FEATURE STORY
Would you like greater profits?
By Terri Melincoff
The answer is obvious, but few restaurants are achieving this goal. Let’s face it: in today’s economy adding a few extra pennies of profit is not a luxury that many of us can afford to overlook. The system that I suggest implementing to achieve greater profits is referred to as menu engineering. There are a lot of variations on the original system, developed in 1982 by Michael Kasavana, Ph.D., and Donald J. Smith at the Michigan State University School of Hospitality Business, but all have the same intent.
To receive a Michigan State University School of Hospitality Business menu engineering worksheet, e-mail abrenon@santemagazine.com.
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A Winner's Tale
By Elaine Khosrova
On a steamy Friday afternoon this past summer, while many of Daniel Boulud’s well-heeled Manhattan regulars were heading to the Hamptons for to their Hudson Valley hideaways, the four-star chef is fast at work in the “crow’s nest,” his tiny office perched above the gleaming kitchen at Daniel restaurant on East 65th Street. Keeping a bird’s-eye view on his team as they prep for dinner service, Boulud navigates the usual course of meetings, phone calls, interruptions, and decision making required to keep his celebrated culinary empire well afloat. “I never take my winner’s success for granted,” the chef remarks with characteristic good humor. Despite more than a decade and a half at the top of the restaurant charts, Boulud contends, “We don’t rest on our past achievements.”
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Inside the Immigration Issue
By Laura Taxel
In conversation, the first thing Jose Romero does is apologize for his English. But there’s no need; it’s almost perfect. He took classes while putting in 60 to 70 hours a week as a dishwasher in a Chicago restaurant. That was 14 years ago. He was 17, destitute, and newly arrived from El Salvador. “I had to leave my country. My family had no money, no place to live, and I had to help,” he discloses.
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Tune Up, Cheer Up, & Motivate Your Staff!
By Evan Goldstein, MS
It’s been said that you can tell the mood of a chef by eating his or her food. Similarly, it’s been argued that winemakers and their wines resemble one another. And for restaurant staffs, the attitudes of managers are reflected in the demeanor of employees under them. Anyone who’s been in the restaurant business for even a little while has seen the signs of managerial burnout, which usually includes an uninspired, unmotivated, and uncaring attitude. It’s bad enough that such a manager is unhappy and probably not very effective. But what’s worse is that these negative attitudes trickle down the proverbial food chain. In the same way that children pick up and emulate the attitudes, perspectives, and even vocabulary of their role-model parents, restaurant staff take their cues from the top. In other words, you get the level of training and behavior you dish out and deserve.
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Learning to Cope
Across the country, restaurants are feeling the effects of the economic downturn. Where the economy has struggled longest, restaurants have been hit hardest. They’ve started taking reservations and adding value menus with phrases that evoke the Depression. And many restaurants say more customers are sharing appetizers, buying cheaper wine, ordering less wine and fewer courses, or just not showing up as much.
Find out other ways that they are coping
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Shrinking Checks, Expanding Hours
As restaurant check averages continue to decline, restaurateurs are having to develop other strategies for growing revenue, including expanding their hours of operation. Restaurants that once served two distinct meals a day, lunch and dinner, are acting more like diners, opening early in the morning and keeping their kitchens busy late into the night, and serving in the traditionally slow times between meals. And places that used to close one or two days a week to give the staff a night off now see that as a luxury they can no longer afford.
Read more about growing revenue by expanding hours.
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Forty Hours Doesn't Work for Everyone
Current economic conditions have caused many employers to reduce employees’ work hours—a trend that will likely continue if the economy worsens. Yet research on work hours is limited, as most studies in this area have focused on the effects of employees’ working in excess of a 40-hour work week. This report seeks to specifically examine the effect of “hours mismatch,” which is defined as the mismatch between the number of hours the employee desires to work and the actual number of hours worked.
Learn more about how to match your employees with the hours that they need.
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Economic Crisis Trickling Down to Restaurant Row
A recent Zagat survey is predicting lean times for New York eateries in the wake of the current economic crisis. Many of the more than 38,000 respondents indicated that they were eating out less often and frequenting less expensive restaurants when they do.
Read more about the challenges being faced by NYC restaurateurs.
