August 2018 - Total Food Service by Total Food Service

NEWS

MINIMUM WAGE DEBATE

Upstate Waitress Raczynski Leads Charge in NYC On Tip Credit Battle

“I

’m a bartender, a mother and now a grassroots organizer,” noted Maggie Raczynski. “Why? Because Gov. Andrew Cuomo wants to upend my industry. I love being a bartender, for a multitude of reasons. The most important is the flexibility of my schedule. While my husband works a normal 9 to 5, I can be at home with my children.” The Albany area based waitress was among the impassioned outpouring from the restaurant industry at the final New York State labor hearing focused on an increase of the minimum wage and most importantly the elimination of the tip credit. Raczynski’s story is one that may very well find its way to the big screen. She has spent the last 18 months at her own expense leading the battle to protect the tip credit that has created the very foundation that the state’s restaurant industry is based upon. When Gov. Cuomo indicated his desire to change the tipping system, she launched a Facebook group—Supporters of the Tip Credit in NY that has grown to some 23K plus followers. “When I speak to thousands of tipped workers across our state, the

Supporters of the Tip Credit in NY and groups including the NYC Hospitality Alliance feel that the governor may have good intentions but his intel is lacking.

Main Office 282 Railroad Avenue Greenwich, CT 06830 Publishers Leslie & Fred Klashman Advertising Director Michael Scinto Art Director Mark Sahm Contributing Writers Warren Bobrow Faith Hope Consolo Morgan Tucker Fred Sampson Staff Writers Deborah Hirsch

Phone: 203.661.9090 Fax: 203.661.9325 Email: tfs@totalfood.com Web: www.totalfood.com

Cover Photo by Evan Sung

two major reasons we choose to be tipped workers is the flexibility of hours and the great money we make,” Raczynski continued. Many of us are college educated; yet we chose our profession because the money is good. Gov. Cuomo has said that he wants to change all this and upend my profession. He has proposed ending the tip credit. “For those of you that are new to this term, the tip credit allows us to count our tips towards our wage.” Supporters of the Tip Credit in NY and groups including the NYC Hospitality Alliance feel that the governor may have good intentions but his intel is lacking. In fact the last time New York gave tipped workers a 50 percent raise according to Census

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Bureau data 273 full-service restaurants closed. These include, the ROC (Restaurant Opportunities Center), an antitipping activist group. “I think we saw the true colors of the ROC and Saru Jayaraman at the hearing,” Raczynski added. “How could she refer to Applebee’s and Fridays as “Breastaurants.” On top of that she couldn’t get out of there fast enough rather than responding to questions.” According to filing data, ROC spent $80,000 last year to lobby Gov. Cuomo and the state Legislature. ROC claims that tipping exacerbates sexual harassment. With ROC’s encouragement, 16 female celebrities including Sarah Jessica Parker, Jane Fonda and Natalie Portman sent a “letter” to the gov-

Total Food Service ISSN No. 1060-8966 is published monthly by IDA Publishing, Inc., 282 Railroad Avenue, Greenwich, CT 06830. Phone: 203.661.9090. This issue copyright 2018 by IDA Publishing Inc. Contents in full or part may not be reproduced without permission. Not responsible for advertisers claims or statements. Periodicals Postage paid at the post office, Greenwich, CT and additional mailing offices. Additional entry at the post office in Pittsburgh, PA. Subscription rate in USA is $36 per year; single copy; $3.00. Postmaster: Send address changes to Total Food Service, P.O. Box 2507, Greenwich, CT 06836

ernor that was published in The New York Times. “Women deserve to earn a fair base wage so that the tips they still collect don’t come at a personal cost,” the actresses wrote. Responding to the actresses’ letter, and in an attempt to save the tip credit, hundreds of mostly female restaurant workers signed their own letter. “We’re servers and bartenders

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August 2018 • Total Food Service • www.totalfood.com • 3

Tip Credit Battle, from page 2 by choice, just like you chose to be actresses. The industry gives us flexibility, and the current tipping system gives us an opportunity to earn great money with less than full-time hours,” the letter read. “I feel like the celebrities didn’t do it with mal-intention,” she said. “But because they don’t really know how it works and what’s really going on, they were uninformed of the actual consequences of eliminating the tip credit. The tip credit, Kaczynski said, ensures that tipped workers can continue working for tips throughout their shifts. Earning minimum wage, however, would allow employers to assign them to other tasks, including ones where they wouldn’t earn gratuity. Raczynski also argued that increasing wages would cause restaurateurs to increase prices or cut staff to save money. Higher prices, she said, could then dissuade customers from dining out

Maggie Raczynski

as often or spur them to pay less in tips. “How am I supposed to survive on $10.40 an hour?” she said. “If the end goal of this is to collect more tax money from people — how much are you going to collect from unemployed people who lose their busi-

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nesses?” The Andrew Rigie led NYC Hospitality Alliance, has come out against the proposal, predicting it would result in fewer hours for tipped workers. In an op-ed in the NY Daily News, the group argued that, “if an employer does not pay the minimum wage now, they won’t magically comply with the law if you make them pay more.” The One Fair Wage Coalition counters that the current low minimum wages for restaurant workers already contribute to widespread wage theft, as employers routinely ignore a legal requirement that they “top off the pay of a person who works for tips if it doesn’t add up to at least the minimum wage.” A group of 18 women restaurant owners in Harlem, including Melba Wilson of Melba’s Restaurant and Crizette Wood and Tren’ness WoodsBlack of Sylvia’s, say eliminating the tip credit would put even more of a fi-

nancial strain on small independent restaurants. “Sylvia’s Restaurant has been a beacon of light in Harlem for nearly 60 years. As an anchor of our beloved village, we love giving our neighbors and guests from around the world the finest soul food experience with every visit. Losing the tip credit will chip away at the institution that is Sylvia’s Restaurant, and choke our community employment record as the largest minority employer for over four decades,” testified WoodsBlack at the hearing. TFS attempts to speak with State of New York Labor commissioner Roberta Reardon were met with a “we have nothing to say until the reviews of the testimony is concluded.” In the interim, Raczynski’s advice is to call and email local State reps in Albany who could ultimately help to overturn a Cuomo mandate.

August 2018 • Total Food Service • www.totalfood.com • 5

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NEWS

BUSINESS EXPANSION

Day & Nite All Service Continues Strategic Growth Plan With New Boston Outpost

ay & Nite All Service has been servicing customers for 40 plus years, serving the most demanding commercial kitchens with their “one call fixes all solutions” motto. Offering a diverse range of refrigeration, kitchen equipment, HVAC and plumbing services from installation to repairs. With the vision of the second generation of the Sher family, they’re currently expanding their operations by offering services in Boston. The new Boston outpost for the company will join its numerous locations, including Florida, the Carolinas, New York, Washington D.C., and Philadelphia. “Boston is a great city and it has characteristics and a rich history that’s attractive for Day & Nite All Service. When indexed to DNAS’s proven history of superior service execution and sophisticated use of technology, there’s a superb fit,” explains Mike Berman, Day & Nite’s COO. “There’s an uncompromising service expectation in the Greater Boston area that Day & Nite All Service can deliver. Integration of technology to work product also ranks high on Boston’s priority. CNBC just

Boston is a great city and it has characteristics and a rich history that’s attractive for Day & Nite All Service,” explains Mike Berman, COO. put out their annual survey on the best states for businesses and Massachusetts ranked eighth in the nation and No. 1 in the Northeast.” For Berman and the Day & Nite leadership, Boston provides a thriving community and fits the profile for their “ideal” client, so it just made sense to add a hub in the city. Finding the right team for the Boston operation was all about building something dynamic for the new venture. Berman noted that in order to do that, it was a combination of homegrown talent with new people. They selected service leader Jerome Malabot, who was promoted from within the company, coming from the New York service operation. “We purposely wanted a service leader who understands the operation, has

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great work ethic, but can still have a fresh perspective on things in this new market,” Berman says. Day & Nite All Service has been on a mission to further their growth in the past few years. Ever since 2007 and their expansion into Florida, Day & Nite All Service has continuously increased their growth with new hubs, special partnerships and technology implementations to grow and support their customer service base and their own services. In 2009, they implemented a new service dispatch accounting system that helped them keep track of all their clients and more to provide better customer service on jobs, while they added a full tablet integration system in 2011. This provided field automation for all tech-

nicians, which fully integrated with their main corporate system, allowing all hubs and service technicians to be on the same page when it came to their portfolio of services. Since they’re committed to continuously improving and growing their expert services, it only seemed natural to enter the Boston market. “We have the opportunity to refine and enhance a proven model every time DNAS enters a new market,” Berman outlined. “Our customer base expects the same experience whether they’re in Miami or Massachusetts. As Day & Nite prepares for its next 40 years, our focus is to add people to our team that fit the culture and embody the values that the Shers have created,” Berman explained. For Day & Nite, the expansion into Eastern Massachusetts, represents what has been their model for success: promoting from within and actively recruiting from outside the organization to ensure fresh ideas to meet the ever changing needs of its diverse commercial kitchen customer base.

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EYE

METRO NEW YORK’S FOODSERVICE EVENT COVERAGE

Specialty Food Association Summer Fancy Food Show Trends Emphasize Innovation Across the Industry

ver 200,000 products awaited the Specialty Food Association Trendspotter Panel at the 64th Annual Summer Fancy Food Show. Held June 30 to July 2 at the Jacob Javits Center in New York City, the show encompassed six-football fields worth of specialty food and beverages. Members of the panel were armed with predictions from earlier in the year, as they tasted their way through the show, confirming some current, and identifying new and emerging trends. “The specialty food industry has grown to over $140 billion. Innovation is a key growth driver, and we definitely saw that at the Summer Fancy Food Show,” said Denise Purcell, head of content for the Specialty Food Association. “We’re seeing new flavors and new formats of food. Plant-based foods are growing from a trend into an overall movement, and upcycling is huge. Spins on classics continue to surprise us, and flavors from around the world continue to grow prominent in the marketplace. No matter where you look, something exciting is happening.” The Summer Trendspotter Panel included Melanie Zanoza Bartelme, global food analyst, Mintel; Kenneth Blanchette, quality assurance director, fresh departments, Center of Excellence, FreshDirect; Massimo Bottura, chef and restaurateur, Osteria Francescana; Eleonora Cozzella, writer and lecturer; Jonathan Deutsch, Professor, Center for Food and Hospitality

Management and Department of Nutrition Sciences, Drexel University and founder of the Drexel Food Lab; Melina Romero, manager, Trend Practice, CCD Innovation; Kriti Sehgal, CEO, Pure Fare; Stan Sagner, Writer, Marketing & Content Consultant; Alison Tozzi Liu, vice president of marketing, communications, and editorial, James Beard Foundation.

fun, with the added value of their nutrients sneaking in as an unexpected ingredient. Examples included: Peekaboo Hidden Veggies, organic ice cream in flavors like Chocolate with Hidden Cauliflower, and Strawberry with Hidden Carrot; CAULIPOWER, vegetable-based Baking Mixes; and Growers Garden, Broccoli Crisps.

Trending Strongly were: Upcycled Foods As awareness of food waste broadens, the SFA Trendspotter Panel predicted more products coming to market made with upcycled ingredients—food scraps or leftovers that would otherwise go to waste being repurposed into a new product. Examples included: RIND Snacks, Skin-on Superfruit Snacks, using the whole fruit; RISE Products, Whole Barley Super Flour, stone ground whole barley flour hand made from upcycled grain; Williwaw Foods, Salmon Skin Cracklets, made from the skins of salmon from the waters of Patagonia; and TBJ Gourmet, Abundantly Good Spiced Tomato Jam, made with tomato tops and bottoms Cassava Snacks Plant-based foods are a top 2018 trend, according to the Trendspotter panel, and are visible across catego-

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ries. At the Summer Fancy Food Show, cassava emerged as a new plant-based snack food. Examples included: Jans, Cassava Chips; Nanduto Home Cooking, Cassava Leaves Chips; Coco International, Inc., Popped Cassava Chips; and Siete, Cassava Chips Hidden, or Unexpected, Fruits and Vegetables Tied to the plant-based and the overall better-for-you trends, producers are blurring the lines in treats and snacks. Options for eating vegetables are even more diverse and

Cauliflower This cruciferous vegetable was another emergence in the plant-based trend. In the quest for the “next kale”, cauliflower has appeared with increasing frequency on restaurant menus. More cauliflower-based packaged products are hitting retail shelves, and are hailed as a carb substitute and beneficial source of vitamins and nutrients. Examples included: Halen Brands, From The Ground Up, Cauliflower Pretzels; Hummus Gourmet, Cauliflower Hummus, and Cali’flour Foods, Cauliflower Wrap Flavors of Africa The SFA Trendspotter Panel pointed to regional Middle Eastern foods as growing in prominence. This remains true, however notable products at the Summer Fancy Food Show indi-

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NEWS

FUNDING

Toast Secures $115 Million In Funding Round Led By T. Rowe Price Investment values Toast at $1.4 billion, proceeds focused on accelerating market leadership

oast, the fastest-growing restaurant management platform in the U.S., today announced $115 million in Series D funding to accelerate investment in research and development, recruit new talent, and expand its global presence. The financing round, led by funds and accounts advised by T. Rowe Price Associates, Inc. with participation from new investor Tiger Global Management, LLC – as well as existing investors – values Toast at $1.4 billion. The additional funding brings total capital raised to over $200 million and collectively represents one of the largest investments focused on accelerating the adoption of cloud-based technology in the restaurant industry. “The way restaurants serve their customers is going through a fundamental change, and the technology that enables restaurant operations must respond to these new demands. Toast does this,” said Henry Ellenbogen, portfolio manager of

T. Rowe Price New Horizons Fund. “Our investment in Toast reflects our belief in the firm’s ability to become much larger over time. We look forward to working with Toast’s management team as they help their clients and grow the business.” The Platform of Choice for Successful Restaurants Launched in 2013, Toast empowers restaurant operators to delight their guests, do what they love, and thrive. By focusing investment dollars on a powerful, efficient pointof-sale experience – and software modules to streamline operations and increase revenue – Toast has quickly become the restaurant management platform of choice. In the past year, leading brands and concepts – including Jamba Juice, Sepia, WaBa Grill, B.GOOD, Hattie B’s Hot Chicken, Dos Toros Taqueria, and honeygrow – joined the tens of thousands of restaurants already in the vibrant Toast community. “Toast enables our team to

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streamline operations in a way that wouldn’t be possible with legacy technology,” said Austin Brinson, VP of analytics at B.GOOD . “Thanks to Toast’s focus on the unique needs

of restaurant operators, our entire organization is empowered to make data-driven decisions.”

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C-CAP TRADE TALK

WITH JOYCE APPELMAN

C-CAP Thanks Tuxton For Its Support

he support and sponsorship from the industry are a key component to C-CAP’s success. Since 1990, industry sponsors and partners have provided C-CAP with necessary equipment and ingredients for under-stocked and under-equipped classrooms and monetary donations to support programs that educate and guide underserved high school students toward a bright future in the culinary arts. For the third year in a row, Tuxton China, a leading tabletop supplier to the foodservice industry, will be donating a percentage of the total sales from the month of September in support of C-CAP. In addition, they will again donate plates with the C-CAP logo to be used by students competing in the C-CAP Cooking Competition for Scholarships at all locations across the country. “All of us at Tuxton China are very

excited to continue our association with C-CAP. C-CAP is a charitable organization we can partner and grow with that has a direct impact on the industry we are a part of. This partnership allows us to give back and help these kids become a valued part of our wonderful industry,” says Bill Burden, President of Tuxton China. “At Tuxton, giving back is an important part of our company’s core values and our continuing partnership with the Careers through Culinary Arts Program gives us the opportunity to help disadvantaged high school students become part of our industry, says Vice President of Business Development Jennifer Rolander. “Our continued support of this organization as one of our “Tuxton Cares” partners is a priority for us, and we are looking forward to providing funds for scholarships and their competition plates for years to come!”

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“We encourage everyone in the industry to support Tuxton by purchasing products in September. You will be helping us provide underserved high school students with culinary education and career-readiness skills for success,” says C-CAP President Karen Brosius. Tuxton China Inc. is a family-owned and operated company here in the US and in China. Started in 1999 by the Lam family, Tuxton has become a leading wholesaler of high-quality dinnerware and ovenware products for the foodservice industry. They pride themselves on fostering longterm relationships with their clients, providing exceptional customer service and producing superior quality products. Our students and teachers are grateful for Tuxton’s generous support. If you would like to donate to the C-CAP

Joyce Appelman, is the National Communications Director for CCAP, Careers through Culinary Arts Program in New York, NY. She has been instrumental in opening career opportunities for many young people in the foodservice industry. Email her at joyceappelman@gmail.com

classrooms and become an industry partner or product sponsor, visit www.ccapinc.org or contact me at joyceappelman@gmail.com.

