ez Monkey Acquisition, McAI and Kitchens Without Borders

‘Great Service Wins the Day Every Time’

Smart Labels Expected to Soar Globally by 2020

So called “smart labels,” those with Radio Frequency Tracking Identification (RFID), are pointing the way toward smart infrastructure—with the global market projected to reach $24.5 billion by 2020, according to The Statistic Portal, a leading provider of market and consumer data. Regardless of what they’re selling—food, clothing or something else—retailers are investing in tracking inventory.

Many restaurant operators gathered at the National Retail Federation’s Big Show & Expo in New York City earlier this year to learn more about it, attending a session on, “How Intelligent Labels are Redefining the Future of Retail Across Multiple Industry Segments.”

“As a world leader in intelligent labels, we’re accelerating the adoption of digitally-enabled products across the retail industry,” said Francisco Melo, vice president and general manager of Global RFID of Avery Dennison, who moderated the panel.

The company’s Freshmarx Intelligent Food Industry Solutions is growing its suite of products—including hardware, software and applications. Melo fielded questions about traceability and tracking with RFID as a tool to control costs in the supply chain and order food more efficiently.

“We believe in a future where every item will have a unique digital identity and digital life, enabling businesses to improve visibility and efficiency across the supply chain, to ultimately enhance the consumer experience and improve retail margins,” said Melo.

Also top of mind was the first-year anniversary of the U.S. Food and Drug Administration’s mandate to disclose calorie counts and nutrition information on both menu boards and grab-and-go items. Some operators hadn’t yet transitioned from hand-labeling items.

In partnership with the NRF and the International Food and Beverage Technology Association, Avery Dennison showcased its Freshmarx Ingredient and Nutrition Labeling system, which ensures compliance, allowing operators to print labels on demand with correct nutrition and calorie counts.

Smart labels lead to smart infrastructure. Ensuring compliance and controlling food costs is a great place to start.

Smart Labels Expected to Soar Globally by 2020 posted first on happyhourspecialsyum.blogspot.com

An Insider’s View of Event Planning (Infographic)

Are you planning an event? A few experienced event planners offer their insight into the industry trends. They discuss the ongoing popularity of conferences and trade shows, as well as the major concerns for corporate event planners in particular. It is interesting to note that the top priorities for those attending corporate events in 2018 were networking and learning. The majority of event planners were found to measure both event success and ROI on attendee satisfaction. With the end goal of increasing reachability, event planners are utilizing tools such as social media and email marketing to engage their audiences.

There is growing popularity in paid ads, email marketing, video marketing and even working with influencers when trying to increase reachability of events. Furthermore, more and more event planners are looking toward prioritizing experiential marketing. Finally, another major point of discussion amongst industry insight in the past year is how they select venues. While the majority choose to work with hotels, a large number of event planners opt for conference centres or unusual venues.

 

 

An Insider’s View of Event Planning (Infographic) posted first on happyhourspecialsyum.blogspot.com

MRM Talking With: Judson Holt of Lupe Tortilla

How to Avoid Cheapening Your Brand in 2019

Attracting new customers and retaining existing ones is a constant challenge in an environment as competitive as the restaurant industry.

Offering discounts or special promotions, such as half-price bottles of wine or $5 appetizers, can be winning strategies for attracting more diners, but the benefits also carry an element of risk. For instance, customers may come to expect a discount at every visit and move on to another restaurant once the savings end. Restaurants also risk devaluing their brand by offering promotions too frequently. 

Instead of relying too heavily on discounts, restaurant owners would be better served by focusing on building a loyal customer base. Delivering personalized dining experiences, offering customers the chance to weigh in on new menu offerings and implementing a loyalty program can help transform your restaurant into a go-to destination for guests.

Make it Personal

One way to stand out from the competition is by offering a personalized experience that customers can’t find anywhere else, something 80 percent of consumers say would make them more likely to do business with a particular company. The more you cater to a guest’s unique tastes and preferences, the better chance you have of winning their loyalty. 

Delivering personalized dining experiences, offering customers the chance to weigh in on new menu offerings and implementing a loyalty program can help transform your restaurant into a go-to destination for guests.

Encourage staff to make each guest feel like your most valued customer. Simple steps – such as asking if a reservation is being placed in honor of a special occasion, or tracking the birthdays and wedding anniversaries of your regulars – can create the emotional attachment needed to build customer loyalty. 

Having that information at your disposal makes it easier to create an experience guests won’t soon forget. For example, if a customer’s birthday is approaching, send them an email about available party packages a few weeks in advance. Similarly, if you have a guest who loves trying out new wines, be sure to let them know when you receive a new shipment.

That same degree of personalization can also be applied on a more routine basis. Encourage waitstaff to take note of the items a frequent guest tends to order. Having their favorite drink or appetizer ready before they even have to order it will make them feel welcome. Similarly, guests with young children will appreciate finding crayons and a high chair already waiting for them when they arrive at their table.

Focus on creating an experience versus giving away freebies to repeat diners. Even though it may be tempting to offer a free drink or dessert to familiar faces, it’s better not to overdo such giveaways. Otherwise, guests will start to expect the same treatment every time they visit, and it may make you appear too desperate for their business. 

Turn Your Menu Into a Marketing Tool

Provide more incentive for guests to make your restaurant a regular destination by giving your most loyal customers the inside scoop on new menu items. For instance, if you’re switching up dessert offerings, invite long-time customers to a private tasting of the new items. 

Another way to solicit menu feedback is by attaching a comment card to each check and asking customers to share their thoughts about their experience and your food, including what they liked, or specific items they would like to see added. If guests made a reservation online, send them an email after their visit asking them to leave a review that includes their thoughts on the new menu offerings. If you can, use a platform where the review shows up as “verified.” Consumers reading a verified review may give it even more weight, as they will know the guest really ate at your restaurant. 

Gathering feedback on how your new dishes are being received can give you a sense of what is working and what might need to be tweaked before the next seasonal rush rolls around. In addition, when you ask your regular guests to provide input in the form of a review or comments, they feel even more valued.

Develop a Data-Driven Loyalty Program

Research by global consulting firm Accenture found that two-thirds of U.S. consumers spend more when they feel a sense of loyalty to the brand they’re buying from. One way restaurants can tap into this trend is by implementing a data-driven loyalty program that offers rewards. In the past, most restaurants required customers to show a restaurant-specific card or app in order to earn benefits. Today, restaurant loyalty programs have evolved in a way that is more convenient for the customer, allowing them to earn rewards simply by paying for their meal with a registered credit or debit card. 

To attract even more repeat diners, restaurant owners should consider implementing a loyalty program tied to multiple rewards partners.

To attract even more repeat diners, restaurant owners should consider implementing a loyalty program tied to multiple rewards partners. This way, customers have the ability to choose their preferred rewards currency when they initially register their credit or debit card. Whether it’s airline miles or a gift card to their favorite retailer, your guests will appreciate having a wide selection of options to choose from, particularly millennials. Now the largest demographic in the U.S., Millennials cite the variety of rewards offered as the second most important factor in their decision to join a restaurant’s loyalty program. 

A well-designed loyalty program also gives restaurant owners access to unique customer data, something they can't easily collect on their own. For example, they can learn about their loyal visitors' demographic characteristics, geographic distribution, what time of day they tend to visit the restaurant, and what their favorite menu items are. Harvesting and analyzing this data allows restaurant owners to fine-tune their offerings to convert more visitors into loyal customers who visit frequently and spend more.

By offering personalized experiences, a chance to help shape future menu offerings, and a loyalty program, your restaurant will be well on its way to building a dedicated group of customers who return again and again, without the need to resort to frequent LTOs or deep discounts that can cheapen your brand. 

How to Avoid Cheapening Your Brand in 2019 posted first on happyhourspecialsyum.blogspot.com

MRM Meditations: Melt Shop Founder and CEO Spencer Rubin

How to Start Your Own Craft Beer Business

Between 2012 and 2017, the number of craft breweries in the U.S. increased from 2,420 to 6,266  – an increase of 159 percent.

It’s no wonder craft beer is so popular. 

Starting a brewing business is hard work. But we’re here to help.

Here are five of the nine steps you’ll need to know to start your own brewery business. If you like what you read here, be sure to read the complete nine-step guide on how to start a brewery business. 

1. Choose a Business Model

In our guide on how to start a small business, we suggest that aspiring entrepreneurs choose a niche for the best chance at success. The Brewer’s Association for Small and Independent Craft Brewers identifies four separate market segments for the craft beer industry:

Microbrewery – The BA defines a microbrewery as one that produces fewer than 15,000 barrels of beer per year, and sells 75% or more of its beer offsite. Microbreweries may include a tap room that sells beer onsite.

Brewpubs – Brewpubs are restaurant breweries that sell at least 25% of their beer onsite. In some states brewpubs can sell beer, wine, and spirits from other manufacturers as well, other states prohibit this. 

Contract Brewing Company – In this business model, one business hires another brewery to manufacture their beer. The contract company would handle the other business aspects such as distribution, marketing, and sales.

Regional Craft Brewery – This category is somewhat vague.  The BA definesit as “An independent regional brewery with a majority of volume in “traditional” or “innovative” beer(s).”

Once you’ve decided which overall business structure is the right fit for you, we recommend that you write a business plan. For more information about how to create a business plan, the Small Business Administration has you covered.

2. Get to Know the Legal Stuff

 

The alcohol industry is governed at both the federal and state level.  It’s important that you know and abide by all existing federal laws governing beer and alcohol.

 These resources from the Brewers Association should help you get started with your state law research:

• Self-Distribution Laws by State
• Brewery Sales and Sampling Laws
• Barrel Cap Laws

3. Fill in the Business Blanks

 

Starting a craft beer business isn’t all brewing and drinking. For instance, you need to choose the legal structure for your new business. Sole proprietorship or LLC? Will you incorporate or register a partnership?

 We discussed these options previously in our article 15 Tips for Turning Your Craft Hobby Into a Successful Business.

Licenses and permits

This article walks you through the overall brewery license and bonding process. And, you can find a tutorial and get started with your permits here.

Vendor and Employee Agreements

If you need help with vendor or employment, take a look at Quickly Legal, which offers entrepreneurs, small businesses and startups an easy and inexpensive way to create, sign and manage business contracts.

4. Define Your Brand

 Craft breweries are known and celebrated for their unique brand personalities. If you’re going to get noticed, you need to consciously develop your brand identity.

As we’ve previously discussed,

…your brand is your company’s public identity. Ideally, your brand should embody the best (and most essential) attributes of your company.

The importance of your brand identity cannot be understated – especially in the world of craft beer.  With so much creativity and unique personality already on display, a lackluster brand will fail to take off no matter how good your brews are.

Here are a few questions to guide you as you think about your brewery or brewpub’s brand:

• What personality do I want my brand to project?
• Who will want to drink my beer?
• What can customers get from my beer that they can’t get anywhere else?
• What makes my brand unique? 
• What is the most important part of my customer’s experience?

Your answers to these questions (and others like them) will build the core of your brand. All of your future branding decisions should expand on these ideas. Your business name, your logo, your website design, your beer can or label designs, and your brewpub or tap house decor should all grow from the concepts you lay out here.

5. Optimize Your Packaging

 

Before any consumers can enjoy your beer, it has to be packaged. And, it needs to look good. Luckily, you have more options for packaging than ever before. You’ll still be working with bottles, cans, and kegs. But, new technology in materials and labeling mean you can make smarter choices for your business.

Here are the topics that should be on your radar when planning your beer packaging … 

 

DIY or Hire a Service

Depending on the size of your operation, and thanks to mobile canning and bottling services, you may be able to avoid purchasing, housing, and running your own bottling equipment. Look to see if there are mobile bottling and canning services in your area. Then compare their fees with the costs you’d rack up buying and running your own packaging system.

Alternately, keep in mind that packaging your own beer allows you to control the quality of the process to a more exacting degree. But, it also means training and paying staff to run the machines and paying for repair costs.

