As you well know, restaurants and the entire food service industry have been facing an onslaught of challenges the past couple years. A huge one is the ongoing labor crisis. Restaurant owners and managers have been struggling to find employees to fill their staff. If that weren’t hard enough, restaurant managers themselves have become scarce as many have left the restaurant industry entirely. So, how do restaurant owners deal with this management crisis? Management bonus plans.

Motivating and rewarding great restaurant management is a crucial component to successful business operations. Incentives and bonuses can be given to managers to consistently improve productivity, innovation, morale, sales, goal achievement and loyalty.  Oftentimes, however, are left wondering: what exactly is the best method to deliver a bonus. How much should you offer? What are the industry standards? What types of incentives should I offer? How often should I grant bonuses?

To answer these questions, let’s take a look at different elements of bonus and incentive plans that work – where hopefully you’ll find inspiration for the design of your management bonus plan at your restaurant.

Effective Bonus Plan Elements

To develop a successful incentive bonus plan for your management team, you will first need to make a detailed manager job description for your restaurant. Without this manager job description, the managers you end up hiring in your restaurant won’t know what bar they or their staff will be judged by, which will make your business suffer. A major benefit of this is that your hyper-specific restaurant manager job description can serve as an outline for creating your management bonus program.

Next, cost accounting has to inform your restaurant manager bonus plan. Budgets have to factor into bonuses. They make an owner’s life easier by providing the ability to establish targets, evaluate financial performance, and operate a profitable business. There are many cost targets you can track in the management your restaurant, but some of the most impactful deal with the percentage of food cost, labor cost, pour, and prime cost cost. Prime cost refers to cost of goods sold and labor targets. In addition to setting budget goals, you must provide your managers with a detailed plan for exactly how they will make their targets. Otherwise, they’ll be going upstream without a paddle or map – not a good strategy for your managers, staff, or your restaurant.

Other useful elements in a management incentive plan are scoring systems. While you shouldn’t make scoring systems your sole judge, they should contribute to your evaluation of how the managers are performing in your restaurant. Manager Scoring systems can incorporate health department inspection score, customer complaints, and customer comment cards. Aside from low sales, low scores on these scales can really hurt a restaurant and negatively impact the moral of your employees.

Another crucial element in an effective bonus plan for managers in your restaurant is regular executive evaluation and feedback. You should make a plan to review the performance of your managers with them. View it as a collaborative process with the managers in your restaurant. Quarterly goals tend to work better than monthly ones in evaluating bonus plans for managers. This will keep the management team on track and make your business goals more attainable since managers in your restaurant will be more likely to buy in to a plan based on their input. Downstream from that, your managers will model this to your hourly restaurant employees, which will make your restaurant a well-oiled, revenue-generating machine – icing on the cake.

If you are looking for even more specifics on what an effective bonus strategy for a restaurant manager looks like, Restaurant Business offers some great examples:

• “Bonuses based on a percentage of sales over a budgeted or historic target.
• Bonuses based on specific metrics such as raising revenue while lowering food cost, labor cost or prime cost.
• Bonuses as a percentage (commission) on catering/private dining sales.
• Bonuses based on strategic sales or control initiatives such as increasing the percentage of bar sales, reducing voids or raising check averages.”

Remember, not one size fits all – that’s especially true when it comes to restaurants. The food, chef, staff, sales, inventory, and bar are different from restaurant to restaurant . So, why would a bonus for managers be any different? Pick and choose the bonus elements that will work for your restaurant’s plan.

While incentive bonus structures will vary from business to business, here are a few great resources to help you gain a better understanding on what other restaurants are doing.

Other Resources for Developing Restaurant Management Incentive Programs:

• Nation’s Restaurant News: 5 takeaways from Chipotle’s game-changing employee
• QSR Web: Taco Bell offering paid sick days, $100,000 GM salaries
• RestaurantReport.com: What Should You Pay a Restaurant Manager?
• Forbes: A Well-Rounded Restaurant Staffing Strategy Includes New Technology

Do you need assistance in developing a cost-effective incentive-based bonus plan for your employees to help meet your business’s goals? Contact Synergy Restaurant Consultants to see how we can help improve your bottom line through a successful employee incentive program. Better yet, we developed a top of the line  training course – Synergy U – that covers every conceivable management topic in detail with all the tools you need to make your restaurant operate at peak efficiency. If you’re a restaurant owner, you can develop a top-notch bonus program using the course content as an indispensable resource. If you’re a manager, you can really take your game to the next level with Synergy U.

So you want to build your own restaurant startup? Who could you blame you – the restaurant and food industry is exciting and highly rewarding.

Starting a restaurant is a dream for many, especially for those coming from a culinary background. For the dream to become a reality, there are often significant hurdles to overcome, and merely having culinary knowledge isn’t enough. But let’s say you’ve got the business plan completed, business capital gets secured, you’ve got your supply partners in place and your location is being remodeled– things are starting to take shape, right?

During the restaurant opening, you’ll need more staff, since many will drop out or be asked to leave. With that in mind, management needs to consider how many team members will be required to open the restaurant and what the ideal number of staff will be needed to run it once it normalizes efficiently. They need to keep these two numbers in mind when hiring. The restaurant staffing needs would be calculated based on the restaurant normalizing 3-4 weeks after opening.

Let’s take a look at a concrete example. If you believe you need 60 or more front of house and back of house staff members to cover all shifts, then you need to host a hiring fair and hire 160 people. Why 160 and not just 60? The reality is that 12% to 15% never show up for orientation, while 10% will attend orientation and decide the job isn’t for them. We find that 10% drop out during training, and another 10% will prove not to be a good fit for the job.