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MIXOLOGY

WITH WARREN BOBROW

Five Cocktails For A Party

love cocktail parties. Especially ones that give me the opportunity to take my guest’s palates to another level. This little cocktail party served notice that great mixed drinks don’t have Fireball or Tito’s (the big, popular brand names) in them. Far from. They take great parts and incredible hand-made, craft spirits and bring these liquid driven adventures truly to a higher place. I was given a bottle of Martinique Blue Cane Rhum Agricole recently and I couldn’t think of a nicer way to serve it than with Royal RoseSimple Syrup of Cardamom and Clove and a bit of seltzer water with a couple drops of lemon bitters. Try the Fee Brothers Lemon Bitters. They are built on a glycerin base for a touch more richness. Just over on Mt. Pelee’ Ingredients: • 3 oz. Clement Bleue Canne Rhum Agricole (100 Proof )

• • •

1 oz. Royal Rose Simple Syrup of Cardamom and Clove 2 oz. Seltzer 2-5 drops Lemon Bitters (of your choice)

Preparation: 1. To a cocktail mixing glass filled ¾ with ice 2. Add the Rhum Agricole 3. Add the Simple Syrup 4. Stir well to combine 5. Pour into a Collins Glass with ice 6. Top with the Seltzer 7. Dribble the bitters over the top and serve The second cocktail took a simple drink known as the gin and tonic and quite literally, raised the bar with thirty different types of gin. What was the crowd favorite? A little gin in a gorgeous bottle made in Scotland named Caorunn. For some reason (well known to those of us who love artisanal gin) the Caorunn has a richer texture and ‘ginny’

character that worked so well with the multitude of tonic waters that I brought with me. Amongst the gins were The Botanist, SW4, No.3., Martin Miller’s Pot Still, Barr Hill, FEW Breakfast Gin, Nolet, Beefeater, and Bombay Sapphire. Not Just Another Gin and Tonic Ingredients: • 3 oz. Gin of your choice (FEW Breakfast Gin was the crowd favorite) • Lemon Zest (no pith!) • 5 oz. Cane Sugar Tonic Waterthe crowd favorite was Fever Tree Elderflower Tonic (Bed, Bath and Beyond) • Aromatic Bitters – like Angostura, often used in a “pink gin” Preparation: 1. Flavor the glass with the lemon zest then the Angostura Bitters 2. Add ice 3. Add the Breakfast Gin with

Warren Bobrow is the creator of the popular blog The Cocktail Whisperer and the author of nearly half a dozen books, including Apothecary Cocktails, Whiskey Cocktails, Bitters and Shrub Syrup Cocktails, and his most recent book Cannabis Cocktails, Mocktails, & Tonics.

the Craft Tonic 4. Stir and Serve I’m sure that the third drink is where you want to get going- and that would mean immediately! The Soda and Cocktail Syrup named Fruitations is where this drink really takes off. I used the brilliant Tangerine syrup and combined it with Mezcal and then finished it off with a potent Cane Sugar Ginger Beer from Australia named Bundaberg. Brilliant stuff. A wedge of fresh lime and a dash or two of the lemon bitters sent this drink further than it has ever been prior. Trust me. Just up Near Mexico City Ingredients: • 2 oz. Mezcal of your choice • Orange Zest

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NEWS

SALES TAX

Is Using Sales Tax Revenue To Run Your Business A Wise Investment? (The Answer is “No”!!) By David Joseph, Co-Founder/Chairman, DAVO Technologies, LLC & Lance E. Rothenberg, Esq., LL.M (Taxation), Tenenbaum Law P.C.

here’s an urban myth in the restaurant business that goes something like this: “I collect sales tax, therefore it’s OK to use it from time to time to run my business.” However, this line of thinking, to be blunt, is very flawed. Merchants who use sales tax as working capital rarely take time to understand the true cost and potentially catastrophic legal pitfalls until it’s too late. Merchants may be wondering, why isn’t it OK to use sales tax to operate the business until it’s time to remit that money to the state? The answer is simple: sales tax is not working capital; rather it is a trust tax. It belongs – at all times – to the State! Business owners and operators have a legal and fiduciary responsibility to the State to hold sales tax secure and in trust. As a matter of fact, owners and operators can be (and often are) held personally liable and responsible for unpaid sales tax debts. Yes, this means the State can come after the owner/operator personally if sales tax isn’t remitted on-time and in full.

Sales tax is not working capital; rather it is a trust tax. It belongs – at all times – to the State! Business owners and operators have a legal and fiduciary responsibility to the State to hold sales tax secure and in trust. Businesses are legally obligated to collect sales tax as part of their sales, and those taxes are deposited into the business checking account with the daily card settlement and cash deposit. Once funds are deposited, sales tax and working capital are comingled making it hard to keep track of what’s what. Having a bank account that is slightly inflated by a few thousand dollars of sales tax every month makes it easy, not to mention tempting to use this extra revenue to pay bills. But when the sales tax payment comes due to the State the next month, merchants struggle to come up with $5,000 or $6,000 dollars to pay it. Quite often this puts them between a rock and a hard place facing

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a decision to keep the lights on or pay sales tax. Most owners opt to keep the lights on and the doors open and naively worry about sales tax later. Doing so poses both legal and financial consequences. On the financial side, few owners realize that they are actually taking a short-term loan from the State and they fail to consider or calculate the true cost of borrowing sales tax revenue to fund their business. On the legal side, far worse than that, in some instances the State may consider this to be a criminal act! One merchant recently explained that he couldn’t survive without using sales tax revenue to run his business. When asked if he had ever paid his sales tax late or had he ever

calculated the true financial cost of “borrowing” sales tax to run the business, he explained that he often paid late, but had never really stopped to consider the financial costs involved. That urban myth persists for many merchants who use sales tax as working capital and pay the price over and over. They waste valuable resources and squander hard earned profits on avoidable penalties and interest. Setting aside the significant legal risks for just a moment, what are the financial costs of using sales tax money to run a business? There are a number of issues to un-pack here. First, let’s understand how much they are actually borrowing. If a business collects $4000/month of sales tax, that’s not what they borrow because the entire amount isn’t deposited into their account as a lump sum on the first of the month. Instead it’s collected and deposited daily throughout the month, 15 days in and 15 days out. This makes the true value of the amount borrowed about $2000 or half the total amount of sales tax collected. Second is the cost of borrowing. States attempt to keep merchants compliant with excessive penalties

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SEDERHOLT ON RESTAURANT FINANCE

Blind Spots: When Good Restaurants Are Bad Businesses

David Sederholt is the Senior Advisor to management at Strategic Funding, a leader in small business financing

ne of the great things about having over 30 years experience in the restaurant business followed by 15 more as a finance executive and small business advisor is that I have seen a lot. One fascinating phenomena is the “blind spot”. This is when restaurant owners fail to honestly see or recognize problems that jeopardize their business. They don’t really research, plan or seek an outside opinion and fail to see that even a good restaurant can be a bad business. The first time I heard the term “blind spot” I was learning how to drive and my Dad was telling me about that car sitting right next to me that I couldn’t see in the mirrors. He told me I needed to turn around and really look before making my move. If I didn’t, it could be… a disaster. People in this business are smart, tenacious and for the most part survivors driven by instinct more than strategic planning. They are more reactive than proactive when running their businesses and deal in short term solutions as opposed to long term planning. Often they make very serious decisions based on gut feelings not facts. In response to a recent article in TFS questioning why restaurant owners closed up and walked away from viable businesses, the partners of an upscale white tablecloth steakhouse in NYC contacted me. Concerned

since 2006. Before this, David spent 30 years in the restaurant business

Unlike many other distressed restaurants, the issue wasn’t food quality, service or lack of systems and controls – it boiled down to limited capital to promote and build a brand in a high cost, low frequency diner, with a highly competitive crowded market and expensive NYC rents. about the lack of profitability of their 3-year-old business, they were trying to decide if they should fight on, restructure or fold up the tent and leave before everything collapsed on them. Serious stuff. I was intrigued by their sincerity and candor and decided to go and see for myself. On my visit to the restaurant I found a handsome, well-appointed, clean, attractive restaurant worthy of being a high-ticket prime steak and seafood house in a very strong location. These hands on guys work hard and deliver great food and service consistently. They take pride in their establishment and it shows. Reviews on Yelp, Open Table etc., are overwhelmingly positive. After having lunch and doing a quick evaluation, their issues quickly

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came to light. These guys have a great restaurant - but a bad business model. With this location and their lack of capital - this restaurant was a very bad risk from the start. Unlike many other distressed restaurants, the issue wasn’t food quality, service or lack of systems and controls – it boiled down to limited capital to promote and build a brand in a high cost, low frequency diner, with a highly competitive crowded market and expensive NYC rents. There are 12 other top steakhouses within walking distance, each with big marketing budgets. These guys don’t have sufficient capital or sales to compete and survive. There are about 5 blind spots that they didn’t see when building their dream.

and has owned and operated more than a dozen restaurants. As a direct lender, the company offers a variety of financing options and has provided over $1.25 Billion to approximately 20,000 businesses across the United States and Australia.

Over three years they had their heads down and were working hard to build the business. They managed to grow from $1.8MM in 2014 to $2.8MM in 2016. This is a very respectable number with one huge and glaring problem. The BUSINESS MODEL doesn’t work. Prime steakhouses have high food costs and even though theirs is under control (40%), the total occupancy costs (rent, CAM, taxes, insurance) demanded that they do at least $4.1MM to comfortably achieve profitability. Holy crap! At $2.8MM in sales, you can’t sustain an occupancy cost exceeding 20%. There is nothing left for marketing, PR, Direct Operating Expenses or G&A. You simply can’t compete if you are losing between $4,000 to $7,000 per week - Game over. Even established iconic steakhouses like Ben Benson’s have closed their doors due to occupancy costs and the

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LITTLE M. TUCKER

WITH MORGAN TUCKER

Go Green With LMT

reen reminds us of the role we play in our surroundings. We are now considering the environmental impact of our decisions in the hospitality space every day, as much as by necessity as by desire. “Green” is more than a buzzword it’s a lifestyle and an ethos. We see this when specifying biodegradable alternatives for our customers, we see it when exploring the journey from clay to kiln to kitchen, and we definitely saw it during the ‘great paper straw shortage of July 2018.’ We’ve seen that there’s no clear answer when we need to further deplete resources of the already endangered honeybee to line the interiors of paper straws to reduce our dependence on plastic. We’re not cynical, just hopeful. It’s easy to fall into a passionate monologue on decisions we can make, both as suppliers and consumers, on how to be kinder to Mother Earth. Instead, we’re going to focus on a different

Sabre Green Cutlery with LMT Lily Dinnerware, Plating by James Simpson

Morgan Tucker is Director of Business

“Green is in the middle of the spectrum… embracing all the realms of light that people need for nourishment. Since it’s ubiquitous in nature, it takes us back to nature.” – Donald Kaufman

Development at M. Tucker, a division of Singer Equipment Company. Ms. Tucker works with a wide diversity of acclaimed restaurateurs, celebrated chefs, and industry leaders across the U.S. Andrew Beres, Sarah Bulmer and Morgan Tucker curate LMT. LMT is a curated portfolio of tabletop collections. Our products speak to a contemporary aesthetic while occasionally borrowing from the past. To

kind of green in this column. Spring growth and summer abundance brings us to the month of August, and the greenest landscape of our year. We’ll give Mother Nature most of the credit, but we’re equally committed to growth in all ways and to spreading verdant tones throughout the industry. Here’s a glimpse into LMT’s emerald obsession and ode to chlorophyll. Spruce was our first foray into the forest of green china. This glazed, seaweed hue is available on 15 different Anfora Denali shapes. No two pieces are exactly alike because of the handcrafted finish. If you are looking to add a little umami to your tabletop without having to deepwater dive into your pockets, this is

Haand Hospitality

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the collection to approach. We will release Platform from Robert Gordon Australia in an exclusive, heritage, deep-sea green later this year. Plates and bowls in a stackable, granular, matte, highfired stoneware feature a flat profile and subtle sharpened rims. This collaboration with Steelite will arrive just in time to match your Christmas pines. If you’d prefer to match your thriving August basil, Canopy by Felt + Fat is available for immediate delivery. It doesn’t get much more local – this collection is manufactured just a quick drive away from Singer Equipment Company’s headquarters in Elverson,

consult with our team, please email littlemtucker@mtucker.com..

PA. It’s the perfect slip-casted, semimatte, satin glazed canvas for elevating your summer harvests. This dark olive variety is available in any of Felt + Fat’s 19 shapes. Looking for something organic but modern? Haand Hospitality calls their aesthetic ‘farmhouse futuristic.’ Their signature, rustic ash

continued on page 110

Anfora’s Denali Spruce by Steelite-Chef Victoria Blamey - Rascal and Thorn Dinner - Photo by Evan Sung

August 2018 • Total Food Service • www.totalfood.com • 23

EYE METRO NEW YORK’S FOODSERVICE EVENT COVERAGE MDR 2018 At Yale University: The Future of the Mediterranean Diet In The World

he Mediterranean Diet palates as well as minds.” Roundtable (MDR) rolled The market for Mediterranean inwith success its fourth edispired food is growing, as shown by tion at the prestigious Yale the encouraging statistics presented: University on June 25-26. Despite since 2013, the purchased amount of international trade uncertainty and legumes is increased by 65%, of grain recent critiques to some studies, by 150%, of olive oil by 72%, of pasthe Mediterranean Diet’s benefits in ta by 18%. “Our studies highlighted terms of being healthy, delicious and that this diet is one of the best in the sustainable are undeniable, as is the world,” said Dr. David Katz, internaAmazing food inspired to the Mediterranean Diet. To complete the feeling, science supporting it. There is no tionally acclaimed nutrition expert, a tent-gazebo graced the court of doubt that, in our quest for an imleader of the Yale University Preventhe college, adorned with Morocproved quality of life, the Mediterration Research Center. “The secret of can lanterns and communal tables, lavish flowers and, most importantly, nean Diet reigns supreme. the Mediterranean Diet is to combine scrumptious food! Food and sustainability, environhealthy elements in a balanced way,” ment and education, trade and polihe added. “This diet in America is gocy: these were some of the topics dising further and further, nobody can ple know the answer to the question cussed at the Yale event. The different ignore this fact. We have a lot of work ‘What is a polyphenol?’” said U.K. sessions, centered on a simple questo do, but we are following the right scholar, Simon Poole, adding “The tion: why the Mediterranean Diet has path.” roundtable is a great metaphor to become so important in the United Education was a central point at the make clear that we need to deliver States today? “Because it is healthy, it MDR. Even in Europe, most individuthese best practices outside of the is delicious and seductive. The list of als are unfamiliar with the specifics academic world, to the population.” the UNESCO intangible cultural heriof the Mediterranean Diet. “I dream “We need more community engagetage includes the Mediterranean Diet a world where, even in London, peoment, a new policy for the products as its main value propoand to keep pushing sition,” said Rafi Taherifor educational activian, AVP Yale Hospitality, ties in schools,” added during his welcome reDaniele Del Rio, Italian marks, adding “Colleges researcher at Parma and universities are imUniversity, explainportant places where the ing how the Italian food education has to schools are working on take place. Here at Yale this topic, adding, “We we believe in a commuhave to stop thinking nity-based healthy food. that punitive taxation We serve about 4 million of junk food is the conThe prestigious UN panel, moderated by Rafi. L to R: Mr Menelaos Menelmeals every year, 14500 structive. Education is aou (Cyprus), Ambassador Dionyssios Kalamvrezos (Greece), Ambassameals per day, educating the answer.” dor Inigo Lambertini (Italy), Pablo Saavedra (Spain), and Rafi Taherian

24 • August 2018 • Total Food Service • www.totalfood.com

The glamorous VIP event in the Gem Room at the Peabody Museum. Recently renovated, the Gem Room is truly a fascinating place, with tens of cases showcasing beautiful gems and rocks. The lovely dinner had an exquisite set up and an unparalleled service.

In addition to the powerful presentations provided by Professors Prokopios Magiatis and Dr. Eleni Mellioue, exploring the science behind the benefits of extra virgin olive oil, Professor John Wargo, of Yale University, highlighted the important and sometimes dramatic relationships between “responsible food” and environmental sensitivity. To close the first day, four delegates from the United Nations Missions presented a governmental perspective on the Importance of the Mediterranean Diet to society, culture and state. Pablo Saavedra (Spain), Ambassador Inigo Lambertini (Italy), Ambassador Dionyssios Kalamvrezos (Greece), and Mr. Menelaos Menelaou (Cyprus) discussed why, from

continued on page 100

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August 2018 • Total Food Service • www.totalfood.com • 25

NEWS

EXPERIMENTAL KITCHENS

“THE KITCHEN” From Stratas Foods Sets The Standard For Recipe Development With Partner Companies Just three miles outside of New York City is a different kind of corporate test kitchen

tratas Foods invites media to experience THE KITCHEN, the most customer focused experimental kitchen in the industry. Located just three miles outside of NYC in Englewood, New Jersey, Stratas brings its customers in to THE KITCHEN to experiment, test and invent new recipes. THE KITCHEN is designed to be a creative multifunctional space that morphs into different things depending on the need. Ideations and innovation sessions with Chefs and Branding teams, Sales training, Marketing and Branding, bringing sauce ideas and food to life in real life applications, the testing and building of sauces, dressings and marinades. Leading the culinary solutions team at THE KITCHEN is Chef Vincent Barcelona, an industry veteran and recognized talent in the culinary arts. “We designed THE KITCHEN to provide corporate chefs, product development and marketing professionals with a culinary environment like no other,” states Barcelona. “We know that the competition is fierce in the Large Chain QSR market and restau-

rants overall, so having a creative facility like this enables us to work with customers to brainstorm, identify and create their next winning recipes. It’s exciting and extremely gratifying.” Stratas’ goal is to partner with its customers to create new and exciting menu items. Whether it is the uses of fats and oils, or looking for the next opportunity to use sauces, dressings

26 • August 2018 • Total Food Service • www.totalfood.com

and mayonnaise in a very creative way, THE KITCHEN is a resource to bring products and menus to life. For recipes requiring custom formulations, the Stratas Research Development Innovation (RDI) Center, in Memphis, TN, can help advance a unique recipe from a concept to a fully commercialized and deliverable product.

