congress said the SBA can keep going until March 4 or until allocated funding run out, whichever is earlier. ____________________________________________________

Congress renews debate on repealing 1099 mandate Update from the National Restaurant Association On Jan. 5 Rep. Dan Lungren (R-Calif.) reintroduced his 1099 repeal bill from last Congress. The new bill, H.R. 144, would repeal the controversial expanded 1099 reporting mandate that will force businesses to file countless new 1099 forms starting in 2012. The 1099 expansion was part of 2010’s health care overhaul and raises an estimated $19.2 billion over 10 years to pay for health care reform. Both the House and Senate voted last year to repeal the 1099 mandate but procedural issues blocked final action. Support for repeal is bipartisan. The White House also supports repeal. ____________________________________________________

NRA calls food-safety law a step in the right direction Update from the National Restaurant Association Statement from National Restaurant Association President and CEO Dawn Sweeney regarding the recent passage of the 38

A bill is being drafted, revising Title 4 of the Arizona Revised Statutes, which adresses all alcohol laws. Numerous changes have been proposed and are currently being discussed with the Department of Liquor and Arizona’s beverage industry leaders. Some changes include language that will make the liquor license renewal and application process easier by allowing facsimiled signatures. The proposal includes language that would reduce the burden of proof to servers who have been targeted by the Department in a “cub” operation. A provision is also included that requires quick action on behalf of the Department in responding to liquor complaints or violations, that, if not quickly tended to, are canceled. There are questionable fees associated with site inspections that the ARA is discussing with the Department in order to ensure that they do not place an unnecessary burden on operators. The bill is currently in its draft form and is expected to be dropped at the end of January, at which time the ARA will reach out to members with a more complete overview of the changes that are addressed in the legislation. ____________________________________________________

New FDA Food Code The state of Arizona is currently working under an old food code that does not adequately address necessary changes to food safety. The ARA is working with Maricopa County in being proactive in adopting the new FDA Food Code, which incorporates the most current improvements in food safety, such as revised hot and cold holding temps, regulations on panini grills and other restaurant technologies and equipment that entered the industry after the previous food code was enacted. A comprehensive summary of the 2009 Food Code changes can be found on the Maricopa County’s website for your review. ____________________________________________________

Weights & Measures The ARA is working on defining current weights and measures law as it specifically relates to the restaurant industry. Current rules governing price posting regulations are tailored toward the retail industry. Restaurants present unusual pricing procedures that are unlike any other industry. It is, therefore essential that laws in this area are specific to the needs of restaurant operators. arizonarestaurantnews

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Ignition Interlock Device: SB1200 The Dept of Transportation is required to reduce the time period that a person convicted of a DUI must use an ignition interlock device to 6 months if the person is a first time offender, voluntarily completes an alcohol or other drug education or treatment program provided by a facility approved by the Dept of Health Services, and has maintained a functioning ignition interlock device for 6 consecutive months. There is a proposed amendment that is not currently on the legislation that would mandate an officer to impound a car of a person suspected of DUI if there is probable cause to suggest intoxication. ____________________________________________________

AHCCCS Reimbursement, Large Employers: HB2129 If a person receives services under AHCCCS and is employed (either full- or part-time) by an employer of at least 100 persons in the state, the employer must reimburse AHCCCS for the cost of the services. The ARA is opposed to this measure as it levies a huge cost burden on employers. ____________________________________________________

Mandatory rest periods and meal breaks: HB2400 Employers must allow each employee to take a 30-minute meal break during every continuous eight hours of work. Employers must allow employees a 10-minute rest break during each four hours of work. Exceptions for employees covered by a union contract or for locations where only one person is employed. The Industrial Commission is charged with adopting rules for implementation. The ARA opposes this legislation and are meeting with elected officials to explain that the market drives these conditions and do not, therefore, require statutory guidance. ____________________________________________________