Bottling vs. Canning

Bottles are the traditional choice of craft breweries. But, cans are growing in popularity.

Purists will claim that beer tastes better from a bottle. But, cans keep beer fresher longer, are more eco-friendly, and are cheaper to ship due to their lighter weight.

The differences don’t stop there. Bottles offer the flexibility of a cap, neckband, and label to share your packaging design. But, cans offer more physical space for design.

There’s no wrong choice. But, don’t make a decision without weighing the pros and cons.

 

Choosing Your Packaging Design

When it comes to packaging design, consider both the materials the design will be printed on and the package graphics.

There’s a dizzying array of bottle label materials to choose from; including paper, matte film, glossy film, metalized film, wood finish film or clear film. Each of these communicates a different message to your consumer; so make sure to select a label material that reflects your brand identity.

Cans don’t offer quite so many options. You can print directly on cans or apply a plastic shrink-wrapped sleeve.

Printing directly on the can limits the number of colors you can use and it’s hard to achieve bright vibrant colors. Can sleeves offer a more vibrant look and a quicker turn-around. 

Once you know what material your design will appear on, you can enlist the help of a professional designer. Make sure to let them know the dimensions and materials for your packaging, as well as detailed information about your brand and the product itself.

The more information you can provide about your brand personality, mission, and beer, the better. These details equip the designer to create a design that will embody your beer and your brand.

There’s no doubt about it – starting a craft beer business is hard work. But, brewing is a work of passion. And for those who follow its call, it’s a rewarding, fulfilling career.

 

Click here to read the complete nine-step guide on how to start a brewery business. 

How to Start Your Own Craft Beer Business posted first on happyhourspecialsyum.blogspot.com

Restaurant Industry Groups Lose Bid to Overturn New York’s Payroll Deductions Law

Restaurant owners in New York City have recently been grappling with New York’s payroll deductions law, which requires fast food employers to implement a procedure for employees to donate a portion of their wages to non-profits.

Two prominent restaurant industry groups—the National Restaurant Association (a foodservice trade association) and the Restaurant Law Center (its legal arm)—brought a lawsuit to challenge the law, entitled Restaurant Law Center v. City of New York, et al., 17-cv-09128, arguing that the Deductions Law was unconstitutional because it forced owners to:  (i) engage in “speech” by making donations on employees’ behalf;  (ii) “host” or “accommodate” the messages of their employees; and (iii) “associate” with non-profits.

On February 6, 2019, Judge Paul Gardephe of the U.S. District Court for the Southern District of New Yorkissued a 70-page decision (the “Decision”) rejecting the National Restaurant Association’s constitutional challenges.  Judge Gardephe’s thorough Decision provides valuable guidance for restaurants regarding the boundaries of the Deductions Law.

The Deductions Law

The “Deductions Law,” which is codified at N.Y. Admin. Code § 20-1301, and which became effective on November 26, 2017, “requires certain fast food establishments in New York City to create and maintain a payroll deduction system by which employees can donate a portion of their wages to certain non-profit organizationsregistered with the New York City Department of Consumer Affairs.”  Labor organizations are not eligible to receive donations pursuant to the Deductions Law.

Penalties for Violations

Where an employer violates the Deductions Law, the employer may be liable for deductions and remittances plus interest, and civil penalties of up to $1000 per violation.  N.Y.C. Admin. Code § 20-1307(b)(2)(b).  In addition, where an employer has retaliated against an employee seeking to exercise rights under the Deductions Law, the employee may be entitled to reinstatement and back pay.  Id. § 1307(b)(2)(a)-(c).

The National Restaurant Association’s Arguments and the Court’s Analysis

In deciding the case, Judge Gardephe analyzed three main arguments regarding whether the Deductions Law violated employers’ First Amendment rights.

First, the Court addressed whether the Deductions Law forced the employers to engage in “speech” by making donations on employees’ behalf.  Judge Gardephe found that the National Restaurant Association’s argument was too broad because “[u]nder the First Amendment, an entity’s mere transmission of others’ speech does not necessarily constitute speech of that entity.”  (Decision p. 19).  The Court noted that, “[u]nder the Deductions Law, although fast food employers serve as an intermediary for their employees’ speech by administering a payroll deduction scheme, they have no discretion as to the recipient of their employees’ donations – they merely follow their employees’ instructions.  Given these circumstances, the employers’ mere act of sending a check to an employee’s designated non-profit recipient is not speech.” (Decision p. 21).  

Second, Judge Gardephe analyzed the plaintiffs’ argument that the Deductions Law forces fast food employers to “host” or “accommodate” the messages of their employees.  He rejected this argument because the Deductions Law does not prevent fast food employers from donating to any causes they support, or voicing disagreement with organizations supported by their employees.  Instead, the Deductions Law only requires employers to “perform the ‘ministerial act’ of administering payroll deductions.”  (Decision p. 25).  Therefore, the Court held, the Deductions Law does not affect food employers’ ability to communicate their own message.  (Decision p. 23).

Third, Judge Gardephe considered the National Restaurant Association’s argument that the Deductions Law compelled fast food employers to “associate” with non-profits, because donations would appear in the financial records of the employers, the banks used to transmit donations, and in certain publicly-filed disclosures.  Judge Gardephe found that there was no evidence suggesting that the financial disclosures would lead others to believe that the restaurants were associating themselves with the non-profits designated by their employees, or that employers would be perceived as expressing a message of support for these non-profits.  (Decision p. 27).

Based upon his analysis, Judge Gardephe rejected the National Restaurant Association’s constitutional challenges to the Deductions Law.

Conclusion

New York’s Deductions Law (and laws like it in other jurisdictions) outs the onus on restaurant owners and managers to facilitate their employees’ non-profit donations.  Although many restaurant owners have questioned the wisdom and validity of the law, Judge Gardephe’s Decision confirms that the law is constitutional. Therefore, restaurant owners and managers should work with experienced counsel to make sure that they properly implement the Deductions Law.

Restaurant Industry Groups Lose Bid to Overturn New York’s Payroll Deductions Law posted first on happyhourspecialsyum.blogspot.com

Restaurant Solutions: How to Track Expenses the Smart Way

When it comes to running your restaurant, your expenses are probably one of your biggest headaches. If they get out of control, you’re in the red. Yet, it can be challenging to stay on top of them with so many other tasks to take care of. Here’s how to ensure that you manage and track your expenses like a boss.

1. Use Restaurant-Specific Software

It’s a lot more challenging to stay on top of restaurant expenses if you’re using a spreadsheet to log them. Accounting software is really affordable these days, and some are geared specifically toward restaurants, and include features like inventory management and purchase order management.

If you use inventory software (in addition to or as part of your accounting software), your expenses are recorded as soon as you place an order for more artichokes. And your point-of-sale system can link up to your inventory and ordering systems so that, when someone orders the second-to-last ribeye, you automatically put in an order for more.

2. Assign Someone to the Job

It might be your job as restaurant owner or manager to oversee expenses, but if anyone else is involved with inventory management, get a plan for who will be responsible for logging the expenses in your accounting software.

If your chef does the ordering but you handle the expense management, make sure he gives you a receipt or invoice for everything that he orders. Your best bet is to scan any outstanding invoices into your accounting system to pay rather than letting them pile up on your desk and risk them getting lost in the mess. Teach the process for getting expenses logged in the training process to ensure that new hires know how to handle them.

3. When You Charge It, Log It

Using a business credit card can help you keep cash flowing in your business, but use it wisely. First, pay off the balance each month, otherwise you end up spending far more than you budgeted for anything you charge, thanks to interest rates.

Second, record the expense as soon as you buy something with your card. You may not remember in a few weeks that the $298.45 charge on your card was for your napkin service, so record and categorize the expense as soon as you charge it. This saves you time later digging back through invoices to match to the expense.

4. Organize Your Expense Categories

Tax season won’t be as much of a headache if you do some planning and organizing ahead of time. Use expense categories in your accounting software that align with what your accountant will need come tax time.

Spend just a few minutes at the end of each month making sure each expense is appropriately categorized so you don’t have to spend hours doing this when it’s time to file.

5. Log Every Single Ingredient Used

It may seem like a waste of time to calculate the expense for a dash of salt in a recipe, but a dash multiplied times hundreds of dishes a year adds up. When you’re calculating your food cost, account for every spice, every drizzle of oil. This helps you determine what the cost per dish is, which then helps you figure out what to charge so that you maximize profits for that dish.

Also, factor in overhead costs like marketing and rent into the calculation for your food costs. Each dish should include enough profit to help cover these expenses…and then some.

6. Make It Easy for Employees to Track Time Worked

Hopefully you’re not still using a paper sign-in sheet for your employees to “clock in” each day. There are apps and software that not only let employees clock in digitally (removing any potential for human error or fudging hours worked) but also let you create their schedules and send them via text or email.

When your staff can access their schedules from their phones, you cut down on the time you spend answering calls or texts asking, “when’s my shift?” and can focus on other things. When you use time-tracking software, payroll gets easier (and more concise), too.

You don’t have to be a CPA to get a handle on your restaurant expenses. A little organization upfront and ongoing maintenance means you can spend just a few minutes each week managing expenses rather than untangling a mess once a year.

 

Restaurant Solutions: How to Track Expenses the Smart Way posted first on happyhourspecialsyum.blogspot.com

Getting Millennial Guests in the Door … and Staying Longer

The Essential Restaurant Kitchen Cleaning Checklist

When it comes to running a commercial kitchen, cleanliness should be a top priority. Patrons not only appreciate a clean kitchen, but the law also requires it. Whether it's traditional restaurants or fast food chains, different establishments must follow foodservice and health regulations to keep their space up to code.

So what's essential to keep your kitchen spotless? From daily maintenance to annual checkups, the restaurant kitchen cleaning checklist below has all minor and major tasks you need to do throughout the year. 

During and After Shifts

Don't wait until closing time to clean everything at once. There are several tasks you can do during and after shifts. Aside from washing tableware, glasses and other utensils, put the following on your cleaning checklist:

• Wash cutting boards, countertops and prep table surfaces
• Wash slicers, grinders, mixers, microwaves, coffee makers and other prep equipment
• Wipe down and disinfect prep station surfaces after preparing food
• Brush off griddles, grills and other cooktops after making meat, poultry or fish
• Empty drip trays from grills, griddles and other cooking equipment
• Clean any major spills or splatters off surfaces, floors or equipment
• Place dirty kitchen rags and linens in the laundry (separately from uniforms)
• Place dirty aprons and coats in the laundry (separately from kitchen rags and linens)
• Empty garbage cans frequently
• Refill empty paper towel rolls or soap dispensers

End of the Day

When the day is done, it's time to thoroughly clean different areas and equipment in your kitchen. Make sure the tasks below are completed: 

• Sweep or vacuum the floors of your kitchen, pantries and walk-in fridges
• Mop the floors (use strong degreaser to scrub major grease spills)
• Clean floor mats
• Clean the washing stations and sinks
• Wipe spills and splatters off the walls
• Wash and sanitize all countertops and prep area surfaces
• Clean beverage dispensers and gun heads
• Clean and disinfect griddles, grills, burners and other cooktops
• Change foil linings on all ovens, grills and cooking equipment
• Clean deep fryers
• Run a load of kitchen rags and linens in the washing machine (separately from uniforms)
• Run a load of aprons and coats in the washing machine (separately from kitchen linens)

Weekly

Throughout the course of the week, you and your staff should be thoroughly cleaning equipment. Always consult your manufacturer's operation manual for specific cleaning instructions. Do the following once a week:

• Boil out deep fryers 
• Pour drain cleaners down floor and sink drains
• Clean and delime coffee equipment
• Clean and delime faucets, sinks and spray heads
• Clean the interior and exterior of ovens and steamers
• Wash exteriors of other cooking equipment and refrigeration units

Monthly

Over the course of the month, you should give your entire kitchen space and equipment a deep cleaning. Always check the manufacturer's operation manual for cleaning instructions. Below are tasks to include on your checklist:

• Scrub off spills and splatters from the walls and ceilings
• Clean the condenser coilon refrigeration units every 1-3 months depending on dust or grease buildup 
• Clean the drain pans, tubes and air filters on refrigeration units
• Wash the interior of reach-in or walk-in refrigeration units
• Clean the exhaust hoodsat least every 4-6 weeks
• Empty grease traps
• Calibrate thermostats and ovens (if necessary)
• Switch out pest and inspect traps (if applicable)

Yearly

Whether it's annually or sparingly, the following should be done on a limited basis throughout the calendar year: 

• Clean and descale ice machinesat least every six months
• Clean and delime dishwashers
• Check plumbing and schedule HVAC work to prepare for winter

The Essential Restaurant Kitchen Cleaning Checklist posted first on happyhourspecialsyum.blogspot.com

Tax Tips for the Restaurant Employer

As an employer, you have multiple responsibilities regarding employee tip income. You must maintain the tip reports of your employees, withhold their income taxes and their portion of Social Security and Medicare taxes, and then report all of this information to the IRS, as well as report your (the employer) income taxes and share of Social Security and Medicare taxes.

