January 2011 Archives

Video: RPI gain launches restaurant industry into 2011

Watch our latest restaurant industry update video, where the National Restaurant Association's Senior Vice President of Research & Knowledge Hudson Riehle talks about the December Restaurant Performance Index and Valentine's Day dining. 

 

Previous industry update videos are available in our Research & Insights section.

 

Restaurant Performance Index posted strong gain in December

RPI_Dec2010.jpgThe National Restaurant Association's Restaurant Performance Index (RPI) posted a strong gain in December, launching the industry into 2011 on a positive note. The gain is driven by expanding same-store sales and customer traffic levels, as well as growing optimism among restaurant operators.

The RPI - a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry - stood at 101.0 in December, up a strong 1.1 percent from its November level.  In addition, December marked the third time in the last four months that the RPI stood above100, which signifies expansion in the index of key industry indicators.

"Overall, the RPI stood above 100 for the third time in the last four months, which suggests that the recovery is gaining a firm foothold," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  "Driven by operators' optimistic outlook for sales and economic conditions in the months ahead, the RPI's Expectations Index rose to its highest level in nearly four years."

ProStart teacher urges restaurant leaders to become mentors

One of Sheri Tucker's first responsibilities at La Quinta (Calif.) High School was to write a thank-you letter to Carlton Curtis.

The culinary arts instructor was thanking Curtis, vice president of industry affairs,  foodservice and hospitality, Coca-Cola North America, for donating a commercial freezer to her ProStart students. Six years later, she shared the story with him at the National Restaurant Association/National Restaurant Association Educational Foundation board meeting, where Curtis assumed NRAEF chairmanship.

"Each time I open the freezer that you bought for us, I say thank you again," Tucker said last week. Donations of commercial kitchen equipment, supplies and chefs uniforms enable many high schools to offer ProStart and allow students to compete for scholarships in culinary competitions. ProStart is the NRAEF's two-year high school culinary arts and hospitality management program. About 90,000 students participate nationwide.

Plugging into a new green trend

Add a term to the vocabulary of green-minded restaurateurs: e-cycling, or keeping discarded computers, TVs, POS systems and other electronic devices out of landfills.

Sustainably disposing of those familiar restaurant appliances is of concern not only because of the environmental considerations, but also the legal ones. Pennsylvania soon will become the 24th state to prohibit so-called e-waste from being dumped. Restaurants that drop old televisions, guest pagers, monitor screens or even cell phones into the trash could be subject to fines. 

"Recycling is not a choice anymore," says Mark Neuville, spokesman for the Institute of Scrap Recycling Industries. "It's a requirement."

Pizza is king of Super Bowl takeout

Football fever is descending on Dallas as the city prepares for the Super Bowl on February 6, and restaurants across the United States are gearing up to serve football lovers their favorite foods.

According to National Restaurant Association research, about one in seven Americans (15 percent) order takeout or delivery from a restaurant on Super Bowl Sunday for gatherings at their house or someone else's house. Among younger adults (ages 18-34), that figure rises to nearly one-quarter (22 percent).

And, nearly 6 out of 10 people who order from restaurants for the big game choose pizza; half order chicken wings, and one-fifth order subs or sandwiches.

One in 20 Americans watch the game at a restaurant or bar.

Economist's Notebook: Food Prices Expected to Remain Elevated in 2011

In his latest commentary, the National Restaurant Association's Chief Economist Bruce Grindy discusses the outlook for food prices in 2011.  Although an improving economy will bolster the business environment for restaurant operators in 2011, food prices are likely to remain elevated, which will further cut in to the bottom line.

 

Restaurant operators will see a markedly improved business environment in 2011, as the National Restaurant Association is projecting jobs and income to grow at their strongest rates in five years.  While the improving economy will help bolster sales, food prices are expected to remain elevated, which will cut in to restaurant operators' bottom line.

