THE MAGAZINE OF THE ARIZONA RESTAURANT ASSOCIATION
How leadership helps advocate and elevate the restaurant industry in Arizona.
GOVERNOR DOUG DUCEY
SENATOR KIM YEE
MESSAGE FROM CHAIRMAN
COUNCILMAN EDDIE COOK
MEET OUR MEMBERS Skip Chase
I 0 EVENTS events A season full of sizzling political events and milestones have come and gone. Explore them at a glance.
Economic outlook of our industry and influence on the state.
The Politically Speaking edition highlights the government affairs and advocacy activities driven by the Arizona Restaurant Association (ARA). As the voice for restaurants on all things politics; we’re bringing to you the people behind the scenes making decisions, the issues we care about, recognizing how big of an impact our industry has to the state, and showing you events and ways to help. Advocating for our industry is a top priority for the ARA, and it takes a lot of ingredients to ensure success and prosperity. So dive in to learn more about the state of our political plate.
3 8 INDUSTRY FORECAST
A dash of political issues impacting our industry at the Federal, State, County and City levels.
7 2 STATE
Grumpy food blogger at table 5
President & CEO Steve Chucri
Membership, Vice-President Jana Shelton ProStart & Education Foundation, Manager Tracie Carmel Public Affairs & Communications, Manager Chianne Hewer Partnerships & Industry Programs, Manager Brynn Johnson
Marketing & Events, Manager Kalinda Stephenson Magazine Design VE Marketing
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4250 N. Drinkwater Blvd., Suite 350 Scottsdale, AZ 85251 P 602.307.9134 F 602.307.9139 azrestaurant.org
To learn how you can save energy and money, please visit aps.com/restaurants or call (866) 333-4735.
This program is funded by APS customers and approved by the Arizona Corporation Commission.
The ARA serves as a resource for your new or expanding restaurant,
communicates your needs and ideas to elected officials and initiates
or monitors any legislative activity that impacts your business.
The ARA Political Action Committee
Our voice has to be heard when decisions on city, state, and federal policies are being made.
(PAC) is dedicated to funding
issues and candidates that hear,
observe, and respect the needs
of our industry.
To own or manage a
We are proud that this year Arizona’s restaurant industry is leading the
restaurant has its fair share
country for year-over-year sales growth, for the second year running.
of challenges. Our job at the
That’s right; our industry is projected to register $11.5 billion in sales this
ARA is to remove obstacles, challenges or regulations that
year alone. We are also creating more job opportunities than any other
might be in the way so you can focus on your restaurant’s prosperity.
state for the next decade. I would say that is something to be proud of,
Thank you for your support and appreciation of the ARA’s advocacy
and something to protect. The Arizona Restaurant Association (ARA)
efforts and for allowing us to represent Arizona’s tremendous
serves as the political voice for the state’s restaurant industry to
safeguard your continued success.
While these numbers can speak for themselves, we have to constantly
remind the political and business leaders of our state that our industry
matters. Our voice has to be heard when decisions on city, state,
Steve Chucri President & CEO, Arizona Restaurant Association
and federal policies are being made. The ARA’s advocacy efforts are
instrumental in ensuring that you have the ability to grow, expand,
compete and hire the exceptional talent you need in your restaurant.
seat at our own table we need a
message from chairman
Feature By getting more involved, you can gain a much better understanding about how ideas become laws; exchange valuable industry viewpoints to governing bodies, and meet and interact with the elected officials that make decisions which impact your business. You can serve the ARA advocacy activities by sitting on the Government Affairs Committee, attending the Public Affairs Conference in Washington, D.C. every April, or giving financially to the ARA Political Action Committee. I encourage everyone in the restaurant industry, especially members, to learn about and get involved with the advocacy efforts made by the Arizona Restaurant Association. Without the focus on advancing policies, issues and candidates that have our industry’s perspective, we wouldn’t have a seat at our own table. Enjoy this edition of the Arizona Restaurant News, Politically Speaking , and let the ARA know how you’d like to be more involved with the government affairs activities. Best, Bobby Fitzgerald Chairman of the Board Arizona Restaurant Association
I didn’t go to school to be in politics, I went to school to manage and run restaurants. Why then, do I feel so passionate about getting involved in the advocacy realm? I give my time, money, energy, and experience to the political world so that I can have an understanding about the policies that impact my family, my business and my children’s future. I give so that I can have a voice at the table and stand up for my restaurants’ needs and to tell the story about the great impact it has the lives of my employees, and for the state.
