Washington Restaurant Magazine August 2014

WA S H I N GTO N

RESTAURANT MEGA

August 2014

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TRENDS RESTAURANT OPERATIONS

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SOCIAL

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MINIMUM

WAGE

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Inside 12 10

www.warestaurant.org

Features 12

Women find enormous opportunities in the restaurant industry

14

Social media usage by Washington operators

16

How would the increase of the minimum wage change restaurant business operations?

20

Want to save money? Control food waste in your operations.

Restaurants Other stories are respecters of

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Lex on Tech: One technology restaurateurs should look at hard work, hospitality and using now ultimate consistency. If you do 9 The other 30 percent a10good job, regardless of your Member Spotlight: Azteca celebrates 40 years! gender, you excel. you 15 Summer dish will and drinks quickIfsurvey don’t do a good job, regardless 22 Washington restaurants score big with National Restaurant Awards ofAssociation your gender, you will 24 ProStart educator Cecelia Stec wins James H. Maynard probably a very short Excellencehave in Education Award 26 Calendar/New Members restaurant career.

6

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Marketplace

Monique Trudnowski Four areas where restaurants needlessly spend extra money

30

On the cover

absolutely thein The This world ofis restaurants is constantly motion.

Restaurant and operators industry ofowners opportunity need to stay abreast of the latest trends but,to essentially, where in order navigate the ever changing waters of this Washington you gobusiness. and how far is Restaurant Magazine’s Mega Trends issue in strategies, your hands. is shares trends and This technology thatthe will help your restaurant succeed in industry where the these challenging times. world really is your oyster.

Amy Igloi August 2014 | 5

Lex on Tech EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Managing Editor, Paul Schlienz Contributing Editor, David Faro Contributing Editor, Stephanie Davenport Research Editor, Sheryl Jackson Art Director, Lisa Ellefson WRA EXECUTIVE COMMITTEE Chair, Jim Rowe Consolidated Restaurants, Inc. Vice Chair, Phil Costello Stop n’ Go Family Drive In Secretary/Treasurer, Mark Chriest Oki Developments, Inc. Immediate Past Chair, Bret Stewart CenterTwist, Inc. WRAEF President, Gary Sutter Northern Quest Resort & Casino WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Government Affairs, Bruce Beckett Director of Communications & Technology, Lex Nepomuceno Director of Education, Lyle Hildahl Director of Internal Operations, Bekah Cardwell

510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org

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: Nina Booth Allied Relations Manager 425.220.7778 ninab@warestaurant.org Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@warestaurant.org, phone: 800.225.7166. Circulation: 6,310.

One technology restaurateurs should look at using now

By Lex Nepomuceno, executive editor When the general public thinks about restaurants and technology, it typically thinks of a new piece of restaurant equipment, a point-of-sale innovation or digital menu boards. Fundamental back office operations are often overlooked because they aren’t as glamorous as a new oven or espresso machine. Cloud storage is a boring but essential tool restaurateurs need to consider implementing right away if they haven’t done so already.

Why cloud storage?

Have you ever wanted to access a file on your laptop, tablet or mobile phone that was saved on your office or home computer? Or maybe you needed to share a large graphics file with your menu designer, but it was too large to email? Fortunately, there are a number of highly reputable online storage services available at a low cost, even free.

Dropbox, OneDrive, Google Drive, Box.com and iCloud are all online storage services that have been around for a while and offer a free option. There are plenty of other services, but the aforementioned are run by established companies like Microsoft, Google and Apple. Although the services listed have slightly different features, advantages and disadvantages, they offer two essential features every business owner needs: continuous file backup and file synchronization.

Computer backup Backup services like Carbonite work fine, but the backup process is scheduled and not continuous. This is important because anything can go wrong at any time, and the workflow of most small business owners can’t always accommodate a computer being on all of the time for nightly backups. Additionally, what about that time you just finished an important spreadsheet and your computer became unusable before a backup is initiated? With something like DropBox, you would be able to immediately access that file over a Web browser from any computer.

Using a service that continuously backs up your most important files provides amazing peace of mind and handy flexibility when dealing with your most important files. Granted, these particular services don’t back up EVERYTHING on your computer, but they all back up the MOST IMPORTANT THINGS. Real-time file synchronization Once you get used to having your most essential files in sync across all of your devices you will wonder how you ever got along without it. File syncing is such a simple concept, but it has taken years to perfect – even corporate behemoths like Google and Microsoft are catching up to a smaller company like Dropbox.com. All the listed services seamlessly synchronize files and folders in real-time, so you can update an image or document on your work computer, then be able to work on the file from home if you have the software installed on both computers, using the same account information.

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Industry Outlook | WRA President and CEO

The other 30 percent Prime cost – the combination of food and labor expenses – is the squeaky wheel that gets the grease when it comes to a lot of WRA articles. And why wouldn’t it get most of our attention? These expenses make up nearly 70 percent of the cost of running a restaurant, and they continue to change.

Today local restaurants face minimum wage issues, ever increasing health care mandates (pushing labor costs over 40 percent for many) and fluctuating food prices due to inflation. It’s very easy to focus on that.

Yet, in this industry where even a single percentage point can drastically impact the average profit margin, maybe it is time to shed a little light on the collection of other costs or “the other 30 percent”.

What are the non-prime costs? They are consistently categorized in seven groups:

Administrative costs (things controlled by office staff – i.e., accounting, legal, phones, banking, etc.)

Occupancy costs (rent, property tax, property insurance)

Direct operating costs (typically things directed, touched or seen by the customer)

Utilities Marketing Repairs/maintenance Interest

The big three within “the other 30” are administrative, occupancy and direct operating costs. Historically, industry averages for each of these areas fluctuate around 7 percent.

I like to think of administrative costs as the things you need that customers never see, like banking charges, office supplies, telephones and legal fees.

Direct operation costs are the things customers directly touch or see. It’s a little easier to develop your list of what goes in this category for your business: china and silverware, paper goods, uniforms, menus, décor, cleaning, etc.

Anthony Anton, president and CEO

payments, occupancy costs also include property taxes and insurance.

The costs of the rest combined historically averages around 8 percent, but these costs are very controllable, and a percentage point does matter.

The WRA can help you deal with “the other 30.”

The WRA can help give you a better understanding of the definitions with our restaurant accounting book, a free benefit with your membership. Our consulting network is here to give you expert advice on how to better manage costs. And the WRA can shed light on the latest trends in the “the other 30” like we are doing in this month’s edition. We strive to be your resource and partner in business.

Additionally, the WRA can connect you with great programs and vendors to help you manage expenses. Among these are discounts from Heartland, our special provider of POS systems; The Hanover Group; and the Restaurant Marketplace vendor guide.

For your hospitality training and certification needs, the WRA Education Foundation strives to be your resource. We offer, for training purposes, the Hospitality Workplace Safety Guide. This is the premiere online safety training program in the state. It keeps your staff and your organization up to date on how to stay safe and reduce workers’ compensation claims, which can be a significant cost savings.

