WA S H I N GTO N
RESTAURANT
Winter Edition 2011
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I-1183 passes! Now what?
ServSafe Alcohol changes the game Minimum wage going up, again Menu pricing from the ground up
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Inside
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Features
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I-1183 passes! Now what? I-1183 made history: You’ve heard by now that Washington voters opted to privatize the state’s liquor sales. Has this got you wondering what it means for your operation? We’ve got answers.
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Minimum wage going up, again How did we get here, and will it ever end? Learn more about the history of minimum wage in Washington state and how it’s impacting restaurateurs.
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Menu pricing from the ground up Are your menu prices just good guesses? Pricing your menu is arguably the most important financial decision for your business. Make sure your calculations aren’t hurting your profitability.
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The ideal menu? While menus aren’t one-size-fits-all, applying some basic principles to menu design can prime your guests for an optimal dining experience, while helping you maximize profits.
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ServSafe Alcohol changes the game Even the most conscientious restaurateur needs the support of dependable safety training resources for his business. That’s what ServSafe Alcohol provides. Learn why WRA Education Foundation Director Lyle Hildahl feels so strongly about it.
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This article is worth sharing with your managers, chefs, bartenders or other restaurant staff.
Other stories
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WA S H I N GTO N
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I-1183 passes!
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ServSafe Alcohol changes the game
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Minimum wage going up, again Menu pricing from the ground up
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News Briefs
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Buck up and face the prices
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Implementing top trends from the NRA’s Chef’s Survey
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Is your menu legally sound?
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2012’s Top 12 tips for making your bar operation more profitable
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New federal menu labeling rules for chain restaurants on the way
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Calendar/New Members
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Marketplace
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Ask the Expert: Increase sales by ensuring quality
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On the cover
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Balancing restaurant menus with the bottom line
November/December 2011
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Constructing a menu is multi-faceted process. This issue is your guide to bringing all of the pieces together for effective menu presentation. Winter Edition 2011 | 5
EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor Shawn Sullivan, Contributing Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Bret Stewart, Chair Center Twist Jim Rowe, Vice Chair Consolidated Restaurants Robert Bonina, Secretary/Treasurer Washington Athletic Club Steve Simmons, Past Chair S & S Hospitality, Inc. Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina VP Internal Operations Bob Decker Director of Membership Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.WRAhome.com
Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification. Reproduction of articles appearing in Washington Restaurant Magazine are authorized for personal use only, with credit given to Washington Restaurant Magazine and/or the Washington Restaurant Association. Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, its Board of Directors, staff or members. Products and services advertised in Washington Restaurant Magazine are not necessarily endorsed by the WRA, and do not necessarily reflect the opinions of the WRA, its Board of Directors, staff or members. ADVERTISING INQUIRIES MAY BE DIRECTED TO: The Silver Agency 109 North Tower, Ste. 200, Centralia, WA 98531 T 360.736.8065 F 360.330.7960 www.silveragency.com Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@WRAhome.com, phone: 800.225.7166. Readership: 6,310.
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Balancing restaurant menus with the bottom line By Lex Nepomuceno, Executive Editor Creating “The Perfect Menu” amid rising food prices is becoming a greater challenge for Washington restaurateurs. In order to be competitive, establishments need to make sure that their offerings continue to attract customers while being sensitive to price-conscious consumers. So, what are restaurant owners to do? This issue of Washington Restaurant Magazine attempts to tackle the “menu conundrums” facing restaurant operators every day. WRA President Anthony Anton’s column “Buck up and face the prices” (page 9) examines rising costs and how restaurateurs can deal with the issue. The article describes how the restaurants of today have advantages over the restaurant of the past, from new resources to technologies and other efficiencies. The Consulting Network’s Rick Braa, dives deeper into pricing with his article “Menu pricing from ground up” (page 15). “Pricing your menu is the most important financial decision you can make,” writes Braa, who then guides readers step-by-step on how best to price menu items and other factors to consider. One of the ways to attract consumers is offering nutritional options. Contributing writer Melissa Marek, R.D., provides a number of great tips for restaurants wanting to entice health-conscious consumers in the article “Implementing top trends from the NRA’s Chef’s Survey” (page 14). Marek writes about adding gluten-free options, food allergy-compatible choices, healthy kid’s items and how restaurants can get nutritional analysis assistance for their menus. Managing Editor Heather Donahoe takes an in-depth look into the intricate elements that go into the actual menu design. In “The ideal restaurant menu deconstructed” (page 16), Donahoe writes about the words to use in menus, branding, eye patterns and other placement considerations. Restaurant operators looking into redesigning their menus should definitely check this article out! Prudent owners and managers understand that the devil is in the details, even when it comes to menus. There are two fantastic articles that examine the less glamorous side of menu design and creation. “Is your menu legally sound” by Ryan McFarland helps business owners understand the basic menu health warning requirements in Washington state. Finally, Shawn Sullivan’s article “New federal menu labeling rules for chain restaurants on the way” alerts WRA members about the impending LEAN Act, which is a byproduct of the Obama health care reform laws passed in 2010. Of course, there are many other great articles in this edition of Washington Restaurant Magazine. From the passage of the liquor privatization ballot measure 1183, to the escalating minimum wage, this “MegaTrends” issue is jam-packed with helpful information. We always encourage member feedback, so please email me at lex@wrahome.com if you have any comments or suggestions.
Primary Source of Information | News Briefs WRA prepares for special legislative session Gov. Chris Gregoire announced that the state Legislature will convene a 30-day special session beginning Nov. 28 to address what is projected to be at least a $2 billion shortfall in the state budget. The WRA government affairs team will be active during this special session, as new revenues--taxes, fees, etc.--will be the centerpiece of discussion. Liquor Control Board unanimously approves entertainers drinking The Liquor Control Board unanimously approved a proposal that amends WAC 314-11-015, and will allow entertainers to consume alcohol while performing. The new rule will go into effect as early as Nov. 26. This issue was brought to the Liquor Control Board in August, after a WRA member was cited when a comedian was drinking alcohol while performing at the member’s establishment. The new modification to the law will save other licensees from potential citations and fines in the future. For more information, check out http://wra.cc/lcb2011a, or email the WRA’s Julia Clark at julia@wrahome.com. WRA wins top international award and two other honors The Washington Restaurant Association has received the highest recognition from the Association of Marketing and Communication Professionals by receiving the MarCom Platinum Award for Best Mobile App. WRA also received a MarCom Gold Award for its magazine article “Restaurants and the Liquor Control Board” written in Spring 2011. Moreover, WRA was recognized “For Outstanding Achievement in Web Development” by the Web Marketing Association’s WebAward for its redesigned website. The MarCom Awards is one of the oldest, largest, and most respected competitions in the creative industry with more than more than 6,000 entries submitted worldwide. For more information, go to http://wra.cc/2011marcom. Former WRA Board Chair Al Aronica passes Restaurateur and former WRA Board Chair Al Aronica passed away on Oct. 31, 2011. In 1956, he graduated with a degree in Hospitality Business Management from Washington State University. He was a longtime president of the Snohomish Restaurant Association, served as chair of the Washington Restaurant Association board from 1984-85 and received Hospitality Man of the Year. For the full obituary, go to http://wra.cc/alaronica.
Spokane Cork & Keg Festival a big success The 18th annual Spokane Cork & Keg Festival, a production of the Spokane chapter, had a successful run on Nov. 12 at the Mirabeau Park Hotel. Four-hundred representatives from restaurants and retail liquor outlets enjoyed the private afternoon tasting wine and food for $10 a ticket. Nearly 500 people paid $45 to attend the public tasting in the evening. The outstanding food was provided by several WRA allied members, and was prepared by Chef Curtis Smith and his students at the Inland Northwest Culinary Academy. More than 50 WRA members volunteered their time to help the event come off without a hitch. The leadership of the Spokane chapter is grateful for all the members who came together to make this their best year ever! WRA welcomes Claudia Lett and Ken Wells This fall, the WRA welcomed two new members to the team. Claudia Lett was hired as the Seattle-Metro area coordinator and brings more than 20 years of experience in out-side sales and business development, including networking, marketing and customer service. Some WRA members may remember Claudia from her time at the WRA in the same role from 1999 to 2006. Ken Wells, a 30-year veteran of the restaurant industry, was hired as the WRA’s allied relations manager, a new position that involves maintaining and building relationships with WRA’s allied community. The WRA is excited to welcome Claudia and Ken to the team. They can be reached at claudia@wrahome.com and ken.wells@wrahome.com.
