THE MAGAZINE OF THE ARIZONA RESTAURANT ASSOCIATION
Arizona Restaurant News shares tips for best practices in the industry from smart inventory tips to ways to reduce food waste. We look at ways to save time and money making sure restauranteurs are putting their best foot forward when it comes to both front and back of house operations. Best Practices in the Industry
REMEMBERING THE BIG APPLE ’ S FINEST Remembering an Phoenician legend, Johnny Johnson
HOW MUCH IS TOO MUCH? Keeping profits up with smart alcohol inventory & money sav- ing tips
KEEPING YOUR RESTAURANT ’ S COMPANY CULTURE STRONG Happy employees leads to longevity in the industry with these key elements
Explore this global hub of industry news and commentary on food, drink, design and more.
HOW MUCH IS TOO MUCH?
Get to know Arizona’s food scene through stories, interviews and conversations with industry insiders.
FOOD & BEVERAGE TRENDS 2016 -2017
STEVE’S GREETING Putting Our Best Foot Forward
CUT YOUR RESTAURANT’S FOOD WASTE WITH THESE 4 TIPS
Learn from the best with this business know-how guide filled with ideas, tips and resources.
MESSAGE FROM CHAIRMAN
4 STEPS TO SUCCESSFUL CURBSIDE PICK-UP
REMEMBERING THE BIG APPLE’S FINEST
TOP 10 RESTAURANT MARKETING IDEAS
THE MOST IMPORTANT MEAL OF THE DAY
CHEERS TO A NEW NAME
KEEPING YOUR RESTAURANT’S COMPANY CULTURE STRONG
OFF THE MENU with Joe Johnston & Paula Bugg 3 4
DrinkWell & EnjoyWisely
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
Young’s Market Company is proud to partner with theArizona Restaurant Association.
4250 N. Drinkwater Blvd., Suite 350 Scottsdale, AZ 85251 P 602.307.9134 F 602.307.9139 azrestaurant.org
ARA vendor member, Sculpture Hospitality of Arizona’s Rex Snyder takes a deep dive into alcohol inventory and shares great tips on how to determine how much and when to order what. Acquiring and retaining quality employees is tough in any industry but particularly in ours, that’s why the National Restaurant Association’s article on maintaining a strong company culture is so important in ensuring the retention and longevity of quality employees.
Putting our best foot forward
As the weather cools down, Arizona restaurants start to pick up. We hope this issue proves a good resource or reminder of some of our industry’s best practices as we start into this busy season.
...the Arizona Restaurant Association can serve as a resource providing much needed advocacy on the issues that affect our industry the most, marketing and exposure opportunities, as well as providing the best information possible to make sure our members have the keys to success.
The restaurant industry is known for it’s competitive nature and the frequently touted statistic that some 90% of restaurants fail within their first year. While attending the Council of State Restaurant Association’s marketing and membership conference this summer, I heard that while this number may not be entirely accurate, what we can all agree on is that the restaurant business is tough. That is where the Arizona Restaurant Association can serve as a resource providing much needed advocacy on the issues that affect our industry the most, marketing and exposure opportunities, as well as providing the best information possible to make sure our members have the keys to success. In this issue of Arizona Restaurant News, we share industry tips and tricks to help save money, time and stress.
Don’t forget to join us for Arizona Restaurant Week, September 16-25!
Steve Chucri President & CEO, Arizona Restaurant Association
message from chairman
If you are not already a member of the Association, I would encourage you to consider joining. Our knowledgeable staff would be more than happy to sit down with The Arizona Restaurant Association
works to empower restaurant owners and operators and to represent and advocate on behalf of our industry’s interests.
you and answer any questions you might have. As with most memberships, this one is what you make of it. The more
As an owner and operator, I know firsthand the challenges faced in this industry. From legislative issues to personnel issues to issues with vendors, the list goes on and on. The Arizona Restaurant Association works to empower restaurant owners and operators and to represent and advocate on behalf of our industry’s interests. The Association provides learning tools from the Restaurant Operator’s Manual (ROM) to the Money Matters educational series in an effort to educate and elevate our members. Though not always easy, we strive to move our industry forward by finding answers to tough questions, protecting economic interests, sharing best practices and helping members navigate through the various issues that arise. Our members are what keep the wheels turning and motivate us to keep on moving upward and onward.
involved you become, the more you realize the real ROI of being an ARA member. We look forward to serving you!
Sincerely, Shane Hitzeman
Continue the Feast After
The Arizona Restaurant Association presents
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View restaurants and menus online at ArizonaRestaurantWeek.com
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brush title tbd Johnny Joe Johnson
Remembering the Big Apple’s Finest Phoenicians were sad to hear the news
of the last Big Apple Diner location closing last May. The history behind William (Bill) Harold Johnson and his restaurants is one that tells the story of a family business that grew to be a staple for so many in the Valley, a tradition passed down through the Johnson family.