Get Organized: Details will Make or Break Your Startup

A reasonable timeline is for management to organize a job fair 6 to 7 weeks before opening. To attract enough people, be sure to have a lot of exciting things to talk about, such as employee benefits, financial compensation, growth opportunities, work culture, and other employee perks (free food?!). Get organized first: find a venue, assemble your restaurant team, prepare your interview questions for each role needed, and spread the word about the job fair through social media and other news outlets (radio, television, print ads). Plan on hiring at least hiring 2 to 3 times the people you need!

Don’t forget that successful staffing doesn’t end at hiring. You must have training processes in place as well as the critical employee handbook –  crafted by the founders, partners, and management team of your restaurant startup. The employee handbook at your restaurant startup should cover everything from the food label system to restaurant management systems to the tablet pos platforms (point of sale platform) used at your restaurant. When employees quit, you should conduct exit interviews to understand their choice and to uncover any issues that may be causing employee dissatisfaction within your restaurant or restaurants.

Speaking of training – this is a major pitfall for both veteran restaurants and startups. Many restaurant training systems throughout the country do not embrace new tech, instead opting for outdated software and platform learning systems. As a result, employees and management at these restaurants lose interest and are often only equipped with reactive information, not proactive. Training tech and learning management software have rapidly evolved in the past 5 years – so why not take advantage? Your restaurant startup can make your training more engaging and accessible by converting your handbook to the virtual and mobile space. You can even utilize software that will turn the training information into a game among employees at your restaurant. Friendly competition at restaurants and startups encourages an culture of fun and growth. At Synergy Restaurant Consultants, we can help you develop and implement top of the line training systems – whether you are looking to build your startup or already operate multiple restaurants. We even offer a newly minted, virtual restaurant management course – Synergy U – that provides you with all the tools and information you’ll need to handle these manpower issues with complete confidence.

Quick Note: Don’t forget about restaurant laws!

It’s important not to overlook the laws and regulations of your country and locality while you are assembling all these pieces of the restaurant pie. As the owner of a restaurant startup in the US, you are subject to a variety of federal and state laws; federal restaurant labor laws originate in the Fair Labor Standards Act (FLSA). These laws are designed to protect restaurant employees’ rights in the food service industry. They address several topics, including:

• Minimum revenue for subjection
• Minimum wage requirement
• Deductions and minimum wage
• Tips and minimum wage
• Overtime
• Overtime and tips
• Youths and minimum wage

Restaurant owners and management also need to be aware of the Occupational Health and Safety Act (OSHA) and laws enforced by the Equal Employment Opportunity Commission (EEOC).

In addition to these federal laws, you will need a variety of permits and licenses to startup a restaurant. Depending on which state your restaurant or restaurants operate in, you may need:

• Business license
• Food service license
• Liquor license
• Food handlers permit
• Certificate of occupancy
• Sign permit
• Music and entertainment licenses
• Valet parking permit
• Seller’s permit
• Resale Permit

Check the website of the state and county your restaurant or restaurants are located in to view their resources for the permit approval process.  While it can sometimes be a headache keeping track of all these laws, failing to follow one or more of them can cost your restaurant startup big time! If you need any help taking care of the legal side of starting a restaurant, multi-unit franchise, or chain – please reach out to us. Our team features experts with decades of experience in every single facet of restaurant ownership and management.

As you can see, adequately staffing your restaurant is no easy feat; however, with proper planning and the right information, it can be done! The growth of your restaurant startup depends on it!

How did you decide to become a restaurant consultant?

After graduating from the Culinary Institute of America (CIA) and working at Windows on the World Restaurant in the North Tower of the original World Trade Center, I had the opportunity to meet and ultimately work for Joseph Baum, who at the time was the most prominent and renowned restaurant consultant in the world who created many iconic New York restaurants.

My exposure to Joe and his team of industry giants who traveled the world helping organizations create new and exciting restaurants and unique dining experiences that changed how people used restaurants was my inspiration.  I thought Joe had the ultimate career and I hoped that someday I would have the opportunity to leverage my knowledge and experiences to help others and become a restaurant consultant.

What was your best memory while attending the CIA? 

My education at CIA was an incredible experience, and the Chef’s and instructors were fantastic.  What made it memorable was the ability to take classroom education and skills and then apply them on weekends while working at Windows On The World Restaurant. For the first two months I was pitting olives in the Garde Manager Kitchen, and then one evening, there was a kitchen altercation, and the next thing I knew, I was making soufflés and decorating cakes in the pastry kitchen. Being avid skiers, The Chef and I hit it off immediately. As a result, he moved me around many parts of the kitchen, and I got an amazing education working in the busiest restaurant in the world. 

A very close CIA friend managed to land a part-time job working on the Rockefeller estate in Tarrytown NY, on weekends.  Because all of the exclusive parties and events at the estate he needed a Co-Chef to assist in all of the food preparation and service.  It was often a laid back event allowing us to get to know many of the guests as they were always excited to hang out in the kitchen and watch us prepare the food. From those experiences we got to know many political leaders and foreign dignitaries like Dr. Henry Kissinger and his wife who were regular guests. 

What did you do after you graduated from the CIA?

