MRM’s Most Popular for 2017

In lieu of our MRM’s Daily Bite, today we are looking back at a few of Modern Restaurant Management (MRM) magazine’s most popular articles in 2017. They run the gamut from design to features to trends, technology and case studies. Expect more and better in 2018!

One of our top posts was Fishers: Creating Culinary Destinations in the Back ‘Yard’ on how one community is embarking upon an estimated $40-million endeavor to establish a culinary and entertainment center in the city.

The U.K.-based Industville, which produces original hand-crafted industrial lighting for home, retail stores, trendy restaurants and coffee shops, provided us with this infographic, The Psychology Behind Great Restaurant Design.

The experts at Toast provided us wth this look at Top Restaurant Technology Trends for 2017.

A post from Oasis Outsourcing detailed  Ten HR Challenges That May Be Holding Your Restaurant Back, 

Trends proved to be a popular topic in  U.K. Restaurant Trends for 2018 from Nisbets and 2018 Predictions from Restaurant Industry Insiders

The importance of checklists for restaurants was highlighted by Alena Tikhova is the CEO of Dodo Pizza USA in Mastering the Art of Checklists at Your Restaurant.

It’s not surprising that Millennials were a hot topic for MRM readers. The Future of Food: Are You Ready for the Millennials? from the experts at Maru/Matchbox featured an infographic with insights into the important demographic for the hospitality industry.

A study on how one franchise utilized automated marketing from LoyaltyPlant, KFC AmRest: A Case Study in Automated Marketing Campaigns, was among the most read. 

And, an edition of our MRM’s Daily Bite,  Reserve Fuels Growth and the Popularity of Meat Alternatives, made the list. 

MRM’s Most Popular for 2017 posted first on happyhourspecialsyum.blogspot.com

Don’t Let Your Business Plan Work Against You

I have seen hundreds of business plans over the past 30 years as a restaurant owner, executive and later as an alternative finance provider. Many restaurateurs seeking financing put a great deal of effort into their presentation and many worry more about form than substance. Unfortunately that can work against them.

This past week I received what looked like a well thought out and organized business plan. It covered all the classic bullet points that someone expects, but a deeper look revealed weaknesses and lack of solid business sense on the part of the new owners. Their primary drive was to “sell the deal” based on soft issues not real substance.

Professional financiers go to the facts, numbers and other details about the business, location, management, concept to piece together the real story. They are generally skeptical and are looking for holes, obstacles or anything that might be counter to what is in the plan. They want to look inside your head.

The business plan I just received was seeking $400,000 in financing and was filled with superlatives about the location, concept, market and management. I am sure that the folks were sincere, but their plan made me think they were either inexperienced, naïve or intellectually lazy. They would not be able to convince potential lenders or investors that they are solid professionals who can run a great restaurant and pay back the debt.

What was wrong?

Many aspiring restaurant owners are caught up in the dream and focus their plan on pitching how wonderful everything is and dump volumes of positives into the document. If you are going to succeed in attracting lenders or financial partners you need to present a well-researched argument along with realistic projections that can be validated. You also need to highlight the downsides, competition and risk factors in launching and operating this business. I will point out some high level things for you to consider when crafting one of these documents:

Don’t Pull Numbers Out of the Sky

You will be challenged to defend your assumptions. On every single line item ask yourself how did you arrive at this number both on revenue or expenses. I’m not talking about your “gut” or how your years in the business led you to the numbers – you’ve got to show the lenders your logic.

Revenue: In the restaurant business it’s all about covers and meals served. What are realistic check averages? Your revenue projections should show a realistic story. What are the days of operation and number of covers served by daily meal period? Don’t just pull a number out of the air and say – “we will do $1.5MM in year one and increase 10% per year thereafter”. Based on what?  Show how you got to the number. Also, when illustrating this logic stream don’t ignore comps, promos, discounts and employee meals as they have real cost and are a fact of life in our business.

Expenses: It is natural for entrepreneurs seeking financing to present the most profitable picture. As a result they often understate expenses. It is important to really research this and get as close as possible. The business plan in my hand has so many glaringly low ball costs that I knew they were trying to stretch the story. Labor, insurance, advertising and marketing, direct operating, R&M, utilities and so forth, are favored fairytale items.

Stop Selling so Hard

 If there wasn’t a baseline interest in your proposal, the investor wouldn’t even read it. The business plan should be a solid substantive, data filled argument as to why this business will be a winner which transparently shows the good and the possible bad side of the restaurant. Too many plans spend 80% of the pages filled with superlatives and only 20% with defendable data, assumptions and projections. Meaningful details about competition, past history of the location and the lease should be discussed. As an old restaurant owner once told me – “less sizzle – more steak”.

Focus on Fixed Costs

The are usually volumes spoke about items described as variable costs but not the areas that will be tougher to control. Busness plans highlight menu, cost of good, labor, marketing but rarely take a deep look at the lease, insurance costs, taxes. All of which are central to many restaurant failures. Talk about it up front.

Think Before You Make Rash Statements

Stretching the truth or showing you didn’t really think your claims through. Stating they were going to serve lunch and dinner seven days a week, do $1.5MM in sales and then forecasting a total of three cooks and one dishwasher and one manager for the entire year showed the weakness. That would mean these employees would never go home. The personnel cost in the projections reflected this assumption. This is just makes them look like amateurs.

The Devil is in the Details

I have seen plans that are asking for financing but then never show the debt service in the pro forma financials or they make unrealistic representations. One plan showed a four percent interest only five-year balloon note without thinking that this would be almost impossible to secure. Another plan showed a business that was barely profitable for the first two years but then if you put in a reasonable debt service, turned the P&L entirely upside down.

Investors want to see that you have skin in the game. Hardly any business plan that I have seen discussed what the new entrepreneurs are actually putting into their new venture in hard cash. Investors are not really interested is “sweat equity”.  It’s great that you care and want to work hard but they want to know that you stand to lose if something goes wrong. It aligns everyone’s priorities.

Just going through the motions of writing a Business Plan isn’t going to get you the financing you need. It needs to show that you know what you are talking about and can defend your position with facts, not hype.  This is one of the reasons that so many restaurant owners can’t get the capital they need.

Remember – more steak, less sizzle.

Don’t Let Your Business Plan Work Against You posted first on happyhourspecialsyum.blogspot.com

Baking Up a Degree and Bar Louie Heads to South Texas

MRM’s Daily Bite for Thursday features Church’s Chicken, The French Pastry School,  Bar Louie, PizzaRev and Emerson and Cooper-Atkins.

Send news items to Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com.

 Church’s Chicken Sells 76 Restaurants 

Church’s Chicken® sold 70 company-owned restaurants to a new franchise operator – Ampler Chicken LLC, and six Atlanta-area restaurants to an existing franchise operator – Sal Kabiruddin of KSH Chicken Restaurants LLC. The sales achieve numerous goals, including accelerating the reimaging of existing locations, creating an expanded localized presence in two of the brand’s most important areas, and expanding the Church’s Chicken experience, executives said.

“Texas is the birthplace of Church’s Chicken, and our headquarters are in Atlanta. These are both critical territories,” said Joe Christina, Chief Executive Officer for Church’s. “These two areas offer future strategic growth opportunities for the brand in the year ahead. Ampler Chicken is led by industry veterans with a successful track record overseeing the operations of thousands of restaurants. We’re excited and confident that these franchisees will bring energy and enthusiasm to all teams involved.”

In 2017, Church’s made several changes to its executive leadership, agency structure, international growth strategy, and franchisee relationships.

“While the ownership of these restaurants is changing, our company values and dedication to exceptional taste, quality, and service continues and is more important than ever,” Christina added. “Our goal is to create great Church’s experiences guests love, and to more effectively produce fundamental decisions and actions that shape and guide our organization. We are confident that this transition will give these restaurants new, meaningful opportunities to connect with guests and continue our 65-year tradition of excellence.”

Ampler Chicken will be the third-largest multi-unit Church’s franchisee in the country, and the fourth-largest in the world. Ampler Chicken is sponsored by an investment firm with a permanent capital source and a long operating history in Texas. The group’s leadership includes Steve Wiborg – a veteran of the industry with more than 30 years at the franchisee and executive level for global brands such as Burger King. He is respected for his hands-on management approach, forthright attitude, and goal-oriented decision making. Joining Wiborg on the leadership team is Mike Collins, a former Burger King franchisee of the year with considerable operational expertise.

“All of us at Ampler Chicken are honored and excited about our partnership with one of the most respected restaurant brands in the world,” said Wiborg. “We are committed to making these restaurants an extraordinary experience for guests and team members alike. Every Church’s restaurant will provide a rewarding work environment for team members and a place for communities to enjoy excellent hospitality and delicious fried chicken.”

Peak Franchise Capital acted as the advisor to Church’s on the refranchising to Ampler Chicken.

