I NSP I RAT ION FOR TRANSFORMI NG THE BUS I NESS OF FOOD
Pairing Beer with Spring & Summer Foods
ARIZONA LEGISLATIVE RECAP
RESTAURANT INDUSTRY ADDED NEARLY 14k locations IN 2018
THE MAGAZ I NE OF THE AR I ZONA RESTAURANT ASSOC I AT ION
This issue of Arizona Restaurant News provides an overview of the 2019 Legislative Session, some local places & markers, and provides technology and security tips to keep you thriving through the summer.
I 4 features
ARIZONA LEGISLATIVE RECAP
4 2 PAIRING BEER WITH SPRING AND SUMMER FOODS
5 8 RESTAURANT INDUSTRY ADDED NEARLY 14K LOCATIONS IN 2018
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.
PAIRING BEER WITH SPRING AND SUMMER FOODS
what 5 8
PALEO, KETO, GLUTEN-FREE: MARKETING TO HEALTH ‘TRIBES’
RESTAURANT INDUSTRY ADDED NEARLY 14K LOCATIONS IN 2018
6 4 6 5
REMAINING 2019 ARA EVENTS
UPCOMING SERVE SAFE CLASSES
THIS IS THE PLACE I WAS TELLING YOU ABOUT: ARIZONA’S PREEMINENT PIZZA ‘PEDALER’
Learn from the best with this business know-how guide filled with ideas, tips and resources.
RESEARCH CHIEF HUDSON RIEHLE OFFERS STATE OF THE INDUSTRY
4 RESTAURANT TECH TRENDS TO WATCH IN 2019
HENSLEY BEVERAGE AND CULT ARTISAN BEVERAGE
TOP 5 COMMON 401(K) ADMINISTRATION ERRORS BY RESTAURANTS
WHAT YOU NEED TO KNOW ABOUT CHIP CARDS
MEET THE MAKER: ATSUO SAKUAI OF ARIZONA SAKE
President & CEO Steve Chucri
Membership, Vice-President Jana Shelton
5.6 % ALCOHOL BY VOL. 16 OZ.
Chief Operating Officer Dan Bogert
ProStart & Education Foundation, Manager Paula Bugg
2019 Media Kit 3333 E Camelback Road, Suite 285 Phoenix, AZ 85018 P 602.307.9134 F 602.307.9139 azrestaurant.org
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The Restaurant industry has always been one of innovation but has also been slow to adopt new technology. However, in the past two years we have seen this trend slowly erode given a low unemployment rate, higher minimum wages and other labor restricting laws that are reducing the potential labor pool for restaurants. In fact, in March there were over 929,000 unfilled job openings in the accommodation and food service sector.
Embracing technology can help restaurants gain protection from liability, increase productivity, decrease staff training time, and enhance customer experiences. On the liability front, companies have developed cloud-based payment systems
The Restaurant industry has always been one of innovation but has also been slow to adopt new technology. fff
integrated with mobile ordering and payment terminals, POS systems, kiosks, and payment processors that use end-to-end tokenization to protect restaurants from any liability of a potential breach.
As we all know, youth workers have played a key roll in filling these entry-level jobs. Unfortunately, this workforce is declining with just 19% of 15 to 17-year-olds holding a job in 2018 and 58 percent of 18 to 21-year-olds. In 2002 these same age groups posted employment rates of 30 percent and 72 percent respectively. A temporary solution some restaurants have found, especially in the QSR space, is to target older workers in their retirement years. As the Baby Boomer generation continues to age out of the workforce, this labor pool will become a decreasingly reliable source. The contracting labor pool exacerbated by the generational squeeze are leading many restaurants to turn to technology to fill the gap. Consumers, too, are growing more comfortable with technology in the restaurant space. 63% of consumers indicate that computer tablets for ordering and paying at the table are a good idea, and 59% indicate that wearable technology for staff is a good idea. However, not all technology is accepted by consumers, only 14% believe that robots preparing food is a good idea and only 22% believe that having food delivered by a robot or self-driving car is a good idea.
Wearable technology is also making its way into the kitchen with augmented reality smart glasses that have numerous applications. These types of technologies can help automate staff training and reduce peer-to-peer training hours, gather data on staff efficiencies for better assignment of duties, and track workload. Staff may not be the only ones using wearable technologies. Companies are currently developing a series of augmented and virtual reality devices for use by consumers in the restaurant space that when combined with selected scents and temperature controls, can alter your senses to trigger a desired emotion and enhanced food experience. Regardless of the application, technology will play an ever-growing role in our industry. While the food service industry has been slow to adopt new innovations or inspire new inventions, this trend has
reversed. The growing cost and the decreasing availability of labor means these technologies will continue to grow in importance.
