August 2011 Archives

Restaurant owners in Mexico and the United have several similarities, NRA Chair Sally Smith told the Mexican Restaurant Association Aug. 30.

Both are hard-working business people committed to pleasing customers and keeping employees, she said at the Mexican association's annual trade show in Mexico City.

"World-wide, we will find that restaurateurs are engaged within their communities and very interested in any shared innovations that will help them grow and stay successful," said Smith, president and CEO of Buffalo Wild Wings.

Smith's remarks noted the long relationship between the two organizations. The groups have been cooperating for 44 years. In 1967, AMR hosted an NRA board meeting in Mexico City. Since then, members of each have served as international ambassadors on the groups boards of directors.

"Our international ambassadors help the NRA chart a positive course to understanding our common concerns and sharing solutions to common needs," Smith said.

As a result of softer same-store sales and traffic levels and a dampened outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) fell below 100 in July. 

The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 99.7 in July, down from 100.6 in June and the lowest level in 11 months. 

“Although same-store sales and customer traffic levels remained positive in July, restaurant operators’ outlook for the economy took a pessimistic turn,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  “This survey month was burdened with the debt ceiling crisis and the downgrade in the nation’s credit rating, which added an additional layer of uncertainty in an already fragile economic recovery.”

Watch our latest industry update video, where the National Restaurant Association's SVP of the Research & Knowledge Group Hudson Riehle summarizes the July Restaurant Performance Index, additional economic indicators, and the Association's new summer dining research.

For previous industry update videos, visit our Research & Insights section.

Food plays a central role in outdoor and vacation activities in the summer time, and new research by the National Restaurant Association shows that more than one-third of Americans plan to dine out or use restaurant takeout or delivery for a picnic, cookout or other outdoor event this Labor Day weekend.

In addition, one in five consumers have ordered restaurant takeout or delivery for an outdoor dining occasion during the summer months, and  two-thirds went on a summer vacation or trip during which they visited a restaurant.

“The fact that one in five have used restaurant services for their outdoor dining activities, and that two-thirds enjoyed restaurant meals on summer vacations speaks to the essential role the nation’s nearly one million restaurants play in Americans’ lifestyles,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association.

ProStart, the national, two-year culinary training program for high-school students interested in pursuing restaurant industry careers, is celebrating the nearly 100,000 participants in the program with a new series of videos that showcase their talent and dedication to their craft.

Created and developed by the National Restaurant Association Educational Foundation, ProStart teaches students food safety, sanitation and knife skills as well as culinary techniques and management skills. It provides real-world educational opportunities that will help the future leaders of the industry develop knowledge to advance their careers.

"ProStart is a very effective career-building program," said Carlton Curtis, vice president of Coca-Cola Foodservice and chairman of the NRAEF. "Supporters of the program are able to see the positive changes in the lives of these young people happen right before their eyes."

The National Restaurant Association today issued the following statement by President and CEO Dawn Sweeney on the impact of Hurricane Irene:

"On the anniversary of Hurricane Katrina’s impact on the Gulf Coast of the United States, we are mindful of how damaging these storms can be for local communities and are thankful that Hurricane Irene has proven to be less destructive than initially expected.  We also thank our state restaurant association partners that were impacted by Hurricane Katrina for reaching out to their colleagues on the East Coast to help them prepare for this storm.

"The National Restaurant Association offers our sympathies to those who suffered loss of life or property damage, and applauds the federal, state and local disaster preparedness communities for their work in preparing us for the worst as we all hoped for the best.

"We also recognize the frustration of some restaurant communities that were not heavily impacted by Irene, but were evacuated or closed in anticipation of projected damage.  It is not entirely possible to predict where a storm of Irene’s size will cause the most damage, and while we applaud the caution shown that undoubtedly saved lives, we sympathize with those where losses will be primarily financial.

The National Restaurant Association, while applauding passage of the Dodd-Frank financial services reform bill, which would reduce debit-card swipe fees for some merchants by more than 50 percent when the law takes effect Oct. 1, said it remains disappointed those fees will be capped at 21 cents per transaction, higher than the Federal Reserve's initially proposed 12 cents per transaction.

