WA S H I N GTO N
RESTAURANT MEGA
August 2011
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TRENDS SPECIAL SUMMER ISSUE
Coping with rising
FOOD PRICES
Technology keeps your business up to speed IN DEMAND:
The gluten-free experience
Culinary cravings:
Trends to watch
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Features PASS IT ON
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Coping with rising food prices Natural disasters, climbing gas prices and cold weather have taken a toll on food prices this year. What are restaurants doing to cope?
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Technology keeps your business up to speed Restaurants have access to a whole slate of technological resources designed to keep business running more efficiently and profitably than ever before. Find out what’s available for your restaurant.
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Culinary cravings Top food trends: Culinary trends in the restaurant industry are constantly changing. Find out what professional chefs from across the country are serving and how restaurants in Washington state are staying abreast of the top trends.
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In demand: The gluten-free experience Millions of Americans are gluten intolerant. Has your restaurant considered how to best meet their needs? It’s easier and more important than you may realize.
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Other stories
WA S H I N GTO N
RESTAURANT MEGA
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SPECIAL SUMMER ISSUE
Coping with rising
FOOD PRICES
Technology keeps your business up to speed IN DEMAND:
The gluten-free experience
Culinary cravings:
Trends to watch
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Two sides to every ingredient
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News Briefs
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NRA leads the charge on healthy kids meals
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New ideas emerge as Washington state’s liquor landscape evolves
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Restaurant trends by the numbers
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One operator’s health care learning curve
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Training: The trend that sustains this industry
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Social networking “dos” and “don’ts” for employers
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Calendar/New Members
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Marketplace
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Ask the Expert: Manage the back door to manage product cost
August 2011
TRENDS
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On the cover Trends are the driving force behind the restaurant industry. Find out what 14 restaurants are serving, what customers are 16 ordering and whether your business is up to speed.
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EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor Lisa Ellefson, Art Director WRA BOARD OF DIRECTORS Bret Stewart, President Center Twist Jim Rowe, Vice Chair Consolidated Restaurants Robert Bonina, Secretary/Treasurer Washington Athletic Club Steve Simmons, Past Chair S & S Hospitality, Inc. Naja Hogander, WRAEF President Daniel’s Catering 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 Member Info & Resources Lyle Hildahl Director of Education Victoria Olson Director of Business Development
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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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Two sides to every ingredient By Lex Nepomuceno, Executive Editor “Megatrends” author John Naisbitt once stated, “Trends, like horses, are easier to ride in the direction they are going.” This statement resonates especially in the restaurant industry where the line between profitability and failure is incredibly thin. The focus of this month’s magazine is food trends, both from the consumer side and the business side. From the business side, we examine how food prices are affected. In “As Food Prices Rise, Restaurants Seek Creative Solutions,” staff writer Shawn Sullivan illustrates how the restaurant industry is responding to price pressures with creative strategies. On the other side of food trends, managing editor Heather Donahoe writes about the consumer demands for particular types of food dishes in “Top Food Trends: What we’re serving, What customers ordering.” The article delves into the National Restaurant Association’s annual survey of 1,500 chefs and what the industry is doing to stay on top of menu trends. “The annual ‘What’s Hot’ chef survey is one of the industry’s most anticipated and quoted culinary forecasts, largely due to the credibility of its respondents — professional chefs that work in some of the nation’s finest dining establishments and educate the next generation of chefs in culinary institutions,” Hudson Riehle, senior vice president of Research and Knowledge Group for the National Restaurant Association. “The top trends identified by these culinary professionals for 2011 are reflecting larger societal trends, underscoring that American diners are becoming more and more interested in what’s on their plate. Sustainability and nutrition are becoming key themes in our nation’s nearly one million restaurants.” Other topics covered in this issue include the growing momentum in gluten-free foods, emerging technologies affecting restaurants and the need to emphasize healthy kids meals. Trends play a major role in the well-being of an industry, but can also have profound effects on the health of a single store location. The profitability of restaurants is getting squeezed more and more every day. Bottom lines continue to get pressured as costs and competition increase. With an overall economic impact of $1.7 trillion and 12.8 million employees, the restaurant industry plays a major role in helping the US climb out of its recession. It is vital for entry level restaurant operators to understand and be prepared for likely developments in consumer behaviors, emerging technologies and food trends. Hopefully, this issue of Washington Restaurant Magazine will help operators prepare for challenges and opportunities that lie ahead. Want to provide your input on upcoming trends? Be sure to fill out the Washington Restaurant Industry Tracking Survey (WRITS) at http://wra.cc/writs2011.
Primary Source of Information | News Briefs
New growler law goes into effect As of late July, spirits, beer and wine restaurant licensees can now offer “growlers” or half-gallon sized containers of tap beer to-go. Licensees must obtain a “Kegs To-Go” endorsement before selling kegs or growlers for off-premise consumption. If you do not already have the endorsement, you can apply for one with the Liquor Control Board and should be good to go in 30-45 days. This added activity for licensees was the result of legislation passed this year, the Alcohol Omnibus Act (SB 5788), which also removes restrictions on the number of events private clubs can hold, and allows for drink mixer manufacturers to sample their product with liquor at events. Resolution to extend nightlife service hours approved unanimously Though it won’t take effect until next year, a resolution to extend hours for bars and restaurants was unanimously approved by the Seattle City Council in late July. If this component of the Nightlife Initiative is approved by the Washington State Liquor Control Board (LCB), it will help businesses and law enforcement Yes on I-1183 makes history! Recordbreaking response in 21 days In July, the Yes on I-1183 coalition delivered 354,398 signatures to the Secretary of State’s office – far and above the 241,000 signatures needed to qualify for the November ballot. The initiative cleared the courts on June 17, leaving only 21 days to collect voter signatures to qualify for the ballot. Consequently, the signature gathering efforts of the Yes on I-1183 coalition made history today by being the shortest amount of time an initiative has ever qualified for the ballot. “Initiative 1183 includes substantial improvements on privatization measures proposed last year,” said the WRA’s Bruce Beckett. “The initiative will allow only a limited number of grocery stores and retail stores to sell liquor, with the approval of the state Liquor Control Board and with input from local communities. It prohibits liquor sales at gas stations and small convenience stores, and it provides significantly more revenue to state and local governments than the current system—while continuing to strictly regulate liquor sales.”
