About Kickfin: Restaurants use Kickfin to instantly deposit tips into employees’ bank accounts the second their shift ends, 24/7/365. We eliminate the hassle, hidden costs, and health hazards of cash tips outs, so your people stay safe while still receiving their tips in real time. 

Kickfin can help mitigate the spread of the coronavirus and ensure the financial security of your employees with contactless tip outs. Because of this, we feel we have an ethical responsibility to make Kickfin available to new and existing customers free of charge through the months of April and May. Contact us to learn more.

Unemployment is one of the most painful byproducts of this unstable, uncertain market. It’s impacting every industry, of course, but hospitality has taken one of the biggest hits.

Hundreds of thousands of jobs have been cut — in fact, restaurants and bars account for 60% of the losses. While some are (hopefully) temporary, other jobs have been permanently lost, as many restaurants have little hope of weathering this storm.

It’s a cruel twist of fate: for years, hospitality employers have battled against one another in a highly competitive labor market. Now, though, there’s willing, able and experienced talent everywhere you look. 

Who’s hiring at a time like this? 

You’d be surprised. With off-premise sales spiking, delivery restaurants and chains are in need of extra hands. Pizza Hut, for example, indicated they’re hiring for 30,000 permanent positions. Other restaurants who have pivoted in this market are hiring in anticipation of the virus striking their team and taking out part of their workforce. 

If you’re in the hiring boat, you might be wondering: How should my recruiting practices change in light of this burgeoning labor market? (And how should they stay the same?) 

We’ve got 3 tips for restaurateurs who are hiring during this crazy time.

1. Don’t lower your standards.

If you’re in a bind and in need of help ASAP, you may be tempted to make a hasty decision, setting aside your typical hiring process. 

That’s understandable: in the current environment, survival depends on your ability to be nimble and move fast. But when it comes to bringing new people on board, moving too fast could backfire.

Right now, restaurant patrons are anxious. People need to eat, of course, and many genuinely wish to support the restaurants they love — but they’re worried about their safety, and rightfully so. Plus: federal, state and local guidelines for essential businesses are constantly evolving, and in general, health hazards are high.

Taking all of that into account: seek out employees who are reliable, experienced, and have a can-do attitude. Before you make new hires, ask yourself: will they be considerate of and accommodating toward anxious patrons? Will they follow new, extensive sanitation and safety guidelines? And can they adapt to a role that may include changing responsibilities, as your business shifts to respond to the market?

Pro tip: Don’t skip references. Now more than ever, it’s important to require references for candidates — and don’t neglect to actually reach out to those references. Aside from confirming previous employment, questions you may want to ask include:

• What were the candidate’s key responsibilities?
• Where did the candidate excel? What were his/her key strengths?
• Did you ever experience any performance issues with the candidate?
• Is there anything else I should know?

1. Broaden your horizons.

If you’ve just pivoted to curbside or delivery service, you may need to look for a different kind of background than you’re used to hiring for. Seek out people with skills or experience that are directly applicable to the roles you need to fill.

That may seem obvious — but many restaurateurs are used to only hiring either front-of-house and back-of-house staff. Now, they’re suddenly looking for drivers. While you shouldn’t lower your standards (see above), you may need to shift required qualifications and experience.

A few key considerations if you’re hiring drivers:

• Do they have solid driving credentials?
• Will they be using a company car? If not, do they own or reliably have access to a vehicle?
• How will they be compensated? Will they make tips? Will they receive a stipend for gas and wear and tear on their car?
• Will they be an employee or an independent contractor? If it’s the latter, are you in compliance with state and federal labor laws?

Pro tip: If you’re hiring for a different kind of role than you’re used to, talk to other restaurateurs who have experience with this model to get an understanding of what kinds of qualities and qualifications you should focus on. 

1. Think long-term

We can all agree that this is a strange and difficult time. But good news: it’s not forever.

It may not be weeks or even months, but at some point, we’ll return to some semblance of normalcy. And while everyone in hospitality is trying to be nimble and pivot fast, savvy restaurateurs are making strategic shifts — not band-aid solutions. 

So wherever possible, think ahead: are the changes you’re making going to benefit your business now and in the long term? 

This is especially important when it comes to your people. Every employee you onboard right now is still going to require some level of ramp time, which means you should hire the right person for the role and the team, so you can ultimately minimize turnover. 