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Without a Grain of Salt
First it was trans fats and then calories. Now New York City's Health Tsar is targeting salt. "In many ways, high blood pressure is a forgotten killer. It's the leading cause of early death in New York City and nationally," the city's health commissioner, Dr. Thomas Frieden, told The New York Sun. Find out more about the next dietary battle brewing in Gotham.
Find out more about the next dietary battle in brewing in Gotham.
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Brunch, Exciting and New, Come Aboard
There are many new culinary trends taking to the sea this season. This year it is not just about what we're eating, but when we're eating. The flexible dining revolution has taken hold, forever changing the way hungry cruise travelers think about dinner.
Read more about changes to seafaring fare.
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Shifting Gears in L.A.
As the economy continues to decline, many of Los Angeles' more prominent and pricey restaurants are retooling their menus in an effort to make fine dining more affordable. One tried-and-true method of dealing with economic downturns that's sure to come back is serving less expensive but still delicious cuts of meat. After the stock market crash of 2001, hangar steak seemed to be everywhere and pork belly became the new foie gras.
Find out what other changes are in the works.
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Healthier Meals To Go
A recently launched iPhone application may be just the thing for diners who are looking for healthier fare. WebDiet has two major components. The first, called Mealsearch, is built to help people find healthy restaurant food no matter where they are. The second major part of the service, which works in combination with Mealsearch, is a meal-by-meal guidance system.
Read more about how to eat healthy on the go.
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Opening for Business in Cyberspace
Many restaurants would benefit from setting up shop on the World Wide Web but have not done so due to concerns about time and expense. A new website builder designed for the restaurant owner is now available to make the process less expensive and more convenient. Letseat.at is a free online website builder for the restaurant industry that doesn’t require any knowledge of HTML or code. After registering with the site, restaurant owners can create and maintain their restaurant’s website with the help of a simple admin console.
Learn more about getting started.
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Food To Go
As more and more chefs and consumers focus on buying fresh, locally-grown ingredients, the concern over "food miles" has increased. The average distance between farm and plate is most commonly quoted as being 1,500 miles, but is it accurate? The answer is "sort of" – and only if you live in Chicago.
Read more about the road trip our food takes.
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Today's Forecast
Cornell University's Center for Hospitality Research has recently issued a report regarding methods of forecasting covers in hotel food and beverage outlets. In this report, they explain the findings that a lodging property can generally use information on its occupancy to improve the accuracy of cover forecasts in its food and beverage outlets
Learn more and obtain a copy of the full report.
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Celebrity? Yes. Sanitary? Not So Much.
A recent study conducted by Texas Tech University measured the food safety procedures of many popular cooking shows and found them to be greatly lacking. “We realize these are time-limited entertainment programs and not documentaries, but some food safety behaviors could be better incorporated,” said Cindy Akers, associate professor and director of the College of Agricultural Sciences and Natural Resources Student Services Center.
Learn why celebrity chefs should not necessarily be role models.
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Tipped Off
A number of New York's top restaurants are being accused of stealing tips and cheating employees out of wages. In June, a New York judge approved the first payment of a $3.9 million settlement for workers at a local restaurant chain that may serve as an indication of what is to come.
Find out more about this growing controversy.
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How Do You Stack Up?
The National Restaurant Association is currently seeking insight on salary and benefit trends. Restaurant operators who complete the survey by October 10 will receive a free copy of the report which can help employees and employers see how their current programs stack up against the competition.
Find out more and complete the survey.
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Avoiding Sticker Shock at the Plate
How many times are diners presented with the nightly specials, including every minute detail possible regarding ingredients, origin and preparation. Every detail, that is, except the price. Now a New York legislator is looking to change this, proposing a law that would require restaurants to divulge the prices of specials not listed on menus.
Find out more about about this proposed legislation.
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Is Culinary School For You?
Aspiring chefs have hundreds of culinary schools available to them, however, some of them might be better served by getting a kitchen job in a real-world restaurant instead. Which choice is right for you?
Read more about the pros and cons of each path.
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Everyone's a Critic
In an effort to separate themselves from other restaurant customer review web sites, such as Zagat.com, Yelp is now featuring the opinions of a select few. Yelp identifies its most consistently praised, prolific and witty reviewers as members of the “Yelp Elite Squad.” The company says it looks for those possessing “a certain je ne sais quoi — we call it Yelpitude.”
Read more about new ways to find a restaurant.
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So You Want To Be a Restaurateur?