The Atlanta-area Church’s restaurants, will be purchased by Sal Kabiruddin of KSH Chicken Restaurants, the owner of numerous Church’s Restaurants in Orlando, FL. Under the leadership of Kabiruddin, the Orlando-area Church’s experienced significant improvements in sales and satisfaction, which made him the right owner for the Atlanta restaurants.

“Quality food, excellent value, and superior speed-of-service is the secret to running a successful restaurant brand,” said Kabiruddin. “Together with Church’s we’re proud that we have proven more than reliable in satisfying these requirements. We look forward to serving our guests in Atlanta with the same sense of community spirit and connection that we’ve delivered in Orlando.”

Church’s® (along with its sister brand Texas Chicken® outside the Americas) currently has more than 1,650 locations in 27 countries and international territories and system-wide sales of more than $1 billion.

A Sweet Graduation

The French Pastry School graduated new chefs from its Pastry and Baking (L’Art de la Pâtisserie) and Cake (L’Art du Gâteau) programs on Friday, Dec. 22, with graduates showcasing their expertise and learnings through an impressive and visually-stunning Grand Buffet presentation., top photo.

The presentation included whimsical celebration cakes with elements of contemporary cake design such as painted, stained glass motifs and delicate, life-like flower arrangements; signature plated desserts created with an extensive array of bold, colorful, and innovative techniques that highlight sweet, salty, bitter, sour, and umami flavors; towering, world-class chocolate sculptures; and stunning pulled and blown sugar masterpieces with fantasy-inspired pulled sugar flowers and ribbons. 

“We congratulate our students on their dedication to excellence as they embark on or continue their career by opening their own small business or joining great institutions,” said Chef Sébastien Canonne, co-founder of the school.

Chef Jacquy Pfeiffer

The French Pastry School’s mission is to offer an innovative, intensive education in which students are equipped to achieve excellence in the pastry, baking, and confectionery arts.  Students from all over the world learn hundreds of recipes and techniques taught by world-renowned and award-winning chefs, all in state-of-the-art kitchens.  They are taught a broad range of pastry and baking including: Breads & Breakfast Pastries, Sugar and Chocolate Confectionery, Ice Cream and Sorbet, Plated Desserts, Chocolate and Sugar Decoration and Sculpture, Petits Fours, and Celebration Cake Making and Decorating.

“We teach students how to create perfect pastries but are also heavily invested in their careers,” said Chef Jacquy Pfeiffer, Co-founder of the school. 

With small classes, an 18-1 student-faculty ratio, and seven job opportunities per graduate, The French Pastry School of Kennedy-King College at City Colleges of Chicago is the only major culinary school in North America dedicated to all things sweet and baked.  Co-founders, Sébastien Canonne, M.O.F., and Jacquy Pfeiffer, James Beard Award-winning author, are both recipients of the French Legion of Honour Award.

Bar Louie Expands into South Texas

Bar Louie plans to expand into South Texas with its newest franchise partners, Perspective Hospitality Management Services, LLC. Customers can expect locations to open in South Padre Island, McAllen and Round Rock, Texas.

With more than 130 locations across 27 states, this will be Bar Louie’s first time venturing into South Texas, and the new locations will be opened under the leadership of Barry Patel, Raj Patel and Hershal Patel, in total, the new locations will create more than 250 new jobs. 

“Just like every different city in South Texas from McAllen down to South Padre Island, each Bar Louie location will have its own set of diverse characteristics and provide a unique atmosphere to its guests,” said Jill Szymanski, Director of Franchise and Real Estate for Bar Louie. “We can’t wait to see what new experiences potential Bar Louis franchisees will bring to their communities. South Texans will soon come to love the five dollar burgers on Tuesdays and Brews and Blues nights and of course the National Martini Day.”

Bar Louie is seeking to expand both through corporate locations and qualified franchise partners. Perspective Hospitality brings a wealth of experience in food and beverage as well as intimate knowledge of the South Texas market. With current ownership interests in more than eight hotels they have developed and owned over the years more than 22 hotels. 

“Their knowledge of the local markets and the uniqueness of their hotel properties offers the brand and them an opportunity to create a unique experience for their guests as well as others in the market” added Szymanski.

PizzaRev Opens in Shreveport 

PizzaRev is challenging diners to expect more from their pizza with a new location in Shreveport t 6301 Line Ave. To mark the grand opening, the growing build-your-own artisanal pizza shop is hosting a “Pizzas for a Purpose” fundraising event with 100 percent of the pizza sales benefitting the Humane Society of Northwest Louisiana, a no-kill shelter located in Shreveport.

Local restaurateurs Mark Florsheim and Cassidy Kin are the owners of the new location, spearheading the brand’s growth in the state. It is the first PizzaRev location in Louisiana.

“As we grow into new markets, our top priority is finding the right franchisees to introduce PizzaRev to the community,” said Ed Yancey, director of franchising for Cleveland Avenue, parent company of PizzaRev. “Mark and Cassidy are the perfect people to make PizzaRev the new favorite pizza concept in Shreveport, and they represent the ideal franchisee we work to find in every new market – experienced multi-unit operators who will be strong ambassadors for the brand.”

PizzaRev offers a fully customized dining experience that empowers guests to craft a personal pizza, including any of the 30+ toppings, for one price. The restaurant also serves custom entrée salads, while the Taproom boasts 41 draft beers, signature cocktails and a variety of wines. Most unique to PizzaRev, and what enables the restaurant’s unprecedented speed of service, is the custom-built, 900-degree stone-bed oven. 

PizzaRev is also committed to creating rewarding and supportive relationships with franchisees like Florsheim and Kin through  corporate assistance, including training, marketing and operational support. PizzaRev is currently franchising, operating more than 45 locations with an additional 200+ additional franchises under development across Mexico and 17 states: CA, CO, FL, GA, NV, NY, OH, SD, TN, TX and UT. 

Emerson To Acquire Cooper-Atkins

Emerson will acquire Cooper-Atkins, a manufacturer of temperature management and environmental measurement devices and wireless monitoring solutions for foodservice, healthcare and industrial markets.

“Temperature management in food retail and restaurants is a dynamic market due to increasing regulatory requirements, rising labor costs and the proliferation of locations where fresh foods are prepared and served,” said Robert T. Sharp, Executive President, Emerson Commercial & Residential Solutions. “This acquisition further strengthens our ability to meet the evolving needs of our cold chain customers – from grower to retailer – to help provide consistent and safe control of food and other temperature-sensitive goods.”

Cooper-Atkins is a strong complement to Emerson’s global cold chain business, which includes the ProAct™ Services portfolio for supermarkets and the Cargo Solutions business, which provides real-time perishable cargo tracking and monitoring services, he added.

“We see food safety as a critical need that will shape demand in our end markets,” said Emerson Chairman and Chief Executive Officer David N. Farr. “Cooper-Atkins’ strong brand reputation and leading portfolio of automated temperature and monitoring solutions broadens our access to the foodservice industry.”

Cooper-Atkins’ food quality portfolio strategically expands Emerson’s broad cold chain portfolio of products and services for producer, retail, industrial and transportation customers. The added expertise from Cooper-Atkins significantly extends Emerson’s global capabilities in monitoring food, its preparation, and other high-value shipments throughout the entire supply chain to preserve freshness and quality.

Headquartered in Middlefield, Conn., Cooper-Atkins is a privately-owned company with approximately 150 employees, and has offices and operations in Ohio, Florida and Singapore.

The acquisition is expected to close within the next 60 days, subject to various regulatory approvals.

Baking Up a Degree and Bar Louie Heads to South Texas posted first on happyhourspecialsyum.blogspot.com

Three Things Operators Should Focus on When Developing and Pricing Menu Items in 2018

“Ask the Expert” features advice from Wade Winters, Vice President of Supply Chain for Consolidated Concepts Inc. Please send questions for this column to Modern Restaurant Management (MRM) magazine Executive Editor Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com.

This post was written by Tyler Norman, Charlie Lewis and Wade Winters.

Q: What should restaurant operators focus on in 2018 when developing their menu items and pricing?

A: This has been a very interesting year for the restaurant industry.  There have been many ups and downs that included a flood of bankruptcies and acquisitions, major CEO/CFO changes, legislation that dramatically impacted the restaurant industry, and relatively speaking, food commodities have come down in cost compared to prior years. 

To make matters worse, competition continues to grow as the restaurant world becomes oversaturated.  When one restaurant closes, it seems that two more pop up.  And the type of competition expands to include grocery stores, food trucks, convenient stores, home delivery services, and the list continues. Adding to the complexity and challenges, customer traffic is down about two percent compared to last year.

Taking these factors into mind, what should restaurant operators focus on in 2018 when developing their menu items and pricing?