Steve Chucri President & CEO, Arizona Restaurant Association
message from chairman
As we transition from high season to the slower months of summer,
Feature Opportunities continue to abound in Arizona. Maricopa County remains the fastest growing county in the US and the economy here is doing very well. The Arizona culinary scene is starting to get serious national attention, along with Arizona being an increasingly popular travel destination. The ARA is here to promote and contribute to your success and to that of our industry. Kindly, Joe Johnston Joe Johnston pays big dividends for the industry. In this issue, Dan Bogert recaps the legislative session that has just drawn to a close.
we reflect on both the challenges and opportunities in the restaurant industry. Our seasonal challenge is to re-evaluate labor schedules and other variable costs to make sure that we match them to reductions in sales. In our restaurants, we make the bulk of our profits over the 20 or so high-volume weeks each year and then try to breakeven or run a slight profit the rest of the time. This requires diligent cost control. In this issue, we discuss some practical ways to contain costs. A continuing challenge is the current environment of regulation and labor laws. One of the main things the ARA does is to be an active voice in the process of law making in this state. Our Government Affairs team always has your needs in mind as the legislation is drafted, supported or opposed. It is an incredibly complex system that requires an intricate knowledge of the process to have any real impact. If you’d like to be more involved in this arena, always be sure to tell us what issues are of concern to you. We take each one seriously. Furthermore, your financial support of the ARA Political Action Committee (PAC) is something that
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PLANS ARE NOT AVAILABLE TO MEMBER EMPLOYERS IN ALL STATES. Some restrictions and exclusions apply. Discounts are available only to members of the National Restaurant Association and its state restaurant association partners; and may vary by location and group size. The Restaurant & Hospitality Association Benefit Trust is not available in all states. Insurance coverage provided by or through UnitedHealthcare Insurance Company, UnitedHealthcare Insurance Company of Illinois, Inc. or their affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan
Every day, the business of Washington happens at our t 15
ARA Government Affairs The laws and regulations passed by a city, county, state, and the Federal Government have a major impact on your business and your day-to-day operations. New laws, fees, taxes, regulations, and enforcement priorities can drastically alter your business model and even your profitability. It is vital that Arizona’s Restaurant Industry have a strong voice when lawmakers are debating these items. Your ARA government affairs team is that voice for you, your colleagues, and your employees. Arizona Legislature with both chambers gaining new leadership teams and the Arizona House of Representatives experiencing the narrowest majority in over a decade. In the House, the GOP saw their majority shrink from 35-25 to 31-29. The Senate did not see any changes in majority and the GOP maintained their 17-13 majority. With new elections brought new leadership to both Chambers. In the Senate, Sen. Fann was elected as President. Only in her second term as a Senator, Mrs. Fann has the possibility of serving for six consecutive years as President if she is able to 54th Legislature – First Regular Session: The 2018 election saw a drastic shift in the
hold onto the majority. Sen. Rick Gray, who was appointed to his seat last year, was elected as Majority Leader. Sen. Sonny Borrelli was selected as the Majority Whip and Sen. Eddie Farnsworth was appointed as the President Pro Tempore. On the minority side, Sen. David Bardley was selected to lead the Democrats as Minority Leader. Sen. Lupe Contreras retained his position as Assistant Minority Leader and the caucus selected two minority whips in Sen. Lisa Otondo and Sen. Jamescita Peshlakai. With the exception of Sen. Contreras, none of the members of the new leadership teams held leadership positions in the previous legislature. In the House, Rep. Rusty Bowers was chosen as the new Speaker of the House with little opposition. Rep. Warren Petersen, who returned to the House after spending one term in the Senate, was selected as Majority Leader. Rep. Becky Nutt was elected as Majority Whip. Rep. TJ Shope retained his position was Speaker Pro Tempore for another session. Rep. Charlene Fernandez, who served last session as the Minority Whip, was selected as the Minority Leader by the Democratic Caucus. Rep. Randall Friese retained his position as Assistant Minority Leader. The Caucus selected two minority whips with their selection of Rep. Reginald Bolding and Rep. Athena Salman. With two brand-new leadership teams and a thinner majority, the Legislature was poised for a contentious session.
