I NSP I RAT ION FOR TRANSFORMI NG THE BUS I NESS OF FOOD
6 Food Trend Predictions for 2019
CURB YOUR RESTAURANT’S Craving for
A R O L E F O R E V E R Y O N E I N SUPPORTING OUR VETERANS
Energy AND SAVE
THE MAGAZ I NE OF THE AR I ZONA RESTAURANT ASSOC I AT ION
Winter 2018 During the holiday s ason comes a time for reflection on what is to come and how to gear up for a successful New Year. We also share the top trends for 2019 straight from the experts at the National Restaurant Association.
A ROLE FOR EVERYONE IN SUPPORTING OUR VETERANS
3 6 features
6 FOOD TREND PREDICTIONS FOR 2019
CURB YOUR RESTAURANT ’ S CRAVING FOR ENERGY AND SAVE
Explore this global hub of industry news and commentary on food, drink, design and more.
Get to know Arizona’s food scene through stories, interviews and conversations with industry insiders.
WHAT TO EXPECT IN 2019: MORE AI TECHNOLOGY, MARIJUANA AND ‘MOTHERLESS MEAT’
what 3 6
6 FOOD TREND PREDICTIONS FOR 2019
3 STRATEGIES TO DRIVE TRAFFIC IN 2019
LOOKING AHEAD: ARA’S 2019 EVENT CALENDAR
Learn from the best with this business know-how guide filled with ideas, tips and resources.
UPCOMING SERVSAFE CLASSES
USING TECHNOLOGY FOR PEACE OF MIND
A ROLE FOR EVERYONE IN SUPPORTING OUR VETERANS
RISKS IN 2019 AND BEYOND
RESTAURANT MARKETING TIPS FROM ON ADVERTISING
THIS IS THE PLACE I WAS TELLING YOU ABOUT: THE SINGLE BEST BITE IN PHOENIX
CURB YOUR RESTAURANT’S CRAVING FOR ENERGY AND SAVE
President & CEO Steve Chucri
Membership, Vice-President Jana Shelton
Chief Operating Officer Dan Bogert
ProStart & Education Foundation, Manager Paula Bugg
the estimated number of restaurants in Arizona this year total 9,709, employing 228,164 people with an annual payroll of $4.5 billion and, wait for it…. annual restaurant food sales of $12.7 billion! fff
economic slowdown is likely
industry had a very strong 2018. As of this
in 2019. While I am no
writing, the estimated number of restaurants
economist, I have been involved
in Arizona this year total 9,709, employing
in our industry long enough
228,164 people with an annual payroll of $4.5
to see the impact a slowing
billion and, wait for it….annual restaurant food
economy can have on
sales of $12.7 billion! There is no question as
restaurant sales and
to the positive change we have witnessed in
operations. So, while we
Arizona’s culinary scene and culinary diversity.
celebrate these robust times
While this growth may be considered unprecedented compared
in our industry, we must also
to some other states, we have a history of positive year over year
have a cautionary eye toward the inevitable slowdown that lurks
growth even during the economic downturn a decade ago. In fact,
around the corner by placing some dollars aside and managing food
estimates are that Arizona restaurant establishments will grow in
and labor costs extraordinarily well.
2019 to 10,000, with employment also increasing to 234,000, payroll
jumping by more than $400 million and total sales expecting to hit
The ARA will continue to provide you with the latest news as it’s
$13.3 billion. However, with opportunity also comes responsibility.
received and stands ready to assist you with your restaurant’s
success in the New Year ahead. Thank you for being a part of the
most wonderful industry and the Arizona Restaurant Association.
Steve Chucri President & CEO, Arizona Restaurant Association
message from chairman
Wow – 2018 has flown by! The holiday season is a time for reflection on all there is to be thankful for as we gear up with excitement for the New Year. It seems like just yesterday I was starting my role as Chairman of the Arizona Restaurant Association’s Board of Directors. I have appreciated the support and camaraderie my fellow board members have shown throughout the past two years and I look
LIKE HAVINGYOUR OWN DIGITAL SOUS CHEF.
forward to continuing to serve alongside them as Immediate Past Chairman.
Feature Life in the restaurant industry is not easy, but as we all know it is the most rewarding and fulfilling. While there will always be new challenges, a few important notions to live by in this ever-changing industry are to always take the high road, be humble in your successes, and even more so in your missteps. Each day we are given the opportunity to serve our guests and community, an honor that should not be taken lightly. Guests look to us to provide a welcoming, accommodating and warm environment to share with others, and what makes each restaurant experience unique is the people. With many options for diners to choose from, you and your staff are what is going to set your establishment apart. If you strive to have the right people in your restaurant, their willingness to go the extra mile to serve others is what will exceed the guests’ expectations, giving them the experience, you want to bring them back. As we move into 2019, we are looking to compound our 2018 successes by creating new trends, welcoming new restaurant and bar concepts and continuing to elevate guests’ dining experiences across the state. This issue of the Arizona Restaurant News shares with you some of the unique trends you can expect to enjoy and may even choose to implement in the coming New Year.