You first need to receive the record of tips from your well-trained employee.  After your employee has reported the tips she has received via written statement, you must verify the accuracy of her report. Assuming she has been staying on top of her tip count and her report is legitimate, you can then begin inputting her figures to withhold her income taxes and her share of Medicare and Social Security taxes on IRS Form 941, Employer’s QUARTERLY Federal Tax Return.  Though it isn’t withheld from employee wages, you are also responsible for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, and depositing the associated taxes.

Unreported Tips

However, some employees do not properly report their tips.  As the employer, you aren’t responsible for your share of Medicare and Social Security taxes on unreported tips until the IRS issues a notice and a demand for the taxes.  Even then, you are not liable to withhold and pay the employee’s share of Medicare and Social Security taxes on unreported tips.

Service Charges

Something to consider in tipping tax is the service charge, which is a fee placed on the customer by the employer. Sometimes called auto-gratuities, these fees are typical when a party has six or more guests and are designed to cover the extra work involved with serving a larger table.  Because these fees are assigned by the employer, service charges are always seen as income for the employer, even if they are split up between the staff.

Finally, employers who operate “large food or beverage establishments” must file Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, to report their receipts from food and beverages to the IRS, along with any tips employees have returned to you as their employer.  You will also use this form to settle allocated tips – which are allocated among tipped employees.

Following these guidelines will help you to properly report and pay taxes on tip income received by your employees.

Tax Tips for the Restaurant Employer posted first on happyhourspecialsyum.blogspot.com

Local Voices, Global Choices: The Key to Managing Restaurant Brands

The familiar phrase “think globally, act locally” should resonate for companies managing a basket of restaurant chains.

An effective franchise management strategy focuses on identifying strong chains, streamlining expenses, bringing in an aggregation of potential contracts and raising the potential for profitability.

While executives with solid business experience and a global perspective on the industry are most likely to achieve long-term success, the real differentiator involves how closely they can adapt their strategies for each individual restaurant they oversee. This involves a careful balancing act that involves the evaluation not only of location performance but also of menu items, community outreach, and conveniences such as takeout and delivery options.  

Based on the experience I have gained, I am sharing a brief overview of how these factors all come together. Before going into specifics, however, it is worth commenting on the importance of the buying power of the parent company. An effective franchise management strategy focuses on identifying strong chains, streamlining expenses, bringing in an aggregation of potential contracts and raising the potential for profitability.

It’s also vital to have a successful business model—one that not only helps the individual restaurants, chains, operators and franchisees, but also benefits the corporation and its shareholders.

Managing a basket full of very different and scalable restaurant chains would also not be possible without an experienced management team. Attracting some of the best and brightest restaurant industry experts to the C-suite can ensure that the management company remains at the forefront of the chain restaurant management arena. 

Opening a New Location or Enhancing an Existing One Requires Careful Analysis

What is the best way to optimize the performance of multiple restaurant brands with locations within a specific geographical area? This task involves considerations that involve real estate. The restaurants should be set up in locations that are far enough apart so that they do not cannibalize each other’s business. As those who operate fast-casual restaurant chains can attest, people will drive only so far for a burger, so eliminating the chance of competitive intrusion is a must. But restaurant location is merely the first component of this analysis; it is also important to analyze the demographics of an area’s customer base and its preferences before opening a location.

For example, a restaurant whose menu items have greater appeal to an urban or millennial clientele will likely perform better in a city than it will in a more rural area. With regard to existing locations of a chain, collecting feedback from local managers and customers alike is valuable. Undertaking a full-scale brand analysis—which can entail the use of site visits, questionnaires, town hall meetings and customer opinion—is a crucial tool in determining what can be done to enhance existing stores’ performance. 

Menus Should Match Local Tastes

With many restaurants featuring locally produced items on their menus, customer input is critical to determining which menu items work and which do not. As one example, the Little Big Burger chain offers pimento cheese as a topping for burgers in its Charlotte, North Carolina locations—because pimento cheese is tremendously popular in the American South. The same item is not offered in Little Big Burger’s hometown of Portland, Oregon, where the cheese is not as popular. However, Tillamook cheeses, produced in Oregon, are sufficiently popular nationwide that they are available in the chain’s locations on both coasts.

In addition to specific ingredients, cooking style preferences may also vary by region; whereas Oregonians favor a ground chicken burger, Carolinians favor a fried chicken sandwich, a difference reflected on actual menus. Craft beer selections from local breweries can also be offered to enhance the appeal of a specific location. Specific menu items can be evaluated as limited-time offers to gauge their popularity.  

Obtaining Feedback from Each Location is a Must 

Since it is vital to stay up-to-date on the performance of each location of every restaurant brand under the parent company’s management, it is crucial to appoint brand leaders who are responsible for reporting on a regular basis to the executive team. One-on-one conferences with these brand leaders on a weekly basis can be a powerful way for management to keep tabs on what is taking place at each location.

Electronically, management can also view each location’s sales performance at any time, with sales reports generated every morning that can include comments from the restaurant manager—and that can be acted upon by management in real-time if necessary.   

Stay in Touch with Evolving Trends

The advent of the digital era has made social media an indispensable tool for expanding the spotlight around one or more restaurant brands. For example, geotargeting the zip codes around specific restaurant locations can be an effective tool to attract customers with special menu offers via Instagram and Facebook.

Similarly, it can reap great rewards to identify and work with the top “food influencers” within the region where a restaurant is located. In one instance, a food influencer in Charlotte, North Carolina was engaged to design and promote a unique burger concept, which was then actually offered at local restaurant locations—with a portion of the sales being donated to the influencer’s favorite charity.

Separately, with expanded delivery and takeout options increasingly resonating among millennials, it can pay for the parent company to dedicate time and resources into developing these options, and working with delivery companies appropriately.

Evaluate Success Using Sensible Metrics

Finally, it is important for the parent company to utilize the appropriate metrics when it comes to evaluating the success of a particular location. Rather than revenue, the key number is store-level percentage cash flow. Using this measure, a restaurant location with a smaller-than-average footprint may still rank among the top performers in the chain. Ranking the various locations in each of its chains this way can allow the parent company to determine not only per-store performance but give it a better picture of how the entire chain is performing overall.

In short, factors on both the local and global scales can contribute to the ultimate success of any company managing a basket of restaurant chains. Attention to these factors can mean the difference between an empty restaurant and a packed one—and has substantial payoffs in the long run for customers, restaurant managers and the parent company alike. 

Local Voices, Global Choices: The Key to Managing Restaurant Brands  posted first on happyhourspecialsyum.blogspot.com

Why Brands Need LSM Now More than Ever

Local Store Marketing (LSM) is by far the most important, impactful way for restaurant brands to connect with customers.  

Why?

 How else are can you emotionally engage with the community to introduce your brand’s story, products and services, especially in today’s chaotic mobile-saturated, intensely competitive times?  As of 2018, consumers see an average of 5,000 ads per day – how on earth are brands going to rise above all that noise when it comes down to delivery and dining options?  In essence, how can brands remain in business without LSM?

With LSM seeming like such a needed, timely weapon to tell their story and drive sales – why aren’t brands devoting more LSM time, resources or budget?  The proof is in the data with more than two thirds of marketing budgets are spent locally, but not on LSM.

LSM’s origination and intent was to ensure operators of restaurants and retail brands keep their story, products, services and value circulating in the local community of consumers and businesses.

LSM’s origination and intent was to ensure operators of restaurants and retail brands keep their story, products, services and value circulating in the local community of consumers and businesses.  Let’s also not forget, around 90 percent  of overall US commerce remains being spent inside brick-and-mortar locations– where the volume and frequency is anchored by restaurants – hence the weighted impact of LSM on overall US commerce is massive. 

Who’s responsible for activating LSM? 

Historically, brands have leaned on in-store resources that report into operations, not marketing. This process requires the operator to step outside their four walls and socialize the brands’ community value, interest in sponsoring school-fundraisers, non-profits, first-responders and more.  This usually requires some direction from corporate met with lots of time planning in discovering the neighboring businesses, scouring for local events, in addition to working with corporate marketing for the needed collateral.   

 Over the years I have spent most of my time and efforts in trying to help marketers and operators get smarter, more efficient and more effective in improving their local store marketing efforts to drive sales and traffic.  After all this research and development – I’ve officially concluded: in order for restaurant brands to leverage the power of LSM, they need to stop relying on the wrong resource and here’s why:

Bandwith:  By its nature a restaurant operation is busy and chaotic.  People are yelling, food is burning, staff running around, employee no-shows, pipes bursting – it’s a full-blown circus each shift.  Also, asking operators to do LSM isn’t a quick task – particularly if you want the LSM to be effective.  Assembling lists, coordinating logistics, canvassing, door-to-door outreach, following through with prospects and sponsorships requires hours and hours of time.  

Priorities:  Operators weren’t hired to do marketing – they were hired to orchestrate the complex restaurant.  The requirements to be a successful GM has little-to-nothing to do with being a good marketer.  Their ability to manage chaos yields rewards and recognition within their current system, far greater than their ability to market the brand locally.   Here's  a real-time example of one of the most successful brands in the US hiring a GM, notice no mention of LSM.

Skill Set:  Cold solicitations are challenging.  Some operators are simply not comfortable doing tasks that most would consider extremely socially extroverted activities. Cold solicitations are challenging. 

Wth those three points,  it is truly amazing brands are still relying on this tired playbook to accomplish the wildly opportunistic LSM opportunity with an operating resource.  So, what strategies can more effective, measurable methods and resources to drive LSM success? If what is being said here is to ditch the dusty old strategy of pushing operators into LSM, what options do we have?

Let’s wipe the slate clean and start with simplifying the strategy and identifying key partners.  At this point anyone who’s experienced LSM over the years has an empathetic understanding of what works – and what doesn’t.  Let’s break down a new recipe for success.

Creative: Cook up a really smart  promotions that will incentivize locals to try your product or service.  Put your Santa Claus hat on and bring gifts of free food to your neighboring schools and businesses – chips, cookies or anything to put a smile on their faces.  This gesture of goodwill will not only positively introduce the brand, but emotionally attach them to your brand.

Targeting:  Map out where to target within the community.  If we wanted to keep it as simple as possible – reaching out to schools, first responders, non-profits and local businesses are incredibly low-hanging opportunities to engage with in the community.  But, it can take a lot of time to assemble a list is and that is one of the primary frustration barriers to LSM.  Identify local database companies available for purchase to decrease the time identifying local targets.  

Distribution:   Getting the message out to your audience takes a concerted multi-dimensional effort.  Once the target list is stitched together, look for the most qualified representative for the brand to distribute the message and canvass the community.  Consider a local agency who can staff brand representatives who can perform 1099 help.  Additionally,  a number of direct mail companies can help drive a hyper-local direct mail campaign.  

Social:  Facebook pages are great for localized store-level distribution, in addition to targeted Facebook, Instagram and Yelp paid ads as well as paid search on Google.