Longtime legislative expert and industry friend, Vito Chiechi dies The WRA was saddened to learn about the July 26 death of Vito Chiechi, a dynamic figure in Washington state politics for decades. He was a former state House chief clerk, a government affairs expert and leader in the Recreational Gaming Association. He had a profound impact on state politics for more than 40 years. Vito’s knowledge and presence in Olympia will be missed. He was 86. The WRA remembers friend and culinary educator, Dr. Thomas Mayburry Dr. Thomas Mayburry, a professor in the hospitality management department at South Seattle Community College, died July 7 in Ireland. Dr. Mayburry had been a longtime restaurant operator, business advocate, educator and industry supporter. Dr. Mayburry’s death is a significant loss to those in the region’s restaurant community who knew and worked with him. He was 59. Does your legislator support this industry? The online version WA S H I N GTO N of WRA’s annual voting record is The live! Find out how Formerly L egislative Re The Front Burner legislators voted on view important WRA legislation during the 2011 regular and special sessions of the Legislature. Voting records can be useful tools in understanding how lawmakers vote on specific issues and their tendencies in some general areas (e.g. – business, environment, labor, etc.). Is your elected official supportive of your hard work? http:// wra.cc/2011votingrecord
RESTAURANT July 2011
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New debit card swipe fees rules help many restaurants improve bottom line Last month, the Federal Reserve announced it would cap debit card “swipe fees” at 21 cents per transaction. Although the cap is less than the average 44 cents merchants pay for debit charges today, it is a significant increase from the 12-cent cap the Federal Reserve proposed last December. The Federal Reserve’s decision will take effect Oct. 1. The regulation will give many restaurants some financial relief because it limits what bank card companies can charge merchants, although there will be little, if any, immediate savings for some segments of the industry.
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Industry Outlook | WRA President & CEO
NRA leads the charge on healthy kids meals When I read the national headlines last month about the NRA’s “Kids Live Well” program, which focuses on expanding healthy options for kids in restaurants, I had just two words for Dawn Sweeney, the National Restaurant Association’s President and CEO: Thank you. Thank you to the NRA for leading on the industry’s response to childhood obesity. The issue is mammoth (no pun intended). The health risks to our kids, the health costs to our community and the potential impact to our industry are very serious if this issue gets on the wrong track. The issue of childhood obesity has reached the national stage and our industry in a big way. For the past year, the issue has had the focus of the White House, as First Lady Michelle Obama has been very public with her concerns around the trend of childhood obesity. The First Lady, while complimentary of existing efforts, has been very direct with the restaurant industry in challenging us to address the issue. The restaurant industry needed to demonstrate to the public that we are serious in our efforts to improve nutrition on our menus. “Kids LiveWell” gives us that vehicle. 15,000 restaurant locations agreed, joining the program the first day of the launch, including national brands such as Outback, Burger King, Denny’s, I-HOP, Chili’s and Washington’s own Burgerville. While the large number of initial joiners shocked me, it probably shouldn’t have. We know that restaurants are focusing on healthier menus. Last fall’s annual NRA & American Chefs Federation Survey of 1,500 chefs on “What’s Hot” revealed that seven of the top ten hottest culinary trends were health related, including “Nutritionally balanced children’s dishes” at number four on the list. So, what is “Kids LiveWell”?
Anthony Anton, president and CEO
The NRA and its partner, Healthy Dining, launched the program to help parents and children select healthful menu options when dining out. Restaurants that participate in the voluntary program commit to offering healthful meal items for children, with a particular focus on increasing fruits and vegetables, lean protein, whole grains and low-fat dairy, while limiting unhealthy fats, sugars and sodium. The program is intended to benefit both restaurants and guests. Participating restaurants get third-party verification and promotion materials for qualified meals and individual meal items. Parents and caretakers get accurate information to help them make informed decision about their child’s meal. What does a restaurant need to do in the program? Restaurants that join Kids LiveWell agree to offer and promote a selection of items that meet qualifying nutrition criteria based on leading health organizations’ scientific recommendations, including the 2010 USDA Dietary Guidelines. Healthy Dining’s team of registered dietitians has worked with participating restaurants to identify and validate the menu choices that meet the Kids LiveWell criteria. Restaurants participating in the Kids LiveWell program must:
Offer at least one full children’s menu meal (an entrée, side and beverage) that is 600 calories or less; contains two or more servings of fruit, vegetables, whole grains, lean protein and/or low-fat dairy; and limits sodium, fats and sugar. Offer at least one other individual item that has 200 calories or less, with limits on fats, sugars and sodium and contains a serving of fruit, vegetables, whole grains, lean protein and/or low-fat dairy; and limits sodium, fats and sugar. Display or make available upon request the nutrition profile of the healthful menu options. Promote/indentify the healthful menu options.
For information on joining Kids LiveWell or to tell the NRA thank you for leading the industry, e-mail Joy DuBost at the NRA at jdubost@restaurant.org.
August 2011 | 9
POLITICAL REPRESENTATION
New ideas emerge as Washington state’s liquor landscape evolves WRA staff reports
Early in July, the Yes on I-1183 coalition delivered 354,401 petition signatures to the Secretary of State’s office—far and above the 241,000 signatures needed to qualify for the November ballot. Initiative 1183 proposes a plan for privatizing liquor distribution and sales in Washington state. In the end, the Yes on 1183’s 21-day signature gathering campaign made history by qualifying an initiative for the ballot in the shortest amount of time on record. The Secretary of State’s office began certifying signatures then, and on Wednesday, July 27, announced the initiative will be on the ballot.
Costco, Trader Joe’s, the Northwest Grocery Association (representing more than 400 grocery stores in Washington), the Washington Restaurant Association (whose members include more than 13,000 restaurants in Washington) and the Washington Retail Association.
“We’re very pleased and grateful for the strong show of support from the hundreds of thousands of Washington voters who signed petitions to place I-1183 on the November ballot,” said Bruce Beckett, WRA government affairs director. “There is clearly a recognition among voters that it’s time to bring Washington into the 21st century by allowing consumers in our state to shop for liquor at local retail stores, like they can in most other states.”
Corkage fee waiver
I-1183 includes substantial improvements on the privatization measures proposed last year in Initiative 1100. The I-1183 will allow only a limited number of grocery stores and retail stores to sell liquor, with the approval of the state Liquor Control Board and with input from local communities. It prohibits liquor sales at gas stations and small convenience stores, and it provides significantly more revenue to state and local governments than the current system —while continuing to strictly regulate liquor sales. I-1183 is supported by a broad coalition of retailers, grocery stores, restaurants and other businesses whose members include
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New state liquor laws changing the way licensees serve customers This year’s session of the legislature yielded some important changes to the state’s liquor laws—changes that will enhance liquor licensees’ ability to serve customers. The WRA government affairs team worked proactively and responsively to craft legislation that communicated the unique needs of the state’s licensees. Here is an overview of the new laws, which took effect in July.
Last year, Jar Arcand, WRA member and owner of Santiago’s Gourmet Mexican in Yakima, created a program that partnered with local wineries. He waived corkage fees if customers brought in a bottle of wine from a local winery, and had proof they had purchased it that day. The program encouraged those in town visiting wineries to eat at his restaurant and generated additional revenue in his local economy. In response, a Liquor Control Board enforcement agent issued a cease-and-desist letter, explaining that the copromotion violated tied house laws. Arcand subsequently reached out to his lawmakers, Rep. Charles Ross (R-20) and Sen. Jim Honeyford (R-15), and HB 1227 was drafted. The bill passed handily and serves as a great example of how restaurateurs can achieve remarkable results when engaging in the political process.