24/7 ONLINE ORDERING, IDEAS, SOLUTIONS & MORE. A smarter kitchen starts online with Kitchentelligence from Shamrock Foods – your go-to resource for culinary trends, menu ideas, business tips, cost calculators and more. Place orders. Track deliveries. Check invoices. Control costs. Manage inventory. Even get rewarded with exclusive offers, promotions, and more. This is just a taste of what you can do with Kitchentelligence. Visit shamrockfoodservice.com to get started today.
Wishing you all Happy Holidays and a wonderful start to 2019!
Facebook and Instagram @shamrockfoods Pinterest @shamrockfoodservice
NewTax + Revenue Recognition Guidance Find out how these updates impact your business.
Get Your e-Book
Proud partner to the Arizona Restaurant Association
Upcoming Events: JANuary January 26 | Arizona ProStart Competition | Scottsdale Community College MAY May 8-10 | National ProStart Competition | Washington, DC
May 13 | ARA/ARAEF Chip-In for Education Golf Classic | Troon North
May 17 – 26 | Spring Arizona Restaurant Week
Serv safe 2019 upcoming classes
AUGUST TBD | ARA Summer Mixer SEPTEMBER September 20 - 29 | Fall Arizona Restaurant Week OCTOBER October 10 | Foodist Awards | Young’s Market Company Seventh & Union NOVEMBER November 10 | Live & Local | Desert Ridge
health, business, recreation, arts, community service and a host of other areas which collectively make up the ommunities in which we live. Participants do so based on their own scheduling and time limitations. Community members are encouraged to sign up as information volunteers through the VCC website. Here’s how it works: Veterans, active duty military, spouses and caregivers call a central number (2-1-1 option 2 or 1-844-VET CONX) to be linked with a “Vet Connector,” a fellow veteran who will listen to the caller’s question and then connect the caller with an appropriate community member via email or phone. Those community members have already agreed
After 10 years serving in the Army, Gill Flores, a post-9/11 veteran, wanted to take the leadership skills he acquired in the military and become a school counselor. But Gill didn’t know how to get started, and wasn’t sure how to reflect his skills in a manner that school administrators would understand. What he needed most wasn’t social services, but access to local experts who could advise him on how to move forward. “I had the desire and the motivation, but I was missing connections to real people,” said Gill. While there has been significant work in the past decade supporting transitioning military members related to life pillars of employment, housing and health, there’s one pillar that has gotten insufficient attention and support: connections into the community. According to a recent study the majority of military families do not feel a sense of belonging within their local civilian community. The same study concludes that a majority also want greater opportunities to meet people, make friends, or expand professional networks in the civilian community. That’s the work of Vets’ Community Connections (VCC), a community based organization working here in Maricopa County. Vets’ Community Connections provides individuals who want to do more than say “thanks for your service” the channel to use their own professional experience and expertise to respond to veteran and military family relocation and reintegration questions in a wide variety of fields: education,
to answer a call or an email from a veteran, active duty service member or spouse when their expertise matches a caller’s need. The desire for connections in community isn’t limited to veterans, it rings true for spouses, active duty and caregivers as well. More often the challenging things for these families can be those that local residents take for granted – like knowing a good car mechanic, or handyman. A Marine spouse recently reported to VCC: “It’s been hard to know where to start for information off base. The internet just gets overwhelming and I don’t know what to trust. VCC was able to simplify my search by getting me connected with a handyman for a repair who
gave me an honest quote and it was so nice to get the VCC discount.”
When the post-9-11 veteran, Gill, contacted VCC they were able to connect him with a local school counselor with decades of experience. Gill described the counselor as “a great resource” who “led me down the right path”. Connections make the difference. This holiday season you can be part of that success: Be a part of VCC’s Maricopa County resource database by taking a few minutes to sign up at www.vetscommunityconnections.org.
MARICOPA COUNTY’S CELEBRATION OF THE MILITARY CAREGIVER
Saturday, February 16 th Mesa, Arizona
Be a part of this celebration of our local hidden heroes who play an essential role in caring for injured or wounded service members and veterans. Please consider donating gift cards for raffle prizes by contacting Joanna@VCCPhoenix.org
this is the place i was telling you about
T h i s i s t h e p l a c e I was about Telling You
Feature “The fact that we get on is a miracle,” Pillsbury says at their first stop, as the trio argues over how to best consume a Peroni. But they soldier on, noshing on meatballs, sipping rare Arizona sake and agave-sweetened espresso, and displaying borderline-inappropriate pleasure while chewing the “best bite in Phoenix.” They end the night by incinerating their taste buds on taco-truck peppers and warmly musing on food’s power to bring friends closer. In this episode of “This Is the Place I Was Telling You About,” Leoni takes Dwyane and their urbane winemaker friend Sam Pillsbury on a dine-around of downtown Phoenix restaurants.