Without the focus on advancing policies, issues and candidates that have our industry’s perspective, we wouldn’t have a seat at our own table.
While I understand that being partisan isn’t everyone’s cup of tea, there are many other ways to be politically involved without being one sided. In fact, policies made from the middle tend to be the most meaningful.
Wednesday, March 25, 2015 National Bank ofArizona - 6001 N. 24th St. Building C , Phoenix,AZ 85016 Arrival Time & Check-In: 10 a.m. - 10:45 a.m. Start Time: 11 a.m.
Governor Ducey signs S1241 into law ; auxiliary container and plastic bag regulation a matter of statewide concern April 13, 2015
ARA Freshmen Legislators Welcome Reception January 20th, 2015 Offices of Southwest Gas
Mr. Hochuli’s talking points will include:
• How claims are fought from an insurance carrier’s perspective • What an establishment might not see behind the scenes of their lawsuit • How uniqueArizona liquor laws are and how much risk is on the establishments • The best way to protect an establishment from lawsuits
Governor Ducey Inauguration, Taste of Arizona Luncheon sponsored by ARA members
USLI/Ambassador Group Liquor Conference March 25, 2015 Offices of National Bank of Arizona
Governor Ducey signs HB2347 into law ;
the extension of days to protest unemployment insurance claims
TIMELINE January- June 2015
Jan 5, 2015 Arizona State Capitol
ARA Foodist Award Show: Political Advocate of the Year April 23, 2015 The Showcase Room
ARA PAC Chairman’s Club: Lunch with Senator Jeff Flake May 27, 2015
Ruth’s Chris Steakhouse
Governor Doug Ducey’s Leadership Summit May 14, 2015 University of Phoenix Stadium
NRA Public Affairs Conference in Washington DC April 13-16, 2015 United States Capitol
ARA PAC Fundraiser: Top Golf Scottsdale June 4, 2015 Top Golf Scottsdale
For upcoming Government Affairs events for the remainder of the year, contact Chianne Hewer .
ACCOMPLISHMENTS The ARA Government Affairs team is proud of our many achievements at the Arizona Capitol including successfully initiating or defending against legislative bills that impact the restaurant industry. 201 5 : Extended the amount of time an employer has to review and protest unemployment insurance claims to ten business days. Ensured any regulation made on restaurant auxiliary containers or plastic bags not be done at the city level, allowing statewide consistency. Stopped legislation from becoming law that would prohibit the use of electronic benefit cards in quick service restaurants. 2014 : Standardized the acceptance of online access to county food handler training programs while maintaining the same high standards of food safety. 201 3 : Limited the definition of service animal to coincide with the Americans with Disabilities Act, limiting the use of service animals to specific types of animals that perform specific functions. Preempted legislation to preclude local jurisdictions from passing ordinances or policies that mandate employee leave, vacation time and other benefits. 201 2 : Dramatically amended an ordinance proposed by Maricopa County to regulate play areas. 201 1 : Prohibited local governments from adopting policies that would disallow restaurants from including a toy in a kid’s meal. 2009: Amended the language of a bill, giving restaurant owners discretion in allowing guns in their establishment. 2007: Defeated a Pima County effort to impose increased impact fees on restaurants with drive-thrus.
itical action committee
ARIZONA RESTAURANT ASSOCIATION
GOVERNMENT AFFAIRS COMMITTEE
POLICY ISSUE PLATFORMS
P o l i t i c a l A c t i o n C o m m i t t e e
PAC A r i z o n a R e s t a u r a n t A s s o c i a t i o n P o l i t i c a l A c t i o n C o m m i t t e e
7 The Arizona Restaurant Association Government Affairs Committee (GAC) advocates for restaurateurs and is the voice for the restaurant industry in our state on political issues and elections. The Government Affairs Committee focuses on the following core policy areas as our foundation to drive legislative action.
ARIZONA RESTAURANT ASSOCIATION
political action committee
Political Action Committee
POLITICAL ACTION COMMITTEE
Healthcare Minimum Wage Taxes
P o l i t i c a l A c t i o n C o m m i t t e e Steve Chucri Arizona Restaurant Association President & CEO Steve@azrestaurant.org 5
PAC A r i z o n a R e s t a u r a n t A s s o c i a t i o n P o l i t i c a l A c t i o n C o m m i t t e e
Arizona Restaurant Association 4250 N. Drinkwater Blvd. Suite 350 Scottsdale, Arizona 85251 602.307.9134
Chianne Hewer Arizona Restaurant Association Public Affairs & Communications Manager Chianne@azrestaurant.org
Immigration Food Costs Labor Law
ARE YOU UP-TO-DATE WITH ARA GOVERNMENT AFFAIRS? The Political Brief is the e-newsletter to keep you up-to-date on all things government affairs. To sign up, contact Chianne Hewer.