Pro tip: Don’t neglect your restaurant’s culture. Think about what new hires are going to bring to your team: how will they fit in? And will they want to stick around, even after things go back to a (new) normal?

Bottom line: if you’re hiring in hospitality right now, you’re in a fairly unique position. You have a wealth of talent at your fingertips that, just weeks ago, was next-to-impossible to find. And more importantly, you can help workers who have lost their livelihoods and are desperate for gainful employment. Remain committed to smart, strategic hiring practices, and your business, your employees and your new hires all stand to benefit.

Did you notice the fast pace with which food and beverage trends came and went in 2019? The rise and fall of consumer’s preferences and desires seemed to wane as quickly as a tropical afternoon rain shower that drenches an island one minute, only to bring intense sunshine the next. Blink, and you might miss it.

Avocado and kale may find some tough competition in the next decade with curious guests turning to unique and unusual produce. Let’s take a look at a few that are definitely not found at the corner grocery store.

Celtuce

Tyrant Farms describes celtuce as “the coolest veggie you’ve never heard of.” As the name implies, it’s a little like a celery-lettuce combo. The big, massive leaves, which are not it’s culinary prized possession, gives way to a thick, crunchy, juicy stem that Asians and others in the Mediterranean region have known about for over a thousand years.

The stem, after pealing the fibrous outer skin, is great raw or in stir fries, maintaining its crispy juiciness even after cooking!

According to the Forager Chef, Michel Bras, a world famous French chef, and his son, Sebastien, serve it at their 3-star Michelin restaurant, Bras. Of course, as their menu is an ongoing work of art, Celtuce may be a thing of yesteryear by the time you get to France and indulge in some of the region’s finest culinary creations. If you’re in search of this off-the-beaten path wonder, it’s best to look in your local Asian market. At least until we Americans catch on to its tasty offerings.

Komatsuna

This hardy green, also referred to as Japanese mustard spinach, is actually not a spinach but a member of the Brassica family, home to cruciferous vegetables such as cauliflower, broccoli, and cabbage as well as mustards. Asians use it for its tender leaves as well as the flowering stems. As the name implies, it is native to Japan where it is used in salads and stir-fries.

This health trend is high in vitamin C, calcium, beta carotene, and sulforaphane, a compound that has been shown to fight against cancer cells. Chef Tetsuo Takenaka, Kyoto’s leading specialist in the school of traditional Japanese kaiseki ryori, a cuisine that uses fresh ingredients distinctive to each season, recommends combining this green with fresh shitake mushrooms and dashi.

Mushrooms

I know, this edible wonder does not seem like it belongs on the up-and-coming list. But what is new for 2020 is the “superfood” aspect of mushrooms and that it fits in well with the plant-based alternative to meats. This nutrient dense, versatile meat-alternative can be found in main dishes as well as small plates in all its remarkable forms including Shitake, Maitake, and Chanterelle. The first two started out in Asia before finding their way to the U.S. They are high in several immune-boosting, anti-cancer compounds including polysaccharides and terpenoids.

Chanterelles are native to many parts of the world, including the forests of Wisconsin in the summer months. Bartolotta’s Lake Park Bistro, set in a park pavilion overlooking Lake Michigan, offers a Chanterelle Mushroom wine-pairing dinner that includes oysters in curry with chanterelles and slow-cooked American wagyu brisket with chanterelles and shallot. This mushroom, with a distinctive mild peppery flavor, is full of vitamins and minerals including a high concentration of B vitamins, a fair share of Vitamin D—a vitamin hard to find in food—and iron.

According to USA Today, searches for nutrient-packed mushrooms has increased by 46 percent on Pinterest, a social media site with more than 250 million users. But, wait, even more astonishing is that mushroom coffee has seen a 471 percent year-on-year spike in searches. Amazing. If you’re considering getting in on this dynamic trend, you’ll need to familiarize yourself with mushrooms such as chaga, lion’s mane, reishi, and cordyceps, medicinal mushrooms that have been used for thousands of years in traditional Chinese medicine.It looks like more and more health-conscious consumers will be trading in their morning latte for a mug of Lion’s Mane & Chaga.