The Single Best Bite in Phoenix
Chef Danielle Leoni and her Jamaican-born husband, Dwyane Allen, opened The Breadfruit & Rum Bar in Phoenix’s Roosevelt Row in 2008, when the downtown neighborhood was sleepy rather than ascendant. Their vision: to marry Caribbean flavors with Arizona ingredients and serve tropical cuisine to desert denizens who didn’t know they craved it. The Breadfruit has since become a Roosevelt Row staple, and Leoni has appeared on the Food Network show “Chopped” and been chosen for the James Beard Foundation’s Women’s Entrepreneurial Leadership Program.
In this episode:
El Lorito, Phoenix
The Breadfruit & Rum Bar, Phoenix
Nobuo at Teeter House, Phoenix
Songbird Coffee & Tea House, Phoenix
El Lorito, Phoenix
THE BRANDS YOU NEED. THE EXPERTISE YOU WANT. WE ARE BREAKTHRU
LEARN MORE AT BREAKTHRUBEV.COM/ARIZONA
brush title tbd what to expect in 2019
What to expect in 2019: More AI technology, marijuana and ‘motherless meat’
by Joanna Fantozzi | Nation’s Restaurant News
1. The struggle to balance menu prices with labor costs will continue
As more restaurants raise wages, Baum + Whiteman predicts that restaurants will continue to struggle to balance wage costs and rising rents with menu price decisions. Amazon has made $15 per hour the entry-level minimum wage. Expect more reductions in service staff, automation and other technologies, as well as conversion to fast-casual formats and reliance on delivery. 2. “New” fast casual The fast-casual segment is growing but also still evolving, and a new niche has emerged to fill the gap between fast casual and traditional fine dining. The new fast-casual establishment combines fine-dining restaurant food quality with a quick-service atmosphere and mid-range pricing, like Kish-Kash in New York, a “couscouseria” offering high-quality, counter-service North African food for $15 to $18 per person.
Rising labor costs and emerging technologies will prove to be both a challenge and an opportunity for restaurants in 2019, according to the first in what will likely be a wave of predictions for next year. Food and restaurant consulting firm Baum + Whiteman on Tuesday released its trend predictions for the restaurant industry in 2019, including industry-wide issues like minimum- wage debates and AI technology replacing employees, to cuisines and flavors that are forecasted to heat up next year.
These are the 12 biggest industry trends that Baum + Whiteman see on the horizon for the restaurant world.
3. Robot takeover From a robotic pizzamaker that makes 120 pizzas in an hour in France, to an artificially intelligent sidewalk barista at San Francisco’s Café X, robot chefs and waitstaff are not going away. As front- and back-of-the-house bots continue to make the transition from novelties to commonplace tools, restaurants will have to find new ways to assure job security for employees, the report said. 4. Breakout cuisine from former Soviet states While Americans tend to conflate Central Asian cuisine with Turkish kebabs and halal cuisine, culinary traditions from former Soviet states like Kazakhstan, Tajikistan, Azerbaijan, and Uzbekistan have started to poke their way into the mainstream, according to Baum + Whiteman. Popular dishes include new spins on noodles, meat and fruit combinations, and dumplings stuffed with tarragon, cilantro, dill, and spinach.
5. Marijuana goes mainstream As cannabis is legalized in more and more places, both nationally and internationally, THC or CBD-laced food and drink have become sought-after menu items. Baum + Whiteman mentions CBD oil-infused cocktails and ingredients in unique forms across the country as a major trend, like the CBD-infused latte at Green Goddess Café in Stowe, Vt., and CBD-infused cake frosting at By Chloe’s in New York City. 6. Restaurants and grocery store meal kits While Blue Apron and other online meal-kit providers struggle to create a returning customer base, food stores and restaurants are dipping their toes into the meal-kit game. Baum + Whiteman predicts that Chick-fil-A will be the next leader in this market by testing out ready-to-cook meals in several markets.
7. Sour reigns supreme With the rise in popularity of Korean, Filipino and Persian food comes a new penchant for sour flavors. Baum + Whiteman mentions the persistent popularity of kimchee and fermented kombucha, as well as vinegar-based Filipino dishes and new Persian restaurants that use tart ingredients like rhubarb and sour oranges. 8. Lab-grown “motherless meat” Lab-grown protein is set to explode in popularity through 2019. Economically viable lab-grown-meat production is still years away, but If meat grown from cells becomes the norm, we would see monumental improvements in animal rights and environmental concerns, the report contends. Just Inc. plans to test a “cultured” chicken product in an unnamed restaurant next year, subject to regulatory considerations, and Tyson Foods and Cargill are also heavily invested in the emerging industry.