To contribute to the ARA PAC, please click here.
q & a
Q + A
ARN: The Arizona restaurant industry is projected to register $11.5 billion in sales this year. How does our financial impact serve our state and economy? GOVERNOR: Simple. The more YOU succeed, the more ARIZONA succeeds. The Arizona restaurant industry affects the entire economy – whether it’s Arizona’s construction industry building a new restaurant, Arizona’s technology industry helping restaurants become more efficient, or Arizona’s agriculture industry providing your food – everything and everyone is interconnected. It’s our goal in the governor’s office to make Arizona the best climate for business and growth. The best thing you can do for Arizona is grow and thrive because that means Arizona will grow and thrive. ARN: Arizona’s minimum wage law is directly tied to our state’s consumer price index (CPI), which means it is raised every year when CPI increases. What would you want Arizonans to know about this model as it relates to the very labor-intensive restaurant industry? GOVERNOR: My focus is on creating more jobs, and fostering an environment where people have the opportunity to turn their jobs into careers. The service industry provides a great opportunity for workers to move up the ladder and increase their income.
with GOVERNOR Doug dUCEY
ARN: You were CEO of Cold Stone Creamery, so we know you understand our industry. What do you miss about being in the restaurant business? GOVERNOR: You get a lot of undeserved popularity selling ice cream. Things are a little more unpredictable in the governor’s office.
ARN: What skills learned from the restaurant industry did you bring to your new role as Arizona’s Governor?
GOVERNOR: We built Cold Stone Creamery from a few local stores into a worldwide brand. In my role as governor, selling the state and knowing the importance of branding is critical. Representing Arizona is my full-time job now, and I think my time at Cold Stone Creamery has prepared me well for it. Arizona needs someone who can sit down with CEOs from across the country and around the world and say “Arizona is what you’re looking for, and I know because I built a company here too.” That’s the kind of experience elected leaders with real world business experience can bring to the table.
ARN: The restaurant industry is also the hospitality industry. Our kitchens and chefs serve food daily to Arizonans and our tourists. What can be done about marketing Arizona as a great place to live and visit?
I’ve proposed a plan to put $2.2 billion in new money to education without raising taxes by increasing our distributions to K-12 education from the State Land Trust. This will give our schools the resources they need to take on reforms and improve their outcomes, leading to students will be better prepared for college, career, and life. ARN: You started a new project called Arizona Zanjeros. What do you want Arizona Restaurant Association members to know about this project and how can we help? GOVERNOR: The Zanjeros is a team of business leaders across Arizona working to help spread the word about our great state. Led by Cardinals President Michael Bidwell and Tucson Hispanic Chamber of Commerce President Lea Marquez Peterson, you’d be hard- pressed to find a group more knowledgeable about what it takes to not only run a business, but to bring more business here. The Zanjeros are going to help promote Arizona as the ideal place to live, work, play, recreate, visit, get an education and retire. And the best part is, anyone can be a Zanjero Ambassador. We all have a role to play in making this state the best it can be, and I encourage all Arizonans to get involved.
GOVERNOR: Tourism has become Arizona’s largest export, and is by far one of our most important economic drivers. More than 40 million people visited our state last year, generating nearly $21 billion in direct spending. That’s a significant increase in both visitors and revenue from
the previous year, and proof that tourism is a growing industry with no plans to slow down. We’ve been on the global stage a number of times this year, and hosting the most successful Super Bowl of all time elevated us to a whole new level. The world is taking notice of what Arizona’s all about – great weather, great views, great resorts, great restaurants and great people. That’s the message we’ll continue to market to the world. ARN: The Arizona restaurant industry is leading the country for industry job growth – expecting to add 65,000 jobs in the next decade. How can you help to ensure we will have the people to fill the jobs we are providing? GOVERNOR: Arizona has been ranked as having some of the best workforce in the country. We will continue to have the best workforce by supporting educational outcomes and maintaining our level of success in the classroom.
Your members can sign up to be an Ambassador at arizonazanjeros.com
ARN: What is your favorite meal?
GOVERNOR: I come from an Italian American family. So, my favorite meal is my mom’s sauce – Noni’s Secret Family Recipe.