“The bottom line is that THE KITCHEN is intended to be unexpected when you walk through the door. I did not want a sterile or corporate feel, it is a space that speaks to creativity, open-mindedness, thinking outside the box… coloring outside the lines,” explained Barcelona. “The Kitchen is the creative front end and bridge to our RDI center, our Research Development & Innovation center in Memphis where our food science and commercialization happens.” “Flavor trends and exciting new menu items don’t just happen,” added Barcelona. “They are usually the result of imagination and hard work.” THE KITCHEN is designed with different functional areas to take customers through the creative process of menu development. Options for seating are designed to accommodate dif-

continued on page 28

August 2018 • Total Food Service • www.totalfood.com • 27

Stratas Test Kitchen, from page 26 ferent group sizes, participation and observation needs. These include the lounge soft seating area with a coffee table, high-top table seating, marble bar with stools, custom wood farmhouse table and seating, and finally the kitchen area itself. So that guests can test and create recipes of all kinds, THE KITCHEN features include: • Frying equipment • Vulcan stove and oven • Plancha/Griddle with refrigerated drawers below • Grilling equipment • Custom stainless-steel center island with bun racks and refrigerated drawers • UNOX combi-oven • Hobart mixer • Kitchen Aid mixer • Vita-Mix blender • Robot Coupe food processor • Reach-In freezer

• • •

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Those chefs, restaurant owners and other interested parties who would like to partner and ideate with Stratas on the next great restaurant menu item, sauce or condiment should

28 • August 2018 • Total Food Service • www.totalfood.com

contact culinarysolutions@stratasfoods.com. About Stratas Foods: Stratas Foods LLC is the leading supplier of fats and oils, mayonnaise, dressings and sauces to the Foodservice, Food Ingredients and Retail Private Label markets in North America. Stratas benefits from more than 200 years of combined ex-

perience in the fats & oils industry, and almost 75 years of experience in mayonnaise, dressings and sauces, which is evident in the company’s industryleading Research, Development and Innovation (RDI) Center. The RDI Center enables Stratas’ team of scientists to develop, test, and prototype a wide range of innovative products in wellequipped labs and pilot plant facilities. With production facilities in Illinois, California, Texas, Tennessee, New Jersey, and Georgia, and distribution centers across the U.S. and Canada, Stratas Foods is well positioned to meet the needs of its customers. Stratas Foods is committed to producing the highest quality food products at a competitive price, while providing industry-leading transportation, distribution, and customer service resources. For more information about Stratas Foods, visit www.stratasfoods.com.

August 2018 • Total Food Service • www.totalfood.com • 29

Q&A

EXCLUSIVE FOODSERVICE INTERVIEW

Missy Robbins Head Chef & Owner, Lilia, Brooklyn, NY

issy Robbins was named 2018 Best Chef: New York City at the James Beard Foundation Awards in Chicago earlier this year. Her Brooklyn restaurant Lilia has emerged as one of the nation’s most talked about eateries. After graduating from Georgetown University, Missy Robbins took a job in DC, where her passion for food led her to launch what has become a legendary career. In 1994, she moved to Manhattan, studying at the Peter Kump’s New York School of Cooking (now ICE). An externship under Wayne Nish at March was followed by a job at Arcadia under the guidance of Anne Rosenzweig. Robbins spent the next few years between the two restaurants, ultimately taking a position as sous chef at The Lobster Club. But a trip to Northern Italy was the real pivotal step for Robbins, who worked her way through the restaurants, from family run, rustic trattorias to Michelin-rated Agli Amici. Robbins returned to the US at the acclaimed Spiaggia in Chicago. She worked as executive chef under Tony Mantuano. Robbins finally brought her Italian expertise—and accolades—to New York, accepting a position at A Voce in 2008. After departing A Voce in 2013, she took a year off to rediscover her groove and then opened Lilia. Success in Brooklyn has now led to the impending opening of a second

as-yet-unnamed restaurant in Williamsburg which is expected to open later this summer. Total Food Service chatted with Missy Robbins about her views on the industry and what lies ahead. What did it feel like to win the James Beard Award as New York City’s Top Chef? It felt great. It was really nice. I think it’s really a special award and you know New York is obviously a really saturated market so it makes it ever more special. The other nominees are all my peers and people I’m friends with. Just to be nominated I think is amazing. To win it just feels like a really nice achievement. The energy of winning is something that even motivates you more. What matters to me most is doing what I love to do and cooking at a level I’m excited about. What we strive for at Lilia is to create a restaurant and food that excites people and makes people happy. It’s sort of interesting to see the difference between earlier places in my career where it was a goal of many to have accolades and Michelin stars. It wasn’t a goal of mine at first. I think that they’re amazing and they’re really nice when they come. If you just do what you do and do it well, it’s better than getting any award and having a

30 • August 2018 • Total Food Service • www.totalfood.com

continued on page 32

Missy Robbins, Head Chef & Owner, Lilia, Brooklyn, NY

August 2018 • Total Food Service • www.totalfood.com • 31

Q&A Missy Robbins, from page 30

restaurant where people leave happy every night to me is more important than getting the award. For those who may not know you talk a little bit about what sparked your interest in cooking? I grew up in a family that was really food centric as mom entertained a lot at home. We lived about an hour and a half from New York in North Haven, CT and every special occasion was spent at a fancy restaurant in Manhattan. I was really fortunate as a young person to travel a lot with my family. They would take us to Michelin star restaurants and I was fascinated by it. I think honestly what sparked the cooking was the fascination by the actual whole experience and cooking. I just loved it and to this day I love cooking and looking at the dishes. I went to Charlie Trotter’s in Chicago during my college years and had this incredible meal and said OK this is it this is what I want to do. That was 25 years ago.

If you just do what you do and do it well, it’s better than getting any award and having a restaurant where people leave happy every night to me is more important than getting the award. What led you from a degree from Georgetown to a career in cooking? I was in Georgetown going to graduate and all of a sudden I ended up in the restaurant business. I actually started cooking in my last semester senior year. I said I would do it for a year and see how it went. I got really into it and I loved it. I worked at a restaurant for about a year and a half. I graduated in ‘93 and I took the summer off then came back and worked there and eventually I went up to the Berkshires and worked at this beautiful hotel called the Wheatley, then I

The interior at Lilia in Brooklyn, NY, as head chef Missy Robbins (c) works in the kitchen.

32 • August 2018 • Total Food Service • www.totalfood.com

went to Peter Kump’s school, which became ICE and then stayed in New York for nine years. How about mentors that had an impact on your industry. I worked with the Rosenzweig’s for a really long time and Wayne Nish. Tony Mantuano in Chicago became my biggest mentor and friend and we’re still friends and I’ve been gone from Chicago for over 10 years and I still talk to Tony. I already had the passion for cooking when I went to work for him. I was already in my 30s. I hadn’t cooked Italian food in

the States when I worked for him and that gave me a huge opportunity to gain an understanding of the foundation of Italian cooking and fine dining and how those two things intersect. He also had a really calm demeanor about him and how he ran the restaurant. I always looked up to him and wanted to aspire to be like that. It took me a long time to get there and it was not easy to do. How did A Voce come to pass? I lived in Chicago and I loved Spiaggia. If they had a NYC restaurant there’s a large chance that I’d still be with them but I really wanted to come back to New York. I’m from Connecticut and New York was sort of home to me. I always hoped that Chicago would sort of become the place that I would stay but it never felt like home to me. I loved Tony and my brother lives in Chicago with my niece and nephew and my sister in law. I had been trying to open my own restaurant for a while. Tony was trying to help me and it just wasn’t working. Someone said you should apply to A Voce in NYC. I thought they were crazy but I applied at A Voce and got the job. That’s what brought me back to NYC. What’s your take from that experience at A Voce? I was there for five years and it was really the first time that I was the chef in New York and it was the first time that I was a chef without a chef owner/chef partner above me. So all of a sudden I had no Tony and I had no crutch and I kind of had to figure it out on my own. Even though for a long time when I worked for Tony I was cooking my own food. I was looking through his lens. This was the opportunity for me to start developing my own style. I’ve really developed my own style more in the last couple of years.

At the same time I had the responsibility for two teams, two chefs. My goal was to help the chefs turn into what they wanted to be - a virtue that was really significant for me. Talk a little bit about that style. You know it’s funny the style I always talk about is Spiaggia. The dining room I loved and I wanted to cook on that level. It was always challenging for me and it wasn’t my natural sort of state of being. And I think when I got to A Voce I landed somewhere in the middle of the cafe and the dining room that still had an elegance to it. But it wasn’t so precise and so fancy and so garnished. And I just was cooking at home a lot and thinking about how I wanted to open a restaurant and what that would be and what that looked like. And I just sort of landed in a place where I’m cooking food that I would

want to eat. I sort of took a lot of what formed my home cooking and just sort of took that up a level without losing some of that casualness to it. I never lied by calling my food rustic. To me it makes the most sense as I kind of stripped away a lot of the bullshit. It’s not about what it’s garnished with anymore and having things to finish. It’s really about taking a few ingredients and making them shine. Does that mean what used to be a 35 or 40 dollar entree is now a 25 dollar entree? It has nothing to do with price. That’s not my style, it has nothing to do with prices. This has to do with cooking food that I would serve every night giving people a reason to come to Lilia where they’re going to

continued on page 34

From the Lilia menu: (top) Lamb Leg Steak, Roman Spices, Fennel, Celery; (bottom) Grilled Clams, Calabrian Chili, Breadcrumbs.

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Q&A Missy Robbins, from page 33

THE FRESH ORIGINS

be excited to come night after night. I always wanted people to crave the food. People come here expecting to get excited about the food rather than changing an entire menu every four weeks. I mean it’s more exciting to have a place that has the stability to it and you know that on any given night you can come here and have rigatoni with the tomato sauce. And it’s always going to be there, not a special that comes and goes. Could you operate the same way in Manhattan? I don’t look at Lilia as a Brooklyn restaurant. I look at it as a restaurant that I happened to build in Brooklyn. But there’s no difference between what I would do if I lived in Manhattan and what I do here. But there are times I really want to run something that’s a little more expensive and we kind of do it off menu. We run a ribeye we sell six or seven a night that’s it. And you know it’s definitely obviously more expensive than anything on our menu but we really enjoy having it. Our guests love having it and I’m not restricted in any way, there’s no one telling me what I can and cannot put on the menu based on finances. We do what works for our business. Popeye used to say, “I am what I am.” Can we really change? At my core I was always a good person. I had two really challenging restaurants and it was my first time really being in charge of them. My fuse was probably shorter than I could have been at times. And I also had a staff that stayed with me for a really long time because there was a lot of nurturing going on but I wanted to create an environment in a restaurant for the front of house and back of the house that was just different than that and where it was calmer.

But I’m also just a calmer person and my role is very different. So you know if I was still expediting six days a week I think things would be different. I’ve created a situation for myself that really works for me and for our team. I get to do all the things that I want to do and still create and still be in the kitchen when I need to be in the kitchen without being there for 14 hours a day. That’s a big part of me being able to perform at the level that I can perform because I found a way to create balance both in my career and outside. So did you do it internally by delegating? I’ve always been a delegator. I know I just kind of have a calmer demeanor. I’m just a healthier person in mind and body. Anything from an exercise standpoint that you can share. Have you gotten into meditation? Not really just pilates. Doing pilates for five years now on a fairly regular schedule and I go through spurts of trying to do cardio and I eat very differently than I used to. And I lost a lot of weight and I’ve kept most of it off. Are those changes you made in your own diet also reflected in the restaurant? When I started Lilia I had cut so much of the fat from my cooking that I sort of readjusted that in the restaurant too and obviously we still use butter and we still use olive oil but I definitely use less of it and it doesn’t change how the interesting the food is. As you look at opening a new restaurant what are the priorities? Well we are building a staff and

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Q&A Missy Robbins, from page 34 building a menu. Building a beautiful space and making sure it functions like it has been a long time. I started this process well over a year ago. How did this part of this opportunity come about? We were looking at the old Domino Sugar factory from a rooftop and my business partner said: Well that would be cool to open a restaurant. He’s a very ambitious young man and he found the developers Two Trees. He got in touch with them the next week. The redevelopment of the waterfront down here was available and we started talking to them and it was a no brainer for us. We live in South Williamsburg and it’s three blocks from where we both live and we’re really excited about just kind of being part of the growth of a neighborhood.

with a lot of the same people and that’s worked for me. We’ve worked with folks like I Halper for 10 years. One of the newer ones we’ve taken on that’s been really great for us is Greenpoint Fish. They’re a smaller company and they have a lot of local fish and they’re just good guys. So it’s sometimes nice to take on the supplementary companies who you work in conjunction with the companies that you already have

Can you give us a preview of the menu at the new restaurant? There will be no overlapping items. But the style of cooking will be the same. I’m not looking to go fancy or going to be the same style cooking in Italian but just different dishes. So as you look at opening this new restaurant what are some of the things that you’re battling with? Is this tip credit issue concern you? I haven’t really thought about it. It’s not like I don’t want to think about it. It’s just not on top of my mind at the moment. What’s your approach to your vendor relationships? Do you reward loyalty or just go out to bid? I’ve been using the same vendors for a really long time and I know sometimes it’s fun to take on new vendors. But for the most part I have found across the board that having those relationships and trust goes a really long way. I try and stick 36 • August 2018 • Total Food Service • www.totalfood.com

relationships with. Seems like a TV show and restaurants in Las Vegas and Dubai have become mandatory to building a brand? Where does that fit with your schedule? I don’t do a lot of TV and I think there are many ways to build a brand besides TV. The way I’m trying to build a brand is by building really solid places that have consistency

and feel like home to our guests and our staff. I think that goes a long way. There’s nothing wrong with TV and I’m not going to say never because that would be silly. But it’s not my biggest ambition. It’s not even close to my big ambition. My ambition is to just be good at what I do and what I do best. All photos by Evan Sung

August 2018 • Total Food Service • www.totalfood.com • 37

FIORITO ON INSURANCE Containing the Aftermath Of Contamination: Protect Your Restaurant From The Damage Of A Food-Borne Illness Outbreak

restaurant chain experiences an E.coli outbreak resulting in the temporary closure of multiple sites. A restaurant food supplier reports a contamination of its product. Malicious tampering of a restaurant’s food threatens to cause a reputational disaster. These are just a few examples of the unique exposures restaurants and other types of hospitality entities face when it comes to food-borne illnesses and contamination. The Centers for Disease Control & Prevention (CDC) estimates that each year roughly 1 in 6 Americans become sick from consuming foods or drinks that are contaminated with harmful bacteria, viruses or parasites. The most important responsibility of a restaurant owner/manager is to keep the food you serve safe and fresh for your patrons. However, if a restaurant falls victim to a foodborne illness, the patrons aren’t the only ones at risk. The financial and social impact of a food borne-illness outbreak can greatly damage your bottom line, reputation and even result in the closure of your operation. Prevention Best Practices: If your restaurant is part of a chain or group, it is difficult to control ev-

The most important responsibility of a restaurant owner/manager is to keep the food you serve safe and fresh for your patrons. ery aspect of food handling across all locations; however, there should be a protocol established with best practices for risk management and proactive safety procedures, coupled with adequate training, to make sure that each manager/owner is following the proper instructions to handle food appropriately. The use of food safety practices by the entire organization minimizes the chance of a food-borne illness outbreak. To manage the risk of food-borne illness, you must implement policies that focus on good health and hygiene practices and ways to maintain the viability of the business. Every food establishment uses, processes, and sells food differently. However, the general issues and key principles of food safety remain the same. All food safety training programs should contain these three main factors: • Personal Hygiene for Food

38 • August 2018 • Total Food Service • www.totalfood.com

• •

Professionals Time & Temperature Control Cross-contamination Prevention

Robert Fiorito serves as Vice President with HUB International Northeast, a leading global insurance brokerage, where he specializes in providing insurance services to the restaurant in-

Here are some ways you can make sure your food safety plan will be effective:

dustry. As a 25-year veteran and former restaurateur himself, Bob has worked with a wide array of restaurant and food service businesses, ranging from

•

Establish clear, actionable goals for the safety of the customer and the health and productivity of your business. Ensure consistent support throughout your company for the plan, starting with senior management. Have a formal crisis management and communication plan that establishes clear roles and responsibilities, and addresses potential product recall events. Educate employees on the steps to be taken in a crisis situation.

fast-food chains to upscale, “white tablecloth” dining establishments. Robert can be reached at 212-338-2324 or by email at robert.fiorito@ hubinternational.com.

