NRA News Blog

'Dine Out' webinar to show how to boost sales during fundraising campaign

2012-05-16T19:03:50Z

Anti-hunger organization Share Our Strength has teamed up with the National Restaurant Association to host a webinar May 23 to help restaurateurs drive sales and grow business during the next Dine Out for No Kid Hungry campaign.

The event will be held from 3:30 to 4:30 p.m. and feature renowned restaurateur George McKerrow Jr., chief executive and co-founder of the Ted's Montana Grill casual-dining chain.

McKerrow, a 40-year restaurant industry veteran, founded the LongHorn Steakhouse chain and RARE Hospitality Group as well as upscale establishments Aria and Canoe in Atlanta, before rolling out Ted's Montana Grill in 2002. That concept was born when McKerrow, looking to start up an eco-friendly, socially responsible restaurant chain, partnered with billionaire entrepreneur/environmentalist Ted Turner to offer consumers more healthful and environmentally friendly fare, including bison raised on Turner's Montana ranch.

]]> Dine Out for No Kid Hungry is a national campaign that aims - through the support of participating restaurants ‑ to drive sales and raise funds through culinary events that support SOS' imperative to end childhood hunger in America by 2015. This year, the Dine Out will be held Sept. 16-22. Last year, more than 5,500 restaurants raised nearly $2.4 million. This year's goal is to engage 10,000 restaurants and raise $5 million.

The NRA last month announced its commitment to help Share Our Strength triple the amount of funds raised during the Dine Out for No Kid Hungry campaign through 2013.

Adding technology to the menu [infographic]

2012-05-16T14:30:38Z

There is no doubt that technology is changing how restaurant personnel and guests interact with each other. Because of this, the National Restaurant Association has created an infographic for Mashable.com to show what the future may hold when it comes to ordering and payment options, apps, and social media. (Click on the infographic to enlarge).

National Restaurant Association names Kenneth Walters VP of sales

2012-05-16T14:29:58Z

The National Restaurant Association welcomes Kenneth Walters as vice president of sales for strategic accounts. Walters brings more than 25 years of sales and management experience to the Association team, including extensive expertise in food safety to support the organization�s ServSafe Food Safety product portfolio.

�We�re excited to have Ken join our team to focus on building our product and services offerings, including our ServSafe portfolio,� said Paul Hineman, executive director of National Restaurant Association Solutions. �His experience will help drive our product expansion and development to create high quality, innovative products and services for the Association�s 400,000+ members and the foodservice industry at large.�

In his new role, Walters will be responsible for creating the strategic direction and executing a comprehensive sales program for non-traditional channels, including grocery stores, convenience and drug stores, and hotel and lodging. As the Association continues to diversify its ServSafe and partner product revenues, this will be critical to grow accounts and channels.

]]> Previously, Walters was client services manager/food safety with Prometric, where he led the food safety program by developing strategic business relationships and client solutions. In this role, he also assisted in developing and implementing Conference for Food Protection (CFP) standards for accreditation, including all aspects of ANSI surveillance audit compliance. Prior to that, he held key positions at Office Max, Galyans Sports & Outdoors, and Sportmart.

Walters holds a BS from University of Minnesota Carlson School of Business, and lives in Rosemount, Minn. He will report to Hineman.

Operators say social media gets marketing message out

2012-05-15T20:08:04Z

A majority of U.S. restaurant operators are embracing social media as the preferred method of consumer marketing, new research from the National Restaurant Association has found.

The national survey, conducted in partnership with online marketing firm LivingSocial, found that 69 percent of all operator respondents participated in social media to publicize their restaurants, while 58 percent advertised in coupon booklets, 56 percent utilized direct-to-consumer email, 53 percent advertised in their local newspapers and 45 percent placed ads on the Internet.

According to Hudson Riehle, senior vice president of the NRA's Research & Knowledge Group, the use of online marketing as a communications tool will continue to grow going forward, and restaurateurs recognize its importance in attracting more customers to their respective businesses.

]]> "More operators are seeing online marketing's strong potential to grow both revenue and customers," Riehle said. "As more tech-savvy consumers rely on computers and mobile phones to help them make their dining and entertainment choices, social media is becoming the go-to source for quick-hit information. Restaurateurs recognize this and are looking to tap into the growing trend."