 

After a brief reprieve in 2009, restaurant operators saw their wholesale food prices rise sharply in 2010.  Average wholesale food prices - as measured by the Bureau of Labor Statistics' Producer Price Index for All Food - jumped nearly five percent in 2010.  This easily wiped out the record-tying drop registered in 2009, when average prices fell 3.8 percent on an average annual basis.  The 2009 decline matched the 3.8 percent drop in 1976 as the largest wholesale food price decline since recordkeeping began in 1967.  Combined with the 2007 (7.6 percent) and 2008 (7.7 percent) gains - which were the largest jumps in nearly three decades - average wholesale food prices were up more than 17 percent in the last four years.  

New tool kit helps restaurateurs understand POS systems

In an effort to help its members and the restaurant industry better understand the complex elements of purchasing or leasing a point of sale (POS) system, the National Restaurant Association announced today the release of new tools and solutions for understanding the essentials of acquiring point of sale systems.

With the release of its ?8 Essential Elements of POS System Ownership? and its companion ?POS Tool Kit,? the Association is working to educate its members and others in the restaurant industry on how to effectively and economically make POS system acquisition decisions.  Acquiring technology is a complex and difficult task.  POS systems are only one component of the technology platform a restaurant needs to operate efficiently in today?s market.  The tools and solutions introduced by the NRA today help a restaurateur identify the components, costs, vendors, and hidden fees associated with the most expensive technology purchase in their restaurant.

?Point of sale systems are one of the most critical tools for restaurant owners, and a fast, secure, and reliable system is crucial for a restaurant to conduct business,? said David Gilbert, the National Restaurant Association?s chief operating officer. ?But POS systems are extremely complex and can include costly solutions for payment processing and complex vendor contracts and fee structures that adversely affect a restaurant?s bottom line.

New NRA, NRAEF officers assume roles

New officers of the National Restaurant Association Board of Directors and the National Restaurant Association Educational Association Board of Trustees assumed their roles this month at the NRA/NRAEF winter board meetings.

The meetings opened Wednesday in Palm Springs, Calif.

The new NRA officers are Sally Smith, chairman; Rosalyn "Roz" Mallet, vice chairman; and Phil Hickey Jr., treasurer. The new NRAEF officers are Carlton Curtis, chairman; Xavier Teixido, vice chairman; and Denise Marie Fugo, treasurer.

NRA appreciates President's focus on job creation

Dawn Sweeney, president and CEO of the National Restaurant Association, today praised the President for focusing on job creation in his State of the Union address.

"On behalf of the restaurant industry, the nation's second-largest private sector employer, we appreciate the President's focus on job creation in his speech tonight. Despite a challenging environment during the past several years, the restaurant industry has remained a resilient engine of growth for the U.S. economy.

"America's restaurants provide nearly 13 million jobs and contribute $1.5 trillion to our nation's economy ... it is vital to our industry that lawmakers support policies that encourage job creation," said Sweeney.

"We look forward to working with the Administration and the members of the 112th Congress to help pass business-friendly policies, such as tax reform and changes to the health care law."

The National Restaurant Association recently announced the launch of a campaign called "America Works Here" that will help educate opinion leaders, policymakers, and their staff members about the breadth, depth, scope and influence of the restaurant industry on the American economy.

The Association said the President's speech also raised other critical issues necessary for a pro-business environment. These include:

Help employees keep their jobs -- promote earned income, child tax credits

Educate your employees about the Earned Income and Child tax credits this Friday to mark EITC Awareness Day.
 
The earned income and child tax credits are federal tax benefits for full- and part-time workers who fall below certain income thresholds. Many people qualify for the credits even if they don't earn enough money to owe taxes.

Why it's important to promote the credits: "These are work-support tools," says John Wancheck, EIC campaign coordinator, Center on Budget and Policy Priorities. The credits help people maintain their jobs and stabilize their work situations, he says. The credits offset payroll taxes, giving people more money in their take-home pay. That gives them more money for their families and can help pay for child care or transportation to work.

Take advantage of small-business health care tax credit

As tax filing season approaches, the Internal Revenue Service and leading members of Congress are working to get the word out to small businesses and tax preparers about the new health care tax credit.

Businesses with fewer than 25 full-time-equivalent employees and average wages of less than $50,000 can receive up to a 35 percent tax credit on the health insurance they provide to workers. To qualify, an employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate. The credit will increase to 50 percent in 2014.