Financial Impact/Insurance Coverage: Food-borne illness claims are among the greatest financial risks facing the food industry. Against this backdrop, restaurants also have to contend with the negative publicity and inevitable fallout from such

continued on page 98

August 2018 • Total Food Service • www.totalfood.com • 39

ASK ANDREW

FROM THE NYC HOSPITALITY ALLIANCE

PRESENTED BY

Tip Credit Rally Recap

he NYC Hospitality Alliance was proud to stand alongside a diverse coalition of 250 restaurateurs, tipped workers and advocates at our rally calling on Gov. Cuomo and the Department of Labor to save the tip credit! When called upon to have your voices heard, NYC Hospitality Alliance members came out en masse and sent a clear, strong and respectful message that eliminating the tip credit will be disastrous for our city’s restaurants and bars. We could not have been prouder of this grassroots effort and seeing you all engaged in the political process. Tipped restaurant and bar workers from all walks of life also made powerful arguments about why New York State must keep tip credit intact, in its current form. In addition to everyone who testified we submitted nearly 1000 “Save the Tip Credit” cards signed by operators and workers from all over the five boroughs. Here is a transcript of the NYC Hospitality Alliance’s testimony: My name is Andrew Rigie and I am the Executive Director of the New York City Hospitality Alliance, a not-

Andrew Rigie is the Executive Director of the New York City Hospitality Alliance, a trade association formed in 2012 to foster the growth and vitality of the industry that has made New York City the Hospitality Capital of the World.

for-profit organization representing thousands of restaurants and bars. For the record, I would like to submit these more than 700 pieces of testimony from restaurant operators and workers who are busy at work and unable to be here today. Additionally, it should be noted, the many more

40 • August 2018 • Total Food Service • www.totalfood.com

who attended our rally earlier, and others will miss their chance to testify because they need to get back to run their restaurants. But let it be clear, all of these New Yorkers, collectively call on Governor Cuomo and the Department of Labor to preserve the tip credit in its current form.

You have heard powerful stories on both sides of this issue. But I must correct some of the misleading and incorrect arguments that have and will be made in favor of eliminating the tip credit. 1. Fair and equitable regulation is fine. Excessive and unrelenting regulation is not. We supported the $15 minimum wage, anti-harassment training and strong worker protections. But between market pressures and the most competitive restaurant

continued on page 42

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Tip Credit Rally, from page 40 scene in the world, our industry needs to breath. We need relief, not more regulations. By the end of 2018, recent labor mandates for restaurants in NYC include doubling the tip wage in a mere three years. Eliminating the tip credit would triple it. Six consecutive, annual minimum wage increases. A $300 increase to the minimum weekly rate for salaried employees, paid sick leave and healthcare costs. Plus, the upward pressure these increases placed on wages as a whole. Eliminating the tip credit would cost an additional $14,000 per full time, tipped employee, per year. Please have empathy and imagine if your personnel expenses increased 200% within a few years. 2. Raising the tip wage will not reduce wage theft. We stand in solidarity with all workers who testify about horrible work conditions they’ve endured. We do not believe, however, that an employer who breaks the law

now, will magically comply with the law if you make them pay more. If you eliminate the tip credit the damages will be bigger and honest employers and workers will be hurt. 3. If sexual harassment is tied to tipping, this proposal does nothing to change that: If advocates believe there is a correlation between tipping and sexual harassment then why do they say they want to preserve the tipping system, rather than abolish it? Even if New York eliminated the tip credit, by their own admission, employees would still rely on tips for income, therefore, according to their logic, workers will still be trapped in an economic system that perpetuates harassment. Sexual harassment and exploitation is unconscionable and illegal and that’s why our state and city passed mandated anti-sexual harassment training we support. 4. Comparing NYC to California is purposefully misleading: West Coast

restaurants are not all thriving, and many are furious by the fake news campaign suggesting they are. In fact, there is a campaign to get a tip credit. Earlier this month, The New York Times ran a story about San Francisco showing that service staff there is being eliminated due to labor costs, which includes no tip credit. Even considering this, in California, commercial rents are much cheaper than NYC. Food costs are much less. Comparing NYC to California is comparing apples and oranges. 5. The data already shows that the industry is hurting here in NYC: Since the tipped wage increased in 2015 the full-service restaurant industry in NYC is changing and hurting. Annual employment growth averaged almost 7%. It then dropped to less than two percent. During a similar period, there was 23% growth in full liquor and beer & wine licenses. After the 50% increase in the tip wage, it plummeted

to less than two percent. 6. Tipped employees here in NYC are doing quite well, thank you. Our survey covering more than 14,000 tipped workers, found their median wage to be $25 an hour. According to The Justice Will Be Served Campaign represents low-wage workers, most of whom make less, still do not want the tip credit eliminated either. You’ve heard the stories from struggling restaurant owners. You’ve heard from workers who have had their hours and overtime cut back or lost their job. New Yorkers are saying, “You’ve got to be rich to eat at a normal restaurant in NYC these days.” We are confident that Governor Cuomo and the Department of Labor’s commitment to worker rights and economic opportunity are not at odds. We can increase enforcement of wage theft and harassment laws, while keeping the current tip credit intact.

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42 • August 2018 • Total Food Service • www.totalfood.com

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SCOOP

INSIDER NEWS

$10 Million Renewed Offer To Buy Historic Pastrami NYC Landmark Scoop notes former dishwasher at the iconic Carnegie Deli has once again made a $10 million bid to purchase the New York City landmark. Sammy Musovic, who presented the owner with a $10 million dollar check in 2016 but was rejected, has once again called on the owner to sell the establishment, which is regarded among the city’s most notable tourist destinations. The Deli opened in 1937 and closed last December. Leading up to the closure, there was public outrage about the closure of, debatably, New York City’s most well known and culturally significant sandwich shop. New Yorkers viewed corned beef sandwiches from Carnegie, the way Philadelphia residents view cheesesteaks. “New Yorkers had the last matzo ball drop when the iconic deli shut their doors. The place was a tourist destination and home to millions of memories of heartburn of foot

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FROM METRO NYC’S FOODSERVICE SCENE

Sammy Musovic

long sandwiches that has now turned to pure heartbreak. We must find a way to save the Carnegie Deli. The former owner Milton would roll over in his grave to see the place empty. I wish they would take my ten million dollar offer, it’s a lot of knishes.”

Chef Daniel Boulud Created the ‘Umami Frenchie’ Burger for Bastille Day Scoop notes that in time for Bastille Day, the French national holiday July 14 and a major World Cup showdown took place that day between France and Croatia the Umami Burger was released - a gourmet burger in collaboration with Michelinstarred French chef Daniel Boulud. Called the “Umami Frenchie” burger, the new menu item from the premium burger brand features a beef patty topped with caramelized onions, tomato compote, pork belly rillons, Dijon mustard, tomatoes, Raclette cheese and arugula. Boulud is one of several chefs who jumped ship from France to become permanent ambassadors of French gastronomy in the US. That group also includes Eric Ripert and Jacques Pépin. A dollar

continued on page 46

August 2018 • Total Food Service • www.totalfood.com • 45

Scoop, from page 44 in Mexico City this year. The company also has ambitious international expansion plans that include 40 more locations across Mexico, a dozen in Japan, along with locations in the United Arab Emirates and Qatar.

Sobocinski Sets New Haven Reboot Chef Daniel Boulud

from every Umami Frenchie burger sold will go to Citymeals, which provides New York’s homebound elderly with meals and companionship. It’s the latest development from the premium burger brand. The company also announced a partnership with Impossible Burger, the plant-based faux-meat product that looks, smells and tastes like beef. Impossible Burgers will be sold at Umami Burger restaurants for the next two years. Umami Burger has 22 locations in California, New York, Illinois, Nevada and Japan, and is scheduled to open more locations

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Scoop notes after 10 years, Caseus Fromagerie & Bistro in New Haven closed last month, only to be replaced with a new restaurant with more services and a revamped interior, but the same familiar faces, in early September. Jason Sobocinski, the original owner, said when his chefs approached him with a business plan and said they wanted to go out on their own, “I fell in love with it and I thought this is the future of the industry.” Chefs Craig Hutchinson and Alex Lishchynsky bought a “good chunk of the percentage of the business” and soon will be announcing a new name and more details, while Sobocinski said he will help them launch it and keep it running. Hutchinson said they have been listening to Caseus’s clientele to see what they want. “We

weren’t throwing away Caseus, we were more embracing what his guests love,” he said. They plan to bridge their fine dining backgrounds in Boston and New York into the “grab and go market.” “Quick service is the way people dine now,” Hutchinson said. “People’s schedules are busier and they don’t have two hours to be able to sit down and enjoy the whole experience.” He said they will still have a sit-down service, but he felt they were losing too much business by not embracing other services. “If we don’t change that now, we are going to be left in the dust by people who are going to do that,” Hutchinson said. They said they will also have a take-out section with full dinners ready to go, so people can grab them after work and quickly serve them at home. Another big change will be the hours. Caseus now is open Wednesday through Saturday for dinner and Monday through Saturday for lunch. The new restaurant will be open Monday through Saturday for dinner and for brunch on Saturday and Sunday. The cheese shop downstairs will be converted to a sandwich shop that will be open from 7:30 a.m. to dinnertime, allowing the restaurant to serve

continued on page 48

August 2018 • Total Food Service • www.totalfood.com • 47

Scoop, from page 46 breakfast and lunch, as well as dinner. The chefs said they want to take the attention to detail they have employed in their 10-year careers in fine dining and apply it to a lower price point and a quicker turnaround.

Eggslut Chef Alvin Cailan Opens His First NYC Restaurant

short rib, brisket, and chuck and topped with grated tomatoes, roasted garlic aioli, and onions. There’s also a full bar, with a wine list of 150 small-producer labels selected by Cailan’s brother, sommelier Anthony Cailan, most from Europe and California. The design at the restaurant inside the Nolitan Hotel is also full of California influence. It’s filled with light wood, concrete, pink walls, and a pink granite bar top. “I think if you came here, you’d know the operators are from California,” Cailan said. He wants the restaurant to become a neighborhood fixture, rather than a destination spot. Cailan himself settled in the neighborhood in April, but has spent many months in New York City, all with the goal of opening his first real New York restaurant. “I’m 35 now, so we really wanted to have the experience of opening a regular restaurant in the major leagues of food and have fun at the same time.”

NYC Hotel Debuts Most Expensive Ice Cream in America Chef Alvin Cailan

Scoop says Alvin Cailan will finally put down restaurant roots in New York City as the Usual restaurant opened last month. The chef, who rose to restaurant world fame with Instagram-worthy egg sandwiches at LA’s Eggslut, has been cooking in New York for more than a year now at various pop-ups, but the Usual will be his first permanent restaurant in the city he now calls home. “I don’t want to open an LA restaurant in New York. It just doesn’t make sense, it doesn’t feel right,” Cailan said. And with the Usual, Cailan has dreamed up a New York-specific restaurant, entirely absent the egg sandwiches he’s known for (the sandwich, not surprisingly, has inspired many rip-offs). Although Cailan once toyed with opening a permanent location of his breakfast popup Paper Planes, at the Usual he’ll do American comfort food for dinner with an “immigrant” spin. “It’s comfort food, but I’m Filipino, so there are some Filipino influences,” Cailan said, “but I grew up in LA, so also some Mexican-Latino influences. And my sous chef is Chinese-Vietnamese from Houston. So the way we think of food and our flavors are completely different.” The menu features fried chicken alongside kung pao cauliflower, edamame hummus, and kimchi spaetzle. Unsurprisingly, given Cailan’s popular Bob’s Burger pop-up at Chef’s Club Counter, there’s a burger on the menu. At the Usual, it’s made from 48 • August 2018 • Total Food Service • www.totalfood.com

Scoop feels a $1,500 ice cream is the most expensive in America. People love their ice cream the average American eats about 23 pounds of ice cream every year, in fact. But there’s one ice cream sundae found in New York City that’s far from typical. The “Bear Extraordinaire,” which debuted last month at Baccarat Hotel New York in Manhattan, is the country’s most expensive sundae, and it will set you back a cool $1,500. The base of the dessert is house-made vanilla ice cream using “imported vanilla beans from Madagascar,” pastry chef Rosario Wakabayashi said. The ice cream is covered in a white chocolate shell that’s hand-painted with colored cocoa butter. It sits atop 3 grams of black truffle crumble (an ounce of black truffle costs an average $95), which is portions of black truffle mixed with high-end 64 percent Manjari dark chocolate (also from Madagascar) and Valrhona Gold cocoa nibs. Enveloping the shell is a hibiscus champagne sauce, with citrus meringue, and it’s further embellished with delicate fondant butterflies sitting on angel hair sugar strands. The Edible gold and silver leafing adds an (expensive) touch of color. “We crack the ice cream shell open with a spoon. It’s a fun dish,” says Wakabayashi. Even fancier than the sweets is the dish, which gives the dessert its name. The ice cream is served in a $1,200 clear Baccarat “Zoo Bear” crystal bowl, which has a porcelain base decorated with a honeycomb motif and is topped by

The “Bear Extraordinaire” from Baccarat Hotel New York

crystal in the shape of a friendly bear’s face. Diners who buy the treat get to keep the figurine, which is individually numbered and signed by the designer. The ice cream dish without the bear crystal can be ordered for $300. The dessert is an edible work of art. Wakabayashi says she was inspired by color when envisioning her creation, and was influenced by the Baccarat crystal butterflies collection in the Grand Salon of the hotel, as well as the hues of Madagascar. Wakabayashi says “Bear Extraordinaire” is currently the most expensive ice cream dessert in the country based on her research. Close behind, Serendipity 3 in Manhattan sells a $1,000 ice cream sundae. Serendipity 3 also made the Guinness Book of World Records in 2007 for a $25,000 sundae, which is no longer sold. In Tanzania, there’s a $60,000 sundae that comes with first-class flights and five-star accommodations with Three Twins Ice Cream. An actual ice cream you can buy on the website, “The world’s more expensive most expensive ice cream sundae” includes a guided climb to Mount Kilimanjaro. There, the Three Twins Ice Cream’s founder “will hand-churn a batch of ice cream with glacial ice from the mountain’s summit.” The price includes as much ice cream as you can eat.

Garden State Inmates Serve Meals While They Serve Time Scoop notes it’s late morning and the staff at Mates Inn is preparing for the lunchtime crowd. The crew has been cooking since 8 a.m. and evidence of their work fills the kitchen. The aroma of rotisserie chicken mixes with barbecued short ribs and fresh-baked bread. In addition to serving gourmet

continued on page 50

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Scoop, from page 48 meals, most of the staff is also serving time. Mates Inn is located in a nearly 90-year-old, red brick building on the grounds of the New Jersey Department of Corrections’ central office campus on Stuyvesant Avenue in Trenton. This restaurant serves as a full functioning business and a classroom for inmates learning the culinary arts. You won’t see a giant sign advertising this eatery, but it’s open to the public for lunch Monday through Friday, from 11:30 a.m. to 1:30 p.m. Between eight and 10 inmates travel from Garden State Youth Correctional Facility, which generally houses inmates in the 18-30 range, to work at Mates as part of the prison’s vocational training program. Two chefs oversee their students as they handle all aspects of restaurant operations, including developing menus, preparing meals, baking and serving customers. These are all minimum-security inmates within 24 months of release. “We’re just basically training the guys to be able to get a job when they get out,” explained Mark Yaris, supervisor of education with the Department of Corrections. “They do it all with the direction of the two chefs. Everybody gets a turn at pretty much everything.” Mates Inn is fullservice restaurant where inmates learn. Doing everything includes using knives in food preparation. Offi-

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cials take precautions to prevent any security issues, but note that these inmates have been screened and understand the importance of following the rules. No one recalls who cooked up the name Mates Inn a play on the term “inmates” but it’s been around for more than 30 years, providing lunch at reasonable prices for both state employees and anyone else hungry for a good meal. “The culinary program is popular with inmates for a few reasons,” Yaris says. They receive training in a field, which hires ex-offenders and has a high demand for talent. “It’s also a job that if you get it you never go hungry,” he adds. Before these trainees set foot in the kitchen, they earn their ServSafe certifications, learning the essentials of food preparation, storage and safety. ServSafe is a training and certification program administered by the National Restaurant Association. Armed with that certificate, these guys have a head start as they look for work on the outside.

KeyImpact Acquires Creative Sales and Marketing Group NYC

Scoop notes KeyImpact Sales & Systems, Inc. further strengthens packaging and supply resources with acquisition of Creative Sales and Marketing Group, Inc. of New York City. “This addition will strengthen KeyImpact’s Packaging and Supply resources in the Mid-Atlantic Region and help us move even further to the forefront of the Packaging and Supply industry,” noted Key Impacts’s Dan Cassidy. Creative Sales was established in 1989 and is owned by Edward Toby, Fred DeFazio, Michael Biolsi, Kevin Haggerty, and Anthony Aprile. These gentlemen bring many decades of industry knowledge and experience to KeyImpact. Creative’s innovative approach to business is perfectly aligned with KeyImpact, and together, we will increase our clients’ and customers access to valuable resources and long-standing industry relationships. Creative’s President and Partner Eddie Toby stated, “We are excited to become an integral part of the KeyImpact family allowing us to meet the challenges of our rapidly changing industry embracing contemporary technology and enhancing customer relationships.”

August 2018 • Total Food Service • www.totalfood.com • 51

NEWS

KITCHEN PRINTING SOLUTIONS

Intelligent Automated Processes Are A No-Brainer For Food Industry Could these 4 innovations save you money?

he food industry—regardless of which sector—is becoming increasingly complex. Compliance issues are at the forefront when it comes to food safety, labeling, nutrition information and more. The demands, often overwhelming, require a lot of legwork, leaving operators struggling to find time for everything else—from managing employees to maximizing profits. What if a large portion of the things on your to-do list could be solved with automated processes? Automated processes decrease the sweat equity you have to invest, not to mention the repetition of paper logs and hand-labeling. Besides, tracking things like nutrition information, inventory as well as day-today tasks will lead to efficiency and a bigger bottom line. Avery Dennison, a global leader in materials science and manufacturing, in May unveiled four food industry innovations at the National Restaurant Association’s 2018 Expo under its Freshmarx® brand. •

Freshmarx® Nutrition: After a long “grace period,” the U.S. Food and Drug Administration implemented its policy requiring labeling ingredients, calorie counts, fats and carbohydrates (among other

train employees, label food and rotate inventory, tracking everything on the spot. •

Freshmarx® Food Donate and Waste: Over-ordering leads to waste and lower margins. This application utilizes a weigh scale – along with labeling and logging – so you can quantify how much food you really need. Seeing the cause-effect relationship between ordering and waste will help you streamline.

