December 2010 Archives

Dear NRA Member:

As 2010 draws to a close, I want to take a moment to share some highlights of how the National Restaurant Association has spent the past year representing and protecting your interests, and looking for ways to help increase your company's bottom line.

California restaurants must end trans fat use by Jan. 1.

That's when the second phase of its ban on artificial trans fats takes effect. The first phase took effect Jan. 1, 2010.

California became the first state to ban artificial trans fat in restaurants when it enacted the law in July 2008. Since then, trans fat bans have been successful in only cities and counties.

A new type of financing soon could help restaurants fund their green efforts.

Intended specifically for small businesses that can't get bank money, business-development agencies, philanthropic organizations and other non-traditional lenders are adding green microloans to their finance options.

The loans range from as low as $500 to seldom more than $50,000. Terms depend on such variables as payback schedules, the borrower's size, and the use for the money, but the rate typically is intended to foster investment.

Interest rates offered through a city-run program in Nashua, N.H., usually fall between 6 percent and 10 percent, with a five-year repayment, says economic development director Tom Galligani.

Twenty-eight enlisted aides from land-based Navy operations in the Washington, D.C., area recently completed manager-level ServSafe training and certification from the National Restaurant Association.

Many of the aides have culinary degrees and continue to enhance their professional knowledge and skills. The full-day food safety class was a component of that process.

NRA member Gaylord National Resort And Convention Center in Oxon Hill, Md., provided its staff-training facilities at no cost to the Navy. It was the company's way of recognizing the sacrifices made by men and women in uniform, according to Calvin Banks, senior manager, leadership and training at National Harbor.

Consumer interest in health and nutrition has been growing for several years and continues to be one of the hottest trends in restaurants.

Produce plays a big part in delicious, flavorful better-for-you options.

The National Restaurant Association's "What's Hot in 2011" survey of more than 1,500 chefs (members of the American Culinary Federation) shows that locally grown produce is the second hottest trend on restaurant menus next year (after locally sourced meats and seafood).

Help your guests make healthful choices in this holiday season.

Many people are susceptible to putting on weight over the holiday season. Although many people gain about a pound over the winter holidays, most don't lose the weight, and it adds up over time, says Joy Dubost, the National Restaurant Association's nutrition director. Furthermore, people who are overweight tend to gain more weight during the holidays, she adds.

NRA research shows that nearly three quarters of adults say they try to eat more healthful meals at restaurants than in previous years. And restaurant operators increasingly are responding to consumer demand for healthful options.

The National Restaurant Association today announced a new partnership with CMSText. The partnership will bring text message marketing solutions to the NRA's 380,000-plus member restaurant locations to help them boost profitability and build guest loyalty.

The use of technology has become part of everyday life for consumers, and businesses are adapting marketing strategies to reach consumers through those channels.

"Technology plays a major role in the restaurant business today, and we are committed to bringing new profit-building tools and solutions to our members," said David Gilbert, chief operating officer, NRA.

Restaurants that invest in energy-saving equipment and fixtures can recover up to 70 percent of the cost through rebates, tax credits and other financial incentives. The challenge is to find a program that fits the applicant.

Sources abound, but so do the variables. "There's not a one-size-fits-all source," says Ed Legge, a spokesman for Edison Electric Institute, an association of utilities. "You have to do your homework."

What type of investment is the restaurant planning? In what state or town? When? And what kind of place spends the money, a chain outlet or an independent? Those and other factors can determine whether a payback is available from utility companies, government agencies, equipment manufacturers or other sources.

In his latest commentary, the National Restaurant Association's Chief Economist Bruce Grindy discusses the economic outlook for 2011. With an improving outlook for jobs and income, restaurant operators should see a vastly improved business environment in 2011.

While questions about the long-term impact on the federal budget deficit linger, the recently enacted fiscal policy package is expected to give a short-term boost to the economy. The legislation contains tax cuts and spending increases.

As a result of the stronger outlook for jobs and income growth, restaurant operators should see a vastly improved business environment in 2011. 

Buoyed by the impact of the tax reductions and spending increases, the National Restaurant Association expects the economy to add jobs at a 1.8 percent rate in 2011 - the strongest gain since 2006. While the 2 to 3 million additional jobs will be a welcome improvement over the sluggish 2010 gains, the economy likely won't completely gain jobs lost in the recession until 2013.