Menu Balance

First, the food needs to taste good and menu prices need to be reasonable for the customers. People are looking for ways to stretch their dollar but aren’t willing to sacrifice quality.  It doesn’t make sense to get into a price war with your competition; however, consider including something extra so the customer feels they got more value out of their purchase. The dining experience needs to be affordable and rewarding for repeat visits.

Menu Size

A second consideration is the size of the menu.  Many restaurants make the mistake of thinking that if they add more items to their menu, they will attract more customers and increase sales.  This theory often back-fires because a large menu confuses the customer and increases the number of products that a kitchen needs to stock and prepare.  This results in increased labor and increased food cost.  Consider reducing the size of your menu and simply be the best at what you offer.  It may be counterintuitive, but a more focused menu could increase sales, and it will reduce labor and food cost.

Food Waste

Another area to consider is waste. Utilizing every by-product will not only improve your food cost, it will give your restaurant credibility for sustainable practices. Consider using your “scraps” and promote menu items as such, i.e. “kitchen sink soup” or “leftover succotash.” If portrayed the right way it can give restaurants an advantage with customers who appreciate the zero-waste mentality, not to mention getting credit for the honesty. Add the fact that it is essentially cost free from a product standpoint, and you have a win-win!

While there are still many unknowns for 2018, there is no doubt that there will be more competition, more labor challenges and commodity food cost volatility. By keeping the above three considerations in mind, however, restaurant operators can sail through the changes.

Three Things Operators Should Focus on When Developing and Pricing Menu Items in 2018 posted first on happyhourspecialsyum.blogspot.com

Using Intuitive Sensual Thinking to Heighten Guest Experience

Every restaurant owner and manager knows a great meal is about more than the food. Guests are clamoring for an experience. 

A great dining experience is about getting more pleasure out of your meals – and getting more pleasure from the people you have meals with.

Everyone goes out to eat for a good meal, but many times the experience is disappointing. Even though we go to a restaurant to eat, what makes it a great experience is the energy of those who serve the meal.

A great meal is less about what you eat than how you eat it. Intuitive eating is aimed at improving every dining experience and perhaps making for a healthier diet along the way. For restaurant industry workers creating an intuitive eating experience by using sensual thinking is easy.

The concept of intuitive eating is deceptively simple. Focus on one meal at a time to get the most pleasure and nutrition from your food. Notice what you see, smell and taste. Check in with your body to see if you’re really hungry – because sometimes we keep eating when it’s actually time to stop.

A great dining experience is about getting more pleasure out of your meals – and getting more pleasure from the people you have meals with.

Here are a few ways industry workers can use intuitive sensual thinking to turn every meal into a great experience:

Smile Before you Speak

Your smile is energy that people can sense. Smiling is our human way of sharing the intangible spirit of good-will. Sometimes a smile is just a smile – other times, it’s a moment of Peace. Always a smile makes the diner feel welcome.

Know Your Menu

Instead of just the name of a dish, describe how the food looks and tastes. This will make mouths water. What we sense with our eyes and mouth stimulates our appetites. You are an artist painting the picture of a great meal.

Note the Aroma

When food is placed, compliment the fragrance. Help the diner notice the effort the chef has made to create a beautiful plate. This focuses your clients on the food, pleasure and healthy eating. You are raising their sensual awareness and the pleasure of eating.

Be Grateful

At the end of the meal, express gratitude. When you are glad to meet people, they are glad to meet you. Gratitude is the human gift of mutual respect. Your diner will feel great and so will you!

All jobs are demanding. Working in the restaurant industry is a constant sensory experience. Be sure to take a minute at least once an hour to reflect, breathe deeply and recharge your own sense of what makes an eating experience great.

Using Intuitive Sensual Thinking to Heighten Guest Experience posted first on happyhourspecialsyum.blogspot.com

Acquiring Mugshots and The Ainsworth’s National Expansion

The Death Knell for Tip Pooling?

When Software as a Service (SaaS) is Not Really Service

When it comes to HR solutions for restaurants, any experienced manager knows that the right tools and technology are essential. Software tools help streamline transactions, reduce burdensome paperwork and decrease the likelihood of human error. From analytics to tools that manage employee and purchasing schedules, the right software allows decision makers to ask better questions, identify relevant trends and respond quickly to small problems before they become big ones.

Software tools help streamline transactions, reduce burdensome paperwork and decrease the likelihood of human error.

Software has its limits, though, and finding them usually doesn’t take too long once you are using it in the real world. Smart business practice involves recognizing nuances and such nuances are lost when technology replaces HR management completely. Humans still have three qualities that software cannot replace – flexibility, creativity and the ability to provide personalized service. Consider how much of all three are needed in the process of managing people.

In an article by Bloomberg Technology, Mercedes-Benz announced that it was in the process of “firing” its assembly line robots. The company’s outdated automation was unable to be flexible enough to meet consumer demand for choices and customization in their products, nor was it able to compensate for the unpredictability of the factory floor. Without the ability to adapt to complex situations, the technology was ineffective without human collaboration.

The same is true of software as a service (SaaS) tools, often sold as HR solutions with the promise of handling the difficult functions involved with managing employees. According to hospitality blog Sirvo, the human-technology partnership is trending. Microsoft CEO Satya Nadella, “proposes that human qualities like creativity and empathy, paired with the raw computational power of A.I., can help solve some of society’s greatest problems.”

But when discussing service, especially when that service requires customization to unique circumstances and needs, there is only so much a computer program can do. It can’t advise best practices in a changing regulatory landscape, and it can’t use years of management knowledge and expertise to help businesses find the answers to complex operations and HR problems it might face.

When guests expect customization, the best combination is software plus people.

When guests expect customization, the best combination is software plus people. Whether it’s payroll, benefits or regulatory compliance, simple mistakes can have far-reaching consequences. When you combine the human element with software, the result is effective technology managed by expert decision makers who know the potential pitfalls before they occur. While a software program can analyze data, it can’t offer guidance on regulatory questions, solve complex problems, help you hire the right people or provide the level of service needed to ensure a company is set for present and future success.

There are solutions beyond SaaS that involve adaptable, creative experts, who can guide your HR practices and responsibilities based on what works in the real world. SaaS still requires the proverbial Rube Goldberg machine of internal staff and all that comes with it (e.g., attendance, vacations, turnover, management headaches, unpredictable expense and overall management attention that could be more effectively focused on making widgets or providing customer service). A superior solution is one in which a company enjoys all the benefits of robust HR technology, along with a streamlined HR organization and the cost advantages that come with it.

To make that work, it is imperative that HR managers and the C-suite find a system that doesn’t compromise on the three elements of flexibility, creativity and personalized service.

When Software as a Service (SaaS) is Not Really Service posted first on happyhourspecialsyum.blogspot.com

Design Your Restaurant Culture

The secret to a purposeful, positive, productive work culture? Delighted team members.

 

How happy are your employees? Employee happiness has a huge impact on customer happiness. You see it every day – team members who are happy and enjoy their work create engaged customers more consistently than team members who are unhappy.

Employee happiness has a huge impact on customer happiness. 

Fully engaged customers have a tremendous impact on a restaurant’s business. Gallup’s research found that fully engaged customers make 56 percent more visits per month at fast casual restaurants than actively disengaged customers do. At fast food restaurants, fully engaged customers make 28 percent more visits each month.

 

The restaurant business is fast paced and hectic at its best. To ensure that every customer is served delicious fare promptly and kindly, every member of every team – reception, wait staff, kitchen, maintenance, etc. – must be of one heart, one mind and one voice.

 

The reality is that our organizations are not great places to hang out in. Gallup’s daily engagement dashboard indicates that only 35 percent of US workers are actively engaged on the job. The global percentage is much worse – only 13 percent. TinyPulse’s 2014 engagement and culture report found that only 21 percent of workers feel strongly valued at work.

 

Leaders must create a culture where values – how people treat each other – are as important as results, every day.

 

How can restaurant leaders create a purposeful, positive, productive work culture? They must craft an organizational constitution, then align all plans, decisions and actions to it.

 

An organizational constitution specifies your restaurant’s servant purpose – it’s “reason for being” besides making money. Your organizational constitution then formalizes your desired values and defines them with observable, tangible, measurable behaviors. It also includes performance expectations in the form of strategies and goals.

 

Let’s look at how Starbucks defines it’s servant purpose, values, and behaviors. Their purpose is to “nurture the human spirit.” Their values include creating a culture of warmth and belonging, growing the company and each other, treating everyone with dignity and respect, and being accountable for delivering promised results.

Make values – how people treat each other – as important as results.

 

Ritz-Carlton takes a similar approach. Their servant purpose is founded upon the motto, “Ladies and Gentlemen serving Ladies and Gentlemen.” Their service values – called “Gold Standards” – are formally defined, monitored, and emphasized daily. Anticipatory service is their unique differentiator. Every team member is charged with building strong relationships, creating customers “for life.”