Shared by Ana Johnson
Bill’s son, Johnny Joe Johnson, moved to Phoenix in 1955, with his parents. His mother, Gene, had been asked by Walt Disney to open a restaurant in his new theme park he was building,“Disneyland,” but she followed her husband to Arizona instead. Johnny’s father built the Original Bill Johnson’s Big Apple Restaurant, which opened in 1956. Johnny was a graduate of North High School in 1962. He loved God and country much more than most. Because of his asthma, he was unable to be accepted into the service, although he tried with each branch. This never stopped the deep pride he had in being an American. He went on to receive his Associates of Arts degree from Phoenix College, before moving on to ASU. Johnny truly was a diehard Sun Devil to the end. He was the first and only sibling in his family with a college degree, and his mother often let him know how proud she was of this. Both of his parents were from Oklahoma and education was self-taught with hard work, perspiration, and imagination. Sadly, on July 16, 2016 Johnny Joe Johnson, 73 crossed over peacefully and unexpectedly in his sleep after having one of his best weeks in a long time.
Johnny was born in Long Beach, California, on March 26, 1943, to “Gene” Mary Lozena (Golden) Johnson and William Harrold
restaurants took off, and they added several more over the years and eventually, they had a small chain of 7 restaurants. Along the way, good friend Rudy Gibson started selling their Big Apple BBQ sauce, and it quickly became the number one selling BBQ Sauce in Arizona for several decades. As the family grew, the kids and grandchildren also started working in the family business. Johnny was a very methodical person, so fittingly his first jobs were as a host and cashier at the Big Apple. He often said his drawer was always perfect, and through his life, he took pride in things like that. It is estimated that thousands of people worked alongside him in the restaurants over the years, many for 20 to 50 years. It was not just a job
Johnson. He always joked to everyone, “You know Mom loves me best!” And he meant it! He is now in heaven along with his brother Rudy Lee Johnson, whom he missed so much since his passing in 2014. Johnny was also preceded in death by many uncles, cousins, aunts, grandparents, and a few very special friends. Johnny loved fast and flashy cars and trucks. In high school, he and Rudy would cruise Central Avenue with their monkey, Charlie, on his shoulder. He said this was a great girl catcher! Johnny was an avid bowler, with many trophies, and even felt the pride of a perfect game. He had dreams of going pro, when his Dad told him that bowling was not a profession, it was hobby. He also was a master at chess; no one could beat him, though many tried. And golf? It was a love/hate relationship. He golfed often for a few years but one day finally gave his clubs to his landscaper and never looked back. Johnny’s father passed away in 1966, of an aneurysm, so the family came together to run the Big Apple and El Diablo restaurants. Upon his father’s death, Johnny took over the disk jockey duties for the nightly KTAR radio show for 6 years. He remarked he did okay, but he certainly was not his father. In 1973, Don Kalfas joined the family as an additional owner for 30 years, after having worked there since 1961. The
but a Big Apple family with Rudy, Johnny, Don, and Jim Rich, who started in 1974, leading the way to success.
a stable home for their children to gather at in a crazy world, as they grew into young men and eventually married, with Don taking Kristin and Jarrett taking Lisa as their brides. Becoming a grandfather to James Grayson, Tanner Michael, and Piper Lou Johnson were special and defining moments in his life. He seemed at peace his last week, talking of how all the kids were so settled and happy in their lives. Johnny found a new love in SASS Shooting, in 1996, which was a swift but long love affair. He met many great new friends, such as Colonel Scratch and Ornery Underwood, who was as close as a brother to him helping fill many cowboy action shooting days. His closest friends and their wives would plan grand adventures to places, such as Gettysburg, and go on riverboat cruises, dressing in their finest 1860 to 1880s clothing the entire week.
At his restaurants, Johnny loved dressing to the max in Old West cowboy outfits and strolling the aisles chatting with customers and telling jokes. You could give him a subject, and he had a joke for it. When he walked in the room, he was bigger than life, and you just knew he was the owner and in charge. Longtime friend, Mark Fooks, remembers him always buying sunflower seeds and joke books. He would memorize them all and tell them later. During Johnny’s journey, his beautiful and loving children were born: Richard Kenneth, Donald Lee, and Jarrett Austin Johnson. Each one had their own special impact on his life, and each one was cherished and loved more than life itself. They all worked in the restaurants at one time or another while growing up, and eventually Donald and Jarrett went their own directions as they finished college and started new careers. Oldest son, Rick, continued in the business and was the kitchen manager at the various restaurants. In 1985, Johnny met his soulmate, Anna Bodman Johnson, and they married in 1988. They lived the adventure and life to the fullest. She started her own business, and they made their nest in a new home where they stayed until his death. They wanted
In 2012, Rudy, Diana (Rudy’s wife), Johnny, and Anna opened Diana Johnson’s Catering to ease their souls. Johnny used to love to come visit, while Rudy helped do prep work, and he would tell jokes with Chef Ted. The smell of ribs in the smoker always brought back fun stories of their lives. They also became avid poker players. After Rudy’s death, Diana continued to grow the business. Aside from the above, Johnny leaves behind his mother-in-law, Louella Maj Meagher, who lived with them. Over the past two years, they spent much of their time taking care of each other through various health issues and were very close. He also leaves behind many cousins, nieces, and nephews, whom he loved dearly. If you would like to give in his memory, please give to your favorite charity or do as he often did: buy a Veteran lunch or dinner when you see one in a restaurant, or do a kindness for someone in need. He’ll be watching you.