FDA expects to issue menu-labeling proposal by March 23

The Food and Drug Administration indicated Jan. 21 that it will officially withdraw Aug. 25, 2010, "draft guidance" for restaurants on how to follow new federal menu-labeling rules.

Instead, the FDA says it will follow a formal rulemaking process before enforcing any of the law's requirements for restaurants. This will "minimize uncertainty and confusion among all interested parties," says the FDA.

The National Restaurant Association supports the approach. The NRA believed August's draft guidance meant restaurants could have been required to comply with two different sets of rules -- complying with "guidance" at first and then with final regulations later. Switching out menus and menu boards to reflect a two-step implementation would have added cost and confusion for restaurants, and confusion and uncertainty for guests.

The FDA has until March 23 to issue proposed regulations on nutrition-labeling rules for restaurants. The draft rules will spell out how the FDA intends for restaurants with 20 or more locations operating under the same brand name to post calories on menus and make other nutrition data available on request.

Once it issues draft rules, the FDA will take comments for 60 days. The agency said it hopes to issue a final regulation by the end of 2011, with a compliance date around mid-2012.

NRA weighs in on planned ADA regulations

Last summer the Department of Justice said it was considering new regulations under Title III of the Americans with Disabilities Act to govern restaurants and other "places of public accommodation" to ensure accessibility in websites and equipment/furniture.

This week the NRA and the Retail Industry Leaders Association teamed up to file extensive comments with DOJ raising questions and citing concerns.

For details see the DOJ notice on website accessibility and the NRA/RILA comments, and the DOJ notice on equipment/furniture accessibility, with the NRA/RILA comments.

NRA urges progress on swipe-fee rules

The NRA and the Merchants Payments Coalition are trying to get hundreds of business signatures on a letter to Federal Reserve Chairman Ben Bernanke.

The letter urges the Federal Reserve Board to keep moving forward with rules to ensure fair interchange fees for merchants when customers pay with debit cards. Read the letter and contact Chris Raymond at the NRA to sign on.

The Federal Reserve proposed the debit-card regulations last month following Congress's passage of the NRA-supported Durbin Amendment last summer. The Durbin Amendment charged the Fed with issuing rules to ensure that debit-card swipe fees are "reasonable and proportional" to the cost of processing those transactions.

 

Aiming for 'extreme' risk management

When restaurant risk management and human resource professionals head to Disney studios next month, they'll get more than fires, explosions and a behind-the-scenes look at a stunt show. They'll see a parallel to everyday risks in restaurant operations and take home ideas to improve their safety processes.

The National Restaurant Association's Risk & Safety Mangers and Human Resources study groups meet Feb. 8 through 10 in Lake Buena Vista, Fla. As part of the meetings, the groups will visit Disney's Hollywood Studios in Orlando for "Lights, Motor, Action - Extreme Stunt Show."

Although the fire and explosion stunts aren't the same kinds of risks restaurant operators face, the groups will see what kind of measures Disney takes to protect employees and guests, says William Reynolds, safety and loss manager, CEC Entertainment. Reynolds is co-chairman of the risk and safety managers meeting.

A chill pill for high heating costs

Rising fuel prices are giving restaurateurs extra incentive to heat their facilities more efficiently this winter. Fortunately, tightening consumption is no sweat, even for operators with little money for renovation, an expert tells the National Restaurant Association.
 
Richard Young, senior engineer and director of education for the Food Service Technology Center in San Ramos, Calif., offers these tips, most of which can be undertaken for little or no cost:

. Make sure your kitchen exhaust hood really sucks ... heat. The more effectively it pumps heat and smoke from the cooking equipment, the lower volume of air it vents overall. That means less heated air is pulled from the dining room and less "replacement air" has to be warmed to maintain a comfortable temperature.

. Consider installing side panels on your hood, and make sure the heat-generating equipment is flush against the wall to prevent wasteful updrafts. Consider removing the four-way diffusers.

Do you want forbidden rice with that?

While proteins often take center stage on the plate, starches and side items are important elements of a meal. Following consumers' increasingly adventurous and sophisticated palates, chefs are looking beyond potatoes, white rice and pasta to jazz up dishes, according to recent National Restaurant Association research.