The remarks, featured in an op-ed article in the Aug. 28 edition of the Chicago Tribune, were written by Dawn Sweeney, president and chief executive of the Washington, D.C.-based NRA.

Sweeney said the NRA is grateful for the efforts of Sen. Dick Durbin, D-Ill., who sponsored the Dodd-Frank bill's amendment that would limit how much banks and card companies can charge in swipe fees to restaurants and other small businesses. She added that the association was particularly thankful for Durbin's support when the banks and card companies tried vigorously to kill the legislation earlier this year.

The National Restaurant Association kicks off a month-long initiative this week to encourage restaurant and foodservice operators to renew their commitment to food safety by raising awareness of the importance of education and training. The 17th annual National Food Safety Education Month (NFSEM) is this September.

This year’s theme, “Lessons Learned from the Health Inspection,” is sponsored by SCA, a global hygiene company and makers of the Tork® brand of away-from-home paper products. The National Restaurant Association selected SCA as the sponsor of the campaign due to the company’s commitment to food safety education and dedication to hygiene product solutions. 

“There is nothing more important than the health and safety of our guests at restaurants around the country, and National Food Safety Education Month highlights our industry’s commitment to serving healthful, delicious and safe meals every day,” said Dawn Sweeney, President and CEO of the National Restaurant Association.

Emergency preparedness is crucial for any business, as we all hope for the best and prepare for the worst. As Hurricane Irene is bearing down on the East Coast, many areas will be affected, and restaurant businesses are on the front lines. Preparing your business for a potential shutdown, be it planned as part of area evacuations or hurriedly in case of emergency, can help mitigate the situation as it is ongoing and facilitate smoother re-opening of your business.

The National Restaurant Association encourages restaurants in at-risk/affected areas to keep these tips in mind:

• The safety of employees and guests is first and foremost. Keep up to date with the latest developments through state and local government sources to determine if and when to close your business.

In preparation for Hurricane Irene, it may become necessary to close your business. Below are some tips, provided by the Louisiana Restaurant Association, to keep in mind when preparing a restaurant unit for emergency closure:

• Reduce and/or reschedule purchases and deliveries to reduce waste.

• Sand bag the entrance to the restaurant.

• Board up store fronts and windows.

• Stock up on dry ice and take ice out of ice machines to fill plastic containers. Place the containers in the walk-in refrigerator. Move food products in the walk-in  closer to bottom shelves and floor level. If the power goes out, the ice-filled containers will serve as a big ice chest.

• Shut down computers and equipment.

• Turn off gas lines - this is very important due to the risk of damage.

• Secure rooftop air conditioning units with ropes and/or straps.

• Obtain a generator and fuel for re-entry into the restaurant for clean-up.

Despite strong and widespread concerns from the business community, the National Labor Relations Board announced Aug. 25 that starting in mid-November it will require nearly all private-sector employers to post a new federal workplace notice detailing employees' rights under the National Labor Relations Act to organize unions.

The mandate to post the new 11" x 17" poster will take effect Nov. 14, 2011, the agency says. Failure to post the notice could constitute an "unfair labor practice" under the National Labor Relations Act. The NLRB says it will not initiate enforcement action on its own for an employer's failure to post a notice but could investigate cases based on complaints by employees or other parties.

The National Restaurant Association and more than 30 state restaurant associations filed comments with the NLRB in February objecting to the proposed poster mandate, noting that the mandate was another example of how an activist NLRB was taking steps to make it easier for unions to organize businesses. The proposed mandate would also create a new source of litigation for trial attorneys, the NRA noted in February.

The NLRB says it will make posters available starting Nov. 1, 2011. Employers will be able to download the poster from the NLRB site or order it from an NLRB office.

Read the NLRB's regulation and Q&A on the new mandate. Stay tuned for further analysis from the NRA on the poster requirement.

Foodservice industry members will hit the links Oct. 20-22 for the 14th annual Richard E. Marriott SAFE Golf Invitational at the Williamsburg Lodge in colonial Williamsburg, Va.

Proceeds from the three-day event will benefit the National Restaurant Association's Restaurant Advocacy fund, a platform for advocacy on legislative and regulatory issues affecting the restaurant industry.