Arizona House of Representatives
Speaker of the House Rusty Bowers Legislative District 25
President of the Senate Karen Fann Legisaltive District 1
Minority Whips Lisa Otondo (LD-4) & Jamescita Peshlakai (LD-7)
Republican Members Sylvia Allen (LD-6) Kate Brophy McGee (LD-28) David Farnsworth (LD-16) Sine Kerr (LD-13) Paul Boyer (LD-20) Heather Carter (LD-15) David Gowan (LD-14) Vince Leach (LD-11) David Livingston (LD-22) J.D. Mesnard (LD-17) Tyler Pace (LD-25) Frank Pratt (LD-8) Michelle Ugenti-Rita (LD-23)
Democrat Members Lela Alston (LD-24) Sean Bowie (LD-18)
Richard Andrade (LD-29) Kelli Butler (LD-28) César Chávez (LD-29) Kirsten Engel (LD-10) Diego Espinoza (LD-19)
Isela Blanc (LD-26) Andres Cano (LD-3)
John Allen (LD-15) Leo Biasiucci (LD-5)
Nancy Barto (LD-15
Walter Blackman (LD-6) Noel Campbell (LD-1) Regina Cobb (LD-5) Tim Dunn (LD-13) Mark Finchem (LD-11) Gail Griffin (LD-14) Anthony Kern (LD-20) Joanne Osborne (LD-13) Steve Pierce (LD-1) appointed
Domingo De Grazia (LD-10)
Shawnna Bolick (LD-20) Frank Carroll (LD-22) David Cook (LD-8) John Fillmore (LD-16) Travis Grantham (LD-12) John Kavanagh (LD-23) Jay Lawrence (LD-23
Andrea Delassandro (LD-2) Sally Ann Gonzales (LD-3) Juan Mendez (LD-26) Tony Navarrete (LD-30) Martin Quezada (LD-29)
Mitzi Epstein (LD-18)
Rosanna Gab-aldón (LD-2) Alma Hernan-dez (LD-3 Daniel Hernan-dez (LD-2) Jennifer Jermaine (LD-18) Aaron Lieberman (LD-28) Jennifer Longdon (LD-24) Robert Meza (LD-30) Jennifer Pawlik (LD-17) Geraldine Pe-ten (LD-4) Pamela Powers Hannley (LD-9) Diego Rodriguez (LD-27) Amish Shah (LD-24 Lorenzo Sierra (LD-19) Arlando Teller (LD-7) Raquel Terán (LD-30) Myron Tsosie (LD-7)
Rebecca Rios (LD-27) Victoria Steele (LD-9)
Kevin Payne (LD-21) Tony Rivero (LD-21)
Bret Roberts (LD-11)
David Stringer (LD-1) Resigned 3/27
Bob Thorpe (LD-6)
Ben Toma (LD-22) Michelle Udall (LD-25)
Kelly Townsend (LD-6) Jeff Weninger (LD-17)
On January 14, 2019, Governor Doug Ducey Opened the 54th Legislature with his State of the State Address. Governor Ducey laid out his policy agenda for the upcoming session, including:
In support of his policy Agenda, the Governor released his budget recommendations a week later calling for $11.4 billion in spending and a deposit of $542 million into the “Rainy Day” fund.
ARA Legislative Engagement
Each year, the Arizona Restaurant Association (ARA) Government Affairs Committee (GAC) brings forward a set a issues for the Legislature to address. In addition to this proactive legislation, the GAC also analyzes and recommends positions on other legislation throughout the Legislative Session. During the 2019 Legislative Session, 1318 bills were introduced, 331 passed out of the legislature, and only 320 were signed into law. Of the 1318 bills introduced, the ARA tracked and analyzed over 600 with a restaurant or hospitality nexus and actively engaged 22 bills. Throughout this process the GAC was instrumental in helping to identify harmful and helpful legislation. HB 2360 TPT; estimated payments; liability threshold (Toma) – increases the annual sales tax liability threshold which triggers a business into the requirement to file an estimated transaction privilege tax payment in June. The threshold is increased from $1 million in annual sales tax liability in current law to $1.6 million in 2020, $2.3 million in ARA Sponsored Bills: •
• Passing the Drought Contingency Plan • Prioritizing future protections for water • Repealing unnecessary laws (Legislative Immunity) • Implementing his school safety plan • Protecting the 20% teacher pay raise • Expanding the Arizona Teachers Academy • Expanding access to Career and Technical Education • Deregulation of professions • Supporting job programs for released inmates • Increase the Rainy-Day fund to $1 billion
Governor Ducey placed extra emphasis on removing unnecessary regulations and laws, stating:
“We’ve gotten government out of the way of job creation, cutting red tape and placing a moratorium on new regulations. In fact, we’ve eliminated over 1,000 regulations. Imagine if we took that same approach this legislative session regarding law. We’re not short on laws here in our state. Over 107 years we’ve built up a heaty 11,000 plus pages.”
2021, $3.1 million in 2022, and $4.1 million in 2023. ——HB 2360 was included in the budget and was signed into law on June 7th.
who are employed on a part-time basis and are enrolled as a full-time student.——HB 2523 pass out of the House but stalled in the Senate rules committee over constitutional concerns. HB 2430 food establishment license; county reciprocity (Thorpe) – this bill would have created a new classification of licensed food establishment and would have exempted them from normal food code oversight through the county while passing on the cost of inspections to other restaurants.—the ARA worked with the sponsor, Rep. Thrope who agreed to hold the bill over our concerns. • HB 2636 mobile food vendors; municipalities (Payne) – would have made several changes to statute related mobile food vendors related to private property rights. The purpose of the bill was to override a law in Phoenix governing when a mobile food vendor is allowed to operate in neighborhoods that was a compromise law dating back several years. With the food truck community split and the consequences of such a change not fully understood, the ARA opposed this legislation.——HB 2636 failed in the Senate. ARA Opposed Bills: •
HB2178 milk manufacturing license; exemption (Weninger) – removes most restaurant operations from the duplicative regulatory structure under the Department of Agriculture for
the purposes of ice cream manufacturing .——HB 2178 passed out of both Chambers with a unanimous vote and was signed into law by Governor Ducey on April 1, 2019.