Winter Edition 2011 | 7
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Winter Edition Chef’s Club (cont. on page 26) Green Air Supply Free draft beer system survey. Analyze system and recommend corrections, and/or free installation of nitrogen generator and/or 1 month noobligation trial. Tom Hoare 216 Puyallup Ave #111 Tacoma, WA 98421-1114 (253) 226-1596 tom.h@greenairsupply.com
Law Office of Forrest Carlson Free 45-minute initial consultation on new matters. 10% discount on hourly rate for legal services. Forrest Carlson 100 S King St Ste 400 Seattle, WA 98104-2817 (206) 631-9575 forrest@forrestcarlson.com Masters of Money $100 off per ATM. Jesse Stiltner 13215 SE Mill Plain Ste C8-211 Vancouver, WA 98684-6999 (360) 635-4457 jesse@atmguy.net
MICROS Systems, Inc. 10% discount above and beyond promotional pricing. Dan Jacobs 415 S Brandon St Seattle, WA 98108-2237 (206) 763-1010 djacobs@micros.com
Ms J’s Environmental Services Inc. Initial cleaning free with free estimates. Jerita Young 7015 95th Ave SW Lakewood, WA 98498-4056 (253) 973-8831 msjyou@msn.com Olympic Restaurant Equipment Eric Schwartz PO Box 3461 Sequim, WA 98382-5030 (360) 582-1050 sales@olympicrestaurantequipment.com
One Smart Cookie Marketing First 30-minute consultation/strategy session is free Karen Rosenzweig 215 2nd Ave N Edmonds, WA 98020-3103 (206) 419-8407 karen@onesmartcookiemarketing. com Plese Printing & Marketing 10% discount on all in-house printing and services that we offer. Kim Plese 4201 E Trent Ave Spokane, WA 99202-4430 (509) 534-2355 kim@pleseprint.com Protection One Security 15% discount on Alarm installation when implementing any two programs at the same time Joe Woodruff 7617 W 180th St Kent, WA 98032-1048 (425) 656-7118 claytonwoodruff@protectionone.com
Industry Outlook | WRA President & CEO
Buck up and face the prices Anthony Anton, president and CEO
One of my favorite quotes is an old Groucho Marx quip from an short black and white clip where he is opening a small businesses. When one of his brothers asks about profit, Groucho replies, “Well, I am losing money on every sale, but I am going to make it up on volume.” Like most of my favorite comedic quotes, they’re so memorable because they’re true. I hear many members say that with the food price spikes this year, they are losing money each day, but can’t raise prices in this economy. With a 40-cent minimum wage increase looming January 1, food prices likely continuing to rise and our already tight margins, applying Groucho Marx’s business theory to your operation will only be a recipe for disaster. I get that pricing decisions are not easy, and I get that making these decisions is one of the most likely causes of ulcers; but look hard at the chart of wholesale food prices to the right; these are not figures that can be wished away.
that the jump you need to take later may be a fatal shock to price sensitive customers. You have an advantage today over restaurants of a decade ago. Your menus and menu prices can be more timely and more flexible with the development of online and software tools that allow you to hit “print” on your menus as often as you like. But waiting two or three years for an increase means the increase you need to take to save your business will actually be too big for your customers to swallow.
Wholesale Food Prices Sept. 2010 vs. Sept. 2011 According to US Bureau of Labor Statistics All Foods Fruits & Melons / Fresh-Dry Vegetables Cereal & Bakery Products
+9.8% +13.3% +9.3%
Meats
+13.9%
Eggs
+52.3%
Unprocessed and Processed Fish Dairy Sugar and Confectionary
+6.7% +13.2% +8.0%
Coffee
+20.8%
Fats and Oils
+35.4%
Alcoholic Beverages
I am not suggesting that you behave like gas stations and change your prices each day, but rather learn a lesson from them. They adjust on the fly to make sure they’re still open next month. If what you need to move to remain profitable is too big to take in a single month, plan for smaller increases for a series of months, but please get to the level you need to, to remain viable.
+3.0%
And please, use us to help you succeed. The Operations Soft Drinks +3.7% For many, rainy days are Report from the NRA, the not ideal; but when they monthly WRITS report from 2012 Minimum Wage in Washington happen, you address them the WRA, our free Consulting with an umbrella. It may feel Network and educational New minimum beginning January 1, 2012 $9.04 satisfying to raise a finger to resources from our supplier the heavens and ignore, but partners all exist to help it will only get you drenched and likely sick. I am writing you make it through the rough patches. Don’t neglect the this now because food prices are expected to continue help that’s available to you as a WRA member. Groucho increasing in 2012. And as inflation is projected to grow, Marx was a very funny man, so let’s repeat his jokes--not his there will likely be another significant minimum wage jump business practices. in 2013. Waiting today, when you should act, will only mean
Winter Edition 2011 | 9
POLITICAL REPRESENTATION
WRA celebrates passage of I-1183 and looks forward to transition ahead By Heather Donahoe, managing editor
In early November, the WRA was instrumental in achieving a feat that had been attempted unsuccessfully in Washington state for decades. On Nov. 8, voters overwhelmingly approved Initiative 1183 by a nearly 20 percent margin, dramatically reforming Prohibition-era laws governing the sale and distribution of liquor and wine in Washington state. Washington’s restaurant industry played a significant role in this historic outcome, by working with a strong coalition to develop the policy, and then supporting this effort in large numbers. The industry’s backing was firmly rooted
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industry was vital to the success of this initiative,” said Bruce Beckett, WRA director of government affairs. “We are grateful to our members for standing beside us throughout this endeavor, advocating the necessity for change and making their voices heard.” In the end, the Yes on I-1183 coalition had more than 12,000 formal endorsements from businesses, organizations and individuals across the state, the formal endorsement of 27 newspapers and more than 36,000 followers on Facebook. The restaurant sector played a vital role in delivering messages and showing support for the coalition’s campaign. An important but often overlooked aspect of I-1183 is that, the approval of I-1183 gives Washington restaurateurs the distinction of being the only ones in the country who are
An important but often overlooked aspect of I-1183 is that the approval of I-1183 gives Washington restaurateurs the distinction of being the only ones in the country who are not required to purchase liquor through an intermediary distributor. in the desire to create a competitive marketplace driven by customer demand. As a result, I-1183’s passage will allow restaurants to purchase their liquor supply from the businesses offering the most competitive prices and terms— instead of a state run system. In other words, restaurants will be able to work with vendors in the same way restaurants already work with the vendors of every other product and service used in their businesses. “The reinforcement from the restaurant
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not required to purchase liquor through an intermediary distributor. Although distributors will clearly be a crucial supplier to the restaurant industry, businesses will have the option to acquire liquor through retail outlets or even directly from manufacturers. Moving forward, the WRA is committed to working productively with the Washington State Liquor Control Board to ensure a seamless rulemaking and licensing process, while supporting the LCB in its enforcement and educational efforts. The WRA has long enjoyed a productive working relationship with the LCB, and looks forward to maintaining the cooperative interaction and dialogue we have come to appreciate from this agency and its team.
Liquor sales are now privatized… but what does that mean for my restaurant? By Julia Clark, WRA lobbyist
While Initiative 1183 undoes laws that have existed in this state since 1933, it is important to note that WRA members supported this initiative to bring choice and competition to the marketplace and to replace an archaic system with a free market model, based on business need and customer demand. It will be a big change, but one for the benefit of your business. And, the WRA is committed to partnering with you in the transition. Here is an overview of what you can expect moving forward.
manufacturers of spirits to act as their own distributor. Meaning, restaurateurs may purchase directly from the distillery. If your restaurant depends on a specialty liquor, or your restaurant has unique needs or product requests that are not being met by your retailers or distributors, you may purchase directly from the manufacturer.