And finally, WRA Government Affairs is consistently working to protect your business by monitoring those laws that could impact “the other 30.” These subjects may not catch your eye in a headline, but our team is consistently working on government issues like services taxes, mandated car charging stations and plastic bag bans to ensure they aren’t costing you more.

Our mission is to help you succeed, and that’s more than just labor costs. We look forward to getting even better at helping you get even better. ■

And lastly, occupancy costs; more than just rent or mortgage

August 2014 | 9

This is our new Member Spotlight section! Are you a member with a story you want told or a celebration to be shared? Email us at stephanied@warestaurant.org.

MEMBER SPOTLIGHT

Azteca celebrates 40 years!

By Stephanie Davenport, contributing editor

Azteca Mexican Restaurants is not just a business – it is a family. Its story is as amazing as the people who work there. WRA had a chance to speak with Randy Thurman, executive director of Azteca Restaurant Enterprises, about what this long-standing business has witnessed during the last four decades.

order to keep those loyal customers happy we have kept the core menu the same all this time. We don’t touch the classic Azteca menu.

However, there are new trends we are embracing. More people are traveling the world, and, as such, they are experiencing different tastes and foods. They are looking for Latin foods with a high flavor profile and asking for more items that match that expectation. As a result, we have From left to right, Jose Luies ‘Pepe’ Ramos – Founder, created a “carta del patron menu” Victor Ramos, Jaime Ramos and Hector Ramos, Sr. where we introduce new flavors every Q: So what makes Azteca amazing?

90 days. We are faithful to our huge A: Well, first of all, the history of this restaurant is remarkable. group of returning customers and will always be, but we must Jose “Pepe” Ramos, the founder of Azteca, grew up in a small also stay relevant. village, in Central Mexico, where his father owned a grocery Q: What would you say is the single biggest change the store. While only in the sixth grade, Pepe had to leave school restaurant has witnessed? to help his father run the family store. He credits all the skills that have made this business a success - buying, selling, perseverance and treating people well - to those days working A: The incredible number of choices that the guests have and the impact that has had on the number of people coming to with his father. the restaurant. Even up until a few years ago we had waiting lists for up to two hours. That just doesn’t happen anymore.

Pepe came to Seattle in 1973, with no money and no English People are more impatient; they have multiple choices of fluency. His story is characteristic of how many people in where they can eat, and their spending habits since the this business move up the ladder and achieve the American recession are still unsure.

Dream. It was a lot of hard work. He started work as a dishwasher in his cousin’s restaurant. For two years he worked But we are continuing to do what we’ve always done, and it’s a 4 to 11 a.m. shift at Todd Shipyard. Then he arrived at his second job at the restaurant. While going from dishwasher to still working. Plus, we are offering more choice ourselves. We are going to open our first prototype store, in Centralia, next cook to chef, he worked to learn English, saved $1,000, and week. The goal is to change the atmosphere to embrace the opened a small 24 seat restaurant, in Burien, one year later. cantina environment, more youthful and upscale décor while preserving the same food and quality people associate with Pepe eventually earned the money to bring the rest of his our name. Our restaurants have a bright future. ■ family to the United States. His family went to work in the restaurant and helped him open additional restaurants.

Today the Ramos family knows how a successful restaurant can be built on the theme of family loyalty and trust; that Scan to read more! is still how they treat the 1,400 Azteca employees that have Use your favorite QR become an important part of the Ramos family. code reader on your smartphone or...

Q: After four decades you must have seen some trends in food come and go?

A: Well yes and no. An interesting part of being 40 years old is that many of our guests have been coming to our restaurant for so many years. They love what they get each visit, and in 10 | warestaurant.org

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August 2014 | 11

Women find enormous opportunities in the restaurant industry

By Paul Schlienz, managing editor

The demographics of the restaurant industry are changing. Nowhere is this clearer than in the spectacular increase in restaurants owned by women.

According to the most recently available figures, the majority of restaurant businesses are either owned or co-owned by women. A whopping 45 percent of all restaurant managers are women – this is in comparison to a 38 percent average of female management in other industries. Restaurants owned by women grew by 50 percent between 1997 and 2007 – the most currently available figures – while the total number of U.S. restaurant businesses rose by 36 percent.

A majority of all workers in the restaurant industry – the second largest private sector employer in the U.S. with 10 percent of the nation’s workforce – are women. Sixty-one percent of all U.S. women have worked in the restaurant industry, and 37 percent of women found their first jobs at a restaurant.

With numbers like those, you’d think women must have some special, innate advantages when it comes to working in the restaurant industry. And if you’re thinking that way, you’re on the right track.

A natural fit “This is an excellent industry for women,” said Karissa Bresheare, owner of Mill Creek-based Gourmet Latte.

“It’s a natural fit. Women are excellent multitaskers, hard workers and they’re naturally people pleasers. They’re used to that with their families and in their personal lives.”

And all those old stories about female intuition? Well, there’s a lot of truth in those tales, and women’s often intuitive characteristics help them greatly in the restaurant environment.

“Women are naturally intuitive on serving others,” said Amy Igloi, owner of Port Orchard’s Amy’s by the Bay. “Not

12 | warestaurant.org

Restaurants are respecters of hard work, hospitality and ultimate consistency. If you do a good job, regardless of your gender, you will excel. If you don’t do a good job, regardless of your gender, you will probably have a very short restaurant career.

Monique Trudnowski

This is absolutely the industry of opportunity but, essentially, where you go and how far is in your hands. This is the industry where the world really is your oyster.

Amy Igloi

45% OF RESTAURANT MANAGERS ARE WOMEN

to say men are not good at it because some of the most professional wait staff I’ve worked with were male. Our cultural history had leanings towards women providing support to the male doctor, women as flight attendants while men were pilots, and so on. Likewise, society has and, in some ways, still does prefer male police officers, firefighters, soldiers, but women do have more hands-on experience caretaking others.”

Another reason women gravitate to and thrive in the restaurant industry is because it offers flexible schedules.

“Restaurants really have the ability to give a very, very flexible schedule because restaurant hours are not just bank hours,” said Monique Trudnowski, owner of Tacoma’s Adriatic Grill who began her restaurant career bussing tables as an 18 yearold single mother. “Our restaurant, for example, is open from 11 a.m. to almost midnight. It’s really important when you have to juggle childcare.”

“I was able to learn the different revenue centers that we have at Longhorn,” said Everhart. “I’ve been in each one of the departments.”

No glass ceilings And what of the much discussed and agonized over “glass ceiling” beyond which women supposedly cannot pass as they rise in the business world? It may exist in some places, but not in restaurants.

WOMEN RESTAURANT OWNERS

1997

2007

50% MORE

Hard work, great rewards Restaurants, more than most workplaces, are true meritocracies, which is another factor that works to women’s advantage. Lacking degree or certification requirements, entry-level restaurant jobs are typically easy to obtain. Once you get your foot in the door at a restaurant, you have a great opportunity to prove yourself, obtain plenty of hands-on experience and move through the ranks. The large number of restaurant owners, executives and managers who began bussing tables or washing dishes is proof of the great opportunities to be found in the restaurant industry.