• HB 2281 liquor omnibus (Weninger) – makes various changes to liquor licenses and control, but specifically, for the ARA it fixes a discrepancy between administrative rules and departmental practices when dealing with BYOB exempt restaurants.——HB 2281 passed out of both chambers and was signed into law on April 26.
ARA Supported Bills: •
HB2523 youth employment (Grantham) – authorizes employers to pay a wage equal to or greater than the federal minimum wage to employees under 22 years of age
• HB2357 electronic smoking devices (Carter) – would have added electronic smoking devices and/or vaping to the definition of “smoking” for the purposes of the Smoke-Free Arizona Act. This would effectively ban all vaping in restaurants and other places of public accommodation. The ARA took the position that is it better to allow restaurant owners and operators the ability to decide if they want to • HB 2473 state liquor board; membership (Kern) – would have required that one of the seven members of the State Liquor Board represent a municipality and that individual be nominated by the League of Arizona Cities and Towns.—— HB 2473 was vetoed by the Governor. In his veto message, Governor Ducey stated “This bill adds an extra step to the nomination of one of the seven seats on the State Liquor Board, resulting in inconsistencies in the selection process and creating a new, burdensome hurdle for appointment. We should be focused on reducing red tape, not addition to it. • SCR 1001 education; TPT; use tax (Allen, S.) – would have increased the education sales tax from 0.6% to 1% and placed the tax in the Arizona Constitution. By placing it in the Constitution, SCR 1001 would prohibit the Legislature form making any changes to the tax rate. Because of this, the ARA opposed the increased tax. ——SCR 1001 failed to pass out of the Senate. allow that activity.——HB 2357 failed to pass after a conference committee amendment was added.
Upcoming Political Dates: • August 27, 2019 : • General Effective Date (for bills passed this session) • Primary Election for City of Tucson Mayor and City Council • City of Phoenix ballot measure election
• November 5 – City of Tucson Runoff Election
• January 13, 2020 – First Day of the 54th Legislature, 2nd Regular Session
• March 17, 2020 – Presidential Preference Election
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T h i s i s t h e p l a c e I was about Telling You
So all you really need to know about Pizzicletta, in Flagstaff, is that folks regularly drive 2 1 / 2 hours from Phoenix to eat pizza there. Pizzicletta owner Caleb Schiff doesn’t have a James Beard Award. He didn’t even go to culinary school. He’s a geologist who taught himself to make pizza by trial and error, after taking a 1,600-mile bicycle tour through Italy and then building a pizza oven in his backyard. He never intended to open a restaurant, but Pizzicletta—the name is a play on bicicletta , the Italian word for bicycle—has been going strong since 2011, and the soft-spoken Schiff is now a local celebrity in Flagstaff. In this episode, Schiff gives a pair of his cycling buddies a taste of Flagstaff’s spirited culinary scene—a scene he helped elevate in a mountain town better known for hiking, star-gazing and high-altitude training. Feature
ARIZONA’S PREEMINENT PIZZA ‘PEDALER’
A few years ago, much to the shock of New Yorkers and Chicagoans, readers of Travel + Leisure magazine picked Phoenix as the best city for pizza in America. As the story goes, pizzaiolo Chris Bianco—winner of the James Beard Award and pizza maker to the stars—raised the bar so high in Phoenix, it lifted the quality of pizza across the city, turning it into a place of pilgrimage for pizza lovers.
In this episode:
About the Author: Expedition Foodie AZ’s authors interview chefs, servers, bartenders, brewmasters and winemakers to uncover Arizona’s best-kept dining secrets. Have a tip? We’d like to hear it. Visit us on Facebook or Instagram to say: “This is the place I was telling you about …”
by Expedition Foodie AZ
hensley & cult artisan beverage
In The News
Hensley & cult artisan beverage
MADE IN ARIZONA
Hensley Beverage Company and CULT Artisan Beverage Company have forged a dynamic distribution partnership for the state of Arizona. Hensley, a multi-generational family- owned business founded in 1955 in Phoenix, and CULT also a family-owned Arizona business founded in 1997 in Scottsdale, will be working to reach all of Arizona. Hensley will be marketing and distributing CULT’s entire offering of Nitrogen Infused coffees and Botanical beverages in kegs and, their recently launched Cold Brew Coffee in cans! Both Hensley Beverage and CULT Artisan Beverage Co. are excited about the value the joint effort will bring to the vast Arizona craft beverage community. Hensley’s long-time expertise in marketing and distribution with CULT’s coffee products are sure to make this a power union, certain to bring smiles and satisfied pallets across Arizona.