9. “New” Chinese cuisine American interest in Chinese food has gone way beyond dumplings and fried rice. Traditional Chinese dishes that are set to become the next big craze include Szechuan hot pots (meats and vegetables dipped tableside into a spicy broth), dry-pot cooking (a similar concept but sans broth), and Chinese street food like Chun bings (flakey flatbreads), Baum + Whiteman predicts. 10. Katsu Sando Japanese pork katsu sando — panko-fried cutlets stuffed between two slices of bread and slathered in sauce — is growing in popularity, Baum + Whiteman says. You can find versions of this traditional comfort food at Momonoki in Atlanta (made with fried shrimp or chicken), and at Katana Kitten in New York, which serves an Italian version that’s topped with a slice of mortadella.
11. Joyful décor Gone are the days of predictable white tablecloths or brooding brick walls and Edison bulbs. Baum + Whiteman is noticing a trend in wild restaurant décor. Think colorful patterns, walls covered in vibrant fabric, and more fashion-inspired interior designs. 12. Non-restaurant businesses invade the food and drink industry From Capital One banks opening cafes, to theaters like iPic and Alamo Drafthouse serving full meals, and Restoration Hardware installing a wine bar on the roof, the lines between different types of public spaces are blurring to compete for the attention of customers.
S A N D E R S O N L I N C O L N S A E R S L I C L
brush title tbd food trend pred ctions
Food Trend Predictions
by Bret Thorn, Tara Fitzpatrick, Ron Ruggless | Nation’s Restaurant News
There are some things that remain constant, even as the calendar page flips to a new year. Talented workers will be hard to get (and keep), margins will be tight and customers will be fickle. But the foodservice industry is always evolving and, like any year, 2019 will surely have its own unique alchemy of hot-button issues, cutting-edge technology and “you gotta try this” foods. In this report, NRN’s veteran editors present their top predictions for the industry. Get ready for alfajores and sea vegetables on your plate, a new non-dairy milk in your cold brew and better perks for parents. More robots will take to the streets and the skies, too. Desserts will get a ‘better-for-you’ spin People love getting permission to eat what they love, and so an array of sweetened superfoods is finding its way onto menus. That includes The Hummus & Pita Co.’s line of dessert hummus — heavily sweetened and with chocolate or cookie dough added. (They also introduced a pumpkin-spice hummus shake this fall). It also includes gluten-free alfajores — a type of sandwich cookie — at Tanta, a Peruvian restaurant in Chicago that also sprinkles its chocolate mousse with toasted quinoa.
has an entire “Mashbar” where guests can assemble their own sweet not-terrible-for-you concoctions, or order curated ones, like the Taro Trouble No-Yo made with grain-free granola, taro pudding, seasonal berries (organic, of course), mango and organic puffed quinoa, or the Bonita, which has almond butter, grain-free granola, cashew cream and organic strawberries. This is a trend with genuine legs as consumers continue to seek any excuse to indulge. If that means drizzling your ice cream with olive oil or adding chia seeds to your milkshakes, then so be it.
Hu Kitchen, a health-focused fast-casual restaurant in New York City (the “Hu” is pronounced like the first syllable in “human”),
Cold brew will see backlash Cold brew coffee is here to stay, and will very likely become much more widespread in 2019. Many consumers like its smoothness, its hints of chocolate and its implicit sweetness, and manufacturers have figured out how to make a very consistent product and are delivering it in kegs or in concentrate to restaurants, bars and coffeehouses. But some coffee aficionados are striking back, complaining that cold brew — made by soaking ground beans in cold water for 16 hours or more — doesn’t properly extract the more distinctive flavors of really good coffee, leaving the terroir behind in the beans. Add to that new machines that can quickly chill hot- brewed coffee to whatever temperature operators like, and you have a convenient alternative that, cold brew detractors argue, lets coffee be served cold and quickly without diminished quality. The anti-cold brewers are building some momentum, putting forward arguments that hot-brewed coffee is better for you — one study showed it has more antioxidants than cold brew — so more hot-brewed cold coffees are likely to join the marketplace in 2019. Then, consumers will decide what they like best.
Oat milk will be the hot dairy alternative Dairy-free, nut-free, possibly gluten-free (depending on where the oats are processed), this milk substitute is drawing fans with its texture that’s creamier than most of its counterparts. It also has more protein than nut milks (but less than soy milk or actual milk) and more fiber than any of them. Oat milk is becoming more commonplace in coffeehouses, and it’s showing up on menus, too, like at Protein Bar, a chain of about 20 units based in Chicago, where the Big Date is a blend of dates, cocoa nibs, banana, vanilla whey protein and oat milk. There are broader trends driving the oat milk craze: The Coca-Cola Co., citing Mintel data, reported that 36 percent of consumers said they would buy coffee with non-dairy milk, and 35 percent said they’d like coffee with added protein.