Erin Everhart, general manager of Spokane’s Longhorn Barbecue, began working at the restaurant as a hostess while she was still in high school. Over the years, she gained invaluable experience that prepared her for her current position.

“Restaurants are no respecters of gender,” said Trudnowski. “Restaurants are respecters of hard work, hospitality and ultimate consistency. If you do a good job, regardless of your gender, you will excel. If you don’t do a good job, regardless of your gender, you will probably have a very short restaurant career.”

Reaching the top in the restaurant world, whether it’s being an executive with a large chain or owning your own small business, is something many women and men have achieved. None, however, have achieved these levels of success without a willingness to make sacrifices to reach their goals.

“I believe the only glass ceilings that truly exist are the ones we make up in our own heads,” said Igloi. “I know lots of people who have defied all odds and refused to accept failure as an option. But the real question is whether the price you pay to get ahead, like time away from family, commuting, no holidays, overtime and so on, is a price you’re willing to pay for that promotion. I always remind myself that if success was so easy, everyone would be successful. You have to be willing to make sacrifices others won’t. You have to want to be succeed in this business and work hard to get noticed so you can be promoted. This is absolutely the industry of opportunity but, essentially, where you go and how far is in your hands. This is the industry where the world really is your oyster.” ■

August 2014 | 13

Social media usage by Washington operators

By Sheryl Jackson, research editor

Overall social media trends

Recently, more than 600 members of the association were surveyed on a variety of subjects, one being social media. Not surprising, the top two social media platforms used by our members are Facebook (80 percent) and Twitter (30 percent).

The trend is true for all concepts.

All

Full Service*

Quick Service*

Don’t use social media

14%

13%

22%

7%

Facebook

80%

82%

67%

93%

30%

30%

19%

29%

11%

11%

8%

15%

10%

12%

6%

7%

6%

1%

3%

15%

4%

4%

0

11%

3%

3%

3%

0

2%

3%

0

0

1%

1%

1%

0

Twitter Online review sites

1

Instagram Push content

2

Photo or video-sharing social media

3

Google+ Reservation based platform

4

Blog

Limited*

* Percent based on total per service category; with more than one response allowed.

1

Yelp and Trip Advisor

2

Email program or texting

3

Pinterest, Flickr or Youtube

4

Urban Spoon or Open Table

OTHER SOCIAL MEDIA TRENDS NOTED IN THE RESULTS

SOCIAL MEDIA USAGE VARIES BY AGE 80%

SEATTLE OPERATORS are more likely than other areas to use:

UNDER 60

Twitter, 58%

73% OVER 60

Instagram, 19%

14 | warestaurant.org

14% don’t use social media currently

Summer dish and drinks quick survey

By Sheryl Jackson, research editor

A new feature we are starting is a monthly quick survey. The intention is to have you answer no more than three questions with the topics covering a broad range from fun to operations. You can look forward to a write up of the results in the next month’s magazine along with the next survey.

This month’s questions ask about your summer menu, current and past.

QUESTION

QUESTION

What new dish or drink from previous years far exceeded expectations?

What one new dish or drink do you have on your menu this summer?

QUESTION

What new dish or drink from previous years bombed?

Please complete survey by August 14th.

SCAN TO TAKE THE SURVEY!

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How would the increase of the minimum wage change restaurant business operations?

By David Faro and Stephanie Davenport, contributing editors

Have you heard that the minimum wage in Seattle increased? Have you heard rumors that it might be increasing in your city or statewide?

Most likely, your answer is yes.

Increasing the minimum wage is a nationwide trend. But nowhere else has it been so readily embraced or so quickly implemented as in Washington state.

The WRA recently interviewed several Seattle members, polled survey results and audited other sources to see what restaurants thought about the increasing minimum wage.

The results are in – increased minimum wage is possibly the biggest issue on the minds of local restaurateurs today.

amount of income; either something is cut or new revenue is found.

“We made two percent in profit last year,” said WRA member Nick Musser. “So, if we assume that is an OK profit, the question becomes how do we cover the cost of the increased wage and still maintain that profit margin?

And one could argue that isn’t actually a good profit either.”

Musser makes a good point. In a WRA survey of more than 400 Seattle restaurants, a full service restaurant’s average net profit is around four percent. While a quick service establishment nets a little more, about seven percent, it is still low. In Washington, the average profit a restaurant owner sees is $29,713.

Last November, SeaTac was the first city to pass a $15 an hour minimum wage. It passed by a mere 77 votes out of more than 27,000 residents. A Superior Court ruling limited the scope of that ordinance, so negotiations continue. Then, less than eight months later, the City of Seattle passed its own ordinance increasing the minimum

One interviewed WRA member said, “First, a business has got to make a profit. If you can’t make a profit, you can’t help anyone.”

And, what if the worst happens; the restaurant stops making money and must close? As it is, on average, 27 percent of restaurants fail within the first three years.

Considering the loss of their business keeps local restaurant owners up at night. However, according to interviews and polls, it’s not only the financial cost to a business, but the personal impact and potential losses of valued employees.

“The idea of closing any of our businesses is really hard,” another WRA member commented. “We value our employees and those jobs. We just celebrated today with three of our employees who are buying new homes.”

There are no politics in the equation for local restaurant owners. It’s just simple math. A business only has a certain

16 | warestaurant.org

Scan this QR code to see Angela Stowell’s video on minimum wage!

OR GO TO: HTTP://WRA.CC/ASWRA2014

Scan this QR code to see Nick Musser’s video on minimum wage!

OR GO TO: HTTP://WRA.CC/NMWRA2014 wage to $15. Facing these types of questions is a reality for local restaurants in Seattle.

So what would the result of an increase in your city, or statewide, mean to your business? Results aren’t in from Seattle, but restaurateurs have ideas of how it will impact them.

The Seattle minimum wage increase will be phased in for small businesses (fewer than 500 employees) over seven years - starting on April 20, 2015. Larger organizations will only have three years to make the operational changes. In Washington, the majority of hospitality establishments fall into the first category. At first glance, seven years seems like a long time, but, in reality, it’s the blink of an eye for restaurant owners who have to completely change their business model to incorporate this giant leap in labor costs.

Where to begin?

So how does a business with a fairly low profit margin work a huge increase in labor costs into their operations?

Across the state, owners and operators of restaurants are sharpening their pencils and trying to figure this out.

Steve LeFever, chairman of Profit Mastery, a national organization that teaches knowledge-driven financial management strategies, outlines a number of important considerations when trying to understand the health of your business model and how to prepare for unexpected externalities like an increase in the minimum wage.

The first step is to plan properly - starting right now. Many operators of restaurants did not get into the hospitality

business because of their love of financial planning.

However, now more than ever is the time to double down, look at your data and create a deep understanding of your books. The restaurants that are still standing seven years from now will be the ones that started planning for the changes today. Independent business owners have to play a number of roles. LeFever will tell you that successful, long-term entrepreneurs, “never take off their financial planning hat.” It’s time to carefully look at the numbers side of your business and discover new ways of seeing exactly what is happening in your accounts. This way, you can calibrate wisely for the increased labor costs of the future.