Structured Home for LSM

A single system or platform for LSM is critical for a number reasons:

• Knowledge center for sharing best practices
• Measuring impact against sales and traffic
• Accountability
• Recognition 
• Centralized time efficiencies

There’s really a never-ending carrousel of ammunition to drive LSM. Here are some of the objectives we’ve seen over the years:

• Under performing stores
• Catering / off-premise sales
• Delivery
• Fundraisers
• Community involvement (first responders, non-profits, little league, etc)
• New restaurant openings
• Remodels 
• Construction
• Recruiting local talent
• New product launch

With LSM being the most powerful, immediate opportunity to drive new local customers,  your team needs to wipe the slate clean and  launch a revised LSM attack.  

Why Brands Need LSM Now More than Ever posted first on happyhourspecialsyum.blogspot.com

Is the Soggy Fries Era Nearly Over?

For a consumer to have a positive experience with an on-the-go food item, it is imperative that proper food packaging is used to complement the contents within it.

Everything from the functionality and portability, to the aesthetics and the sustainability of the vessel has a direct impact on the food within the packaging and on the overall experience that a customer has with a product. Having appropriate packaging options available keeps food as fresh as possible, promotes consumer satisfaction and can generate repeat business for an establishment.

Functionality

Packaging plays a vital role in the life of the food that it hosts, so ensuring that it is functioning at its peak will extend the value of the item inside. In order to provide a positive user experience, proper packaging must be used to preserve the quality of the food and keep it as fresh as possible for prolonged periods of time.

Everything from the functionality and portability, to the aesthetics and the sustainability of the vessel has a direct impact on the food within the packaging and on the overall experience that a customer has with a product.

There is a significant correlation that foodservice operators and manufacturers should understand between the kind of food prepared for sale and the type of packaging used to house the food. Educating operators about how to extend the life of a sandwich by properly layering the ingredients to reduce moisture, or about the best packaging options for home delivery, can go a long way when it comes to reducing waste and promoting consumer satisfaction.

Flexible and cheaper compared with the rigid packaging alternatives, paper packaging can adapt to support many functions. Using laminated and two-ply materials to increase heat retention, perforating to release moisture buildup, and adding a window to allow visibility of the product are just a few different functions that paper can achieve. Fischer Paper Products’ future TruView* bag line, for example, focuses on visibility of the food contents. Each bag will have a clear window panel that reveals the top and side of the food: grab-and-go consumers not only know that they’re grabbing a sandwich, they also can easily identify the ingredients.

Whether food is delivered straight from a grill to a patron’s door, waiting to be purchased from a refrigerated cooler, or sitting under a heat lamp for hours, Fischer Paper Products has a solution for a variety of situations that will result in the fulfillment of customer needs.

Portability

As our society shifts to an on-the-go mentality, it is essential that the packaging being used for an establishment’s operation can withstand the implications associated with third-party delivery.

A massive 79-percent surge is forecast in the total U.S. food home delivery market over the next five years, mainly driven by the rapid expansion of delivery companies like Uber Eats, Grubhub, DoorDash, Bite Squad and new players continuously entering the market.1Restaurants reported 1.75 billion delivery orders in 2017. From 2012 to 2017, delivery sales increased 20%, to $16.8 billion.2

As delivery demands grow, as well as the variety of menu items now available for door-to-door service, restaurateurs must battle the challenge of maintaining dine-in quality when delivering.

Restaurants and delivery services have struggled with hot, crispy foods, such as grilled sandwiches, thin-crust pizza and French fries — the white whale of delivery. The insulation that keeps these foods warm while they travel also locks in steam, risking sogginess and overcooking. Thirty percent of delivery-friendly consumers in the U.S. are not ordering fries due to quality concerns, with lack of crispiness at the top of the complaint list. Furthermore, 63 percent blame the restaurant for the delivered food quality, even when a third-party delivery is used.3

Over the past year, Fischer’s New Product Development team spent time trialing materials and structures that could provide a solution for crispy food delivery. The team discovered that results are very situationally dependent, not only on the food, but also on the means of conveyance. A perforated two-ply bag, for example, had promising results, and worked best if traveling in a cardboard delivery box. Based on testing, it became obvious that coming up with the best solution will require close collaboration between operators and vendors.

Packaging Aesthetics

One of the many benefits that stems from the use of paper food packaging includes the opportunity to capitalize on the blank ad space that a paper bag offers. The physical color and design of paper packaging can serve as a traveling marketing platform for a brand as it makes its way from point A to point B and everywhere in between.

If you search “food” and “packaging” on Instagram, about 300 million “food” and two million “packaging” photos will populate. To create buzz around a brand, foodservice operators must understand the importance of visual branding on packaging in order to take advantage of society’s obsession with sharing food photos.

Furthermore, having colored or branded packaging conveys a superior image compared with other products, while still maintaining an affordable cost. Additionally, branded packaging informs consumers about the product inside. For example, if there are two sandwiches, and one package has messaging that informs the consumer the sandwich was made with premium-brand meat, and the other has no messaging, the consumer will be more likely to choose the branded packaging due to the perceived value.

We have the capability to personalize packaging with branding that is specific to an operator. It is advantageous to place a logo on all packaging leaving an establishment to extend the visibility of a brand. Whether a piece of packaging is being carried down the street or found on the ground, it has the potential to serve as prime real estate for brand awareness.

Sustainability

Successful foodservice operators boost sales by paying close attention to current trends and consumer demands, which is why shifting to environmentally friendly paper packaging can have a positive impact on a retailer’s bottom line.

It has been discovered that more than half of consumers will choose environmentally friendly products when given the choice to buy or use a product or service, while 49 percent indicate that they would buy more environmentally preferable products and services if there was more selection available where they shop.4

Meeting the extensive demand for green packaging will not only give foodservice operators an edge over competitors, but it will also help to increase a solid and environmentally responsible customer base.

Given the projected growth of the sustainable packaging market, it is wise for foodservice operators to reconsider the types of packaging being used in their establishment while understanding the benefits of using paper products made from eco-friendly materials.

Government legislation and stringent laws regarding sustainability, increasing consumer awareness toward usage of sustainable and eco-friendly packaging materials, and a growing packaging industry are the major factors fueling the growth of the sustainable packaging market. Projected to experience a compound annual growth rate of 6.5 percent to reach a total market size of $341 billion by 2023, from $233 billion in 2017, the sustainable packaging market is on a steady rise.5

Fischer Paper Products’ TruKraft* product line, scheduled to launch early 2019, will appeal to customers and companies that are looking for ways to enhance their sustainability efforts. Modern consumers are aware of social and environmental issues and keep themselves informed about which businesses are benefiting their community. Meeting the extensive demand for green packaging will not only give foodservice operators an edge over competitors, but it will also help to increase a solid and environmentally responsible customer base.

Now is the time for foodservice operators to reassess what food packaging materials they are distributing and determine if they adequately convey the four main characteristics of packaging that thrives. Sustainability, functionality, cosmetic appeal and portability are the components that are helping to boost sales, create customer retention and raise client satisfaction when it comes to consumer food on-the-go.

1. Cowen and Company., an investment banking firm. 2. NRN.com. 3. NPD Survey *Trademark Pending. 4. Natural Marketing Institute Consumer Research. 5. Research & Markets.

Is the Soggy Fries Era Nearly Over? posted first on happyhourspecialsyum.blogspot.com

Eight Operating Cost Rent Issues for Restaurant Tenants

Restaurant tenants are rarely happy with their operating costs; at best, they’re ambivalent to them and, at worst, they’re upset with them. The two issues that most upset restaurant tenants are ever-increasing operating costs and the landlord’s lack of attention to fully maintaining the commercial property. 

Restaurant tenants can, of course, request a limit on the amount that operating costs can be annually increased, but landlords resist this because these are supposedly true costs passed onto the tenant and not normally a profit center for the landlord. Restaurant tenants should also watch out for other issues buried within operating cost clauses that can cost them dearly. We have detailed these in our book, Negotiating Commercial Leases & Renewals FOR DUMMIES, and summarized them below: 

Administration Fees: If restaurant tenants are paying the property manager’s salary through operating costs, but the landlord adds a 15% administration fee to CAM costs, this can be considered double-dipping (or double billing for – essentially – the same service). 

Landlord operating cost reports to tenants: Many landlords provide only superficial operating cost information to tenants. Sometimes these reports are not only insufficient for the tenant but are not sent out in a timely manner. 

Occupancy levels and occupancy costs: A lease agreement may state that operating costs are charged back to tenants assuming that the property is 95 – 100 percent leased and occupied. This means that if the property is only 70 percent occupied, those tenants carry 100 percent of the operating costs.

Proportionate share misallocations: With restaurants often being located on the main floor of a property, your customers will never need the building’s elevator / escalator. In this case, should you have to pay a proportionate share of elevator / escalator maintenance? Just because a tenant occupies a certain percentage of the building doesn’t mean that they’re equally responsible for all operating costs as well. 

Reconciliation billing: The industry norm is for landlords to budget future operating costs and then reconcile once per year. Restaurant tenants can get walloped with unexpected reconciliation statements from landlords with only 15 days to pay or be found in default. Negotiate so that you are allowed to repay these overages over time (perhaps six months). 

Tenant audit rights: The landlord has a fiduciary responsibility for accountability to the tenants for the money collected from and spent on behalf of tenants. The lease should include tenant audit rights – allowing you to examine the landlord’s books. 

Underestimated budgets on new properties: If you’re leasing commercial space in a new building, don’t be surprised if the operating costs jump 25 to 50 percent more after the first or second year. Landlords have been known to under budget operating costs on new properties to help their pre-leasing program. 

Utilities: Electricity, natural gas, and water may be provided by the landlord or separately metered for each tenant. In some cases, the landlord may have one meter on the property and a check meter on each tenant’s unit to measure consumption. If you’re paying your own utilities to the utility company, you’ll have your own meter. In many cases, the landlord bills back utilities to tenants in operating costs. Make sure that you know – in advance – what the lease agreement calls for so that you don’t have to pay twice. 

For a free copy of their CD, Leasing Do’s & Don’ts for Commercial Tenants,  e-mail DaleWillerton@TheLeaseCoach.com.   

Eight Operating Cost Rent Issues for Restaurant Tenants posted first on happyhourspecialsyum.blogspot.com

In Case of Emergency: How to Deal with Restaurant Flooding

The United States is currently experiencing historic flooding from Nebraska to Minnesota to Wisconsin. The resulting floodwater has the potential to damage food inventory, as well as records, equipment and cause structural damage.

The experts at Steritech shared procedures to follow in the event of a flooding as well as re-opening procedures and flood prevention tips with Modern Restaurant Management (MRM) magazine readers. The local health authority will always have the best, most immediate information available in any affected locale. Instructions of the local health authority should always supersede any information provided in this article.

In Event of a Flooding

• If there are flood waters and/or continuous overflow and/or backup of sewage into the facility, cease operations and close the facility until repairs are made and the facility has been cleaned and sanitized.
• Prevent any unnecessary personal from walking in flood waters or sewage backup to prevent spread of dangerous bacteria to skin, clothing, or other areas in the facility. Contamination can cause rashes, illness, etc.
• Employees tasked with cleaning up flood waters or sewage must wear personal protective equipment – eye protection, gloves, disposable aprons, rubber boots that can be disinfected, etc.
• Discontinue use of toilets, sinks, or equipment than may cause additional backup.
• Do not prepare food while drains are not functioning or while repairs are being made.
• Use a commercial disinfectant with effectiveness against norovirus or make a chlorine bleach solution to disinfect affected areas. Prepare a 1000 – 5000 ppm solution of chlorine by adding five – 25 tablespoons of household chlorine bleach per one gallon of potable water. Remember to use unscented bleach, wear gloves, and make fresh bleach solutions daily. Any food contact surfaces that are disinfected must be rinsed with clean, potable water, and sanitized before use.

Re-opening Procedures

When your restaurant has been closed due to flooding or water damage, these guidelines can help you assess whether or not to reopen and evaluate the availability of food and water for safe operations.