The trend will get an additional boost when PepsiCo launches an “Oat Beverage” under the Quaker brand in January.
Lagers will see love again Maybe it was sour beer that drove craft beer lovers and producers over the edge — that made them say, “You know what? It might be nice to have a beer that I don’t have to think about in order to enjoy.” Maybe hop bombs and brews infected with bacteria aren’t the be all and end all of what’s available from fermented malted grain. American consumers never actually strayed too far from lagers. Despite the rapid growth of craft beer in general and India pale ales in particular, craft beer’s share of the national beer market is only around 12.7 percent by volume and 23.3 percent in dollar terms, according to the Brewers Association, the trade body of independent craft brewers. Now those independent brewers are increasingly turning to what is arguably the most difficult beer to brew well. Lagers don’t have many funky or floral hops to hide behind and can’t be sweetened up with extra malt. They have to be balanced and easy drinking. A growing number of craft brewers are trying their hands at it — some have been doing it for years — and consumers are likely to respond. — Bret Thorn, food & beverage editor These days craft brewers are talking about clean, crisp lagers.
We got the beet: The root vegetable will be everywhere
Beets are popping up (or taking root, should we say) on a vast cross-section of menus, from buddha bowls to beverages and beggar’s purses. The Little Beet, a gluten-free chain with nine units on the East Coast, is making a name for itself with beets at the forefront. And while deep ruby beets make an indelible impression, golden beets are stepping into the spotlight too, as in the beets and lentils side dish from The Little Beet.
Beets are part of the plant-forward movement as well (think “spaghetti and beet balls”) with their blood-like attributes.
Rootsy though they may be, beets can be elegant too. At a recent chef summit in Monterey, Calif., put on by the Markon Cooperative and the Mushroom Council, beets stole the show with beggars’ purses that recall the glamorous world of 1980s
haute cuisine with an eye towards the sustainable, down-to- earth future plans of culinarians.
In addition, beets in liquid form are adding their earthy touch in juices and smoothies, able to go savory or mingle with sweet components like banana or vanilla almond milk. — Tara Fitzpatrick, senior editor Sea vegetables will gain a toehold in the U.S. Asian and European diners have grown accustomed to seeing seaweed — or sea vegetables, as they are also known — on their finer dining menus, and U.S. customers are starting to ride the wave of popularity. Seaweed consumption is growing 7 percent annually in the United States, according to James Griffin, an associate professor at Johnson & Wales University. “Sea vegetables in the higher level of dining have been growing rapidly over the past 10 years — and over the past three incredibly fast,” the educator at the Providence, R.I.-based university told an NRA Show audience in May. “It’s an umami bomb,” Griffin said. “The secret behind all that is that it has a high level of glutamic acid, which is in the flavor enhancer MSG [monosodium glutamate], and it’s found in a natural form in almost all sea vegetables.” Seaweed also includes naturally occurring sea salt, he said, as well as other minerals.
Griffin said chef Rene Redzepi at Noma in Copenhagen is using seaweed in a variety of ways. At Smyth in Chicago, chefs John Shields and Karen Urie Shields have earned two Michelin stars with such sea vegetable creations as a Sea Lettuce Cookie amuse bouche.
“For chefs,” Griffin said, “this is something sexy. It’s something exciting, and something we don’t work with all that often.”
It can be purchased fresh or dried, with the dry version being the most common. About 90 percent of the seaweed consumed in the United States is imported from Asia. Sea vegetables are highly sustainable, with the typical six- to eight-month farming span done without fertilizer, pesticides, herbicides or feed. — Ron Ruggless, senior editor
You are dedicated to serving your customers. We are dedicated to serving you.
Heartland’s gift card and loyalty program helps you promote your operation, motivate customers to spend more, and keep the communications going with special offers and incentives that increase return visits. With Heartland, you’ll serve your loyal customers and keep them coming back, as we serve you from our industry-leading solutions.
Heartland helps you acquire more loyal customers with our innovative gift card program that includes customized cards, reloading capabilities, and a card- not-present program that allows your customers to use their phone number as their identifier.
The Heartland loyalty program allows you to create meaningful and valuable relationships with your customers. Give your customers the VIP treatment with rewards-based marketing.