The second step is to monitor and understand your financial position. Are you able to do that? Do you have access to accurate and timely financial statements? It’s surprising how many owners, when asked about the state of their operational finances, respond, “Well, you would have to ask my bookkeeper.” That’s fine – if you want your bookkeeper to make all of your critical financial decisions for you, but it’s highly unlikely that your bookkeeper has the same holistic understanding of your business that you do. Understanding the balance between your assets and liabilities is the first step towards understanding the big question: Where is the money for increased wages going to come from? LeFever says, “If you don’t have a clear understanding of your cash flows and how they relate to your inventory, pricing strategies and labor costs, then it will be difficult to identify the strengths, weaknesses and opportunities that exist to help you make better decisions.”

Let your bookkeeper be responsible for compiling all the information into easy to understand financials, but for the big picture, you should be most informed person in the room.

Another step is to wrap your mind around the relationship between pricing, volume and costs. LeFever says, “Knowing what that picture will look like next month, next year and beyond is critical. It’s important to develop a ‘break even’ analysis of your situation.” Namely, at what point will your revenues exactly cover your expenses? “Your contribution margin is what you are concerned with increasing.” LeFever says. “This is what will be left after your variable costs are paid. It will determine what you have to put towards fixed costs and – after that - profit.”

Nine out of ten financial management experts will tell you that cash flow mismanagement is the number one reason that businesses fail. People assume that just because sales are up, that the coffers should be filling with cash as well.

Wrong! All sorts of unexpected externalities can occur that hinder cash reserves. Having a proforma that allows you to understand and forecast fluctuations in revenues and

August 2014 | 17

finance will help you communicate more effectively with possible funding sources like banks and potential partners.

You may not feel the need to borrow today. Nevertheless, in the future, if the need arises, having the ability to put yourself in your banker’s shoes, and knowing what a bank looks for in a good borrowing relationship, goes a long way towards securing favorable terms.

Scan this QR code to see Taylor Hoang’s video on minimum wage!

OR GO TO: HTTP://WRA.CC/THWRA2014 expenses, and when they might happen, is crucial tool.

What are your ledgers going to look like one month, one year or five years down the road? The savvy restaurateur compares actuals with projections and analyzes why and where the differences occurred. This allows you to understand your cash position at any given time. You are in a much better position to leverage the inflows and outflows of your operation if you know the details. It’s important to illuminate the places where cash is leaking from your business. That’s the first step towards stemming losses. You can’t fix what you don’t know.

Once you know your financial position, examine your growth potential. For some, it might seem counterintuitive, but growth might be the answer when planning for a future where labor costs are through the roof. When you ask yourself, “Where is the money going to come from?” a good answer for your business might be found in expansion. To grow, you need to be able to forecast the potential costs of your growth goals against expected revenues. Everyone knows that growth requires capital. Knowing exactly how much money is needed before you grow helps your development processes greatly. Looking closely at your business model will help you understand how to free up cash for expansion or, if you need to borrow, to do so.

Being able to see your cash position with some amount of historical perspective and a realistic vision of the future will also help you discern how long it will take to pay those loans back and how to coordinate a plan for doing so.

LeFever says, “If you do need to borrow, borrow properly.”

So, if you decide that you need to finance growth, make sure you are doing it right. Do you have the information that bankers need in order to make decisions about your capital needs? A working knowledge of the language of

18 | warestaurant.org

Borrowing properly means you are prepared and knowledgeable when you do go to the bank. Do you want to borrow on equity or on debt? You are not going to get either unless you can communicate your business story to the banks in a way they can work with and understand.

For a lot of businesses, the move to a $15 dollar minimum wage seems like a death knell, but it doesn’t necessarily have to be. Instead, the businesses that survive this great transition will have firm strategies in place for future profitability.

Many restaurants operations will need to be retooled. Sales and marketing efforts will need to be maximized to their greatest potential. Your menu must be scrutinized and calibrated to perform to the best of its ability. All efforts to develop new customers must be energized and kept current. A concentrated look at what drives people to your store (or away from it) must be taken into account.

Perhaps you will provide more sales training for your front of the house staff. There are many options available for bringing increased sales acumen into your store. Although training consultants are often worth their weight in gold, you don’t have to start by writing a big check.

Many restaurants have found that providing time for their top servers to share their selling techniques with the rest of the staff has done wonders. Retraining B-grade performers by having them follow your A-listers for a shift or two can send a clear message that increased sales are a real expectation. Low sales can be combatted in a number of ways, and if your servers (read: sales staff) can be encouraged to maximize their selling potential, then increased labor might not seem quite so daunting.

As well, make sure that you are consistently taking time for regular contact with your existing customers. Referrals from your regulars at large are the best marketing there is.

The best restaurants flourish on their ability to capitalize on word-of-mouth. One bad experience in a restaurant can be a huge marketing liability that can grow exponentially over time. Always make sure that you know what your present customers want and do your best to give it to them unfailingly.

providing great hospitality in our state. We also understand that it is not going to be easy, and that all small businesses in the state are going to have to look carefully at their operations in order to make it from “here” to “there.”

Scan this QR code to see Jasmine Donovan’s video on minimum wage!

OR GO TO: HTTP://WRA.CC/JDWRA2014 It’s now more important than ever that you hire people who will be onboard with your vision for your operational future. Careful and deliberate hiring allows you to select people who will understand your vision for remaining afloat and the challenges that the new minimum wage presents. Good hiring ensures you have a staff that is hungry to contribute its best efforts.

In every store, there are employees who, by their very actions, mentor other employees towards optimal performance. These are the team players you need. These key employees will also be able to take on many quotidian operational concerns as well, which will allow you more time for mentoring your sales staff.

The WRA offers a number of advantages to its members that can help make the transition less stressful. We know that every dollar counts, so as you look for ways to minimize your expenditures and increase your bottom line, look to the WRA for programs like RETRO that have been refunding L&I premiums to WRA members since 1986. Are you taking advantage of this program? Last year, we handed back over $6 million to participating restaurants.

The WRA is also one of the premier consulting networks in the state, and membership offers you the ability to engage with top shelf advisors regarding every aspect of your operations. We aim to be a primary source of information on all things hospitality, and our menu of business development programs is a great place to start.

Connect with allied members whose products and services can help you save time and money. Look to the WRA’s publications for information on best practices, industry trends and sincere and devoted advocacy aimed towards relieving tax burdens on small business.

We know the next few years look intimidating, but with proper planning, informed financial calibration and a dedication to streamlining your operations, some of the pain might be mitigated and your business will continue to find the ability to thrive. ■

Start thinking about setting goals for your sales staff and sharing them. Servers are a competitive bunch. Establish a race towards the top and reward your top performers while getting rid of the drags on your system. When the new economic terrain demands $15 dollars an hour as a minimum wage, you have the right to expect exceptional performance from all of your staff all of the time.

Want to save money and time on your training budget? The WRA Education Foundation’s ProStart program is a great place to look for up-and-coming hospitality professionals who already have hundreds of hours of preparation under their belts and are looking for successful careers in restaurants just like yours.