The National Restaurant Association praised the U.S. House for voting overwhelmingly Friday to pass the bipartisan tax agreement and send it to President Obama for his signature. The Association supported the compromise as a positive and effective package to strengthen our economy.

"The National Restaurant Association believes this tax agreement is vital to economic recovery, and we commend the White House and bipartisan Congressional leaders for moving this compromise package," said Scott DeFife, executive vice president for policy and government affairs.

"The bill will provide certainty for the next couple of years that both encourages business investment and allows consumers to keep more of their income, which will help spur more economic activity." Read the NRA's statement.

The Federal Reserve came down hard Dec. 16 on banks and debit-card issuers in a new proposal aimed at curbing the "swipe fees" merchants pay each time they accept debit-card payments from customers.

The National Restaurant Association applauded the Federal Reserve Board's tough regulation, which proposes capping the swipe fees that merchants pay for guests' debit-card transactions. The Fed's draft rule attempts to make sure swipe fees, also known as interchange fees, are "reasonable and proportional" to the costs of authorizing, settling and clearing debit-card transactions.

The NRA has worked for years along with thousands of other retailer groups in the Merchants Payments Coalition to get relief for restaurateurs from exorbitant swipe fees.

The Fed's action came at the direction of Congress, which in July passed a financial reform bill that included a series of credit- and debit-card reforms championed by Sen. Dick Durbin (D-Ill.). The NRA was a strong supporter of Sen. Durbin's amendment.

"The proposed rules from the Federal Reserve demonstrate progress toward creating a more balanced debit card transaction fee process," said NRA President and CEO Dawn Sweeney. "Making the transaction fee process more transparent and lowering interchange fees will bring real savings to businesses, which can then be passed along to consumers."

"The direction of the proposed rule from the Fed is very positive for consumers and restaurants, and seems to recognize a core principle that a reasonable cost of transaction can be made through a per transaction limit, rather than a percentage of the bill," said Scott DeFife, executive vice president of policy and government affairs for the Association. "This change should allow consumers to see real savings when they dine out and use debit cards."

The Federal Reserve's proposal now goes through a 60-day public comment period. Final rules are expected to be released by late April and take effect July 21, 2011. The NRA will study and comment on the draft rules to ensure the final regulations match Congress's intent. Read the NRA's statement and link to other articles on interchange fees in the Wall Street Journal, Washington Post, New York Times, and The Hill.

Spending on wine and spirits is picking back up after a challenging 2009, according to the Wine & Spirits Wholesalers of America, and trends in beverage alcohol reflect consumers' increasingly sophisticated palates.

Executives from the wine and spirits industries shared their perspectives on the global alcohol industry at the group's Dec. 14 press briefing  on the state of the alcohol industry.

Craig Wolf, WSWA president and CEO, highlighted how the U.S. alcohol industry system of producers, distributors and retailers makes it the strongest in the world, setting the global benchmark for product selection and profitability.

"Our retail partners - neighborhood restaurants, bars, hotels, and stadium concession stands - are an important part of the three-tier system," he said.

Louisiana's soon-to-be first culinary high school got a shout-out Tuesday from ESPN analyst Digger Phelps.

The former Notre Dame basketball coach appeared on MSNBC's "Morning Joe" to talk about new restaurant industry career opportunities at John McDonogh High School in New Orleans. The school is opening a culinary academy that will expand its ProStart program. ProStart is the National Restaurant Association Educational Foundation's two-year high school curriculum that teaches culinary techniques and restaurant management skills.

Nearly 50 schools in Louisiana offer the ProStart program through the Louisiana Restaurant Association Education Foundation.

The National Restaurant Association received its second national award for its video, "America's Restaurants -- Industry of Opportunity."

The lastest honor is an Ava Platinum Award from the Association of Marketing and Communication Professionals. The Ava Awards recognize outstanding audiovisual production.

Despite tight budgets during the economic downturn, consumers still hunger for restaurant-prepared breakfast items to start their day. And restaurants are responding by spicing up their breakfast offerings.

The National Restaurant Association's recently released "What's Hot in 2011" survey of more than 1,500 professional chefs shows that ethnic flavors will be the top trend on breakfast menus next year. The surveyed chefs are members of the American Culinary Federation.

Sixty-eight percent of the chefs say ethnic-inspired breakfast items will be hot trends, so keep en eye out for dishes such as coconut-milk pancakes, ginger-infused syrup and chorizo scrambled eggs.