• An establishment cannot prepare food if it does not have a safe water source for food prep and for washing dishes and hands. If the water system was affected by flood or the local water supply was unsafe, the local health department should be involved in clearing re-opening.
• A facility must not sell or try to use/salvage any food that has been in the flood if there are any questions or doubt about its safety. When in doubt, throw it out.
• An establishment cannot prepare food if its physical facility is damaged in a way that will compromise the safety of the food. For example, if the ceiling is damaged and flaking into food, the establishment should not be open.
• A facility can only sell commercially prepackaged food items that were unaffected by the rain or flooding without having a potable water supply.

The following food items MUST be discarded:

• Unpackaged food that has been exposed to flood water or water that is not potable.
• Food in permeable packaging that has been exposed to flood waters or other non-potable water. For example, flour in bags, produce in cardboard boxes, etc.
• Food packaging materials that have been exposed to flood waters.
• Refrigerated food that is in a refrigerated unit where the temperature rose above 41°F for more than four hours or any refrigerated product where the temperature of the food product was uncontrolled for more than four hours.
• Frozen food product that has thawed to a temperature of above 41°F for more than four hours.
• Canned items that have damage to their seams, swelling or dents.
• Any single service/use items that had contact with flood waters.
• Discard any linens that contacted flood waters or launder separately with bleach and dry in a mechanical dryer.

The following items should be treated before use:

• Undamaged canned items that were exposed to flood waters must be disinfected before they are opened. See “Disinfection of Canned Food Exposed to Flood Waters” on page 4.
• Any food equipment that was exposed to flood water or other non-potable water must be disinfected prior to use. This includes ice machines. All ice in ice machines should be discarded, and the machines must be thoroughly cleaned and sanitized before being turned on.

Canned foods exposed to flood waters must be disinfected before they are opened. If the following disinfection steps cannot occur, canned food must be discarded.

All cans, free of rust or dents, must be washed and sanitized before they are opened.

• Wash containers in a detergent solution with a scrub brush.
• Rinse in clean water.
• Disinfect by immersing containers for fifteen (15) minutes in a chlorine bleach solution (see chart, page 2).
•  Inspect cans and destroy any that bulge or leak. After disinfecting, remove containers from solution, and air-dry.
•  Re-label with the name of the food product. Use as soon as possible, since containers may rust, and store containers where they will not be re-contaminated.

Preparation and Recovery for Flood Situations

Flooding can occur after heavy rains or when rivers and streams rise quickly. Large areas can flood in a short time, interrupting power, and damaging property. The resulting floodwater may damage records, equipment, and food inventory, as well as cause structural damage. Local health authority instructions always take precedence over these guidelines.

When flooding is forecasted, the following actions are suggested:

• Remove or elevate vital records, equipment and food to protect from water damage.
• Protect any openings with sandbags at doors.
• Post a temporarily closed sign on door. Call your region or corporate office for assistance with wording or signage, if necessary.
• Secure all cash; turn off electrical equipment or natural gas lines; lock doors; and set alarms. • Be certain that all refrigerated units are equipped with accurate thermometers. If possible, monitor the temperature in the units during the disaster situation.
• Follow all local authority procedures for evacuation of employees and guests.
• Recommended Procedures in the Event of Flooding

Flooding can occur quickly. Human safety is paramount in any situation. Never wade into rising flood waters. In addition to presenting drowning and moving water dangers, flood waters can carry dangerous germs and bacteria that can contaminate surfaces and foods. The following are recommended procedures for ceasing operations and recovery efforts once authorities have given the all-clear for safety.

If there are flood waters and/or continuous overflow and/or backup of sewage into the facility, cease operations and close the facility until repairs are made and the facility has been cleaned and sanitized.

• Barricade area to prevent any guests or employees from being exposed to flood waters or sewage.
• Prevent any unnecessary personal from walking in flood waters or sewage backup to prevent spread of dangerous bacteria to skin, clothing, or other areas in the facility. Contamination can cause rashes, illness, etc.
• Cease all food preparation.
• Call a plumber or other service to repair any isolated flooding from broken pipes, etc. “Snaking” sewer lines to remove debris and obstructions may also be necessary.
• Discontinue use of toilets, sinks, or equipment than may cause additional backup.
•  Do not prepare food while drains are not functioning or while repairs are being made.
• Employees tasked with cleaning up flood waters or sewage must wear personal protective equipment – eye protection, gloves, disposable aprons, rubber boots that can be disinfected, etc.
• Do not allow employees performing clean up on affected areas of the facility to walk into other areas of the facility without washing hands and removing footwear and protective clothing.
• Discard any mop heads or absorbent materials used to clean flooded areas.

In Case of Emergency: How to Deal with Restaurant Flooding posted first on happyhourspecialsyum.blogspot.com

MRM News: The Joy of Functional Food

Interest in functional foods continues to grow at a fast pace, according to a recent report from Kerry, with 65 percent of consumers saying they seek out food and drinks with the added benefit of a nutritional boost.  Kacy Erdelyi, founder of Joyist, a growing brand of organic cafes, with a location in Montclair, New Jersey, embraces this consumer movement. 

The cafe offers a selection of all-organic superfoods ranging from cold-pressed juices to breakfast and lunch grain bowls as well as grab-and go items.

The brand just launched a functional coffee bar featuring a proprietary blend of organic coffee boosted with adaptogens such as mushrooms, chaga, reishi and more to match individual health issues or wellness goals. 

In this MRM News video, Erdelyi discusses functional food, growing a brand and "coffee with benefits."

MRM News: The Joy of Functional Food posted first on happyhourspecialsyum.blogspot.com

MRM By Design: KAIYŌ Creates Cultural Visual Engagement

Five Surefire Ways to Ensure Consistent Guest Experience at Multi-Location Restaurants

Diners expect to be treated as valued guests each time they visit your restaurant. With countless dining options, they’ll have no trouble finding a new favorite if the guest experience doesn’t meet their expectation. This is especially true for multi-location restaurants where a dependable, consistent experience is mandatory at every location.

Luckily, there are a few ways to ensure the great experience is consistent across all restaurant locations.

Monitor and Respond to Online Reviews

Whether you’re asking them to or not, your guests are sharing their experiences on social media, online review sites, forums and more. Considering that 91 percent of 18-34 year olds trust online reviews as much as personal recommendations for dining decisions, it’s something restaurateurs can’t afford to ignore.

While business owners can’t control what guests are saying, they do have control over how they respond. Even a slight increase in a restaurant’s online rating can have a significant impact on their bottom line. In fact, a study by UC Berkeley found that on a scale of one to five, a half-star rating increase on Yelp translates into a 19 percent greater likelihood that a restaurant will be full during peak dining times.

A social media and online review monitoring software that’s designed for multi-location businesses can help restaurateurs stay ahead of guest reviews. This gives restaurant operators more context when actioning negative reviews and streamlines the actions that staff may need to take to resolve issues.

Cutting-edge technology such as text analytics can be used to help teams determine sentiment from reviews and can even detect recurring keywords at each restaurant location. By setting up triggers and alerts, operations teams can effectively monitor and manage any issues that arise. As a result, guests feel attended to, and are more likely to keep coming back.

Collect Feedback through Mystery Shopping

Restaurants with multiple locations have specific standards of service that staff are required to meet to ensure brand consistency. But without being in each location at once, how can restaurateurs really be certain that staff are delivering against the brand standards?

A restaurant mystery shopping program is one way to ensure consistency across all locations. Mystery shopping or “secret shopping” isn’t new, but it has certainly evolved. Modern mystery shopping programs are designed to measure many locations on a regular, frequent basis. Because mystery shoppers now use their personal devices to conduct shops, the results are all available in real-time. Operations teams can assess performance by analyzing all restaurant locations at once, filter results down to a specific regional area, or even single out a specific restaurant location. This means issues can be identified and addressed quickly and efficiently so restaurateurs feel like they’re visiting every location.

Use Connected Devices to Monitor and Improve Consistency

Internet of Things (IoT) devices and sensors can be used to remotely monitor location conditions such as temperature, sound and humidity. The data can help operations teams understand how environmental conditions correlate to customer experience, purchase behavior, revenue and other business metrics.

IoT sensors help ensure consistency across all locations. For example, when a customer orders their favorite coffee they expect to receive the same product regardless of which location they visit; in this case sensors can alert teams if a coffee brewer’s temperature falls outside of the mandated range. Sensors can even monitor the temperature of refrigerators and fryers to ensure food is stored and cooked safely.

Because IoT devices collect and transmit data in real-time, teams can set up alerts to notify the appropriate individuals when action needs to be taken. For example, traffic pattern sensors might alert staff that a restroom needs to be cleaned, based on the level of traffic to that restroom.

Use Mobile Checklists to Ensure Tasks are Completed

Mobile forms software replaces paper and pen checklists, reducing the risk of human error, saving time and reducing costs. When tasks are consistently completed correctly and on time, restaurant operations run smoother, ensuring a positive experience for customers each time they visit a restaurant location.

Mobile checklists ensure staff follow operating procedures and allow management to verify execution, helping to identify and address any issues at one or more locations.

Collect and Act on Customer Feedback

There’s an adage that says what gets measured, gets managed. Another way to ensure your guests are receiving the same, great service at every location they visit is to ask them about their experience.

Surveys are used to measure customer satisfaction (CSAT) against operational standards by asking a set of predefined questions about a guest’s recent dining experience. Surveys are typically distributed by printing a website URL at the bottom of a receipt, which wait staff are expected to bring to the customers’ attention.

Survey results can be digested in several ways. Operations teams can look at which location was visited, which menu items were ordered, and even the weather conditions at the time of their visit. Open-ended text responses can be assessed for sentiment through text analytics.

Regardless of which systems and processes your restaurant implements, the reality is that a consistency across all locations is essential to delivering a delightful guest experience at every visit.

Five Surefire Ways to Ensure Consistent Guest Experience at Multi-Location Restaurants posted first on happyhourspecialsyum.blogspot.com

Does Your Restaurant Need New Equipment?

As a business owner, you have to anticipate the equipment needs for your business that will ensure you meet your customer needs and growth goals. Whether you’re baking, freezing, refrigerating or grilling, equipment is a substantial investment, and the inevitable upgrade or purchase of new equipment after a few years can cost thousands of dollars and put a strain on your budget.

Updated equipment or signage will add value to your business and improve processes for your staffers, but if you don’t want to hinder your cash flow, equipment financing may be the ideal solution. Before reaching out to lenders, there are several steps that will help simplify the process and ensure you receive the financing that is right for you.

Outline Your Requirements 

Do you need to replace or upgrade equipment, or do you need to add an additional piece of equipment to support your future growth? Whatever the reason, you should know what you need to accomplish prior to searching for the best financing solution. Options are plentiful and searching with a purpose will minimize your chances of entering into a transaction that will not benefit you or your business.  

Once you have selected the equipment you need, weigh your options by getting monthly payment quotes from multiple equipment lenders. Pricing is important; however, end of contract purchase options, the type of lender you select, and up-front costs are all significant deciding factors. 

Gather the Necessary Documentation 

The dollar amount of financing you are seeking will determine your application process. Equipment purchases under $150,000 may only require a one-page credit application, and a credit decision could be made the same day you apply. If you are seeking a larger amount, however, your lender may request copies of your financial statements, corporate tax returns, a business plan and audited financial statements of up to three years. The underwriting process is more strenuous with larger purchases and could take anywhere from three to seven days to process.

Select a Lender

Local banks, SBA lenders, equipment finance companies and select food service equipment suppliers all provide financing. While your decision will likely be based on the speed and accessibility of the funds, you’ll also want to make sure your lender is experienced, financially stable and fully-equipped with the financing options that meet your needs.

Ideally, you’ll want to select a lender that can offer equipment leases and loans. This will give you the freedom to choose from a wide range of payment options and terms that best fit your cash flow requirements. While both will allow you to acquire new equipment, understanding the differences between the two will help you decide which is the best option for your restaurant. 