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ARN: A vast majority of restaurant owners are simply small business owners with razor-thin margins of only 2-4%. What can elected officials do to ensure growth and success for our industry? SENATOR: For private businesses, I believe the government should first get out of the way. Businesses thrive with fewer regulations and red tape. Small business owners do best when they can innovate and grow their businesses their way. If we can provide any assistance, it is to make sure hard working business owners and their employees are taking home more money in their pockets and being required to pay less to the government in taxes and fees. ARN: Arizona’s culinary scene has dramatically grown in recent years as new trends and concepts are rising. In your opinion, how does our industry impact the state? SENATOR: The restaurant industry continues to make a huge impact on our economy and assists in the growth of our tourism industry. People come to Arizona and think about great restaurants and the residents who live here are making decisive choices about spending their dollars with the many culinary choices they have here in the Valley. The restaurant industry is thriving and has positively impacted our state.
with state Senator Kimberly Yee District 20
ARN: Do you like to cook?
SENATOR: Yes! I love to cook and find myself watching the Food Network channel all the time for new techniques and recipes. My husband and I have even enjoyed cooking lessons provided from our local Le Cordon Bleu Culinary School. ARN: You won the ARA Political Advocate of the Year Award for your outstanding efforts to advocate for our industry. What should ARA members know about the political process and how to truly make a difference? SENATOR: I was honored to receive the ARA Political Advocate of the Year award! The first and easiest step to being a part of the political process is voting. ARA does a great job on identifying bills that are important to the restaurant industry. I encourage your members to voice their support or opposition on legislation. Come to the State Capitol and tell us your story!
ARN: What made you run for office?
SENATOR: I felt I could make a difference. I represent the area in which I was born and raised, so I really felt we needed to have
ARN: Restaurants are challenged by many different political issues that are sometimes misunderstood by the public, such as wage-law, regulations, food costs, healthcare, and immigration. How can restaurateurs better tell our story to political leaders about the needs we face? SENATOR: Telling your personal story about how these important issues impact your businesses every day is so important when we have to make tough decisions on legislation. When we are in the process on voting on bills, there is an opportunity for ARA members to testify and share your personal experiences on these issues that impact your industry. This helps us as we consider our vote. Our doors are always open and we invite you to share with us your story!
someone in that elected position for whom we could count on and trust. I had previously worked for a couple of governors and other statewide elected officials, so I knew how the job was done and helped develop statewide policies for many years. Over time, several people had asked me to consider running for office. Then one day, it just seemed clear that the door was opening. When I was elected in 2010, I became the first Asian American woman to serve in Arizona’s State Legislature in the state’s history. ARN: The two biggest issues that you focus on are improving our education system and growing our state’s economy. How does the restaurant industry help with either topic? SENATOR: The restaurant industry helps our economy flourish and when we grow our state’s business sector, we grow in so many other areas of our state. That’s where education comes in and as the daughter of a retired public school teacher, I know how important our school programs are to creating a viable and educated work- force. I support vocational career preparation programs, particularly those that focus on the culinary arts, and I continue to advocate for these programs at the State Capitol. With a prepared and educated workforce, our restaurant industry can hire great employees and continue to make a positive impact on our state’s economy.
ARN: What is your favorite meal?
SENATOR: I love a good, hearty, traditional breakfast to start the day. I also love to splurge on unique dining experiences where the food tells a story and the chef is innovative and surprising. The most memorable dining experiences I have had are those where I have enjoyed every course served and then have the honor of meeting the chef who made the amazing food.
Q + A
ARN: Gilbert has added many great restaurants in a short amount of time. Why do you think this is? COUNCILMAN: The buzz is more about the downtown of Gilbert. Just a short 4 years ago, the executive team and town council put together a strategic plan focused on the revitalization of the downtown. That plan was then executed by the newly organized Town of Gilbert Economic Development team that led the way to the wonderful success we are experiencing in our downtown. We wanted to identify unique and Arizona based restaurants to be part of that plan that complimented our family focused community. ARN: How do busy restauranteurs find out when city policies will impact their business? COUNCILMAN: A lot of our efforts in creating great policies for our businesses are done collaboratively with our residents and business owners. We have been promoting a “One Team” culture between the Town and local businesses to focus on our mission to provide a “Clean, Safe and Vibrant” community. The Town of Gilbert Economic Development team has worked very closely with the Gilbert Chamber of Commerce and the Small Business Alliance with the spirit of collaboration. This is one way we encourage restaurateurs to possibly become members of one of these fine associations. Another way to find out when town policies will impact local business is to subscribe to the Town of Gilbert Economic Development newsletter by sending an email to
with Councilman Eddie Cook
town of gilbert
ARN: Why is Gilbert called ‘the Town of’ instead of ‘City of’?