In 2009, Johnny wanted to seal his marriage to Anna beyond “until death do us part,” so they gathered their posse, took off for a week to Lake Tahoe and Virginia City, where they renewed their marriage as soulmates into eternity on May 9, 2009. They married in the Silver Queen Hotel, built in 1876 – Johnny style, of course! Illness caused Johnny to slow down and retire from the restaurants in 2008. He continued to shoot when he could and go to the restaurants to visit and tell jokes. His heart was broken in January 2010, when his beloved mother passed away. His sisters, Dena Cameron and Sherry Novak, and his niece took over the restaurants until they closed their doors after 59 years of business. “It was a sad ending to beautiful story,” his brother Rudy would say.
brush title tbd Breakfast Weekend 2016
July 28-31, we celebrated the second annual Arizona Breakfast Weekend and had excellent sponsor and restaurant participation. The presenting sponsor, Hickman’s Family Farms along with Passport Coffee & Tea, ensured success of the event in helping recruit restaurants and in promoting the event. Participating restaurants went above and beyond whether on live TV segments or with their delicious and innovative of- ferings. Wildflower Bread Company offered any two of their breakfast entrees for $10. They were featured on Sonoran Living and shared three amazing recipes which we are sharing below: F ature
The Most Important Meal of the Day It has often been said that breakfast is the most important meal of the day so it only appropriate that we honor all things egg, bacon and coffee during the summer.
Sausage & Cheddar Egg Sandwich
2 Eggs 2-3 sprays pan spray 1 link fully cooked sausage, chopped into 1/4” pieces 1 slice cheddar 1/8 cup roasted red peppers, chopped into 1/4” pieces 1 Tbsp. scallions, chopped into 1/4” pieces 1 Tbsp. cilantro, Finely chopped 1 brioche roll, available at Wildflower Bread Company 1 tsp. whipped butter
Cinnamon Brioche French Toast
Instructions 1. In a bowl, gently crack eggs and whisk. 2. Spray sauté pan with pan spray and place over medium heat. 3. Pour eggs into sauté pan and add sausage, cheddar, roast- ed red peppers, green onion and cilantro. 4. Cook over medium heat, stirring gently with a spatula as the eggs cook. 5. Once eggs have reached the desired consistency, remove sauté pan from heat. 6. While eggs are cooking, cut Brioche Roll in half horizontally and butter inside of both pieces. 7. Place cut side down on a sauté pan or griddle over medium/high heat until toasted and golden brown. 8. Gently slide cooked eggs onto bottom piece of roll and close sandwich. 9. Enjoy!
1 loaf Cinnamon Brioche (day old and staled 4 hours), available by special order at Wildflower Bread Company
French Toast Batter 6 Eggs Half & Half
3/4 Cup Cinnamon 1 Tbsp. Kosher Salt 1/4 tsp. Vanilla Extract 2 Tbsp. Granulated Sugar
Instructions 1. This recipe is best if prepared 24 hours in advance. 2. Using a serrated knife, cut Cinnamon Brioche into 1” thick slices. 3. Lay in a single layer on a sheet pan and allow to stale for at least 4 hours. 4. In a large bowl combine eggs, half & half, cinnamon, kosher salt, vanilla extract, granulated sugar and all-purpose flour, 5. Lay sliced bread in a single layer on sheet pan or baking dish and pour French toast batter over brioche slices to cover. Turn slices of bread until completely coated. 6. Cover and refrigerate for at least 2 hours, leave overnight for best results. 7. Pre-heat a nonstick griddle on medium heat to 375˚F. 8. Place enough butter for each slice on griddle to melt. 9. Place bread on top of buttered griddle and cook for 2 1/2 minutes.