Alcohol Omnibus Bill offers relief from regulation Over the last few years, the WRA and other stakeholders representing liquor interests, along with the Liquor Control Board, worked to make technical and policy changes to Washington state’s Prohibition-era laws and regulations that are an obstacle to conducting business. When issues are non-controversial among the group, and the Liquor Control Board agrees there are no public safety issues at risk, they are rolled into an omnibus bill. Since the bill had broad consensus and agency approval, it tends to move quickly through the legislative process.
The WRA’s Bruce Beckett talks with reporters when the Yes on I-1183 Coalition delivered 354,401 petition signatures to the Secretary of State’s office.
Restaurants gain ability to sell “growlers” Until this year, only tavern licensees and beer and wine restaurants licensees had the option to sell growlers—or half gallon sized tap beer for off-premise consumption. While spirits, beer and wine restaurant licensees can sell kegs to-go, the option to add growlers was simply just never pursued until this year. This year’s alcohol omnibus bill is the provision that now allows spirits, beer and wine licensees under the keg endorsement, to sell growlers to-go.
Private clubs will decide member benefits Until now, private club licensees have been restricted in the number of “non-member” events they were permitted to hold—40 per year. For several of the WRA’s private club licensees, a non-member event could be interpreted as a club member’s wedding, a club member hosting a dinner or luncheon, or holding an event for a charity where non-members are present. This restriction posed a potential threat to the way these clubs operated, as well as
to the communities and organizations that some of these events benefit. The omnibus bill removed this restriction, giving private club licensees greater latitude to serve their members and surrounding communities.
Vendors able to sample mixers at trade shows Until this year’s liquor omnibus bill, a special license did not exist for drink mixer manufacturers, and the Liquor Control Board simply did not have the authority to grant a license for these businesses to sample their products with liquor. This posed a problem for drink mixer companies that wished to showcase their products at our Northwest Foodservice Show, as well as to restaurateurs who wanted to offer final-product drinks to customers. Thanks to the provisions of the liquor omnibus bill, mixer sampling with liquor is now permitted.
August 2011 | 11
As food prices rise, restaurants seek creative solutions
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By Shawn Sullivan, WRA staff writer
In the last six months, Washington restaurant owners faced steadily increasing food prices. Price increases combined with declining numbers of customers put these restaurants in a peculiar position. Despite increased costs, demand for low-priced restaurant options continues to rise. These challenges require creative solutions to keep menus and ingredients intact. According to the National Restaurant Association (NRA) 2011 Restaurant Industry Forecast, “Food costs are one of the most important line items for restaurants, representing about 33 cents of every dollar in restaurant sales. As a result, fluctuations in food costs significantly impact restaurants’ bottom lines.” Increasing food costs demonstrate the existence and influence of a global agricultural economy. Typical factors include rising gas prices, use of corn crops to produce alternative fuel and in Washington state, significant increases in traffic delays for food delivery. More unpredictable causes of price increases are the result of world events over the past year. A drought in Russia, massive floods in Australia’s fertile Queensland area, freezing weather in the U.S. and Mexico; and rising consumption among the fast-growing middle class in China and India continues to drive up demand. “There is only so much product put in the ground,” Food Services of America (FSA) CEO Doug Minert said. “When some of those products don’t make it to market because they have been destroyed, the guy willing to pay more gets them.” With the price of produce increasing by nine percent in 2012, government subsidies were reduced or eliminated. While produce increased 9 percent in 2012, the protein market averaged more than 20 percent. In the month of June, the USDA reported commercial red meat production
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hit record levels of more than 4.2 billion pounds. Despite record levels of production, demand in China and other global markets has kept prices extremely high. So how do restaurant owners cope with these increases in food prices? By changing the way they conduct business and developing innovative ways to remain competitive. “We have not increased our prices in six years,” Federal Way Billy McHale’s General Manager Jim Boss said. Despite fewer customers and a complex menu, his business remains profitable because of his procurement strategies. “We have been creative in how we buy our supplies,” Mr. Boss said. He watches local markets and buys when prices are low, requiring him to take time away from other parts of his business. FSA also has seen its share of increased costs over the last six months, which has caused them to be proactive in helping customers succeed. They offer assistance reengineering menus and recipes, managing inventories to eliminate waste, controlling portion size and preventing excessive spoilage. “I feel for the operators because they are trying to increase foot traffic, but increased costs put them in a strange position,” Minert said. “The big challenge is to understand where you are spending your money. Pay attention to labor and look at what ingredients are going into your menu.” FSA advises restaurateurs to inspect their menus every month as opposed to every six months. They also suggest while prices are high, restaurants should not cut back on ingredients. “Please, really understand all of your costs, and make sure when pricing (your menu), you account for all of them,” Minert said. “No one wants to see (restaurateurs) go out of business.” What can we expect for the remainder of 2011? “My crystal ball is no clearer than anyone else’s,” Minert said. “Most
of the stuff out there is accounted for, but where we go in 2012 will depend on Mother Nature.” As long as global demand increases while the supply remains constricted, food prices will continue to rise.
direction…they also provide evidence that fears of a double-dip recession are overblown.”
It is up to owners and managers to innovate and change their cost structures. The restaurant industry is one of the most competitive in the world. Trying to maintain low menu prices, while the cost of ingredients continues to rise remains a challenge for the industry.
The forecast suggests restaurateurs should be cautiously optimistic and predicts our economy may return to prerecession levels by 2013. Despite these predictions, prices for protein continue to increase. Price trends will continue to put pressure on restaurants to increase menu prices, or find even more ways to cut costs. Trying to predict prices is challenging, but finding creative ways to reduce costs can be relatively easy. Owners and managers have an opportunity to innovate, change and adapt to survive in this new economy. Working diligently on cost-cutting strategies without sacrificing food quality should keep the doors open.
According to the NRA’s forecast, “The private sector added jobs in each month of 2010, for a total of more than 1.3 million jobs. Although monthly growth averaging about 112,000 jobs doesn’t define a robust recovery, the steady gains indicate the economy is heading in the right
Top Challenges Expected By Fullservice Operators In 2011 30% 28%
25%
25% 24% 23%
24% 24%
20%
15% 13%
10%
9%
9% 8% 6%
6%
6% 5%
5%
5%
5%
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0% Building and Maintaining Sales Volume
The Economy
Food Costs
Government
Family Dining Casual Dining Fine Dining
Opera ng Costs
Casual Dining
Compe on
Recrui ng and Retaining Employees
Fine Dining
Source: Na onal Restaurant Associa on, Fullservice Operator Survey, 2010
August 2011 | 13
Emerging technologies enhance restaurant operations
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By Lex Nepomuceno, Executive Editor
iPads and other tablet systems Before the iPad, most consumers and businesses had a tough time grappling the significance and use a tablet computer may have for them. After the iPad, tablets have become the latest buzz in an otherwise dull computing niche. So many efforts to streamline the acceptance of tablets in the past have either failed quickly or died a slow death. However, the iPad did for tablets what the iPhone did for cell phones—it completely reinvigorated and redefined the market in a way that appeals to your regular consumer. It is not uncommon to go to the airport and see a 5-yearold child playing a game on an iPad, while a grandparent uses the iPad to surf the web or check email. Because of its simplicity, functionality and broad reach, the iPad continues to control more than 90 percent of the tablet market.