 

Defining your desired culture with an organizational constitution is, to be honest, the easy part. Aligning all plans, decisions, and actions to these new expectations is the hard part. Leaders must live the new servant purpose and valued behaviors, every minute. Only then will their organizational constitution be considered credible by team members – and worthy of embracing it by those team members.

 

It’s not science fiction. It’s what happens today in world class organizations like WD-40 Company, Ritz Carlton, Starbucks, Assurance, Madwire, and others I’ve studied. It’s real – and it’s rather astounding.

 

I can prove it. When leaders align practices and behaviors to their desired organizational constitution, three things happen within 18 months of implementing the change. Employee engagement goes up by 40 percent. Customer service goes up by 40 percent. Results and profits rise by 35 percent.

 

Don’t leave your restaurant culture to chance. Make values – how people treat each other – as important as results.

 

To learn more on this, watch here.

Design Your Restaurant Culture posted first on happyhourspecialsyum.blogspot.com

Merry Christmas Edition of MRM’s Daily Bite

Cut from a Different Crust: Latest Trends in the Pizza Franchise Industry

“What’s more American than a slice of piping hot pizza?”

While that question contains its share of irony, it does a pretty good job of summing up the long-standing love affair Americans have enjoyed with the perennial winner of the “what’s your favorite food?” contest: pizza.

And the numbers prove that the nation’s love of pizza won’t be cooling off anytime soon:

• One in eight Americans will eat pizza on any given day.
• About 350 slices of pizza are consumed in the U.S. every second.
• 93 percent of Americans (over the age of two) eat pizza at least once per month.
• Three of the five fastest growing restaurant chains in the U.S. last year were pizza joints.

Of course, this has been the case for decades now, which is why pizza has been — and continues to be — one of the most popular restaurant categories in the nation. While every new restaurant faces challenges in a competitive marketplace, given the right conditions, it’s tough for a pizzeria to utterly fail, given the popularity of this quick and inexpensive treat.

But, that doesn’t mean that pizza makers can just sit back, relax and watch the money come pouring in. Despite the nation’s ongoing dedication to pizza in general, there are always changes in taste, preference and style that dictate which pizzas are going to garner the bulk of the market’s attention in any given month or year. And it’s that movement of industry trends that keeps both the pizza franchise owner on his or her toes day in and day out.

The following five trends are carving out winners and losers across the pizza industry. If you’re already aware and accommodating them, congratulations: you’re ahead of the curve. If not, don’t waste another moment getting there, or you just may find someone else has stolen your slice of the pie.

Pizza as a Health Food

Ok, realistically pizza will probably never quite make it to the top of the health food lists for the “my body is a temple” types, but the addition of healthier options to the traditional menu of pizza toppings and ingredients is becoming a necessity in today’s successful pizzerias.

Pizza Magazine reported in December of 2016 about new FDA requirements involving nutrition labeling and how pizza chains specifically have won an important battle in this regard: “Under FDA rules scheduled to take effect May 5, 2017, restaurant chains with 20 or more locations will have to provide calorie counts for all regular menu items, along with a statement about suggested daily caloric intake. More nutritional data—covering total fat, trans fat, saturated fat and carbs, to name a few—must be disclosed in writing upon customer request.

“Earlier versions of the rules, which counted a whole pizza as a single serving, alarmed the pizza industry. After some pushback, revised guidelines allowed most pizzerias to list calories and related info by the slice (as long as they state how many slices each whole pizza contains) and to list a range of calories for build-your-own pies with various possible combinations of toppings.”

This puts pizza franchises in an excellent position to appeal to today’s consumer and highlight healthy menu items, while maintaining traditional recipes that won’t look incredibly unhealthy by comparison.

The modern average pizza enthusiast is a young woman with an active lifestyle and workout routine that enjoys a slice or two, as long as it’s not dripping with grease and loaded with a ridiculous number of calories. To appeal to this target market — and the huge number of Americans who identify with her, at least in their own minds — the largest chains are all adjusting their menus to include health-conscious options such as gluten-free crusts, fat-free and non-dairy cheeses, certified organic toppings, and a wider selection of non-pizza menu items like salads.

Pizza that’s Good for the Environment

Right in line with their increasing health consciousness, the average American pizza lover these days is more conscious than ever of environmental issues, conservation, and supporting sustainable industry practices. This trend is apparent across nearly all industries, and pizza franchises are no different.

Pizza boxes made from 100 percent recycled material, grass-fed organic beef, and just about any other identifiable method of shrinking the chain’s (or the individual location’s) environmental impact is going to sit well with modern customers, especially the huge, coveted Millennial market.

Pizza as an Experience

Whereas in the past, pizza earned its reputation as a fast, tasty, and cheap “meal-on-the-go” that worked well for large parties and other situations where no one really wanted to think about what they using to fill their mouths, the modern consumer is often leaning toward enjoying the experience of high quality food in a fun environment.

Hence, the meteoric rise of fast-casual pizza chains as opposed to the grab-and-go/10-minute delivery model so popular years ago. According to Technomic’s annual survey results, fast-casual pizza chains enjoyed a striking 11.5 percent growth in 2015 as compared to the overall industry average of just 4.1 percent.

Toast’s Restaurant Management blog describes the fast casual pizzeria this way: “The concept is simple — line up like you would at a Subway or a Chipotle. Choose your crust, sauce, cheese, and toppings. Minutes later, you’re presented with your very own customized pizza at a reasonable price.”

These locations are nearly always eat-in restaurants (although carry-out is still a popular option,) and are becoming popular hangouts for teens and young adults after work or school where they can unwind, enjoy quality food that’s customized to their tastes, and good company in a fun atmosphere.

There is one caveat to this trend, however: it’s not taking hold everywhere, as Pie Five recently noted. After announcing that they were closing all corporate-owned locations in Chicago, company spokesperson Jami Zimmerman explained, “the concept just didn’t take off in Chicago the way executives expected.” 

So, do your research before jumping into fast casual pizza feet first. But don’t be surprised if that’s where things are heading in your area.

High-Tech Pizza

No, the pizza itself isn’t being digitized or weaponized, but the manner in which it’s being ordered and delivered has changed dramatically in recent years.

Namely, the advent of online and mobile ordering via a website or app has quickly changed from an interesting option to a feature most consumers expect from their favorite pizza joint. The relative ease and low cost of developing this type of customer-centric ordering system puts it within reach of even small chains and independent locations, so it’s no longer just the purview of the Pizza Huts and Domino’s of the world.

By putting the power of ordering fully in the hands of the customer and automatically tying the site or app into your location’s POS system and delivery queue, it’s fairly easy (and profitable) to increase speed, convenience, customer satisfaction, and revenue simultaneously.

In conclusion, the overall lesson is clear: If you’ve ever considered buying a pizzeria or pizza franchise location, you’re unlikely to find a better time to pursue that dream. The industry is steadily growing at an impressive rate, and there’s plenty of variety and options available to avoid saturation in most markets.

If you currently own a pizza franchise location, you have all the ingredients necessary for a highly profitable and sustainable business enterprise that’s going to be tough to fumble. After all, you’re producing America’s undisputed favorite food. But, you can’t just keep doing what you’ve always done and expect that to be sufficient.

America’s tastes and expectations are definitely changing when it comes to how they order and enjoy their favorite food, and those changes are creating winners and losers across the industry. So, pay attention to trends in the pizza industry, and always give your customers “the perfect pizza pie” for them.

Cut from a Different Crust: Latest Trends in the Pizza Franchise Industry posted first on happyhourspecialsyum.blogspot.com

Change of Guard at Papa John’s and Cleaner Blending at Smoothie King

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MRM News: Teremok – Nesting a Fast Casual Brand

Although Russia’s largest restaurant group, Teremok,  is often referred to as the “McDonald’s of Russia,” there are no burgers on the menu. The fast casual brand’s specialty is bliny, which are sweet-and-savory Russian crepes. These large pancakes bear similarities to French crepes and American griddle cakes, made with a batter of flour, eggs and milk that allows for a pillowy texture. 

After nearly 20 years of serving more than 30 million customers and building the brand to 300 locations, Teremok’s executives set their sights on international expansion. For its first restaurant locations outside of Russia, Teremok chose the ultimate cultural melting pot: Manhattan. The group opened two outposts in Chelsea and Union Square in 2016 and are planning additional expansion in the U.S.

Teremok places emphasis on quality, sourcing local products whenever possible and preparing all menu items in-house with the convenience of a quick-service model.

In this MRM News feature, we discuss the Teremok concept and the challenges of operating an international brand with CEO Mikhail Goncharov and COO Andrey Narkevich.

MRM News: Teremok – Nesting a Fast Casual Brand posted first on happyhourspecialsyum.blogspot.com

Timeless Spirits On Trend

When Coming from the Outside to Take Over Leadership of a New Team – Part 1

When you are the new manager taking over leadership of an existing team, you are coming into a whole scene with its own backstory. You are a new character: the outsider. Your new direct reports, on the other hand, are the insiders. They very likely have plenty of baggage with each other already.