The National Restaurant Association's What's Hot in 2011 survey of more than 1,500 professional chefs reveals the hottest trends in side dishes this year are black rice and quinoa. Nearly 65 percent of the chefs - members of the American Culinary Federation - said those items would be trendy.

the-black-rice.jpgIn ancient China, black rice was considered the finest grain and only served to the Emperor. Therefore, it sometimes is called "forbidden rice," as it was off limits for the general public. Black rice is high in fiber, antioxidants and other nutrients, has a similar flavor to brown rice, and turns deep purple when cooked.

Quinoa is another ancient grain that will be trendy on restaurant menus this year. Quinoa provides a great source of protein and fiber,and is also a good choice for diners on gluten-free diets.

In addition, red rice, vegetable pickles and Asian noodles (soba, udon and rice noodles, for example) also rank high on the list of trends in the sides/starches category of the survey.

New legislation can help some hospitality employees

More lower-income employees can take advantage of public programs, thanks to legislation enacted in December 2010. The law simplifies rules for how the government treats the Earned Income Tax Credit, Child Tax Credit and other tax refunds when determining eligibility for public benefit programs.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 prevents government entities from counting federal tax refunds as income when determining eligibility for federally funded public benefit programs. It also prevents those refunds from being used to determine the benefit amount.

The law applies to the EIC, CTC, other tax credits and refunds over withheld income tax.

DOL gives preview of planned regulations for 2011

The Department of Labor is pressing ahead with its "Plan, Prevent, Protect" initiative announced last April.

A DOL Q&A chat Jan. 6 gave a preview of what the agency has in store for employers this year. Among the plans:

>> DOL plans an announcement in April about possible new recordkeeping rules to require employers to provide wage statements each pay period to employees.

>> DOL is working on a proposal to require employers to notify workers whether they're employees or independent contractors, and why.

>> DOL and the American Bar Association jointly launched an "attorney referral system" last month to help employees pursue minimum-wage and family/medical-leave complaints against their employers.

The bottom line of the Plan, Prevent Protect initiative, according to DOL: The agency says it can't be in every workplace every day, so it says employers should take more steps to prove compliance, and employees should be armed with more information to help them monitor employer compliance.

Read the Jan. 6 DOL session transcript.

The National Restaurant Association also sponsored a members-only briefing in October on how employers can safeguard themselves. Access the webinar recording here.

States begin broadening small-business lending under new federal program

Restaurateurs and other small businesses seeking loans in Michigan and North Carolina may have an easier time finding money because of the State Small Business Credit Initiative. Congress included the program in last fall's Small Business Jobs Act, aiming to turn a $1.5 billion federal investment into $15 billion in small business loans. States that get SSBCI funds must show they can generate at least $10 in private lending for every $1 in federal funds. Michigan and North Carolina are the first to get their programs underway. Read more.

The National Restaurant Association will educate policymakers and opinion leaders about the restaurant industry's economic importance through a new campaign, "America Works Here."

"The breadth of policy issues that affect the restaurant industry has grown tremendously," says Scott DeFife, the NRA's executive vice president, policy and government affairs. "Many elected officials think about their own neighborhood or hometown restaurants but might not think of the collection of restaurants and associated parts of the supply chain that make up the restaurant industry."

The restaurant industry is the second largest private employer in the United States. It encompasses nearly one million locations.

Food safety reform: What it means for your restaurant

The new food safety law makes some of the most significant enhancements to food safety in decades. Participate in a new National Restaurant Association webinar to discover what the new law entails, how it upgrades food safety protections and what it means to restaurant operations. Join the NRA's Dan Roehl and Joe Levitt, a partner at Hogan Lovells LLP, at noon ET Jan. 20 for an overview of the new law. You'll need your member number to register.
Register now.

7 tips to find a payroll processor

As business-owners review their 2010 expenses to target where they can operate more efficiently this year, some restaurant owners are considering outsourcing their payroll-processing.

The beginning of the year is a good time to make the change, according to National Restaurant Association partner Heartland Payment Systems. Year-end calculations and reporting are complete, so changing in January can be smoother than at other times of the year.

If you're thinking about outsourcing your payroll, consider the following tips:

. Determine your business needs. Get input from your payroll, human resources, accounting and IT staff.