Timeline Nov. 8, 2011 – Election Day Dec. 8, 2011 – Election results certified. Although we will know the likely outcome of election results, they will not be final and certified until Dec. 8. Dec. 2011 – March 2012 – the Liquor Control Board will undergo rulemaking activity for the Distributor License and Retail Spirits License and any other rules necessary to implement 1183. March 1, 2012 – Distributors will be able to begin distributing liquor to restaurant licensees. June 1, 2012 – Retailers will begin selling spirits.
A: Nothing. Initiative 1183 creates two new license types; One for retailers and one for distributors. It does not change any current license fee.
Next steps for spirits licensees The current system will stay in place until June 1, 2012. You can continue to purchase your spirits from your assigned liquor store until June.
A: Beginning January 1, 2012, the board must begin issuing licenses to distributors (who will not be able to sell or distribute until March 1, 2012). You will have the ability to choose which business you would like to work with. During the transition the WRA will work with members to ensure their needs are met and questions answered.
On March 1, 2012, you will be able to begin purchasing spirits from distributors, similar to the way you do with your beer and wine. We anticipate this is how a majority of restaurateurs will purchase their spirits for several reasons:
Restaurants operate off this model in most other states. Distributors are familiar with our industry’s needs.
Convenience – you will be able to have your spirits
delivered to your business, just like your beer and wine are. Distributors’ license fees will be 10% initially, then drop to 5%. Their fees are lower than retailers, and therefore have to make up less to cover the cost of doing business. This will most likely translate to more competitive pricing. Beginning June 1, 2012, licensees can purchase from licensed retailers. While we believe most restaurateurs will work directly with distributors, this provides another option for licensees. If you are unhappy with your distributor, this allows you to “shop around” and keep your prices competitive and customer service expectations high. Additionally, beginning March 1, 2012, 1183 allows for
Frequently Asked Questions Q: What will happen to my restaurant liquor license?
Q: Where will I get my liquor? A: Until March 1, 2012 you will get your liquor the same way you have in the past. On March 1, 2012 distributors will be able to sell and deliver your spirits, or you can purchase directly from a manufacturer. On June 1, 2012 you will have the additional option of purchasing from a retailer. Q: How will I know what distributor to use?
Q: How much will my liquor cost? A: Currently, the price of liquor is set in Olympia and is dependent on the state’s revenue needs. 1183 will keep the current tax structure in place, but removes the 39+% markup. Instead of the 39% markup, distributors and retailers will pay licensing fees. 10% for distributors and 17% for retailers. Those businesses will need to make up their licensing fees, and then decide on a markup to keep their business sustainable. It is reasonable to expect prices will be roughly the same. However, competition in the marketplace that has been formed by undoing the state’s monopoly will most likely drive down prices. Q: Do I still get a 15% licensee discount? A: No. the 39% markup that the state charges per bottle will go away. Instead, most licensees will be purchasing directly from distributors, who will have to pay a 10% licensing fee, or directly from manufacturers acting as their own distributors. The general public will be purchasing from retailers with a higher licensing fee. It is reasonable to expect licensees will be paying less than the general public because we purchase in higher quantities, from businesses with lower costs to recoup. Winter Edition 2011 | 11
Minimum wage going up, again By Shawn Sullivan, staff writer
In 1998, voters passed Initiative 688, altering Washington’s economy forever. The initiative established the highest minimum wage in the country, and requires an annual adjustment in accordance with inflation indexes tied to the major urban areas of the United States. As a result of its passage, the state’s minimum wage will increase to $9.04 on Jan. 1, 2012—a four percent increase from last year. Once again, Washington will have the highest minimum wage in the nation, and WRA members are very concerned. Most restaurants operate on a profit margin of less than four percent. Increasing labor costs, which account for more than 36 percent of their operational expenditures, will place an undue burden on restaurant owners. Cutting costs by four percent is extremely difficult, and in today’s economy, customers are increasingly seeking lower cost options from restaurants. In October, the WRA launched a wage and hour survey to its members. Within 24 hours of that release, the organization received completed surveys from more than 250 member restaurants. The results of the survey showed the looming wage increase was the primary concern heading into 2012, and most restaurateurs were considering a reduction in staff, not hiring teenage workers, increasing their own responsibilities or eliminating benefits. “I’m the owner of a moderate 60-seat restaurant in Walla Walla,” Bob Parrish, owner of Backstage Bistro, wrote in response to the survey. “We’ve been in business 12 years and survive pretty much solely on tourism. Food costs, energy costs and once again, labor are crushing the ability of the small independent operators to stay afloat. Five years ago, I employed 12 people, now I have seven. They are skilled, work hard and we are getting by. “The minimum wage is way, way too high for tipped employees. I no longer even consider hiring a high school or college kid to help out around the restaurant. At this level of pay I can only afford to hire people who can step in with
little training and get the job done. I believe that tying the minimum wage to the consumer price index has cost Washington jobs that would otherwise be filled.” According to a study by the National Restaurant Association, Washington already has three fewer employees per restaurant than the rest of the United States. The study cites the difference between Washington’s minimum wage and the federal minimum wage as the primary driving force behind lower numbers of workers in our state. Adding to the problem is a Washington law prohibiting employers from calculating tips as wages—one of only seven states not allowing this practice. This causes problems in the restaurant industry, especially because of the discrepancy between front- and back-of-house employee wages. Washington has more than 13,000 restaurants. If we do the math, Washington provides 39,000 fewer jobs than the national average. At a time when unemployment hovers around 9 percent, 39,000 extra jobs would be a substantial increase to our economy. Another unintended consequence of Washington’s high minimum wage involves teen employment. According to the Minimum Wage Study Commission, a minimum wage increase of 10 percent causes a reduction in teenage employment from one to three percent. According to Employment Security Department statistics, the number of teens employed in restaurants is down by nearly 50 percent over the last 10 years. Most businesses with minimum wage positions have decided to limit the number of teens they employ, if they hire any at all. Healthcare is also on the chopping block as many establishments must choose between layoffs, or face the steadily increasing cost of insurance premiums. So how did we get here? Each year, the Washington State Department of Labor and Industries (L&I) makes a cost-ofliving adjustment to its minimum wage, based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is based on consumer prices in continued on page 18
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PROTECT YOUR BUSINESS Last year’s legislative session was one of the most challenging in the state’s history.
Now we’re going round two. It’s time to speak up.
Register now! http://wra.cc/hillclimb Hill Climb 2012 Jan. 23, Olympia
Winter Edition 2011 | 13
Implementing top trends from the NRA’s Chef’s Survey By Melissa Marek, R.D., Axxya Systems-Nutritionist Pro
You may have noticed that nutrition information is becoming more widely available at restaurants, but it’s important to remember that not only do customers want to know how many calories they are consuming, they also want a variety of healthier menu options. According to the National Restaurant Association’s 2011 Chef’s Survey, the number one way chefs can best promote health and nutrition is to create diet conscious menu items. If you aren’t ready for a complete overhaul of your menu, try starting small. Re-formulate recipes or tweak the ones you already have.
Try using leaner meats on your
pizzas. Offset the added cost by offering a thinner crust and decreasing the cheese by 20-30%. Voila! You just created a nutrient dense pizza! Create a 500-calorie menu to showcase to your lunch crowd. This might easily be accomplished with serving smaller portion sizes. Include clear descriptions of your menu items and offer suggestions on ‘how to order’ to lighten up the meal (ex: salad dressings & sauces on the side, request steamed/grilled protein, substitute fruit or steamed/grilled vegetables on the side).
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mind that time and effort will need to go into formulating recipes and implementing staff training. Education about the disease is a key component in making this work for your restaurant. Even a simple sentence added to your menu… “If you have a food allergy, please speak to the owner, manager, chef or your server,” can provide peace of mind that special care is being taken to prepare their meal. GREAT Foodservice can prepare you to meet rising gluten-free demands. The training is offered through the National Foundation for Celiac Awareness, and it provides a comprehensive system to deliver safe and tasty gluten-free foods to the community. Learn how to read labels for gluten content, avoid cross contamination and increase confidence in your staff and gluten-free customer. The best part is that the training can be completed online at your own pace! For more information please visit www.celiaccentral.org/education.
Nutritionally balanced children’s dishes You may have read in the August issue about the NRA launching the Kids LiveWell. More than 15,000 restaurants nationwide already are participating since the July launch! Kids LiveWell is a voluntary initiative aimed to help parents and children select healthful menu options when dining out.