You need to learn the nuts and bolts of your new job … 

The question on everybody’s mind right now is simple: Who the heck are you to be taking over their team?

As the new leader of an existing team, you are, in all likelihood, replacing a boss who has recently departed – by being either promoted or demoted – or who is altogether gone now, voluntarily or otherwise. In any case, you are filling somebody else’s shoes. Rest assured that some of your new employees will feel that absolutely nobody can fill the previous manager’s shoes. Others will feel their lot can only improve under new leadership. Others might have been internal candidates for the job and resentful that an outsider was brought in for the position instead.

and then start learning the nuts and bolts of the job of every one of your direct reports.

As the outsider, you’ve got to figure out who’s who on the team. Every employee comes to work with a different level of ability and skill. They come with different backgrounds, personalities, styles, ways of communicating, work habits, and motivations. Some of them need more guidance than others. They all already know each other, more or less.

And it’s not just your direct reports you’ll have to figure out, but also your own boss and any other managers at your level and above who have dealings with your team. You have a lot of new relationships to build.

Meanwhile, you’re going to be hot on the trail of figuring out what’s what. If you are new to the entire organization, you’ve got an extra layer of orientation and learning to do. In any event, you need to learn the nuts and bolts of your new job and then start learning the nuts and bolts of the job of every one of your direct reports. If you are also a new employee, you need to be welcomed, introduced, onboarded, oriented, and brought up to speed.

While your new employer likely offers a new hire orientation program, it is often sparse and inadequate, especially to get up to speed in a leadership role.

Start looking for resources from which you can start teaching yourself:

• The organization’s big picture: its vision, mission, values, and culture
• Where your team fits in the organization
• Broad performance standards and workplace expectations
• Company systems, practices, and procedures

Some of this may be covered in the formal orientation process. If so, get your hands-on documentation. The more documentation you can study, the better. Ask whoever did the orientation program for more learning resources. Ask HR, your new colleagues, your boss. As you are studying these resources, take good notes and formulate good questions.

Meanwhile, in all likelihood you were not hired solely to be a manager. You will have plenty of new tasks and responsibilities in addition to managing. And this is a new job for you. So you have some very job-specific learning to do too. Start with the current task and responsibilities being handled on your team. Which of these tasks and responsibilities will you specifically own? Find or ask for standard operating procedures, instructions, manuals, checklists, and answers to frequently asked questions.

You would learn all of this eventually in the course of doing the job, but if you want to accelerate your up-to-speed learning, get your hands on these resources as quickly as you can.

When Coming from the Outside to Take Over Leadership of a New Team – Part 1 posted first on happyhourspecialsyum.blogspot.com

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The Hidden Gem that Expands Profits in Catering and Your Restaurant

After a couple of years in the restaurant business, it’s not unusual for your customers to start asking the question: do you cater? The answer? Of course, you do! There is no need to pass up these extra profits.   

A commissary kitchen is the point, the center, or the hub that keeps the main wheels turning and maximizes efficiencies and profits in a food business.

After answering “yes” a few times and then officially launching your catering division, much to your delight, you’re successful. Before you know it, you have not only an in-demand restaurant, but your catering business has exclusivity at multiple venues and your off-site catering for private/social clients reaches four to five events per weekend. 

As these events are in coordination and preparation, you start to notice some challenges the kitchen is having keeping up. For example, employees standing in line to use the 60-quart Hobart to make the extra batches of baked items for the catering events.

Or, while reviewing last week’s food delivery invoice, noting the chef ordered some premade desserts to sell in your restaurant because there was not the time or space to make at least half the desserts on your current restaurant menu. Most likely the cooler space has become a hot commodity, making it more and more difficult to establish a par level for the meats and cheeses used for catering. There is simply no room to store items on shelves with correct labels because everything is being shared between catering and the restaurant.

Challenges like these can lead to turning down orders such as one for 500 boxed lunches because you have no cooler space. You must say “no” and watch your competition get the job.         

Your first thought to fix this “problem” with success is to build onto your current kitchen at the restaurant, but the landlord will not allow the expansion. Renting coolers and extra spaces for temporary storage negates your profits, so that option is out. Maybe you should consider moving the restaurant? No, that won’t work. You’ve got nice wait lists on the weekend. Everyone knows your location. It would be a mistake to move.

So, what should you do to remedy these problems? Consider a commissary kitchen.

If a person is a “commissary,” they are the point person for a certain project. A commissary kitchen is the point, the center, or the hub that keeps the main wheels turning and maximizes efficiencies and profits in a food business.  

Consider the Pros

Let’s look at some of the pros of a commissary kitchen:

Has adequate space for production of all catered event food

• Prep tables
• Mixers
• Baker’s racks
• Ovens
• Fryers
• Flat top
• Grill

Provides adequate cooler/freezer space for all catered event food. This one item is so critical. You can prepare ahead of time when you know there is a large event on the calendar. You can make the 500 phyllo tartelettes, 1,500 hors d’oeuvres, 3,000 cookie dough balls, etc., and freeze them in advance. This is simply not an option in your current restaurant’s kitchen space.

Provides the space and staff that can make desserts and hors d’oeuvres ahead of time for your restaurant’s busy season.

Creates opportunity to increase your catering profits by doubling or tripling your catering revenue streams. For example:

• Add a wholesale line of your most popular items and sell them to other restaurants or retail food shops.
• Sell retail items to your restaurant and catering customers.
• Become the caterer for a local hotel.
• Greatly increase your delivery service to your customer database of your most popular catered/restaurant items.
• Cater events with guest counts more than 500 that you had to turn down in the past simply because you had no room to make the food.
• Handcraft baked items, rolls, croutons, etc., for your restaurant to increase your restaurant sales and percentage of profits on items you had previously outsourced.

If you operate two restaurants, combine all of the production for desserts, rolls, sauces, granola, marinades, salad dressing, etc., and move it to the commissary kitchen. This one item will save you money because you will have:

• Less labor (only one baker needed instead of two)
• Fewer equipment needs
• Lower utilities
• Less management
• Cheaper insurance premiums because there are fewer locations with less equipment
• A more accurate par level that you can stay on top of for all your weekly food purchases
• During seasonal down times in catering, cross train your staff so that they can be back-up staff for your restaurant.

Consider the Cons

What are the cons of a commissary kitchen? Businesswise, I really can’t think of one.

If you add a commissary kitchen to your restaurant and catering model, I guarantee you will have lower food costs and better cost of goods sold percentage because everything is all in one location. If you manage it correctly, your profits should be at least three points better. That’s three percent of your gross sales. Now that’s a savings.

How do I know all of these things? Because my company had several locations that made the same items in three locations. I had the driver that sped across the city to pick up a pan of lemon bars, not once but many times. I paid too much for staff, too much for in-company deliveries, too much for extra inventory, too much, too much, too much. And I did it over and over again.      

For the past three years, we have had a commissary kitchen that has consolidated many of these costs and the company’s net profits have soared I would never go back to where we were before our commissary kitchen. It’s been a game changer, a company changer, and a personal life changer for me, the CEO.  

In the restaurant world, the next economic hiccup could be just around the corner. Having a catering revenue stream greatly expands the business and levels out those ups and downs.  Incorporating into that catering revenue stream a commissary kitchen not only serves the catering business and the restaurant, it also provides the hub that keeps you ahead of the competition and more profitable. With a commissary kitchen, you are ready and prepared to take on any new business that comes your way. That’s proactive and smart for profits.

 

The Hidden Gem that Expands Profits in Catering and Your Restaurant posted first on happyhourspecialsyum.blogspot.com

Sexual Harassment 101 for Restaurants

How to handle sexual harassment claims can be overwhelming and terrifying for every business — from small restaurants to major chains. But it shouldn’t be. 

Regrettably, at some point, some who run or manage restaurants become aware of sexual harassment. Here are a few tips that will help you address sexual harassment quickly and successfully.

Brief History of Sexual Harassment

The Civil Rights movement and subsequent Title VII of the Civil Rights Act made it illegal to discriminate against employees on the basis of sex.  As an outcome of this act, it became illegal to sexually harass employees.

This act also created the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC is a government agency responsible for enforcing federal laws around discrimination in the workplace because of a person’s race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability, or genetic information. Failing to be up-to-date on EEOC guidance can result in harm to your employees and your business. In 2016, the EEOC resolved 97,443 charges and secured more than $480 million for victims of discrimination.

Laws enforced by the EEOC apply to all types of work situations, including hiring, firing, promotions, harassment, training, wages, and benefits. The EEOC also protects those who have been exposed to such discrimination. 

What is Sexual Harassment?