A term often used by technologists when describing the development of technology is “Moore’s Law,” which asserts that technology doubles every two years. More recently, this concept has been compressed to 18 months. Separately, restaurant owners often find themselves braving through 10+ year-old equipment, antiquated point-of-sale systems and outdated software. Despite the apparent disconnect, restaurants are set to be a major beneficiary of advancements in several emerging technologies.
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What does this mean for restaurants? The imminent ubiquity of tablets has prompted some restaurants to use iPads in place of regular menus. Aside from the “cool” factor, this allows customers to customize their dishes accurately and sync with restaurant staff to accommodate any number of requests. Moreover, tablets provide several operational implications. The devices can be used to manage inventory, deal with customer feedback and integrate with point-of-sale solutions. The possibilities are almost endless for the restaurant industry because of tablets’ portability and value over traditional laptops. Mobile applications Within five years, the majority of Internet traffic will come from mobile devices. The proliferation of smartphone and the expansion of 4G technologies have made Internet access almost ubiquitous. Operators are finding that many of their customers are also heavy smartphone users. In fact, 72 percent of the “millennials” demographic (defined as ages 16-24 for this survey) expressed serious
interest in receiving locationbased restaurant offers on their mobile phones, according to a ParTech survey. Because of the growing reliance on smartphones for accessing web-based content, expect the trend of restaurantbased mobile applications to grow. Custom applications allow restaurants to get in front of their customers in ways that best represent their establishments. This also allows restaurants to make the most of the smaller screens on mobile devices. Couponing and “offers” platforms According to a Partech survey, 52 percent of respondents said they have chosen a restaurant solely because of an online advertisement or email offer. Moreover, 62 percent of respondents said they “might consider” or “seriously consider” changing their order based on a specific discount, combo or promotional offer made during the creation of a restaurant order. Consequently, the traditional marketing “bread-and-butter” for restaurants has slowly dwindled in effectiveness and use. Direct mail, Yellow Pages and even television have given way to email, Facebook and YouTube. Daily couponing platforms such as Groupon and Living Social will become the new consumer de facto for discounting. Even though these new platforms may have a high “cost” to most operators, they do bring customers in the door. Moreover, these types of coupon redemptions allow operators to gather more data on redemption patterns than ever before. The “old” way through a Val-Pak offered imprecise analytics, while almost every form of electronic discounting offers quite precise statistics. “Cloud” integration and efficiency tools What exactly is the “cloud”? It is basically stands for Internet based computing. This essentially means that the core functionalities of a program are hosted from a different location via the Internet. This can also include the housing and/or syncing of related data; so if you drop your laptop in a swimming pool, at least you have
the comfort of knowing you have your data backed-up somewhere else and it can be easily restored. How can this help your business? Inexpensive services such as Google Apps, allow cost-conscious restaurateurs to have a full office suite in place of a $400+ Microsoft Office license. Businesses can also set up generous email accounts with their company’s domain name for free (up to 10 users). Through these types of cloud services, back-up issues and collaboration with other users become less of an issue because everything is synced on the Internet. Small businesses have just touched the tip of the iceberg when it comes to working in the cloud. Within the next three to five years, an entire restaurant’s back office and kitchen management operations can be run completely by cloud-based applications. Other technologies worth mentioning As restaurants strive for more efficiencies and cost controls, technologies around the maintenance and preparation of food should see a steady ascension. Products such as dual-sided grills, impingement ovens and holding equipment allow operators to control waste and produce menu items more effectively. Expect kiosks to creep into the scene. According to InfoAmerica Transactional Kiosks, self-service kiosks save operators anywhere from 15 to 50 hours per week in labor. Kiosks allow restaurant operations to get customers in and out of the doors faster. Yes, Moore’s Law is alive and well within the restaurant industry. Does an establishment always have to keep up with the Joneses? No, but at least be aware of everything that competitors are taking advantage of, and apply those resources that make operational and economic sense. Be sure to keep tabs on technologies affecting the restaurant industry at wrahome.com. The site is updated every day with the latest industry news and information. August 2011 | 15
Top Food Trends What we’re serving What customers are ordering By Heather Donahoe, Washington Restaurant Magazine managing editor
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very year or so, the culinary landscape shifts a bit, making room for new ideas or the reintroduction of long-forgotten favorites. While consumers once took a passive approach to dining—just ordering what looked most appealing and eating what was served to them—they are now more engaged than ever with culinary trends and the latest cooking methods. This foodie culture is fueled largely by the proliferation culinary publications, food blogs, the popularity of food-centric TV shows and a country of consumers who are increasingly interested in knowing the origin of their food. These are exciting times to be in the foodservice business, because consumers are excited to be a part of what’s happening—they can’t wait to see what restaurants will dish up next. The National Restaurant Association each year surveys professional chefs, (all members of the American Culinary Federation) on which foods, beverages, cuisines and culinary themes will be hot trends on restaurant menus. The “What’s Hot” in 2011 survey was conducted among more than 1,500 chefs in the fall of 2010. Here is a look at the number one trends in several of the categories, along with some Washington-specific perspective. Learn how this state’s chefs are staying on top of the trends and how customers are responding. You might even find an idea or two to share with your own eager customers.
Appetizers Ethnic/street-food inspired appetizers #1 Trend While artichoke dip and shrimp cocktail will probably always be crowd favorites, some restaurants are looking to city sidewalks and foreign countries for appetizer inspiration. As the first exposure a customer has to a restaurant’s food, appetizers can provide the perfect opportunity to showcase the chef’s creativity. At Walla Walla’s Whitehouse-Crawford Restaurant, the Vietnamese style deep-fried calamari stands out on the appetizer 16 | www.WRAhome.com
menu—a standout option with ethnic flair, something you might not see on just any menu. Ethnic and street-food inspired appetizers such as dim sum, taquitos, hummus and tempura are a great way to shake up expectations and keep customers curious about what the kitchen will offer up next.
Sides/starches Black/forbidden rice #1 Trend Sounds pretty mysterious, doesn’t it? Is it really “forbidden”? In ancient China, black rice was considered the finest grain and was served only to the emperor. Therefore, it sometimes is called “forbidden rice,” as it was off limits for the general public. But that was then. Today, black rice is one of the hottest emerging culinary trends in restaurants. High in fiber, antioxidants and other nutrients, black rice is similar in flavor to brown rice and turns deep purple when cooked. Chef Jason Rex, from Spokane’s Scratch Restaurant & Lounge, features it on his menu, and customers can’t seem to get enough of this hearty grain. “They’ve gone crazy over it,” Rex said. “They even try to buy it off of us. I think if I ever took it off the menu, I’d have a mutiny on my hands.”