COUNCILMAN: I look at it as a marketing advantage. We get to advertise as the largest “Town” in America. As large as the Town of Gilbert is today at nearly 240,000 residents, we maintain that small town look and feel that has attracted many families and businesses to Gilbert. We promote the Town of Gilbert as a “Clean, Safe and Vibrant” community. But for the technical reason the Town of Gilbert is not called the City of Gilbert is because we are not a charter municipality. The Arizona State Statute allows municipalities with a population greater than 3000 residences to become a charter city. Becoming a charter city allows additional powers and more local control that would benefit the community. I believe someday the Town of Gilbert will go down the road to become a charter city.
gateway into the business corridor for Gilbert. Rivulon is owned and developed by Nationwide Realty Investors. The project will have 3 million square feet of Class A office space and 500,000 square feet of retail and hotel space. Isagenix International will be moving their headquarters to Rivulon. LA Fitness is now operating at Rivulon. The restaurants just south of the 202 will benefit tremendously as this major project continues to grow. ARN: What do you want members of the Arizona Restaurant Association to know about the Town of Gilbert as a tourist destination? COUNCILMAN: Gilbert’s downtown known as the Heritage District is the buzz in the East Valley. That buzz is mostly generated from the wonderful restaurants that have found a home in our downtown. Their presence is creating a new legacy for Gilbert. It is exciting to see many families from Gilbert and neighboring communities coming to the downtown wanting to experience the fine dining provided by these wonderful restaurants.
email@example.com or visit the website at www.gilbertedi.com .
ARN: The restaurant industry employs 10% of Arizonans. We provide flexible jobs that turn into valuable and rewarding careers. How is Gilbert impacted by the jobs that we create? COUNCILMAN: This has an enormous impact to the Town of Gilbert. I could not be more excited to see the many restaurants deciding to open their doors in Gilbert. Part of our plan and goal as a town is to provide an environment to “Live, Work and Play”. The restaurant industry is a key component to that plan. ARN: Has Gilbert passed, or stopped, any legislation this year that directly impacts restaurants? COUNCILMAN: There has not been any legislation that the Town Council has passed or stopped this year that directly impacts restaurants. I’ve spoken with many of the new restaurant owners and general managers this year and all the feedback that I’ve received has been extremely positive as it relates to working with the Town of Gilbert.
ARN: What is your favorite meal?
ARN: What has Gilbert done recently to attract new business?
COUNCILMAN: I love eating Sushi. My mom is Japanese and I was born in Okinawa. I grew up eating my Mom’s delicious Sushi.
COUNCILMAN: The Town of Gilbert has a major commercial project currently being developed at the northeast corner of Gilbert Rd and the 202 freeway. The project is called Rivulon. This is a premier 250-acre mixed-use business park that we consider the
meet our members
ongoing challenge of it. Based on the constant flow of employees and customers, each day is different. The bottom line is, this industry defines the American Dream. It doesn’t matter who you are or where you come from, you can succeed in this industry.
meet our members
ARN: What is your favorite thing about being on the ARA Board of Directors?
ARN: Why did you get into the restaurant industry?
CHASE: My favorite thing about being on the ARA Board is meeting new people. It is an opportunity to meet and learn from an extremely diversified group of people representing every facet of the food industry. I am able to learn about areas of the business that I haven’t experienced from people have been doing it for years. It also gives me the chance to help others who are facing challenges that I’ve already seen or experienced. Often times, some of the best support we can give others is letting them realize they’re not alone in the issues and challenges they face ARN: What is the longest amount of time an employee has worked for you? CHASE: In my QSR side, I have several managers over 10 years, my supervisor is over 25 years. My salaried managers average over 10 years. Hourly employee average is just over two years. The diner opened in 1997. I have four employees there from opening day. We hired a new host this year. Aside from that, our newest employee has been there three years. Our newest cook has been with us 8 years.