Educate your servers so that they are prepared to answer questions from customers regarding healthier ways to prepare the food. If your menu has been analyzed for its nutrient content, post calories on your menu adjacent to the menu items and also provide a spreadsheet that your customers can download from your website that contains additional nutrition information. Calories are important but many customers are also interested in what makes up those calories; especially for those with health issues that need to see the sodium, cholesterol, or saturated fat content of a menu item.
Gluten-free/food allergy conscious In addition to offering the nutritional breakdown of your menu items, customers also want to see what’s in the food they are eating. If you read the August issue: Embracing gluten-free and allergy-friendly techniques in your restaurant, then you know that celiac disease is an inherited, autoimmune disorder and the only treatment is the implementation of a strict, lifelong gluten-free diet. If you want to offer 100% gluten-free menu items, keep in 14 | www.WRAhome.com
Who can help? Get a registered dietician involved! They are the food and nutrition experts, and they can not only help you interpret and comply with menu labeling regulations, but they can assist you in meeting customer demand for nutrition and food allergy information. They can assist with adjusting your menu items to be healthier, and if you already have items designated as ‘healthy’ or ‘better for you,’ they can help determine if these items meet criteria based on federal laws. Registered dieticians are also able to review your menu for allergens/sensitivities and help you re-formulate your kids menu to meet the Kids LiveWell criteria by working directly with your chef. And, when it comes to ongoing questions about nutrition and allergy concerns, a registered dietician can be an invaluable resource to your business. With so many food trends, you need to determine what is important to you and your brand and decide on the best way to reach out to the more health-conscious consumer.
Menu pricing from the ground up By Rick Braa, CHAE, BRAA Associates Pricing your menu is the most important financial decision you can make. There are many facets, but financial impact is the focus of this article. You must determine how to make money with the best menu pricing possible. If your prime cost is running north of 60%, you’re going to have a difficult time making a good living and paying off the initial investment (prime cost = total product cost + total labor
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routinely calculate recipe costs. For illustrative purposes, let’s use a simple plate cost: Twelve-ounce prime rib with baked potato, corn on the cob, bread and butter. We’ll ignore the seasoning cost necessary, but you can always include a little something for items like salt, pepper and frying oil.
(C) Raw cost
(E) (D) Total Cooked or cut cooked or yield % cut cost
(F) Unit of recipe measure (UM)
(G) # UM per purchase unit
(H) Recipe UM needed
(I) Total recipe item cost
LB
$5.00
80%
$6.25
OZ
16.00
12.00
$4.69
Au Jus
Gallon
$9.50
100%
$7.00
OZ
32.00
0.50
$0.04
Horseradish
32 oz.
$7.00
100%
$7.00
OZ
32.00
0.50
$0.11
(A) Item
(B) Purchase unit
Prime Rib
Total
$4.84
Potato
LB
$2.00
100%
$2.00
EA
2.00
1.00
$1.00
Butter
LB
$3.00
100%
$3.00
TBL
32.00
1.00
$0.09
Sour Cream
32 oz.
$3.20
100%
$3.20
TBL
64.00
1.00
$0.05
Total
$1.14
Corn cob
EA
$0.50
100%
$0.50
EA
1.00
1.00
$0.50
Butter
LB
$3.00
100%
$3.00
TBL
32.00
1.00
$0.09
Total
$0.59
Bread
Dozen
$2.40
100%
$2.40
EA
12.00
1.00
$0.20
Butter
LB
$3.00
100%
$3.00
TBL
32.00
1.00
$0.09
Total
$0.29
Total Meal Cost
$6.87
cost including taxes and benefits). I usually receive three different reactions to this data—‘You’re crazy,’ ‘It’s the state’s fault,’ or ‘How do I fix it?’ The first two are entirely possible, but the answer to number three is the best response to pursue. It’s simple math. Operating costs are going to run about 15-20% by factoring utilities, credit card fees, supplies, marketing, discounts, repairs, etc. Occupancy (rent, CAM, taxes, insurance) is going to cost around 10%. Do the math: Prime cost 60% + Operating costs 20% + Occupancy 10% = 10% remaining for taxes, depreciation, return on investment, debt, capital expenditures and a number of other items of which you’re all too aware. The first area to improve profitability is product cost. To achieve the financial impact you wish, start by computing the cost of all recipes. It’s surprising how many operators don’t
1. Find how much you’re paying per purchase unit, in this case, $5.00 per pound (C). 2. Calculate the yield on cooking and/or cutting. Here we’ll assume an 80% cooked yield on the prime rib (D). Notice the price per pound to sell the product went from $5.00 to $6.25 (E). These calculations must be made for every product when costing a recipe, especially for produce, which changes seasonally. 3. Calculate the conversion to unit of measure needed for the recipe (G) and how much of that unit of measure is needed (H). This will total the recipe cost (I). 4. Build the remaining items included in the entrée served to the guest (in this case, the baked potato, corn on the cob and bread.) The total cost of the meal is $6.87. Continued on page 18 Winter Edition 2011 | 15
The ideal restaurant menu deconstructed By Heather Donahoe
arranged to entice the best possible outcome for the customer and the restaurant. If a menu is well-designed, it can drive sales and determine how often guests are willing to return. Words to remember The most well-intentioned restaurant operator may be amused by his own clever menu descriptions or the number of adjectives he’s crammed under each item. While this approach may work in rare and special circumstances, the average customer only wants a clearly worded outline of what’s available.
Restaurant menus are a gateway for customers—the point at which they understand what a restaurant is all about. And while customers may get their first glimpse of an eatery’s concept from the parking lot, it’s the menu that brings everything into focus. It’s where customers discover what distinguishes a restaurant from its competitors; and importantly, it’s where a guest deliberates on how much they’re willing to spend. There are multiple aspects to consider when constructing a menu, which should be more than just a list of the items a kitchen staff can prepare. It should be thoughtfully 16 | www.WRAhome.com
“Don’t make your customers work to read your menu,” said Arnold Shain, founder of Restaurant Group, Inc., and member of the WRA Consulting Network. “Nobody wants to wade through a long, wordy menu when they’re trying to decide what to have for dinner. The only wording should be the ingredients themselves.” But what if an operator wants to note that its seafood is sustainable, its beef is freshly ground on-site or its produce is local? Those are important details, after all. Shain’s advice is to include this information in a single location on the menu—a sidebar or a box of narrative incorporated into the menu’s layout. Shain emphasizes using warm colors and highly legible typefaces on menus, as opposed to ornamental fonts that may be attractive but difficult to read. “Don’t get cute,” he said. “Use bolder typefaces. Do everything you can to make reading the menu a straightforward experience.” Branding For better or worse, a menu always reinforces a restaurant’s brand. Rick Braa, founder of Braa Consulting and WRA Consulting Network consultant, urges operators to ask themselves a series of questions regarding how their menu reinforces the restaurant’s brand message: 1. Is my brand message clear? 2. Does my menu position me as traditional or contemporary, fine dining or casual?
3. Is my pricing competitive and price/value fair? 4. Am I proud of my menu? 5. Does my menu have enough or too much choice? 6. Is there enough differentiation from other concepts? 7. Does my menu reflect the relevance of the times? 8. Does my menu make my mouth water and create cravability? 9. Will the guest feel better after reading my menu? The goal for any restaurant should be to become number one in its space and create an insurmountable lead, according to Braa. By answering the questions above you will have an easier time articulating what “space” you wish to occupy. Once the brand position is clearly stated, the message is more easily delivered. Eye Patterns According to research, the average customer spends significantly less than two minutes studying a menu. A study by Gallup several years ago revealed a guest’s eye patterns during that short timeframe. Understanding these patterns can help guide a customer’s line of site in the right direction. To the right is a closer look at how customers examine a threepanel menu. The numbers indicate the sequence in which guests have been observed to study a menu. Rick Braa explains: “Position 1 is just around the center of the menu. The consumer quickly scans up and to the right to position 2, then skims across the top of the menu on the way to position 3. “The left side of the menu is the only section of the menu that is read top to bottom (position 3 to position 4). Don’t believe it? What is typically on the left side of the menu? Appetizers, salads and soups. How did you know that? You read from top to bottom on the left side of the menu.