Butterfly Pea Flower

Just when you thought edible flowers were entering the downside of their climb to fame, this beautiful, vibrant blue flower enters the scene. This, however, is not just any flower—it is the chameleon of the plant kingdom, changing colors when mixed with an acidic food. It is also rich in antioxidants, making it not only Instagram worthy, but a strong contender for those drawn to health-conscious cuisine. Butterfly pea flowers offer little in the way of taste but make up for it in their natural food and drink coloring properties. The tea has a mild woody taste, a little like green tea. Indigo tea, made from its petals, is a staple in Thailand.

Beans

Beans have been a staple around the world for thousands and thousands of years, an estimated 9.000 years, to be exact. So, what’s new about something so old? Knorr and World Wildlife Fund put together a report on the Future 50 Foods—foods that are healthier for both people and the planet.In addition to foods that fall into the algae and cacti categories, superfood beans made the list and include black turtle, bambara, and marama—a bean that, when roasted, is said to taste like cashews—Yum.

We definitely recommend checking out the Future 50 Foods report which offers a wealth of information about unique foods from around the world that are sure to be growing in popularity as the rise of the health conscious consumer continues to redefine the restaurant landscape.

Know Your Produce

Whether you opt for the curious and new or for the old-time favorites, it’s important to keep abreast of the market and what is happening to produce on a world scale.

Consolidated Concept’s Freshly Picked Market Report offers weekly reports that focus on updated pricing in the meat, poultry, beef, and seafood industries as well as produce, dairy, and grains. I was surprised to see in their Freshly Picked, December 19 report that pricing on chicken wings for the coming year may run below the elevated 2019 prices. Good news for those restaurants that are building their Superbowl menu!

This report is a great resource to have at your fingertips and one that will serve you well if followed on a weekly basis.

If you’re looking to redefine your menu in the coming year, Consolidated Concepts can also help you develop your menu and connect you with the local and national sources to help you succeed.

On December 31, 2019, China reported several cases of pneumonia caused by an unknown virus in the port city of Wuhan. One week later, the World Health Organization (WHO) announced that they had identified the causative virus as belonging to the coronavirus family.

How the Coronavirus Began

There are several speculations as to how the virus first affected humans. Whether the Wuhan coronavirus found its way via workers at the Huanan Seafood Wholesale Market, leapt from bats to humans, or, as conspiracy theorists are prone to believe, is associated with weapons research at the Wuhan Institute of Virology, it’s clear that it has changed the face of China and possibly the world…at least for now.

And restaurants are not immune.

McDonald’s recently shut down approximately 300 restaurants in China and set up an epidemic task force in response to the virus. A Chinese restaurant in San Gabriel that specializes in dry hot pot from Wuhan has seen their orders cut in half. Diners are changing their destinations, leaning away from big city Chinatowns. When a Philadelphian took a random Facebook poll, 40 out of 100 respondents said that, for now, they would avoid Philadelphia’s Chinatown.

Dr. Allen Chan, owner of Jasmine Seafood Restaurant in San Diego, reported to 10News that, after the WHO declared an international public health emergency due to the Wuhan coronavirus, customers dwindled. As a doctor, he decided to take things into his own hands and “fight the fear with hyper hygiene.”

He installed sanitation pumps at the entrance, and reminded customers to avoid double-dipping or shared cups. Remarkably, he even played the CDCs notes on the virus on a giant projector. He’s also ordered masks for servers which, due to high demand, are on back order. While some restaurant operators may see these actions as a little over-the-top, Chan’s customers seem to appreciate his actions and concern.

Steps to Help Keep Guests and Employees Safe  

For those in the restaurant industry, there are simple steps you can take to minimize the chance of a virus, be it the now infamous Wuhan coronavirus or the common influenza, from gaining hold in your establishment and taking down staff and customers alike.

Laurie Garret, a reporter who traveled throughout China and Hong Kong during the SARS epidemic of 2003, shared in Foreign Policy the several important steps she learned to help her keep virus-free despite being in both cities and rooms with those who were infected. Here are a few or her tips as well as other important preventative strategies that restaurants can incorporate.

• Take a close look at public areas where people commonly put their hands. This includes doorknobs, menus, and the back of chairs. Be sure to wash these areas regularly, as well as handheld devices that your staff commonly uses such as phones, keyboards, stairway banisters, and POS systems.
• Frequently used items such as towels in the kitchen and pens in the front of the house should be given out with the names of staff members written on them. Viruses thrive in damp towels, so make sure that the staff is aware of this and that they trade in their towels for new dry ones on a regular basis.
• If you offer family meal style food or group appetizers, nudge your guests to avoid double-dipping by supplying an abundance of utensils and small plates. Consider creating individual serving size portions.