Mandatory, paid sick leave: HB2432 An employee who works in Arizona for more than an unspecified number of hours in a year is entitled to paid sick and safe time, accrued at a minimum of one hour of paid sick and safe time for every unspecified number of hours worked. Situations where an employee may use paid sick and safe time are specified, as well as provisions governing accrual, carry over, and transfer of paid sick and safe time. The ARA opposes this measure as paid-leave mandates take away flexibility. The cost to a business for mandatory paid sick leave has to be recouped somewhere. Restaurants typically offer flexible work schedules and hours that best meet the needs of their workplace and their employees. Many also offer sick leave through a paid-time-off benefit structure. A one-size-fits-all paid sick-leave mandate threatens these employee benefits.

STAY ON TOP OF LEGISLATION THAT AFFECTS YOUR BUSINESS. For the latest developments in Arizona and Federal legislation, read the Arizona Restaurant Associationâ&#x20AC;&#x2122;s On the Menu weekly e-newsletter and visit our website at www.azrestaurant.org january/february.11

legal ease |

Up in Smoke fter a close vote, this fall, Arizona voters passed Proposition 203, the Arizona Medical Marijuana Act, making Arizona the 15th state to pass legislation legalizing the use of marijuana for medical purposes. On December 17, 2010, the Arizona Department of Health Services (DHS) released its informal draft rules for implementation of the law. Although the final regulations likely will not be issued until March or April of 2011, employers in Arizona’s restaurant industry should begin preparation now by first understanding the new law, and its implications for their employees and their business.

Details of Arizona’s New Medical Marijuana Law Arizona’s medical marijuana law allows a “qualifying patient” with a “debilitating medical condition” to obtain up to 2.5 ounces of marijuana in a 14-day period from a registered nonprofit medical marijuana dispensary. To qualify under the law, a person must be diagnosed by a physician as having one of the defined medical conditions, such as cancer, HIV or Crohn’s disease. The law provides that a “qualifying patient” must register with the DHS by submitting a written certification from his or her physician. The certification must specify the debilitating medical condition. The law details additional regulations for patients under 18 years of age, including submission by the patient’s parent or legal guardian of certification by two physicians. The medical marijuana dispensaries must operate as nonprofit organizations, but may receive payment for expenses incurred in their operation. The law limits the number of dispensary registration certificates available to one for every ten pharmacy permits issued by the Arizona State Board of Pharmacy.

What Does the Law Mean for Employers? The new law specifically provides that employers may not discriminate in hiring, termination, terms of employment, or in any other way penalize an individual based on his or her status as a registered person, unless doing so would cause an employer to lose a monetary or licensing benefit under federal law. This means that under most circumstances, an employer may not fire, or take any other adverse action against an employee, solely because he or she is a cardholder under the law. A “cardholder” includes not only a “qualifying patient,” but also a “designated caregiver” and “non-profit medical marijuana dispensary agent.” Further, employers may not penalize a registered, “qualifying patient” for a positive drug test for marijuana, unless the individual used, possessed, or was impaired by marijuana on the employment premises or during employment hours. The law does provide some limitations of which employers should be aware. First, the law does not require that employers allow employees to use marijuana at the workplace. Therefore, employers may specifically prohibit the use of marijuana at work. Further, the law provides some specific limitations, including prohibiting anyone from undertaking any task under the influence of marijuana that would constitute malpractice or professional negligence, and prohibiting anyone from operating a motor vehicle, aircraft, or motorboat under the influence of marijuana. What exactly constitutes “under the influence?” This is not yet clear. However, the law does provide that “under the influence” does not include registered “qualifying patients” who have a presence of the metabolites or components of marijuana that appears insufficient to cause impairment. What constitutes “impairment?” This is not clear either. While the final regulations may provide some clarity, more likely, some issues may eventually have to be decided by the courts. Further, under federal law, the use or possession of marijuana, even medical marijuana, is still illegal. This leaves open the question of whether employers may prohibit employees from using or possessing marijuana, under federal law.