Sexual harassment means, simply, unwanted sexual advances in the workplace. One type of sexual harassment is “quid pro quo”, meaning “this for that”.  This is what people most think of when they think of sexual harassment.  These would-be situations where sexual favors are a requirement for employment actions.  “If you don’t sleep with me, I’ll fire you” would be a textbook example of quid pro quo sexual harassment.  The other type of sexual harassment is creating a “hostile work environment”.  A hostile work environment is where employees around you create an environment with unwanted sexual content.  For example, if an employee posts pictures of women in bathing suits, it may create a “hostile work environment” for female employees in the office.

Sexual harassment is likely to happen.  As we are now seeing in the news, sexual harassment affects every industry — from the media to politics to business.  The public tends not to see the frequency of these incidents because it is kept confidential for the most part.  But typical HR departments do receive many complaints.  A conservative rule of thumb is to estimate on average one sexual harassment complaint a year for every 50 employees.  If you have 10 employees, within five years it is likely you will receive a complaint.

Documenting a Complaint Protects You

The number one mistake managers make with sexual harassment is avoiding it.  I have seen many managers receive a complaint, quickly determine the complaint does not justify more action, and then dismiss the issue without documenting the complaint or the rationale for dismissing the issue.  Say an employee is complaining she doesn’t want to be scheduled with another employee. He’s always asking her out for a date, and it is making her uncomfortable — what should you do?

While it might seem minor, it should be treated as a complaint of sexual harassment and be documented and investigated. Documenting a complaint doesn’t mean it is definitely harassment.  It simply enables the manager to track the facts: whether or not harassment occurred or if there is even sufficient evidence to conclude its harassment.

Remember, it’s the manager’s obligation not only to protect the business but also the people involved. So, you are better off documenting even the most minor incidents rather than brushing them off.

Resolve Potential Harassment Issues Before Making Any Accommodations

Well-meaning managers sometimes alter the employee shifts or schedules in an attempt to resolve a harassment complaint but that could be seen as retaliatory action against an employee who has made a complaint.  As I mentioned above, the first step is to document the complaint.  Once this is done, you should work with those involved to address the issue.

Here’s an example of steps you might take to resolve the issue include: 

• Conducting a prompt and thorough investigation into the complaint that maintains the confidentiality of those involved as much as you can.  The investigation doesn’t need to be more than talking one-on-one to the parties involved and any apparent witnesses to determine facts.
• Disciplining the harasser and/or requiring them to participate in training, depending on what you find.
• Reminding the person being investigated that they must not retaliate in any way against the complainant.
• Documenting the investigation and the action taken.

Make sure you document each of these steps. Often any one of these steps puts an end to the issue and improves the working environment for your employees. If the harassment continues, more serious action may be required.

Should you receive or become aware of a potential harassment complaint, address it head on.  By adhering to a strict rule of documenting the facts of even complaints that are determined to be invalid, you can protect your employees and your business.

 

Sexual Harassment 101 for Restaurants posted first on happyhourspecialsyum.blogspot.com

Gamification Menu in Vegas and JBF Angel Award Winners

TSYS To Acquire Cayan for $1.05 Billion and Jack in the Box Sells Qdoba for $305 Million

TSYS To Acquire Cayan for $1.05 Billion

Global payments solutions provider TSYS  will acquire Cayan in an all-cash transaction valued at approximately $1.05 billion. Cayan, a portfolio company of Parthenon Capital Partners, provides technology led acquiring services to more than 70,000 merchants and 100+ integrated partners in the U.S., mostly through their flagship Genius platform.

Post-transaction TSYS and Cayan will serve approximately 730,000 merchant locations with annual processing volume of over $138 billion.

“The acquisition of Cayan strategically complements our merchant goals to become a leading payment solutions provider to small and medium size businesses in the U.S. by delivering ‘best in class’ services and solutions.” said M. Troy Woods, Chairman, President and Chief Executive Officer, TSYS. “TSYS already has tremendous scale and distribution capabilities. The addition of Cayan’s unified commerce solutions puts us in a strong competitive position to jointly offer a broader set of value-add products and services to our partners and merchants.”

“Cayan and TSYS are aligned in our strategy to provide cutting-edge payment solutions and a robust product offering to merchants across the U.S.,” said Henry Helgeson, Co-Founder and Chief Executive Officer, Cayan. “We’re excited about the opportunity to bring innovative products to a broader customer base.”

In a conference call, TSYS executives cited that attractive projected revenue and expense synergies – including distribution channel optimization and reduced processing costs made the deal attractive. They anticipate the leading-edge gateway significantly expands TSYS’ existing capabilities in integrated payments as well as:

• Extends sales and distribution reach through expanded partnership network in high growth verticals

• Adds material scale to TSYS’ merchant segment, advancing our goal to become the leading payment provider to small and medium sized businesses in the U.S.

• Attractive financial profile, accelerating TSYS’ growth and accretive to adjusted diluted earnings per share in 2018

The Board of Directors of TSYS has approved the transaction, which is expected to close in the first quarter of 2018, subject to regulatory approvals and other customary closing conditions.

The transaction is expected to be modestly accretive to TSYS’ net revenue growth and adjusted diluted EPS in the first full year post closing.BofA Merrill Lynch and Greenhill & Co., LLC are acting as financial advisors and Alston & Bird LLP is acting as legal advisor to TSYS. Financial Technology Partners LP is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Cayan.

Jack in the Box Sells Qdoba for $305 Million

Jack in the Box Inc. entered into a definitive agreement to sell Qdoba Restaurant Corporation to certain funds managed by affiliates of Apollo Global Management, LLC for approximately $305 million in cash, subject to customary closing conditions and adjustments. The wholly owned subsidiary of Jack in the Box  operates and franchises more than 700 QDOBA MEXICAN EATS^® restaurants.

The transaction is expected to close by April 2018. The company expects to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan, as required by the terms of its credit facility.

Lenny Comma, chairman and chief executive officer of Jack in the Box Inc., said, “For the past several months, we have worked closely with our financial advisors and evaluated various strategic alternatives with respect to Qdoba, including a sale or spin-off, as well as opportunities to refranchise company restaurants. Following the completion of this robust process, our Board of Directors has determined that the sale of Qdoba is the best alternative for enhancing shareholder value and is consistent with the company’s desire to transition to a less capital-intensive business model.

“At the time the Company acquired Qdoba in 2003, it had 85 locations in 16 states, with $65 million in system-wide sales. Over the past 14 years, net units have grown at a compound annual growth rate of 16 percent. Today, Qdoba is the second largest fast-casual Mexican food brand in the U.S., with more than 700 locations in 47 states, the District of Columbia and Canada, and system-wide sales of more than $820 million in fiscal 2017. Keith Guilbault, Qdoba Brand President, has assembled a talented and experienced management team, and we wish them, the franchisees and all of the brand employees continued success.”

Apollo Senior Partner Lance Milken said, “We are extremely excited to be acquiring Qdoba and look forward to working with the management team, employees and franchisees to continue building the Qdoba brand. We are firmly committed to Qdoba’s continued growth as a leading fast-casual restaurant operator.”

Morgan Stanley & Co. LLC is serving as financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal counsel to the Company in connection with this transaction. Apollo was advised by Morgan, Lewis & Bockius LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Deutsche Bank Securities Inc., and PJ Solomon.

The company intends to provide guidance for fiscal 2018 in connection with its presentation at the ICR Conference on January 9, 2018.

Apollo had assets under management (AUM) of approximately $242 billion as of September 30, 2017 in private equity, credit and real assets invested across a core group of nine industries.

TSYS To Acquire Cayan for $1.05 Billion and Jack in the Box Sells Qdoba for $305 Million posted first on happyhourspecialsyum.blogspot.com

Three Ways to Impact Business During the Holiday Season

Chilly air, sparkling lights, and tree lots: signs the holiday season is fast approaching. As winter rolls around, boosting restaurant sales and retaining customers is no easy task. However, the solution to offsetting seasonal sales losses and driving loyalty often lies in subtle, targeted marketing. To make things a little easier on you this year, we’ve dug into historical data from December 1 through January 10 and extracted some exciting findings about customer trends. Here are three solutions for impacting your restaurant’s business this holiday season.

Catering: The Gift That Keeps on Giving

For restaurants offering catering, planning for events like company holiday parties can offset potential lulls. To do so, take stock of your data for insights about which customers purchase large quantities of food before the holidays. Reach these potential customers by offering catering discounts and creating email messaging during Week One and Week Two of December, reminding them that you can take care of the office Christmas party. When planned effectively, catering represents a lucrative revenue opportunity to make up for the historical dip in sales around December 25  and after New Year’s Eve.