Baltimore, Md., will be the host city of the 2012 and 2013 National ProStart Invitationals. Held each spring, this competition tests ProStart high school state champions on culinary and management skills. The winning team takes home scholarships to help fund their college education.

The 11th annual National ProStart Invitational will be held April 27-29, 2012, at the Baltimore Marriott Waterfront Hotel. 

"ProStart is a world-class career-building program that prepares nearly 90,000 students each year for rewarding careers in our industry, and we are pleased to bring the National ProStart Invitational to Baltimore," said Dawn Sweeney, President and CEO, National Restaurant Association and NRAEF. 

If you haven't applied for the National Restaurant Association's Faces of Diversity awards yet, you have a few more days to do so. The deadline to apply for the 2011 American Dream Award and Inspiration Award has been extended to December 28, 2010.

The Faces of Diversity awards program, created in partnership with PepsiCo Foodservice, aims to raise awareness of the importance of diversity and inspire others to expand their diversity efforts. Industry professionals and restaurant companies may online at www.restaurant.org/diversity.

The Faces of Diversity awards program celebrates diversity in the restaurant industry in two categories-the American Dream Award and the Inspiration Award. The American Dream Award honors individuals from diverse backgrounds who, through hard work and determination, have realized the American dream. The Inspiration Award honors restaurant companies that have exhibited leadership and vision as an advocate of diversity and inclusion.

Food trucks have gained both recognition and popularity recently, and the trend is not showing any signs of slowing down. In fact, it was ranked as a top trend in the National Restaurant Association's What's Hot in 2011 survey.

More than 1,500 professional chefs (American Culinary Federation members) participated in the survey, and about one-third named food trucks and pop up restaurants as the hottest operational trend for restaurants next year.

Both newcomers and well-established restaurateurs are getting in the mobile foodservice and temporary restaurant game. The start-up costs of these types of ventures are typically lower than traditional brick-and-mortar restaurants and can allow for more experimentation on menus and marketing strategies.

The U.S. National Institute of Allergy and Infectious Diseases this month released new guidelines to help doctors more accurately diagnose and treat food allergies.

"There is a lot of concern about food allergy being overdiagnosed, which we believe does happen," Dr. Hugh Sampson, one of the guidelines' authors, said at a press event Dec. 3. Estimates of the percentage of people who are food-allergic vary widely, from 1 percent to 10 percent of the population. Sampson said that many experts consider the accurate percentage to be about 3 to 4 percent, or about 10 to 12 million Americans.

The new guidelines help doctors decide what tests to run to confirm food allergies. They also help doctors try to distinguish between food allergies and food sensitivities.

As more Americans are diagnosed with food allergies, restaurateurs get more questions about serving food-allergic guests. The National Restaurant Association worked with the Food Allergy & Anaphylaxis Network this year to produce a downloadable PDF guide on "Welcoming Guests with Food Allergies." 

The U.S. Supreme Court held its long-awaited hearing this week on Arizona's punitive 2007 immigration law. Under the Arizona law -- the strictest in the nation -- businesses that hire unauthorized workers can lose their business licenses.

The law also forces most Arizona businesses to use the voluntary federal E-Verify system to make sure newly hired employees are eligible to work in the United States.

A federal appeals court let the law stand two years ago, despite arguments by the Arizona Restaurant & Hospitality Association and other groups that state law conflicts with federal law and should be struck down. The AR&HA was among the groups that asked the U.S. Supreme Court to take the case.

One fundamental issue: whether the federal Immigration Reform & Control Act allows states to impose tougher civil or criminal penalties than federal law on employers for immigration-related hiring violations.

The Internal Revenue Service has revised the amount that can be deducted for mileage. Starting in January, the new rate is 51 cents per mile for business miles driven.

The IRS's optional standard mileage rate helps businesses compute the deductible costs of operating an automobile, without having to track actual gas costs. Many businesses use this as a benchmark for what to reimburse employees for mileage.

Taxpayers can also calculate the actual costs of using their vehicles rather than using the IRS rate. The IRS website has details.

Like one-fourth of the population, Mick Mulvaney found his first job as a teenager in the restaurant industry.

Now he's headed to Congress to represent South Carolina's 5th Congressional District.

Mulvaney is one of two restaurateurs who will be among the freshmen class of the 112th Congress in January. The other is Bobby Schilling, owner, Saint Giuseppe's Heavenly Pizza, Moline, Ill. Both are Republican.