Breakfast/brunch Ethnic-inspired dishes #1 Trend Let’s face it. The first meal of the day is often the most predictable. Any given breakfast or brunch menu features variations of eggs benedict, french toast and omelets—all delicious options; but an emerging trend has chefs all over the country giving standard morning fare an international punch of
unexpected flavor. William Mueller, owner and chef at Tacoma’s popular Babblin’ Babs Bistro, is well known for his innovative breakfast options infused with spices from around the globe. One of his many unique breakfast creations is the West Indies Lamb, which is flavored with sweet raisins, mango, peppers, finely chopped walnuts, and perfumed with Tahitian vanilla and West Indies spices. The lamb is served with potato hash, fresh baked naan, custard egg and an Indian style tomato. “People come here for breakfast because it’s different,” Mueller explains. “Customers are excited to try something aside from what they typically see on a brunch menu. This is the type of food people respond to.”
Desserts Artisan/house-made #1 Trend ice cream Since the earliest forms of ice cream first surfaced in 4th century Rome, people have long been drawn to the refreshing sweet treat. And while ice cream of nearly any variety is a tasty treat, the house-made version is particularly delightful. Café Campagne in Seattle offers the frozen house-made confection on its dessert menu, alone in a dish or accompanying the red wine-poached pear clafoutis. Café Campagne is just one of many restaurants across the country that is embracing the artisan ice cream craze. With flavors ranging from green tea to cardamom, this trend appeals to consumers who are increasingly anxious to break the chocolate-and-vanilla mold.
Main dishes Locally #1 Trend sourced meats and seafood While this is a top national trend for 2011, it has largely been a way of life in Washington state restaurants for many years. With local access to much of the world’s best seafood and farm-raised beef, Washington’s chefs have a geographical advantage when it comes to offering locally sourced animal protein on their menus. La Boucherie, Emmer and Rye, Duke’s Chowder House and 50 North are just several names from an extensive list of Seattle restaurants that source all of their meat and seafood locally.
Kids’ meals Nutritionally balanced children’s dishes #1 Trend When the First Lady of any presidential administration takes up a cause, it tends to get quite a bit of attention. Accordingly, Michelle Obama’s concern over childhood obesity has ignited a debate over what children should be eating and how to encourage healthier choices among the country’s youth. Impressively, restaurants have taken a proactive approach on the issue, offering healthier alternatives to the standard cheeseburger and chicken tender lineup. While many chain fast food restaurants have adapted their menus, small independent restaurants also are offering healthier options for their youngest customers. Julia’s Restaurant in Seattle’s Wallingford neighborhood gives children a variety of goodfor-you choices, including a chicken, rice and veggie dish or several tasty side dish substitutions. “It’s pretty common for a parent to choose fruit instead of fries or wheat bread instead of white for their child,” said Linden Klawitter, a server at Julia’s. “We definitely see parents and kids looking for those options.”
Produce Locally grown produce #1 Trend More and more, Americans are placing top priority on produce that has been farmed locally. Thanks to Washington state’s agricultural bounty, restaurants here are able to offer customers a wide variety of produce grown within a few miles of their front door. The Mark Restaurant in Olympia uses predominantly organic ingredients that are almost always locally sourced. In 2009, The Mark became the only restaurant certified organic by Washington state. Olympia resident and culinary enthusiast, Jenny Street, said she prefers dining at restaurants that offer locally sourced produce. “Given the extra time it has to mature naturally before it gets picked and hauled away, local food just tastes better,” Street said. “It helps restaurants’ seasonal specials come alive and really showcases their flavor.” Want to see the full results of the NRA’s 2011 “What’s Hot” survey? Go to www.restaurant.org/foodtrends, and download a copy. August 2011 | 17
Restaurant trends by the numbers Consumers Regulars dish on why they like to eat out Proportion of adults who agree with the following statements
All adults
Frequent fullservice customers
Frequent quickservice restaurants
Frequent offpremises dinner customers
You enjoy going to restaurants
88%
97%
93%
91%
Going out to a restaurant with family and/or friends gives you an opportunity to socialize and is a better way for you to make use of your leisure time rathar than cooking and cleaning up
74%
83%
81%
80%
Restaurants are an essential part of your lifestyle
43%
73%
58%
64%
Purchasing meals from restaurants, take-out and delivery places makes you more productive in your dayto-day life
37%
43%
58%
60%
Purchasing take-out food is essential to the way you live
27%
35%
45%
58%
Source: National Restaurant Association, National Household Survey, 2010
Restaurant operators to “friend� facebook
Percentage of restaurateurs likely to use the following social-media tools in the next two years Family dining
Casual dining
Fine dining
Quickservice
74%
80%
84%
80%
Online review sites, e.g. Yelp
61%
62%
70%
56%
51%
60%
63%
69%
Restaurant blog
45%
44%
62%
51%
Phone apps like Urban Spoon
37%
47%
54%
47%
YouTube or other video-sharing site
44%
40%
45%
50%
Text messaging
38%
46%
36%
64%
Flickr or other photo-sharing site
39%
32%
42%
41%
Source: National Restaurant Association, Restaurant Operator Survey, 2010
Patrons tighten the purse strings
Proportion of adults (by household income) who feel they should curtail spending due to uncertain economy
100 80
77%
83%
73%
83%
84% 70%
60 40 20 0
All adults
Less than $35k
$35k to $49.9k
$50k to $74.9k
$75k to $99.99k
$100k or more
Source: National Restaurant Association, National Household Survey, 2010
18 | www.WRAhome.com
Economic outlook 2011 commodity price outlook
Projected high/low growth rates for primary market prices 2009
2010
2011
Beef
-10%
14%
1% to 9%
Pork
-14%
33%
-3% to 4%
Broilers
-3%
7%
-3% to 6%
Turkeys
-3%
14%
-4% to 4%
Eggs
-20%
3%
-2% to -8%
Milk
-30%
27%
-2% to 2%
Cheddar
-32%
17%
1% to 6%
Butter
-16%
41%
-6% to -13%
Source: U.S. Department of Agriculture, December 2010 projections
Full service
The final tally
Bumps in the road
Top challenges expected by fullservice operators in 2011 Family dining
Casual dining
Fine dining
Building and maintaining sales volume
24%
23%
28%
The economy
25%
24%
24%
Food costs
9%
13%
6%
Government
9%
6%
6%
Operating costs
5%
5%
8%
Competition
3%
4%
5%
Recruiting and retaining employees
5%
3%
2%
Fullservice operators’ reporting of their business in 2010 50%
50
40
Source: National Restaurant Association, Fullservice Operator Survey, 2010
30
38% 33% 29%
36% 31%
32%
32%
18%
20
10
0
Family dining Casual dining
Fine dining
Better than 2009
Quick service
About the same as 2009 Down from 2009
Quick service quick to respond
Customers’ expectations increased in the following areas compared with two years ago Value received for price paid
93%
Quality of the complete restaurant experience
80%
Quality of service
80%
Food quality
79%
Speed of service
66%
Choice of healthful options
62%
Choice of portion sizes
40%
Source: National Restaurant Association, Quickservice Operator Survey, 2010
August 2011 | 19
One operator’s health care learning curve By Restaurant Association staff