 

Lapsed Customers: Keep Them on the Nice List

Your lapsing customers are actually a huge, underutilized market segment that you should be targeting. We know that leveraging both new customer acquisition and reactivation is the balancing act of all restaurant-marketing teams, but ignoring reactivation strategies during the holidays to only target new customers with seasonal specials overlooks potential revenue gains. After shopping subsides, your lapsing customers’ finances may be spent, so discounts and coupons may motivate behavior. Take a look at the graph below: with a few exceptions, average checks follow a downward trend into the new year. Use your customers’ previous transaction history and purchasing behavior to create marketing campaigns targeted on specific days such as December 25, December 30 and January 1. 

 

 

Ho, Ho, OLO

Simply developing online ordering is the beginning of the journey, not the end. This is never more true than during the holidays, when your customers may not want to dine outside the comforts of home. According to the data, the period after Christmas Eve and through Week One of January is the best time to create campaigns for driving online ordering. Individuals and families may be burnt out on preparing food, cooking meals, and cleaning up. While dining out during the holiday provides an easy and quick respite from any stress, some customers may simply want to order online, pick up food, and eat at home. Eliminate inefficient media spends and ineffective impressions by creating targeted messaging that reminds your customers of the value of having someone else cook the food after the holidays.

 

When it comes to restaurant marketing, there’s no quick fix for affecting seasonal sales. There are, however, strategies for taking advantage of seasonal trends. It takes a bit of creative thinking, insightful analytics, and marketing footwork, sure, but the rewards of capitalizing on these three, data-driven ways for impacting business during the holiday season will keep you jolly all year long.

 

Three Ways to Impact Business During the Holiday Season posted first on happyhourspecialsyum.blogspot.com

Should a Cardboard Baler Be on Restaurants’ Christmas List?

There are obvious benefits of cardboard balers to your business and other, less obvious, advantages follow on from these. A cardboard baler is not restricted to an indoor location; they are flexible and robust enough to be kept outdoors as well. Bins are what people are used to using in everyday life but nowadays there is an all-round better solution for businesses in the form of a cardboard baler.

Cost Savings

All businesses want to spend as little on their overheads as possible. Installing a cardboard baler will go a long way to ensuring a minimal spend on waste. Think of a stand-alone cardboard baler, as a replacement for multiple cardboard bins, which need collecting on a weekly or sometimes more regular basis. The waste management company that empties the bins will charge to empty any bin that contains waste on collection day, meaning bins that are not even full get charged the same amount. This is evidently a waste of money and unnecessary expenditure.

Research at QCR shows that if you’re spending more than £20 a week on waste management, a baler could be a more cost effective solution. All cardboard can be processed through the baler, compacted and tied together to make a bale, which can then be collected by a recycler rather than a waste management company. The difference here is that baled cardboard is a much more sought after commodity than loose cardboard. Recyclers will either collect the bales for a small charge or more often than not for free. The collections can be arranged on a weekly or fortnightly basis depending on how many bales are stacked up per week. Businesses that produce mill size bales are also in a position to gain revenue from the recyclers, as their value is high enough to warrant a payment. In conclusion there really is no comparison between dumping loose cardboard in bins and baling cardboard in terms of cost.

Space Savings

Some larger businesses also use skips as well as bins. Even with a large indoor or outdoor waste area, a skip and multiple bins will take up a significant amount of space. These working areas should be easy to navigate with no hazards or objects in the way. The situation becomes more of a worry for businesses like bars, restaurants and small retail outlets that often have small waste areas and have to cram bins into the tight space. Not only does this restrict room to manoeuvre but it also gives off a poor impression for customers who may well be disapproving of an area full of unsightly bins. More space and a more attractive waste area are easy to achieve when a cardboard baler is installed. As previously mentioned, the singular baler acts as a replacement for one or more cardboard bins. A cardboard baler has the footprint of one bin, so the space savings are there to see. The flexibility of a cardboard baler also means it can be kept in the indoors, leaving a significant amount of space outside for something new like a storage or seating area.

Time Savings

Flat-packing cardboard is a mundane and time consuming task, which is nearly always a necessary job when bins are solely used to dispose of cardboard. Flat-packing is the only way to exploit space in bins otherwise whole cardboard boxes would fill a bin up in no time, resulting in even more expensive bin lifts. A cardboard baler handles whole boxes so flat-packing is no longer required. There is a large range of cardboard balers, which all have different apertures to handle small boxes through to very large boxes. The bulky nature of bins and skips usually means they cannot be located in a convenient place. Ideally they would be situated close to the source of the waste but this is generally not possible. Staff have to walk from the waste source to the outdoor bin area, which takes up a significant chunk of labour hours each week. This is where having a cardboard baler inside easily outperforms outdoor bins and even an outdoor baler. Positioning a cardboard baler indoors stops the need for unnecessary walks outside, which saves on labour hours and waste cardboard can be dealt with quickly.

Health and Safety

Loose cardboard is messy and is often seen overflowing in bins and on the ground at businesses that do not use a cardboard baler. Cardboard that has fallen or been placed on the ground can easily be classed as a fire hazard and inspectors would see this as a huge negative. Loose cardboard can easily be tripped over as well, which is a danger for staff and it will have a knock-on effect for the business should any accidents occur. Baling all cardboard means the waste is tied together and it can be stacked out of the way, reducing the risk of fire and removing the tripping hazard.

Green Credentials

Lastly, using a cardboard baler considerably improves the green credentials of any business. Messy and voluminous bins and skips are not going to get good marks from government inspectors, who would much rather see a cardboard baler being used. A neat and tidy business is also going to get the seal of approval from customers who would rather return to a business they know looks after environment.

 

Should a Cardboard Baler Be on Restaurants’ Christmas List? posted first on happyhourspecialsyum.blogspot.com

Top 10 Most-Viewed Meatless Monday Recipes of 2017

A year-end review of the Meatless Monday website’s 1,000-plus recipes revealed that the most-viewed recipe this past year is Jamaican Jerk Tofu. Shaking up the notion that tofu is boring or plain, this recipe offers up tofu made flavorful with a marinade that combines barbecue, savory and sweet flavors. The recipe also provides tips for tofu to soak up maximum flavor.

Pasta stood out as four of the top 10 recipes include pasta. One of these, Cherry Tomato Pesto Penne, comes from Meatless Monday President Peggy Neu.

“This quick, easy meal is a delicious meatless option. I’m glad to see many of our followers discovering exciting meatless recipes shared by our bloggers. We encourage anyone interested to check out our database,” Neu said.

Expect plant-based recipes will continue to excite palates in 2018. According to the National Restaurant Association’s “What’s Hot” for Menu Trends in 2018, based on their annual survey of over 700 chefs, “veggie-centric/vegetable-forward cuisine” will be popular.

Here are the top 10 most-viewed recipes with their links on MeatlessMonday.com. 

Jamaican Jerk Tofu: – The tofu in this recipe soaks up the flavor-rich marinade.

Black Bean Meatless Balls and Zucchini Noodles: Zesty black bean meatless meatballs are served over zucchini noodles, or “zoodles,” giving this dish a unique twist.

Cherry Tomato Pesto Penne: Cherry tomatoes are a refreshing addition to penne topped with fragrant pesto sauce. This recipe comes from Meatless Monday President, Peggy Neu. 

Banana Date Smoothie: Dates add sweetness and rolled oats add texture to this tropical smoothie.

Zucchini Tomato Curry: Garlic, ginger and onion are sautéed sweet and fragrant, then seasoned with garam masala, cumin and coriander to perk up fresh tomatoes and sliced zucchini.

Easy Veggie Lo Mein: This is a quick, veggie-packed version of the Chinese takeout favorite.Bell Pepper Egg Rings: Bell pepper serves as a beautiful edible egg ring in this delicious breakfast.

Lentil Burgers: This recipe, perfect for a Monday burger, features lentil patties spiced with red chili and thyme, and topped with alfalfa sprouts.Sweet Potato Mac and Cheese Bake: A mouthwatering take on the traditional, this dish incorporates sweet potatoes, replacing some of the cheese.

 Spinach Lasagna: A surprisingly sumptuous meatless lasagna, this dish features fresh spinach and herbs and a blend of white beans, tofu and nutritional yeast.

Top 10 Most-Viewed Meatless Monday Recipes of 2017 posted first on happyhourspecialsyum.blogspot.com

Sentinel Acquires Captain D’s and MRM Holiday Giveaway

The #ManicMonday edition of MRM’s Daily Bite has news from Sentinel Capital Partners, Beyond Meat, Cargill, Techstars and Ecolab, Chase Hospitality Group and Holt Renfrew and a Modern Restaurant Management (MRM) magazine Holiday Giveaway. 

Send news items to Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com. 

Sentinel Capital Acquires Captain D’s

Private equity firm Sentinel Capital Partners acquired Captain D’s, the franchisor and operator of 530 Captain D’s restaurants in 21 U.S. states from Centre Partners. Terms of the transaction were not disclosed. Founded in 1969, the Captain D’s system consists of 227 franchised and 303 company-owned locations with established strongholds in the American Southeast and Midwest. 