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| legal ease

What Should Employers Do to Prepare? Employers should start by reviewing their current policies and considering adding language specifically addressing medical marijuana. Such policies should expressly prohibit the use of marijuana at work, without regard to whether the use is consistent with the medical marijuana law. Employers should specify that no employee may be under the influence of any controlled substance, including marijuana, which may interfere with the employee’s duties or pose a danger to the employee or others. Employers should also review their drug-testing policies and confirm that they are being applied equally to all employees. The law does not change Arizona’s drug testing laws and employers may still conduct pre-employment drug tests and random drug tests in accordance with state laws. However, employers must now take into consideration the law’s prohibitions on discrimination based solely on the fact that an employee is a registered cardholder, or that an employee has a presence of marijuana in his or her system. This means that a positive drug test, alone, may not authorize an employer to terminate or choose not to hire an employee. Lastly, it is advisable that employers consult with their counsel in revising policies and, in the future, making employment-based decisions which may implicate the new law.

Author’s Note: The article was provided by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Should you have any questions, contact Ogletree Deakins’ Client Services Department by phone at (866) 2872576 or via e-mail at clientservices@ogletreedeakins.com.

january/february.11

top 5 |

Ways to Jumpstart

Need a jumpstart for the near year? Here are five things you should be doing now to maximize sales for the rest of the year:

Do some online listening.

Establish a Come up social media with one presence. really big If you haven’t tried marketing Facebook or Twitter idea. yet, sign up for an

Update your website or web menus.

Do a customer survey.

Your menu is most likely online even if you don’t have a website. Just do a Google images search. If it’s old, that’s the image people are getting of you. Check the dates of events on your site. If you’re not updating it regularly, consider the format you’re using and assign this task to a team member.

If you haven’t asked your customers en mass what makes you appealing, it’s time to do a little market research. You can even include some questions on what customers want to see from new menu items to catering options for the rest of the year. Just remember to keep the survey short and incentivize if you want the best response.

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Search for what people are saying about your restaurant on sites such as Yelp and Urbanspoon. Find out what reviews are out there and start developing a strategy for response.

account and see what all the buzz is about. These mediums can help you connect with your customers, but you’ll need to develop a strategy for how involved you want to get.

Whether it’s a traditional mailer, an event or something more off the beaten path, it’s time to brainstorm and come up with something big. It could be as simple as focus-grouping your menu.

arizonarestaurantnews

World Wide Word of Mouth ord of mouth remains the most powerful promotional tool for restaurants. More than nine out of 10 adults indicated they are likely to choose a restaurant they hadnâ&#x20AC;&#x2122;t patronized before based on a recommendation from a family member or friend. Now operators can take advantage of technology such as social-media tools to spread that word farther and faster than ever. Overall, 25 percent of adults said they would use consumer-driven review Websites and online communities such as Yelp to learn about a restaurant. Thirty-seven percent of social-media-savvy customers and 33 percent of connected adults said they would use this source of information.

Percentages of adults likely to use the following sources to choose a restaurant: 93% Recommendation from a family member 92% Recommendation from a friend 57%Restaurant review in newspaper or magazine 54% advertisement mailed to the home 51% newspaper advertisement 45% internet search engine 37% advertisement or emailed promotion 36% online dining guide 25% consumer-driven review websites and online

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Source: National Restaurant Association, National Household Survey, 2010

food fashion |

Tea Time

n recent years, the iced tea category has steadily gained popularity, representing a unique growth opportunity for foodservice operators. Second only to water, tea is the worldâ&#x20AC;&#x2122;s most widely consumed beverage, with 53 million Americans drinking it hot and cold on a regular basis, according to the Tea Association of the USA. Within foodservice, tea trails only behind carbonated soft drinks and coffee in consumption, and the segment is growing significantly according to The NPD Group/CRESTÂŽ, year-ending November 2009. So what is driving this growth in tea consumption? The answer lies in analyzing current food and beverage trends, as well as better understanding consumer motivation. American tea consumers are a diverse group of people who turn to tea to satisfy a wide variety of needs, including: refreshment; perceived health benefits; an appreciation of product variety; alternatives to other beverages; and the luxury and convenience of ready-to-drink beverages.