• Put a sign up for both guests and staff reminding them to avoid touching their face, including rubbing their eyes, and washing their hands frequently, particularly after touching surfaces that are commonly handled. Single-use gloves in the kitchen are always a good idea as well as a reminder to follow established hygiene practices by washing their hands before handling food, after using a tissue, coughing or sneezing, and after eating or drinking.
• Retrain staff on the basics of good hand washing practices which includes scrubbing in between fingers, under nails, and washing for a minimum of 20 seconds.
• Masks, on the other hand, may not be very helpful, and are a visual reminder of the reason that many people have opted to forego dining out for now. If one of your staff comes to work with signs or symptoms of an illness, it’s best to send them home. In this day and age of labor shortages, it can be tempting to ignore the signs that an employee is sick, but your guests and other employees will appreciate your consideration regarding their health and well-being.
• With the current estimated incubation period (time of exposure to the development of symptoms) of the coronavirus ranging anywhere from 2 to 14 days, people may be contagious before they even know that they are sick. Because of this, those in the hotspots, such as McDonald’s, have gone so far as to measure the body temperatures of all employees when they get to work.

Keep in mind that, while some people are putting in their online orders for masks, meals, and services, and avoiding human contact as much as possible, others are wondering why mass hysteria seems to be setting in.

Just to put things into perspective, last year’s flu season resulted in approximately 34,200 deaths in the U.S alone. While this may do little to ease your fears regarding an unknown virus and its potential mortality rate, numbers like this remind us that we live in a world inundated with viruses, bacteria, mold, fungi, and tiny insects that we cannot see, but can kill us. Feel better?

While it’s important to take necessary precautions, it’s also wise to maintain calm amidst a storm of unending end-of-the-world diatribes. The unknown has always had the ability to take our minds and run with the worst-case scenarios. While we don’t know when the virus will die off or the final toll it will take, we do know that, as with any virus, by taking necessary precautions, we can minimize the risk to both our customers and employees.

Consolidated Concepts & Georgia-Pacific have teamed up to help stop the flu this year. We’ve put together a special lineup of products for this winter season to ensure your operation survives this flu season completely germ free. Check out the video below to learn how to fight the flu this season.

Products Featured:

Georgia-Pacific SmartStock

Georgia-Pacific enMotion®

 

At the recent Restaurant Leadership Conference (RLC), leading industry experts discussed how they’ve increased their bottom line by adopting several cost-cutting techniques. One of these, in particular, stood out—dispatch delivery services.

Jason Morgan, CEO of two emerging fast casual concepts—Original Chop Shop and Bellagreen—shared what he saw as one of the greatest challenges facing restaurants—third-party delivery costs. In just the last two years, he’s seen third party delivery fees go up from 100 to 300 basis points.

It’s a service that is a growing in demand. In fact, digital ordering and delivery have grown 300 percent faster than dine-in traffic since 2014, with over 85 percent of restaurant customers using off-site delivery services on a monthly basis. By the end of 2020, it’s expected that the sales provided through third-party delivery providers will grow to about 9.7 percent of total restaurant sales.

Unfortunately, the restaurants using third-party delivery services often pay a hefty fee—up to 30 percent. In a survey conducted by Hospitality Tech, 82 percent of restaurant operators thought the fees for these services were too high and over 30 percent went so far as to say they weren’t worth it.

In order to combat these rising costs that were proving disadvantageous to the restaurant’s bottom line, Morgan began using dispatch programs, shifting their customers from the third-party delivery sites to the restaurant’s website or mobile app. Every order they get that comes through the restaurant instead of a delivery service such as GrubHub or DoorDash, saves the restaurant between 20 to 25 percent. In addition, they, instead of the service provider, now have the customers’ data.

What is a Dispatch Program?

Using a dispatch program may well be the answer to increasing customer delivery demands, particularly for those restaurants that do not want to develop an in-house program that requires the use of their own drivers. Going this route is especially challenging due to the continuing labor crunch. A delivery program allows customers to place a delivery order on a restaurant’s website or app. The order is sent to the restaurant and dispatched for delivery. In essence, orders are processed just like all other online orders, except a delivery courier makes the pickup instead of the customer. Customers, instead of restaurants, pay the delivery fee. Currently, Morgan is using Olo as their dispatch provider.