Larry Schuler is a fourth-generation restaurateur whose family-owned business was started in Marshall, Michigan over a century ago. He was planning to expand, perhaps opening a new location, or offering new employee benefits. Now, forced to negotiate a byzantine labyrinth of federal health care regulations, those plans and the new jobs they would have created are on hold. Over the last year or so, Schuler has become a student of the mammoth health care reform law that was signed into law in 2010. He knows how it will affect his business and its employees, but not all restaurant owners have been paying as much attention. The decisions on Schuler’s list are daunting: How many people can I afford to employ? How many can I help insure? How can I absorb the new costs of health care coverage? Should I simply not offer health care and instead pay the federal penalty? How can I grow my business amid this uncertainty? 20 | www.WRAhome.com
“Growth and success in the restaurant industry means opening more restaurants and locations, which in turn means jobs in our communities,” Schuler said in recent testimony before Congress. “For some time, I have been considering several options to expand our businesses, including adding a management contract and another restaurant location. Up until recently, when I closely examined the impact of this new law on my businesses, I had not taken into account the additional costs and burdens this law imposes. I am now reexamining these expansion options and may not take on that additional growth.” Schuler considers himself a small businessman, but he is considered a large employer under the law. The law requires “large applicable employers” to contend with a series of provisions of the law including a mandate that they provide healthcare coverage for their workers or face penalties. Large employers are those with 50 or more full-time-equivalent employees including full-time salaried and hourly workers and counting part-timers based on the hours they work. “We are very close to the 50 full-time equivalent workers threshold,” Schuler said. “How many hours our part-time employees work will determine if we are a ‘large applicable employer’ or not.” In 2010, on average, Schuler’s flagship restaurant employed 33 full-time employees and 26 full-time equivalents working part-time hours, for a total of 59 FTEs, which puts his business over the threshold that requires him to offer coverage to his full-timers or face penalties. Under the law he will be required to offer healthcare coverage to the 33 full-timers, plus five seasonal full-time employees. If all 38 employees opt into the coverage, Schuler would see a 282 percent cost increase in the health care premiums he currently pays. Today, Schuler’s business insures seven employees at a cost of $2,067 monthly, $24,804 annually. This would jump to $7,892 per month or $94,704 per year, if all 38 full-time employees opted into the coverage plan. As part of his analysis, Schuler also calculated the cost of eliminating the coverage he already provides and instead paying the penalties included in the law. This, he said, would be a drastic step that would harm his business’s
ability to attract and retain employees. If Schuler chose not to offer coverage at all, his penalties would average $1,375 monthly, $16,500 annually. “This is not something we want to do, as we are very proud of the fact that we have offered full medical coverage to our employees for a long time,” he said. “Not only is it the right thing to do, but in such a competitive industry, where good employees who stay with the company for a long time are rare, offering coverage like we have does create a competitive advantage for a business like mine.” Schuler says he’d like to continue to grow his business, but lingering uncertainty about the impacts of the law continues to give him pause.
“The uncertainty of the regulatory process and the many rules that are yet to be clarified and fully defined worry me,” he said. “The cost increase estimates we have done will only increase as we know more about this law. As a business owner, you plan several years in advance. Thus, 2014, when the most serious employer requirements take effect, is not that far away.” To support restaurant employers, the National Restaurant Association (NRA) and Washington Restaurant Association have collaborated to develop a new resource to help better understand the implication of health care reform. Visit the Health Care Knowledge Center at www.restaurant.org/ healthcare to learn more about the law and what it means to your business.
August 2011 | 21
Training: The trend that sustains this industry By Lyle Hildahl, WRA Education Foundation director
Many of today’s trends in the foodservice industry focus heavily on youth and education—obesity, nutrition, sustainability, buying local and social media, to name a few. As you’ve seen already, this month’s magazine covers many of those issues. At the heart of each of these trends lies a simple necessity: education. Without it, our industry’s current and future leaders will never be able to perform to their full potential.
Lyle Hildahl, WRA Education Foundation director Overall, WRA Education Foundation training programs on workplace safety, advanced food safety and serving alcohol responsively, provide education that enhances the continued success of our workforce. We are committed to keeping industry students and professionals ahead of the learning curve and on top of the latest information. Our allied members have been very supportive in providing industry experts on trends to teach in the classroom, as well as classrooms for our members to use for training on the latest trends. Food Services of America and Sysco have invited students to participate in their food shows, and Bob Mauer, Bargreen Ellingson’s corporate chef, teaches ProStart students about equipment trends in the company’s Tacoma kitchen. These are just a few of the examples that reflect the dedication of our industry to playing an instrumental role in training our future leaders on the trends that impact our business.
The WRA Education Foundation’s ProStart program prepares our leaders to embrace the trends that shape the foodservice industry now and in the future. In keeping up to speed with the evolution of the industry, the new ProStart curriculum has expanded its coverage on nutrition and added chapters on sustainability, global cuisines and the greening of foodservice. Culinary and management mentors also have stepped up to the plate in providing demos and classes on buying local, using fresh ingredients and designing restaurants that are green and sustainable. In 2010, Oak Harbor High School’s ProStart restaurant management students designed a restaurant concept called Lunch Box—an eatery offering convenient lunches to-go, with good-for-you ingredients and good-for-theenvironment practices. The team won the state competition with this concept, demonstrating their understanding of an increasingly important trend. Personally, I’m proud to know that these are the leaders who will someday be at the helm of our industry. 22 | www.WRAhome.com
I am so grateful for this level of enthusiasm and commitment. What a difference a decade makes in the kind of education our students are getting and the partnerships that are forged with our industry. A student coming out of high school, with basic culinary foundations, knows how to write a business plan, understands food costing and runs circles around us on technology and social media. It’s a new world, but a fascinating one with better prepared youth who are driven to make a difference in this industry. I believe that’s a trend that is here to stay.