A Tea for Every Need The perceived health component of tea has become a noteworthy topic of discussion, prompting health-conscious consumers to seek its benefits. In its most basic form, tea contains no sodium, fat, carbonation or sugar and is nearly calorie-free. Research shows both hot and iced teas contain immunity boosting antioxidant properties. The rise and subsequent marketing of specialty tea shops, such as Teavana, also have contributed to an increased awareness of health benefits. Even the medical community has gotten involved by conducting research, publishing findings in medical journals and participating in interviews, lending credibility to the health component of consumer motivation. The breadth of flavors that tea offers addresses the consumer demand for variety. As one of the most versatile beverages on the market, tea covers a wide spectrum of tastes and origins (black, green, oolong, white and herbals and specialty blends like chai) and can be enjoyed bottled or brewed, hot or cold, enabling it to satiate a plethora of taste buds and preferences. The innovation that surrounds

arizonarestaurantnews

| food fashion

tea, from product offerings and flavors to packaging, allows for complete customization on the part of the consumer. Another significant factor in tea’s rise to popularity is its convenience. Ready-to-drink teas, such as bottled FUZE®, Gold Peak® and Nestea® make the beverage readily available to on-the-go consumers. Over the last 10 years, ready-to-drink tea has grown nearly tenfold, with sales conservatively estimated at $2.8 billion in 2007, according to the Tea Association of the USA. Plus, awayfrom-home consumption has increased by at least 10% annually over the past decade.

The breadth of flavors that tea offers addresses the consumer demand for variety.

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Maximizing Beverage Profits Iced tea has firmly established itself within the foodservice marketplace. Restaurant offerings should reflect this shift, keeping in mind the target demographic of their customers. Consumers seek variety in their beverage options, tea included. Offering a wide variety of flavors and leaf types to satisfy this need is imperative to maximizing beverage profits.

Author’s Note: Coca-Cola Solutions

Advertiserâ&#x20AC;&#x2122;s Index |

A Alliance Beverage Distributing Company, 602-760-5500, www.alliance-beverage.com . . . . . . . . . . . . . .11

C Coca-Cola, www.cokesolutions.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Cox Business, (623) 594-4949, http://www.coxbusinessaz.com/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Crescent Crown Distributing, (602) 346-5650, www.ccdaz.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

H Heartland Payment Systems, Gary Hall, (520) 668-7228, http://www.heartlandpaymentsystems.com/ gofullcourse/solutions.aspx?state=AZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Front Cover Henry & Horne, LLP, (480) 839-4900, www.henryandhorne.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Hensley Beverage Company, www.hensley.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39, 41

L Lapre Scali, (623) 412-7878, www.laprescali.com/ara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

M McManus Construction, Larry McManus, (520) 293-2871, www.mcmanusconstruction.net . . . . . . . . . . .31

N Nationwide Insurance-Ferrell Insurance Agency, Chris Ferrell, (888) 990-3353, www.nationwide.com/chrisferrell . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

P ProClean, Inc., (800) 454-5544, www.procleansouthwest.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

R RBC Wealth Management, Mark Dewane, (602) 381-5349, www.markdewane.com . . . . .Inside Back Cover Republic National Distributing Company, (602) 233-1900, www.RNDC-usa.com . . . . . . . . . . . . . . . . . . .7 Restaurant Brokers, The, (480) 491-0123, therestaurantbrokers.com . . . . . . . . . . . . . . . . . . . . . . . . . .31 Restaurant Depot, www.restaurantdepot.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

S Shamrock Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Back Cover

V Van Leer â&#x20AC;&#x201C; Ambassador Group Insurance, David DeLorenzo, (480) 776-6981, www.barandrestaurantinsurance.com . . . . . . . . . . . . . . . . . . . . . . .17 46

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