After three years at Windows On The World, I decided I wanted to learn more about Dining Room Management, so when a new opportunity presented itself as a Maître D at a highly regarded restaurant in Theater District, I decided to make a career move. It was an old school restaurant with excellent table service and lots of tableside cooking.  I was given the challenge to learn the business from another perspective and hone my dining room hospitality skills and improve the guest experience through elevated table service.

In the late ’70s, I decided to move back to Aspen Colorado and try and open a food service business with my close friend from the CIA. After carefully surveying the market we determined that the two big voids in the marketplace were catering and a need for a great bakery to service the local restaurants.  Given the lack of real competition and affluence in the market, we believed we could be successful if we could raise enough capital to launch the business. We found a great location and obtained a small loan, which allowed us to purchase used restaurant equipment at an auction. We leveraged our education and work experiences and began catering private events and baking European style breads and desserts.  As young entrepreneurs we made everything from classic charcuterie, croissants and wedding cakes to ice carvings and sold them to restaurants and hotels. The catering portion of the business began to get a lot of traction and we picked up many private parties from wealthy business people and celebrities like the Bee Gees, Diana Ross, Lucille Ball, the Kennedy’s and several international political figures who had private aircraft and always wanted the best, so catering was always an over the top event. 

In the late ‘80s, I was recruited by El Torito Restaurants, the largest Mexican dinner house chain in the world, to run all food service for a 220-unit organization with twelve restaurant brands and $420M in sales annually. Working for a national brand that was in a huge growth and acquisition mode and working with fantastic restaurant operators was a unique opportunity. My responsibilities were broad and included menu innovation for domestic and international restaurants, quality assurance, kitchen operations, training, and supply chain.  This exposure to food, beverage and how to run highly efficient operations gave me the confidence and skillsets that I believed would be extremely useful as a consultant to small to mid-sized companies. 

How did you make that transition to restaurant consultant work?

I realized that I had obtained a lot of knowledge working for El Torito, and I had a great gift of helping restaurant managers be successful. As an entrepreneur I wanted to do more with my education and experiences so given the contacts that I had made in the restaurant industry I decided this timing was right to make a career move. I wanted to create a small restaurant consulting company that would focus on helping restaurant operators optimize their financial performance through menu innovation and restaurant operating efficiencies.

In 1988 I launched Synergy Restaurant Consultants. I was very fortunate (and lucky) to land several large accounts that occupied all my time. I knew it was time to expand, so I reached out to my close friend Danny Bendas and former business colleague who also happens to be a CIA graduate and industry professional, to join me on this new journey. Since then we had the pleasure of working with over 270 domestic and international chains and over 1,600 independent operators. Over the years our team has grown with talent from around the US and globally. I am so thankful for my business partner and the incredible team we have built. Their contributions have genuinely made Synergy a leader in the industry and a better company.

What is your biggest accomplishment as a restaurant business consultant?

I wouldn’t say building a highly regarded national brand with an impeccable reputation and being recognized as industry leaders and subject matter experts in all areas of the restaurant business. Instead, I would like to believe that Danny and I, along with the rest of our team, make a positive difference in people’s lives. That is what brings me the most happiness and fulfillment.

FAQs

Thanks to our founder Dean for that illuminating discussion on his experience through the restaurant and hospitality industry to become a renowned consultant. We hope this inspires your journey and gives you a better understanding of what it takes to become a restaurant consultant. In case you have a few additional questions about becoming a restaurant consultant, we have added a few more sections designated to help answer the most common FAQs about this fascinating career path.

What skills do restaurant consultants need?

The number of different skills a restaurant consultant will need to be successful is vast. First, you will need to know the restaurant and hospitality industry inside and out. Consultants typically have a work background of several restaurant jobs and years of management experience in restaurants or adjacent industries. Thus, a restaurant consultant would be expected to have work experience in at least one of the following areas: food and menu innovation, operations optimization, sales optimization, team development, concept development, brand design, and marketing. 

Outside of restaurant industry-specific skills, you will also need experience and expertise in communication, creative thinking, problem solving, fees, time management, emotional intelligence, and project delivery. As the consulting and restaurants worlds are constantly in flux, you will also need adaptability, credibility, and curiosity to maintain a successful career as a restaurant consultant. 

What does a restaurant consultant salary look like?

According to ZipRecruiter, the national industry average for the yearly salary of a restaurant consultant is $75,008. According to Glassdoor, the average yearly salary for a consultant in the restaurant industry is $78,403. Years of experience also factors heavily into these numbers, For instance, the average salary for consultants with over 3 years of restaurant industry experience jumps to over $90,000. 

It’s important to note that these numbers only represent averages. If you go into the restaurant industry and end up owning your consulting business, the amount of money you make per year can be significantly higher.

Are there restaurant consultant trends I need to be aware of?

As a restaurant consultant, you will need to be up-to-date on issues not just affecting the restaurant and hospitality industries at large, but what’s happening in the various local markets you want to work in. You can only get that local knowledge through hands-on experience with clients. In terms of national and worldwide trends of 2022, you will want to be knowledgeable about:

• Inflation
• Supply Chain Issues
• Labor Shortages
• Unionization
• Restaurant Laws & Regulations

Many restaurants are dealing with substituting different items or changing menu options entirely because they simply cannot get all the food items and various ingredients they need to make their signature and regular dishes for their customers. The hope is that this does not deter customers looking to order out and take a break from cooking this holiday season.

Grocers are also being hit hard

Shipping and delivery issues are not just hitting restaurants, but all regular retailers and grocers, too. Shelves aren’t filing back up as they once were before the Covid-19 pandemic. According to JPG Resources LLC, with food shortages also comes big swings in prices on main ingredients utilized by a variety of foodservice and processing companies.