Olo

Olo, a digital ordering provider for restaurant brands, announced the addition of Dispatch in the fall of 2015. It offers a service that is fully integrated into a restaurant’s point-of-sale (POS) system. The service allows guests to track their delivery from the minute it’s ordered, to the pick-up by the courier, and the course the driver takes as they travel to the customer’s home—all from the restaurant’s digital ordering site or mobile app.

In order to accomplish this, Olo relies on a network of delivery service providers to obtain the best delivery fee. According to SmartBrief, they have also developed an index called the Delivery Search Score. This index counts the number of times an online search for a restaurant’s name plus the term “delivery” leads directly to a restaurant’s website. According to the data obtained, the top 300 restaurant brands are performing at less than 30 percent of their potential. In other words, 70 percent of the time these types of searches will take the customer to third-party sites instead of directly to a restaurant’s website.  

Noah Glass, CEO and founder of Olo, compared this to the rise of the third-party marketplace in the hospitality industry when sites such as Hotwire and Travelocity became the primary choices for customers looking to make reservations.

Olo is currently being used by brands such as Wingstop, Chipotle, and Five Guys.

Of course, not every restaurant is in a dispatch delivery zone. There are, however, some restauranteurs that are coming up with other creative solutions to this current pain point.

Food Trucks as Delivery Providers

Wayback Burgers is a growing fast-casual franchise concept that specializes in burgers and shakes. They currently have about 155 locations in the U.S. and several others around the world including Canada, Saudi Arabia, Kuwait, and Morocco. The company plans to open another 275 restaurants in the U.S. within the next five years.

They are testing the use of mini food trucks, that run on electric and propane, as vehicles for delivering to-go orders placed via a proprietary app. The customer’s food is not cooked until the truck arrives at their home or business—say goodbye to soggy fries. They are hoping to license this idea to other brands as well—such as those that are having trouble with the high third-party delivery fees or the customer experience that is sometimes lacking in quality or timing. The branded truck also acts as a moving marketing billboard. While this mode of delivery is currently available to franchisees, it is not mandated.

With the demand for delivery expected to grow by over 50 percent by 2021, it’s clear that restaurants can no longer ignore this growing aspect of their business. According to Warren Solocheck, NPD Group’s senior vice president, “Delivery has become a need to have and no longer a nice to have in the restaurant industry…It has become a consumer expectation.” It’s also clear that restaurants are starting to look for alternatives to what was once considered an easy approach for integrating delivery services, third-party delivery companies. A dispatch program may very well hold some promise for those looking to develop or reorganize their existing delivery services.

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New Year’s Eve, 2018, saw restaurant sales increase by 5 percent when compared to average December sales minus holidays, according to Toast’s New Year’s Eve and New Year’s Day Restaurant Trends. Not an astronomical jump, but worthy of some additional restaurant marketing strategies on one of the most celebrated holidays of the year.

Here’s another interesting statistic that will help your promoting strategy, peak hours for restaurant sales were 1pm, 7pm, and 8pm, and continued on a steady course until the ball dropped. Some more good news? The average check size increased by 12 percent!

So, just how do restauranteurs get their share of sales for the last night of the year? Here are a few tips:

1. Entertainment. If there was ever a night to consider adding some type of entertainment to your venue, this is it. Consider live music, a magician, or a wandering minstrel. Immerse your guests in a unique experience and transform your establishment for one evening of pure joie de vivre by hosting a costume/masquerade ball. Let your imagination be your guide.
2. Interaction. This is the night when people muse about the past and dream about the New Year about to unfold before them. It’s a time to celebrate, put on a party hat, and engage with others. To that end, many people will be looking for venues that provide this type of atmosphere. Consider a cocktail party—perfect for kitchens that are practiced in the art of creating unique and delectable tapas.

What are a few of the most successful restaurants in America doing for New Year’s Eve? Tao Las Vegas in the Venetian Hotel, with annual sales that reach over $43 million, is bringing in the New Year with Grammy Award-winning entertainment, three hours of decadent hors d’oeuvres, two hours to enjoy their premium open bar, and a Champagne toast at midnight.  

Joe’s Stone Crab in Miami Beach is offering a Special Limited Menu for the big night, which they’ve already posted on their Facebook page—one that had almost 32,000 likes three weeks before the big event.  Well done, Joe!