“We are very excited to partner with Captain D’s highly-experienced and accomplished management team,” said John McCormack, a Sentinel senior partner. “Captain D’s holds a unique market position and was recently recognized as one of the top 10 brands in America for consumer loyalty. Captain D’s continues to attract younger guests and is the clear category leader. Moreover, its same-store-sales growth over the past decade is in the very top QSR tier regardless of category.”

Bruce Pollack, a Managing Partner of Centre Partners, stated, “We are very proud of our successful investment in Captain D’s.  Through our partnership with Phil Greifeld and his management team, we revitalized the Captain D’s brand, accelerated growth through new unit openings and improved performance through best-in-class execution.  Captain D’s is well positioned for continued growth and we wish the team every success under new ownership.”

Captain D’s CEO, Phil Greifeld, a 22-year QSR industry veteran who has led Captain D’s for the past seven years, commented, “Centre Partners recognized an attractive opportunity to acquire a differentiated, seafood-themed concept in the QSR segment of the restaurant industry. During the past four years, Centre Partners provided expertise and resources that were instrumental in achieving our shared objectives.  We are grateful for the support of the Centre Partners team as we move on to another exciting chapter. Sentinel’s more than two decades of experience in the restaurant franchising sector makes the firm an ideal partner for us as we enter a new phase of expansion. We see significant opportunities to grow inside our existing footprint as well as into new regions. Our brand has never been stronger.”

“Captain D’s provides highly attractive and consistent unit economics for its franchise partners,” added Michael Fabian, a Sentinel partner. “This has fueled substantial growth in new franchise sales and openings over the last several years. We look forward to partnering with Phil and his talented team to help accelerate this growth in years ahead.”

Since its inception, Sentinel has made eight other restaurant franchise investments, including Border Foods, a  QSR franchisee in the Taco Bell system; Checkers/Rally’s, the largest franchisor and operator of dual drive-thru hamburger QSRs in the U.S.; Falcon Holdings, one of the largest QSR franchisees of Church’s Chicken restaurants; Fazoli’s Group, a franchisor and operator of Italian fast casual restaurants; Huddle House, a leading franchisor of family dining restaurants; Newk’s Eatery, a rapidly growing market leader in the fast casual restaurant segment; Southern California Pizza Company, the largest Pizza Hut QSR franchisee in the greater Los Angeles market; and TGI Friday’s, a global franchisor of casual dining bar and grill restaurants.

Beyond Meat Introduces Beyond Sausage

Beyond Meat® added Beyond Sausage™ to the plate. The latest innovation delivers on the juicy, satisfying taste and texture of pork sausage, but with more protein, 43 percent less total fat, 38 percent less saturated fat, 27 percent less calories and 26 percent less sodium than traditional pork sausage. In keeping with the brand’s promise to help consumers looking for healthy options to continue to Eat What You Love, the company is launching Beyond Sausage exclusively at the Whole Foods Market Pearl Street store in three  flavors: Original Bratwurst, Hot Italian and Sweet Italian.

“I love Beyond Sausage first and foremost because it’s truly so enjoyable to eat but also because I see it as an advance in our team’s relentless march toward a perfect build of meat from plants,” said Ethan Brown, CEO of Beyond Meat. “Though we aren’t there yet, I’m encouraged by the progress we’ve made with Beyond Sausage and look forward to hearing what the consumer thinks.”

Beyond Sausage is an assembly of pea, fava bean, and rice protein organized to deliver against the unique texture of pork sausage. Trace amounts of beet lend the meaty red color. Coconut oil ensures mouth-watering juiciness. And it’s all wrapped in a 100 percent plant-based casing derived from algae. Like the Beyond Burger, the company used its proprietary approach to braiding and binding proteins, fats, minerals, and water to recreate the basic architecture of meat.

Starting today, December 18, all three flavors of Beyond Sausage will be sold at the Beyond Burger restaurant inside the Whole Foods Market Pearl Street store in Boulder, where The Beyond Burger first launched in May of 2016 and sold out in one hour.

“As a category leader in plant-based meat alternatives, Beyond Meat has revolutionized how consumers get their protein,” said Red Elk Banks, vice president of Whole Foods Market’s Rocky Mountain region. “We’re thrilled to introduce the Beyond Sausage to our Boulder shoppers, and proud to partner with Beyond Meat on the introduction of another innovative and delicious plant-based protein.”

Based in Los Angeles, California, Beyond Meat is a privately held company with a mission of building meat directly from plants. Investors include Bill Gates, actor and activist Leonardo DiCaprio, Twitter co-founders Biz Stone and Evan Williams, Kleiner Perkins, former McDonald’s CEO Don Thompson, Honest Tea founder Seth Goldman, Humane Society of the United States, and Tyson Foods. 

Techstars Farm to Fork Accelerator

Because new technologies can lead the way to a safer, more secure and sustainable food supply, Cargill is partnering with Techstars and Ecolab to create the Techstars Farm to Fork Accelerator launching in Minneapolis in 2018.

“We are thrilled to welcome some of the brightest minds in food and ag tech into Cargill and Ecolab’s backyards,” said Justin Kershaw, Cargill CIO. “This Accelerator allows us to invest our time and resources in technology shaping the future of agriculture, and to address some of the greatest challenges facing the food system. At the same time, we see the partnership with Techstars as a way to inject startup energy inside Cargill, where we are committed to creating a culture that fosters technology innovation through internal expertise and external partnerships.”

The first class, featuring 10 of the world’s most promising startups, is set to arrive in Minneapolis in the summer of 2018 for a 13-week engagement, where they will build their business and receive input on developing technology to positively impact the food industry, securing capital and expanding their industry reach.

“Minnesota was literally built by food entrepreneurs more than 150 years ago, and entrepreneurs continue to thrive in the state’s quickly expanding, yet supportive ecosystem,” said Brett Brohl, Techstars Farm to Fork Accelerator managing director. “The Farm to Fork Accelerator will build on this rich history, leveraging Cargill’s reach and leadership in food and agriculture as well as Ecolab’s expertise in safe food, clean water and healthy environments. Combined with Techstars’ proven accelerator model, we can truly help entrepreneurs take their companies to the next level while making a positive social impact.”  

The accelerator is scheduled to continue for three years, engaging both early stage entrepreneurs and late stage startups with a vision for affecting positive change across the food system. Applications for the first class open in January 2018, with a focus on startups that can advance key aspects of the food system including food security and safety, ag tech, consumer goods and supply chain management.

Startups accepted into the program will be offered mentor support from Cargill and Ecolab executives and access to the companies’ market expertise, global connections and investment capital. Techstars’ network of successful entrepreneurs, mentors, investors and other partners also work hand-in-hand with the selected startups throughout the accelerator.

For more information on the Farm to Fork Accelerator,  click here.

Collette Grand Cafe’s to Open Across Canada

Chase Hospitality Group and Holt Renfrew formed a national culinary partnership to open Colette Grand Café in five of the retailer’s locations across Canada. Commencing early 2018, the French-inspired restaurant will replace Holts Café in Edmonton, Montreal, Vancouver, and Toronto’s Yorkdale and Bloor Street locations. 

Inspired by Colette in Toronto, a beloved staple of the city’s upscale dining scene, Colette Grand Café at Holt Renfrew will introduce a chic and sophisticated menu and atmosphere to complement the iconic retailer’s elevated offering. 

“Colette Grand Café embodies the French-style and is the perfect fit for Holt Renfrew to offer clientele the full luxury experience,” said Mario Grauso, President, Holt Renfrew. “Well-known for culinary excellence and creating beautifully designed spaces, we are excited to have Chase Hospitality Group restaurants as a valued partner.”

“We are very happy to be partnering with such an iconic luxury brand as Holt Renfrew, and to be expanding Colette Grand Café across Canada,” said Steven Salm, President, Chase Hospitality Group. “The French-inspired aesthetic and menu are a natural fit for the stylish destination and we are so pleased to bring the two together.”

The partnership marks Chase Hospitality Group’s national expansion, just weeks after the group announced 100% plant-based restaurant, Planta, is expanding to Miami in Spring 2018. Earlier this fall, Chase Hospitality Group launched two new restaurant concepts in Toronto, Planta Burger and Palm Lane.

Colette Grand Café menus and décor will be introduced in Holt Renfrew Edmonton, Montreal, Vancouver, Toronto Yorkdale and Toronto Bloor Street locations in 2018. 

MRM Holiday Giveaway

To celebrate the holidays and the latest work from MRM contributor Donald Burns, we are giving away four Kindle copies of his book, “Your Restaurant Sucks!: Embrace The Suck. Unleash Your Restaurant. Become Outstanding.” 

To enter the giveaway, click here.

Sentinel Acquires Captain D’s and MRM Holiday Giveaway posted first on happyhourspecialsyum.blogspot.com