Limited options on the menu means changes in the dishes offered

A CNN article out of New York discusses restaurants having to deal with the fact that some food options are simply off the table. Restaurants that usually offer finer options are limited, and those cafes and restaurants that always need fresh vegetables have a hard time getting what they need.

Nothing is going to be easy this year. Most restaurants are probably going to offer different food options or be more inventive with their dishes.  Many places are already seeing menu changes emerge because of the need to use alternative food options in many different areas of cuisine.

While the food shortage due to supply chain issues has been hard on all restaurants, it certainly has had a big impact on vegetarian operations since they tend to rely on fresh produce. Since 2020, many food industry heads knew things were going to change a bit, and some people even began stocking up on items they could, though that’s not possible for fresh foods, of course.

In addition to shortages in fresh produce, disruptions to the meat and poultry supply chains emerged shortly after the onset of Covid and continue to threaten the capacity of restaurant and food service companies to fulfill consumer demand this year. What’s the cause of these supply chain shortages? Depends who you ask. According to President Biden, multinational meatpacking and processing companies have taken advantage of supply chain issues resulting from the downturn in the post Covid-19 economy to hike up prices. To remedy this supply chain issue, the White House administration rolled out a new aid package supplying $375 million in grants to independent meat processing companies and $275 million in loans at favorable rates to smaller businesses. While it is generally agreed that market concentration among processing companies is the main problem, some contend that the federal administration caused disruptions that led to this situation in the first place. According to John Stossel, testing by the U.S. Department of Agriculture (USDA) is so expensive and cumbersome that smaller processing businesses simply can’t afford it – leaving only a few massive companies that can. Also, the administration’s current remedy to these disruptions (subsidies and regulations) in the meat economy will further increase market concentration and decrease the overall capacity of the industry. According to United States Congress Rep. Thomas Massie (R-Ky.), the domestic supply chains for meat and poultry will recover if the federal administration’s intervention is scaled back and the regulatory power over processing business is given to the state. Thus to address the kink in this supply chain, Rep. Massie introduced the PRIME Act, which would let farmers sell meat processed by state-approved processing businesses. This legislation would ultimately be aimed at eliminating shortages in the domestic meat supply chain and lowering prices for food service companies, restaurants, and consumers.

How can Restaurants Restaurants Respond to Uncertain Supply Chains?

Restaurant operators need to take a very hard look at their menu and all the labor that makes the food and simplify where they can. Synergy can help them systematize, standardize and optimize their menu so that they can have good margins and keep their food cost and menu prices in check. The key to dealing with this new food cost challenge is to develop a strategy around:

• Menu Innovation
• Menu Engineering
• Menu Optimization

Synergy Restaurant Consultants are subject matter experts in this area. It would be wise for operators to deal with this sooner rather than later this year because they will be caught flat-footed during the holidays!

By Alan Palmieri – Leadership | Operations Consultant

Albert Einstein is quoted as having said, “One picture is worth a thousand words.” We all take in information in various ways – pictures, words, experiences, etc. We include a picture of what operational excellence would look like – if it were a picture along with a narrative to explain it.

The “pyramid” above is an image of the Sync Operational Excellence Framework. This framework is how we operational-ize all the key activities and actions to achieve excellence – for our brand, team, and customer. It is the specific way that we get it done. We build from bottom to top, achieve results, identify gaps, then address those gaps with an action plan for continuous operational improvement. Instituting a time-tested operational excellence program is the best method of achieving operational excellence.

The Foundation of Operational Excellence

In the restaurant business, success begins with a concept, a “brand,” that is uniquely differentiated, offers a compelling consumer proposition, and delivers value for the time and money spent. All that, when consistently executed over time, brings guests back again and again. They refer their friends. Your restaurant becomes “their restaurant.” It’s not just your amazing food, but the quality of their experience that makes them regulars. When you get it right, you transform them from a customer into a friend – better yet, one of the family. You’ve made them feel special.

Once we know we have a worthwhile brand, the idea is brought to life with execution at a high and consistent level. The Operational Excellence Framework is a building block way of thinking about the performance required to be wildly successful. It begins with a foundation of the “right people” that fit the brand with a positive, healthy culture brought together with mutual respect and trust—all led by an aligned management team that speaks with one voice.

Operations: Fully Staffed, Fully Trained, Fully Engaged

Once we have the right people, it is all about the right people in the right place at the right time, fully prepared to execute according to the brand’s operational standards. Being “fully staffed, fully trained, and fully engaged” (FS/FT/FE) is the only way that management and team members can consistently execute at a high operational level, meeting and exceeding customer expectations that brings them back for more. Operational excellence can only be achieved when restaurant teams are fully staffed and trained. In this environment, the teams become fully engaged in their responsibilities and genuinely provides their best discretionary effort to do the right thing for their guests, fellow team members, and the business.

S.M.P.’s: The Backbone of Operations

Next, we move to systems, methods, and procedures. To be successful in the restaurant business requires a great deal of planning, preparation, and consistent, high-quality execution. Thorough training and strict adherence to all operating processes are essential in delivering a quality experience to the guest and effective cost management of the business. Opening and closing checklists, line checks, proper protocol to store food, order recipes, and management routines are quick examples of critical processes necessary for success. Not only do these S.M.P.’s maintain compliance, food safety standards, and consistency of customer experience across restaurants and locations, but they also enable frequent operational audits and provide immediate solutions to a variety of problems facing your daily operations. You can think of each one as a mini operational excellence assessment. Most of what you need for day-to-day operations is covered in the Management Coursework found in the toolbox of our online course.