With some planning and social media strategizing, New Year’s Eve can be not only a night to remember, but a profitable end-of-the-year bash that brings in both old and new guests. The question is, now that the holidays are over, how do you keep these guests returning and more new guests heading through your doors?

Marketing for the New Year

One of the first rules of marketing is to define your target—who are you marketing to? As the New Year begins, it’s safe to assume that many people will be thinking about new beginnings and making this year better than their last. Exercise and healthy eating will be first and foremost on many of your guest’s lists of resolutions. To help them achieve their goals, consider putting together Limited Time Offers (LTO) that focus on healthier options.

Restaurant Business reported on Technomic’s Healthy Eating Consumer Trend Report which revealed the foods that the newer generations consider “health conscious” choices. These include food and drinks that are plant-forward, antioxidant-rich, immune boosting, high in protein, and gut-friendly. Ingredients that consumers look for include unique fruits and vegetables rich in antioxidants such as goji berries, acai, and chia seeds. Fermented foods high in gut-healthy probiotics are also popular and include sauerkraut, kefir, kimchi, miso, and kombucha.

Healthier options are as much about what you don’t choose to put into your mouth. To this end, many restaurant guests are searching for establishments that make it easy for them to avoid gluten, dairy, or fried foods by offering alternatives. And for those looking to cut their calories, consider offering “half portions” or a selection of tapas or small plates.

After you’ve developed appealing special offers for the New Year, be sure to shout them out on your social media platforms. Take pictures of those new healthy entrees and beverages and post them on Facebook, Instagram, and Snapchat. And don’t forget to tweet about it! And then, remember to engage. According to Forbes, 71 percent of customers are more likely to recommend a company that quickly replies on their social media messages.

If you’re a hands-on, chef-entrepreneur, consider teaching your guests how you create those memorable, healthy meals by offering a cooking class that includes wine-pairing. Joy is shared, and you can be certain that your students will be talking about the meal they learned to create and the fun they had doing it at your increasingly popular restaurant.

Happy New Year!

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Earlier in 2019, at the Restaurant Leadership Conference, industry leaders discussed the all-important fat bottom line. Instead of focusing on growing revenue, however, this discussion revealed important cost-cutting techniques designed to maximize savings and increase profits.

Let’s take a look at what these leaders consider the biggest impact on overall profit.

High Rents

Jason Morgan, the CEO of two emerging fast casual concepts–Original Chop Shop and Bellagreen—sees high rent as one of the biggest challenges that restaurants are currently facing. He believes that this is due, in large part, to the flood of money that hit the industry from the private equity sector over the last five years.

While some entrepreneurs and mega-corporations are willing to pay the price, others understand that, at a certain point, the risk is greater than the reward. Jason is one of those—a CEO who is willing to wait for second generation sites.

Which leads us to the solution for this pain point that many restaurants are facing—patience. Companies are waiting it out, allowing others to sign bad deals that will ultimately lead to second generation space.

Third-Party Delivery Fees

Like many in the restaurant industry, Jason sees third-party delivery fees as unsustainable. In his business, he’s seen these costs go from 100 to 300 base points over the last two years. The problem is that restaurants are feeling pressured into providing this service due to consumer demand, but, considering the rising fees, delivery using third-party services does little to fatten up the bottom line.

One solution is dispatch operations such as Olo. Using these dispatch companies, Jason shifted customers from third-party sites to the restaurant’s site, paying 10 percent per order instead of the commonly charged fee of 30 percent from third-party services. Customers simply order and pay on a restaurant’s existing digital ordering site, and the best-matched quote from an available delivery service provider pops up and is scheduled.

The Numbers

Jason Tipp, an entrepreneur in the Food Service industry and past CEO of Florida-based Pincho, a Latin American street food concept with 12 units, explained that the founders of this successful chain were not from the restaurant industry. Because of this, numbers such as prime costs and food cost were not prominent in their considerations. Once he came onboard, he stressed the importance of these numbers and developed stronger operations in order to reduce these costs.

One simple approach they took was enabling the general managers to really see the operations from the bones up in order to determine how to create a more efficient operation. They examined how long it took to do prep in the morning, how long it took to close a restaurant after the last guess was served, and how many employees were needed for these activities. From there, they were able to develop clear, cost-saving guidelines for their units.

Their other goal was to get their food costs in order—adding up the food they sell, the food they buy, and determining the percentage in sales, which required costing out all of the recipes. As Jason states, “You can’t ask a general manager to hit 28% food costs if the reality is based on input costs in your recipes that is 35%.”