Finding the dollars to make restaurants greener can be tough in this economy. Yet help often is available in the form of grants.

Several government agencies and advocacy groups offer such assistance, typically by donation rather than a loan. However, stipulations govern how and when the funds can be spent.

Securing a grant isn't as simple as asking for one. Here are some steps to get started:

. Decide if a grant makes sense for you. Qualifying for one obliges you to invest considerable time and effort, notes Alan Someck, a restaurant consultant and environmental specialist for the New York State Restaurant Association. "Ask yourself, 'Is it something you are going to be very committed to?' " he advises.

Health and nutrition are top of mind for many Americans. In fact, about three-quarters of them say they are trying to eat more healthfully when dining out now than they did two years ago.

Responding to this growing interest, Healthy Dining has added a new feature to its HealthyDiningFinder.com website called "Sodium Savvy." This new, online resource highlights lower-sodium menu options at hundreds of restaurants.

The Healthy Dining's Sodium Savvy program currently features 60 restaurant companies, representing nearly 10,000 locations nationwide. The Sodium Savvy choices contain 750 mg. of sodium or less. Items in the program also meet Healthy Dining's criteria for calories, fat, saturated fat and include a lean protein and a fruit, vegetable and/or whole grain component. 

New rules on gift cards that took effect in August have the potential to boost gift card sales this holiday season.

"Business owners need to understand the new gift card rules and disclosure requirements so they can educate their customers and help increase their gift card sales," said Jeff Lipp, executive director of loyalty at Heartland Payment Systems, in a recent news release.

National Restaurant Association partner Heartland Payment Systems offers six tips to maximize gift card programs:

1.  Make sure your customers are aware of the new rules. Develop signage and collateral that details how the new rules affect consumers. This new law requires disclosure of the new rules on gift cards and gift certificates manufactured on or after August 22, 2010. For gift cards produced prior to April 1, 2010, the effective date of the disclosures is not until January 31, 2011.

Not sure what to get your friends and colleagues for the holidays? Why not make a donation in their name for a gift that keeps on giving?

Donations to the National Restaurant Association Educational Foundation help support future leaders of the restaurant industry through scholarships and career-development programs.

You can donate with a click of a mouse when registering for NRA Show 2011. Just check the box to donate to the NRAEF as you complete your registration. Members of the National Restaurant Association get free admission to the industry's most comprehensive trade show.

Since 1997, the NRAEF has awarded more than $12 million in scholarships and has grown its ProStart program from 100 students to 83,000 students with the support of restaurant and foodservice industry professionals nationwide.

A delegation of 20 Chinese food safety officials visited the National Restaurant Association Monday to learn about the restaurant industry's efforts to protect customers.

NRA representatives explained how the Association and restaurant industry work with federal, state and municipal agencies in the United States to influence food safety guidelines and regulations. They also discussed the Association's ServSafe food safety training and certification program.

The next round of National Restaurant Association study groups begins soon after the new year.

The NRA's executive study groups are bi-annual conferences for multi-unit restaurant company executives in human resources, risk and safety, nutritition, quality assurance, internal audit, marketing, information technology, finance and quality assurance.

The spring meetings include:
. Human Resources/Risk & Safety, Feb. 8 through 10, Orlando.
. Nutrition, March 1 through 3, Louisville, Ky.
. Internal Audit, March 30 through April 1, Dallas.
. Marketing Executives Group, May 18 through 20, Chicago.
. Information Technology, May 22 through 25, Chicago.

Cable news shows noted a bright spot amid disappointing jobs news announced Friday: restaurant sales growth.

Quoting National Restaurant Association data released Dec. 1, CNBC noted that the Restaurant Performance Index was at a three-year high. It also noted that 51 percent of restaurants reported a 51 percent increase in same-store sales, and 41 percent reported increased traffic (up from 38 percent the previous month).

CNBC also quoted NRA member Julia Stewart. Stewart, chairman and CEO of DineEquity, the parent company of IHOP and Applebee's, talked the state of the industry. Stewart also appeared on MSNBC.

The Internal Revenue Service has released final guidance on how eligible small employers can claim a new federal income-tax credit for spending on health care for tax year 2010.

The IRS website includes a new one-page form to help employers calculate their credit.