To learn more, contact Angela Ihry 605.940.9861 or email@example.com heartland.us
As more consumers eat at home, industry experts forecast 2019 to be a lot like 2018 — that is, another year of flat restaurant traffic. Specifically, officials at market research firm The NPD Group predict the industry will finish 2018 with spending up 2 percent and traffic flat, the same outlook it gives for the year ending December 2019. Yet, despite the expectation of a repeat performance, officials at the Port Washington, N.Y.-based firm say there are opportunities for disruption. “It will continue to be tough,” said David Portalatin, NPD vice president and food industry analyst. “Those restaurants that are successful at driving traffic in the restaurant are the ones that are differentiating in experience.” What pockets of growth NPD does foresee will be found across the restaurant landscape. Large chains will continue to focus on value, and emerging independents and micro chains, or concepts with 3 to 19 units, find a recipe for success with innovation and experiences, the firm noted. “We think that through 2018 and 2021 these [mostly fast- casual] micro-chain restaurants will increase their spend by about 5.3 percent,” said Portalatin. “If they are all spending
more, it’s a reflection that they’re selling more, performing better in their markets.”
Meanwhile, full-service restaurants are expected to increase their spend by 3.8 percent and large chains by 3.6 percent.
How will operators make this growth a reality in 2019? NPD outlined three ways operators can meet the needs of consumers in the new year through a variety of tactics.
Provide an in-home meal solution Driven by technology and the growing work-at-home workforce, consumers will continue to eat more meals at home. Therefore, finding a role as an in-home solution will be important for growth, noted Portalatin.
Some operators have already begun experimenting, and Portalatin said he fully expects others to follow suit.
In a digital sub-trend, some progressive operators are doing away with the brick-and-mortar restaurants altogether, opting instead to operate virtual, delivery-only restaurants.
For example, in late August, Atlanta, Ga.-based Chik-fil-A rolled out Mealtime Kits, pre-portioned ingredients that consumers can turn into a meal in under 30 minutes at home. The chicken sandwich brand’s kits, priced at $15.89 and featuring recipes such as the Chicken Parmesan and Pan Roasted Chicken, are available at Atlanta-area locations for a limited time. “We know our guests are busier than ever and need a variety of convenient dinner options,” Michael Patrick, who oversees Chick- fil-A’s innovation and new ventures, said in a recent statement. Deliver digital convenience The foodservice industry is going digital at an accelerated rate, a trend that NPD expects to in the coming year and beyond. Digital orders, which currently account for five percent of all orders, will increase 22 percent per year through 2020, according to NPD research. By 2020, digital orders will account for eight percent of all orders.
“This phenomenon is very, very small right now, still in its infancy,” noted Portalatin.
Among the early innovators in this area is the New York- startup Green Summit Group, which in 2017 launched nine virtual restaurants out of a single kitchen in Chicago fulfilling orders exclusively for Grubhub customers. Similarly, third-party delivery company DoorDash over the last few years has been setting up commissary kitchens for its delivery-only restaurants, a concept that it hopes to expand across the country.
“In an otherwise flat environment, [digital] is a great way to differentiate,” Portalatin said.
“We’re excited to help create an experience on DoorDash where proximity will no longer get in the way of ordering from your favorite restaurants, Marissa Kaplan, DoorDash strategy and operations manager, said in a company blog post.
time, could potentially have negative impact on the dining experience.
For now, The Meatball Shop is enhancing its dining experience in other ways, such as exploring which of the restaurant’s music its customers are enjoying (or not), and by offering unique happenings, such as the new Tasting Table Naked Book Club, a Monday night dinner and discussion led by Tasting Table founder Geoff Bartakovics at the West Village location. Other ways restaurants will look to differentiate themselves in the year ahead include focusing on plating, innovative cuisine (especially ethnic cuisines) and excelling at a certain level of service, Portalatin added.
NPD’s Portalatin sees ghost kitchens as sources for “explosive innovation” and “a creative force in the market.”
Enhance the in-restaurant experience
But when customers do decide to get off the couch and dine out, the experience needs to be worth the trip.
“Acquisition of consumer goods — these sales are not growing at the same rate as experiential, making memories,” said Portalatin. The vibe at The Meatball Shop, a fast-casual concept with seven locations in New York City and Washington, D.C., is heavily focused on the dining experience. “You look to continually offer experiential moments,” said Adam Rosenbaum, CEO of The Meatball Shop. “But there’s a lot of things that can take away from the dining experience.”
For example, Rosenabum notes that adding pay-at-the-table technology, which can expedite orders and improve table turn
using technology for peace of mind
using technology for
peace of mind
By Kendelle Lord and Eric Giering | BMO Harris Bank
services tools are as much about safety as they are about convenience. Virtual vaults reduce the risks associated with transporting large cash deposits. It’s also convenient for franchise locations that aren’t positioned near a bank branch. Smart safes allow you to store cash in a secure environment. With built-in currency recognition technology, as well as connectivity between your headquarters and your bank, smart safes can provide you with next-day provisional credit with immediate availability of deposits.