Eric Sheen, CEO of Restaurant Partners Procurement, also see’s food cost as an operational issue. He puts it in terms of the 80/20 rule. In other words, only 20 percent is your actual cost while 80 percent is all operation controls. Therefore, it there is a food cost issue, the problem often lies in the operation, not the distributor.

One of their solutions is switching recipe measurements from ounces to grams, which is a more precise method. He also recommends investing in digital scales. Another area in operations that accounts for an increase in costs is pricing differentiation between the menu and the POS system. An example he uses to describe the impact that occurs when you don’t correlate the two is this: Iced tea was increased by 20 cents which was addressed on the menu, but not in the POS. Say you sell 50,000 iced teas—that’s $10,000 missing from the bottom line.

Another common error is not getting all the items, such as drinks, on the bill. To combat this, some POS systems won’t let your servers send an order to the kitchen before drinks are run up on the check. If the guests are only drinking water, you can put it in at zero charge.

There are a thousand tiny details that go into ensuring the highest profit margin. Another example Eric shared comes from an organization that sells 10 million pounds of chicken wings a year. They pulled out a couple of cases and found that the case count was at about 200, but their spec was for a 240-wing count. The wings had gotten bigger over the years, but the establishment sold by wing, not weight. They estimated that, over the last four years, they had lost about 1.4 to 1.8 million dollars a year.

Contracts

Vince Purves, President of Consolidated Concepts, the largest Group Purchasing Organization (GPO) for multi-unit operators in the U.S., is very familiar with distribution contract negotiation. He notes that it’s easy to negotiate your contract and then ignore it until it’s ready to expire some three years later. It is better, however, to remain engaged with your distributors throughout the year.

In actuality, the supply chain is affecting your cost of goods from multiple avenues including the shortage of drivers in the trucking industry to the price of fuel and insurance. There is much more to rising costs than just the cost of the product itself.

The question becomes: How do you hold distributors accountable to contract prices?

Vince finds that auditability is a key component. “Really make sure what you have from a contract standpoint, whether it’s your distribution or it’s your manufacturer cost contract, is truly and accurately in the system.” Don’t assume that distribution prices are correct. As with most data, it takes a person to key it in, and people are human and prone to mistakes. That’s one of the roles we assume at Consolidated Concepts, making sure our client’s systems are right, their prices are correct, and holding them accountable.” With increasing costs in real estate, products, and labor, it’s clear that restaurants looking to increase their profit margins must maintain tight operational guidelines and develop key relationships in the distribution sector. Consolidated Concepts can help reduce both food and distribution costs—keys to a fat bottom line.

Another avenue that restaurants are turning to is working with third-party consultants that help them develop a supply chain that can stay ahead of weather-related opportunities and challenges. Consolidated Concepts specializes in streamlining the supply chain for multiunit brands through the use of technology, partnerships, and procurement specialists.  

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The warm days of summer have given way to the crisp days of fall. In the not to distant future, meteorologists will be discussing arctic blasts, whiteouts, and blizzards that have left motorists stranded.

So, what does a restauranteur do when one of those stranded trucks is carrying their much-needed supply of fresh food? What contingencies are in place when rain-drenched California leads to a gap in the supply chain when it comes to fresh fruit, tomatoes, and artichokes?

If those in charge of operations haven’t bothered to look ahead, managers will find themselves apologizing to numerous unsatisfied customers and owners will find their profits falling.

While weather is hardly predictable, you can be certain that supply chains will be affected at some point in time by the coming winter. According to Resilinc’s Supply Chain Annual Report, 2018 saw global supply chain disruptions increase by 36 percent, in many cases due to extreme weather events.

Here are the steps you can take now in order to weather (pun intended) the storms ahead.

The Contingency Plan

Take an in-depth look at your needed supplies and the items on your menu that are most susceptible to a disruption in the supply chain. Then, develop a plan that takes into account weather variables that the winter season brings and find options when it comes to both supply and demand. Where there’s a will, there’s a way. Here are five points you’ll want to consider when developing your backup plan.

Substitutions

Accept the scenario that, at some point in the years or months ahead, products and ingredients that are key to your menu will be unavailable. Winter months can particularly disrupt those that have based their business model on the farm-to-table concept with a focus on sustainability and supply chain transparency. Locally sourced produce, meat, and seafood can be difficult to substitute when faced with a winter weather event.