S.M.A.R.T. Action Plans: Time to Shine

Even the most successful operations have performance opportunities, and they need to be addressed swiftly and effectively. It is not about working harder; it is about this:

“Have a plan and work the plan.” This motto has served as a successful “guiding light mantra” necessary to be successful. Suppose you are working “without a plan” – who knows where you will go and where you will end up – usually not in a good place. Working hard alone doesn’t usually get the right things done.

That is where S.M.A.R.T. action plans come into play in the next level of the structure. Specific, Measurable, Achievable, Realistic, Time-bound = S.M.A.R.T. It is a process of identifying the top priority performance gaps and building an action plan to solve them. Effectively doing this with each priority gap strengthens the team and improves results – making the customer experience the best it can possibly be.

The Peak and The Support: Achieving Operational Excellence

All these critical operational layers come together and peak with success for all stakeholders involved. The lines covering the exterior of the structure refer to support.

Recognition at the bottom of the operational framework is there as a reminder that it is critically important to recognize, praise, and appreciate those that contribute to the restaurant’s success. This recognition includes letting them know that what they do matters and makes a difference. Both formal, as well as spontaneous informal recognition, are equally important. You can’t give enough good feedback, so have fun doing so! Catch people doing something right and reward them. Positive reinforcement is the best motivational tool; An added bonus of it is that operational compliance will tend to take care of itself as your people will make sure they get it right the first time.

Promises refer to the restaurant’s commitments to all its stakeholders; guests, team members, vendor partners, community, and investors. Living and performing true to these promises earn credibility and loyalty in all.

Accountability is key to creating a high-performance team and the consistent delivery of operational excellence. But remember, you can’t hold people accountable for skills, processes, or procedures that you haven’t taken the time to teach them properly or given them the tools to execute.

As you take in the operational excellence framework in totality, think of the recognition, promise-keeping, and accountability as the “glue” that holds it all together.

The “cloud” represents the established brand’s culture, values, and beliefs along with the fundamental financial and operational basics. The operational excellence framework is anchored in the brand’s promises to all its stakeholders. As the brand has established the “what” and “why” for its existence, the framework is the “how to.”

In closing, our intent to share this operational model for success is our deep commitment for you to enjoy the benefits of consistently executing your brand at a high level. Sustaining peak operational efficiency across restaurants is a mighty task. We would be humbled for the opportunity to help you achieve wild success in your journey. Let us help your restaurants improve operational excellence and deliver the best possible customer experience (and food, too!). Please feel free to reach out to us any time at SynergyConsultants.com.

In April 2021, Los Angeles City Council approved a law that went into effect last November to ban the use of plastic at all restaurants and bars unless requested by the customer. This ban aims to reduce pollution and single-use plastic products waste as restaurants switch to environmentally-friendly reusables.

The ordinance bans:

• Expanded polystyrene products like styrofoam cups, plates, and coolers
• Single-use plastic items like straws, containers, plates, bowls, cutlery, trays, and utensils
• Disposable food ware like napkins

What does this mean? Any dine-in facility will no longer use disposable plasticware for dine-in or take-out customers, except when requested. Any restaurants or bars that violate this ban can receive $100 per day violation fines, up to $1,000 yearly.

Why Plastic Ban Ordinances?

Banning plastic waste is a necessary step toward reducing plastic waste. For example, 23% of landfill waste in the United States is comprised of plastic containers and food ware. Plastic waste also gets into our oceans, coastlines, and roadways, especially since the pandemic when the amount of take-out containers grew by almost 300%.

Plus, it’s proven that plastic bans work! Studies suggest that there is a 70% reduction in plastic bag usage in California, which led to a further reduction in straws, utensils, take-out containers, and bottles. Since the United States produces the most plastic globally, we should take steps to stop using single-use plastic.

While the ordinance only applies to certain areas of LA, it’s still an important step toward inspiring the rest of the nation to incorporate essential change. Turning the tide against the sea of plastic waste is increasingly necessary for humanity and the world itself. Best of all, Los Angeles is among other cities and states that have taken steps to ban plastic bags, plastic straws, and expanded polystyrene products!

Bans of Single-Use Plastic Items in the U.S.

Los Angeles isn’t the only city that passed a Single-Use Plastic Ban; the City of Sausalito passed a ban on June 11, 2019.  This ban prohibits single-use plastic ware like straws, containers, bags, utensils, and more at restaurants and encourages the use of non-plastic alternatives.

Some cities and counties have taken on a plastic straw ban in states with no legislation, like Miami Beach, South Carolina, Charleston, and numerous cities in California, D.C., and Florida. On top of that, more than 100 municipalities and cities have banned Expanded Polystyrene besides Los Angeles, including New York City, Seattle, Miami Beach, and San Diego.

The Plastic Bag Ban: the Drive toward Bag Waste Reduction

Currently, there is no federal legislation addressing plastic waste; it is up to states and cities to take the initiative. Eight states have banned single-use plastic bags including California, Delaware, Connecticut, Maine, Hawaii, Oregon, New York, and Vermont. Many believe that a plastic bag ban law is necessary in the face of the dangers posed to the environment by the ongoing waste of plastic bags.