CHASE: I started working in restaurants at any early age, doing dishes in a steak house. I stayed in it my entire life for several reasons. First, the opportunity to meet and interact with people is unsurpassed. The industry offers some unique opportunities for individuals. A food server in a restaurant is the most basic form of a small business owner. Basically, he or she is getting the opportunity to “rent” a section of the dining room. From that point, no one is telling them how much they can earn. It all comes down to the experience they provide. The other thing I love about the industry is the
Owner, Chase’s Diner & Taco Bell
ARA Board member
what I believe is great about the food industry. I learned government compliance from years of experience. Someone new to the industry faces a formidable task of learning everything required. The layers of regulations and compliance are detrimental to start ups in all fields, not just food. I believe these are areas we can positively impact. It has only been over the last four years that I’ve gotten involved on the local level. My focus before that was primarily the national level of politics. Any significant change takes time, but I have seen positive changes on the local level happen much more quickly versus the national level. You have to balance the two depending on the current issues, but right now, I see the ROI of my time and money being greater at the state/county level. CHASE: I think I’ve answered this in some of the previous questions, but the biggest impact is the unknown. We’re years into the ACA and we still don’t have a true idea of it’s impact. We don’t know the status year to year of programs like Section 179 for new equipment depreciation or even how long we can depreciate our buildings, 39 1/2 years or 15 years. The uncertainty of the impact of these programs inhibits expansion/development, and even reinvesting in our current assets. ARN: How do political issues impact your day-to-day?
ARN: What is one biggest challenge to running restaurants?
CHASE: The biggest challenges I see are getting and retaining the right people. Depending on what segment of the industry you work in, you could make a good argument that yours is the hardest to staff. QSR has the highest turnover from my experience, but it has the quickest learning curve. Casual or fine dining might not have as much turnover, but a new hire costs much more to train to become a key part of the team. I can have someone contributing within a week of hiring in a QSR environment, but at the diner, it takes a month or more before a cook is holding their own on a shift and fully contributing. As a restaurant becomes more specialized, this becomes a greater challenge. The other big challenge is governmental compliance. There are so many regulations, not just nationally, but from state to state and even municipalities. It’s like “Hurry up and learn, then wait.” Operators are put in the compromising position of trying to forecast the implementation of every piece of legislation, and each respective interpretation of it. ARN: Why do you offer your time, money and energy getting to understand politics? CHASE: I’ve been going back to DC every April for nearly ten years. My goal has been to meet with our federal representatives and try to educate them to the challenges the industry faces, as well as share
ARN: What do you want members of the Arizona Restaurant Association to know about its advocacy activities?
Try something new
CHASE: This is pretty reasonable logic. Whatever the costs to belong to the ARA, whatever someone chooses to contribute to a PAC, those costs shouldn’t be viewed as an expense, they should be viewed as an asset, a ROI. The work done by the ARA, and their accomplishments lead to line items savings that exceed the cost of membership. Seeming little victories like the verbiage on the unemployment claim’s response period will benefit every business at some point. CHASE: I’m a pretty simple meat and potatoes guy. One of my chefs in college said I’d never succeed in restaurants because I don’t eat any kind of seafood. A splurge for me is a prime steak, but I’m happy pursuing the next hamburger. A burger is as classic American as you can get, bur our industry has found a way to make a million varieties of it. And once again, getting to meet so many new people through the ARA has given me so many options. ARN: What is your favorite meal?
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the national restaurant association’s economic forecast
restaurants are a driving force in Arizona’s economy. Their sales generate tremendous tax revenues. They provide jobs and build careers for thousands of Arizonans. Restaurants also provide healthful options for their guests, give back to their communities and work to reduce their impact on the environment. Visit Restaurant.org for more information.
$11.5 billion in sales In 2015, Arizona’s restaurants are projected to register $11.5 billion in sales. EvEry $1 MIllIon spEnt … in Arizona’s restaurants generates an additional 23.5 jobs in the state.
In 2013, there were 9,024 eating and drinking places in Arizona.
In 2015, restaurants account for 273,200 jobs in Arizona — 10% of employment in the state.
EvEry $1 spEnt …
And In 2025 …
restaurants in Arizona are projected to employ 338,200 people. ( 23.8% job growth — or 65,000 jobs over 2015)
in Arizona’s restaurants generates an additional $.90 in sales for the state economy.