There is no doubt that the next seven years are going to be challenging for many members of the WRA. The WRA’s mission is to help you succeed at what you do best,

Scan this QR code to see Destiny Sund’s video on minimum wage!

OR GO TO: HTTP://WRA.CC/DSWRA2014

August 2014 | 19

Want to save money? Control food waste in your operations.

By David Faro, contributing editor

It’s a shocking number.

The UN Food and Agriculture Organization (FAO) estimates that close to one half of food produced globally goes to waste each year. It’s a staggering figure accompanied by an equally large amount of lost revenue for restaurants.

In the United States, 31 percent of the food supply available to retail establishments gets thrown away.

We know that waste is pervasive throughout our food production systems, but few of us act to make changes; these numbers have been around for quite some time.

More than 20 percent of U.S. landfills are comprised of food waste, and only about 3 percent of that waste is recycled.

31%

of the food supply available to retail establishments gets thrown away

To the savvy, number crunching restaurant entrepreneur looking to cut costs and streamline operations these numbers are unacceptable. Why? Because wasted product means wasted dollars, and in today’s economic climate who has dollars to throw away?

For the restaurant owner looking to reduce expenditures, the first step is a concentrated look at your operations.

Restaurants can reduce costs and minimize waste by implementing simple plans that everyone agrees to participate in. However, in some cases, it’s hard to get the ball rolling.

nothing changed, and we kept wasting food and spending more than we needed to on disposal. I always wondered why upper management, when they were so insistent on cost control in so many other areas, refused to see the savings available through efficient waste management.”

The culture you instill in your operations is a key component for reducing costs. Unfortunately, in many restaurants, the culture of waste is so pervasive that managers do not know where to begin.

For starters, the waste stream is not separated. Food, paper, glass and all other forms of trash go into the same containers, and are hauled out to the dumpster; every last bit of it headed for the landfill. For those managers who have been able to change the way that their employees dispose of in-house waste, however, almost all report significant decreases in overall costs.

One example can be found in the case of grease collection.

Some restaurants pay to have their used cooking oils removed from their premises. Others work with a biodiesel collection agency like WRA member General BioDiesel.

There are many rewards that come from a well concocted waste removal plan. By working with a company like General BioDiesel, restaurants know they are contributing directly to the local economy and better air quality right where their customers and employees live, work and play while, crucially, saving money at the same time.

Many operators see adding a 21st century recycling program to their restaurant as an impossibility. They see a change in operations as too difficult to install, and they fear hidden associated costs. Frankly, this kind of thinking is just plain wrong. The myriad of restaurants that have made advances in their waste management plans are experiencing cost control measures that work well and save money.

Recently, a manager of a large full service restaurant, in Washington state, lamented, “I have tried everything.

I contacted our waste disposal provider and worked with them to create a plan to reduce costs and increase Mitigating the amount of food that goes to your dumpster recycling. I put the plan on paper and submitted it to and designing cost-effective waste removal operations upper management not once, not twice, but three times, doesn’t require a huge financial investment, but it does and I never received a response – ever. My plan reduced waste by almost 25 percent, and reduced costs by over 20 percent, but I needed buy-in from the people higher up the pay grade, and that of US landfills are comprised of food waste was the key factor I could not secure. As a result,

More than 20%

20 | warestaurant.org

HALF

of food produced globally goes to waste each year Estimates the UN Food and Agriculture Organization

require effort. Mainly, it requires a good, close look at your systems, concentrated analysis and a concerted effort to change your culture and convince your employees to participate in programs that reduce food waste.

Here are some measures you can employ to bring your operational food waste under control: PRODUCT HANDLING AND STORAGE

Check your produce deliveries carefully for rotten or

damaged product. Return any substandard product.

Do not sign the delivery tag until the contents of every box have been inspected and approved.

Rotate perishable stocks at every delivery to minimize waste due to spoilage. Use the back-to-front system where new product is placed on the back (or bottom) of the shelf, while the older product is rotated to the front (or top). Additionally, date all products on the day you receive them so if they get mixed up you can still recognize the newer product from the old.

Clean your cooler(s) and freezer(s) regularly to ensure that food has not fallen behind the shelving and spoiled. This should include both reach-ins and walkins.

Arrange your refrigerated and dry storage areas to facilitate easy product access and rotation. This will help minimize waste due to spills, breakage and spoilage.

Store and/or handle unwrapped paper supplies (e.g., drink cups, napkins or bags) so as to prevent the products from inadvertently falling on the floor.

Store raw vegetables (in addition to other perishables) in reusable airtight containers to prevent unnecessary dehydration and spoilage. Also, store produce (especially leafy vegetables) as far away from the condenser unit as possible to prevent freezing. Never store tomatoes and lettuce in the same container or close to each other. Tomatoes emit a gas that will turn lettuce brown.

Reconstitute stalky vegetables (e.g., celery, lettuce, carrots, broccoli, etc.) that have wilted by trimming off the very bottom part of the stalk and immersing them in warm water (100 F) for 15 to 20 minutes.

Wrap freezer products tightly and make sure they are used in a timely fashion to minimize waste due to freezer burn. Code/date all product stored in the freezer and rotate properly.

Donate any extra food to a food bank.

FOOD PREPARATION AND STORAGE

Adjust inventory levels on perishables to minimize

waste due to spoilage or dehydration. If you are constantly throwing out coded dairy products or driedup lettuce, it might be because you’re stocking too much inventory and/or it’s not being rotated properly.

Check your usage levels to see if you need to adjust either the quantity or frequency of your orders.

Develop and use hourly or daily production charts to minimize over-prepping and unnecessary waste.

Whenever possible, prepare foods to order to minimize waste due to over-preparation.

When prepping food, only trim off what is not needed.

Over-trimming typically occurs in the preparation of bulk meats and whole vegetables. Check the garbage can for tell-tale signs or ask that all trimmings be put into a holding container (for review) prior to disposal.

If too much trimming is observed or required, retrain your prep staff, change the product’s specification or size to minimize unnecessary waste, or buy it already pre-portioned.

Use vegetable and meat trimmings for soup stock.

Evaluate and adjust the size of your meal portions if you find they are consistently being returned unfinished. Offer customers smaller portions and price menu items accordingly.

Pre-cool steam-table hot foods (in an ice bath) before placing them in the cooler. Similarly, always place hot foods into clean, shallow containers before storing in the cooler. This helps prevent premature spoilage and keeps your cooler from working overtime to keep things properly refrigerated.

Reuse leftover cream-based sauces and soups (that have been held and stored at proper temperature) within two days of when they were originally prepared to prevent waste due to spoilage. This also applies to leftover poultry and fish-based menu items.

Store leftover hot foods from different stations in separate containers rather than consolidating them to minimize the chance of spoilage. ■

August 2014 | 21

Washington restaurants score big with National Restaurant Association Awards

By Stephanie Davenport and Paul Schlienz Anyone who knows anything about Washington’s restaurant industry knows how much restaurants and their owners do for their communities. It is, however, a story that cannot be told enough.

I’m happy to work in an industry where I can do that.

My current focus is to improve hunger relief. I will be continuing to look for partners to help solve this issue.”