Among fullservice operators, 73 percent said they used social media to publicize their restaurants' specials and services, while 47 percent found coupon booklets useful, 64 percent utilized direct-to-consumer emails, 56 percent advertised in their local newspapers and 45 percent placed ads on the Internet.

For quickservice operators, the findings varied somewhat. Among operators polled, 62 percent said they used social media as their preferred method of marketing communications, but 69 percent stated they advertised their businesses in coupon booklets, 49 percent sent direct-to-consumer emails, 51 percent advertised in their local newspapers and 45 percent advertised on the Internet.

Court invalidates ambush-election rule

2012-05-15T20:00:06Z

A federal court this week nullified the National Labor Relations Board's ambush-election rule.

The U.S. District Court for the District of Columbia held the rule invalid due to the fact a quorum of three members was not present when the rule was adopted Dec. 16, 2011.

"The restaurant industry, the nation's second-largest private sector employer and an industry comprised mostly of small businesses, is pleased that another shot-gun regulation, and one of our top targets for repeal, has been invalidated by the courts," said Angelo Amador, vice president of labor and workforce policy for the National Restaurant Association. "Last month, more than 3,000 members contacted their senators seeking legislative relief from this regulation, which failed on the senate floor on a party line vote. We are pleased that yesterday's ruling makes legislative relief unnecessary."

]]> The NLRB rule would allow union representation elections to be held in as few as 10 days after the filing of a union petition. This move would shorten the period between petition to elections to such a degree that it would deny employees the time and information needed to make an informed decision on union representation.

The National Restaurant Association, as part of the Coalition for a Democratic Workplace, was among the plaintiffs in the case filed by the U.S. Chamber of Commerce and the CDW.

The court did not address the merits of the rule. NLRB is expected to appeal, but the earliest a court would rule on the appeal would be in October or November. NLRB also may attempt to reissue the rule, which the NRA said would invite an additional legal challenge.

Menu consultant shares thoughts on emerging trends

2012-05-14T12:34:12Z

The past six months have been busy for new product development, according to Nancy Kruse, a menu trends expert who revealed her observations last week at the 2012 National Restaurant Association Restaurant, Hotel-Motel Show.

Kruse cited examples of new items in three categories that she predicted will continue to grow, including comfort foods, food trucks, and authenticity.

In the comfort category, she said, new bread products are evolving, particularly waffles and pretzels. New versions of chicken and waffles, waffle sandwiches, upgraded Belgian waffles and savory waffles are appearing in everything from quickservice chains to fine dining restaurants, she said.

]]> In addition, a hot-dog resurgence is catching the tailwind of the better burger revival, Kruse said. Regional hot-dog preferences have held back the trend, but some chains recently have added some of the regional flavors to their menus.

Food trucks also are succeeding because of their personalized, made-to-order service style, she said. About 30 large chains have introduced food trucks and use them for catering and bringing their products to local events.

Kruse said "menu innovation" is making inroads around authenticity, artisanal and handmade techniques, even in national chains. Hand-scooped milkshakes and hand-breaded chicken at Carl's Jr. qualify, as do fresh-cut fries.

The return of butchery and nose-to-tail meat cuts and foraging, where municipal health departments permit it, are other developing examples she cited. Some restaurants, hospitals, and universities are growing some of their own produce, and advertising is promoting the farmers, growers, and fishermen who supply restaurant chains.

Finally, Kruse advised attendees to watch for sustainable initiatives. "No matter what your segment, there are multiple opportunities for you to tap into this phenomenon," she said.

Eco-friendly packaging, sustainability practices explored

2012-05-14T12:26:03Z

Switching from wax coated, corrugated cardboard packaging to more eco-friendly varieties can happen through better communication and collaboration among suppliers, manufacturers and industry members, sustainability and foodservice experts said at an NRA Show education session last week.

The session, "Challenging the Value-chain to Transform Transport Packaging: Eco-friendly, Wallet-Friendly Solutions", examined some of the current packaging options available and discussed how foodservice operations could become more sustainable in their practices by eliminating paraffin-wax-coated boxes from their respective inventories.

