This week, Panera Bread Company announced a new food policy that aims to bring more transparency to its menu ingredients and make a positive impact on the food system.  Panera plans to remove all artificial additives and preservatives from its menu by the end of 2016, a goal aligned with the company’s commitment to serving clean food.  This is huge news for the fast casual industry and a definite step in the right direction.  Hats off to Panera!

 

For more information, check out this article from Nation’s Restaurant News.

 

 

 

 

Have you noticed an increase in the price of shrimp? You are not the only one. The recent 15% jump in the price of shrimp is affecting every segment of the restaurant industry from fast casual to fine dining. The price surge was caused by Early Mortality Syndrome, a disease that spread through several Asian shrimp farming facilities and caused a 30% drop in production in late 2013. Shrimp prices are expected to stay high and some restaurants are adjusting their menus accordingly. Even Olive Garden was affected given that shrimp is their most popular protein. On a more positive note, lobster prices are currently the lowest they have been in years.

On the radar:

– Pork prices are at risk of increasing due to an epidemic that is affecting more than 10% of the US pork population. Prices are expected to rise later in 2014.

– Beef supply is again forecast to be at record lows and prices will remain high throughout the first half of 2014.

 

 

California bartenders are now required to wear gloves when handling components that go directly into drinks, for example ice cubes or lemon twists. These new regulations are a hot topic in the restaurant industry, with many chefs and professionals against the legislation.  A top complaint is that using gloves is not an environmentally friendly practice and it also slows down the workers speed.  More importantly, gloves do not always promote better hygiene practices, with some workers using gloves as a ‘safety net’ and washing their hands less or causing cross contamination that would be more apparent with bare hands.  Check out the links below for more information and viewpoints on the topic:

 

Eater – CA Bartenders Also Have to Wear Gloves Now http://eater.com/archives/2014/01/15/ca-bartenders-also-have-to-wear-gloves-now.php

LA Times – Under New Food Safety Law, Bartenders Have to Wear Gloves  http://www.latimes.com/food/dailydish/la-dd-under-new-food-safety-law-bartenders-have-to-wear-gloves-20140114,0,7520647.story#axzz2qOvvmlxd

Michael Ruhlman – The Cleanest Hands   http://ruhlman.com/2014/01/the-cleanest-hands/

 

 

By Joshua Korn

Appetizers:

Implementation of the 2010 Affordable Care Act passionately known as “Obamacare” could be one of the greatest challenges restaurant operators will ever face. The ACA will put significant cost and administrative pressures on employers as they prepare for massive changes in the health insurance system, including complex new reporting rules and penalties for so-called “large employers” who fail to offer full-time employees and their dependents the opportunity to enroll in affordable, minimum-value health plans starting in 2015. Restaurants are likely to feel the law’s impact more than many other businesses because they are labor-intensive, with low profit margins and millions of employees working flexible schedules.

 

Entrees:

2014 brings a new era in restaurant profitability, sustainability and controversy since Bills have been introduced in the House and Senate to dramatically increase the federal minimum wage. The Fair Minimum Wage Act of 2013 (S. 460, by Sen. Tom Harkin, and H.R. 1010, by Rep. George Miller) would increase the federal minimum wage from the current $7.25 to $10.10 over two years and three months—a nearly 40 percent increase—and automatically index the wage to inflation each year thereafter, regardless of economic conditions. The legislation also calls for increasing the minimum cash wage for tipped employees until it reaches 70 percent of the federal minimum wage. This means the minimum cash wage for tipped employees would triple, in stages, to $7.07 according to the national restaurant association.

 

Desserts:

Restaurants and food manufacturers who market food or beverage items as “gluten free,” must meet all requirements of a new, regulatory definition of that term, the U.S. Food and Drug Administration said in a final rule issued August 3, 2013. According to the FDA’s final rule, which was published in the Federal Register Aug. 5 2013, restaurants serving food or beverages  termed “gluten-free,” “free of gluten,” “without gluten” or “no gluten,” are making a food-labeling claim that should be consistent with the new regulatory definition for gluten-free.

 

The new federal definition, effective September 4, 2013 with a compliance date of August 5, 2014, would standardize the meaning of “gluten-free” claims across the food industry, the FDA said. In order to use the term “gluten-free” on labels, the food items must meet all of the requirements of the definition, including that they must contain less than 20 parts per million of gluten.

 

The FDA has broad discretion over food labels and since 1993 has held restaurants to certain standards if they make nutrient-content or health claims about menu items, such as “fat free” or “low cholesterol.” The agency has now added “gluten-free” to the list of FDA-regulated claims. In guidance accompanying the new “gluten-free” definition suggested that “any use of an FDA-defined food labeling claim … on restaurant menus should be consistent with the respective definitions.”