Helping get the word out about these extraordinary businesses and honoring the caring people behind them is what the National Restaurant Association’s (NRA) awards program is all about.

Brent was nominated by three community members: Jeff Lann, executive director of the School of Piano Technology for the Blind; Diana Smith, from the Battle Ground Rotary Club; and Gilda Ciraulo, executive director of the Rocksolid Community Teen Center.

This year, the Washington Restaurant Association is proud that four of its members were honored by the NRA for their extraordinary community service with the Cornerstone Humanitarian and Restaurant Neighbor awards.

Brent helps his community in remarkable ways. He once hosted a piano for the school for the blind and donated a $1,000 to the organization. He helped the teen center raise $40,000 for its afterschool programs. Additionally, Brent regularly donates gift certificates to his local Rotary group.

Each is a great role model and example of just how much restaurants can do to help those who need it the most.

“We are so pleased to give Russell Brent this award,” said WRA CEO Anthony Anton. “He is a perfect example of how restaurants serve their neighborhoods and our state.

Restaurants not only help their employees move upward; they unite people and provide immeasurable value to their community.”

2014 Cornerstone Humanitarian Award Russell Brent, Mill Creek Pub

Currently, Brent is working with the local food bank, Community Garden, Meals on Wheels and Rocksolid Community Teen Center to serve those in need. He is planning a year-long campaign to make a difference for hunger relief and encourages others get more involved in missions in their area.

2014 Restaurant Neighbor Award 50 North

On June 26, WRA member Russell Brent, owner of the Mill Creek Pub, in Battle Ground, accepted the Cornerstone Humanitarian Award from the NRA. This award honors a specific individual for his or her personal commitment to community service. Unlike other awards given by the association, this award isn’t given to a restaurant, but to a person. Only one person per state can receive it.

“I am honored to be recognized for serving this great community by the National Restaurant Association,” said Brent. “It is so rewarding to help those in need and 22 | warestaurant.org

If you want proof of restaurants’ deep roots in their communities, look no further than Seattle’s 50 North.

This year the National Restaurant Association presented it with the Restaurant Neighbor Award for unwavering commitment to its community.

“50 North demonstrates how local restaurants serve a huge need in their neighborhoods,” said Anton. “They give back in ways that are more than just dollars and cents.

As members of the service industry, restaurants are the ambassadors of service to the greater good. 50 North is another example about how restaurants provide a place where people can gather, care about each other and help the larger community.”

50 North drew attention for its many acts to help end hunger in Seattle. Every time a patron dines at 50 North, the restaurant pays for a meal to someone in need, providing 29,480 meals to date. The eatery also hosts Guest Bartender Nights weekly to provide local charities with an opportunity to inform the community and earn donations; more than 25 charities have participated, and $10,000 has been raised from donations. Additionally, the restaurant closes one night a year to host a $500 a plate charity dinner to benefit a local elder care center – raising more than $350,000 over the last eight years.

“We are honored and thrilled to win this amazing award,” said owner Melinda Sontgerath. “Our mission is to be a great gathering place and add value to our community.

We were inspired by the book The Great Good Place.

Restaurants are the heart of a community’s social vitality, and I feel that we at 50 North have achieved this vision.”

Hop Jack’s

Restaurant Neighbor Award,” said Anton. “It donated more than 100,000 meals to Northwest Harvest last year, launched a program to help special needs kids and made giving back to the community part of its culture. Hop Jack’s is another example of the ways restaurants help the larger community.”

In January 2013, Hop Jack’s partnered with Northwest Harvest. Mark Eggen decided to donate 50 cents from each pint of Hop Jack’s own IPA or Pale Ale to Northwest Harvest. By the end of December, Hop Jack’s will have raised more than $24,000.00 from this promotion. This amount will purchase more than 100,000 meals for Northwest Harvest.

Additionally this year, Hop Jack’s is going to hold its second annual “Spike’s Bikes.” This event is named after a general manager who bought a bike for a needy child and parked it in the restaurant last year. Guests began to follow his lead, and 14 bikes were donated. This year Hop Jack’s will do this in all seven of its restaurants with a goal of donating 150 bikes.

Pacific Bells, Inc. Pacific Bells, Inc., a large, multi-state Taco Bell franchise, owned by Tom Cook and based in Vancouver, Wash., is another example of the great things restaurants do for their communities.

Over the past four years, Cook and local teams have given more than $230,000 to Lines for Life, a Portland organization that helps at-risk teens.

Pacific Bells also gave more than $50,000 to Boys & Girls Club, in Columbus, Ohio, and $90,000 to the Cleveland Boys & Girls Club. Together with other franchisees, Pacific Bells, Inc., committed to a $1 million minimum gift to the club over the next five years.

Additionally, Pacific Bells donated more than $182,000 to the Taco Bell Foundation for Teens Scholarship Fund, providing disadvantaged teens with higher education.

This year, the NRA presented Hop Jack’s with the Restaurant Neighbor Award for its unwavering commitment to its community.

Hop Jack’s, owned by Mark and Shauna Eggen, is known for helping to provide food for the needy in Washington.

“I was really proud to present Hop Jack’s with the

“At Pacific Bells, good corporate citizenship is a core value,” said Cook. “We strongly believe it is an honor and privilege to be of service to the communities in which we work and live. Those of us who have been fortunate enough to have achieved some measure of success in life have an obligation to share…to give back where there is need…and an opportunity to make a real difference.”

Anton will present Pacific Bells with its Restaurant Neighbor Award on August 21. ■

August 2014 | 23

ProStart educator Cecelia Stec wins James H. Maynard Excellence in Education Award

By Lyle Hildahl, WRA Education Foundation director

One of the coolest things about my job is that I get to experience first-hand the dynamics of a ProStart classroom full of young adults choosing to focus on restaurant management and culinary arts. The diversity of these classrooms is pretty amazing. Teachers will say that some of these students are “dumped” there because counselors don’t have any place else to put them. The official term for these kids is “at risk student.” Student athletes enroll because the free food is amazing. College bound students enroll because of scholarship opportunities, and many others choose ProStart because of the food network craze.

Many want to become chefs and/or own their own business someday. Essentially, this is a huge teaching opportunity and challenge. What’s amazing is the transformation that occurs when you have a teacher like Cecelia Stec of Kentlake High School in the Kent School District.

Cecelia was recently awarded the James H. Maynard Excellence in Teaching Award at the National Restaurant Education Foundation Excellence Awards ceremony in Chicago. The award recognizes Cecelia’s service to her students, the community and the hospitality industry.

Cecilia has dedicated her whole life to sharing her love of culinary arts, starting in 1975, when she graduated from Washington State University with a Bachelor’s of Science degree in home economics (family and consumer sciences) and began teaching at the high school level.

After nine years, Cecilia resolved to gain more knowledge of the restaurant industry so she could better educate her students. For seven years, she conducted ethnic cuisine cooking classes for adults at a cooking school, worked as a consumer advisor and class instructor and managed a fullservice restaurant.