Moderated by Lily Kelly, program director for the Coalition for Resource Recovery, or CoRR, a division of sustainability nonprofit Global Green USA, the session featured panelists Myles Cohen of Pratt Industries Recycling, Pete Bugas of Interstate Container, Larry Saywell of chicken producer Mountaire Farms and Linda Dunn of contract foodservice concern HMSHost Corp.

]]> According to Kelly, approximately "1.45 million boxes are covered in paraffin wax, so they can't be recycled," she said. "The cost is about $200 million in foregone revenues and hauling fees." She further added, "There are coatings available that are recyclable."

Kelly also noted that Global Green and CoRR is currently focusing attention on the produce industry because, "By far it is the biggest piece of the pie."

In addition to looking at packaging options, the panel explored some of the issues currently surrounding the practice of sustainability.

Saywell, whose firm hatches approximately 6 million eggs per week, said his company has a "tremendous desire to reduce our energy [footprint]." To that end, he noted Mountaire has eliminated the wax-covered boxes from its production process because it is "an oil derivative." He added that the company also reduced its water consumption by incorporating better technology that cut down on its use of ice and provided recycling options versus sending waste products to the landfill like it normally did.

"Break out of your shell," he told session attendees. "Think about sustainability; it's absolutely critical to our survival. Demand your suppliers look at [alternatives] and support the people who are driving these things forward."

Linda Dunn, vice president of supply chain and analysis for HMSHost, said the onsite concern, which specializes in contract foodservice operations at travel hubs such as airports and auto plazas, has focused on several sustainable initiatives, including reducing its total environmental impact and offering consumers more products that are rooted in wellness and nutrition.

Dunn noted, however, that the company has faced a number of challenges in adhering to its sustainability pledge. They include:

� space contraints (for the recycling and composting of materials)

� infrastructure issues (not enough composting or recycling facilities available)

� employee education (many different languages need to be understood)

� collection and measurement of sustainability metrics and/or data

� lack of cradle to grave independent assessments

"To make progress," she said, "you do have to measure and develop a baseline. You also have to ensure you have top management support, make it fairly easy to find new ideas and report back out to your participants [on progress made].

Dunn further stated that she sees a bright future for sustainability in the foodservice industry. She envisions an increasing number of recycling and composting suppliers entering the space as well as more viable options available to operators.

"I've always said you need two horses in a race to be competitive," she asserted. "We also need more impartial third-party data and data sources. Progress also will be made on cross contamination and space issues, and there will be better collaboration, a greater sharing of best practices."

Relevancy, customization keys to online marketing success

2012-05-11T12:52:36Z

Restaurant companies that engage in online marketing are viewed by consumers as more sophisticated than other brands that don't, industry veterans and social media marketing experts said recently at the 2012 National Restaurant Association Restaurant, Hotel-Motel Show in Chicago.

"Consumers think customized online marketing enhances a restaurant brand's image," said Hudson Riehle, senior vice president of the NRA's Research & Knowledge Group. "Using online marketing makes those brands appear more upscale than those who don't use it," he added.

Nevertheless, Riehle said, it is imperative that restaurateurs who engage in social media and other online marketing tools do it correctly, without annoying any of their current or future customers in any way.

]]> "Those who engage in online marketing must make sure there are no potential annoyances to their customers," Riehle noted.

According to Mandy Cole, senior vice president of sales for LivingSocial, a national online marketer and social media company, stressed to session attendees that using social media tools requires the restaurateur to ensure he or she is targeting the right audience and that the customers like and want the messages being sent to them.

"It's not just about being there [in the space], but also the message you're delivering," she said.

Cole suggested some tips to ensure successful online marketing:

� Customize the message; know the customers' names

� Be relevant

� Remember the customers' preferences

� Offer them savings

"Collect their information so you can send out emails telling them about specials and savings," she said. "Also, make sure your message is relevant to their lives. It has to be meaningful.

The panel, which was held last week, also featured James Balda, the NRA's chief marketing and communications officer, as well as restaurateurs Troy Guard of Tag restaurant in Denver, and Christopher Badger of Freshii in Washington, D.C. It further focused on just-released research that was conducted by the NRA in partnership with LivingSocial. The study was released May 7, during the show.