eating and dRinking places: establishments employees
8 Nevada 9 Montana 10 Georgia
in the state
in the state*
Jeff Flake (R) John McCain (R)
12 North carolina
R estaurant sales on the state and regional levels are highly influenced by local economic and demographic factors. Areas with positive population and employment growth also are likely to offer a favorable business climate for restaurants. While the overall U.S. economy posted steady improvement since the depths of the Great Recession, the pace of economic recovery varied dramati- cally on the state level. Although every state added jobs since national employment bottomed out in February 2010, only 30 states and the District of Columbia have more jobs than they did before the recession started (as of November 2014). In addition, jobless rates on the state level continued to vary widely as of November 2014 — from a paltry rate of 2.7 percent in North Dakota to rates in excess of 7 percent in Rhode Island, California, Georgia, Mississippi and the District of Columbia. Although regional growth will remain uneven in 2015, the NRA expects every state to post employment gains of at least 1 percent. This will household spending, while also ramp up consumers’ need for convenience that the restaurant industry provides. In 2015, the West South Central region is expected to lead the way with provide the disposable income necessary to support additional
restaurant sales growth of 4.4 percent, slightly above a projected 4.3 percent gain in the Mountain region. Sales growth in these regions will be driven largely by employment, income and population gains that are projected to be well above the national average in 2015. The South Atlantic (4.0 percent) and Pacific (3.9 percent) regions are also expected to register sales growth above the national average in 2015. On the state level, Arizona and Florida are expected to lead the way with restaurant sales growth of 4.9 percent in 2015, followed closely by North Dakota (4.8 percent) and Texas (4.8 percent). Colorado (4.3 percent), California (3.9 percent) and Utah (3.9 percent) are also projected to post above-average restaurant sales gains in 2015. California will continue to lead the nation with total restaurant sales volume of more than $72 billion in 2015, with Texas registering sales of $44.5 billion. Florida and New York are both expected to register restaurant sales of more than $35 billion in 2015. Note that the state sales and economic projections assume that there will be no significant negative shock to the economies of oil-producing states such as North Dakota and Texas as a result of low oil prices. If low oil prices result in sizable job losses within these states, the business environment for restaurants would likely suffer.
eating and dRinking places: establishments employees
2015 RESTAURANT sALes VoLuMe ($000) 1 california $72,343,180 2 Texas $44,529,277 3 Florida $36,353,643 4 New York $35,827,362 5 Illinois $23,023,493 6 Pennsylvania $18,786,599 7 ohio $18,278,342 8 Georgia $17,111,276 9 North carolina $16,505,980 10 New Jersey $15,034,186 11 Virginia $14,784,427 12 Michigan $13,880,850
in the state
in the state*
1 Ann Kirkpatrick (D) 2 Martha McSally (R) 3 Raúl M. Grijalva (D) 4 Paul A. Gosar (R)
976 1,118 696 945 742
5 Matt Salmon (R)
6 David Schweikert (R)
34,308 25,274 14,604 24,838
7 Ruben Gallego (D)
8 Trent Franks (R)
9 Kyrsten Sinema (D)
*Arizona’s 196,500 eating-and-drinking-place jobs represent the majority of the state’s total restaurant and foodservice workforce of 273,200 jobs, with the remainder being non-restaurant foodservice positions.
National Restaurant Association | Restaurant.org/Forecast
restaurant.org | AZrestaurant.org
More than 40.7 visitors experienced Arizona as travel destination in 2014 generating 20.9 billion. million
Direct visitor spending generated
in restaurant business 5 billion
The joint-employer standard will also be put to the test in the pending Browning-Ferris case before the NLRB. The NLRB in that case asked for briefs on whether the NLRB should obey the legally established joint-employer standard or create a new one. Even the NLRB general counsel recently acknowledged that he could face long legal odds in trying to return the standard to its pre-1984 version. The franchise model is coming under attack in other venues as well: Seattle’s minimum wage law, for example, punishes franchise operators by forcing them to increase their wages at a higher rate than non-franchised restaurants.
A long-held standard for determining the “joint-employer” status of franchisors and franchisees is under attack. The National Labor Relations Board is moving to under- cut the standard that has been the bedrock of the franchisor/franchisee model for the last three decades, in support of labor unions and their worker-center allies who are using this issue as part of a large effort to bolster union membership. The National Labor Relations Board in December authorized complaints against McDonald’s franchisees and McDonald’s USA LLC to proceed as alleged joint employers on pending unfair labor practice charges — even though McDonald’s USA LLC does not control labor relations at its franchised stores. STATUS
The 114th Congress is likely to even more closely scrutinize the NLRB.
NATIONAL RESTAURANT ASSOCIATION POSITION: WWW.RESTAURANT.ORG/ADVOCACY/UNION-ORGANIZING
FDA TO BEGIN ENFORCEMENT OF Menu and Menu Board Labeling Rules: WHAT DOES IT MEAN FOR GROWING RESTAURANTS SYSTEMS?
under the same name – whether under common ownership or franchised – who offer substantially similar “restaurant-type food”, will be required by law as of Dec. 1 to disclose specific nutritional information about the food items offered. While the law was passed in 2010 and certain restaurants have already voluntarily complied, the Food and Drug Administration has announced that it will begin enforcing the new rules on Dec. 1, 2016.