At that point, Cecilia decided it was time to return to teaching and share her knowledge and experience with students. She became Kentridge High School’s culinary instructor. The school operated a full-service restaurant, and Cecilia encouraged her students to expand and become involved in catering events to broaden their skills. The Washington State Parent Teacher Association awarded her the Golden Acorn for her dedication to serving youth in 2002.

24 | warestaurant.org

In 2005, she started teaching culinary classes at Kentlake High School within the ProStart program. Her time away from teaching and 17 years as a Washington State Chefs Association member paid off. Cecilia arranged for her students to cook with John Sundstrom and Tom Douglas at the Washington Restaurant Association Auction at the Westin Hotel, prepare food and beverages for the Special Olympics, participate with chefs and college students at the Washington State Governor’s Inaugural Ball and network with industry professionals at the Western Regional Conference of the American Culinary Federation.

This is what Cecelia has to say about the value of working with an industry mentor in the classroom: “My mentor chef has been an inspiration and a vital part of my program.

She comes in and works side by side with my students every week. The competition team works closely with her, in practice, and she has invited many of my students to spend a day in her restaurant in a job shadow experience.

Needless to say, she has hired at least one student from the ProStart program every year. She has lead a team on to state competition with ProStart and our local culinary competition with Renton Technical College for the last five years.”

Her mentor chef is Denise Onorati, executive chef of the Grape Adventure Restaurant and Wine Bar in Kent.

Cecelia sets her classes up uniquely, and treats her students as if they were working in a professional environment. It is through this experience that students learn what’s necessary for success in the restaurant industry: responsibility, respect, communication, problem resolution, safety and sanitation, time management, flexibility, teamwork, preparedness and readiness.

Cecelia’s passion is all about the success for her students.

When her students succeed, the community and industry succeeds. On the next page are letters from a current student and a former student who works in the industry.

We applaud you, Cecelia, and all of your colleagues for the humble passion and commitment you give to the kids.

I am happy to recommend Ms. Cecilia Stec of Kentlake High School for ProStart Teacher of the Year. I have been a student in Ms. Stec’s classes at Kentlake for two years. I took Creative Cooking the first year because I thought it would be a fun class and I had some interest in cooking. I discovered that I learned a lot more than I expected. When I had to plan, prepare and present a signature meal to my family, I found I had a deep interest in the culinary field and wanted to do more. So, I enrolled the next semester in Careers in Culinary Arts, and this is the second year I have been in that class. I am also excited to be part of the Kentlake ProStart culinary competition team ad look forward to the March competition. Through Ms. Stec, her classes and the other opportunities she has offered, I have found the fun and passion I have for cooking.

In Ms. Stec’s class, we have taken field trips that will help with my future. We attended the Food Services of America show and visited with several food service and restaurant industry members. We also have visited different culinary schools and learned about the programs available after we graduate from high school. It has helped me get the feel of each school and a hands-on look at the industry.

Ms. Stec runs her Careers in Culinary Arts class as if I were a hired employee. She shows me how to be more responsible and to take charge. The class plans and prepares for several catering jobs. Catering jobs show me the fast-pace of the food industry and the importance of time management.

I work part-time at Pizza Hut. The skills I learn in class such as sanitation, time management, flexibility, being prepared, etc. help with my job. When I first took Ms. Stec’s class, she was like my boss, and it was intimidating. From her, I learned to respect, not fear, that position of authority. She taught me to address problems as they occur and communicate with my boss (or her) about a solution. I have learned how important a strong work ethic is in school and on the job.

After graduation, I plan to attend culinary school and become a chef. My decision was strongly influenced by Ms. Stec and the skills and attitudes she has taught me regarding my future goals. For these reasons, I hope you choose Ms. Stec as ProStart Teacher of the Year.

Sincerely,

Bay Beck Student Kentlake High School 21401 SE Falcon Way Kent, WA 98042

The real impact of ProStart can be seen through the eyes of the people whose lives are changed by the program; the students. Read these letters to experience the importance of ProStart teachers, their influence on our community, and the incredible value they bring to the youth in our state.

My name is Kimberley Cosway, and I truly believe Cecilia Stec deserves to be ProStart Teacher of the Year. As a previous student and someone who is currently a successful part of Seattle’s culinary scene, I have to say that I wouldn’t be where I am today without the guidance and early teaching Cecilia gave me.

My first experience with Ms. Stec was in her Creative Cooking class. During this class, I realized my passion for food, and was invited to join the culinary class. At that time, as I was friends with several of the students on the ProStart team and they were looking for someone to be the alternate. I applied, made the team and was hooked. The following year I was leader of the ProStart team, and very involved in the culinary experience. As my skills grew Ms. Stec game me more responsibility including placing food orders, helping run the latte business, demonstrating cooking techniques to classes and part time employment in the field.

Since leaving Ms. Stec’s program, I have earned and Associate Degree of Applied Science of Culinary Arts at South Seattle Community College. I traveled and lived in Italy and France, where my culinary skills were put to the test through challenging fine dining internships. I am currently employed as a line cook at Lola in Seattle.

Ms. Stec is the one who made me realize this is my true passion, and I wish I could show her how much I value her influence and friendship. Hopefully, by receiving the ProStart instructor of the year she can see a glimpse of how much I appreciate her.

Thank you so much for your time and consideration.

Sincerely,

Kimberly Cosway Culinary Cook Lola Restaurant

INDUSTRY CALENDAR August/September 2014 Training Aug. 28

ServSafe® Manager, Olympia

Sept. 2

ServSafe® Manager, Seattle

Sept. 9

ServSafe® Manager, Seattle

Sept. 15

ServSafe® Manager, Kent

Sept. 18

ServSafe® Manager, Tacoma

Sept. 23

ServSafe® Manager, Fife

Meetings Aug. 12

Spokane Chapter Board Meeting

Aug. 12

WRA Executive Committee Meeting

Aug. 19

MSC Board Meeting

Sept. 2

WRA Executive Committee Meeting

Sept. 3

Seattle Restaurant Alliance Chapter Meeting (Restaurants only)

Sept. 9

Spokane Chapter Meeting

Sept. 16

Finance Committee Meeting

Sept. 16

Board Development Committee

Sept. 16

MSC Board Meeting - Webinar

Sept/Oct

Government Affairs Committee Regional Meetings

NEW ALLIED MEMBERS Adams Financial Concepts, LLC Michael Adams 1001 Fourth Avenue Ste 2330 Seattle, WA 98154-1121 206.903.1019 mike@adamsfinancialconcepts.com www.adamsfinancialconcepts.com We strive to build and maintain wealth for our hospitality and restaurant clients and their employees with superior service.

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Bite Squad Angie Hildreth 2716 Elliott Ave Ste 100 Seattle, WA 98121-3505 952.452.2636 angie@bitesquad.com www.bitesquad.com

Cloverleaf, The, Tacoma

Restaurant food delivery service, online ordering.

HZ Group, The, Kirkland

Hanson Insurance Group, The Brian Hanson 1300 114th Ave SE Bellevue, WA 98004-6942 206.947.2280 bh@hansoninsgroup.com

Lee Restaurant & Hotel, The, Enumclaw

Commercial property and casualty insurance specializing in the restaurant industry. Special offer: 10% off quoted premium or discounted broker fee, whichever is greater.