The full research report provides information on "How to tailor your message and watch your business grow," a quick-tips guide, and "Online, Offline: Integrated Marketing Connects With Consumers," a concise summary of key research findings.

Execs share on complexities of supply-chain management

2012-05-11T12:47:50Z

Developing good relationships with suppliers and distributors is key for restaurant supply chain executives, according to panelists at an education session on supply chain management issues earlier this week at the 2012 National Restaurant Association Restaurant, Hotel-Motel Show.

Strategic suppliers have resources to help restaurant operators get the best quality products at the best price, said Dean Gordon, of Jack in the Box. "Look for those opportunities to bring costs down. Communication is key. Be sure everyone understands your objectives," he said.

Janet Erickson of Del Taco concurred that supply chain people need to speak up to their company's leaders about their challenges, especially since commodities have become more and more volatile in today's economic environment. "We can't change what happens in any of the commodities markets, but we can manage around that and have a plan," she said.

]]> She also said supply chain executives should be involved in menu planning because of their knowledge of issues that impact commodities price fluctuations.

David Parsley of Brinker International and chairman of the NRA's Supply Chain Management Executive Study Group said that all parts of the restaurant business have an effect on supply chain. "The more you can get into the nuances, the more you understand the flow of products into your restaurant," he said.

Independent restaurant operators also need to understand supply chain and to constantly watch for overcharges and ways to save money, Parsley said. Operators should make sure their suppliers know that they have competition and that there are no entitlements.

"Get the right suppliers for your company," Gordon said. "Understanding where you fit in your supplier's portfolio of customers is important."

Erickson outlined additional issues that supply chain executives need to be concerned about today, including new legislation, traceability capability in case of food recalls, animal welfare, and how factors such as weather, geopolitics and turmoil in the Middle East impact the price of commodities, as well as food safety.

Moderator Sam Stanovich, NRA industry relations manager, said it's projected that the restaurant industry will buy $225 billion worth of products this year.

NRA Show: 'It's all right there'

2012-05-10T19:15:31Z

Antonia Asimis recently added a new party room to her four-year-old restaurant. So the owner of Nia Mediterranean Restaurant came to the National Restaurant Association Restaurant, Hotel-Motel Show to look for ways to promote and furnish the addition.

"From display table to marketing ideas, it's all right there," said Asimis.

Although Asimis traveled only a few miles from her downtown Chicago restaurant to McCormick Place, more than 61,000 restaurant-industry professionals came from all over the United States and more than 100 countries to the NRA Show, which closed Tuesday. Attendance at the four-day convention and two-day International Wine, Spirits & Beer Event was up 6 percent from 2011.

]]> Restaurant/foodservice attendance rose 8 percent from last year, while dealer/distributor attendance grew 6 percent. Retail attendance rose 21 percent, and media attendance grew 7 percent. As a result of greater attendance, the number of hotel-room nights sold increased 5 percent from last year.

Restaurant operators searched for food trucks, digital menu boards and other means to enhance their businesses. See videos and photos of the action.

Vincent Benny, vice president of purchasing for Benny & Co. , a Quebec-based full-service family restaurant, spent four days attending education sessions and looking for affordably priced food to serve in his family restaurants. He said the education sessions were especially beneficial.

Al Allamani, a manager at a buffet-style food service company in Las Vegas, said he was impressed by restaurant and foodservice technology advancements on display. After seeing some of those innovations, his company was considering investing in new high-tech equipment, including the automated Coca-Cola Freestyle machine, which he called "amazing." The Coca-Cola Co. promoted the touchscreen machine, which dispenses more than 100 combinations of drinks, customized by the consumer.

Karen Rodgers, caf� manager, Monarch Landing, was among a team of four from the Naperville, Ill., restaurant. They were looking for vacuum cleaners, ovens and other items to help them save money and operate more efficiently, she said.

"This show provides us the opportunities to check out lots of options and the latest products in the market," she said. "And that is what we need."

More than 1,900 companies exhibited innovations in technology, franchising, equipment, food and beverages, d�cor and design, as human resources, marketing, payment processing and other services. Of them, 500 were new exhibitors. The number of IWSB exhibitors spiked 40 percent from 2011.