In March, the FDA published a guidance memorandum to restaurant owners, franchisors and franchisees as a roadmap to comply with the new rules though many industry professionals are still wrestling with questions. Here are a few key aspects of the new rules, including who they will impact and how to incorporate the rules into day-to-day business.
An often overlooked section of the Patient Protection and Affordable Care Act is Menu Labeling, yet restaurateurs need to read the fine print. Restaurants with 20 or more locations nationwide doing business
WHO IS SUBJECT TO THE NEW RULE?
By definition, a “covered establishment” subject to the new rules is a restaurant or similar retail food establishment that sells restaurant- type food as part of a chain with 20 or more locations doing business under the same name, which offers for sale substantially the same restaurant-type food items. The FDA identifies bakeries, cafeterias, coffee shops, convenience stores, delicatessens, food
WHAT NEEDS TO BE DISCLOSED ON MENUS OR MENU BOARDS?
service facilities located within entertainment venues, food service vendors, food takeout and/or delivery establishments, grocery stores, retail confectionery stores, superstores, quick service restaurants and table service restaurants as covered establishments although that list is not intended to be exhaustive.
There are general format requirements for declaring calories on menus and menu boards. Restaurant owners and operators utilizing menus or menu boards must declare the number of calories (in five calorie increments) contained in each standard menu item listed on the menu or menu board and provide specific statements about the significance of the information provided and the availability of additional nutritional information upon request. There are also specific rules regarding the disclosure of calories of variable menu items, added toppings on standard menu items, and items sold from vending machines. Restaurant operators will also be required, upon request, to verify the nutritional information provided.
WHAT TYPE OF FOOD PRODUCTS ARE SUBJECT TO THE NEW RULE?
The rule applies to menu items (including combination meals) that are routinely included on a menu or menu board or offered as a self-service food or food on display. While not exhaustive, the types of food items identified as restaurant-type food by the FDA includes food for immediate consumption, food purchased at a drive-thru, take-out and delivery pizza, hot buffet foods, self-service foods, foods on display that are intended for individual consumption, and alcoholic beverages served as standard menu items at covered establishments.
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WHAT TYPE OF FOOD PRODUCTS ARE NOT SUBJECT TO THE NEW RULE?
FTC & State Compliance
Mergers & Acquisitions
The rules do not apply to condiments, daily specials, temporary menu items, custom orders, food that is part of a market test and self-service food and food on display that is offered for sale for less than a total of 60 days per calendar year or fewer than 90 consecutive days in order to test consumer acceptance.
40 hours is full time The Affordable Care Act needs a check-up, the National Restaurant Association and American Hotel & Lodging Association said in
Any covered food sold by a covered establishment without proper calorie or nutritional declarations or disclosures is considered misbranded under the Food, Drug and Cosmetic Act. This can result in the FDA bringing enforcement actions to seek injunctive relief, penalties and other relief. In addition, even though there is no private cause of action in the new rule, restaurateurs should beware that opportunistic class action litigation may be an unintended consequence of the new rules against those covered establishments who fail to fully comply with the new rules or that fail to provide complete and accurate labeling information. If you own a chain of restaurants, run a franchise restaurant system with 20 or more locations, or operate one or more restaurants in a chain of 20 or more, you will be obligated to comply with these new rules by Dec. 1. If you are a developmental stage restaurant concept, compliance with the rules must be incorporated into your growth, marketing, and brand strategies as compliance will be required once you reach 20 locations. While some restaurant systems with less than 20 establishments will voluntarily comply with the new rules, it is important that covered establishments take steps to protect your business by complying with the intricacies of these new menu-labeling rules in advance of the new rules taking effect later this year. INCORPORATING THE NEW RULE INTO YOUR GROWTH PLAN
a joint op-ed .
One top concern: The health care law defines full-time as 30 hours a week.
“The ACA changed the definition of a full-time employee from
someone who works the traditional 40-hour workweek to anyone
who works 30 hours a week,” NRA President & CEO Dawn Sweeney
and AH&LA President & CEO Katherine Lugar write in The Hill .
“Instead of benefiting workers, this provision is actually harming
them ... Businesses of all sizes are having to reduce the hours of
workers who had been working 40 hours a week.”
The ACA’s full-time definition affects which businesses are considered
large employers, and which employees must be offered health
coverage. The law exposes large employers to possible fines if they
don’t offer health plans to full-time employees and their dependents.
The ACA’s so-called “employer mandate” covers businesses with the
equivalent of 100 full-time employees this year, and employers with
50 to 99 full-time-equivalent employees starting in 2016.