“There is a tremendous opportunity for incremental sales if you design cravable appetizers, salads and soups. It’s important to measure how much of your sales are derived by the left side of the menu. Set a goal to increase appetizer, salad and soup sales percentage of total revenue by three points this year (e.g. from 10% of total revenue to 13% of total revenue) and two points next year, the revenue tends to be incremental. “Continue the scanning pattern to position 5 which crosses the middle position, then down to position 6, then through position 1 again to position 7. It is clear that position 1 is the coveted space. Open your menu and look to see what is receiving the most attention from the guest. Given the scanning pattern of the typical consumer, there are some fundamentals crying out for attention.”
Eye Patterns One-Panel Menu 2
Two-Panel Menu 3
2
1 7
1 3
5
4
6
The numbered circles in each graphic illustrate the order in which customers read your menu.
Three-Panel Menu 3
2 1
5
7
4
6
WinterOctober Edition 2011 2011| | 17
Minimum wage going up, again (continued from page 12) the nation’s largest urban population centers (e.g. – Chicago, New York, etc.). A major problem is that this index grossly overstates the actual cost pressures occurring in the vast majority of Washington state. How do Chicago prices have any relationship to prices in Morton, Wash.? The CPI-W measures the average change in prices on a fixed group of goods and services. L&I uses the CPI-W information to calculate the state’s minimum wage in September of each year, and the wage adjustment takes effect on January 1 of the following year. Based on the language of the initiative, Washington’s minimum wage calculation will never result in a lower minimum wage. Despite the efforts of the WRA, the Legislature has not considered any potential revisions to the initiative. However, given recent economic indicators, our current unemployment rate and the significant outcry of restaurant operators, legislators must consider making changes to this flawed system. “You may believe that increasing the minimum wage for restaurant employees is better for entry level employees,” Dave Dupree, owner of Latah Bistro in Spokane, said in response to
the survey. “The exact opposite is true in our restaurant. As a matter of fact, we are no longer hiring due to the increase in minimum wage.” Dupree also described how the new minimum wage will impact his restaurant. “Labor costs are the number one uncontrollable cost threat.” Dupree said. “We have attempted to pass on the minimum wage increases to our guests, have reduced employee hours and have added extra work to each employee job description, which is burning out our workers.” Dupree also explained that with a lack of a tip credit, his business feels the pressure of an increased minimum wage. “Keep in mind, in addition to the minimum wage, our servers are making great tips, and when added to their hourly wage, are making on average $18 per hour,” Dupree said. “Please consider allowing tipped employees a lower minimum wage.” The WRA will continue the fight to reform our current minimum wage system, especially in the areas of tip credits and training wages for teenage workers. The available data supports the need for major changes, but the question still remains— will our elected officials help the restaurant industry?
Menu pricing from the ground up (Continued from page 15) Once the cost of the meal has been determined, it’s time to decide what price to put on the menu. The goal is to sell the meal at the point where value and price align while maintaining the best gross profit and maximizing guest counts. With a menu cost of $6.87 here are three options:
better prime cost. Keep it simple on the labor side of the equation. Compute whether the item is low, medium or high in labor cost. Don’t bother assigning a time to produce menu items. Follow logic as assigning labor values to recipes is inaccurate and time consuming; you’ll never finish the task. Eliminate or modify those items on your menu that
Item
Selling price
Cost $
# Sold annually
Total sales $
Product Labor cost % Gross profit cost
Comments
Prime Rib 12 OZ
$14.95
$6.87
6,200
$92,690
46.0%
$50,096
Low
Price too low will hurt cost
Prime Rib 12 OZ
$17.95
$6.87
5,200
$93,340
38.3%
$57,616
Low
*Most gross profit
Prime Rib 12 OZ
$19.95
$6.87
4,200
$83,790
34.4%
$54,936
Low
Priced to high to sell
The price of $17.95 is the optimum pricing in this scenario as it contributes the most in gross profit and contributes an extra $3 toward labor cost without increasing labor. In this example, the number sold per year has been reduced from the $14.95 price point as the likelihood of selling less is calculated as menu price increases. Prime cost will be good on this item as it is low prep and easy to execute off the line.
require a high labor cost.
Once you have the all menu items costed out (including beverage), you will want to line them up in a spreadsheet against what you sell, and forecast changes on an annual basis that can be made to get to an optimum pricing point that will reduce product cost and contribute to 60% or
Rick Braa is part of the WRA Consulting Network. Call 800.255.7166 for more information on the Network. If you would like a free menu engineering spreadsheet to use for modeling, contact Rick at rbraa@braaconsulting.com.
18 | www.WRAhome.com
Schedule time weekly for recipe costing and modification and finish the task in the next quarter. The best operators understand the value of managing recipe costs and driving prime cost. Get prime to 60% or better, and you’ll have a great return on your investment.
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Winter Edition 2011 | 19
Is your menu legally sound?
Understanding basic menu health warning requirements in Washington Article assembled by WRA’s legal team Menus are a restaurant’s invitation to start a dialog with their diner about the wonderful food and drink options that are available. They also help to set the tone for the restaurant. And in the Pacific Northwest, many people actually read the fine print: Where are those oysters from? How was that albacore caught? Are the tomatoes heirloom? So with all the ground that a menu already needs to cover in a very small amount of space, why do lawyers and bureaucrats insist on annoyingly grabbing their own place on restaurant menus for legal disclaimers? In short, they do it in the name of public safety and, to some extent, to protect restaurateurs from claims and lawsuits. It seems like big brother is demanding more and more space on restaurant menus, receipts and real estate. For instance, Washington requires certain disclosures regarding automatic service fees, and we’ve now grown used to seeing the calorie count for a cheeseburger at chain restaurants. Those disclaimers differ from the subject of this article. For our purposes, we are looking at warnings for food and drink that could cause fairly immediate sickness--primarily food and drinks that are purposely undercooked or not fully pasteurized. The specific requirements for menu warnings in Washington are contained primarily, but not exclusively, within the state’s adopted version of the National Food Code (See WAC 246-215). Generally speaking, under the adopted Food Code, a menu disclosure is required when a restaurant offers unpasteurized juices or foods of animal origin that are served raw or undercooked. There are a few specific exceptions to the rule that may be worth looking into for a specific restaurant. Identification should be placed at the point where the food is selected by the consumer, which is often the menu, but in other cases may be a placard or order board. If your restaurant serves the types of food for which warnings are required, then you need to provide a two-prong warning, 20 | www.WRAhome.com
containing a disclosure and a reminder. A disclosure, for instance, might include information on the cooking status: oysters on the half-shell (raw oysters) raw-egg Caesar salad our steaks are cooked to order; or A footnote (with asterisk or other indicator) states that the marked items: are served raw or undercooked, or contain (or may contain) raw or undercooked ingredients. The second part of the warning, the reminder, could include: Consuming raw or undercooked meats, poultry, seafood, shellfish or eggs may increase your risk of foodborne illness. Unpasteurized juice may increase the risk of foodborne disease to people with certain medical conditions. The disclaimer and reminder need to be located next to one another and where menus are concerned, must be visually equivalent to 11-point font. So how are these disclaimers supposed to help your restaurant? Why do you need to warn people about the dangers of a Caesar salad? In short, the regulations help because they attempt to create a clear legal duty for the restaurant. If you comply and a patron ignores the warning and gets sick, you have something to talk about when they call up to tell you about how great their lawyer is. Indeed, the basis for most tort claims in restaurants is “negligence” – the failure of the restaurant to comply with a duty owed to its customer. These “duties” are not always clear, however, and within case-law, continue to change and evolve. When the state creates a specific legal requirement, however, most courts will treat that as the “standard of care” or “duty” that was required of the restaurant. If the restaurant complies, it will be considerably more difficult for a plaintiff to successfully sue. Unfortunately, there still are some unsettled issues on the edges, such as disclaimers about nuts, alcohol in food and the potential for bits and bones. Disclosures of these types are not squarely within Washington’s current menu disclaimer regulations, therefore restaurants and their lawyers are left to determine whether specific additional warnings are advisable.