Embracing gluten-free and allergy-friendly techniques in your restaurant
PASS IT ON
By Lara Weihs, Granny LaLa’s, Inc. Gluten-free and food-allergy-conscious items are among media. Education is the key ingredient to a good dining the top 10 hottest trends on restaurant menus this year, experience for your patrons who have dietary restrictions. according to the National Restaurant Association’s annual “What’s Hot” survey. In an era of economic decline, there Every member of your staff needs to know how to address is a dramatic increase in the $2.6 the special needs of these customers. billion gluten-free food and beverage That includes your reservationist Resources industry. asking the customer if there are any Gluten Free Certification special dietary needs in the party. It Gluten Intolerance Group of North More than 3 million Americans includes the chef calling the customer America — www.gluten.net suffer from celiac disease, a digestive to discuss those needs and how best Training manual disease triggered by consumption of to meet them. It includes the host/ Food Allergy & Anaphylaxis Network gluten—a protein found in wheat, hostess acknowledging the customers’ (FAAN) — www.foodallergy.org barley and rye. While gluten-free needs by seating them in the section diets are a must for those with celiac of a server who is most knowledgeable Onsite consulting and training disease, mainstream America is about the menu and what substitutions Granny Lala’s Inc — www.grannylala.com embracing gluten-free dining as a can be made. Additionally, your kitchen or 253.961.4928 health trend. staff needs to apply advanced crossRecipes contamination avoidance techniques. Living Without — www.livingwithout.com According to the Food Allergy & Finally, creating an enjoyable gluten-and Allergic Living — www.allergicliving.com Anaphylaxis Network (FAAN), food allergen-free dining experience is best allergy—a potentially life-threatening concluded with a quick table visit from medical condition—afflicts approximately 12 million the chef and sincere invitation to return. Americans, or one out of every 25. It is estimated that more than 40 million Americans have an interest in gluten-free Gluten-free/allergy-friendly dishes are easy to prepare with a and allergy-friendly cuisine. The majority of gluten-free few simple changes: Use brown rice flour in place of regular wheat flour for consumers are also dairy-free, soy-free and egg-free. dusting/dredging. Since this market still represents the minority, do we Replace cow’s milk with unflavored rice milk for washes. really need to accommodate them? No, you have the right Exchange coconut or palm oil in place of soy oil. to refuse service to anyone; but before you choose to Dried gluten-free pasta is now very easy to find. Keep exercise that right, consider a few things first. According some on hand, but be sure to use fresh water to boil it. to the Americans with Disabilities Act, you do need to Customers understand that it will take a little longer to “make reasonable modifications in policies, practices prepare, and the wait is worth it to them. or procedures when the modifications are necessary to There is no gluten in any fresh fruits or vegetables, afford goods, services, facilities, privileges, advantages or but watch for it in pre-packaged sauces, dressings and accommodations to individuals with disabilities, unless seasoning blends. the public accommodation can demonstrate that making the modifications would fundamentally alter the nature Don’t get discouraged if it seems that your gluten-free of the goods, services, facilities, privileges, advantages or business doesn’t skyrocket as soon as you add it to the menu. accommodations.” If you start to wonder why you are going to the trouble, keep More than 80 percent of gluten- and allergen-free customers return if they feel safe and satisfied with their eating experience, according to Global Market Research Trends AllergyFree Passport. Notice this says “eating experience”… that involves more than just food. The experience a customer has includes the attitudes and awareness of the staff. There is a huge online community that communicates both good and bad experiences to each other through social
this in mind: gluten-free consumers are generally members of a party of diners, and it is the person with dietary restrictions who picks the restaurant. If you serve their needs best, you get the business of the whole party. Now, that’s an outcome any restaurateur would welcome.
August 2011 | 23
Social networking “dos” and “don’ts” for employers By Mike Brunet, Cairncross & Hempelmann Attorneys at Law
W
ith the recent explosion in popularity of social networking sites such as Facebook and Twitter (and even movies about the social networking phenomenon), employers often ask us how they can use these new tools for human resources, and how to handle the use of social networking by employees. Because information posted on social networking sites is generally viewed by employees as private even when the sites are public, this is a sensitive topic that needs to be handled with care. Here are some general guidelines: Don’t be tempted to dig too deeply into social networking sites to screen applicants. People have a tendency to post personal details on social networking sites, and there is a risk that by looking at a potential employee’s social networking page, you might discover information about the applicant that you would rather not know before making a hiring decision, such as his or her sexual orientation, religion or disabilities. Even if you decide not to hire the applicant for perfectly legitimate reasons, your discovery of information about the applicant’s legally-protected status could lead to a discrimination claim later.
Beyond risk management issues, social networking use also can significantly impact employee productivity. Creating and publishing a policy regarding social networking can lower the risks associated with employee posts and keep social networking from cutting into working time. In order to distance themselves from the content of their employees’ posts, and to minimize risk of legal responsibility for that content, many employers also require employees posting on social networking sites to include a disclaimer. Don’t act rashly if an employee violates your social networking policy. Very few courts have considered social networking issues, so there is little legal authority to guide employers dealing with them. Disciplining an employee for comments posted online could implicate free speech issues, among others. As a result, be sure to carefully analyze the situation and potential discipline before taking action. Do consider using social networking sites as an instantaneous and inexpensive way to communicate with your employees. A private Facebook page, for example, could be the source of up-to-the-minute information on events and a repository for corporate policies.
Do have a social networking policy in place. Although work is rarely the primary topic of social networking posts, employees can use the sites to discuss colleagues, supervisors and their general work life. Some employees also use social networking sites to discuss their political views or their opinion of their employer’s competitors. The vast majority of such posts are harmless, but there is a risk that they could hurt your corporate reputation, disclose your confidential information or lead to a potential defamation lawsuit action from a referenced competitor.
24 | www.WRAhome.com
These guidelines cover many of the basics on social networking for employers. However, this topic is broader and deeper than we can cover in a blog entry – please feel free to contact us with questions about your specific social networking situation, or if you need help drafting a social networking policy that fits your business. Cairncross & Hempelmann, a Seattle-based law firm, is part of the WRA’s Consulting Network. To receive a free 30-minute consultation on a legal matter, call 800.225.7166. This benefit is exclusively for WRA members.
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INDUSTRY CALENDAR
Visit www.WRAhome.com/calendar for a full list of events.