The CULT crew is proud to introduce our amazing new COLD BREW COFFEE in cans.
I LOVE CULT.COM
brush title tbd altuo sakuai of arizona sake
Atsuo Sakuai of Arizona Sake meet the maker
By Iain Lundy
Iain Lundy spent 40 years as a newspaper and magazine journalist in his native Scotland. Now relocated to Arizona, he works as a content writer and editor. He enjoys the great outdoors, family history and, like a true Scot, good beer and a fine malt whisky. There are certain crafts that require an artisanal touch and an experienced set of skills. In our “Meet the Maker” series, we dive into the worlds of Arizona’s most skilled culinary artisans. This article takes us to Holbrook to meet Atsuo Sakurai of Arizona Sake . Yokohama, Japan and Holbrook, Arizona. Two destinations with nothing in common. Yokohama, with a population of 3.7 million, is a bustling port city on the Pacific Rim. Holbrook is a quiet town on Route 66, home to 5,000 people at last count. But now the places are linked in a way no one ever imagined. All thanks to a Japanese maker named Atsuo Sakurai.
Yokohama native Sakurai settled in Holbrook in 2014 and began making his native country’s most well-known beverage— sake , or Japanese rice wine—out of a garage. Not only has he seen huge success (chefs, restaurateurs and distributors snatch up Sakurai’s sake as fast as he can bottle it), but he’s received some of the highest honors in the Japanese sake world. Case in point: In 2018, Sakurai’s product, Arizona Sake, was awarded the title “World’s Best Sake Made Outside Japan” at Tokyo’s Sake Competition. Incredibly, Sakurai had only received his license in January of 2017; Arizona Sake won the award within 18 months of its existence. Sakurai also received a special commendation from Arizona Governor Doug Ducey, making him the first Japanese person to receive the honor. Local and national media have featured Sakurai , including a recent segment on National Public Radio. WHY HOLBROOK? Sakurai brewed sake in Japan for 10 years while dreaming of starting his own sake business. “I was looking for an opportunity, but in Japan, they are very strict,” he explains. “They don’t issue new licenses to new people. If you have a million dollars, you can purchase a business, but I didn’t have a million dollars. I needed to start my business from scratch.”
Sakurai’s wife, Heather, hails from Holbrook. The couple met while she was teaching English in Japan. Because starting a company in Japan was near impossible, Sakurai and his wife moved to Seattle, but after a few start-up attempts, the couple found they didn’t have enough money to launch a business and afford to live. They moved to Holbrook in 2014. “Everybody asks me, why Holbrook?” Sakurai says. “From a distribution point of view, it’s horrible. Every big market is far from here.” But Holbrook offers certain advantages for sake making. Sakurai says the region’s cold, dry temperatures help with the fermentation process by keeping out moisture and all the bad stuff it brings with it—germs and fungus, for example. THE SCIENCE OF SAKE Sakurai makes his junmai ginjo sake in small batches out of his garage, where he produces 50 gallons at a time. He uses
traditional ingredients like rice, yeast, water—specifically, Arizona water—and a (good) fungus called koji . He attributes the flavor of his sake to the fact it’s unfiltered and unpasteurized, giving it a pure taste. But the recipe is a secret.
“All I can tell you is that it is made with passion,” he says.
In the garage, the tanks are filled with fermenting sake, giving off a fruity aroma reminiscent of apples and bananas. After three weeks of fermenting and filtration, the sake is bottled and labeled, and several hundred are ready for delivery. Each month, Sakurai loads up his pickup truck with the bottles and drives to Phoenix, Tucson, Flagstaff and other markets. “I’m driving for a week or two weeks,” he explains. “I have no delivery driver. I want to meet people in person. That’s the fun part. When you actually see someone in person, that makes the business work.” Sakurai hopes to expand Arizona Sake, not only outside of the state but also outside of the country. But getting to that point takes time—Sakurai needs to find a distributor and an importer, and research the tax and customs processes. For now, expanding his business locally is a way to give back to the community.
“My dream is that no matter how big or small my business is, I want to build friendships,” he says.
WHERE TO FIND ARIZONA SAKE (RESTAURANTS)
Fujiya Market (Tempe)
Glai Baan (Phoenix)
LIKE HAVINGYOUR OWN DIGITAL SOUS CHEF.
Hidden Track Bottle Shop (Phoenix)
Hot Noodles Cold Sake (Scottsdale)
La Grande Orange (Phoenix)
Nobuo at Teeter House (Phoenix)
Roka Akor (Scottsdale)
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brush title tbd pairing beer with spring & summer foods
Pairing Beer with Spring & Summer Foods
To help lure guests indoors when the weather heats up, operators are offering innovative foods and beverages that pair well together.