ServSafe Alcohol:
Your ticket to safe, responsible alcohol service
PASS IT ON Lyle Hildahl, WRA Education Foundation director
By Lyle Hildahl, director of the Education Foundation In my career as a chef, manager and owner, I experienced lessons that drilled in the importance of safety in a way that I have not forgotten nor want to ever experience again. I considered myself a pretty good operator, and still made some serious mistakes. The biggest mistake I made was in taking a complacent approach to training—in particular, training related to safely serving food and beverages in a safe environment. I paid tremendously for the oversight. That leads me to the purpose of this article. Pay attention to the training you provide when it comes to serving alcohol responsibly. The Washington State Liquor Control Board implemented Mandatory Alcohol Server Training (MAST), Class 12 and Class 13, in 1995. The Washington Restaurant Association Education Foundation led the industry with its MAST training, issuing an average of 10,000 permits each year. As more training programs were approved by the LCB, our members requested an online option. We took that request seriously and lobbied for a rule change that resulted in state approval for online MAST training. As our in-person training was coming up for renewal, we looked at many options and decided to partner with the National Restaurant Association and their ServSafe Alcohol program to develop a Washington state version for inperson and online training. The NRA ServSafe Alcohol program has received many national awards—too many, in fact, to list here. The process has been a year in the making, but we are proud to announce that it was approved and launched on Sept. 30, 2011. Because this program has been roadtested by thousands of liquor licensees already, there are plenty of operators who can vouch for its convenience and effectiveness. Dawnmarie MacGillis, regional training manager with AmRest Applebee’s Division, has implemented ServSafe Alcohol with the 600-plus managers she oversees across eight states. AmRest Applebee’s already was using ServSafe food handler training, and MacGillis chose ServSafe
Alcohol because she liked the idea of syncing up the two curriculums. “We’ve really embraced the ServSafe Alcohol program,” MacGillis said. “The materials are so well done, and they do a great job of explaining the subject matter. The approach is really practical, meaning there are real-world scenarios where [the managers] have to talk about what they would do in a particular situation.” A real advantage of this program is that after successfully completing the course, the employee receives two certificates—the national ServSafe Alcohol Washington certificate and the state Class 12 permit. We feel it is the best alcohol server training available, and we are confident you and your staff will agree. Here is how you can access this great program:
ServSafe Alcohol Online Process 1) Go to www.SSAwashington.com
2) Select “Click Here to Get Started Now” 3) Select the quantity of online courses and exams you’d like to purchase and add to your shopping cart. 4) You will be required to create a User ID and password. Make sure you select ‘yes’ when asked if you’re a member of your State Restaurant Association as this, in tandem with your member number, will unlock your member discount. 5) After purchasing, you will receive an email with the Course Key for the course and exam. 6) From the ServSafe.com, select ‘Access Online Course/Exam’ 7) From the drop down box labeled ‘Access Online Course’, select ‘Washington Alcohol Course’. 8) From the Course Management screen, you can either select a pre-assigned course or enter the Course Key to unlock course. Please call 800.765.2122, ext. 6703 with any questions. Winter Edition 2011 | 21
2012’s Top 12 tips for making your bar operation more profitable By Tim Arnot, owner of Bevintel of Seattle In honor this issue’s menu theme, let’s take a look at bar operations—and important part of the restaurant that shouldn’t be overlooked in terms of sales and profit. Depending on the size and nature of your establishment, bar sales can double that of food. The twelve tips below will definitely increase profits on your current sales, as well as build new sales options for you. You might already be doing some of these. Others you may have only briefly considered. Why not implement a few now to kick start the new year? 1. Have a drink menu! Just like a menu for food, your patrons prefer to have a list of choices for draft beer, wine, cocktails and spirits. While some folks like to stick to their typical drink and won’t need a list, others appreciate a menu of choices, and some may be looking to try something completely new. Like most Northwest beer snobs, I prefer seasonal draft beer. Without a draft list, you are presenting two inconvenient scenarios. One, you are asking your customers to walk up to the bar, trying to guess what the tap handles indicate, while peering over the shoulders of the patrons sitting at the bar. Or two, you are requiring your serving staff to rattle off a list of what’s on tap to every customer. This leaves room for error, puts the customer on the spot to make up his mind quickly and takes up time that could be spent filling orders at additional tables. 2. Keep the drink menu simple. Group types of beers, wines and spirits together. Be descriptive, yet to the point. People like to know something about what they are ordering, yet they want to be able to look find it quickly without reading a novel! For example, local craft beers should mention style, body and alcohol content. Beyond this, and for any additional info, the server should be able to give a basic description, as well as encourage them to try something new. Dan Murphy, owner and GM at the Ballard Loft in Seattle educates his staff regularly on new products. “I like to have our service people know something about the beer, rather than trying to make something up, which really just sounds terrible,” Murphy says.” I encourage my staff to sample every new product when it is added and often post information on new drafts. This way they have thought about the product, tasted it, and hopefully remember it. Northwest people really appreciate their local micros and a little knowledge from their service person can really leave them satisfied and impressed.”
22 | www.WRAhome.com
3. Feature local products from brewers, vintners and distillers. Washingtonians take pride in our local wineries and craft breweries—please don’t neglect them just because California wines and the domestic beer giants will sell to you at discounted pricing! As you are already aware, our exceptional Washington beers and wines have launched themselves into the big leagues. You can now even obtain some great new spirits from small Northwest start-up distilleries, such as Dry Fly, Voyager, Woodinville Whiskey and Single Silo among others. 4. Offer a few signature drinks. Do not overwhelm with more than five; otherwise, it is just another list. Keep them original and seasonally-based. A cherry mojito might be a good bet in the summer, yet maybe not such a great seller in the winter. Instead of bottled and canned juices, why not substitute fresh ingredients (local in-season when possible) or at least use concentrates? A citrus press makes a tasty drink and shows customers that you take cocktails seriously. Consider using herbs and/or spices as an ingredient. Stay eclectic and original—some bars have even taken to creating infusions to use in their signature cocktails? Susan Ward, owner at The Balmar in Seattle has found the following successful at her establishment. “We create a monthly featured cocktail, playing off seasonal themes and fresh ingredients,” Ward says. “My bartenders like coming up with creative recipes, and our guests look forward to what’s new each month. It’s the only cocktail that we discount during happy hour, so it’s also a great introduction for our guests to our craft cocktailing skills and a way to educate them on different spirits.” 5. Feature products that focus on your theme and cater to the tastes of your customers, while always broadening their experience. Recommend pairings with the food menu (not just for wine!). For example, if you are a Mexican restaurant, feature a variety of tequilas (not just the popular, trendy stuff) and a house-made sangria. For an Italian restaurant, your focus is mainly on wine, but don’t just have Italian wines available when Washington wines are often better quality for the price and go equally well with the same food. Likewise for liquors, stock and promote a few varieties of limoncellos and grappas. Research and experiment; be as adventurous as you are with your cuisine! Your customers with appreciate it.