Wildflower Bread Company
Sonoran Living | ABC 15
10. Flip French toast and cook for an additional 2 1/2 minutes. 11. Remove French toast from grill and place on a plate. 12. Garnish with powdered sugar or your favorite toppings and serve with hot maple syrup. Feta & Roasted Vegetable Frittata 1 tsp Olive Oil 3 Eggs 2 TBSP Roasted Vegetables (roughly chopped eggplant and zucchini) 1/8 Cup Roasted Red Peppers 1 Slow-Roasted Tomatoes 2 slices Nine Grain or Sourdough Bread 1/2 tsp per slice Whipped Butter 2 TBSP Feta 1 pinch Parsley Instructions 1. Heat olive oil in an 8” sauté pan over medium heat for 30 seconds. 2. Add eggs, roasted vegetables, roasted red peppers and slow-roasted tomatoes to sauté pan. 3. Cook over medium heat; stir while cooking keeping the circular shape. 4. When mostly cooked through, flip in pan. 5. Cook for an additional 30 seconds, flip and remove from heat. 6. While the eggs are cooking, place bread in toaster. 7. Remove from toaster and butter each slice. 8. Place buttered sides together and slice in half diagonally. 9. Slide frittata onto the center of a large plate alongside toast slices. 10. Garnish with feta and parsley. 11. Serve immediately.
Wildflower Bread Company
brush title tbd cheers to a new name!
Breakthru Beverage Group has acquired full ownership of Alliance Beverage Distributing Company. Alliance will now operate as Breakthru Beverage Arizona, joining the national distributor as the 14th state of the company’s U.S. operations. Breakthru, which was formed January 1, 2016 through the combination of holdings by Charmer Sunbelt Group and Wirtz Beverage Group, represents a broad portfolio of premier wine, spirits and beer brands. “We are excited to welcome the Arizona team to the Breakthru Family and build on the great work they do with bars, restaurants and retail customers through the state,” remarked Greg Baird, Breakthru Beverage President & CEO. “We are committed to maintaining the excellent service that our partners have come to rely on in all of our markets.” Breakthru Beverage Arizona will be led by current Alliance Executive Vice President Gary Lederer. The company will maintain Alliance operations and facilities in Phoenix, Tucson and Flagstaff and continue to employ 550 associates. The Arizona business will align within Breakthru’s West Region, which includes Nevada and Colorado and is under the leadership of West Region President Joe Marotta.
Cheers to a
Alliance Beverage Distributing Company is now Breakthru Beverage Group Arizona
“The retail and chain markets continue to evolve nationally and there is a great opportunity in the Arizona market to help our
customers find the brands and experiences that consumers are demanding,” explained Lederer.
Through alignment with Breakthru, the distributor is launching a proprietary mobility platform which provide front-line sales consultants access to a robust, real-time order entry, inventory tracking, customer sales history platform while also providing an expansive product library of brand notes and accolades. The company’s “18 East” space in Phoenix will play host to a wide array of wine seminars, mixology courses, menu and bar development programs for customers led by Breakthru category specialists.
“We are thrilled to bring the national and commercial expertise of Breakthru to support our customers,” concluded Lederer.
BREAKTHRU BEVERAGE ARIZONA ALLIANCE BEVERAGE DISTRIBUTING COMPANY IS NOW
About Breakthru Beverage Group Breakthru Beverage was formed by joining substantial holding of The Charmer Sunbelt Group and Wirtz Beverage Group. The company employs more than 7,000 associates and with its affiliates has operations across the US and Canada. For more information, visit www. BreakthruBev.com
Joe Johnston & Paula Bugg Arizona Restaurant News orders off the menu and gets to know those that work in, support and lead Arizona’s restaurant industry in a different way… Off the Menu
Joe Johnston ARA Board of Directors, Joe’s Real BBQ | Agritopia | Joe’s Farm Grill | Liberty Market
Paula Bugg Public Affairs & Communications Manager at the Arizona Restaurant Association
What is your go-to restaurant in Arizona?
Tratto: Chris Bianco released to explore foods beyond pizza in his honest approach to the art.
Flo’s or Manuels… depending on my mood.
Home-made olives, pickled organic romanesco from our garden, home-made organic almond milk, Iconic Cocktail Co kaffir lime tonic, Homeboy’s Hot Sauces jalapeño hot sauce, gochujang
Lots of carnitas, sour cream, avocado and salsa! Oh, and maybe some veggies and berries hidden somewhere in the back.
What is in your fridge right now?
It’s a tie!
Home cooked: we cook together and find it relaxing and a way to chat while we unwind from the day.
Home cooked or dine out?
Salty…definitely salty! Chips & salsa, margaritas…that’s what this girl’s all about!
Salty! My downfall is salty-crunchy: chips of all kinds.
Salty or sweet?
The combo number 1. That is the classic AZ/Mex combo of a cheese enchilada, beef taco and a bean tostada and old school Valley Mexican restaurants.
Homemade open-faced tacos…YUM!
Favorite childhood dish?
brush title tbd how much is too much?
is Too Much?
An interesting challenge in the hospitality industry is that most bars and restaurants carry
too much inventory – between $6,000 and $10,000 too much – and still run out of product they between orders.
By Rex Snyder Sculpture Hospitality of Arizona
How is this possible? The problem is that too much of the wrong product is carried: several bottles of Hpnotiq when 2 drinks a year are sold, mint schnapps when nothing has been sold in over a year. How is it that you can be over-stocked, yet run out of product at the same time? The ordering process in our industry needs some work. There are typically four main ways that an operation determines what to order. The most common is that a manager simply looks at the number of full bottles for each brand and, based upon their past experience, orders product that looks like it might run out. This is the quickest and easiest, and in the hands of an experienced manager, can produce surprisingly good results.