On the other hand, produce derived from national suppliers can travel, on average, about 1,500 miles before arriving at its destination, making them more susceptible to weather-related events related to travel.

For these reasons, it’s important to develop long-term, strategic partnerships with both primary and secondary suppliers—both national and local. Look for suppliers located in different areas or those with varying growing techniques such as the use of greenhouses, warmed by the sun, or hothouses, heated by artificial sources.

After updating your supplier list, take a look at substitutions within your menu. When the summer of 2019 saw an avocado shortage that led to a 129 percent increase in pricing, some restaurants banned the delectable fruit altogether, switching out items such as guacamole with a cheese and bean-based dip or a “mockamole” made with green veggies and peas. Others chose to fool the public with “fake” guacamole made with calabacita, a Mexican summer squash. Probably not the best choice. 

Weather Alerts

Get a map out and pinpoint where all your key supplier’s manufacturing locations originate. Then, set up weather alerts for the areas that will most impact your supply chain. Once you have this visual in place, it’s much easier to find alternative suppliers in areas that would not be affected by the same weather events. The Business Continuity Institute (BCI) found that almost 70 percent of businesses did not have full visibility of their supply chain. Make sure that you fall into the 30 percent that do.

Build a Team

Being proactive requires developing a qualified team that is ready and trained to step up to the plate when a restaurant’s supply chain is threatened. Your supply chain management team should include disaster response—with each member understanding their role in managing and helping the organization through a disaster or weather-related event. One member may take the lead in contacting suppliers on the substitution list while another may procure space for protecting perishables should the disaster strike close to home.

Technology

Technology offers tremendous support in this area. Centrally storing all procurement data optimizes a restaurant’s ability to respond to supply chain disruption, particularly those with multiple locations. According to the BCI, organizations with technology embedded into their supply chain are much likelier to have business continuity arrangements.

Supplier management software can help a restaurant maintain real-time visibility into their supply chain.

Third Party Consultants

Another avenue that restaurants are turning to is working with third-party consultants that help them develop a supply chain that can stay ahead of weather-related opportunities and challenges. Consolidated Concepts specializes in streamlining the supply chain for multiunit brands through the use of technology, partnerships, and procurement specialists.  

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With the world watching Hurricane Dorian’s path along the Southeastern seaboard, restaurant operators are bracing for a storm of their own. In the world of food costs, Mother Nature is often the one x-factor that no one can control.

While commodity experts have projections on what they think will happen with crops each year, nothing can put a wrench in those plans quite like drought, floods, hurricane’s, freezes, or any other natural disaster.

So, when it comes to risk management, having a contingency plan for weather-related challenges should be top of mind, especially now. Citrus crops, avocados and anything else that grows in moderate temperate climates, specifically in Florida, are at risk. However, operators can pass through these unavoidable implications if they take the necessary steps to protect themselves and their supplies. Here are some ways to prepare and minimize the impact:

1. Create an acceptable list of substitutions for key / high volume ingredients that are critical to your menu. Examples of this include using blueberries in place of strawberries, plum tomatoes in place of layered tomatoes, and citrus grown in other markets.
2. Identify an alternative / limited menu in anticipation of certain products being unavailable. These can be used as limited-time offers until your original ingredients become available.
3. Pre-determine alternative sourcing for your top five to 10 critical items.
4. Adjust par levels and confirm the right pack size being used to minimize waste.
5. Utilize every and all local produce programs at your disposal.  The window of opportunity may be limited so work with your produce supplier to determine best opportunities.
6. If you can, use a frozen product in recipes that can easily accept them.
7. If you have room, plant a small garden inside your restaurant and capture the “grown here” flavor. While it may take some time for these plants to grow, you can always buy something that has a crop readily available.
8. Look to use greenhouse type products in your menu. This can definitely be done where herbs or other hybrid varieties of produce can be found.
9. Maintain flexibility whenever possible on menus. Avoid specifying particular vegetables or fruits whenever possible.
10. Look at alternate pack sizes that may be more cost friendly.

Nobody can truly predict what Mother Nature has up her sleeve. But by having a plan before the next natural disaster occurs you can better protect your ingredients, menu items and customer expectations. In regard to Hurricane Dorian now, have an alternative plan of action so your menu items and customer base have little cause for concern.