When franchise operators think about technology, it’s usually in the context of attracting and retaining customers. What’s less obvious is the technology available to help business owners manage their finances. The fact is, banking isn’t the chore it used to be! It’s true that for a long time, it seemed that only bankers understood the technology and the benefits. But things have changed. Operators are more technology savvy, and the tools themselves have evolved, becoming more intuitive and user friendly. These days, business owners have plenty of online banking technology at their fingertips, allowing them to save time and money, while protecting against fraud and theft. Safety and Efficiency Too many operators maintain separate accounts for each location. Online banking allows you to set up your restaurant network to link a single deposit account per tax ID. Not only does this allow you to reconcile all your cash in one account, it eliminates the fees that you may incur on multiple accounts. Maintaining a single account also reduces the risk of fraud or errors. Beyond account management, cash management for many companies often involves serious risk, such as carrying large amounts of cash to a bank branch. That’s why many treasury
Along with freeing up cash management duties, a smart safe can also act as prevention against internal theft. No operator likes to admit to shrinkage, but it’s a fact of life for franchise operators. A smart safe can help significantly reduce the risk of employee theft. Positive pay is an effective deterrent against check fraud. According to a 2017 survey by the Association of Finance Professionals, check fraud accounted for nearly three quarters of all payments fraud. With positive pay, your check issue information is matched against checks presented for payment. The mismatched items are reported the next business day through your online banking account. You can view the check’s image and make a pay or no pay decision. Integrating banking solutions into your operations isn’t the complex undertaking it once was. Along with improving efficiency, today’s tools are designed to improve security and prevent theft. But while the tools are common, it’s important to make sure they’re implemented with the specific needs of your business in mind. When executed properly, these solutions aren’t just convenient—they can provide franchise operators with peace of mind. Kendelle Lord is a Treasury & Payment Solutions Sales Professional at BMO Harris Bank. Eric Giering is BMO Harris Bank’s Co-Head of National Industries Programs. Banking products and services are subject to bank and credit approval. BMO Harris Bank N.A. Member FDIC.
PHARMACY DISCOUNT CARD
Help attract and retain employees with this FREE Pharmacy Discount Card
We measure our success
by your success
A prescription savings solution is available for members of the National Restaurant Association and its state restaurant association partners, including the Arizona Restaurant Association (ARA) . Because this pharmacy discount program is not insurance, it can help lower the cost of FDA-approved prescription medications for those who are uninsured. It also may provide a less expensive alternative for those with insurance coverage. So all of your employees – whether full-time, part-time or seasonal – can take advantage of this free discount card. • Helps employees and their families save up to 75% (average savings of about 40%) on all FDA-approved prescription medications. • Accepted at more than 62,000 pharmacies nationwide and valid for anyone living in the United States. • Cards are pre-activated and easy to use; privacy is protected. • There are no fees associated with using this Card. • Administered through OptumRx®. This discount card program is not insurance .
Wells Fargo Middle Market Banking makes it our business to know your business. We take the time to listen and learn about your business and its growth opportunities, challenges, and operations, so we can offer relevant and informed recommendations. Learn more at wellsfargo.com/com .
Help your employees today: Send them to HospitalityRxCard.com to download their free card and start saving immediately! For more information on the Pharmacy Discount Card program, contact the ARA or Alliah Sheta at firstname.lastname@example.org.
There was a time back in the olden days when people had to much to drink the worst thing that would happen was their horse wouldn’t listen and then maybe they’d end-up sleeping at the bar. There were no life-threatening auto accidents from intoxication. While we now operate computers, at one time these were cash registers. While there was an exposure for theft of cash then, there was no stored information readily available and the Internet didn’t exist. Property was not as valuable and technology was not paramount. In today’s technological landscape, restaurants, bars and nightclubs now have amazing efficiency of technology, beautifully built properties, entertainment, extra curricular activities and many hard-working employees. 2019 and beyond is going to see an up sell of newer insurance coverage options to help protect all of these different and continually changing exposures. Active shooter coverage has come into play for the hospitality exposures. There have been many tragic situations in Las Vegas, California and other areas where gunmen have come into facilities and shot innocent people. Unfortunately, one will never be able to fully protect for something so horrific, this coverage can certainly help assist with possible coverage gaps. Cyber liability has become very relevant recently due to credit card information threats, shut down point-of-sale systems, ransomware and other exposures. This particular type of coverage will continue to gain popularity and be more inclusive in many insurance carrier policies.