However, this is also most likely to lead to over-stocking. The manager’s incentive is to make sure that the location doesn’t run out of product, and doesn’t really have any incentive to order efficiently. After all, running out of Jack Daniels on a busy Friday or Saturday gets everyone’s attention, but no one notices the thousands of dollars of unsold stock that are sitting in storage. The other problem with this method is that the ordering is not based on hard data and out-of-stocks will occur. The second method is to let the salesman determine the order. Although crazy as it sounds, it is very common in the industry. This can lead to massive over-stocking. Salesman are paid on commission, with bonuses on selling new products. So, when we noticed one Sculpture client building up inventory in a product they never sold, we questioned why they continued to order it. They weren’t aware that it was even there. They contacted the salesman and stopped any further orders. With another Sculpture client, we noticed that a new product was coming in every week. Since they weren’t selling it, they gave it to their employees. The salesman continued ordering because he thought it was being sold. With many clients, the person placing the order is not the person who receives and checks the orders in. So, when the salesman adds an extra product to the order, the person checking it in doesn’t know that it was not ordered. In most
A Just-in-Time System A better method is to establish a par that is re-calculated every week. Pars are then raised or lowered accordingly. When the snow-birds flock to Arizona for the winter, this system will increase the pars for the products they drink and lower it when they return home for the summer. This system provides the right amount of inventory while reducing out-of- stocks and excess inventory. This kind of system is called “just-in-time” ordering, a Japanese innovation. Toyota made it a central part of their cost-control strategy, and Wal-Mart has practically built their business on it.
cases, this is how bars and restaurants end up with shelves full of product they don’t use.
The third, and more effective method, is to set up a par for each brand. If your location uses two bottles of Tito’s Vodka each week, then you might set the par at three bottles. Whenever you fall below those three bottles, you order enough to bring it back up to par. Setting pars works well, when first set up. The problem is that it can be time consuming to adjust the pars, so it doesn’t get adjusted until the bar runs out of product. Usually, you find that this happens to one of your more popular products at the most inconvenient time, thus annoying the most number of patrons. In response to this, the pars are then adjusted upward. The net result is that when a spirit falls out of favor, you end up with an unrealistic par for that product and are now over-stocked again. Rarely are pars ever adjusted downward. The fourth method, ordering based upon the number of empty bottles each week, experiences a lot of the same problems. As sales increase for one brand, you run the risk of running out while there is still no process for reducing the on-hand inventory when sales drop off for a particular product.
How Much Inventory Should You Carry? The easiest way to monitor your inventory levels is to see how many days inventory you have on hand for each brand. If you are like most places, you get an order every week. If so, you don’t need to carry 90 days of inventory. The optimal number of days of on-hand inventory will vary based on usage. For high volume brands, you should carry a 10 to 14-day supply. For slower selling brands, a bottle may be more than a 90-day supply simply because it will take that long for you to sell that bottle. The number of days of inventory is a good “quick and dirty” gauge, but it is a fairly subjective measure of efficiency. Most well-run establishments evaluate their stock levels by looking at their “turnover ratio” or how many times per year their inventory is replaced. Turnover is calculated with the following formula: For example, if a bar has a cost of goods sold of $12,000/year and $1,000 in inventory, then the inventory will be “replaced” 12 times per year (ratio = 12x). A turnover rate of 12 times per year doesn’t mean that every brand will turn over 12 times. High volume brands will turn over many more times than this while slower moving items may only turn over once, if at all. Cost of Goods Sold from Stock Sales in the Last 12 Months Average Inventory Investment during the Last 12 Months
Costs of Inefficient Ordering The financial implications of just-in-time ordering have not been fully appreciated in the hospitality industry. Running out of a popular product on a Saturday night is going to result in some unhappy customers. Unhappy customers have a cost we don’t always see such as deciding to try a new place. Some unhappy customers may become lost customers or less frequent customers. Much of the business world has realized that the cost of carrying excess inventory is a serious concern. These costs are not immediately obvious. Funds are tied up unnecessarily that could be invested and productive, the cost of physically counting this inventory, insurance and taxes on the inventory and the time spent keeping an overflowing stockroom organized are just some of the hidden costs. Finally, there is the chance that some of that product becomes obsolescent. Selling such a product becomes very difficult.