"We're thrilled to host such an exciting event to benefit the Restaurant Advocacy Fund," said Dawn Sweeney, the NRA's president and chief executive. "Many of the leaders of our industry will be at the event in October, and it will be a great opportunity to network in a beautiful, historic setting."

Louisiana is finalizing a new pilot program to help restaurants afford local food.

Under what's believed to be a first-of-its-kind law, Louisiana restaurants will qualify for a 4 percent rebate on food produced in the state. The money will be drawn from a pool created by grower associations, marketing cooperatives and private-sector grants. The law specifies that no state funds will be used.

The measure is intended to promote the state's farmers, artisan food processors and fishermen by lowering one of the biggest hurdles to buying locally.

The National Restaurant Association and nearly 20 state restaurant associations joined hundreds of other employer organizations this week in asking the National Labor Relations Board to withdraw a proposed plan to dramatically speed up the timeline for holding union elections once a union petition has been filed.

Restaurants sales have remained steady following a record high in June, industry experts say.

According to preliminary figures from the U.S. Census Bureau, eating and drinking place sales in July held at $40.9 billion after hitting that record number the month before.

"Sales through July are on pace to post their strongest growth since 2007 -- something we projected in the association's 2011 Restaurant Industry Forecast," said Hudson Riehle, senior vice president of the National Restaurant Association's Research and Knowledge Group.

A new type of food festival is helping restaurants break into local sourcing, usually with an immediate payback in sales.

A riff on restaurant weeks, the events pull local establishments into a limited-time joint promotion. But instead of trumpeting restaurant weeks’ prix fixe deals, the festivals spotlight places that feature local foods.

“Some of the restaurants were totally new to offering local foods, and some were old hands,” said Natalie Woodroofe, who handled communications for the 30 Mile Meal Restaurant Week in Athens, Ohio.

For Sandra Clavijo, learning about food and sharing that knowledge is the spice of life.

A 2009 graduate of the National Restaurant Association Educational Foundation's ProStart program in Atlanta, Clavijo, 20, said immersing herself in culinary training at age 15 changed and enriched her life in myriad ways she didn't anticipate then, but is grateful for now.

"I look at how I was before ProStart and after and can't believe how much I grew," she said. "Today I'm really focused in school and in everything I do. I feel like my friends are just figuring out what they want to study in college, but I know what I like and want."

If you want to help promote travel and tourism as a way to boost the success of the U.S. restaurant industry, consider applying for a spot on the U.S. Travel and Tourism Advisory Board.

Going green at your restaurant doesn't have to be expensive and could even end up saving you money in the long run, says Atlanta-based restaurateur George McKerrow Jr.

"There is a real cost benefit," McKerrow, a former National Restaurant Association board member, said. "You can save money and learn new ways to do business that are more in tune with being part of a sustained community. It seems to me more people want to do it, but the more nervous they are [about the economy] the more likely they are to abandon their environmental efforts. They think it costs more or is hard to do. But we say do what you can and just pick up the trash and change the light bulbs when they burn out if you can't do anything else. It doesn't have to be ... glamorous. You don't have to go out and build a LEED-certified or totally sustainable restaurant. But every little bit does help."

McKerrow, who co-founded the Ted's Montana Grill dinnerhouse chain in 2002 with entrepreneur and environmentalist Ted Turner, and founded the LongHorn Steakhouse chain that was acquired by Orlando, Fla.-based Darden Restaurants Inc. in 2007, said he has saved hundreds of thousands of dollars in water and energy costs by converting the lighting at his restaurants and installing more efficient equipment in the kitchens and bathrooms.

As the federal government continues its work to implement the 2010 health care law, the National Restaurant Association is working to provide the restaurant industry's feedback on proposed regulations.

The most recent proposals come from the Departments of Health and Human Services and Treasury. The agencies on Aug. 12 released proposed regulations on how employers will interact with state insurance "exchanges" (which will market health insurance to many small businesses and individuals), as well as standards detailing what makes an employer health plan "affordable," and which individuals will qualify for tax credits and other government assistance to help them purchase health insurance health insurance through the exchanges with premium tax credits.

The Aug. 12 proposed regulations are extensive. The National Restaurant Association is analyzing this latest round of regulations to ensure that the rules are workable for restaurant employers, and will comment within the required 75-day comment period.