Training | Meetings | Events | August & September Events
Meetings
Aug. 16 Aug. 16
Sept. 6 Sept. 7 Sept. 13
Executive Committee Meeting Seattle Restaurant Alliance Morning Mixer Member Services Committee Meeting
Sept. 13
Spokane Chapter Meeting
Sept. 20
Finance Committee Meeting
Sept. 27
Board Development Meeting
Sept. 27
Government Affairs Commiittee Meeting
Golf FORE! Education Toasting the Finest
NEW MEMBERS Blue Spruce Saloon, Packwood Cafe Mox, Seattle Caffe Vita Coffee Roasting Co., Seattle Capitol Club, Seattle Chair 9, Deming Chaps Coffee Company & Cake Bakery, Spokane Dairy Queen Port Angeles, Port Angeles Denny’s, Western Washington Fat Moose Bar & Grill LLC, Woodland Fireside Martini & Wine Bar, Inc., Bellingham Grant House, Vancouver Hockinson Cafe At Battle Grnd, Vancouver Kimberly Cafe, Lakewood Monroe Steaks & Spirits, Monroe Original Pancake House, Bothell Panera, Western Washington Phinney Market Pub and Eatery, Seattle Reservation Outpost, Fife Seattle Union Gospel Mission, Seattle Sheraton Seattle Hotel, Seattle Summerland Enterprises, Inc., Vancouver Swiftwater Cellars, LLC, Roslyn Taco Bell, Silverdale Zip’s Drive In Colville, Colville
Brecht Pacific Publishing Ted Westby 844 11th Ave Longview, WA 98632-2402 800.225.6368 twestby49@gmail.com www.brechtpacific.com NEVER PAY for beautiful menus again! Expert graphic artists assist you in designing your menu cover to cover, PLUS a free website to match. Update your menu items and prices every nine months. All at no cost to you! With 21 years experience, Brecht Pacific is your menu resource. Call today for details! CPR4U Health and Safety LLC Tracy Castel 2937 Broadway Everett, WA 98201-3639 425.252.3239 tcastel@fsmti.com www.cpr4u.net Heartsaver firstaid and CPR training for the workplace and community. 10% discount off the published rates.
Training Aug. 24 Aug. 31 Sept. 6 Sept. 1 Sept. 8
ServSafe Alcohol Train the Trainer, Seattle ServSafe Alcohol Train the Trainer, Spokane ServSafe® Advanced Food Safety ServSafe Alcohol Train the Trainer, Yakima ServSafe Alcohol Train the Trainer, Mount Vernon Sept. 13 ServSafe® Advanced Food Safety Sept. 15 ServSafe® Advanced Food Safety
pallet rental where customers control their own inventory at a easy access commercial cold storage on their own rented pallet. Free storage for first month - up to 2 pallets per customer. Farmer’s Insurance John Moore 41 W Riverside Ave Ste 220 Spokane, WA 99201-3631 509.209.3968 jmoore@farmersagent.com www.farmersagent.com/tmontgomery We provide comprehensive insurance coverage to restaurant owners at a competitive price. Off loss preveiont, hazard control and safety recommendations. Law Office of Forrest Carlson Forrest Carlson 100 S King St Ste 400 Seattle, WA 98104-2817 206.631.9575 forrest@forrestcarlson.com www.forrestcarlson.com
NEW ALLIED MEMBERS
Doctors Express Seattle Maria Kaplan 610 1st Ave N Seattle, WA 98109-4001 2062837000 mkaplan@doctorsexpressseattle.com www.doctorsexpressseattle.com
The Law Office of Forrest Carlson provides a wide range of reasonably priced legal services, catering to the specific needs of restaurants in Washington. Free 45-minute initial consultation on new matters. 10% discount on hourly rate for legal services.
Bullseye Distributing and Amusements Dave Winfrey 5700 N Havana St Spokane, WA 99217-6546 509.990.6322 winfrey@bullseyeamusement.com www.bullseyeamusement.com
Urgent Care Center - Lower Queen Anne. We are a walk-in clinic open 365 days a year, with extended hours. We accept Washington state L&I insurance, most other insurance, or self-pay. Board certified physicians treat every patient. Xray, lab and EKG on site.
Retail Profit Systems Stew Whitman 5361 Bierson Way Central Point, OR 97502-3283 503.422.7577 stew@retailprofitsystems.com www.retailprofitsystems.com
ATM’s, sound systems that pay. Special promotions and loyalty programs, attractions for Golden Tee live. $100 to $500 in Golden Tee gift cards for WRA members with certain services. Call to find out more!
Express Cold Storage Bob Olson 4606 4th Ave S Seattle, WA 98134-2330 206.623.2655 bob@expresscoldstorage.com www.expresscoldstorage.com
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26 | www.WRAhome.com
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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
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FREE LABOR LAW POSTERS
Take advantage of your WRA membership and get your FREE labor law posters today! Call 800.225.7166 for more information.
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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
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CONSULTING AND BUY/SELL SERVICES 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. See the website at www.smallrestaurantsspecialist.com for a full list of services provided by Jean Klein or call (206)795-4443
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
Manage the back door to manage product cost
PASS IT ON
By Rick Braa, CHAE
Q: My food cost is running about two percentage
points higher than it has in the past. How can I get my cost back in line?
A:
There are many contributing factors to the swing in percentage. Many of these occur at the back door. It is estimated that 50 percent or more of all product cost problems begin in the ordering and receiving process. This is one area where procedures become lackadaisical, no matter how good the restaurant. We’ll address the key areas of the process. Every order should begin with an assessment of what is in storage. Order only what is needed in the most economical size possible, but make sure enough is ordered. Trips to the store are more expensive than one may think when factoring in time, focus and the price a vendor can offer. Set par levels adjusted to business levels and complete an order guide to help you order to par (ideal inventory on hand). Each product should have a specification (spec), and a list of acceptable substitutions should be developed and known by the product receiver. Make sure substitutions are comparable or better in price. Perhaps the vendor is out of #10 cans and substitutes a can in a different size—is the product the same price per ounce? Restaurants are a collection of pennies, nickels and dimes. One common area where money is lost is selling “by the each.” For example, half chickens. When a restaurant opened, the intention was to sell a 2.5-pound chicken split in half for $9.95 each. As time passed, each chicken crept up in weight, ultimately tipping the scale at more than 3 pounds! On every sale of a half chicken, an additional 0.25 pounds was being used costing thousands of dollars per year in food cost. The failure in the process was failing to follow procedure and weighing product on a regular basis. Periodic spot checks and a well-trained receiver would have caught the problem early on. The most efficient way of receiving an order is to have the same person trained and receiving. If that’s not possible, ensure every person receiving an order is
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trained. Regardless, all receiving personnel must be able to recognize the required quality of incoming products as dictated by the purchase specs AND have adequate time to receive the order. A well-trained receiver will inspect, weigh and count product to match the order placed. The most common area overlooked in the receiving process is checking the order guide against the product received and the invoice. Once the order is placed, attach the order guide to a clipboard, and hang the clipboard close to the back door. That way, the order guide is easily located and can be checked against the delivery. Time is wasted when deliveries have missing or incorrect product. Checking the order guide and the invoice before the driver departs shifts the burden of fulfilling the order from the receiver to the driver. The driver will be the person following up on the order rather than restaurant staff. If a product cannot be filled or is damaged, require a credit memo from the driver before departure. Deal with invoice problems in the receiving process—not the accounting office. Once the order is received, properly place “date dots” on the product to streamline product rotation, then promptly move the items to storage. Most importantly, make sure the outside door is kept locked and armed whenever possible; it’s just a good practice for inventory control and safety. Be solid on the basics of ordering, receiving and guarding the back door, and you’ll see your costs come into line quickly. Rick Braa has been working in and with the restaurant industry for more than 30 years. He’s committed to giving you the financial advice you need. Call the WRA Consulting Network at 800.225.7166 to get your FREE consultation with Rick.