An equipment loan is a sum of money borrowed for the purpose of purchasing equipment. This is an ideal option if you need to purchase a core item that is in constant use, like a range or reach-in cooler. These loans are generally easier to qualify for than traditional term loans and, depending on what you are looking to buy, you may receive enough funding to cover the entire purchase. Once you’ve repaid your loan you will fully own your equipment. 

With an equipment lease, you pay a fee to borrow a piece of equipment. This is similar to a rental agreement because you do not own the equipment; however, you will pay a fee over a period of time for its use. This is an ideal option if you need to trade out equipment frequently because you only pay for use of the equipment as long as the lease lasts. If you find that you would like to keep the piece of equipment you have been leasing, some lenders offer the option of purchasing the equipment at the end of the term. 

Final Steps 

Most lenders will recommend you go through a pre-approval process before making any commitments. Most pre-approvals are good for up to 60 days – leaving you plenty of time to make your final decision. Take the time to study this information and make sure you are comfortable with the terms. After all, this loan will become your responsibility.

Whether you need to upgrade old equipment or purchase something new, equipment financing will allow your restaurant to reach your growth objectives while preserving cash for more important demands. There are a lot of finance intermediaries and payment options can vary substantially, however if you take your time and conduct adequate amounts of research you can obtain the necessary financing to help your company move forward. 

Does Your Restaurant Need New Equipment?  posted first on happyhourspecialsyum.blogspot.com

MRM Research Roundup: Ides-of-March 2019 Edition

This edition of Modern Restaurant Management (MRM) magazine's Research Roundup features the most allergy-friendly restaurant chains, the winter effect on sales and traffic, the restaurant-going habits of Generation Z,  the state of delivery and what people report as life's little pleasures.

Most Allergy-Friendly Restaurant Chains

AllergyEats announced its 2019 list of the Top 10 Most Allergy-Friendly Restaurant Chains in America. Derived from the restaurant reviews of food-allergic diners across the U.S. on the AllergyEats app and website, the list recognizes both small and large restaurant chains that have been ranked highest by food-allergic diners.

The Five Most Allergy-Friendly Large Chains (at least 50 locations)

Maggiano’s Little Italy (4.68)

Chipotle Mexican Grill (4.42)

Longhorn Steakhouse (4.42)

In-N-Out Burger (4.39)

Bertucci’s Italian Restaurant (4.37)

The Five Most Allergy-Friendly Small Chains (fewer than 50 locations)

Burtons Grill (4.85)

Flatbread Company (4.83)

Clyde’s Restaurant Group (4.78)

110 Grill (4.74)

Weber Grill (4.71)

“AllergyEats congratulates the restaurant chains on this list for having earned the highest allergy-friendliness ratings based on feedback directly from the food allergy community,” Paul Antico, Founder and CEO of AllergyEats said. “We appreciate these chains recognizing the importance of accommodating food-allergic diners and for their dedication to supporting the food allergy community. We hope all restaurants will strive to emulate the excellent work of the chains on this list with respect to providing appropriate food-allergic diner accommodations.”

These rankings are based on the compilation and averaging of all individual restaurant reviews by AllergyEats users into chain-specific allergy-friendliness dining out scores. The scoring is based on a 5-point scale, with Burtons Grill garnering the overall best ranking for the third year in a row.  This year’s list marks the seventh consecutive year AllergyEats has released its list with Chipotle Mexican Grill, Burtons Grill, and Maggiano’s Little Italy earning and retaining a spot each year since the list’s inception.  These perennial winners, each offering a different cuisine type, are positive examples of the increased and diverse options available for food-allergic diners. In-N-Out Burger returns to the list this year and is the only fast food restaurant to ever make an AllergyEats Top 10 Chains list.

Sales and Staffing Woes

Optimism for the restaurant industry came to a sudden stop in February, as winter weather halted sales and traffic. Same-store sales growth was -0.6 percent during the month. Restaurants have not experienced negative year-over-year sales growth since May. It was the worst month for the industry since February of 2018, which may be signaling a new troubling trend for chain restaurants. This comes from TDn2K’s Black Box Intelligence™ data, based on weekly sales from over 31,000 locations representing 170+ brands and nearly $72 billion in annual sales.

“February was the month with the worst same-store sales growth rates for both 2017 and 2018, and it was a disappointing month again this year,” said Victor Fernandez, vice president of insights and knowledge for TDn2K. “Sales growth has been negative for the month since 2017, and the cumulative effect was a concerning 5.2 percent drop in sales for February over the last three years. Bad weather seems to be the catalyst that amplifies the effects of the challenges faced by chain restaurants. There are too many restaurant locations and too many players competing in the food-away-from-home category. Any disruption in the usual routine of consumers seems to be enough to cause a downturn.”

Traffic Plummeted In February

Same-store traffic growth was -3.7 percent during the month, which represented a drop of 3.0 percentage points compared with January’s results. “Chain restaurants clearly have a same-store traffic problem. Growth rates for this important metric have been negative each year since the recession. But with traffic results improving each month since October, the industry was trending in the right direction. That obviously ended in February,” stated Fernandez. “The last time the industry experienced worse traffic growth results occurred when some of the biggest states in the country where suffering through enormous back-to-back hurricanes in August and September of 2017.

Regional Results Highlight the Weather Effect

Only three regions saw positive same-store sales growth during February: California, the Southeast and Southwest. The region with the worst sales growth results, the Midwest, seems to have been hit the hardest this winter.

Closer inspection adds some additional context into February. Same-store sales growth was slightly positive on average during the first three weeks of the month. It was an abysmal fourth week that dragged the month into negative sales growth. The worst performing regions based on same-store sales growth during that final week were the Mid-Atlantic, New York-New Jersey, the Midwest and New England.

Strong Valentine’s Day Boosts Fine Dining to Best Performing Segment

Fine dining was the best performing industry segment during February for same-store sales growth. This segment has been consistently achieving strong sales over the last three years. But in the case of February of 2019, the segment’s performance was boosted by strong sales during the week of Valentine’s Day. The latest data shows that consumers who can afford it are increasingly spending more on fine dining experiences to celebrate the holiday. Same-store sales growth for Valentine’s Day week is in double digits compared with February of 2017. By comparison, sales growth for the restaurant industry overall is essentially flat over a two-year period for that same week.

Economic Growth Slows, Growing Family Incomes Support Optimism

“The 2.6 percent increase in GDP during the fourth quarter marked the second consecutive easing in growth”, explained Joel Naroff, president of Naroff Economic Advisors and TDn2K economist. “However, that rate was still above trend, indicating that the expansion is moderating, not faltering.”

The government shutdown likely slowed the expansion further in the current quarter, but most of the loss should be made up by the summer. Thus, a weak first quarter growth number followed by a more solid second quarter is expected.

There are no major reasons to think the economy will either accelerate or decelerate sharply. The expectation is for growth to be similar to what we saw in the first half of the decade. However, unlike that period, consumer income and spending should rise at a solid pace. With labor markets tight, even with more moderate growth in the economy, wages will remain under pressure with labor shortages and faster income gains spreading across the entire economy. The good news is that the growing family incomes would support continued moderate spending gains, not the tepid ones we saw from 2012 to 2016.

Understaffed Locations Continue To Hurt Restaurants

Staffing woes continued for restaurants according to TDn2K’s People Report. The latest metrics show annual turnover rates increased again for hourly employees and all levels of restaurant management during January. With restaurant turnover at historically high levels and rising, it is not surprising that the average restaurant company said 34 percent of their locations are not fully staffed at any given time based on responses to People Report’s 2019 Recruiting and Turnover Survey. A driver of superior sales and traffic performance is delivering on exceptional service, which is close to impossible for restaurants to deliver when frequently understaffed.

Staffing challenges are compounded by the fact that the industry continues to expand its number of locations and add jobs. Chain restaurant year-over-year employment growth was 2.1 percent during January. The industry has been adding jobs at a pace greater than 2.0 percent for the last three months, adding to the staffing needs in an already extremely tight labor market. An acceleration of wages and salaries is an expected consequence of these 

Americans and Global Cuisine

We like to think of America as a melting pot, but that also American cuisine is a result of a melting pot of different cultures. However, a YouGov study of more than 25,000 people in 24 markets finds that American food ranks 7th out of the 34 cuisines. YouGov asked people which of 34 national cuisines they had tried and whether they liked or disliked them. For U.S. residents, these were their top five favorites out of 34 cuisines:

1.     American: 91 percent

2.     Italian: 88 percent

3.     Mexican: 86 percent

4.     Chinese: 84 percent

5.     Spanish: 79 percent

Americans were least likely to enjoy:

Emirati (23 percent)

Saudi Arabian (24 percent)

 Finnish (27 percent)

American food ranks seventh globally and is favored by 68 percent of the people surveyed—with only people in the Philippines (93 percent) ranking the cuisine higher than most Americans do. Residents of Singapore (83 percent), Taiwan (76 percent), and the UAE (75 percent) also rated American food very favorably. On the opposite end of the spectrum, American food is the least popular in Spain (49 percent), China (51 percent), and Germany (53 percent).

Gen Z Effect on Restaurants

The oldest of Generation Z will be 22 years old this year and they are just beginning to make their mark on dining out and eating trends, finds The NPD Group, which tracks on a daily basis all aspects of how consumers eat. Gen Zs made 14.6 billion restaurant visits in 2018 and now represent 10 percent of total foodservice traffic. A large percentage of this generational group have been raised to put a greater emphasis on the quality of food, whether it’s clean, fresh, or nutritionally beneficial, as well as its flavor and function. Their attitudes and behaviors about the foods they consume are now being reflected across grocery shelves and cases. 

Growing up with a focus on the flavor and function of food rather than brand will make Gen Zs more challenging for food marketers to reach. For example, regardless of the brand, for Generation Z, if they can’t take a snack with them, it’s not really a snack. Portability is the benefit they value the most when choosing a snack, according to NPD’s recently released The Future of Snacking report. They expect functionality as well with added nutrients and health benefits that will replenish their bodies throughout the day. 

When it comes to using restaurants, like Millennials, Gen Zs are frequent visitors of fast casual restaurants and traditional quick service restaurants. Being the first generation never knowing a world without the internet or technology, they are regular users of restaurant apps and delivery, finds NPD’s Delivering Digital Convenience report. In the year ending December 2018, foodservice delivery orders by Gen Zs amounted to 552 million, just a million shy of Millennials’ delivery orders and only a portion of Gen Zs are old enough to order their own delivery. They are also heavy users of restaurant tablets and order kiosks. 

“Gen Zs can FaceTime their friends, text their moms, and order a pizza all at the same time,” says David Portalatin, NPD food industry advisor. “Although we’re just getting a peek at what Gen Zs will bring to our culture, economy, and society, this generation will be a seismic force as they emerge into adulthood under more prosperous economic circumstances, yet with their own differentiating set of values.”

Tillster's Delivery Index

Tillster released its third annual Delivery Index, revealing how Quick Service (QSR) and Fast Casual restaurants can use delivery to drive orders and build customer loyalty. The Delivery Index shows that for QSR and Fast Casual restaurants looking to compete in today’s market, having a delivery option is a must. Delivery offers customers a convenience they have now come to expect and gives restaurants a way to bring in orders and grow sales through a new channel. Some delivery programs even allow brands to keep customer data, enabling retention marketing and building loyalty long after their initial order.

But what specific aspects of delivery do customers most care about, and how can brands use it to grow sales? For the third year in a row, Tillster partnered with research firm SSI to survey 2,000 QSR and Fast Casual customers on their delivery preferences and past experiences. The Tillster Delivery Index reveals these findings to help restaurants craft their delivery strategy: 

Delivery Drives Sales 

Customers would order from their favorite QSR and Fast Casual restaurants more if delivery was offered. In fact, delivery is one of the top five features that customers would like to see from restaurant apps.