Milwaukee restaurant Odd Duck recently opened an event space called Little Duck Kitchen, where it hosts a beverage- and-snack pairing series called Quack Snacks on the first Monday of each month. For April 1 the theme was Big Beers & Bar Food. “We are pouring beers that are bottled in large-format wine-size bottles by the glass and pairing them with decadent bar food,” says Melissa Buchholz, Odd Duck owner. One example of a decadent bar food and beer pairing was Foie Gras Poutine with french fries, foie gras gravy, cheese curds and seared foie gras, paired with The Bruery’s Rueuze Sour Blonde Ale from California. “The high acid and fruity dryness of this beer cuts right through the fatty richness of the poutine,” Buchholz says.
That means more than a pale beer and a salad, as today’s consumers are also seeking variety and bold flavors.
For the spring and summer months, operators have devised food and beer pairings that accentuate the flavors of both
Drive traffic on slow days of the week
Mondays tend to be slow days, so to boost traffic, Moxie Kitchen + Cocktails in Jacksonville, Fla., features a Burger + Bourbon or Beer promotion. For $10, diners can choose a 4-ounce, house-ground Moxie Burger with lemon-herb french fries, and one of seven rotating local draft beers on tap, or Four Roses Yellow Label Bourbon. To encourage guests to taste some local drafts, the restaurant also offers beer flights, and pairs them with $5 Happy Hour Bar Bites, which include:
Housemade pimento cheese toast
Cheddar biscuit tots
Bloomin’ Brussels sprouts
Lemon-herb french fries
Highlight the season with fruits and vegetables Citrus is a popular flavor for summer in food and in beer. At Taxman Brewing Company, with locations in the Indianapolis area, spring and summer beers focus on citrus, berries and brighter hops. One of Taxman’s most popular spring beers is Margarita-style Spin-Off, which is a crisp and tart house kettle sour featuring lime, lemon and orange peel, a pinch of salt and the subtle note of tequila barrels. Also popular during the summer are house beers like Wit-Held, a Belgian wheat beer, and Exemption, a Belgian-style tripel, or strong pale ale. “They’re fresh, citrus-forward and easy on the palate as we head into warmer temperatures,” says Leah Huelsebusch, co-owner. These pair well with the Belgian frites, which are double-fried and served with two sauces.
Suggest specific pairings The key to these sales is training servers to make specific recommendations. “They don’t come to the table and say, ‘Do you want a nice, cold beer,’” says Andy LiButti, co-owner of Booty’s Wings Burgers & Beer, with locations in Surprise and Buckeye, Ariz. “They say, ‘How about a nice cold Shock Top [Belgian style wheat ale] to go with your mac and cheese bites or mushroom buttons,” Whether it’s an innovative pairing of a bold-flavored menu item with a new local beer, or a recommendation to order a seasonal craft beer with a popular spring and summer menu item, beer and food pairings are a great way to get people to come indoors or enjoy on your outdoor patio. Watch Michael Roper, Founder and Owner of Hopleaf in Chicago, explain the importance of food and beer pairings and the difference it could make for your operation.
We serve all 50 states and over 30 countries around the world! Taking Cooling Further
Our insulated panels are a prefabricated modular construction designed for fast and easy field assembly, relocation and future expansion with the addition of like panels. Outdoor Walk-ins will include a heavy-duty one-piece membrane roof cap for protection against all weather conditions. Panels consist of interior and exterior metal skins precisely formed with steel dies and roll-forming equipment rigorously checked with gauges for precision. The metal skins are bonded firmly and permanently to the insulation. High-density panels have incredible flexural strength that eliminates the need for perimeter wood framing (old style construction) still used by some of our competitors. Cooler and Freezer Warehouses: The constant addition of new products and package sizes continue to create a demand for high volume beverage Walk-ins and Beer Caves. American Walk In Coolers with our modular designed panel construction offers flexibility in length, depth and height to fit any space requirement, giving you unlimited design possibilities. Built with our leading product line of glass doors and refrigeration equipment combined with our modular construction makes AWIC the highest quality Display Coolers/Freezers in the industry. The unique Cam Lock ceiling technology will make installation fast and inexpensive. Let our experienced staff help you design the perfect walk-in from concept to installation. Display Coolers and Freezers with Endless Possibilities: Over the years we have had the pleasure of working with hundreds of Craft Brewers providing them with specialized and personal assistance in the designing of their Walk-in and Warehouse Keg Coolers. Whether you need a custom designed Keg/Tap Display Walk-in or a behind the bar type with glass windows and display doors, our experienced team of Specialists can answer your questions regarding proper sized refrigeration equip- ment to suit your brewery, providing design, technical and installation support to best suit your need. American Walk In Coolers will save you money and time through value engineering with prompt service and unsurpassed quality products. Craft Brewery Cooler Storage: Specializing in Floral Cooler manufacturing with over 30 years experience working with shop owners related to flower/plant storage and event and catering businesses. AWIC offers standard and custom layouts with beautifully designed floral glass display doors and more. Our Surround Air refrigeration system extends the freshness by gently bathing flowers with generous humidity and uniform air temperature. No matter what your Walk-in needs you will find AWIC staff ready to assist you with from start to finish providing professional and technical assistance including Engineering and CAD drafting shop drawing for your review on all projects. Request your quote today. Plant and Floral Cooler Storage:
paleo, keto, gluten-free
Marketing to health ‘tribes’ Paleo, keto, gluten-free:
by Fern Glazer
To achieve their health goals, consumers are turning to the Internet to find their “tribes,” and that input from like-minded strangers is having a growing influence on eating behaviors, according to research from The NPD Group.