Jollen Tan, owner of What's Cooking, a Chicago company that conducts culinary events and cooking classes, signed up for the NRA's EmployeeEdge program. EmployeeEdge is a reloadable debit card for discounts and purchases. Employers employer load wages onto the card and employees use money on the card to make payments and purchases.

"It's a great concept," said Tan, who collected $27 in 10 seconds in a money booth to promote the program. "It gives you more control of your budget, and you can use it pretty much anywhere."

The NRA Booth also featured demonstrated management and culinary demonstrations by ProStart high school students and cooking demos by Kids LiveWell partners Kraft Foods and Sodexo.

The 540,000 square feet of exhibit space featured several areas to promote specialty products or services, such as Ask the Design Experts, American Food Fair, Conserve Solutions Center, Dealer Distributor Center, Healthier Kids Fare Pavilion, International Cuisine Pavilion, Organic & Natural Pavilion and Technology Pavilion.

In the International Cuisine Pavilion, the Trade Commission of Chile featured countries that specialized in wine and olive oil. Nearby, Danielus Acas, a spokesman for Lithuanian Spirits, unveiled the company's natural fruit flavored vodkas. The long-time NRA Show exhibitor was looking for wholesale suppliers to expand its presence beyond Illinois, New York, California and Texas.

"We are very happy about the Show," Acas said. "The response has been very good."

The NRA Show also featured demonstrations and book signings by celebrity chefs and well-known restaurateurs in the World Culinary Showcase.

Other highlights of the NRA Show included the Operator Innovations Awards, the IWSB Star of the Bar Mixology Competition, the Hennessy Hill Awards, a keynote address by former President Bill Clinton, and the Ecolab Chairman's Reception and Silent Auction.

The Operation Innovation Awards were announced May 5 at the Destination: Celebration event at the Harris Theater Rooftop Terrace in Millennium Park. Patti Frank from Chicago's Roots Handmade Pizza was named Star of the Bar May 6 at the Restaurants Rock party. The Hennessy/Hill awards, which recognize excellence in military foodservice, were announced May 5 at an awards breakfast.

About 700 people attended the May 6 Ecolab silent auction, which raised $128,750 for the National Restaurant Association Educational Foundation's ProStart program.

The NRA Show will return to McCormick Place May 18 through 21, 2013.

High school students bring organic energy to NRA Show

2012-05-10T15:46:33Z

Choosing a name that stands out, creating a healthy and affordable menu, designing an interior that complements the brand image and managing the budget in a way the business can survive and thrive are among the challenges in starting a new restaurant.

Normally, those tasks are undertaken by seasoned industry professionals or motivated entrepreneurs. But throughout the country, thousands of high school students are looking at ways to develop a restaurant concept in a highly competitive market and less than stellar economy.

Four students from Oakland Schools Technical Campus Northeast in Michigan demonstrated their business plan for a casual-dining restaurant Tuesday at the National Restaurant Association Restaurant, Hotel-Motel Show. They were among several ProStart teams who showcased their management and culinary skills at the NRA Booth throughout the four-day trade show in Chicago.

For them, the Oakland students, developing their restaurant concept was all about creativity, passion, hard work and fun.

"We learned so much, and we loved it," said Erica Butts, Andrea Gaytan, Catherine Loscher and Lauren Parsch-Byczybski.

]]> ProStart is the National Restaurant Association Educational Foundation's two-year program for high school students that develops the best and brightest talent into tomorrow's restaurant and foodservice industry leaders. Students apply what they learn in the classroom into a business plan as if they are actually are opening a restaurant.

During the NRA Show, the Oakland students took turns presenting their business plan in a well-orchestrated manner with a PowerPoint presentation. Loscher, the only junior on the team, explained the unique meaning of the restaurant's name and why they chose it. She said, "Jardin means garden in both French and Spanish. We want our restaurant to have an image of being fresh, organic and seasonal."

Gaytan revealed the meaning behind their leaf-shaped green logo: it represents health and vitality, which is reflected in the restaurant design, such as wood flooring, white and green walls, and tables and chairs.