 

Silver Linings Playbook:

Okay now breathe, it’s not all doom and gloom. Turn adversity into advantage. You are in a unique position with an opportunity to re-evaluate your business plan and fire up your teams! Develop new innovations that are more efficient and drive more value. Create long lasting brand recognition and brand awareness by providing new products and services to your current clientele and gain sales with new clientele ultimately increasing your revenue and maximizing your profitability! The bottom line is that change happens and you need to evolve and adapt to these conditions which are primarily out of your control. So here’s where innovation and entrepreneurship are essential.

You may be thinking “sure easier said than done.” Well here’s some thought inspiring questions to get you motivated. Whether you are a seasoned veteran or first starting your business think about what reasons led you to opening your business in the first place. Were you nimble and flexible? Were you able to adapt and move when the proverbial cheese moved? What’s to stop you now?

 

All the answers to these new challenges start and end with your menu. So get back to the drawing board and look at what your serving, how much your serving, how many laborers do you need to produce it, are they full time or part time? Can you leverage cost of goods? Can you join a buying group? When’s the last time you had a price increase? When’s the last time you looked at your asset base needed to create your menu. Are you depreciating or expensing those assets? Are you taking advantage of the new 15 year depreciation schedules? All these strategies can change your cash flow and add value.

 

I encourage you to seize your opportunity by taking control and capitalizing on your menu development in 2014. Implement a cost structure and product mix that will enable you to get ahead of some the challenges you are going to encounter in the New Year as Obamacare, Increasing Labor Rates and of course the Gluten Free phenomena take effect.

If you still have questions or need help navigating through these new challenges please feel free to reach out us make sure you are optimized for performance excellence!

 

 

 

Near the end of each year, hospitality industry experts such as the National Restaurant Association, like to predict what food trends the new year will ring in. The NRA’s 2014 Culinary Forecast has the low-down on what diners will likely be noticing on their plates in the year ahead.

 

For 2013, the NRA surveyed chefs to find what they thought would be a hot food trend– the top three of the list were locally sourced meats and seafood, locally grown produce and healthy kids’ meals. How do the 2014 predictions stack up to last year’s?

 

Local is still going to be big, and tops off the first two items of the NRA’s Top 20 Trends.

 

1. Locally sourced meats and seafood

2. Locally grown produce

3.  Healthful kids’ meals

5. Gluten-free cuisine

6. Hyper-local sourcing

7. Children’s nutrition

8. Non-wheat noodles/pasta

9. Sustainable food

10. Farm/estate branded items

 

Read the official report for the entire list of trends and results.

 

 

 

 

 

A recent research study has found that restaurant-goers have a new definition of value.  While it’s easy to assume that value is synonymous with price, consumer behavior suggests that quality is most important.

The NPD Group conducted a study to examine consumers’ perceptions of value when they go out to eat.  According to “Defining Value Today,” quality of food is the most important value driver when choosing a restaurant.

While it may seem simple at face value, there are many attributes that factor into the value equation. Consumers consider aspects such as service, portion size, taste, quality, and atmosphere.  While price is still a consideration, only a small percentage of people feel that price alone drives their decision-making and, instead, the correct combination of value elements is more important.

It’s not enough for restaurants to simply offer quality food; they must also communicate their story to consumers who are interested in the quality and sourcing of ingredients.  To provide the information consumers seek, many restaurants tell their story by featuring their suppliers, adding sourcing information to the menu, or sharing the farming methods used to grow ingredients.  Chipotle’s story is based on serving “Food with Integrity,” which they describe as “the very best sustainably raised food possible with an eye to great taste, great nutrition, and great value.” To support this mission, their website offers a wealth of information on the animals, people, and environment that are involved in the Chipotle supply chain.  In another example, Tender Greens, a fast-casual restaurant based in California, provides consumers with the exact farms and purveyors they use to source their ingredients, which in turn helps to communicate their philosophy of “slow food done fast.”

Whether it’s time to update your menu with quality ingredients or you simply need to better communicate your message, use this consumer research to your advantage and give consumers what they are craving.

In June of 2012 the IRS clarified the difference between a tip and a service charge. Under the Federal Insurance Contributions Act (why insurance, I don’t know) the IRS determined that “automatic gratuities are service charges . . . .” They also decided that automatic gratuities (i.e., service charges) are taxable because they are not voluntary.

 

To address this issue many operators are simply stopping the “automatic gratuity” for large parties as these would come under the classification that the IRS has stated. We agree with that move and recommend you consider that move yourself. If there are no circumstances wherein the customer is “required” to provide a gratuity over and above the amount of the meal, you will always be safe from issues during an audit.

 

Beef prices have hit an all-time high with choice-grade beef priced at more than $2.11 per pound.