Nuemo’s, Seattle

Small Restaurant Specialist Jean Klein 5360 Lansdowne Ln Mercer Island, WA 98040-4649 206.795.4443 jklein@smallrestaurantspecialist.com www.smallrestaurantspecialist.com

Red Pepper Pizzeria, Duvall

Restaurant Consultant with unparelled restaurant operation and accounting experience at your service to operate more efficiently and retain more profits.

Sharky’s Pizza Shack, Yakima

Extreme Pita, Kent Flyin’ Hawaiian Sushi, Eastsound Four Seasons Restaurant, Enumclaw Great American Bagel, Seatac Gyros House Mediterranean Grill, Renton JP’s Bar & Grill, Renton Moe Bar, Seattle Moreno’s Family Mexican Restaurant, Mount Vernon Normandy Park Ale House, Normandy Park Patxi’s Pizza, Seattle Pike St. Fish Fry, Seattle Puget Sound ESD, Renton Red Swirl, Duvall River City Catering, Duvall Riz Dhanani, Redmond Rosario Resort & Spa, Eastsound Secret Cove, Anacortes Steakhouse 9 Restaurant, Lynden Subway, Kirkland Subway, Seattle Summit Pub, Puyallup Todd’s Crab Cracker, Kirkland Veraci Pizza Spokane Williams Ave Pub, Renton

26 | warestaurant.org

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WHY DO CUSTOMERS NOT RETURN?

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Customers go to a restaurant for food, but they will return if offered great service. On an average year a restaurant will experience a 10-30% loss in customer retention. 80% of those customers leave a restaurant never to return based on a single occurrence of poor customer service. Our mystery shopping services allow you to train your staff to provide “consistency of service.” We can provide you and your staff a customized program that will help you to succeed to the next level. We are an Accredited Member of the BBB and WRA. 509-327-7373 * info@selectinfoservices.com www.selectinfoservices.com

MEDICAL AND DENTAL COVERAGE The Washington Restaurant Association designed a health care plan just for WRA members. The Hospitality Industry Health Insurance Trust (H.I.H.I.T.) enables business owners in the hospitality industry to provide affordable healthcare benefits statewide. Contact Amber Hahn at 877.892.9203 for a FREE quote.

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Through a partnership with North American LED and the National Restaurant Association, WRA members receive special pricing on LED lighting. Legislation passed in 2007 phases in new energy efficient standards for lighting and phases out the traditional light bulb. To access discounts, visit: www.northamericanled.com/restaurants | User name: NRA175 | Password: NRA175

BUYER’S GUIDE CORRECTIONS We would like to apologize for errors made in the 2014-2015 Buyer’s Guide.

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WA S H I N GTO

LED LIGHTING DISCOUNTS

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2014-2015

Please make a note of these in your copy!

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Comcast Business Class Olympia John Koch 440 Yauger Way SW Olympia, WA 98502 360-280-3429 www.comcast.com Internet, phone & TV PM 7/14/2014 1:30:02

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Degginger McIntosh & Associates Rob Knode 3977 Harbour Point Blvd SW Mukilteo, WA 98275-5454 425-740-5200 www.dmainsurance.com Insurance & financial services

Jones Supply John Jones 1600 W Lewis St Pasco, WA 99301-5034 509-547-3255 www.jonessupply.com Restaurant supply

Ask the Expert | Restaurant Profit Coach

Four areas where restaurants needlessly spend extra money

By Rick Braa, CHAE

Q:

I’m currently working hard on bringing my costs in line. What are some areas below prime cost on which I can focus?

A:

Operating expenses below prime cost generally run close to 30 percent of sales. These buckets of expenses generally include direct operating, general and administrative, occupancy, utilities and other income/expense. Choose the most meaningful expenses and focus on reducing them. Here are some ideas of where to start: Perform routine maintenance on all equipment. Spend repair money wisely. Deferred maintenance is a way of life for many restaurants yet underspending repairs always leads to replacement issues later where equipment or leaseholds need to be replaced rather than repaired. If you’re spending less than 1 percent of sales, and your restaurant is more than two years old, you’re spending too little. To get ahead of equipment failure use a computerized maintenance management system (CMMS). This software works by entering in the make and model of equipment. Most equipment has a maintenance schedule of what and when to clean, service and replace. This type of software prepares an easy to follow schedule to keep equipment in top working condition. A more time consuming and less expensive option is to use spreadsheet. The important activity is to make sure you have a schedule clearly posted and assigned to staff to maintain equipment.

Treat linen like cost of goods. Great cost of goods management includes proper purchasing, receiving, storage and usage. Manage linen with diligence. Inspect linen when it is received and refuse items that are torn or worn where you could get charged for damage or replacement in the future. Store linen inventory properly, and if you have large stocks of inventory, rotate your linen stock regularly to avoid light damage and reduce wear and tear. Make sure it is stored in a well-lit, dry and warm place with a locked door. Linen theft and abuse is a reality. Be sure to use the proper linen for the proper job such as colored towels in the kitchen. Make sure all staff don’t misuse linen or have access to too much. Lastly, count linen often to make sure you’re not being overcharged. There are countless stories of vendor abuse and paying for more than what was used.

Bid out credit card fees annually. Typical credit card statements are confusing for the most experienced of 30 | warestaurant.org

operators. Work only with credit card processors. Many of the new POS systems are offering free or inexpensive POS along with imbedded credit card processing. These fees are more expensive, and the restaurant pays for the POS system several times over by overpaying for credit card processing. POS system companies aside, the two most popular programs are interchange fees plus a fee for each transaction and/or a percentage of sales and a flat percentage fee. The former is the traditional approach.

Shoot for a number such as interchange plus $0.05-$0.10 per transaction and no percentage depending on the size of the restaurant (AMEX will be separate.). The latter is a program where the restaurant is charged a flat percentage fee of total sales ranging from 1.8 percent to 2.5 percent of sales depending on size and number of locations. The higher the number of debit transactions, the lower that number can be negotiated as debit transactions follow a different and less costly fee schedule.

Reduce utility costs with better technology. Telephone, Internet, cable and basic utilities can cost upwards of 4 percent of sales. To combat higher expenses, use available technology. Use a CLEC (competitive local exchange carrier) company for phone and broadband service. These service providers of telecommunications and broadband work with as much as 86 percent of the Fortune 100 and can work with any size company. When partnering with a CLEC, you won’t be stuck in a long queue waiting for service on vital telecom issues, you’ll get quick responses, easy to understand billing, better costs and technology. In other utility areas, automate restrooms with automatic flush for toilets, automatic soap, water and paper dispensers/ air dryers. Automate the lights to go off when no one is in an area of the restaurant, and remind staff to use common sense by turning off everything when not in use.

By studying, questioning and applying current technology and behaviors to operating expenses, you’ll save 3-5 percent without much effort. ■ For a more information on improving profitability and driving sales, contact AMP Services at rbraa@ampservices.com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm, specializing in helping companies grow profitability.

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