Customers Want to Interact Directly with Restaurants

Customers expect to interact directly with their favorite brands, as there is an ease of use and familiarity factor. More than 50 percent of customers want to order directly from a restaurant website or app. Menus are configured and custom to the brand, and customers’ past orders are saved. This goes back to the convenience that customers want, ultimately resulting in a better ordering experience.

Customers Will Pay for Faster Delivery, But There is a Limit

When it comes to delivery fees, customers are willing to pay more to get their orders faster – however, there is an exact dollar amount that the majority of QSR and Fast Casual customers will not pay above.

“The demand for delivery continues to grow, while customer habits and preferences continue to change,” says Perse Faily, CEO of Tillster. “Our 2019 Delivery Index reveals important trends in the QSR and Fast Casual industries; trends that will continue to evolve in an environment ready for delivery-centered disruption. Increasingly, restaurants need a flexible delivery option that will scale with their business and meet customer needs.” 

For the full data and information contained within Tillster’s 2019 Delivery Index, visit Tillster.com/Delivery-Index-2019-Q1.

The Delivery Boom

Restaurants’ delivery sales are projected to grow at more than three times the rate of on-premises revenue through 2023. And the majority of the growth will be in digital orders, according to a new report from L.E.K. Consulting.

“As consumers find themselves more and more pressed for time, online ordering from restaurants has captivated a diner demographic increasingly shaped by the sophisticated world of consumer ecommerce,” says Manny Picciola, Managing Director at L.E.K. Consulting and coauthor of Meals on Wheels: The Digital Ordering and Delivery Restaurant Revolution. “And millennials are a driving force behind the growth of digital ordering and delivery. We expect them to account for a full 70 percent of the at-home delivery business by 2020.”

Overall, digital delivery sales are expected to grow at a compound annual rate of over 22 percent through 2023, according to the L.E.K. research. In fact, more than half of delivery consumers now order food directly from the restaurant’s app or website. To keep pace, 37 percent of restaurants are offering online ordering and 32 percent accept mobile payments, according to industry statistics. Much of the rest of digital delivery orders are through third-party platforms like Grubhub, which reported 16.4 million active diners in the U.S.

Restaurants have three main platform options to handle digital ordering and delivery:

• an independent platform, branded and run by the establishment itself;
• a third-party platform, often an aggregator service (such as Grubhub) that handles order-taking and payment but leaves delivery to the restaurant;
• or a hybrid platform, which is some combination of both.

The L.E.K. report points to the following challenges that restaurants must meet in order to stay successful in delivery:

Consumer experience: A positive consumer experience – from order origination to tracking, delivery and service follow-up – is job one. Inconsistency is a key concern here.]

Technology: While online and mobile ordering makes things easier for the consumer, it requires significant back-end integration to ensure the system works with point-of-sale checkout, apps, promotional data and more.

In-store operations: Careful management – like a dedicated floor plan for pickup – can help avoid disruption for in-store consumers caused by delivery and pickup orders.

Supply chain: Efficient execution requires the right equipment and delivery infrastructure. An example is investing in insulated bags to keep meal delivers hot or cold.

Staff: If delivery is secondary to other restaurant operations, a third-party platform might be the way to go. Otherwise, hiring dedicated delivery personnel and training them to fit the restaurant’s specific delivery goals are key.

“Digital ordering and delivery isn’t just pie in the sky for restaurants anymore, and market trends definitely seem to be bearing this out,” says Maria Steingoltz, Managing Director at L.E.K. and report coauthor. “While the right approach for a delivery system depends on the specific needs of the restaurant, it still all comes back to restaurant fundamentals. A deep understanding of logistics, food quality and consumer communications is what it really takes for restaurants to win in the digital age.”

Training? 

According to a TalentLMS survey on employee training in the F&B industry, training in this industry is, well, stuck in the Dark Ages. 

Among the key takeaways:

• 70 percent of customer-facing employees don’t receive customer service training (yes, you read that right)
• Five out of 10 employees only got training once – when they first started working 
• 62 percent say that lack of training influences their decision to leave a company 

  

  

  

  

  

  

  

  

To crosscheck, the TalentLMS team also spoke to the Training Director at Chick-fil-A, who gave his take on customer service training. For his point of view, along with the complete report, click here.

Food Fraud on the Rise

A new report from e-commerce fraud prevention company Forter reveals that online food and beverage fraud spiked 79 percent in 2018 – higher than fraud attack rates in any other industry.

The online food and beverage industry – which includes restaurants, grocers and delivery services – is a particularly popular target for fraudsters because it’s easy to turn a profit reselling valuable items like high-end alcohol. In addition, criminals use this industry as a testing ground to check if cards or digital wallets are valid. Once successful, they know it’s worth using the payment method to steal higher-ticket items elsewhere.

Interestingly, despite seeing a spike in online fraud attacks across numerous industries including food and beverage – it appears the scale of attacks hasn’t grown enough to match the flood of stolen data exposed in 2018 breaches like those at Panera and Chili’s. This raises the possibility that compromised data is being stockpiled to use in future attacks. FORTER Q1 2019 FRAUD ATTACK INDEX FINDINGS

Fraud Attack Index

Spike in Cross-Industry Fraud: Numerous e-commerce industries experienced an increase in fraud attacks, including:

• Electronics (+73 percent), between Q1 2017 and Q1 2018
• Apparel & Accessories (+47 percent), between Q4 2017 and Q4 2018
• Jewelry & Luxury (+19 percent), between Q4 2017 and Q4 2018
• Land Travel & Hospitality (+19 percent), between Q4 2017 and Q4 2018

Sophisticated Fraud Attack Methods Abound:

Fraud rings, when bad actors band together to commit fraud, have grown 26 percent this year.

Fraudsters increasingly use bots to run automated scams, like mass logins, performing upwards of 100 attacks per second.

Policy abuse, when individuals cheat merchants through the use of coupons and discount codes, has increased 170 percent since Q4 2017. 

Account takeover, when a fraudster gains unlawful access to an account in order to exploit it, increased 45 percent between Q1 2017 and Q4 2018. 

Returns abuse, when criminals abuse retailers’ return policies, has decreased by 90 percent compared to Q4 2017, likely because several large merchants amended their policies to restrict the number of returns per customers.

Instrument manipulation – or the use of burner phones, virtual machines, bots, etc. to pose as a legitimate shopper – increased 13 percent in 2018.

The State of Foodservice Packaging

The Foodservice Packaging Institute’s 2019 State of the Industry Survey shows steady industry volume and profit growth will continue this year. The survey includes input from raw material and machinery suppliers, converters, and foodservice distributors and operators. The survey looks at industry issues, such as changes to volume and profits; expansion and purchasing plans; and opportunities and challenges facing the industry.

“Every year we ask folks in the industry, both members and non-members, to share their thoughts and insights on issues that matter most to the foodservice packaging industry,” said Lynn Dyer, president of the Foodservice Packaging Institute. “Based on the feedback of nearly 90 organizations, the 2019 State of the Industry Survey predicts another positive year for the foodservice packaging industry, despite increasing environmental concerns.”

One of the most notable results is the optimistic outlook for industry growth. Compared with 2018, over 75 percent of foodservice packaging manufacturers and suppliers expect volume expansion and more than 65 percent expect profit growth in 2019.

On the topic of market expansions, respondents overwhelmingly view the fast casual sector as the greatest area for opportunity. This is due to the increased number of fast casual options, quality food offerings and value to their customers. Areas such as supermarket / grocery stores and delivery services are also noted as opportunities for market expansion because of the popularity of being able to grab products on-the-go or have them delivered. New this year, respondents also view convenience stores as an area of expansion as they try to compete with quick serve restaurants and become an eating destination. 

The positive indicators for growth in 2019 include over 60 percent of the North American manufacturers planning corporate expansion through construction of new facilities, expansion of current facilities, and mergers and acquisitions, and more than 75 percent of North American converters who plan to purchase machinery in 2019.

The survey results also identified five common challenges facing the industry based on the responses from North American converters and suppliers:

1.    Public perception of packaging or foodservice packaging as “waste.” 
2.    Lack of qualified labor. 
3.    Recovery / end-of-life options for foodservice packaging. 
4.    Increasing government legislation / regulation. 
5.    Environmental activism. 

“We are excited by the growth and positive outlook within our industry, despite some of the challenges we face. It’s encouraging to see the optimism within our industry,” said Dyer. 

FPI members and contributing participants received complete survey results. A complimentary executive summary of the report is available on FPI's website.

POS Market Forecast

The North American Point-of-Sale (POS) Market is poised to grow by 6 percent in 2019 according to new research from IHL Group.  Driven by upgrades due to the impending end-of-life of Windows 7 support, EMV updates at the fuel pumps, and continued investments as retailers adjust to unified commerce, IHL's 2019 North American POS Terminal Study forecasts one of the strongest years of POS growth in the last decade.

According to the research, grocers, convenience stores, and restaurant chains will see the greatest shipment growth, with only department stores showing a decline in 2019 shipments.  Restaurants in particular are investigating new POS offerings as they struggle to keep up with the integration of third party delivery services such as Uber Eats, Grubhub and Doordash.  

"As consumers continue to demand shopping options via multiple channels and particularly their mobile devices, we see this driving the need for new POS technologies to take advantage of these orders," said Greg Buzek, President of IHL Group. "Once retailers get to a single view of their customer information and inventory across all their channels, the next step for most retailers is the updating of their POS technologies so that they can fully leverage the information to meet customer needs at the store level."

The research also highlights how Android and a mobile-first mindset is now influencing the market.  As well, the end of life for Windows 7 support means that there are over 1.7 million POS terminals running on the legacy operating platforms that are now up for replacement.  This has many retailers considering other platforms from the traditional fixed position Windows-based POS.

The North American POS Terminal Study reviews the trends, shipment, forecasts and barriers to entry of the POS market.  It includes detailed market reviews by retail segment and forecasts through 2023.  The report is designed for use by POS solution and maintenance providers, printer manufacturers, payment companies, banks and private equity investors who might have a vested interest in the North American POS Market.

The study is available here.

The Pleasures of Life

It’s official – a home-cooked meal, a good book, and a glass of wine have been named among the top 20 best things in life for Americans, according to a new study.  The study of 2,000 Americans asked people to name their simplest little pleasures in life and ranked the top 20 most-selected responses.

Results showed that the things that make us happy are often refreshingly simple. Going on a shopping trip for yourself, having a date night with a partner, the feel of fresh bed sheets and a happy hour with friends were some of life’s greatest pleasures. 

Also among the top 20 moments Americans look forward to most were talking on the phone with a best friend, reading a magazine, and spraying on some perfume.  A study conducted by OnePoll in conjunction with JaM Cellars, the makers of Butter Chardonnay examined the wine drinking habits and behaviors of 2,000 Americans and found that when it comes to life’s little moments, drinking wine actually tops the list at number one. 

America named a glass of wine as their best little treat, with 65 percent voting it to the top of Americans’ top 20 little luxuries.  In fact, half of respondents said they drink wine at least weekly, with half of those drinking wine several times per week. Wine came out on top over moments such as getting a massage, indulging in dark chocolate, and even putting fresh sheets on the bed. 

But when is the optimal time for savoring wine? According to the study, 6:59 pm is America’s ideal time to enjoy a glass of wine- voted ‘Wine O’Clock’ by respondents. And Saturday evening is the preferred day of the week for 55 percent of those surveyed who are likely to be sipping some wine at the end of the week. Interestingly enough, wine is also enjoyed consistently throughout the week.

Wine is an everyday treat for Americans because it is relaxing (62 percent), people enjoy the taste (57 percent), and it’s a great way to have fun with family and friends (37 percent). And 66 percent of the people surveyed revealed they enjoy a nice glass of wine at home. America’s favorite place to enjoy wine is no longer a traditional food setting, it turns out, the couch is the go-to spot for wine.

“Wine can be great with food, but we’ve always felt it doesn’t have to be fancy, formal, or confined to the dinner table—and it looks like America agrees” said Michele Truchard, Co-Founder of JaM Cellars, makers of Butter Chardonnay. “This is the vision we had when we started JaM Cellars 10 years ago. Wine can be intimidating and expensive, so we make great-quality wines that are simply easy-to-love anytime. Finding your favorite wine and having a few bottles on hand to share with friends is all part of the enjoyment of life.” 