The average bar inventory turns over 21 to 26 times per year (source: Risk Management Association www.rmahq.org). A review of the best run Sculpture clients shows that 30 to 35+ turns/year is easily achievable. Fine wines are typically an exception. They sell more slowly and often must be purchased in sub-optimal quantities. We recommend that fine-dining restaurants calculate their wine turnover separately and target a turnover ratio of 12x to 20x per year. Here is a quick way to look at your operation without doing the above calculations. To achieve 35 turns/year, an establishment should have less than 33 cents of inventory for every dollar of weekly alcohol sales. For example, if your bar has $15,000 in alcohol sales per week, your inventory level should be less than $5,000. First, don’t make the problem worse. Fix your ordering system so that it is more efficient. Second, get rid of your dead stock. Some of this product can be poured in place of your well brands. Liqueurs may not be so easy to pour off. Set up some limited time drink specials. Go online to any of a number of websites and search for drinks with your liqueur. What to Do if Your Inventory is Too High
If these drink specials don’t get rid of the excess inventory, see if the kitchen can use the product. If they can’t, then the stock is essentially dead stock. At that point, consider selling it to your staff at below cost or give it to the servers and bartenders in a sales contest. Characteristics of an Efficient Ordering System A good system will lessen the chance that you run out of a key brand while minimizing the amount of excess stock. The reality is that most bars could lower their inventory levels by $5,000 to $15,000 with less out-of-stocks. An efficient ordering system incorporates the FOUR key factors of efficient inventory management: 1. Calculates average and/or peak usage For most clients, the Sculpture Hospitality software looks at their usage over the last three weeks for the pattern. 2. Builds in an extra “safety margin” The safety margin is a percentage of usage. For example, for slower moving brands the software adds a safety margin of 100% of peak usage. So, the bar would have to use more than twice as much as their highest recent usage before they ran out.
Higher volume brands need smaller margins as their usage patterns are more consistent (in technical terms, higher volume means a tighter standard deviation). 3. Adjusts for changing usage patterns Because Sculpture Hospitality is always looking at the three most recent weeks, pars will climb as usage increases and fall when usage decreases – all automatically and with no extra work. Our intelliPar Report will advise on when to order by case so that you get the best pricing. 4. Allows for a lag time until the order is received If the order is placed on Tuesday but not received until Thursday, the extra two days of sales must be factored in to the order. About Sculpture Hospitality: Sculpture Hospitality is the world’s leading profit and revenue enhancement company for the hospitality industry. We have the comprehensive solutions your bar or restaurant needs to operate at optimal effectiveness and efficiency. Our suite of products and services such as inventory management systems (Bevinco and Measuring Cup), sales and training programs, and draft beer management products (Bevchek) help our clients drive both topline and bottom-line performance. We have a team of local, dedicated experts to provide on-site consultation, training, and program execution to drive measurable results and demonstrable return-on-investment. Sculpture Hospitality is committed to driving meaningful profit improvement for your restaurant or bar and giving you the confidence that you are in control.
brush title tbd hot trends 2016-2017
Food & Beverage Trends 2016-2017
by The Food People
cutting food waste
Cut your restaurant’s
with these 4 tips
We’re taking our mission to reduce restaurant food waste on the road – and seeing lots of creative thinking out there, in restaurants and beyond. The most recent stop for the National Restaurant Association was Harvard University, where we joined hundreds of other leaders in the food-waste-reduction movement for a “ Reduce and Recover: Save Food for People ” workshop.
The NRA’s Laura Abshire, sustainability director, moderated a session on food recovery. Four tips from her panel:
1. Design a custom program. Panera Bread donates leftover bread and baked goods from more than 800 company-owned stores at the end of each night to local hunger-relief agencies. Panera Bread exec Mindy
by the National Restaurant Association
4. Watch for misguided mandates. Cities and states are increasingly passing bills to ban organic waste from landfills, Abshire noted. But the mandates often come before the necessary infrastructure is in place. Banning food waste won’t work if jurisdictions don’t have the facilities to support composting or other alternatives, Abshire said. The event was hosted by Harvard Law School’s Food Law and Policy Clinic . The Environmental Protection Agency and theMassachusetts Department of Environmental Protection were partners. An estimated 40 percent of food is wasted in the United States each year. A federal initiative introduced last year aims to cut food waste in half by 2030.
Gomez-Casseres said the company’s “ Day-End Dough- Nation ” initiative contributes more than $100 million in unused bread and bakery items each year. 2. Partner up. Foodservice companies made a whopping 1.6 million food donations last year through the Food Donation Connection , reported FDC’s Steve Dietz. FDC acts as a middleman between restaurants and grocers and 9,000 local shelters, rescue missions and food banks. Clients say working with FDC makes every aspect of the food-donation process easier, from cost to transportation to liability. A side benefit: It can be great for team morale, says Whole Foods Market’s Karen Franczyk. Her company is working with FDC to donate more hot, prepared food. “Employees didn’t like throwing away food at closing. They are happy it goes to the hungry.” 3. Understand your liability. Many restaurants fear liability when they donate prepared food inventory. But the federal Bill Emerson Good Samaritan Act protects donors against donation-related liability claims. “It’s clear lots of restaurateurs don’t understand this,” says Abshire. “We want to get the word out: U.S. law protects donations made in good faith.”