Reeled into sustainability

One of the more visible ways restaurants can demonstrate their commitment to sustainability is in choosing seafood.

Specials can be an initial way to inform guests that your establishment weighs environmental concerns when drafting its menu. Several organizations aim to help by assessing the supplies of various seafood species and their risk of being over-fished. Some factor the means of harvesting into what amounts to an ecological rating.

The National Restaurant Association talked with Seafood Watch, one of the groups with considerable buy-in from restaurant chefs. The Monterey Bay Aquarium in Monterey, Calif., administers the program. Restaurants from coast to coast follow its recommendations of what seafood to avoid and which species are ecologically preferable for menus.

IRS reminder: Employers have until Jan. 31 to adjust withholding

Businesses this month began following a new withholding schedule for employees' wages that reflects a 2011 cut in federal payroll taxes.

The change was included in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The law provides a two-percentage-point payroll tax cut for employees through 2011 to boost take-home pay and stimulate spending.

State ProStart competitions start this week

When New Jersey high school students participated in their state's Jan. 12 culinary and hospitality management competition, they kicked off the National ProStart Invitational competition season.

The National ProStart Invitational is the National Restaurant Association Educational Foundation's annual culinary and management competition. First-place teams from the state competitions are eligible to participate in the National ProStart Invitational, set for April 29 through May 1 in Overland Park, Kansas.

More than 4,000 ProStart students are expected to compete in the state competitions.

NRA, Massachusetts launch new allergy-awareness training

The National Restaurant Association and Massachusetts Restaurant Association jointly unveiled an approved program to help Bay State restaurants comply with the state's restaurant allergy-awareness law.

Under the 2009 law, Massachusetts restaurants must by Feb. 1, 2011, have on staff a certified food protection manager who has been issued a Massachusetts certificate of allergen-awareness training through a training program recognized by the Massachusetts Department of Public Health.

Certified food managers will be required to receive a food allergy certificate every five years.

The state health department approved the Massachusetts Allergen Training program as meeting all training requirements. To get the certificate, participants register and pay a $10 registration fee. They watch a 30-minute online training video developed by the Food Allergy & Anaphylaxis Network. They can then print out their certificate themselves.

The program video covers essential information on the various types of food allergies, the consequences of cross-contamination and the precautions necessary when serving guests with food allergies.

Restaurateurs can access the online program at www.marestaurantassoc.org or ServSafe.com/allergen/ma.

Massachusetts is the only state to require restaurants to educate staff on food allergies. Among the other requirements of the law: Restaurants must post information about food allergies in employee work areas. Restaurateurs who don't have a poster can download a copy from the Massachusetts Department of Public Health's Food Protection Program website.

Under the new law, Massachusetts restaurants have also been required since Oct. 1, 2010, to print the warning: "Before placing your order, please inform your server if a person in your party has a food allergy" on menus and other printed menu materials, such as takeout, website and catering menus. Quickservice restaurants with menu boards can either put the statement on the menu board or post a conspicuous statement at the point of sale.

Local health inspectors will check restaurants for compliance with the new regulation and training rules.

The National Institute of Allergy and Infectious Diseases estimates that food allergy occurs in 6 to 8 percent of children 4 years of age or under, and in 3.7 percent of adults.

For more information contact the National Restaurant Association, the Massachusetts Restaurant Association or the Massachusetts Department of Public Health.

Economist's Notebook: Job market continues to improve

BLS numbers.gifIn his latest commentary, National Restaurant Association chief economist Bruce Grindy discusses the latest data on jobs and unemployment. Restaurant job growth was robust, while the national unemployment rate dipped.

Restaurants continued to add jobs, according to recent Bureau of Labor Statistics data. Eating and drinking places gained 24,500 jobs in December, the fifth straight month of job creation. In 2010, restaurants added more than 188,000 jobs. They lost 294,000 jobs in the previous 24 months. Eating and drinking places represent about three-fourths of the restaurant and foodservice workforce -- the primary component of the industry.

The data also shows the national unemployment rate fell to 9.4 percent in December from 9.8 percent in November. That marked the largest single-month drop in more than 12 years. It's important not to read too much into the data at this point because the decrease was a result of dramatic swings in the data used to calculate the jobless rate.