In 2015, nearly 730,000 tons of plastic bags, sacks and wraps were manufactured in the United States, but more than 87% of those items are never recycled and end up as waste within our environment. It also takes 1000 years for a plastic bag to break down; even worse, plastic bags don’t completely break down over that time. They photo-degrade, becoming micro-plastics and absorbing toxins – further polluting the environment. Additionally, plastic leachates from bags hinder the growth of a vital microorganism, Prochlorococcus, a marine bacterium that provides 1/10 of the world’s oxygen.

These worrying statistics lead many to believe that the time for a widespread ban against all plastics is now – or the waste in and damage to the environment will be irrevocable. Thus, some organizations have taken the charge to get a comprehensive plastic ban to Washington D.C. In the Presidential Plastics Action Plan, over 600 organizations and thousands of petitioners request that President Biden pass a new federal law that will ban the use of single use plastics. The plan has 8 main action items – one being the suspension and denial of any permit or license for new and expanded plastic production facilities. According to these petitioners, bag waste reduction is not just a lofty goal, but a biological imperative.

As climate change becomes increasingly hard to ignore and the pandemic made many of us aware of the fragility of the world around us, it seems clear that environmentally-friendly green alternatives are a necessary approach. Plastic pollution must be addressed and replaced with compostable products. Plastic bans will likely spread throughout the United States, so restaurants should consider non-plastic food ware alternatives to stay prepared.

Alternatives to Banned Plastic

So if all plastic items end up banned, what are the alternatives to plastic that restaurants can embrace? Instead of delivering food in single-use plastic carryout bags, implement a program that distributes and promotes paper carryout bags or reusable plastic bags. Instead of plastic straws, try stainless steel straws, bamboo straws, paper straws, or even pasta straws. Instead of plastic utensils, your restaurant can use bamboo utensils or chopsticks. When using paper alternatives to plastics, try to source products from mostly or entirely recycled or compostable paper. Not only will your embrace of eco-friendly alternatives save the environment from the harmful effects of plastic waste, but it will also show your customers that you truly care about this beautiful, blue globe we all live on.

Thanks to inflation and high gas prices, the nation’s economic recovery from the COVID-19 pandemic has hit a snag in recent months. Research shows that approximately 68% of small and medium-sized businesses have struggled to bounce back due to current gas prices — including many restaurants across the country.

To What do we Credit the Surging Price of Oil and Gas?

First, the good news: American gas price averages have fallen from their highest of $5 a gallon to $4.16 – according to the AAA gas prices report. Although the state gas price of California and Hawaii remains well north of $5 a gallon. While the dip in US national gasoline prices is welcome, the current price of gas is still very high relative to the price two years ago. So, to what or whom can we credit this high price of gas?

While some simply blame President Biden for the state of the economy (along with too high gas prices), a more nuanced and even view is demanded upon further analysis. The price of gasoline is a good indicator of the health of the crude oil and petroleum economy. One reason gas prices are so high is rising crude oil prices. The price of crude oil has been increasing since October 2021, up roughly $50 a barrel from one year ago. This has been exasperated by Russia’s war in Ukraine, which led to US and European sanctions. Part of these encompassed Russia’s crude oil, which comprised percent of the global oil market. At the same time, demand for oil has outpaced the production of oil as we have emerged from the pandemic. A major component of this is the growing costs of refining oil. The number of oil refineries that have closed down in the past few years has outpaced the construction of new oil refineries. Thus the two primary drivers of elevated prices of gasoline are the higher costs of oil and the refining of that oil.

How does what we pay at the pump for gasoline affect your restaurant’s bottom line? Let’s look at the link between gas prices and restaurants and what you can do to protect your business.

Higher Gas Prices = Fewer Diners

When gas prices go up, many households have less discretionary income. A study from AAA reports that rising gas prices force most Americans to change their driving habits — namely, that they limit the amount of unnecessary driving they do in order to limit gas consumption.

While driving to work, the grocery store, or visiting family and friends are usually considered essential, nights out at their favorite restaurants are not. This results in fewer patrons in your dining room and tighter margins each month.

Of course, it is important to note that the type of restaurant you operate will affect how hard hit you are by higher gas prices. Quick-service and fast-casual dining will likely see the most significant decrease in patronage due to increased gas prices, while fine dining restaurants are expected to be largely unaffected by gas prices.

Higher Price of Gas = Higher Cost of Business

As gas prices rise and the number of diners at your restaurant shrinks, you may face another challenge: higher food and delivery costs. Higher gas prices can result in higher wholesale costs for your ingredients due to the high prices of delivering them to your kitchen.

Similarly, restaurants that offer delivery service may have to reimburse their drivers more due to the higher cost of fuel incurred. We already see this happening at delivery companies like Uber Eats and DoorDash, who are offering drivers up to 10% cash back on gas.

What You Can Do in Response to Rising Gas Prices

It can be challenging to offset the effects of rising gas prices on your restaurant. Gasoline and oil power the majority of our economy. You have a few options to offset the cost: you can raise menu prices, reduce portion sizes, or even reduce delivery costs by switching to local suppliers. You can even incorporate alternative fuel and energy sources into your restaurant: solar panels, ethanol fuel, or electric vehicles. Decreasing your demand for gas, oil, and petroleum and embracing alternative energy and fuel sources can set your restaurant up for future resilience and success.

However, the best way to prevent the price of gas and oil from affecting your restaurant is to invest in the customer experience. Well-trained staff and a positive dining experience will help you keep patrons visiting your business regularly – regardless of gas prices.