What are you doing to reduce food waste in your restaurant? Let us know.
Original article can be found here.
successful curbside pick-up
4 steps to Successful
By the National Restaurant Association
The parking spots should be near a window and easily accessible to your designated pickup station. If you can’t allocate spaces close by, consider installing a security camera in the parking lot and a monitor at the curbside station so your staff knows when customers arrive. 2. Carefully structure your staffing. As with dine-in, service is key to generating repeat curbside business. If you have a host stand, you might able to leverage that staff to run the food out if it won’t negatively
Curbside pick-up is becoming an increasingly popular option to drive business growth.
The concept is simple: a customer calls in an order, drives to the restaurant, parks outside and a runner brings the food to the car. Customers like it because they don’t have to get out of the car, and restaurants like it because it increases sales without adding seating capacity or raising prices. According to the National Restaurant Association 2014 Restaurant Industry Forecast, 46 percent of all customers – and more than half of frequent off-premises dinner customers and frequent quickservice customers – say they would use curbside options at tableservice restaurants. If you’re considering starting a curbside pick-up service, or you have one in place, follow these best practices for curbside success: 1. Plan for efficiency at your location. Reserve a few parking spaces near your front door for curbside pick-up only. That ensures your customers have convenient places to park and that your staff can easily find them. It also ad- vertises your curbside service as customers walk in.
affect your dine-in guests. It’s best to dedicate staff to take orders, watch for arrivals and deliver food to cars. Train employees to note the make, model and color of customers’ cars when taking orders so curbside staff can identify them when they arrive. 3. Select appropriate packaging. It’s worth spending a little extra on quality carryout containers to make sure hot foods stay hot, cold foods stay cold, and liquids stay in containers. It helps preserve the guest experience all the way home. Containers also offer valuable advertising space, and a small investment in printing can extend your brand recognition beyond your parking lot. 4. Ensure pickup is quick and efficient. It’s imperative to minimize trips back into the restaurant, so make sure your curbside staff carries cash to make change. They should be able to take credit card payments at the car by using a secure, wireless credit card terminal or a mobile payment app on a smart phone or tablet.
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to implement in your restaurant.
Henry &Horne is one of the largest locally owned accounting firms in Arizona with offices in Tempe, Scottsdale and Casa Grande.
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top 10 restaurant marketing ideas
Top 10 Restaurant Marketing Ideas For the uninitiated, restaurant marketing can seem like a daunting part of running your business. But it doesn’t have to be! Marketing can be as easy as hosting a wine tasting, sending an email or creating a frequent diner program. Here are ten ideas to get your business on a healthy marketing path. 1. Get good press. It may seem like getting good press is out of your control, but there are plenty of steps you can take to ensure the local media
Feature More and more, consumers across the nation are turning to the Internet to decide where they will eat out next. If your restaurant does not have its own website, you may lose a lot of potential customers. If you already have a website, make sure it is pulling its weight. Can customers easily find all important information, such as hours, location and the menu? It is also essential that your site is mobile friendly. More and more consumers are finding out about restaurants on the go, and if your website uses Adobe Flash or other applications that are incompatible with smart phones, it can seriously impact your business. takes notice of your business. To get good press, you can try helping the community, making creative changes and thinking outside of the box. 2. Utilize your website.
By Eleanor Frisch for Food Service Warehouse
3. Redesign the menu. Your menu is your best merchandising tool, and a boring, outdated or ugly menu can cause customers to perceive a lower value for your restaurant. Make sure your menu is fresh, well-written and enticing. There are also several tactics you can use to influence customers’ choices and sell more of your most profitable menu items. 4. Implement frequency marketing. Regular guests are your most valuable resource. Not only do they typically provide you with 1/3 of your revenues, but they also help market your restaurant through word of mouth. To get the most profits, you need to increase your number of repeat customers. 5. Host events. Turn your restaurant into a venue for tast- ings, community and business gatherings, parties, live music shows, stand-up com- edy and other events. This will help you to
attract new customers and give your regular customers a reason to keep coming back. 6. Try up-selling. Increasing the average check size at your restaurant is one of the smartest ways to improve profits. By teaching servers or cashiers to read the customer and suggest appropriate side dishes, drinks or desserts, you will simultaneously increase your sales and improve the customer experience 7. Market your take-out and delivery service. Offering take-out or delivery does little good if no one knows about it. Use flyers, suggestive selling, your website and take-out and delivery menus to market these services.
8. Promote through email. When compared with direct mail marketing, email marketing is faster and more efficient, saves paper, reduces marketing expenses and is more likely to convert to a sale. 9. Commit to going green. Implementing eco-friendly practices will help your profits by lowering utility costs and giving you an edge over the competition. Market your green restaurant to show customers that you conserve resources and reduce pollution. 10. Involve customers in a contest. Having customers sign up for a contest or giveaway at your restaurant is always a smart strategy. It will help you build your marketing database, and it will also give customers a reason to come back.