•

Freshmarx® Task Tracker™: Still using paper logs to monitor the temperatures inside coolers and kitchen tasks like cleaning and prep? The Task Tracker application offers a digital checklist that’s cloud based and stored digitally—a great way to compare performance over the short- and long-term.

Combining hardware, software, applications, labels and service, Freshmarx solutions are scalable to facilitate everything from nutrition, ingredient, date code and graband-go-labeling, to food safety and compliance, to RFID inventory management and traceability.

things) for all grab-and-go items. This application utilizes ESHA Genesis R&D Food Formulation Software that imports nutrition information for different ingredients and recipes, taking the guesswork out of food labeling. •

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System: Getting organized often causes as much strife as the compliance issues themselves. This system offers mobile printing by combining the Avery Dennison 9485™ portable printer with the Freshmarx® Prep software application on an iPad, ® allowing back-of-house staff to

Automated processes decrease the sweat equity you have to invest, not to mention the repetition of paper logs and hand-labeling.

52 • August 2018 • Total Food Service • www.totalfood.com

One last word Sure, automated processes can be daunting—and it requires a little time and expense on the front end. But staying current pays off exponentially over time. Don’t be the operator who steadfastly refuses technology; you’ll get left behind.

The Avery Dennison® Freshmarx® suite of food industry solutions helps to ensure food safety, increase efficiencies, save money, reduce waste and enhance the consumer experience. With restaurants, grocery and convenience stores at the core, Freshmarx solutions are purpose-built to solve challenges throughout the food supply chain.

To request a Freshtrax analysis and explore how Freshmarx Solutions can improve your food service environment, email: printersolutions@averydennison.com or visit: averydennison.com/freshmarx

Freshmarx® intelligent food industry solutions increase efficiency, ensure food safety, save money, reduce waste and enhance the consumer experience throughout the food supply chain.

Increasing Efficiency | Saving Money | Ensuring Food Safety

averydennison.com/freshmarx August 2018 • Total Food Service • www.totalfood.com • 53

LEGAL INSIDER

WITH LAWRENCE A. ROSENBLOOM OF ELLENOFF GROSSMAN & SCHOLE LLP

A Guide To Raising Money For Your Restaurant

he menu and décor for your dream concept is set, and then you realize: how am I going to raise money to launch my restaurant? Here are a few important things to keep in mind when embarking on the task of seeking third party funding. Types of investors (and what to expect from each) Funding (excluding traditional bank loans) usually comes from two sources: friends/family and professional investors. Very often, friends and family want to help bring your dream to reality. Others like to invest so that they can experience the cache of “owning a restaurant”. While typically friends and family money is the easiest to raise and the least expensive (in terms of preferred returns or approval rights, as discussed below), the biggest challenge with taking friends and family money is just that: ultimately if something goes wrong, you’ll have your friends and family to answer to. The problem with cache investors is that they typically are either in your hair with lots of questions on how the business is doing, or they ask for favors (like a prime reservation or free drinks or meals). Professional investors have less emotion attached to them, but they are in it to score returns on their money, so their terms are usually harsher. Professional investors will likely ask for a preferred return on their money, meaning that they will

Raising money from investors can be uncertain and stressful, so use common sense, be honest, don’t be afraid to ask questions or get advice, and don’t be afraid to advocate for what you think is right and fair.

Lawrence A. Rosenbloom, Esq. is a member of Ellenoff Grossman & Schole LLP in New York City. He is a corporate, securities and brokerdealer attorney who represents clients

want to see the positive cash flow from the restaurant (cash less expenses) paid to them only until they have received their investment back plus a return (usually 6-8% per year) before the owner can participate in the cash flows (remember that owner salary comes out of cash flow, so push for that). Also, professional investors will very often insist on “major decision” approval rights that give the investor some control over the management of the restaurant, such as taking on bank debt, initiating or settling litigation, adding additional investors or selling the restaurant. Some investors will want even more approval rights, like menu changes or the hiring or firing of an executive chef. Remember: the more money an investor is investing, the less leverage a restaurant owner will have in negotiations (keep in mind the “golden rule” – he who has the gold, rules!).

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Types of Investments Typically, investments come in three forms: debt, preferred equity and common equity. Investors like to loan money (rather than being an equity “partner”) because debt is senior to equity in the unfortunate event of bankruptcy or liquidation. Debt usually comes with the most onerous financial and operational limitation terms. The contract for debt is a loan agreement, perhaps with a security agreement if a security interest in the assets of the restaurant is being provided. Preferred equity affords the investor a senior return on the positive cash flow of the business. These investors get their money out before the restaurant owner, and they typically require some operational approval rights. Common equity investors are the most owner-friendly. These are typically the “silent partners” who provide capital then receive returns

in all aspects of corporate and commercial law, with a particular focus on public and private equity finance, securities law compliance, mergers and acquisitions and broker-dealer regulation. During his career, he has developed significant experience in the life sciences and real estate sectors (including representations of restaurant owners and investors). Mr. Rosenbloom’s experience includes representation of issuers of securities as well as investors, underwriters and placement agents in connection with both public and private offerings of equity and debt securities in the mergers and acquisitions area. He can be reached by phone at 212-3701300 or by email at lrosenbloom@ egsllp.com

side-by-side with the owner. This is usually how friends and family

continued on page 102

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The Operator: Joe Meli, Owner, Prime 94 Steakhouse, Fairfield, NJ The Equipment and Supply Dealer: Michael Konzelman, Senior Project Manager, Economy Restaurant Supply, Clifton NJ

he new restaurant in New Jersey is causing quite a stir with locals. Not only because of their delicious and appealing menu choices, but because of its modern and enticing design. Prime 94 Steak House and Grill in Fairfield, NJ, is owned by Joe Meli and hopes to bring a Manhattan quality dining experience with the warmth of a hometown setting. Serving up a vast array of choices, the restaurant will have something for everyone’s tastes. From fresh oysters to signature burgers and, of course, some of the best cut steaks around! And to pay homage to his Italian background, Meli has pre-

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pared authentic pasta dishes that rival some of the best Italian restaurants in the city. But what’s even more enticing is the fact that the restaurant is perfectly designed to host a social hour, which is why Meli decided on such a large bar area. With its own social hour menu, Prime 94 is not only going to be a restaurant of choice for those looking for a delicious dinner, but also a hangout for those looking for a good drink and craft appetizers at the bar.

54,

Joe Meli’s Approach I remember getting home from school in Italy every day and my

grandma making pasta. She would make these wonderful sauces that smelled delicious. Every day the beautiful tomatoes and basil became her amazing pesto. My career started at a fine dining restaurant in Siracusa near my home. A friend of a friend said come see what we do. Like all good stories, someone got sick and the next thing I knew, I had a job. Prime 94 came to be because of prime meats and a prime location. My wife and I wanted to set the bar high and the name represents that goal. For many years the space was a German restaurant called The Bavarian Inn.

continued on page 60

August 2018 • Total Food Service • www.totalfood.com • 59

Prime 94, from page 58 Then it became an oyster bar and then an Italian restaurant for a number of years. When we got here, it was really run down. You could just see the old oak interior had potential. We had to take the oak out, which was heartbreaking, but in many ways, it sparked our creative juices for the new design. I wanted to become something great for everybody. So not only are there top quality steaks six different ways to order, but we also have a full menu of everything – from homemade pastas to our own handmade Bell and Evans chicken cutlets. The budget was supposed to be 250K, but if you promise not to tell my wife, we’ve spent over $1 million. For our team, we are blessed to have a young chef, Jesus, and my wife handles the finances. We are surrounded by a number of talented people. As far as the experience, you have to

understand that this is a very different animal than Manhattan. You simply don’t have thousands of people walking down the street. That is balanced by the staggering costs of beef in New York. So our goal is to be able to serve real value consistently. For the bar, Michael Konzelman from Economy really took the time to show us how important the right bar could be. The existing bar was small. His vision helped us create an amazing food bar made from gorgeous rich tree trunks. We’re lucky that there is a local company, Endgrain in Bloomfield, who was able to give us a really special look. Michael also challenged us to create a vision on a modern, functional bar that had the feel of Manhattan. So he took us to a number of locations that had utilized Krowne’s modular design.

continued on page 62

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O’Neill Marketing collaborated with Economy Restaurant Supply to build a 41 foot bar at Prime 94. The bar features Krowne’s much talked about modular bar system, as well as rustic bar stools, tables and seating from New Jersey’s G&A Furniture. A CMA Dish machine suite in the kitchen was specified to support the heavy glassware demands of the bar.

August 2018 • Total Food Service • www.totalfood.com • 61

Prime 94, from page 60 We love how easy it is to clean because all the Krowne design pieces are modular, which keeps refrigeration access underneath easily accessible. For the dining areas, we worked with an architect. We wanted the warmth of reclaimed wood. But there were some initial issues relative to the amount of waste the structure could support. So with the help of another great local company Boards and Beams in Fairfield (who specializes in reclaim board and finishes), we were able to accomplish our design goal. The former kitchen was basically untouched for 15 plus years. We started with new doors and worked our way in. I have known the Konzelmans for 30-plus years and they understand us. Economy had a really good sense of what I wanted. I really like Southbend. I also knew we needed a Southbend flat top so we could consistently serve our great burgers. I’m convinced it’s the best equip-

A Mr. Winter walk-in box anchors Prime 94’s extensive craft beer line-up.

ment on the market for broiling/cooking steak. The choice is a reflection of getting the meat right. It’s amazing to me the difference between choice and prime cuts of beef. We tried five or six different vendors. I’m going to a gem in South Jersey, Vrola Meats. I knew it might cost a little more, but we simply

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had to get this right. I knew as soon as I walked into the space that the dish machine belonged in the right corner of the L-shape. We love the value that CMA’s dish machine provided. I could see the 10-feet we needed for the two compartments to make it work.

We were also able to upgrade the basement to handle our walk-ins. We added a new Mr. Winter Box to give us storage capacity to handle a full menu of beer on tap and repurposed an existing box to age our meats. As far as marketing, it’s so interesting to see how important photos of your dishes are. We have a website and I want pictures of our dishes, not stock ones. I’m driving our web designer crazy because I want everything to be authentic. For our success, I don’t buy the idea that you need to wait a year to figure it out. We will know in 30 days exactly where we are at. We need 350 to 400 plates moving every night! Michael Konzelman’s Approach Joe Meli has been a customer of Economy for a long time. We’ve done countless work for him, maybe five or

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Prime 94, from page 62 six places prior. When I came on, the place already had two other owners and they totally turned the place into something different than the original building, which we worked with, too. It was nice to be able to put it back together. The building needed a lot of love and Joe and his wife gave it back. We chose the bar position first since it was going to be a focal point. We decided to do the bar this big because we wanted to attract a more mature clientele. We didn’t want a sports bar feel that attracts a much younger clientele. It needed to be this mature place where a friend can stop to have a glass of wine and chitchat. We needed to have access to the kitchen given our social menu, too. It’s just really gorgeous. We worked with Joe’s bar manager and got all the stations and stuff perfect. We went with a wood finish on the bar that’s distressed; it needed to be easy to clean. And if it gets a bang or a bump, it’s hard to tell.

For the kitchen, the design started with the dishwasher. Some guys start with different areas, but that’s where I like to start. For the flow, I want to get the soiled dishes to stay by itself. It’s actually in the same location it was originally in the previous kitchen, so that was the best position for us, too. Since it’s a steakhouse, Joe Economy Restaurant specified a bank of Pitco fryers to ensure the quality of Chef Joe Meli’s needed the equipment to do evhandmade bar food menu erything. He seems to love the Southbend oven. We used the 400 Series because it’s like a battleship. vamp it with new fans. Downstairs we You have everything you need with it. have a large Mr. Winter Walk-In Box Joe is happy with all the equipment for the beer. Then we have an older choices we made and where they’re box for meat. We made sure to seal the placed. We also have a substantial floors down there to make it all prebank of fryers in there from Pitco. It’s sentable, too. Our business is not a 9 to support the fresh cut French fries. to 5 job so your life’s down there. We He wants to make all the social menu wanted to make it easy to clean. It’s got items on his own. He makes his own to be that way when someone walks in wings, fries and a full bar menu. there any time. The hood and ventilation were there The furniture is by G&A from New already and we just made sure to reJersey. We went through a catalog with

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Joe and saw things we liked. We picked out the distressed barstools right away. And the community tables are great for the bar. It gives us extra room. Meli also loved this booth banquette from Rollhaus in the corner, which we’re calling “lover’s corner.” We were also able to help Joe select the right tabletop for Prime 94. We brought him to several showrooms so that he could touch and feel. We’ve built a great table top strategy including, high quality steak knives from Walco, Libbey’s World Farmhouse patterned china, gorgeous glassware from Hospitality Design and a full array of Mercer’s Barfly mixology supply line. The building is not a big building in general and it’s narrow. So by opening up and adding all those windows, we feel that it’s larger now. We didn’t have the ability to up and raise the ceilings and give it an open feel.

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NEWS

SUPPLY STORES

Restaurant City Expands to NJ

rad Silverman likes to compare Restaurant City - his family’s brand of restaurant supply stores – to Costco “It’s aspirational, I know”, he says, aware that there’s a big gap between three Restaurant City stores (in CT, RI, and now South Hackensack, NJ) and the Fortune 500 Warehouse Club. Regardless, he refers back to the analogy often, whenever he needs to clarify the type of customer experience that he’s hoping to provide: “Restaurant City is different than other restaurant supply stores. We want to hear an audible ‘wow’ the first time a foodservice person walks into our store. And we do hear it, all the time. We heard it a lot when we opened this [South Hackensack, New Jersey] store in November. I don’t think NJ had ever seen a store like this,” said Silverman. Why the Costco analogy specifically? “Well, we don’t have memberships like Costco does, so that’s one big difference. But everything else… our stores are big, with tons of inventory, well-organized, with clean bright aisles, and most importantly, everything is priced right.” Very few equipment dealers are like this. Most are showrooms with limited inventory, or sales offices with no inventory (where everything is on a computer screen and 2-4 week lead time), or warehouses filled with random used equipment. I go to a lot of other restaurant supply stores. Truthfully, I find most of them depressing. Restaurateurs should enjoy going to their restau-

Restaurant City in South Hackensack has no membership requirements.