According to NPD data, 18- to 34-year-olds made 223 restaurants visits per person in 2008, and as few as 216 in 2013. That number has since rebounded, to 224 visits per person among 18- to 34-year-olds for the year ended December 2018. But the influence of Internet communities on eating behaviors remains. Nearly 60 percent of consumers who engage in clean eating, research their foods online, NPD found. Additionally, consumers engaged in the lifestyles like paleo, Whole30, and plant-based eating often find like-minded consumers online. Still, targeting these consumers requires a balancing act, as a relatively small portion of restaurant visits, or about 10%, are driven by health needs, NPD found.
For restaurants, these tight-knit communities present both opportunities and challenges.
“What we continue to see is consumers going down the tribal path,” Darren Seifer, executive director, food and beverage industry analyst at The NPD Group. “It’s become increasingly difficult to be a mass marketer.” Restaurant chains are taking notice, with some of the largest chains recently tailoring menus and marketing to appeal to consumers who identify with popular health plans. Chipotle earlier this year introduced Lifestyle Bowls tailored to popular diet plans like keto, paleo and Whole30 to remove the guess- work for customers adhering to those plans. And this spring Dunkin’ Donuts added egg-white bowls that fit squarely into the low-carb, high-protein meals of many popular diet plans. This new tribalism around health and wellness was spurred by the 2008 recession, NPD found. Younger consumers pulled back from eating at restaurants between 2008 and 2015, and increasingly turned to the Internet to find healthful lifestyles that fit their values.
According to NPD research, consumers say about 20% of meals are motivated by health or nutrition, but just as many are motivated by the need to satisfy a craving or taste or serve as a treat or reward.
able menu of over 26 toppings and sauces, four proteins and three different buns. “We are really fortunate because we have a customizable menu,” said Natalie Anderson-Liu, Mooyah’s vice president of brand. “We used exactly what we have to come up with compelling recipes.” While the Paleo, a half-pound Angus Beef, Applewood smoked bacon, avocado, tomato, pickles, onions and mustard between Iceberg lettuce leaves, is the current bestseller, the entire line is performing well. For example, Anderson-Liu said that from April 1 to May 15 the Lifestyle Burgers generated 52-percent higher visit frequency from guests than other products. The new line may be driving visit frequency and generating increased revenue, but the ultimate goal, said Anderson-Liu, is to communicate to customers that “there is no occasion when our restaurant cannot fit your needs.” Wow Bao, which specializes in hot Asian buns, is focusing just one, albeit broad, group: consumers who avoid gluten. Following two years of recipe testing, Wow Bao on May 1 launched the Gluten-free Chicken Teriyaki Bao at all of its Chicago-area locations. Wow Bao: Going gluten-free
“It’s not all health, all the time,” Seifer said.
Among the operators catering to today’s health communities are Plano, Texas-based Mooyah Burgers, Fries and Shakes and Chicago, Ill.-based Wow Bao. Here’s a look at how they do it.
Mooyah: Something for everyone
On April 1, Mooyah launched a line of five Lifestyle Burgers, including Gluten-Free, Paleo, Keto and Vegetarian options to appeal to their customers’ evolving dietary needs.