The organic and healthy nature of "Jardin" is clearly reflected in the well-thought out menu. Loscher introduced a vegetable wrap, fettuccini alfredo and stuffed chicken breast. The students listed the cost of each item used in the dishes in their business plan to show they could make the menu healthy and affordable.

Realizing that marketing is an integral part of a restaurant's success, the team chose to use radio commercials to promote the restaurant. They also planned to use social media networks such as Facebook and Twitter to reach target customers. They also planned to give promotional pens with the restaurant's name.

"We are not any ordinary restaurant," Parsch-Byczynski concluded. " We are a creative, artistic and sophisticated one that is ready to serve you."

When asked how they made their decisions to start "Jardin," the students said they initially went through a lot of ideas and narrowed it to the eco-friendly idea because they thought it was good for health and the environment.

"We just want to do something simple and creative," Loscher said. "I was able to learn what I want to learn and our wonderful teachers led us down the road."

After the presentation, Parsch-Byczynski shared her dream for the future: "I want to open my own restaurant, and this program not only teaches me the how to run a restaurant, but also the business part of it."

Butts said, "There are just so many cool opportunities for us, such as building a stronger resume, gaining good experience, working together with a team. I also learned how to run a business. I plan to open my own restaurant in the future and this program teaches me how to start off right. We received a lot of support from our instructors, classmates and parents."

The students' teacher, Frank Costanzo, described them as excellent. He teaches about 120 ProStart students.

"They used all they learned in the classroom and applied it to their business plan," he said. I am very happy that they had the opportunity to present here today."

Organic & Natural, Healthier Kids pavilions highlight health

2012-05-10T14:10:32Z

In today's health-conscious world, consumers increasingly demand wholesome, nutritious and environmentally friendly food products. At this year's National Restaurant Association Restaurant, Hotel-Motel Show, the Organic & Natural Pavilion and Healthier Kids Fare Pavilion bustled large crowds looking for solutions to boost their restaurant and foodservice businesses by taking advantage of this trend.

The Healthier Kids Fare Pavilion, new to the NRA Show this year, featured companies that could help restaurants expand nutritious offerings for children's meals. They included the USA Pear Bureau, which promoted recipes for kids' meals that used pears.

"Operators might have one of two things with pears � in desserts or salads � but we're showing them how to think about pears in new ways," says Pear Bureau Communications Director Christie Mather.

Mather and Shawn Davis, president of CBS Foods, said the pavilion was a good fit for their organizations. CBS, a Nashville, Tenn., company promoted shrimp burgers as a lean protein alternative for children's meals.

"It fits everybody," CBS Foods Vice President Robin Davis says. "If kids don't like seafood, they like shrimp."

A wide array of products were featured at the Organic & Natural Pavilion, ranging from organic meat, pasta, baked goods, vegan items, sweeteners, tea and spices. Exhibitors included household names such as, Amy's Kitchen, Bobs Red Mill Natural Foods, Dannon Food Services and Pacific Natural Foods.

Tina Soong from Vege USA LLC said she was pleased with the response from operators to her Vegetarian Plus meat alternatives. This was the company's second year at the NRA Show.

Award-winning Simpli OatShakes attracted lots of attention from exhibitors. The company showcased a line of Its natural, vegan and GMO-free oat beverages.

In the same pavilion, a more exotic offering could be found at the Ace Farm USA booth, whic offered roasted seaweed snacks. Company Director Brian Lee said his company wanted to revolutionalize the way America snacks with an alternative to potato chips.

The offerings complemented restaurateurs' efforts to offer more healthful options to consumers, including nutritious children's meals such as those provided by members of the NRA's Kids LiveWell initiative.

On the menu: FDA plating up nutrition disclosure

2012-05-09T19:50:46Z

Two panelists brought attendees at an NRA Show 2012 education session this week up to date on the status of a new FDA law that would standardize menu nutrition labeling across the country.

Dan Roehl, senior director of government affairs for the National Restaurant Association, said the new law won't be enforced until at least six months after the publishing of its final rules, which is unlikely to occur before November, possibly later. The NRA has been working with the FDA on the proposal, which would affect restaurant chains with 20 or more units that have the same menu.