Restaurant City offers 40 aisles of equipment and smallwares values.

rant supply store as much as diners like going to their restaurants. I like going to Costco. I think most people do. I want to make sure people feel the same about our stores. A big part of customer experience is great pricing. We are very cognizant of market prices on every item and product line in our inventory. We only bring products into stock when we know we will be the lowest or near the lowest price. We put our resources into our stores and

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our product selection and pricing. So when you walk into our stores, you don’t need to fear overpaying. It takes a few shopping trips to achieve that level of comfort from a customer, but we almost always do. Our salespeople are great – the best - but we don’t let them offer some of the full services that other dealers do: Design work, on-site meetings, consultation, special ordering, etc. Instead, we let our product selection, our pricing, and

our blunt honesty satisfy the middle 90% of the bell curve that just wants good products in stock at good prices, with helpful service and a hassle-free shopping experience. There’s no negotiating over price here. Some customers do enjoy negotiating, but overall we find more people are satisfied by getting the right price at the beginning and not needing to worry about it. “We stock the middle 90% of core products that foodservice operators need, across every conceivable area of foodservice. So when someone needs the other 10% of product - the 33.5” worktable, the designer pasta bowls with the green band, etc. we are happy to let another dealer swoop in for the special order. We don’t like special ordering!” When you walk into Restaurant City, the first thing you notice is the sheer amount of inventory: hundreds of refrigerators; hundreds of fryers; convection ovens, sinks, worktables, wire shelving, plumbing supplies, and aisle after aisle of smallwares. After the initial shock wears off, you start to notice a lot of equipment with signs that say ‘Factory Overstock’ or ‘Factory Scratch-andDent’. “Yes, this is the other core element of our stores. While most dealers are trying to shed overhead, we use it to our advantage. Very few dealers can buy like we do. This [New Jersey] store is 40,000 square feet. Our store in Connecticut is twice the size. Our store in Providence is almost

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NEWS

TRADE SHOWS

World of Latino Unveils September Dates To Maximize NJ Show’s Accessibilty

“W

orld of Latino Cuisine: El Mundo de la Cocina Latina,” is set to return for its fifth annual edition next month. From Wednesday, Sept. 19th through Thursday, Sept. 20th at the Meadowlands Expo Center the show will feature aisles and aisles of products from Latin America and the Caribbean. The trade show provides a dynamic venue where Latino food producers, both domestic and international, exhibit their offerings for the ever-growing Hispanic marketplace. The show features exhibits, educational workshops, culinary demonstrations by International celebrity chefs, and much more. The show is projecting to double its attendance this year with a move of its dates from August to September. “We listened to both our exhibitors and attendees and they were thrilled with the value we were delivering in the Summer but felt we could attract more quality attendees in September as restaurants and foodservice professionals return from their vacations,” noted the show’s General Manager Bill Colon. The annual food and beverage trade event includes the participation of domestic food manufactur-

Foodservice operators can come in, take a look at what’s happening in the Latino marketplace and see what they need to purchase to stay up with – or get into – this fabulous world of flavors,” Colon added. ers, producers, and distributors. Importers from the Caribbean and many Latin American countries also participate as exhibitors, with almost 200 in attendance. Buyers and merchandisers, distributors, small- and mediumsized specialty food stores, regional chains, caterers, restaurants, independents, and bodegas are all expected to attend. Exhibit categories include frozen foods, groceries, organic products, dairy, beverages, and, in addition, non-food products. With more than 2,500 foodservice industry operators expected to attend, sponsors expect the show to be even bigger than last year. Americans spend 4 percent of their disposable incomes eating out in restaurants, and 70% eating at home. “If we just extrapolate that

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for the 4 percent and applied it to the $1.5 trillion, the Latino market just for food and beverage is between $180 and $200 billion,” Colon pointed out. “Even more enticing, the market continues to grow four or 5 percent a year.” “Everybody talks about the challenge of reaching the millennial and what we have uncovered is we have discovered that 25 percent of millennials are Hispanic,” Colon explained. “We have also found that the Hispanic target is very attuned to purchasing products on-line through e-commerce. So our goal is to assist our exhibitors and attendees in making that connection.” “There are more than 5,000 Latino restaurants in the New York metro area and as the community grows and changes, there’s a tremendous

amount of opportunity,” Colon added. “Foodservice operators can come in, take a look at what’s happening in the Latino marketplace and see what they need to purchase to stay up with – or get into – this fabulous world of flavors.” In the United States, the Hispanic market has a purchasing power of $1.3 trillion, according to Colon. “Many industry experts are surprised to hear that tortillas now outsell many traditional American hot dog and hamburger buns.” Among the annual event’s goal is to create comfort for company’s new to the marketplace. “People have to understand that Latinos consume far more than just rice and beans, we eat everything and we want our show to help you get your share of that marketplace,” Colon continued. “Also there is no expensive barrier to entry that requires the expense of bilingual advertising and marketing or labeling.” Highlighting this year’s education line up are a pair of much anticipated seminars. Evelyn Brito is currently the writer and executive producer of Bodega Makeover. On Wed, Sept 19th, she will host Bodega Makeover: A New Opportunity for Bodegueros. On Thursday. Sept

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NEWS

SCHOOL FOODSERVICE

Giusti Led Brigaid Is All Set To Bring CT Recipe For Success To NYC Schools

ollowed by its phenomenal success in the State of Connecticut, Brigaid is now coming to New York City. In this regard, the New York City Public Schools have proudly announced that they are forging a new and historic partnership with the legendary Chef Dan Giusti and his renowned company called Brigaid. This Brigaid of Seasoned Chefs led by Dan will be bringing exciting new recipes for success to these NYC Schools and will transform the way students eat. Moreover, these chefs have already transformed New London Public Schools (NLPS) and have left a mark on the Connecticut’s public schools with their amazing skills and

Brigaid’s Chef Dan Giusti

healthy recipes. “Brigaid’s model is fueled by the belief that students deserve real, wholesome food, cooked with care and passion by chefs whose dedication is all encompassing,” said Chef Dan Giusti, the Founder of Brigaid, while introducing the new company. “Our role goes beyond simply preparing school meals and Brigaid chefs are motivated to develop meaningful relationships with teachers, administrators, and the community to change the way people think about food and the act of eating,” Giusti added. Dan Giusti is a seasoned Chef and former head chef of Noma in Copenhagen. He founded Brigaid in 2016 as a group of chefs rethinking what it

Brigaid’s model is fueled by the belief that students deserve real, wholesome food, cooked with care and passion by chefs whose dedication is all encompassing,” said Chef Dan Giusti.

means to feed people. The group recruits professionally trained chefs to lead school kitchens full-time with the goal of cooking delicious food from scratch. Moreover, the meals prepared by these chefs is high quality and rich in nutritional value but also affordable to meet the strict budgetary requirements set by the National School Lunch Program as well as Brigaid’s own standards of quality. In addition, Brigaid has been already operational since 2016 in six New London Schools. The company is known nationwide for serving scratch-made breakfasts, lunches, and suppers to more than 3,300 students every day. Recently, Brigaid has also partnered with New York City Public Schools to begin service in six schools Brigaid’s new menu is filled with wholesome options in the Bronx and accord-

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ing to Dan, Brigaid aims at expanding to schools nationwide. “Our current free meal reimbursement rate of $3.31 per meal makes the entire endeavor nearly impossible for those without a culinary background,” said Giusti, while talking about the challenges faced by the modern American schools. According to Giusti the American schools currently face several serious challenges, when it comes to feeding students. The first challenge is obviously the taste of food, which typically is not very good. Secondly, another challenge is the training of kitchen staff and their resources, which are not adequate. All these challenges combine to create major problems for the administration to offer quality food to the future generations. Brigaid is set to launch in New York City in September. The firm is currently completing its staffing for its pilot program. That program will begin in six schools in the Bronx.

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FAITHFUL FOOD

WITH FAITH HOPE CONSOLO

Eat the World: NYC Cuisine Scene

of Douglas Elliman’s Retail Group. Ms. Consolo is responsible for the

n Manhattan the focus continues to be everything food! From food halls and marketplaces to fine dining and everything in between. Diners are seeking the new and the interesting and we are seeing new concepts on the horizon from all corners of the world. Here are the ABC’s of some new and delicious forthcoming food! Atomix (Korean) 104 E. 30th Street Ato, stemming from the ancient Korean word for ‘gift,’ is the innovative Korean cuisine that Chef and wife team - Junghyun and Ellia Park, hope to deliver to the world using New York City as their stage. Atomix, a follow-up project to their well-loved firstborn Atoboy, is a place where guests can really dive deep into Chef Junghyun’s cuisine through a multicourse tasting menu featuring modern and traditional techniques that best highlight the new Korean cuisine. Bocce USQ (Italian) 20 Union Square West 212-677-7818 Bocce Union Square is the NYC backyard we never had but always wanted. Located in the heart of Union Square

Faith Hope Consolo is the Chairman

Park, it’s a place for our neighbors to escape, be outside, enjoy ridiculously good Italian food, refreshing drinks, a little sun, a little shade, and some (mostly) friendly competition on the bocce court. Frame (Food Hall) 345 5th Avenue 212-719-0111 Being built directly across from the world-renowned Empire State Building’s main entrance, this Epicurean food hall will be the sixth site for the brand. Launched as an eatery that offers locally sourced high quality ingredients. This billboard locale is set to be a two level

The view from Danny Meyer’s new Manhatta restaurant

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destination, debuting a new candy and confections concept with custom and decadent treats. Frenchette (French) 241 West Broadway 212-334-3883 Riad Nasr and Lee Hanson’s new Tribeca bistro are masters at French cooking having run the kitchens at the two most famous restaurants in Keith McNally’s brasserie empire, Balthazar and Minetta Tavern. Frenchette leans heavily on their training in traditional French cooking and their experience at Balthazar, Minetta Tavern, Pastis and Schiller’s Liquor Bar. The res-

most successful commercial division of New York City’s largest residential real estate brokerage firm. Email her at fconsolo@elliman.com

taurant has a welcoming bar, some booths in front and two dining areas beyond, done in a Parisian-looking blend of Modernism and Art Deco. Friends for decades and now they have their own place and the reviews are fantastic. Field Trip (Afro/Asian) 109 Lenox Avenue Expect a new grain and rice concept from charismatic James Beardnominated chef Joseph “JJ” Johnson who is best known for cooking food of the African diaspora. Johnson most recently served as Executive Chef at The Cecil and its sister restaurant Minton’s and is recognized for having the longest-term residency at Chefs Club, the NoLIta restaurant where chefs from around the world take turns heading up the kitchen. As the co-author of cookbook “Between Harlem and Heaven,” Johnson developed a passion for rice as he traveled the world and studied the African diaspora. The Rising-star chef has branched out to find his own footing in the culinary world and is focused on Field Trip establishing rice as culture; making rice bars the new cool. His vision includes diners enjoying Afro-Asian-

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Faith Hope Consolo, from page 72 American cuisine with a soundtrack of 1990s hip-hop and R&B playing in the background and his signature neon “JJ” letters in the window. Manhatta (French) 28 Liberty Street, 60th Floor 212-230-5788 Danny Meyer (the restaurant magnate behind Union Square Cafe, Shake Shack, among other notable spots) has a new restaurant on the 60th floor of an iconic building in FiDi. Meyer’s latest concept offers sky-high dining with panoramic New York City views and the Frenchinspired menu has plating more casual than composed with a relaxed, neighborhood ambiance. Morton Williams (Food Market) 1251 3rd Avenue

212-935-9551 The two-level destination will join the existing sixteen New York City locations offering organic, all natural, specialty and international foods. Planning to roll out a new, curated concept, the location will carry some unique additions to everything Morton Williams customers already expect. Nightingale (Burger Bar) 89 Greenwich Avenue Restaurateurs behind popular downtown hot spot L.E.S. Kitchen, Burger Inc. in the Gansevoort Market, Breakroom, and Kam Hing Bakery plan to further expand their existing concepts into a trendy neighborhood burger bar with sidewalk café. Reminiscent of the counter-top burger shops, this place is the perfect spot to enjoy a fantastic

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burger with a cocktail. Serving up casual feel good food, made with locally sourced ingredients, their burgers are hand formed with Pat LaFrieda beef, buns from Parisi Bakery and pickles straight from the Pickle Guys themselves. SoFresco (Columbian) 95 Greenwich Avenue 917-272-0300 Expanding from Port Chester, NY, SoFresco will tap into the color and flair of South America creating fresh takes on traditional Colombian fare for its first New York City location. The restaurant will be a destination for South American specialties including house-made empanadas and a traditional refreshing drink made with lulo, an exotic fruit with a citrus flavor.

Torishiki (Yakitori) 292 Elizabeth Street Between Bleecker and E. Houston Streets, the space spans a two-level restaurant totaling 2,400 square feet. Operating as a well-known brand in Japan where the Michelin Star restaurant currently has a oneyear wait list, the owners of Torishiki will be bringing their yakitori ( Japanese-style skewers) concept for the first location in the United States. The authentic concept will feature a traditional bar with hardwoods and slow-burning binchotan (traditional Japanese charcoal) where meats and vegetables will be open-grilled directly from the chef to each customer’s plate. The craft and art form that the Tokyo location is renowned for will be transported to the New York flagship. Happy Dining!

Community Minded • Employee Engaged • Customer Focused

All Roads Lead To Koeppel.

74-15 Northern Blvd. Jackson Heights, New York

57-15 Northern Blvd. Woodside, New York

KoeppelAutoGroup.com

77-15 Northern Blvd. Woodside, New York

42 - 01 Northern Blvd. Long Island City, NY

877-256-2140

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NEWS

LEGISLATION

New Federal Tariffs Could Have Significant Impact on Restaurant Industry

o industry is immune to politics and the restaurant industry is, unfortunately, caught in global economic conflict that could make it even tougher to make ends meet. The political turmoil that has impacted the global free market could spell bad news for restaurants across the country as food prices look poised to see a sharp increase. So as if it wasn’t already hard enough to survive in the land of ever increasing rent and overregulation, it may get even harder mainly due to federal trade tariffs. A quick rundown of what has happened and why this could mean price increases for eateries around the country. Earlier this year, President Trump announced that he would begin imposing tariffs on steel and aluminum that are being imported to the United States as well as certain types of machinery from Canada, Mexico, the European Union and China. In response, these nations announced that they would begin enacting tariffs on goods the US is exporting to these regions. Organizations like the National Association of Manufacturers warn that this escalating trade war will bring significant financial hurdles and mean higher prices for many goods and services. One sector that is expected to be hit the hardest by these tariffs is the American agriculture industry. China represents one of the largest cus-

tomers for America and has already begun taxing the importation of 128 American products into their country. These products include nuts, wine, fresh and dried fruits and pork just to name a few. With these tariffs as high as 25% on some of these products, American farmers are going to see a significant hit to their bottom line. The easiest way for these farm-

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ers to survive is to find ways to make up this lost income at home since exporting will no longer be as lucrative as it once was. This means higher prices for the goods here in the United States. Restaurants and bars will almost certainly see a rise in the cost for their food products. The restaurant industry already survives on super thin profit margins and op-

erations here in New York City are expensive. This rise in costs could spell real trouble for those restaurants who aren’t already taking active steps to mitigate this problem. While there is no magic bullet that will solve all the problems that come with higher food prices there are some things restaurants can do to help save some of those much needed nickels and dimes. • The first is to take a hard look at what you are currently buying and trim the fat. You may need to think long and hard about that extra crate of produce and if there are items that you might be able to get by without. • The second option, which goes hand in hand with the first, is to alter your menu to utilize items more in season. In season fruits and vegetables tend to be cheaper due to their abundance, we encourage eateries to take advantage of that and use these less expensive options when possible. With any restaurant operation it is important to be proactive when faced with the problem. Yes these tariffs may put a strain on your business. Acting quickly and thinking outside the box when it comes to your food ordering and menu planning might just keep you ahead of the curve in this situation. If you have any questions on the tariffs or anything else related to your business, the New York State Restaurant Association is here to help at 800.452.5212.

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NEWS

STATE UPDATE

The Growth Of The Restaurant & Hospitality Industry In New Jersey Article by Peter Romano, NJRHE

ew Jersey has always enjoyed a vibrant and prosperous restaurant and hospitality business with over 27,000 restaurants and quick service options with 18,000 being full service locations as well as 1,130 hotel properties. Restaurants have become the driving force in New Jersey’s economy with more than 330,900 jobs or 8% of the state’s over all employment. That number is expected to grow by 7.3% in the year 2027, adding an additional 24,000+ jobs. Hotels in NJ employ nearly 100,000 staff members today. The restaurant and hotel industry combine to generate $29.1 Billion in overall sales revenue annually. The resurgence of Atlantic City’s Casino industry with two new casinos opening, the growth of the market in cities like Hoboken, Jersey City and Newark along with the $2.5 billion waterfront project in Sayreville will invite more patrons to the hotels and restaurants throughout the state. The Riverton project in Sayreville could be transformational, creating an

For the first time in several years, New Jersey will be hosting its own restaurant & hospitality B2B trade show specifically for this growing sector. entire new community in the borough of 42,000 people. The proposed walkable community includes 1.5 million square feet of retail space, almost 2 million square feet of office/commercial space,

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800,000 square feet of hotel/conference centers, 2,000 residential units and a 400-slip marina with supporting facilities. Beneficiaries of all this growth are the vendors who supply the restau-

rant and hospitality industry in New Jersey, from agricultural producers, food and beverage manufacturers, equipment suppliers, and wholesalers along with a myriad of sectors help drive New Jersey’s thriving food & beverage industry. For the first time in several years, New Jersey will be hosting its own restaurant & hospitality B2B trade show specifically for this growing sector. Suppliers from all over the state will be showcased at the Meadowlands, April 17 & 18, 2019. Sponsors, Nationwide Payments and The Asian American Hotel Owners & Operators Association along with participating organizations like New Jersey Restaurant & Hospitality Association, Total Food Service, Sonu Satellite, Everstep Flooring and City Fire Equipment are just a few of the companies already signed up. You asked, Why a show in New Jersey? Our answer is simple, Why not?? Jerseystrong To learn more about exhibiting or attending the 2019 New Jersey Restaurant & Hospitality Expo, please visit njrhexpo.com or call (646) 942-2042.