See more on the proposed rules:
-- Exchange eligibility and employer standards (proposed rule, fact sheet)
-- Premium tax credit eligibility (proposed rule, fact sheet)
-- Medicaid eligibility (proposed rule, fact sheet).

Washington - Personal relations is the new public relations, a new media expert asserted at a webinar hosted by the National Restaurant Association, so restaurateurs seeking to build brand awareness and sales must fully embrace social media.

"Let people know you are out there and that you care about them," said Amanda Hite, chief executive of Talent Revolution, a Brookville, Ohio-based consultancy specializing in social networking. "There is a shift taking place; companies don't own the media anymore - not TV, radio or print. The media is people. You need to be personal with people."

The webinar, "Activating Social Media to Drive Sales for the Greater Good," sponsored by American Express, explained how to generate word of mouth, traffic and boost participation for Share Our Strength's Dine Out for No Kid Hungry event, Sept. 18-24, which aims to help eradicate childhood hunger.

The national unemployment rate has changed little over the past year, but the restaurant industry is outperforming the overall economy in job growth, economists for the National Restaurant Association say.

Hudson Riehle, senior vice president of the Association's Research and Knowledge Group, said during the past year restaurants had hired workers despite the country's sluggish economic recovery.

The industry has added 205,000 jobs since the recovery began, but Riehle noted, it is still 161,000 jobs down from its prerecession employment peak.

Debit-card companies and their allies continue to hammer away at a new federal law that will limit swipe fees for merchants when guests pay by debit card.

But the card companies and their allies are getting defeated at multiple turns.

In his latest commentary, the National Restaurant Association's Chief Economist Bruce Grindy breaks down the latest restaurant establishment trends on the metropolitan area level.  The New York metropolitan area led the nation in restaurant location growth in 2010, while New Orleans registered the strongest growth in percentage terms.   

On the national level, the restaurant industry added nearly 7,700 eating and drinking place establishments* in 2010, according to data from the Bureau of Labor Statistics.  As mentioned in a previous post, trends were mostly positive on the state level in 2010, with 41 states (including the District of Columbia) adding locations and just 10 states losing locations in 2010. 

Drilling down to the city level, the New York metropolitan area added a net 1,714 locations in 2010, easily the strongest growth among U.S. cities.  The Boston area added a net 345 restaurant establishments in 2010, while Chicago’s restaurant industry grew by 318 locations. 

The Wall Street Journal is seeking applicants for its "Small Business, Big Innovation" competition to celebrate America's entrepreneurial spirit and spotlight pioneering innovation and creative thinking. 

The $604 billion restaurant industry is a hotbed of entrepreneurial success stories, opportunities and spirit. Though that spirit has been challenged during the economic downturn, many restaurant operators found creative ways to get through those difficult times.

"Facing tough times, many entrepreneurs did something creative, imaginative or cutting-edge with their business models, which allowed them to survive and thrive. We want to hear your stories," the Journal writes on its website.

The day T-BONES Great American Eatery introduced salmon to its children's menu, two children in the first party of the day ordered that dish.

The children's salmon dish is one of the restaurant's new Kids LiveWell offerings. T-BONES is one of the smaller restaurant companies participating in Kids LiveWell, the National Restaurant Association's new initiative to promote healthful children's options.

Kids LiveWell showcases restaurants that offer children's menu items that meet strict nutrition criteria. Participating companies appear on the NRA's website at www.restaurant.org/kidslivewell, and consumers can search the companies and their offerings at www.healthydiningfinder.com.

Kids LiveWell recognizes the importance of giving parents and children more options and information so they can make choices that are right for their families.

It may not be a huge drop, but every penny counts. A long-time surtax on federal unemployment taxes expired June 30, the Internal Revenue Service recently reminded employers.

The FUTA rate for employers dropped to 6 percent effective July 1, 2011, down from 6.2 percent. Employers pay FUTA taxes on the first $7,000 employees earn in wages in a year. The FUTA tax is paid by employers only. Employees do not pay the tax or have it withheld from their pay.