6. Actively market your offerings. Use happy hours and specials as an opportunity to promote new drinks. Host a brewer’s night or “meet the winemaker.” Appeal to the widest customer base by having a variety of price points and drink sizes. Offer wines in several price ranges: $6, $9, $15. The consumer will often choose the one in the middle. Offer two sizes of beer on tap: a 14-oz. pint or a 25-oz. big beer for a slightly lower-higher pour cost. Your customer will often order the larger beer due to perceived value. You are offering a volume discount but selling more product, thus making more money. 7. Offer tasting sessions and samplers to educate and inform. If you have a large variety of whisky or tequila in your bar, why not create a sampler menu much like wine bars do with flights of wine. The Whisky Bar in Seattle offers a scotch tasting on the first Wednesday of every month. For $10, you are served three half-ounce pours of whatever scotch the bartender fancies, served up some free haggis, neeps and tatties and can get your jig on with a live bagpiper! Barman “Jeff” contends his patrons have the opportunity to sample something unique which they might otherwise never have ordered. 8. Utilize proper glassware. For German or other European beers you should strongly consider serving in the glass that is recommended by the brewer. For cocktails, use the right style of glass for the drink— “buckets” for rocks or neat drinks, “chimneys” for highballs, margarita glasses for margaritas. For cocktails, you should have at least two glass sizes. A 4- to 5-oz. for alcohol-heavy drinks--martinis and manhattans, and 7-oz. glass for juice-based cocktails—lemondrops, cosmos, etc. This will allow bartenders to fill the glass to the top without over-pouring the liquor or under-filling the glass and presenting what is perceived as an under-filled drink by the customer. 9. Off-premise sales for draft. Recent legislation in Washington now allows you to sell draft beer to go— stock some growlers with your logo for customers to purchase and have filled with the draft of their choice, while marketing your business at the same. 10. Wine spoilage for wines by the glass has always been an operator’s nightmare. Once the bottle is open, you have only 1-3 days before it turns. Scott Nord, owner
of Mick Finster’s Pub and Grill in Edmonds has tried several things: box wines, nitrogen preservation and splits. “Unless you go through a lot of wine, I have found that the splits (or 8 oz. bottles) work best for eliminating waste, and it simplifies the accounting,” Nord says. A new option for operators is wine on tap. La Botte Piccola in Columbia Valley, Washington is one example from a growing list of vintners that offer packaging of wine in 15-liter kegs and small barrels. Just like beer on tap, it is guaranteed to stay fresh for at least six months. Plus the refillable containers are much better for the environment. 11. Take a critical look at your inventory. Discontinue products that are not being sold by offering closeout specials on them (shot or drink special of the week). Adjust your par levels weekly based on current sales patterns, and order only what you need to get by for each week. Six bottles of Blue Curacao or Glenfiddich on the shelf is not going anywhere for a long time. It not only wastes precious space, but ties up money that can be used elsewhere. 12. Another way to get more profits from every drop is to examine your pour costs! For instance, rather than having a standard mark-up on doubles, adjust pricing for each brand and keep your costs in line. In summary, implementing new procedures and practices can be profitable without having to incur a lot of new expenses. Good luck and good business in the New Year!
Winter Edition 2011 | 23
New federal menu labeling rules for chain restaurants on the way By Shawn Sullivan, staff writer A national menu labeling law, known as the LEAN Act was included as part of the national health care reform signed into law by President Obama in 2010, is currently in final stages of rulemaking at the Federal Drug Administration (FDA).
customers must use caution when calculating the numbers. For that reason, outside help is recommended. Currently, there are three ways to ensure your calorie counts are accurate—hiring a consultant, using a database calculator or sending samples to a lab.
The new law clarifies the rules regarding the regulations and guidelines, defining the national menu labeling requirements. This includes calorie counts and dietary statements, along with what additional nutrient labeling must be available upon request.
Certain specialized consultants are familiar with the painstaking method of calculating nutrition information, and can point out items chefs or general managers may overlook. Consultants can keep restaurateurs focused on making money, while complying with the new requirements of the LEAN Act.
How could these rules affect your restaurant? The answer depends on the number of locations you operate. The new rules imposed by the LEAN Act requires restaurants with more than 20 locations nationally (except King County, which stays at 15) to include nutritional information on menus, an additional insert or an electronic device that gives customers that information about your menu. Posting nutritional information on menu boards for drivethru restaurants also is under review. Similar to what will be required on menus, the new law may require owners to post the calories per standard menu item, a succinct statement concerning suggested daily caloric intake and a referral statement regarding the availability of additional nutritional information upon request. While no exact timeline currently exists, the new rules could be finalized as soon as this winter. Once final, the new national menu labeling law will go into effect with a grace period to allow affected companies the time to update their menus/menu boards. The new law gives restaurants a 20 percent variance on the accuracy of information on menus, which means the actual number of calories in the dish cannot be 20 percent higher or lower than the restaurant has provided to customers. If a top-selling menu item is listed as having 500 calories, the variance allows for 100 extra or fewer calories every time the dish leaves the kitchen. Places that meet the criteria (20 or more locations) and violate the rule will receive penalties. However, the FDA has not made a decision regarding penalties. Local health departments are charged with enforcing the menu labeling law, so keeping in close contact with your health inspector and working together toward compliance is key. Restaurateurs interested in preparing an insert for their 24 | www.WRAhome.com
Using a lab to analyze samples has its benefits, but it is a time consuming process. Restaurateurs send items from the menu to a lab, scientists analyze the samples and send back detailed nutritional information. Based on the size and complexity of your menu, this process can be costly. The number of labs that offer this service are somewhat limited, but are becoming more readily available. The cost of using labs should diminish, as the demand for timely accurate information continues to rise. Companies like California-based FoodCalc offer software that uses the most current nutritional data to determine calories on menus. “The USDA has done [calorie calculations] for thousands of years,” FoodCalc Director of Nutrition Alyson Mar said. “We have harvested that database so restaurant operators can use that database for their restaurant. Operators make recipes, then save them as ingredients—we are using that information and tailoring the calorie counts to the menu.” After calculating nutritional values, it is important to evaluate the cooking process. A team meeting with all of the cooks and wait staff is highly recommended. The chefs cook every item on the menu and must pay close attention to any deviations from the recipe used in the calculations. It’s important to remember to adjust your calorie counts as the menu changes—especially if you add or eliminate any ingredients. Ingredients such as cheese or cream have a much higher calorie density, so adding or removing a tablespoon may cause a drastic impact on your nutritional information. If your staff continues to get requests for information, or if you fall under the new federal regulations, start looking into options now. The longer a restaurant waits to comply or begin tracking calories and ingredients—the more a transition will cost.
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INDUSTRY CALENDAR
Visit www.WRAhome.com/calendar for a full list of events.
Training | Meetings | Events | August & September Events
Meetings
Training
Jan. 23
Nov. 29
Government Affairs Committee Meeting
Dec. 13 Jan. 3 Jan. 4
Spokane Chapter Meeting Executive Committee Meeting Seattle Restaurant Alliance Morning Mixer
Jan. 17
MSC Board Meeting
Jan. 17
Finance Committee Meeting
Dec. 5 Dec. 5 Dec. 12 Jan. 3 Jan. 9 Jan. 19
Hill Climb & Taste Our Best
New Members Primo HG, Redmond Goldie’s Shoreline Casino, Shoreline Ideal Enterprises, LLC, Ellensburg Goldies Shoreline, Bothell Fairplay Commercial Capital, Kirkland Al Forna Feruzza, Olympia Dutch Bros. Coffee, Lacey Taco Bell, Bellevue, Lake Forest Park, Bothell, Edmonds, Seattle, Everett, Lynnwood, Lake Stevens, Lynnwood, Snohimish Three Monkeys, Vancouver Hotrods Bar & Grill, Goldendale Barnes & Watson Fine Teas, Seattle Nicholson & Associates, Olympia
New Allied Members Fairplay Commercial Capitol LLC Chris Hart 5250 Carillon Point Kirkland, WA 98033-7378 425.922.8473 chrishart23@msn.com www.fairplayfunding.com Commercial Loans. Insurance Services Group, Inc. Trevor Campbell PO Box 1658 Edmonds, WA 98020-1658 425.775.6446 trevorc@insuranceservicesgroup.com www.insuranceservicesgroup.com Business insurance services. 30+ companies and exclusive hospitality insurance programs. RE.PC Steve Hess 1565 6th Ave S Seattle, WA 98134-1630 206.623.9151 repc@repc.com www.repc.com Computer sales & service. 26 | www.WRAhome.com
ServSafe, Kent ServSafe, Seattle ServSafe, Everett ServSafe, Seattle ServSafe, Kent ServSafe, Tacoma
Winter Edition Chef’s Club (cont. from page 8) Safety Northwest 15% Discount. Joe Mullens 12172 SW Morning Hill Dr Tigard, OR 97223-1878 (503) 709-7129 jmullens@safetynorthwest.org
Sonofresco 10% discount on all products. Robert Penrose 1365 Pacific Dr Burlington, WA 98233-3128 (360) 757-2800 robert@sonofresco.com
Seattle Restaurant Store Smallwares- 10% off with an additional 5% on orders over $1000. Major in stock equipment - 5% cash discount with cash or check or 3% with Visa/MC. William Green 14910 Aurora Ave N Shoreline, WA 98133-6528 (206) 362-4900 billg@srscooks.com
Spot Check, Inc. $25 discount for all class attendees Lynn Bolgen PO Box 22051 Seattle, WA 98122-0051 (509) 649-2443 llbolgen@juno.com
SESAC 10% discount plus an additional 10% discount to members who pay by January 31st of each year. Susan Edwards 55 Music Sq E Nashville, TN 37203-4324 (615) 320-0055 sedwards@sesac.com Small Restaurant Specialist 30 minutes free consulting. Jean Klein 5360 Lansdowne Ln Mercer Island, WA 98040-4649 (206) 795-4443 jklein@smallrestaurantspecialist.com
Steve’s Hot Smoked Cheese & Salmon 10 % off $100.00 or more Steve Shindle 26806 166th St E Buckley, WA 98321-9199 (253) 632-5537 oldsmokey05@msn.com Strenua Group, LLC 10% off consulting services exclusively for WRA members! Amanda Mayo 5400 Carillon Point Kirkland, WA 98033-7537 (425) 870-8145 amayo@strenuagroup.com tasteePic.com 25% discount Pavan Kanaparthy 9011 Venn Ave SE Snoqualmie, WA 98065-5010 (425) 998-6492 admin@tasteePic.com
Feeding dreams. Building futures.