Congress renews debate on repealing 1099 mandate

Rep. Dan Lungren (R-Calif.) and nearly 200 House colleagues aren't letting grass grow under their feet.

On Jan. 5 Lungren reintroduced his 1099 repeal bill from last Congress. The new bill, H.R. 144, would repeal the controversial expanded 1099 reporting mandate that will force businesses to file countless new 1099 forms starting in 2012.

The 1099 expansion was part of 2010's health care overhaul and raises an estimated $19.2 billion over 10 years to pay for health care reform. "We should be working on reining in the cost of health care, not imposing a new government mandate to squeeze every drop of revenue out of small businesses," Lungren said.

Both the House and Senate voted last year to repeal the 1099 mandate but procedural issues blocked final action. Support for repeal is bipartisan. The White House also supports repeal.

Is your House member one of the cosponsors? Check here.

Jan. 11 is last day to apply for Restaurant Neighbor Award

In 2009, Red Robin Gourmet Burgers, Farrelli's Wood Fire Pizza, UNION Restaurant and Bar Latino and Union Square Hospitality Group each received $5,000 to continue their philanthropic work. As winners of the National Restaurant Association's Restaurant Neighbor Award, they were recognized for their outstanding community service.

Now it's your turn. Tuesday is the deadline to apply for this year's Restaurant Neighbor Awards, which will be announced in April at the NRA's Public Affairs Conference. Winners in four categories will receive expense-paid trips to Washington, D.C., for the awards ceremony.

Get recognition -- and continued funding -- for your community service. Whether your and your staff prepare, deliver or collect food to end hunger ... support youth programs ... or raise money to fight disease, make sure you can keep up the good work. Apply today for the Restaurant Neighbor Award.

The NRA and American Express created the Restaurant Neighbor Award in 1998.

NRAEF offers viticulture scholarship to Italy

Culinary students have an opportunity to expand their knowledge about Italian wine-making. The National Restaurant Association Educational Foundation seeks applicants for its Giacomo Bologna Scholarship, a weeklong expense-paid trip to experience Italian viticulture, gastronomy and culture.

This is the 10th year NRAEF has offered the scholarship with Gruppo Ristoratori Italiani. This year, six students will be chosen to participate in culinary/wine seminars, workshops and tours in Piedmont's Langhe territory. Langhe is nestled between Alba and Asti and the hills where the main wine varietal, Nebbiolo, is produced. Wines produced in the territory include Barolo, Barbaresco, Barbera, Dolectto, Arneis, Moscato and Asti Spumante. The host/sponsor is Beni Di Batasiolo Winery.

Applicants must have at least two years of culinary experience and/or viticulture training and have worked directly with a chef or sommelier. Applicants must be full-time students in accredited college or culinary institute.

National Restaurant Association names political advocacy leader

Rob Gifford.JPG

Longtime Michigan Restaurant Association leader Rob Gifford joins the National Restaurant as executive vice president of political advocacy. He will be responsible for advancing the Association's political impact and growing local, state and federal mobilization.

"Rob's breadth of experience, both in the industry and within the state restaurant association community, makes him the ideal choice to lead this important growth effort," said NRA President and CEO Dawn Sweeney. "Rob's talents will take the Association's political advocacy and reach to another level - enabling industry advocates across the country to come together to fight for the best interests of the restaurant community."

Gifford was president and CEO of the Michigan Restaurant Association for more than 18 years. During that time, the MIRS (Michigan Information Research Service) Insider Survey named the MRA one of the top five association lobbying organizations in Michigan. Gifford previously worked in government relations at the National Restaurant Association.

Payroll-tax cut boosts take-home pay

155 million Americans will see increased take-home pay starting this month because of the tax bill signed into law last month.

The tax bill reduced the employee's share of Social Security payroll taxes to 4.2 percent of the first $106,800 employees earn in 2011. The rate is normally 6.2 percent. Employers still need to contribute Social Security payroll taxes at the full rate of 6.2 percent.

The 6.2 percent Social Security tax is part of the Federal Insurance Contributions Act payroll tax. The Medicare portion of the FICA tax -- 1.45 percent, assessed on both employers and employees against all income -- remains unchanged.

"Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011," the IRS said last month. The agency released new withholding tables for employers to use this year.

 

Powering up a new green service

A new guest amenity is appearing in restaurant parking lots: electric vehicle recharging stations.

They're cropping up as electric-car advocates try to resolve a chicken-and-egg situation. Without an infrastructure to support electric vehicles, consumers might be reluctant to buy them. But without more EVs rolling off the lots, there's no need to build an infrastructure.

One solution: Install recharging stations at restaurants, an opportunity the industry is seizing. Early adapters like McDonald's and Cracker Barrel are betting the plug-in stations will provide another draw for green-minded customers, now and down the road. With funding from EV proponents, they're rewiring for a new, cleaner generation of guest transportation.

Industry leaders unite to fund ProStart

Leading restaurant and food companies have committed more than $1 million to a new fundraising initiative for the National Restaurant Association Educational Foundation's ProStart program. The initiative aims to raise more than $3 million this year for the two-year, culinary arts and restaurant management education program for high school students.

The donations will strengthen the program and help increase participation in the next five years. About 90,000 students are enrolled in ProStart.
 
Committments to date include $250,000 from Brinker International and The Coca-Cola Co., $150,000 from the J. Willard and Alice S. Marriott Foundation, $100,000 from Popeyes Louisiana Kitchen, PepsiCo Foodservice Division and Sysco, 50,000 from Golden Corral, and $25,000 from the American Express Foundation and McCormick for Chefs. Yard House, Firehouse Subs and several industry leaders also have committed significant donations.

NRA calls food-safety law a step in the right direction

National Restaurant Association President and CEO Dawn Sweeney issued the following statement after President Obama signed the Food and Drug Administration (FDA) Food Safety Modernization Act today:

"We are pleased that the FDA Modernization Act today becomes law. This legislation represents meaningful improvements to the food safety system and focuses FDA's mission on prevention. As part of this legislation, we will see enhancements to our food safety system, including additional hazard analysis, food safety planning, and increased inspections - all important measures to ensure food entering the supply chain is safe.

"Food safety remains the restaurant industry's number one priority. This new law will positively impact the supply chain and ultimately improve the safety of food purchased by restaurant operators. It is imperative that the nation's food chain remains safe, and this legislation is a step in the right direction."

Congress funds small-business lending incentives through March 4

Businesses interested in applying for a Small Business Administration loan have until March 4, 2011, to take advantage of two key incentives Congress created to boost small-business lending: a waiver of SBA loan fees, plus a 90 percent government guarantee for the agency's popular 7a loans.

Congress late last month approved an extension beyond Dec. 31, 2010, of these two provisions. The fee waivers and higher loan guarantees were enacted as part of September's Small Business Jobs Act, and since Oct. 1 have helped fuel more than 20,000 SBA 7a and 504 loans totaling over $10 billion. The volume of SBA loan applications and approvals has reached record levels, the SBA says.

Congress said the SBA can keep going until March 4 or until allocated funding run out, whichever is earlier. Find out more about SBA loans at www.sba.gov.

The National Restaurant Association strongly supports making SBA loans more accessible, and will urge Congress to take whatever steps it can to ensure a successful SBA loan program in 2011.

 

Check out our latest RPI video

Watch our latest restaurant industry update video, where Hudson Riehle, the National Restaurant Association's senior vice president of research and knowledge, talks about the November Restaurant Performance Index.

Watch videos of Riehle discussing RPI results from previous months.

Stronger sales expected in months ahead

Although the National Restaurant Association's Restaurant Performance Index fell below 100 in November, economic fundamentals of the restaurant industry remain positive. And that likely will lead to stronger sales in the months ahead, according to Hudson Riehle, senior vice president, research and and knowledge, NRA.

The RPI - a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry - stood at 99.9 in November, down 0.8 percent from October. November was the first time in three months the RPI stood below 100, the level above which signifies expansion in the index of key industry indicators.

"While the RPI's November decline was largely the result of softer same-store sales and traffic performances, it doesn't necessarily mean the industry's recovery is in peril," Riehle said. "Like the economy as a whole, the restaurant industry's road to recovery will be one with occasional bumps along the way."

 

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