To create the new line, Mooyah tapped its existing customiz-
“We realized a large population was missing out on trying our signature item, the bao, because they are avoiding gluten because of Celiac, gluten intolerance, or avoiding gluten for other reasons,” said Geoff Alexander, Wow Bao’s president. “As we continue to expand our concept, we want our menu to be accessible to as many guests as possible.” The new gluten-free bao bun is made with tapioca and rice flour and filled with chicken teriyaki prepared with tamari in place of soy sauce. It is sold in packs of two for $6.29, about
$2 more than a non-gluten-free bao two-pack. To inspire trial, the chain said it plans to reduce the price of the new item to $5.79. Wow Bao has no immediate plans to target any other dietary needs at this time, Alexander said. However, he said the chain would continue to promote steaming as a healthier cooking method, and its low-carb and vegetable bases for its bowls, such as lettuce cups, cauliflower rice, and zoodles, which are scheduled to launch next month.
restaurant industry growth
Restaurant industry added nearly 14k locations in 2018
by The National Restaurant Association
The restaurant industry added more than 10,000 locations for the third consecutive year. Driven by population growth and an expanding economy, the restaurant industry continued to add locations at a steady pace in 2018. According to new data from the Bureau of Labor Statistics , the restaurant industry added a net 13,817 establishments* in 2018, an increase of 2.2 percent. The 2018 expansion followed a strong net increase of 15,169 locations (+2.5 percent) in 2017, and represented the third consecutive year in which the restaurant industry grew by at least 10,000 establishments. In comparison, the overall private sector added a net 196,893 business locations in 2018, a 2.1 percent increase over 2017. The 2018 gain represented the strongest annual increase since 2006, when the economy expanded by more than 210,000 business establishments.
Within the restaurant industry, the quickservice segment added the most units in 2018. The quickservice segment added a net 4,982 establishments in 2018, a 2.1 percent increase over 2017 and the fifth consecutive year with growth of more than 4,000 locations. The fullservice segment added a net 3,717 locations in 2018, which was down from a gain of 4,867 units in 2017. Despite the slowdown, 2018 represented the third consecutive year in which the fullservice segment added more than 3,000 establishments. The snack and nonalcoholic beverage bar segment – which includes concepts such as coffee, donut and ice cream shops – added a net 3,481 locations in 2018, a strong 5.9 percent increase over its 2017 level. The solid 2018 growth represented the second straight year in which the number of snack and nonalcoholic beverage bar establishments increased by 5.9 percent. 61
Eating & Drinking Place Establishments Net change from the previous year (annual Average)
The number of mobile foodservice establishments jumped 14.1 percent in 2018, which represented the segment’s eighth consecutive year with double-digit percent growth. Note that this dataset only includes businesses with payroll employees, so these figures don’t include the large number of food trucks that are owned and operated by one individual.
On the state level, trends were mostly positive in 2018, and restaurant location growth was generally strongest in regions that are seeing the largest population and employment gains. Forty-six states (including the District of Columbia) added eating and drinking place locations in 2018, while only 5 states experienced a decline in units. California led the nation by adding a net 4,058 eating and drinking place establishments in 2018, while Texas added a net 1,397 locations.
Restaurant Establishments by Segment
Arizona led the way in percentage terms, with a solid 6.5 increase in eating and drinking place establishments in 2018.
South Carolina saw its restaurant industry expand by 5.6 percent in 2018, while California added locations at a 5.4 percent rate.
View the latest restaurant establishment data for every state.
*The establishment figures, which are based on unemployment insurance filings of businesses that have wage and salary employees, represent the most comprehensive census of establishments with payroll employees on the national, state and local levels. Read more analysis and commentary from the Association’s chief economist.
remaining ARA 2019 Events
AUGUST August 20 | ARA Summer Member Mixer
Serv safe 2019 upcoming classes
SEPTEMBER September 20 - 29 | Fall Arizona Restaurant Week
OCTOBER October 10 | Foodist Awards | Young’s Market Company Seventh & Union
Wednesday, July 10 | Phoenix
Friday, July 12 | Tucson
NOVEMBER November 10 | Live & Local | Desert Ridge
Tuesday, July 23 | Phoenix
state of the industry
RESEARCH CHIEF HUDSON RIEHLE OFFERS
by The National Restaurant Association State of the Industry
of-the-house positions, tougher. In addition, they are navigating complex legislation—and in some cases overregulation— on the federal, state and local levels of government.
The National Restaurant Association’s senior vice president of research & knowledge, discusses how he expects business to perform throughout 2019. Restaurant businesses are growing despite some operational challenges, such as workforce development issues, demand for increased technology, and serving millennials, according to new national restaurant association research . The 2019 state of the restaurant industry report , a comprehensive look at trends and sales projections for the industry, culled and analyzed economic data, along with responses to surveys sent to restaurant operators and consumers. Hudson riehle, association senior vice president of research & knowledge, shared takeaways from the report, discussed how he expects business to perform throughout 2019:
Is consumer demand affecting restaurant technology?
In general, millennials and gen z customers want more technology when they dine out. Mostly, the demand is for nline or app ordering, mobile payments and delivery management. Our research found that in the past year, 56 percent of millennials placed takeout or delivery orders using a restaurant app. They also were more likely than older consumers to order from kiosks. They want easy access to convenience and accuracy.
Download the full report
How are restaurants doing, and what are some key trends you are seeing?
Operators generally are optimistic about business conditions, but they are still experiencing some competitive pressures, including rising labor costs and a tightening labor market, which makes recruiting and retention, especially for the back-