The federal tax credit, part of the health care reform bill, is generally for small employers who pay 50 percent or more of premiums for health insurance coverage for their employees. The maximum credit for 2010 through 2013 is 35 percent of premiums paid by eligible small businesses.

The credit is generally for employers with fewer than 25 full-time-equivalent employees, and where average wages fall below a certain level. See the IRS site for details.

While chefs often are in the limelight these days, other restaurant-industry workers who prepare food typically don't get as much attention. The industry employs more than 2 million cooks who help prepare meals and snacks for 130 million American foodservice patrons on a typical day.

Cooks play a crucial role in every kitchen. According to the Bureau of Labor Statistics, "Cooks measure, mix and cook ingredients according to recipes, using a variety of equipment, including pots, pans, cutlery, ovens, broilers, grills, slicers, grinders and blenders" and work in all varieties of restaurant and foodservice locations. The National Restaurant Association projects the industry will add 193,000 cook positions in the next decade.

BLS Economist Eli Stoltzfus analyzes this occupation and its compensation in a recent article on the BLS website, including how wages for full- and part-time cooks vary by type and geographic location. For example, the average wage for full-time institution and cafeteria cooks is higher than the average wage for all cooks. Full-time cooks in Honolulu, Hawaii, make $3.43 more an hour than the national average.

Suppliers are joining restaurant operators to make foodservice a greener business. Typical of their relationship, each party has ideas about how the other can move the process along.

It's hardly a you-vs.-us situation. Both sides welcome collaboration because a sustainable supply line yields benefits for all eco-minded parties, including guests and employees. 

Indeed, McDonald's regards its supply chain as the area where it can do the most to promote environmental stewardship, according to Bob Langert, vice president of sustainability for the restaurant giant.

Yesterday, the U.S. Senate passed the Food and Drug Administration (FDA) Food Safety Modernization Act, which included several important enhancements to the nation's food safety system.

Nation's Restaurant News reported on the bill's passage and the National Restaurant Association's reaction, quoting Executive Vice President of Policy and Government Affairs Scott DeFife. While praising the Senate for passing the bill, DeFife also expressed disappointment that amendments that would have repealed new 1099 reporting requirements were defeated.

The NRA now urges the House of Representatives to pass the food safety bill before the end of the year.

Read the Nation's Restaurant News article and DeFife's full statement on the food safety reform legislation.

The U.S. Senate this week failed to get the votes it needs to head off an impending paperwork nightmare for restaurants and other businesses -- a mandate included in the health care reform bill that would drastically increase the number of 1099 forms businesses must file.

Senators in favor of repealing the 1099 mandate needed 67 votes -- two-thirds of the Senate -- to move forward with repeal. They got only 61 votes this week. Sen. Mike Johanns (R-Neb.) proposed an amendment to repeal the mandate and pay for repeal with leftover federal stimulus funds. His amendment failed by a vote of 61 to 35. Sen. Max Baucus (D-Mont.) proposed a similar repeal measure, but did not include a way to pay for it. His amendment failed by a 44 to 53 vote.

The NRA and its members have been lobbying Congress for months to repeal the mandate. Congress may take another vote during its lame-duck session this year -- but if not, the measure is sure to be one of the first items the new Congress will vote on in 2011. The NRA will keep up the drumbeat to repeal the 1099 mandate.

The National Restaurant Association's "What's Hot" survey of more than 1,500 professional chefs - members of the American Culinary Federation (ACF) - reveals that local and hyper-local sourcing, healthy children's meals, sustainable seafood, and gluten-free cuisine will be among the hottest trends on restaurant menus in 2011.

"The top trends identified by these culinary professionals for 2011 are reflecting larger societal trends, underscoring that American diners are becoming more and more interested in what's on their plate. Sustainability and nutrition are becoming key themes in our nation's nearly one million restaurants," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association.

The top 10 menu trends for next year will be locally sourced meats and seafood, locally grown produce, sustainability as a culinary theme, nutritious kids' dishes, hyper-local items, children's nutrition as a culinary theme, sustainable seafood, gluten-free/food allergy-conscious items, back-to-basics cuisine and farm-branded ingredients.

Watch our What's Hot in 2011 video to find out what trends we can expect to see on restaurant menus in 2011. The National Restaurant Association surveyed more than 1,500 professional chefs - all members of the American Culinary Federation - and found that local and hyper-local sourcing, healthy kids' meals, sustainable seafood and gluten-free cuisine will be among the hottest trends.