"We're hopeful we will see more time than six months, but we're advising operators to be prepared to implement them six months after the final regulations are released," Roehl said.

]]> The law preempts existing municipal or state laws that vary in requirements. Those laws started cropping up in 2006, when New York City became the first government entity to put a nutrition labeling law in place. Such laws present special challenges to companies that operate regionally or nationally.

Caloric content of menu items along with the recommended daily caloric intake will be listed on menus or menu boards. Also, a statement that additional nutritional information is available upon request will be included on the menus.
Exempt items are specials, condiments, limited-time offers, custom orders and test market items.

The FDA is still determining what similar retail food establishments, such as coffee shops and pastry stores, would be covered by the law. "Our theory is it should fit the same definition as restaurants," including convenience stores and grocery stores, Roehl said.

Alcohol is not included in the proposal because the FDA does not regulate alcohol, but that possibility is being evaluated.

Preparation for this law is key, added Cicely Simpson, senior director-government affairs for Dunkin' Brands. She advised operators to read through the entire lengthy proposal so as not to overlook anything. "You need a plan for implementation," she said.

Tax reform would have major impact on restaurant business

2012-05-09T19:44:53Z

Reforming the tax code is a major legislative issue, one that could have a huge impact on the way restaurant businesses operate, accounting experts said during an education session at the 2012 National Restaurant Association Restaurant, Hotel-Motel Show in Chicago.

The session, led by Dave Koenig, the NRA's vice president of tax and profitability, and Bob Carroll of accounting firm Ernst and Young's quantitative economics and statistics division, was held earlier this week at the show. The two focused on what restaurateurs can expect regarding tax reform.

"The major hurdle [affecting] tax reform will be the leadership to move forward," Carroll told session attendees. "If Obama is re-elected, there will continue to be a [Congressional] divide. If Romney is elected the path for tax reform becomes clearer." However, he added, "There will be a strong desire on both [the Democratic and Republican] sides to deal with entitlement reform."

]]> Carroll and Koenig looked at facets of the Widen-Coats Bipartisan Tax Fairness and Simplification Act of 2011 and the President's Fiscal Responsibility Commission report as a jumping off point of where tax reform could go.

Potential key impacts of tax reform under either or both plans could include:

� Dividends and capital gains would be taxed at a top 35 percent tax rate

� Repeal of FICA tip credit, which would affect full-service operators

� Repeal of 15-year depreciation provision

� Limited deductibility of interest expenses

� Repeal of graduated corporate rate schedule

Carroll said the restaurant industry would be greatly affected by the proposed changes to the tax code because, "One-size-fits-all tax reform does not work for a diverse industry like the restaurant industry."

Strong brand impression is key to food truck success

2012-05-08T00:26:36Z

Pitfalls to avoid in launching a successful food truck received special attention at a recent education session at the 2012 National Restaurant Association Restaurant, Hotel-Motel Show at McCormick Place in Chicago.

In "Roll Out the Right Way: Starting a Successful Food Truck Program," presenter Ross Resnick of Roaming Hunger cited a survey by Technomic Inc. finding that 91 percent of respondents said food trucks are not a passing fad, but are here to stay and are cropping up in cities of various sizes all over the country.

The first mistake a food truck entrepreneur can make is to fail to create a strong brand impression. "You have to build your brand before anyone has a bite of food," Resnick said. "Develop your concept and menu first-don't buy a truck and then plan your concept."

]]> Menu "mishmash" is a second common mistake. The menu must be small enough to execute in a small kitchen, said Resnick, adding that the menu and concept should be determined before the kitchen is built.

Another mistake is to choose the wrong location that doesn't fit the customer demographic. Of course, operators also must learn about legal restrictions, health permits, business licenses and all such details. "Join food truck associations that can look after the rights of vendors," he said.

Operators must get out of their trucks and promote their businesses. "You must not run your business from your kitchen," Resnick said. Owners can hand off chores such as cooking and cashiering to employees while they meet their customers, hand out samples or take orders outside of the truck. "Promotion is critical," he said.

Don't go into this business expecting to get rich quick, he said, adding, "It's not an overnight sensation kind of business." Food trucks are no longer a novelty and must be built as sustainable businesses where customers want to eat frequently, he said.