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FOOD SAFETY

WITH FRANCINE SHAW & KIMBERLY STUCK

Marijuana Edibles and CrossContamination Risks

Francine L. Shaw is President of Savvy Food Safety, Inc. which offers a robust roster of services, including consulting, food safety education, food safety inspections, crisis management training, writing norovirus policies for employees, writing norovirus clean-up procedures,

s marijuana is being legalized in certain states, people are using it in many forms, including edibles. Unfortunately, food safety isn’t always top-of-mind when preparing edibles, and if proper protocols aren’t followed, consumers can get very ill. Cross-contamination is usually something that most people associate with foods, but it is also a real risk in the cannabis industry. Improper handling of cannabis and other ingredients can make consumers seriously ill, can cost companies millions of dollars in lost product, and can ruin organizations’ reputations. Companies that are involved in the cannabis industry should be aware of potential risks and always follow proper protocols to mitigate the risk of cross contamination. Cross-contamination can happen in a number of ways in cannabis facilities. When growing cannabis, there are often issues involving pests, molds, and bacteria. Arrange regular visits from a pest control agency to manage pests, such as mice and gnats. Mice love cannabis as much as humans do, and if they get into your facility they will not only eat your plants, but will also contaminate product with their urine and feces. Mice are known to

curriculum development, responsible alcohol service training, and more. The Savvy Food Safety team has more than 100 combined years of industry experience in restaurants, casinos, and convenience stores and has helped numerous clients prevent foodborne illnesses. Francine has been featured as a food safety expert in numerous media outlets, including the Dr. Oz Show, the Huffington Post, iHeartRadio, Food Safety News, Food Management Magazine and Food Service Consultants Society International. For more information, visit https://savvyfs.com .net/. Kimberley Stuck, cannabis compliance expert and Founder of Allay Consulting, was the first Marijuana Specialist in the nation. She’s done everything from conducting compli-

frequently carry salmonella bacteria in their digestive tract, so salmonella can be easily spread through contact with rodent waste. This is true with cannabis edibles just as it is with other food products. Mold can be an issue as cannabis grows. Powdery mildew (PM) is non-toxic and doesn’t produce mycotoxins (any toxic substance produced by a fungus), but it’s unsightly and can sometimes negatively affect the yield of the plant. Sometimes PM is tracked in from other

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sources on employees’ clothing. It can also come from contaminated grow houses. The flow of the facility is important to reduce or eliminate PM. Additionally, prevent employees from going into a contaminated room and then going into a noncontaminated room. This is essential to limiting PM/mold exposure. Pesticides are a risk factor in contaminating product. If employees bring in plants that have been treated with pesticides, it can cross-contaminate clean plants.

ance inspections, license sign offs, running pesticide investigations, conducting recalls, conducting shelf stability and CBD source approvals. For more information, visit http://allayconsulting.com/about/

Test plants – and their facilities – to determine whether pesticides were used before bringing treated plants

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NEWS

RESTAURANT TRENDS

Using Ventless Kitchen Equipment to Increase Concession Sales

oncession sales at a movie theater are some of the most profitable dollars coming through the door. With profit margins on ticket sales being razor thin, concession sales are critical to keeping a theater in business. Most theaters offer at least popcorn, candy and soda as part of their concessions sales strategy, but what’s stopping them from offering more? Usually its infrastructure and an inability to build a functional kitchen. Thankfully, ventless kitchen equipment is changing the way Cinemas are able to provide movie fare. Today we highlight the reason for expanding your concession offerings. From increased profits, to happier consumers, expanding your concessions to prepared foods is a no brainer, especially when you realize you can do it all with just one machine! Most theater operators will tell you only about 40% of guests buy something from the concessions stand. Which means only 2 out of every 5 patrons are purchasing something other than a movie ticket. To increase the number of patrons who buy concession foods, you have to consider what facts may have prevented the sale in the first place. Did they already eat? Do they find prices too high for the

type of food their buying? Do they not like popcorn? What if you could answer each of those problems with a single machine solution? Ventless deep fryers allows you to cook and serve delicious fried

food options without any hoods or venting or even the need for additional staff. With a ventless fryer like AutoFry, you can entice people to eat dinner AT the movies instead of before the movies. Additionally, you can of-

THE FUTURE IS VENTLESS NOW SERVING: VENTLESS GRILLS, FRYERS & OVENS

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products.com Motion Technology, Inc. - Your Source For Ventless Kitchen Solutions

AutoFry Mini-C ™ Single Serve Fryer

VentaGrill™ Ventless Griddle From bacon and eggs, to burgers and steaks, VentaGrill is the perfect solution for any business looking to expand their menu with grilled food options. With a built in ventilation and ANSUL® Fire Suppression System, VentaGrill allows for tremendous flexibility. V E N TA G R I L L . C O M

Our single-serve, double basket AutoFry is compact and perfect for businesses with a made-to-order concept. Just like its counterparts, the Mini-C is fully automated and fully enclosed. Equipped with its own ANSUL® fire suppression system, AutoFry is the safest commercial fryer on the market. A U T O F R Y. C O M

MultiChef XL ™ High Speed Oven Our MultiChef XL uses a combination of convection, rapid air impingement, bottom infrared, and precision microwave to reduce cook times by up to 80%. Using MultiChef XL is simple, in just two steps, select one of 80 presets or enter in a manual time, and press start! MultiChef XL will take care of the rest. M U L T I C H E F. C O M

fer high profit items like chicken tenders and french fries, that guests won’t mind spending their money on. With ventless kitchen equipment you’re offering much more than just popcorn! When looking at ventless fryers, the AutoFry brand offers four sizes of fully automated, fully ventless fryers that are completely enclosed. This means the equipment does all the hard work for you without any additional updates to your kitchen space. Simply plug in your fryer and watch it get to work on increasing your concession sales. As a fully automated machine, it doesn’t require additional staffing, or someone to watch over the fry process to ensure proper cooking. AutoFry will shake and dump your food out at the proper intervals to ensure perfectly cooked food every time. As with all ventless machines, AutoFry doesn’t need to be placed under a hood system - saving you thousands on installation costs. And as a completely enclosed unit, AutoFry eliminates contact with scalding hot oil, this means a safe environment for workers! Whatever equipment you go with, you can be sure that the addition of hot prepared foods will be a highly profitable venture. From mozzarella sticks to movie tickets, cinemas really can do it all!

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LIZ ON TABLETOP

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A Fresh Look At Catering Strategies

ith the current healthy economy, catering can be a great way to build cash flow and your brand. It wasn’t that many years ago that catering actually took a break in the summertime. Tradition dictated that events were planned for before Memorial Day and then again after Labor Day. Like so many things in today’s world, catering is now a 52-week

business. It’s not at all unusual to get invited to a Fourth of July or even a New Year’s Eve wedding. So whether you are the food and beverage manager at a Manhattan hotel, or managing a Westchester country club or a Hampton’s hot spot, you need to be on top of your game 24/7. My definition of that is the ability to create signature concepts that reflect both your facility and of course the current season. As we look at the challenges that

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may lie ahead with the tip credit issue, a move into or growth of your catering operation may also offer a solution to keeping those key members of your staff. We have found in working with our BHS/H. Weiss clientele that it is important to understand that expanding your catering operations will change how you need to approach the timing of major capital

continued on page 90

Liz Weiss is the President and coowner of Armonk, NY based H. Weiss Co., a division of BHS Foodservice Solutions. She is known nationally as one of the nation’s foremost authorities on tabletop design. The Michigan State graduate is also actively involved with WPO-Women’s Presidents Organization. Comments may be sent to eweiss@hweiss.net.

August 2018 • Total Food Service • www.totalfood.com • 89

Weiss, from page 88 changes. In addition you will need to reschedule repairs in both your kitchens and your dining areas. Catering also requires a re-evaluation of your inventory of banquet smallwares. We can work with you to build a flexible base of smallware staples including stainless pans with induction warmers and wood risers and stands. We suggest banquet items that are flexible enough to work in all seasons and with all themes. The best materials are simple and elegant, but can change when used with other accessories. Think summer with tropical fruits and flowers, or winter with pine branches. That same approach also works beautifully as you reconfigure your cocktail menu. We suggest infused and old fashion drinks including a signature Manhattan. We are also finding that real daiquiris (not real

We suggest banquet items that are flexible enough to work in all seasons and with all themes. The best materials are simple and elegant, but can change when used with other accessories. sweet) have long lasting popularity. A great mojito with Pepper rum/ habanero mixed with ginger or pineapple that’s spicy and not too sweet is a must. We are also finding Cinnamon/ nutmeg with vodka on many of our client’s menus. From a seasonal standpoint, there are several easy to adapt trends that have emerged this summer on catering menus. We are seeing beer drinks using juices including ginger

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or passion fruit. There is also a move towards wine based drinks that can be categorized as summer sweet but not sangria sweet. They set the right tone when served in a traditional glass. It is always fun working with our catering customers as their culinary teams create new additions to their menus. This summer we are seeing food bites that are taking into account some people’s dietary restric-

tions. This includes Plantain or rice cakes instead of crackers or blinis. The use of skewers eliminates the need for carb bases. Think in terms of sweet and savory “Lollipops.” We also suggest serving those Lollipop sticks in bowls or florist rocks, pebbles or even wet sand so they are easy to grab. We look at summer catering as more rustic. With the elimination of plastic, Bamboo, Wood corals, and twinkle lights are hot. Just keep in mind that bamboo and metal can be tough to clean. So your back of the house team will need to be careful with cleaning not to impair flavor. In many cases an extra rinse will do the trick. Our H. Weiss team is here to help with updating your catering service and share our experiences as you look to keep it fresh for your customers.

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92 • August 2018 • Total Food Service • www.totalfood.com

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SFA Summer Fancy Food Show, from page 10 cate that flavors from Africa are gaining notice, and establishing more of a presence in the mainstream marketplace. Examples included: Ahara Rasa, Niter Kibbeh - Ethiopian Spiced Ghee; International Delicacies, KITCHEN & LOVE, Stir and Go Quick Meals in Moroccan Vegetable Harissa; Ginjan Bros., Ginjan, a traditional West African ginger juice made with ginger, cold-pressed pineapple, lemons, vanilla, anise, and cane sugar; Ayoba-Yo, South African-style biltong, a dried, cured meat that originated in Botswana, South Africa, Zimbabwe, and Namibia. This version uses grass-fed beef that is air dried and seasoned; and Manitou Trading Company, Senegalese Fonio Pilaf, fonio with a Yassa spice blend. Sparkling Beverages According to SFA research, The State of the Specialty Food Industry 2018, beverage categories collectively have grown 18 percent in retail sales between 2015 and 2017 - faster than food categories. Sparkling beverages, particularly, were prevalent at the show and have been gaining prominence as alternatives to soda, mixers for cocktails, as well as cocktail alternatives altogether. Examples included: TÖST, Dry Sparkling Beverage; Jax Coco, Sparkling Coconut Waters; Caskai,Sparkling Cascara Infusion; Kimino Drinks, SparklingYuzu; and O.Vine, Wine-Grape Infused Water Sustainability-Minded Products Producers continue to bring products to market that incorporate principles of sustainability, and environmental and ethical awareness. Examples included: OneForNeptune, White Fish Jerky, sustainably sourced and uses the offcuts from whitefish processing; Ocean Hugger Foods, Ahimi, a tomato-based tuna substitute for sushi created as a response to

using authentic ingredients and flavors. Mansi exhibited Calamansi Juice, made from a small round citrus fruit that’s ubiquitous in the Philippines, and CJC Pit Barbecue is selling its Lechon sauce, a traditional sauce made from pork liver, vinegar, breadcrumbs, and spices.

overfishing for tuna; and Farmtrue, Ghee-Nut Butter, nut spreads that use ghee-clarified butter in place of palm oil, which has been linked with deforestation. The Ongoing Trend Watch is: 2018 SFA Trendspotter panel predictions that are ramping up in packaged foods. • Cannabis cuisine was noted by the Trendspotters as a trend that would emerge in 2018. We are starting to see the beginning in beverages and snacks in the specialty food arena, notably with products like Vera Roasting Wellness Blend CoffVee, which are organic beans infused with CBD sourced from organically grown hemp, in addition to heart-healthy resveratrol. • Collagen-infused foods. Eating for beauty is an emerging trend and collagen is becoming a go-to ingredient in foods and beverages to replace diminishing levels as consumers age. The Cali’Flour wrap mentioned above contains collagen protein, and Vermont Village Organic Beauty Boost Functional Vinegar is a combination of raw and organic apple cider vinegar mixed with cherry juice and lime juice and spiked with collagen. The panel expects to see more collagen snacks and beverages hit the market. • Foods from the Philippines. Another 2018 Trendspotter pick, while more Filipino cuisine is being added to menus in foodservice, we’re also seeing more packaged products

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The following trends emerged at the Summer Fancy Food Show: Single-Serve Condiment Pouches Packaging innovations for on-the-go eating are becoming more prominent. Examples included: La Tourangelle, avocado oil; Epicurean Butter, finishing butter; Spread Delights, hazelnut spread; and Little Bird Kitchen, Fire Syrup, a simple syrup infused with jalapeño

Egg Protein The familiar and humble egg is becoming a hero ingredient, delivering protein without carbs with mainstream appeal. Examples included: Bantam Bagels, Egg Bites, scrambled egg-filled bagel bites in Original, Onion Gruyere, Chipotle, and Veggie flavors; Vital Farms, Pasture-Raised Hard Boiled Eggs, two refrigerated eggs for on-the-go eating; and Eggurt, probiotic yogurt drink made from pasteurized egg whites - a good source of protein that is gluten-, soy-, and dairyfree. Spicy and Infused Maple Syrup Maple syrups infused with spices and teas are starting to pop up. Examples: Black Shank, Spicy Maple Syrup - Wasabi; Runamok Maple, Jasmine Tea-Infused Maple Syrup

August 2018 • Total Food Service • www.totalfood.com • 95

EYE

METRO NEW YORK’S FOODSERVICE EVENT COVERAGE

AHF-NY Summer Cruise 2018

etro New York’s leading Healthcare foodservice executives took to the high seas last month for their annual cruise

around Manhattan on the Spirit Cruise lines. The yearly AHFNY networking cruise brought some 70 plus industry professionals together for a night of revelry. With perfect weather making for smooth seas AHFNY also attended to some serious business. The association used the get together to install its new slate of officers on the top deck. Brookdale University Hospital & Medical Center’s Patrick LaMont was inauguNY Harbor Healthcare System’s Mimi Wang (2nd-R) welrated as the chapter’s

new president elect. The group also welcomed a pair of new board members as Tatanisha Peets of Memorial Sloan Kettering and NY Presbyterian/Cornell’s Michael Williams. AHF - New York’s goal is to play a key role on the journey to health and wellness. As healthcare foodservice self-operators, the group understands the important alignment between nutrition and healing. The chapter’s mission is to de-

velop leaders and raise the bar for foodservice in New York’s self-operated facilities, whether acute or long-term care. Its members are directors, managers, dietitians and chefs. AHF-NY provides professional growth through focused education - the programming that drives productivity, innovation and patient satisfaction from within all facets of the foodservice department, from patient meals to staff dining to retail concepts.

comed a large party of guests

(L to R)) Memorial Sloan Kettering’s Tatanisha Peets and Veronica McClymont flank current AHF-NY president Andria Coleman

AHF-NY cruise guests included M. Tucker’s Marc Fuchs (1st –L), Fresh and Tasty’s Peter Fernandez (3rd-L) and Michael Posternak (2nd-R)

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A top deck ceremony installing Patrick LaMont and a new slate of officers were among the highlights of the yearly event

(L to R) Imperial Dade’s Dan Plaut and incoming AHF president Partrick LaMont of Brookdale Medical.

August 2018 • Total Food Service • www.totalfood.com • 97

HUB, from page 38 an event. As many recent events have shown, this publicity can exacerbate an issue and cause real problems for restaurant owners as the public turns its back on a company and chooses not to buy their products. Restaurant contamination insurance protects restaurants from the financial consequences of a food-borne illness, providing coverage for a range of related costs such as loss of revenue and cleanup costs following an outbreak. And, because it’s not just lost revenue from reduced customers at stake, a comprehensive policy also works hard to help protect and restore a restaurant’s reputation. Once triggered, a restaurant contamination insurance policy will provide coverage for the following losses: • • • • • • • • •

Pre-Incident Expenses Business Interruption Employee Expense Extortion Cost Brand Rehabilitation Recall Costs Consultant Costs Disease Outbreak Clean-Up Costs Lost Royalty Income

The cost of proper insurance coverage is insignificant in comparison to the coverage and protection your restaurant will receive in the event of a publicized food-borne illness incident. Restaurant contamination insurance offers a broad array of options and it can prove to be a perfect supplement for preparation and foresight in confronting a crisis. You should consult with your insurance advisor to make sure you’re properly covered and have the right crisis management plan in place. For more information on HUB, please visit www.hubinternational. com.

Latino Show, from page 68 20th, the Professors at the Rutgers Food Innovation Center will present Food Safety Certificate Class for Food Handlers. The interactive session will allow time for instructors to answer questions from the audience, and encourage audience participation for exchange of “best practices” advice on successful implementation of these programs in a food-processing environment. Once again, the show will bring some of the biggest culinary stars to Metro New York. Award winning and best selling author Amalai MorenoDamgaard, will take center stage with a series of culinary demos at the show. The Guatemala native is a legendary figure in creating understanding and appreciation of Latin cuisine. Noted chef Ricardo Cardona is also once again slated to bring his visionary insight to this year’s World of Latino. Last year’s show also focused on Cuban cuisine. “We sense an ongoing fascination the potential of Cuba,” Colon noted. So this year we’re bringing one of them back Luis Battle who was very popular with our guests. Colon and his team have focused on defining the opportunity in the marketplace for major companies including Goya. “The Specialty Food Association completed an interesting study earlier this year. They found their primary specialty food market to be generating some $120 billion per year. To give you perspective, the Latino market for food & beverages expenditures is now projected at $180 to $200 billion,” Colon explained. “There’s huge opportunity here,” concluded Colon. “It’s a huge celebration that focuses on both fun and education.” For more information on The World of Latino Cuisine Food Show, please visit www.latinofoodshow. com.