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Redirect Health is disrupting the healthcare world with a partial self-insurance model that puts the power back in the hands of restaurant owners. Dozens of restaurants have already signed up, and they’re experiencing major cost savings, claims reductions and employees who are thrilled with the convenient access to quality care. • IRS Forms 1094 and 1095: Employers must file Forms 1094 and 1095 at tax time with details on each employee’s health coverage – or be fined up to $2,400 per year, per employee, up to a maximum of $3 million. • Minimum Essential Coverage (MEC): Companies with 50 or more full-time-equivalent (FTE) employees must provide MEC. MEC includes 71 specific services – screenings, limited primary care, preventive services, some medications and COBRA. Failing to offer MEC results in a penalty of up to $2,000 per employee (excluding the first 30 employees). • Minimum Value Plan (MVP): MVP is difficult to define, but the short version is employer-sponsored plans must cover at least 60 percent of employees’ bills after monthly premiums. Companies with 50 or more FTE employees that don’t offer an MVP are fined $3,000 for each employee who receives a subsidy on the exchange. Yet before we share the solution, let’s clarify the law:
How Arizona Restaurants are Using a New Healthcare Model to Save Money on Healthcare, Increase Employee Satisfaction and Productivity Compliance with the Affordable Care Act can be achieved at low cost or no cost to the business The restaurant industry, with its entry-level and transitory employees, rarely offered healthcare benefits to all staff. This all changed with the Affordable Care Act. Large restaurant groups and small cafés alike now need to rethink their healthcare strategies in order to remain competitive and retain talent. For restaurant owners, traditional healthcare is a cause for concern because rates are getting higher and higher, and cutting into profitability. The good news is that the law doesn’t require traditional insurance. There’s a different solution enabling you to offer your employees healthcare benefits at little or even no cost to the company, all while complying with the ACA.
By Holly Mack, Redirect Health
Large companies have been self-insuring for a long time, but it’s a newer trend with smaller companies. A well-designed partial self-insurance model encompasses: 1. The care most employees need: This healthcare goes beyond MEC and includes the routine services most people use, most of the time – primary and injury care, rehabilitation (including chiropractic), labs, immunizations, generic medications and preventive services. 2. Stop-loss insurance: This will cover the most expensive healthcare – hospitalization and specialist care – and will ensure you meet MVP requirements. 3. An end to overpaying: A specialized care delivery and logistics process that eliminates waste, administration and overpricing rampant in today’s healthcare system. Redirect Health’s flagship offering, EverydayCare™, was developed with restaurants in mind. It meets MEC requirements and addresses the majority of peoples’ healthcare needs, such as treatment of coughs, colds, pain, injury and other common ailments. It costs about $100 a month per person – a cost the employer or employee could absorb. Healthcare doesn’t have to be confusing and complex. Learn more about this model at www.redirecthealth.com , or contact firstname.lastname@example.org, (888) 995-4949.
keeping company culture strong
company culture strong Keep your restaurant’s In 2003, Mendocino Farms restaurant started out as one downtown Los Angeles sandwich shop. Now, the 13-unit fast-casual concept has expanded into the area suburbs, added salads to the menu and scored an investment from Whole Foods for more locations.
Feature • New team-member training. Once hired, team members enter a two-day training. They learn all about Mendo’s values, which include enriching the lives of local farmers, fellow team members and guests; continually and proactively thinking of new ways to better serve guests; and constantly building community, so Mendo functions as a resource as well as a restaurant. Leaders dive into the intricacies of Mendo’s personalized processes, such as how all team members wear a lanyard, and at the end of each day, they write down the names of the guests they’ve helped on the back. Following the training, Del Pero says “they understand our ‘why,’ not just our ‘what,’ and are hyperengaged.” • Career Climber. To show team members how to advance within the company, Chen and Del Pero created Mendocino Farms’ Career Climber. This visual aid illustrates what steps need to be taken in order to be promoted. “It’s very transparent for them,” Chen says. “We’re always thinking their guests. During their 2016 Fast Casual Industry Council panel discussion moderated by Wow Bao executive vice president Geoff Alexander, Chen and Del Pero shared how important team-member retention and positive company culture have been to their restaurants’ success. Here are three ways they instill their company culture consistently across locations:
According to founders Ellen Chen and Mario Del Pero, Mendocino Farms’ allure goes beyond its fresh meals; they create friendly community gathering places and “sell happy” to
about how to better set up employees to ensure they stay with us.” • Coaches Clinic. When a team member is promoted to a manager role or to a capacity at which they can delegate, they attend the company’s Coaches Clinic. “How they ask others to do things matters,” Del Pero says. With senior leadership, they explore coaching styles, set goals, role-play restaurant scenarios and utilize other helpful management tools. If an employee is promoted five times, they will attend these coaching sessions at least five times to stay current.