Many factors have contributed to the rise of beef prices over the last several years; the rising costs of both cattle feed and fuel in 2008 caused many farmers to cut the size of their herds, and in the following two years, the economic recession lowered demand while food prices remained flat.  As the nation’s economy began to recover in 2011, major droughts raised the price of corn and soybeans, and farmers were forced to scale back the size of their herds.  Today, American farmers have the smallest collective cattle herd since 1952 and prices are continuing to rise despite the recovering demand for choice-grade beef.

The complete cycle from cow pregnancy to calf birth to slaughter takes nearly three years, so a quick recovery of beef supply is largely unfeasible. Unfortunately for restaurateurs and consumers, this means that high beef prices are here to stay.  In order to combat these costs, Synergy Restaurant Consultants offers a few tips:

Culinary Innovation – Design new dishes that utilize less expensive cuts of beef.

Strategic Marketing – Promote non-beef options like pork and chicken that offer customers a better value.

Supplier Relationships – Keeping close relationships with suppliers will help you lock in the best possible prices.

Vegetarian Options – ‘Better for You’ and meatless options are hot right now: leverage this trend to steer customers towards veggie items and away from beef.

Lean Operations – Since your restaurant will be faced with higher beef costs, it is essential to cut back in other areas.  A lean operation and savings in areas like waste and packaging can contribute significantly to your overall bottom line and profitability.

 

Synergy Restaurant Consultants has significant experience in culinary development and menu innovation. We can help develop non-beef menu options with big flavor and visual appeal, yet balanced food costs and profit contributions. Our menu development work at LYFE Kitchen exemplifies the true meaning of thinking innovatively in order to provide a wide array of protein and options to meet customer expectations of quality, taste, and nutrition. Additionally, our Operations Assessment evaluates current operations and provides recommendations on how to improve efficiency and maximize profitability. To find out more ways to battle high beef prices, please contact Synergy Restaurant Consultants.

After decades of being overshadowed by coffee, tea has finally begun to emerge to own the spotlight. Tea expert David DeCandia from Coffee Bean & Tea Leaf says the tea industry is “going straight up” and will “at some point…reach the level of coffee”. Domestic sales of tea at restaurants, grocery stores, and shops have increased by 32% in the last 5 years and is still expected to grow to over $18B in the next two years. Compared to coffee, tea has actually been growing faster year over year in the last decade.

 

Asian consumers have traditionally been the biggest consumer base for tea. While this still holds true, many other demographics of consumers have become more and more interested in the product as well. With the help of celebrity endorsements from Gordon Ramsay to Wolfgang Puck and buy-in from consumer packaged goods companies such as PepsiCo and Coca Cola, tea has transformed from a traditional drink to a sexy, interesting beverage for the new age.

 

If there’s one mover and shaker in the beverage industry that can “make or break” this transformation, it would be Howard Schultz of Starbucks. And he sees tea as a “big, big opportunity.” In fact, Starbucks opened its first Tazo tea shop last year and acquired tea retailer Teavana as well. Riding on the backs of the healthy food trend, tea has also gained a following from those looking to improve their diets by switching to tea for its health benefits. From teens to yuppies, tea is slowing becoming the drink of choice.

 

Interested in exploring new beverage offerings for your restaurant, including tea? Contact Synergy Restaurant Consultants today for ideas to make your beverage list more enticing for consumers and more profitable for your business!

 

Did you know that next to Valentine’s Day, Mother’s Day is one of the busiest days for restaurants? The National Restaurant Association (NRN) estimates that 80 million adults will treat out their loved one at a restaurant this upcoming holiday. In fact, NRN projects that Mother’s Day 2013 will produce stronger restaurant sales versus last year.

 

Across the nation, restaurants are aggressively attracting consumers by offering Mother’s Day brunch and dinners specials. In such a competitive environment, how does a restaurant stand out among an ocean of others?

 

OpenTable, the popular online reservations system company, recently produced a guide that reveals top 25 Mom-friendly dining cities in the U.S.

 

Rounding out the top 10 cities are:

Long Beach, California

Tampa, Florida

Boulder, Colorado

Dallas, Texas

Austin, Texas

Columbus, Ohio

Raleigh, North Carolina

Houston, Texas

Charlotte, North Carolina

Las Vegas, Nevada

So what exactly are the criteria that makes these locations so great for a Mother’s Day celebration?

 

OpenTable explains:

The results are spread across 16 states and point to the places where it’s terrific to be both a mom and a foodie. In order to provide this ranking, the OpenTable Mom-friendly Dining Index was calculated using four variables based on OpenTable reservation and diner reviews data from 2012: the percentage of people who dined out for Mother’s Day; the percentage of restaurants rated “kid-friendly;” the percentage of restaurants rated “romantic;” and the percentage of restaurants rated “hot spots.”

To view the rest of the top ranked cities, read the entire OpenTable release here.