Synergy Restaurant Consultants has created an innovative restaurant training app that works seamlessly across multiple locations. Synergy U is an intuitive training application. It’s a powerful, flexible, and affordable digital training and operations platform for restaurants looking to upgrade performance. Reach out to us to learn more. Follow us on social media for the latest restaurant tips!

Few people have missed the increase in prices. Everything from gas to entertainment and even food prices are on the rise. Perhaps the most painful increase is the steady rise in food prices. While all types of food are more expensive now, many people are concerned with increasing meat prices.

The spike in meat prices is hurting everyone. Not only are families trying to find ways to cut the weekly grocery bill, but restaurant owners are finding it challenging to provide meat dishes – specifically beef – at affordable prices.

What’s causing the increase in beef prices?

What’s most concerning is the rate at which farmers sell their cattle herds. According to Outsider, farmers across America are selling their cattle at an alarming pace. A lot of the sold cattle is meat stock, but there has been an increase in the number of breeding cattle going to market.

The more breeding stock farmers sell, the fewer calves will be born. And fewer calves mean less meat available to buy. It’s a dangerous cycle but farmers are forced into with the climbing prices and continued drought conditions.

Who’s feeling the effects?

The stress on farmers isn’t the only group feeling the pressure. Restaurant owners are also struggling with the increase in beef prices. These owners must reconsider a lot of their restaurant’s offerings in an effort to combat these prices.

Some people may assume the answer is to limit the beef options in restaurants. Pork and chicken are crowd-pleasing protein options. The truth is these prices are starting to climb as well. Soon the switch to pork or chicken won’t necessarily help owners save much.

Other owners have opted for changing prices or steak size. With rising beef costs, owners may choose to increase their prices meaning the consumer will bear more of the increased costs. Some owners try to be more creative by keeping their prices the same but decreasing the size of the steak – so less steak at a higher price.

The solution for the price increase depends on the size of the restaurant operation. Bigger chain restaurants can help offset the beef increase by buying bulk, but that’s not an option for smaller businesses.

This beef debacle may hit smaller restaurants the hardest. These owners don’t have the capacity, capital, or demand to buy in bulk or up their prices. For many, the only option is to omit beef options altogether.

This choice can help small restaurants’ bottom line, but it’s risky. Some restaurants make their name on beef – like barbeque restaurants. But even these restaurants are left to get creative in these challenging times.

The truth is, beef prices are up – like many necessity items – and aren’t going down anytime soon. The effects of the COVID-19 pandemic are still being felt. At the height of the pandemic, processing plants were faced with a significant labor shortage or forced to close altogether. These plants are still playing catch up, and it’s caused a cascading effect felt by everyone from farm to table.

Beef prices aside, consumers still want quality food at an affordable price. That means restaurant owners are left to get creative or change how they do business altogether. What are some ways of getting creative? This is where braising, smoking or using flat iron steaks, tri tip and other less used cuts of beef come in.

The past two years have been a time of almost constant change. Restaurant owners have learned to adapt, and the current beef crisis is no different.

Since their inception, unions have been somewhat controversial, and laws surrounding them vary from state to state. In certain industries, unionization has become commonplace–in educational and protective service occupations, roughly a third of workers are unionized.

Unions have not been as common in restaurants, but they’ve been around since 1891, when the Hotel and Restaurant Employees International Alliance was founded (now called Unite Here.) This historic union’s total number of food service employees is still relatively small, with around 100,000 current members. However, recent developments have paved the way for more unions in the restaurant industry. Here’s what employers need to know about restaurant unionization in 2022.

Union Approval and Membership in Restaurants

As of 2021, a Gallup Poll identified that 68 percent of Americans approve of labor unions, which is the highest the approval rating has been since 1965. However, according to The US Bureau of Labor Statistics (BLS), union membership remains relatively low as of 2021 at 10.3 percent. Union membership is even lower in the food service industry–only 1.2 percent. That said, certain high-profile cases of unionization in the food service industry may be changing future expectations for workers and businesses alike.

What is the incentive for workers in the food service industry to form a union? According to the BLS, union membership in a restaurants is correlated with higher wages. In 2020, nonunion restaurant workers earned a median weekly income of ​$580, while those in a union earned more at ​$690​ per week. Additionally, labor unions typically seek health insurance, pensions, paid leave and other benefits commonly afforded other types of workers for their members.

Unionizing Workers in the Fast-Food Industry

This past December, the Burgerville chain out of Portland, Oregon, became the first fast-food workers’ union in the US. The franchise chain employs 800 people in Oregon and Washington. Their new labor contract called for financial changes such as 75 cents more an hour and allowing workers to receive tips. Beyond that, it provides paid vacation and parental leave, a three-month set schedule, and a lengthier justification process for firing an employee. This is the first fast-food chain in America to cover its employees with collective bargaining.

On July 22, workers at a local Chipotle Mexican Grill filed a petition for a union election with the National Labor Relations Board, becoming the first Chipotle in the U.S. to seek labor unionization. Since Chipotle owns its restaurants, workers there can join together across stores and state borders to build power and force the company to negotiate with the them,” Maine AFL-CIO spokesman Andy O’Brien said. In response to the union formation move of these Chipotle workers, Chipotle Chief Corporate Affairs Officer Laurie Schalow said, “we respect our employees’ rights under the National Labor Relations Act and are committed to ensuring a fair, just, and humane work environment that provides opportunities for all.” If other restaurants follow the lead of this potential union restaurant, it could be a significant development not just for Chipotle, but other national chains and restaurants in the fast-food industry. Although, workers at some restaurants – like McDonald’s – would have more trouble forming a union as parent corporations of franchised restaurants are less likely to be considered joint employers due to a 2017 National Labor Relations Board ruling.