The IRS says it will revise IRS Form 940, Employer’s Annual Federal Unemployment Tax Return, to reflect the two different rates for 2011. The agency says the revised form will be available by Jan. 31, 2012, the next due date.

The 0.2 percent surcharge has been on the books since 1976. Congress has renewed it several times over that period, but did not act to renew it beyond June 30. Visit the IRS website for more information.
 

The restaurant industry has a head start on building an engaged workforce, National Restaurant Association President and CEO Dawn Sweeney said Monday at the Council of Hotel & Restaurant Trainers' 82nd Hospitality Training Conference. The NRA was a gold partner for the Las Vegas event.

In her state of the industry address address, Sweeney noted that employee  s can serve as ambassadors for the industry. "There is strong agreement that the industry offers significant opportunities for advancement and entrepreneurship," she said. "Eighty-eight percent of foodservice employees say restaurants offer the chance to work your way up the ladder from an entry-level position."

Sweeney noted that most restaurant owners say their first jobs in the industry were an entry-level positions. Many NRA board members started their careers bussing tables and washing dishes, she said. And 81 percent of restaurant employees say the industry is a place where people of all backgrounds and experience can open their own business, she added.

See a video re-cap from CHART featuring Sweeney and Lisa Costello, vice president, political affairs, American Hotel & Lodging Association.

Consumers are spending more discretionary dollars on tourism and dining out this summer despite the economy's sluggish recovery, restaurant and hospitality industry experts say.

"Tourism is doing better," said Hudson Riehle, senior vice president, research and knowledge, National Restaurant Association. "It definitely is stronger in all three categories: business, leisure and international visitors. The trends are improving so that is good for restaurant operators."

According to the U.S. Travel Association, business travel in 2011 is expected to rise 2.6 percent, while leisure travel is tracking growth of 1.6 percent and international arrivals are projected to increase 5.2 percent.

The buzz about beekeeping has many restaurateurs wondering whether they should add hives to attract locavores. The National Restaurant Association asked an expert what establishments should consider so they don't get stung.

Tim Tucker, a hobbyist-turned-professional beekeeper, is a member of the American Beekeeping Federation's executive committee. He offers these guidelines to operators who want to join the growing number of places that produce their own honey.

• Space requirements: You'll need an area of about 3 feet by 5 feet. The bees need access to flowering plants to gather pollen, but they can fly up to 2.5 miles. Suburban locations are ideal because clover, a bee favorite, is common in lawns.

Restaurateurs are leading the charge on Capitol Hill to promote fairness in how federal tax law treats the billions of dollars restaurateurs spend each year to build and improve their operations.

Last weekend, 1,500 produce suppliers, distributors and marketers gathered in Monterey, Calif., for the 30th annual Produce Marketing Association’s Foodservice Conference & Expo.

National Restaurant Association President and CEO Dawn Sweeney took part in much of the action at the event: including visits to Ocean Mist Farms, Driscoll’s berry research facilities and Taylor Farms' processing plant, all in the Salinas valley.

“Growing up, my family had a small roadside produce stand in Maine," Sweeney said Saturday at the conference. "I worked in the fields and at the stand and learned a lot about customer service, the value of hard work and the importance of offering high quality goods. My farm background has served me well my entire professional life."

The Virginia Department of Corrections has cooked up a plan to help prison inmates re-enter society. The plan involves instruction and certification in food-safety courses that could lead to employment in the restaurant industry.

The program, which incorporates the teachings of the National Restaurant Association’s ServSafe food safety training and certification program, rolled out last May and has been completed by approximately 300 inmates scheduled to complete their sentences in one to three years, said Mark Engelke, state director of food service for the Department of Corrections.

He noted that the program is part of the Virginia Adult Re-Entry Initiative, a mandate from Gov. Bob McDonnell’s office to reduce recidivism throughout the state. In order to help ensure a positive outcome, inmates are trained so they can find work following their releases from prison. Engelke added that the first step in achieving that goal was forging an agreement with the Virginia Hospitality Association to purchase ServSafe materials, such as the books and exams that make up the program’s curriculum.

Restaurateurs looking for more information on the Department of Labor's new tip-credit-notice rules can tune into a National Restaurant Association webinar Wednesday, Aug. 3, at 2 p.m. ET.