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Cannabis Edibles, from page 80 into your clean facility. Outdoor grows also run the risk of “drifting pesticides”. Know what neighboring crops are being sprayed with, and when they’re being sprayed. This can help prevent cross-contamination with your clean crops. Contamination often takes place in processing/ manufacturing facilities. Contaminates can include pesticides, heavy metals, and toxins (such as arsenic), found in the oil used in the production of edibles. This kind of contamination is most frequently seen in terpenes, essential oils, and sometimes CBD oil. It’s essential to conduct proper testing, evaluating all ingredients used in production. All manufacturing facilities must be aware of the sources and suppliers for the ingredients used in production, and take steps to mitigate these issues. As with processing of the food we consume daily, tracking the supply chain for cannabis is extremely important. Do not allow employees to work when they’re ill, as illnesses can contaminate product, equipment and facilities. Implementing an employee illness policy is the best way to prevent illness from contaminating your manufacturing facility. Insist that employees utilize singleuse gloves. Preventing bare hand contact of the product is also a great way to prevent contamination. Human hands can be the dirtiest things in your facility, so have proper hand washing procedures and proper PPE plans in place, and ensure that all employees comply with these protocols. Since there are no personal hygiene/health regulations in place for the cannabis industry at this time, we would suggest following those recommended by the current Food and Drug Administration (FDA) Food Code. Setting up proper sanitization is a must to prevent bacterial growth and cross-contamination. As in food preparation facilities, it’s es-

sential to have proper handwashing stations in cannabis facilities. Have hot water, soap, single-use paper towels, and a trash at each hand sink. This promotes proper hygiene and assists with bacterial and mold spore elimination during hand washes. Additionally, implement room sanitization after harvest, with mats in the entrance of rooms, and easily accessible sanitizer for tables and equipment. Facilities should have designated areas for chemical storage. Improperly stored chemicals could possibly end up in the product, causing illness and even death in consumers. Train all employees to follow safe chemical storage protocols. As with other types of cannabis facilities, dispensaries also deal with contamination. Often, dispensaries don’t properly clean bud jars between harvests. If a bud harvest is stored in a jar that has bacteria or mold contamination, and the jar isn’t cleaned/sanitized before the next clean bud is stocked, it can contaminate that next clean harvest, and the next, and the next. Having a proper cleaning and sanitation procedure can help prevent this form of cross-contamination. Don’t allow consumers or employees to touch cannabis items with their bare hands before purchasing or consuming product. This can easily cause the spread of bacteria to the product. Proper protocols can save a business from recalls, consumer illnesses, and ruined reputations, ultimately leading to major profit losses and even the dissolution of the business. The cannabis edibles business is not all that different from the food service industry. Consumers have the right to assume that the products they are purchasing are safe. It’s the manufacturer’s responsibility to do whatever it takes to ensure that it is.

Sederholt, from page 20 legendary Spark’s nearly did the same and they are doing over $18MM per year! They approached their sales projections with rose-colored glasses for sure. I’m certain they didn’t run “Best Case - Worst Case and Most Likely” projections and determine if they could survive the “Worst Case” scenario. Most starry-eyed owners don’t do this. Every new owner should do this before they consider putting the key in the door. I’m sure these guys projected some big numbers while they were falling in love with their new restaurant. In reality they were nowhere near the $4.1MM needed to be viable. Unable to see this, they invested everything they had, tapped friends and family, brought in some outside money and continued falling behind in rent and taxes. The downward spiral escalated. Despite the brutal truth, they decided to stay the course. They believe in their restaurant, their abilities and that everything will work out. Every time they book a big party they try to convince themselves that they are coming out of the woods. HUGE BLIND SPOT!! Reality Check: Early in the first year they needed to pick their heads up from the daily tasks and objectively SEE the deficiencies in their business. Instead they continued to drive the same flawed business model while it was driving them over a cliff. They have lost hundreds of thousands of dollars are in debt and now may lose their beloved restaurant. Ignore the signs at your own peril: Many restaurant owners are great at making excuses for low sales or constant losses. “Naw, my kid’s not on drugs – he’s just tired all the time and going through a phase…” Yea, right. “Nope, that stabbing pain in my chest is just heartburn.” Wake up and smell the coffee!! Face the brutal truth negative cash flow, insufficient sales and growing debt topped with tax delinquencies, pissed off landlords and vendors are all reason for a 911 call.

The next blind spot appears when owners try putting a band-aid on a sucking chest wound! A little bit of cash may stop bill collectors from calling for a while but the real problem is not fixed. Many distressed owners seek loans from family and friends (really stupid) or financing like merchant cash advances, which get misused and abused. This accessible yet costly financing is good for growth - not for covering a black hole of debt. Don’t use this money to put your bad busi-

ness on life support while you deny there is a problem. This debt, like any formal debt comes with the responsibility to repay and most of the alternative lenders will come after you personally if you don’t. I gave it straight to my friends at the steakhouse. For now they are sticking it out and seeking a new equity investor, as they can’t obtain loans with their current financial statements. If they can attract a real equity partner it will cost them dear-

ly as equity is always more costly than debt and they are not negotiating from a position of strength. I will report back and let you know how they made out. My advice – look for the blind spots and watch your numbers obsessively and listen objectively to what they are telling you. You will sleep better at night. If you want to discuss your business questions, you can email me at dsederholt@sfscapital.com

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MDR at Yale, from page 24 many points of view, the Mediterranean Diet lies at the heart of their societies. “We need to preserve our cultural heritage. The Mediterranean Diet is representative of who we are in the world and inside of our country,” explained Italian Ambassador Inigo Lambertini. “It is so important to coordinate the commercial and the legislative ends of our work. They are interlaced, and one cannot ignore the other.” The second day was rich in trade and marketing insights. A solid panel, moderated by Ken Toong, Director of programs at the University of Massachusetts, a leading food service program in the country, illustrated how the Mediterranean cuisine offers health and authenticity, and brings great opportunity to food service operators. Huge industry icons such as Sodexo, Compass and U-Mass presented how their companies are being inspired in practical ways by the Mediterranean Diet to offer healthy, sustainable and delicious food to their respective audiences. An important insight was provided by Bob Bauer, president of the American Food industry. He explained the recent Food Safety Modernization Act, one of the biggest changes to U.S. food law in more than 70 years, which has been impacting every sector of the food industry. To understand trends, June Jo Lee gave an inspiring presentation about generational consumer behavior, with particular emphasis on future generation of eaters, their desires and aspirations, and how they want to participate in their food futures and cultures. After a brief presentation provided by Dr. Dina Rose, about engaging children in learning healthy eating habits, the event concluded with a prospective about the future of the MDR, which has been envisioned as a valuable trade portal in collaboration with the World Trade Center, presented by Jim Krzywicki. As an integral part of the MDR, there were different tasting sessions.

Guest are gathering for the first Mediterranean Gala, at the newly restored Old Refectory at the Yale Divinity School. A rich journey through different cuisines with elegant chefstations

Chef Chris Kube led the first Flavor Exploration about the Mediterranean herbs and spices, followed by Larissa Irachetta, Director of Quality at Deoleo, in collaboration with the North American Olive Oil Association. Larissa, an award winning olive oil sommelier, guided the audience to discover the different qualities and nuances of precious olive oils, a cardinal ingredient in the Mediterranean cuisine. The entire experience was informative and educational, but also a full immersion into the lifestyle of the Mediterranean concept. Yale Hospitality lived up to its tremendous reputation and displayed well its legendary capability of creating amazing culinary experiences, thanks to a collaborative team effort led by Rafi Taherian and Adam Millman. From the choice of the finest ingredients, the elegant menu choices, the exquisite décor, to the setting of Murray College, every aspect coalesced beautifully to create a truly memorable experience. The event has been made possible also thanks to the generous support of Bertolli Olive Oil, Barilla, Grana Padano, Agrino, PFG Springfield, Bonolio, Victory Garden, and Mediterranean Pita. To learn more about the MDR concept and learn about upcoming meetings, please visit www. MDRproject.com

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Rosenbloom, from page 54 invest. The type of entity you have to run the restaurant (e.g., a limited liability company or corporation) will dictate the documents needed for preferred and common equity investments (for the former, an operating agreement; for the latter a stockholders’ agreement). What to Keep in Mind Taking money from third parties can be stressful (as if starting a

restaurant wasn’t stressful enough)! Here are some general tips to keep in mind: Make sure you are comfortable getting in bed with the investor. When you take someone’s money, you become the steward of that investment. It is very important that you know or at least spend some time getting comfortable with the investor. It can make the good times better and the inevitable hard times

easier. Is the money really there? I’ve dealt with situations where a restaurant owner was told “oh yeah, I’m raising the money from some of my best buddies.” They made plans (entered into a lease, purchased inventory, etc.), and negotiated legal documents, only to have the money not be there at closing. If you are unsure, ask (respectfully) for confirmation that the money will be there for you.

Under promise/over deliver. No one wants to get sued by an investor, so it is critical to maintain good relations with investors from the start. The key is “under promise and over deliver” – be realistic with investors before they invest about the challenges the business will face and what might prevent investment returns (the best practice is to give investors some sort of disclosure document describing the benefits and risks of the venture). Then, after you raise the money, run the business so as to exceed the expectations you set. Extraordinary rights buried in the agreement. Investors will often want their own lawyers to draft the key agreements, which can be long and confusing for the non-lawyer to read. Important investor rights can be buried deep within a 40 page document. Of course, you should have your own lawyer review the documents, but also make sure you read and understand what you are getting into, and don’t be afraid to ask questions. Conclusion Raising money from any kind of investor is a critical, but uncertain and even stressful, endeavor. Although the nuances may be difficult, these things will always keep you in good stead (they are the same things that go into a good restaurant) – use common sense, be honest, don’t be afraid to ask questions or get advice, and don’t be afraid to advocate for what you think is right and fair (for yourself, the restaurant and the investor).

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Sales Tax, from page 18 the chances of catching up diminish quickly and the business is headed off a cliff. Remember merchants are personally liable for unpaid sales tax and in many cases such as this, merchants end up needing professional legal help to avoid a bad ending. Tax auditors and tax collection agents have a job to do, and they mean business. They must be dealt with squarely and promptly or matters may likely spiral out of control. It’s much better, and cheaper, to operate the business properly and minimize the risk of audit by filing and paying correctly and on time. Face it, nobody opens a business to be a tax collector for the State. But when a business is created, it’s assigned a tax ID number, issued a sales tax license, and the owner/operators are conscripted by the State to charge, collect, and remit tax. Entrepreneurs open businesses to follow a passion, be successful, and earn a living, not collect and disburse taxes, but that is precisely what the law requires. The financial and legal costs of mismanaging sales tax are high and potentially fatal to a business (as well as its owners and operators personally) if left unchecked. Merchants work hard for every penny of profit and wasting profits on penalties for mismanaging sales tax is foolish. If cash management and fiscal discipline are not the business owner’s strength, they should outsource sales tax management to a third party and have a professional manage it for them, same with payroll. There are several options for managing sales tax including bookkeepers, accountants, and tax filing services, but unfortunately these options rarely solve the problem of making sure sales tax is not used as working capital. DAVO Technologies has pioneered the process of daily fractional funding and developed an application that solves the problems associated with the mismanagement of sales tax.

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The DAVO Sales Tax app automatically sets sales tax aside daily as it’s collected and files and pays it when due, on-time, and in-full. DAVO enables business owners to forget about sales tax and do what they do best, follow their passion, engage with their customers and run a successful thriving business. If you are reviewing your company’s sales tax practices and want to consider whether DAVO may be the right fit for you, you can email David at david@davotechnologies.com . If you are already facing a tax audit or dispute, you can email Lance at lrothenberg@litaxattorney.com. Disclaimer: The information contained in this article does not constitute tax advice and is for informational purposes only. David Joseph is the chairman/cofounder of DAVO Technologies, based

in Portland, ME. David spent almost 20 years in the restaurant business and has a deep understanding of the challenges faced by business owners. He and his partner started DAVO with the goal of automating sales tax compliance, making it seamless and automatic. DAVO has developed a suite of finance apps that use daily fractional funding to help merchants grow and succeed through better cash management. Lance E. Rothenberg is a tax attorney and is Of Counsel with Tenenbaum Law P.C., which is based in Melville, N.Y. Lance focuses on state and federal tax controversies and disputes, and he has experience assisting a wide range of businesses and business owners facing federal, state, local, and multistate tax issues, including salesand-use taxes, corporate income taxes, personal income taxes, and excise taxes. You can reach him at lrothenberg@ litaxattorney.com.

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and interest rates for missed or late payments. Sales tax payments are due on specific days and times which vary state by state and there’s no grace period like a mortgage or credit card bill. When the state says the 20th of the month by 5pm they mean it. One minute late results in the assessment of penalties and interest which can run as high as 25%. What merchants fail to understand is the interest rate is actually much higher than 20 or 25%. Let’s use the example above with $4000 of sales tax, borrowing $2000 for 30 days and missing the next month’s sales tax payment. Let’s say the business is located in California where the penalties are 10% for late filing and 10% for late payment. The total penalty would be 20% of $4000 making the total amount of sales tax plus penalties $4800. The merchant only borrowed $2000, but the penalties were accessed on the total amount of sales tax due, $4000. That short term $2000 loan cost the merchant $800 of penalties or 40% interest for about 30 days!!! Good deal? Not really considering the average interest on an unsecured credit card or line of credit is about 16%. Unfortunately in many cases like this, the saga doesn’t end here. Instead this is the beginning of a very long uphill battle for the business to get back on track. Quite often a missed sales tax payment gets forgotten because it’s out of sight out of mind and the next month rolls around and another $4000 of sales tax is due making the two month total $8800. The merchant’s behavior doesn’t change and sales tax continues to be used as working capital and the next payment is missed and the total of sales tax, penalties and interest due goes north of $9600. It’s easy to see where this is going because the business is only grossing about $50,000/ month and now 20% of their sales will go to paying back sales tax owed. Unless the business has revenue increasing exponentially, month over month

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Bobrow, from page 16 • • •

1 oz. Fruitations Soda and Cocktail Syrup (Tangerine) Splash Ginger Beer Lemon Bitters

Preparation: 1. Moisten the inside of a rocks glass with the orange zest 2. Add ice 3. Let cool 4. In a Boston Shaker add the Fruitations Syrup and The Mezcal 5. Cap and Shake hard to combine 6. Double Strain over the ice filled rocks glass 7. Splash of Ginger Beer (preferably a Cane sugar one) 8. Dot with Lemon Bitters 9. Spray the lime wedge over the top 10. Serve with a smile The next drink was my own take on the classic Old Fashioned, and it departs from the classic in one very determined way. I chose to roast several different kinds of oranges in a bath of both Balsamic vinegar and Demerara sugar until caramelized and bubby- about 2.5 hours at 350 degrees covered. The final ½ hour is uncovered to add a bit of darkness to the softly cooked fruits. I then roasted some Luxardo cherries until warmed through and quite softabout 30 minutes at 350 degrees. Set to cool so you won’t break your expensive crystal with sizzling hot fruit, pricy bourbon whiskey and hand cut ice! Not your typical Old Fashioned Ingredients: • 2 tablespoons or so of the oven roasted citrus and ‘fancy’ cherries • 2 oz. Barrell Bourbon Whiskey • Aromatic bitters of your choice

Restaurant City, from pg 66 Preparation: 1. Muddle the roasted fruit 2. Add the whiskey 3. Stir gently 4. Dot with aromatic bitters 5. Serve The final drink was the easiest to duplicate because once you are able to buy a good quality Absinthe, you’ll be more than ½ way there. Any of the fine Absinthes made by Jade would work beautifully, as would the Lucid line. There is one thing that I must stress. The lack of color in Absinthe is far preferable to the ones with color added. It’s just my preference. Just a Normal Louche Ingredients: • Jade Absinthe • Drizzle of iced water • Heaps of Great Conversation Preparation: 1. Release the chilled water from your Absinthe fountain slowly and gently into 2 oz. of Absinthe, sip and repeat until sated.. Major important issue. While dining at Couchon Butcher the other night during Tales of the Cocktail, I found myself chatting with the affable bartender. We got started talking about ice and the pebble ice he was working with. The famed Lewis Bag came up in the conversation and how... in the humid environment of New Orleans, the inside of the canvas bag, if not dried well- will turn to black from mold that lives in canvas. A most disgusting thing ever is finding a speck of black mold in your expensive and fancy cocktail. Make sure you wash and dry your Lewis bag carefully! No mold in your drink! It’s really unsafe and just gross!

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as large too. We brought in a load of overstock refrigerators last month that would have, by itself, filled most dealers’ entire showrooms.” When it comes to these specials, Restaurant City salespeople have their sales pitch down to a science: if it has a factory special sign on it, they will tell you to google the model # to find the “normal” price. Imagine you google a specific model of a two-door refrigerator, and you find twenty online dealers with approximately the same price. Then you look down at the Factory Overstock sign and see Restaurant City selling it for $650 less. That’s a happy shopping experience. This is a daily occurrence at Restaurant City, according to Silverman, and nothing makes him and his staff happier than saving a customer a lot of money like that. “We are competitive [price-wise] on everything, but when we save a customer $500+ on the exact unit they needed, it also buys us a lot of goodwill with that customer. We’re confident we’ll be their first call next time they need anything.” Asking him for his final thoughts on his stores, the industry, and the greater New York City area, Silverman pauses for a few seconds, trying to tie some loose threads together: “I love our concept, I’ve made that clear. I think we just have a lot of confidence in these stores to work anywhere. New Jersey is a tough market for dealers! That won’t surprise any of your readers, I’m sure. But it’s also a market where foodservice means a lot, and people are passionate about it, and we’re so happy to be here. We love it here.” New Jerseyans, likewise, are happy that Restaurant City found a home in South Hackensack. To learn more, visit their website at www.restaurantcity.com.

Inspiration. Creativity. Passion. Your fascination with food. Your creativity. Your love of people. Your talent for nourishing their bodies and their souls. Imagine 3 days in the heart of Los Angeles — the world’s most entertaining city — where you can focus on all the magic and mystery that attracted you to food in the first place. Give yourself the gift of learning! Spark your creative appetite and turn your passion for the industry into a sustainable business. The Western Foodservice & Hospitality Expo August 19-21, 2018 at the Los Angeles Convention Center

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