Starbucks Unions Gaining Traction

Around the same time as Burgerville, certain Starbucks locations have seen some movement towards unionization. Two stores in the Buffalo area became unionized at the end of last year. (A third attempted but failed to do so.) In its hometown of Seattle, two more stores are in the process of trying to unionize.

In early December, while voting was still in progress for the Buffalo stores, Starbucks’ CEO Kevin Johnson came out with a message that said to employees “There is only one Starbucks,” pushing back against the inconsistencies that unionization could create for the brand. Despite this, over 30 Starbucks locations are trying to unionize at the moment.

Future Implications of Unions in the Restaurant Industry

At the moment, unionization is still pretty small. That said, other employees could look to employees at Starbucks or Burgerville as examples. While Burgerville has seen some substantial policy changes, the changes at Starbucks are still taking shape. Since unionizing, one Buffalo store has already exercised its right to strike, demanding more advanced COVID-19 protections.

If workers at more Starbucks locations and other national chains successfully unionize, restaurant owners may need to consider a future with unions in it. In the meantime, it might be helpful to know if you are in a right-to-work state, which gives less power to unions. If you aren’t, you may also want to familiarize yourself with the extent of collective bargaining laws.

The industry landscape may be changing, but if restaurant owners approach these changes with a level head and legal knowledge in mind, they should be prepared for whatever the future brings.

Look to Synergy for up-to-date news on restaurant labor laws, information, restaurant staffing, training, and technology.

COVID has changed a lot within the restaurant world. As of 2022, there are many new laws and regulations.

Recent Health Regulations

With the recent new variant and surge in COVID cases, the Occupational Safety and Health Administration (OSHA) issued a new standard to employers with 100 or more employees as of  November 5, 2021. First, vaccination is strongly encouraged to protect unvaccinated employees from the risk of COVID-19 infection. Next, employers must establish a COVID-19 vaccination policy for all employees. Each employer could approve a policy offering their staff to either get vaccinated or have regular COVID-19 tests and wear a face covering while at work. This new standard requires restaurants to implement these safety measures.

While OSHA’s new standard applies to all restaurants covered under their jurisdiction, other changes for 2022 have been mandated in individual states.

State Food and Health Laws

In Texas, the legislature approved a bill for on-premise restaurants with a wine and malt beverage retailer’s permit to be issued a food and beverage certificate by the commission if the receipts from alcoholic beverages at that location are 60 percent or less of total receipts. This does not apply to food concessions in sports stadiums or convention centers. It applies to a permittee that operates its own permanent food service facility with commercial cooking equipment on its premises. Economically, serving alcohol may be a wise choice to bolster sales in the face of these restaurant regulations.

A new law about food delivery apps has been amended in the Business and Professions Code in California. In the state, it is now unlawful for a food delivery platform such as DoorDash or Uber Eats to accept tips and gratuity intended for restaurant workers. Food delivery platforms must be transparent and disclose an accurate, clearly marked, and itemized cost breakdown of each transaction. This breakdown is to be provided to the customer and the food facility to regulate the growing app-based food-delivery industry and ensure the employees of restaurants receive the tips intended for them.

In New York, a 2022 vaccination mandate has been passed. Anyone who wants to work or attend any restaurant establishment in the state must now show acceptable proof of vaccination. This includes documented evidence of completed vaccination at least two weeks before the visit. Any person 12 years of age or older must produce either a CDC vaccine card, a photocopy or digital photo of their vaccination record, or an uploaded image of the vaccination record on an approved mobile application such as NYC COVID Safe App, Clear Health Pass, or Excelsior Pass. Children ages 5-11 must be vaccinated with at least one dose of a COVID vaccine to visit restaurants and other places of business.

In Chicago, restaurants are only able to provide customers plastic utensils, napkins, and similar items upon request. This 2022 local law does not apply to drive-thrus, airports, charity food giveaways, and self-service stations. The ordinance is one of several ongoing legal regulations aimed at reducing waste of single-use plastics in city restaurants.

According to Food Safety News, 45 bills related to food freedom were introduced – 9 of which were enacted into law. The majority of these bills loosen the regulations imposed on both producers and consumers. In South Carolina, SB 506 (Act No. 208) passed and amended the home-based food production law, allowing non-potentially hazardous food to be sold online or via mail-order directly to retail stores and consumers. In Maryland, the annual cap on revenue for cottage food product operations was raised to $50,000. In Tennessee, the state legislature enacted two laws, which shall allow vendors of homemade food to sell without licenses or permits. The purpose of these state regulations is to enhance the freedom of consumers to access homemade foods and foster small business growth. The Georgia state legislature enacted the Georgia Raw Dairy Act. The Indiana state legislature enacted a bill that allows the sale of poultry, eggs, and rabbit by any individual vendor or business that has the proper farmers’ market permit.

There are more restaurant laws and regulations to be aware of for 2022. Whether you are  business owner, employee, or guest, you should make themselves aware of these new changes in state law and local public health ordinances. Regulations in the food service industry are always changing. Your business can stay one step ahead of your public heath department by implementing top-notch food handler training and staying current with the latest in food service sanitation. Follow Synergy on social media and explore our online resources to discover the latest restaurant news developments and tips of the trade.