Serve only the Finest
Bavarian Meats
in your restaurant!
We hand-craft over 40 different types of German Sausages and Meats. Perfect for any menu
Call Today! (206) 448-3540 Home of the famous, award-winning Landjaeger
Bavarian Meat Products
CHEF ELI DALAGER
• Sous Chef at Harbor Crest Retirement Community • American Culinary Federation 2011 Chef of the Year Washington state • Prostart Graduate and Industry Volunteer Chef Eli is a graduate of the Ferris High School ProStart program in Spokane. According to Eli he didn’t have a lot of direction at the time he started ProStart, but as soon as he was introduced to the culinary arts and was asked to compete, he was hooked. Today he volunteers with his local ProStart program and for the WRA Education Foundation. You can feed a dream and build a future hire or mentor a ProStart student.
Visit www.wrahome.com.
Marketplace CONSULTING AND BUY/SELL SERVICES
SELLING OR BUYING?
Thinking about selling or buying an existing restaurant, or adding a new location? Call Allan Boden, Sunbelt restaurant specialist at 206.229.4717, or email a.boden@sunbeltnetwork.com. Sunbelt has been serving clients since 1982 with offices nationwide. http://seattle1.sunbeltnetwork.com
25 Year CPA and former restaurant owner can help you increase your bottom line, improve efficiency, plan an exit strategy and provide selling or buying services. Affiliated with business brokerage/intermediary firm of William E. Pearsall, P.S. Excellent references. Certified QuickBooks ProAdvisor. Call Jean Klein (206)795-4443. www. smallrestaurantspecialist.com
A&W RESTAURANT FOR SALE
Buck’s A&W has been serving Port Orchard, WA. for 52 years. We are well known for our community involvement. The restaurant has a large dining room and a drive-thru. Great volume and good lease terms. Contact Rick Gehring, rgehringaw@msn.com or 360.710.5233.
SERVSAFE MANAGER
ADVANCED FOOD SAFETY TRAINING
www.servsafe.com
Why Roast your own Coffee? So you can: Serve high quality coffee Save money Build your reputation Contact Sonofresco to learn how easy it is to start roasting your own fresh coffee today!
The Sonofresco Roaster is: sonofresco Fully automated & simple to use (866) 271-7666 Made in Washington - and we office@sonofresco.com sell excellent green beans too! www.sonofresco.com
ServSafeAd_marketplace.indd 1
28 | www.WRAhome.com
6/22/2011 4:40:10 PM
Join the revolution … and discover how you can improve your restaurant.
The National Restaurant Association, Council of State Restaurant Associations, 40 state restaurant associations — including the Washington Restaurant Association — and Heartland Payment Systems® have joined forces to upgrade the crucial business services of every restaurateur. Full Course Business SolutionsSM — an exclusively endorsed suite of payments products and services — does just that, helping you reduce expenses, enhance operations and increase profitability. Our offering will grow as the industry — and your needs — evolve.
Full Course Business Solutions Card Processing • Gift Marketing • Payroll Services • Check Management To learn more about how this movement can help revolutionize your restaurant, visit GoFullCourse.com and call 866.941.1HPS (1477) x150. © Copyright 2010 National Restaurant Association. All rights reserved. © 2010 Heartland Payment Systems, Inc.
Ask the Expert | Restaurant Profit Coach
Increase sales by ensuring quality By Rick Braa, CHAE
Q: In visiting with my guests I receive information that sometimes drives me crazy. I hear our food can be inconsistent coming out of the kitchen. One day an item is terrific and the next it’s just soso. What can be done to improve our consistency?
A:
One of the common techniques used by some of the best companies is to routinely test the kitchen staff on the quality of the food coming out of the kitchen. You should test your food every day and have your staff give input. Different cooks cook differently. That’s not a good thing for consistency. The critical execution factor is to prepare the menu item exactly how you want it to go to the guest and then train the kitchen to produce it perfectly and the service staff to serve it promptly. What good is a great plate of food if it can’t come out of the kitchen perfectly or make it to the guest quickly? Set the expectation that anything less than perfect cannot be served to a guest. Don’t let consistency slide or you will be granting silent approval and letting the staff know consistency is not all that important. Schedule formal reviews of menu items following a format called FATT. Every recipe should be written and available for training and have the FATT criteria listed of Flavor, Appearance, Temperature, and Texture. Call your staff together daily to review at least one menu item for:
Flavor—ensure it matches the recipe as it was intended
at its best. If the flavors are off, fix it or get it off the menu. Consumers are engaged when the taste of the food is fantastic. The goal of the flavor is to create a memory and crave factor.
Appearance—ensure that it matches a magazine ready appearance. You’ll never get every pine nut in the right position but the food should show well. For example, if a salad is to be well dressed list it as, “fresh romaine, well dressed, more white than green” and make sure the staff can repeat how the item should look while it is being reviewed.
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Temperature—hot food hot, cold food cold. It’s amazing how simple this concept is. Too often one can look in the kitchen window and see one item sitting for several minutes waiting for another to be finished. I can’t find a single recipe that calls for, “put the item in the window for a few minutes while the other items finish up.” Flawless execution is hitting the window at the same time with the items. Take the time to show your staff the difference between a fresh, hot french fry right out of the fryer and one that sits for a minute or two under a heat lamp. An executive at one of the top fast food chains went through this exact exercise and measured a fry at 200 degrees and one at 160 degrees. The staff agreed the fry at 160 degrees tasted cold even though it was a mere minute out of the fryer under heat lamps! Texture—this is where poetic license can be taken. Use your imagination to list the texture of the food. Crisp, crunchy, crusty, frosty, steaming hot, delicate, wilted, etc. Review what memory you want each bite to create. Consumers want to share stories of what they have eaten and those stories can create crave by making sure the texture is correct. A guest will remember a soft, warm bun, crispy lettuce, hot melting cheese, chewy bacon, and a fresh, juicy burger if every one of the textures is correct. They’ll crave it more often than if the burger was dry and the lettuce was wilted even though the rest of the items were right. Restaurants that execute items perfectly out of the kitchen and get the items to the table quickly enjoy more frequent guest visits and higher sales. Their secret is flawless execution of the FATT criteria.
Need PR Advice? WRA Consulting
NETWORK 800.225.7166
FREE 30 -Minute Consultation
FROM OUR
PR EXPERT
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ALL IN THE FAMILY
Nearly 100 years ago there was a marriage between two prominent Catalan wine families in a little town outside of Barcelona, Spain. And with this marriage started a wine company with an unpronounceable name – Freixenet.
Today, that family still lives above the winery. And with a third generation of family members now in leadership positions, you can see the Ferrers of Freixenet (fresh-eh-NET) have expanded their portfolio far beyond the world’s favorite sparkling wine. Along the way, our family has had a bit of luck, made many lifetime friends, and opened a lot of wine. We hope you get a chance to enjoy our portfolio of wines chosen from preeminent wine regions around the globe. ¡ Salud ! To contact one of our U.S. distributors or to learn more about our wines, visit www.freixenetusa.com.
©2010 Freixenet U.S.A. Inc., Sonoma, CA. Freixenet is a registered trademark.
Thanks for your support! Freixenet USA Wines available from Odom-Southern Holdings and Subjobber Distributor partners. For information or to place an order, Please Call 800-767-6366