But, the reason people enjoy their wine so much is because for 67 percent of Americans, it’s a great way to relax, unwind, and enjoy some me-time. But not everyone sips wine by themselves. It turns out, 49 percent of those studied actually enjoy the company of their spouse or partner when enjoying wine, while another 58 percent revealed that enjoying fun times with friends was a leading scenario that would call for Wine O’Clock. 

“It’s so exciting to see Americans enjoying wine more often and whenever they choose. Whether it’s a little me-time, or hanging out with girlfriends, wine really is a great everyday treat. First and foremost wine should be delicious, fun and easy to love. 6:59 pm is a fantastic Wine O’Clock to put on the calendar, but the perfect time for wine is whenever and wherever you choose” added Michele Truchard, Co-Founder, JaM Cellars makers of Butter Chardonnay.

Whiskey on Fire

 Step aside, green beer.  This St. Patrick’s Day, Americans will be celebrating with a dram of super premium Irish Whiskey, according to the Distilled Spirits Council. The Council reports that while the entire category is growing fast, the higher priced categories are “on fire.”  Since 2002, high-end premium and super premium Irish Whiskeys grew a staggering 1,106 percent and 3,385 percent, respectively. In 2018, nearly 4.7 million 9-liter cases (+10 percent compared to 2017) of Irish Whiskey were sold in the United States, generating an astounding $1 billion (+12 percent compared to 2017) in revenue for distillers.

“This is an exciting time for whiskey hailing from the Emerald Isle. The category is on fire,” said Distilled Spirits Council Public Relations Director Maggie Quinn. “We are experiencing a global whiskey renaissance, and Irish Whiskey, with its triple-distilled soft, sweet and smooth flavor profile is captivating U.S. consumers.  Further, it has a long and storied heritage as one of the first whiskeys, and that is attractive to millennials who are always seeking a backstory in their glass.”

Irish Whiskey’s smooth profile makes it particularly appealing to adult consumers who are new to the whiskey category. Alongside approachability, the unique and versatile flavor of Irish Whiskey allows it to be enjoyed neat or in a cocktail. Leading mixologists across the country have showcased the spirit in their innovative and artisan cocktail menus.

The Council, along with the Irish Whiskey Association and Irish Consul General Ciaran Madden, hosted a tasting event for top media and influencers at the Consulate tonight. It featured the following member company brands: Teeling (Bacardi); Kilbeggan (Beam Suntory); Slane (Brown-Forman); Baileys (Diageo); Ballyhoo, Spade & Bushel (Millstone Group); Jameson (Pernod Ricard).

Top Donut Cities 

When BestPlaces.net Founder and President Bert Sperling visited Austin, Texas on business last year, he thought to himself “There seem to be a lot of donut shops here.” Austin is known for its music scene, cultivated “weirdness,” and legendary barbecue, and while the Texas capital delivered in these expected areas he couldn’t shake the feeling that Austin might also be a donut town.

With that running around his head, “The Guru of Lists” found his next project – a list of the “Top Donut Cities” in the United States. But since BestPlaces is founded on hard data, it was a bit early to name Austin “Donut City, USA” simply because he walked past a handful of pastry purveyors on Rainey and 6th Street.

A methodology for the study soon became clear. The study would be limited to the Top 100 Metro Areas in terms of population, since roughly two-thirds of the nation’s population live in those cities. Then, these metropoli would be ranked in order of number of donut shops per capita. The per capita calculation is important in lists of this type, because if it were simply the TOTAL number donut shops, the largest cities would top the rankings, with no deference to density or frequency.

Number were crunched and results crystallized like the sugary coating on a Raised Glazed. While Austin had more donut shops per capita than Sperling’s home base of Portland, he was surprised when it failed to crack the top ten. But it was clear that one region in the United States reigned supreme in their affinity for donuts.

 

Here are the “Top Ten Donut Cities” in the United States. Oh, and we were sure to include both “donut” and “doughnut” shops.

• Providence-Warwick, RI
• Worcester, MA
• Boston-Cambridge-Newton, MA
• Hartford-West Hartford-East Hartford, CT
• New Haven-Milford, CT
• Bridgeport-Stamford-Norwalk, CT
• Springfield, MA
• Scranton–Wilkes-Barre–Hazleton, PA
• Dallas-Fort Worth-Arlington, TX
• Albany-Schenectady-Troy, NY

For complete results, click here.

The Evolving Meal Kit Market

The meal kit market is quickly evolving from nearly exclusively online and subscription-based, home delivery services to on-demand availability in-store and online. Consumers are trying out the different ways to purchase meal kits, with over a quarter of recent users purchasing kits both in-store and online, finds The NPD Group. While meal kit marketers and meal kit users are experimenting to find the right fit, there is a large group of consumers, 93 million, who have never tried a meal kit but are interested in giving them a try, which points to a market opportunity, according to NPD’s What’s Next for Meal Kits report. 

“There is an untapped market for meal kits and it’s up to meal kit providers and retailers to find out what it will take to get a potential meal kit user to become one,” says Darren Seifer, NPD food industry analyst. “The subscription model is likely to remain relevant, but it’s important to remember consumers are looking for meal solutions both online and in stores.” 

A good start to reaching those interested in trying meal kits is knowing who typically uses meal kits. Meal kit users are more likely to be Millennials, have households with kids, and higher incomes. Online and in-store meal kits appeal to similar demographic groups although in-store kits skew to households with children less than 13 years old and higher income levels. 

“Meal kits are here for the long-term because they’re meeting the needs of consumers by providing a level of convenience and shortcuts to meal prep while also providing fresh foods,” says Seifer. “Meal kits marketers looking to capitalize on providing meal solutions should follow consumers to all their points of purchase.”

Eco-Conscious Consumers Want Recyclable Packaging

Eco-conscious consumers are increasingly shunning food and drink businesses who don’t offer recyclable packaging, new research has revealed.  Catering equipment retailer Nisbets commissioned a survey of 1,000 members of the British public to uncover their opinions on food and drink vendors who do and do not use recyclable packaging.   

The research found that almost 50 percent (49 percent) of Brits would be willing to pay more for their takeaway if the packaging was recyclable. Additionally, a third of Brits (31 percent) would actively avoid a vendor who didn’t use recyclable food and drink packaging. 

When it comes to attitudes across the different age groups, 18-24 year olds are the most eco-friendly, with almost 60 percent willing to pay more for recyclable packaging, compared to only 35 percent of 35-65 year olds. Looking at city splits, Glaswegians would be least willing to pay more for recyclable food and drink packaging (27 percent), compared to 61 percent of those in Sheffield.  

In contrast, three quarters (73 percent) of people believe food and drink vendors should absorb additional costs related to recyclable packaging, with many believing that it is the responsibility of the business not the customer.  The large majority (85 percent) of over 65s shared this opinion. 

The most eco-conscious* cities were found to be:  

1.       Edinburgh – 47 percent  

2.       Nottingham – 40 percent  

3.       London – 38 percent  

4.       Southampton – 33 percent  

5.       Manchester – 32 percent  

  

*Those who would actively avoid food and drink vendors who don’t use recyclable food and drink packaging 

 Kirsty-Lee Griffiths is the founder of Macro Food, a healthy, macro-friendly fast food business. She uses bagasse (a dry fibrous residue made from sugarcane) and PLA (Polylactic Acid, made of renewable resources such as corn starch or sugarcane). Talking about recyclable packaging, she said: 

“Personally, I recycle everything I can at home so morally it wouldn’t be right for me to start a business and not use recyclable packaging. There’s a lot of single use plastic/non-recyclable materials being used in the takeaway industry because it is so cheap, but I think a lot of businesses are starting to move away from that as much as possible. Also, as we are a health food provider, it wouldn’t be right for us not to care about the health of the planet as well. Businesses need to represent the same values as their customers and with the wealth of information that was in the press about single use plastic last year, the public wants to move away from this plus other non-recyclable materials and unnecessary packaging as much as possible.”   

 Rhiannon Fender, Environment & Sustainability Manager at Nisbets, commented on the findings:  “Consumers are savvier than ever about recycling and being environmentally friendly. It’s great to see that so many are taking the time to research and make purchasing decisions based on the environmental attitudes of the companies they interact with.  It’s more important now than ever before for businesses to think about their environmental impact and to look for ways to reduce their carbon footprint.” 

 Flushing Money Away

More than one third of Americans are literally flushing profits down the toilet for businesses. According to a new survey commissioned by Sofidel, 35 percent of Americans say they typically use more toilet paper than needed when using a public restroom. The survey was conducted online by The Harris Poll from Feb. 1-5, 2019 among 2,049 U.S. adults ages 18 and older and also revealed Americans’ preferences toward business’ sustainability efforts in public restrooms.

“When restroom guests use too much toilet paper, it’s not only wasteful and costly to reorder product more frequently, but can lead to expensive and unpleasant toilet clogs,” said Giorgia Giove, Marketing Manager – Away from Home, Sofidel America. “It’s important for businesses to invest in toilet paper that actively works to limit the risk of clogs, as well as dispensers that discourage excessive paper consumption. Doing so will not only have a positive impact on the bottom line, but also the environment.”

The survey found that nearly half (45 percent) of millennial women (age 18-34) admit to typically using more toilet paper than needed when using a public restroom. Because toilet clogs create odors, gross out guests and require time and money to solve, Sofidel’s Papernet brand offers Bio Tech toilet paper. Once the paper contacts water, it produces safe enzymes that feed on the buildup in pipes to reduce the risk of clogs as quickly as after one month of use. Exclusive use of Bio Tech can provide total savings of up to 40 percent compared to the combined cost of standard toilet paper and plumbing emergencies.

The survey also revealed that a strong majority of Americans (87 percent) feel it is important that businesses use sustainable products in their public restrooms. Nearly half (45 percent) say it is very important for businesses to provide green restroom products. These products may include water-saving faucets and toilets, dispensers that reduce paper consumption, toilet paper that sanitizes pipes and cleaning solutions made with fewer chemicals. 

Papernet also sells restroom dispensers that help minimize paper consumption. The Touchless Roll Towel dispenser features a unique and customizable paper-saving mode. Through no-touch operation, it dispenses one paper towel sheet and then offers a shorter towel if a customer requires it. Facilities can select the desired savings percentage, set different time delays and choose the length of the second sheet of paper. Meanwhile, the HyTech Auto-Cut Jumbo Roll Tissue (JRT) dispenser uses single, flat-sheet dispensing to prevent customers from pulling an excessive amount from the roll. This dispenser offers 15 percent savings compared to traditional dispensers.

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Robot Takeover

Robots shipped to North American companies in record numbers last year, with more non-automotive companies installing robots than ever before. Statistics from the Robotic Industries Association (RIA), part of the Association for Advancing Automation (A3), show 35,880 units were shipped in 2018, a 7 percent increase over 2017, with 16,702 shipments to non-automotive companies, up 41 percent. Notable growth came in areas like food and consumer goods (48 percent), plastics and rubber (37 percent), life sciences (31 percent), and electronics (22 percent).

Meanwhile, shipments to the automotive industry slowed, with only 19,178 units shipped to North American automotive OEM and tier supplier customers in 2018. This was 12 percent lower than the 21,732 units shipped in 2017. Overall, the automotive industry accounted for only 53 percent of total robot shipments in North America in 2018, its lowest percentage share since 2010.

“While the automotive industry has always led the way in implementing robotics here in North America, we are quite pleased to see other industries continuing to realize the benefits of automation,” Burnstein said. “And as we’ve heard from our members and at shows such as Automate, these sales and shipments aren’t just to large, multinational companies anymore. Small and medium-sized companies are using robots to solve real-world challenges, which is helping them be more competitive on a global scale.”

MRM Research Roundup: Ides-of-March 2019 Edition posted first on happyhourspecialsyum.blogspot.com