Insurance companies have several coverage options and policy forms. It is important to investigate and make sure when purchasing coverage it’s worth the paper it is written on. Having an understanding of what will trigger your policy is essential to making a valuable purchase. There is so much going on in the restaurant landscape with tips and wages work performed, vacation time, sick time and fair wages. It can certainly be overwhelming to keep on top of it all. A good employment practices policy with wage and hour coverage can certainly help. As we head into 2019, these highlighted exposures will be on the radar of insurance companies. The other exposures of liquor liability, property damage, slip and falls and workplace injuries while also remain prevalent. With this information in mind, good insurance products can assist with peace of mind so one can continue to run a successful business.
restaurant marketing tips
Restaurant Marketing Tips Best Practices for Restaurants
from ON Advertising
On average, the restaurant industry has been expanding at a 3.5% growth rate over recent years, meaning competition is becoming more intense. The reality is that promoting your competitive advantages will be the key to helping your business stand out amongst competitors. Brand Consistency With so many review sites and online communities, restaurants need to manage their online reputation as well as marketing tactics to ensure brand consistency. Customers research restaurants online for reviews and recommendations before they will consider coming in for breakfast, lunch and/or dinner. Having a strong, consistent brand image in the digital landscape is crucial to bringing in new customers. Some common mistakes that restaurants make on various traditional and digital platforms
include: using different logos on profile pictures, generating too many promotions at once that inundate or confuse customers, or speaking in conflicting tones on social media or in print campaigns that muddy your identity. The best way to avoid these occurrences is to take a step back and assess what your objective is and what will resonate with your ideal customer personas. Social Media is a Science Building a strong social media presence will increase customer engagement with your restaurant. This does not mean you need to have a presence on every platform. In fact, sometimes being on too many platforms can do more harm than good, especially if your audience is not spending time on those platforms. Leveraging strategy to understand your customer is crucial to identifying the right social medium for you. Finding your unique voice through social media will increase customer interaction with your business, thus building that relationship from first time customers to dependable regulars. Nurture Your Customers & Personalize Your Marketing Nurturing your customers is also a key factor in retention. Having effective email marketing campaigns, that follow regulation and spam laws, are a must for ensuring you stay top of mind to customers that have enjoyed your restaurant before. Personalized marketing and advertising campaigns that gain the attention of current and potential customers
Two sweet deals, just for saying HELLO.
have a better chance of continued loyalty. Leveraging digital marketing tactics to build a community, with your brand being the central focus, will improve business to customer relations. Some platforms the ON team recommends are Facebook, Instagram, and Google Ads (formerly Google AdWords). There are plenty of resources online for how to effectively use these tools to your company’s benefit, but keep in mind, their algorithms constantly change. While the Arizona market is competitive, each restaurant is unique. Smart marketing and advertising tactics help to call attention to what makes each restaurant special.
If you run a restaurant, you spend a lot of time serving others, so it’s nice when someone wants to serve you. Get a $50 gift certificate to our catalog when you meet with us for a FREE review of your linen and uniform needs. No obligation!
For more useful tips from ON Advertising, visit us here .
PLUS , did you know? We’ll cover your ARA dues. Contact us to learn more.
(928) 774-1891 (602) 271-9114 (520) 622-4811
ARA Member Since 2009 LINENS I UNIFORMS I FACILITY SERVICES I EMPLOYEE APPAREL PROGRAMS missionlinen.com
curb your restaurant’s craving for energy and save
Curb Your Restaurant’s Craving for Energy and Save
This may not come as a surprise to those who have worked in food service, but restaurants are one of the most energy- intensive types of commercial buildings in the United States. Alternative message consistent with web content: Up to 80% of this energy is wasted on heat and noise generated by inefficient appliances, HVAC systems, lighting and refrigeration. Considering a restaurant’s diverse energy needs and the energy required to operate many types of restaurant equipment, savvy restaurant owners and operators have many opportunities to reduce energy use and save money. Behavioral and operational changes, such as training employees to adjust the HVAC thermostat at close, can make a big impact on energy use; but even more so, installing energy-efficient equipment can save money, energy, and time without diminishing the quality of service. SRP has been working with the restaurant industry for years to help offset the cost of installing energy-efficient restaurant equipment. In the last five years alone, restaurant owners in
SRP areas have saved approximately $264,000 in first-year electricity costs and earned nearly $190,000 in SRP rebates for upgrading equipment through the SRP Standard Business Solutions program. Consider that energy savings continue well beyond the first year of equipment operation, and the savings really begin to add up.
The benefits from energy efficiency measures don’t stop at lower utility bills and include: • Increased occupant comfort • Improved indoor air quality • Better lighting quality and ambiance • Increased employee productivity • Reduced maintenance costs, and in some cases less food loss.
Every dollar saved on energy improves your bottom line. To find out which energy efficiency measures are right for your business contact SRP by calling (602) 236-3054 or get a free custom energy report at savewithsrpbiz.com/BEM.
Whether you are just opening a restaurant, considering a remodel or expansion, or looking for a few tips to improve your restaurant’s operations, visit savewithsrpbiz.com/ restaurants to learn about available rebates and other opportunities for saving.