Wide exposure to celebrity chefs through the Food Network and other venues has not only led to an increase in the number of would-be chefs – it has also created a surge of budding restaurateurs. Should you consider opening your own restaurant when "two of every three new restaurants, delis and food shops close within three years of opening, according to federal government statistics, the same failure rate for small businesses in general?" Perhaps.
Consider what you should consider before starting up by reading more.
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To Get Customers to Spend More, Drop the Dollar Signs
Researchers at Cornell University found that restaurant owners who drop the dollar sign from their menus got clients to spend more — $5.55 more per meal on average, to be exact. (Or should that be 5.55?) The researchers noted that just seeing the dollar symbol agitated diners so much that they spent less.
The findings will soon be published by the International Journal of Hospitality Management, according to a recent article about the study.
Read more>>
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Focus on Food Allergies
Faced with a growing awareness of food allergies and intolerances and their associated risks, restaurants are developing new strategies to avert reactions to common culprits, like peanuts, gluten and dairy. Independent restaurants and chains alike are finding new ways to alert guests and accommodate their needs in an effort to protect their health and enhance the dining experience.
Learn more about some best practices being implemented.
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Breaking with Tradition
The average American restaurateur is fortunate to be able to take a week's worth of vacation. By the same account, it is not uncommon for their European counterparts to vacation for weeks on end every summer. Should Americans follow their lead? That is largely out of the question, says John F. Foley, the restaurant adviser for Allbusiness.com. The Europeans, he scoffed, “don’t have a Cheesecake Factory down the street from them.” Still, some of the benefits may outweigh the risks.
Read more.
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What to Drink: Bottled vs. Tap
Concerned about the cost of bottled water -- and its environmental consequences, many people are turning back to tap water to quench their thirst. But as evidence mounts of contaminants in public systems, unease about the water supply is growing. So which is the better option for your guests? It all depends on your point of view.
Read more>>
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Tools for Foodies on the Move
Crave: The gadget blog, recently analyzed a variety of tools for traveling diners, such as Yelp and Urbanspoon for iPhone and Zagat To Go for Windows Mobile, Palm, and BlackBerry, and wondered how relative newcomers Munch and LocalEats compare to these more established services.
Learn more about how consumers are finding restaurants on the road.
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Pitfalls of Loyalty Programs Examined
Nowhere are loyalty programs utilized more than in the hospitality industry. However, a recent study by the Cornell University Center for Hospitality Research indicates that these programs may make little difference in overall sales results. According to the report, marketers should be focusing their attention on brand penetration rather than purchasing frequency in order to gain a competitive advantage.
More>>
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Mid-Year Review of the Restaurant Industry and the Economy
To date, 2008 has been challenging for the restaurant industry. The overall outlook does not look encouraging but there are a few bright spots. While the industry is facing slowed consumer spending, rising wholesale food prices and an uncertain economy, it is also seeing increases in employment compared to the national economy. Sales in food and drinking establishments outpacing retail sales growth for 2008.
View the Report>>
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Rodney Strong Vineyards to Change Name to Reflect Company’s Heritage and Vision
Tom Klein, owner and chairman of Rodney Strong Vineyards since 1989, announced that the company has changed its name to Rodney Strong Wine Estates. Klein said, “This name recognizes the evolution of our company. It maintains a connection to our founder, Rodney Strong, while more accurately reflecting our future.” Klein also stated that, “Rodney Strong Vineyards will continue as our primary brand just as consumers know it today. The business name simply acknowledges our growth, which includes two new important brands.”
Rodney Strong Wine Estates’ portfolio includes Rodney Strong Vineyards, Davis Bynum and Sonoma Vineyards. Long time winemaker, Rick Sayre oversees all winemaking for the company and remains the winemaker for Rodney Strong Vineyards. Gary Patzwald is the winemaker for Davis Bynum and winemaker in charge of the company’s winery within a winery, a small-lot facility that focuses on single-vineyard, reserve and proprietary bottlings. Sonoma Vineyards is made by associate winemaker, Greg Morthole.
“The slight shift in our company name is deliberate,” says Carmen Castaldi, Senior Vice President of Marketing and Sales. “It acknowledges the history of our flagship brand as well as our growth, which includes our recently launched, Sonoma Vineyards as well as last year’s acquisition of Davis Bynum.”
There will be no change in the company’s strategy, which focuses on Sonoma County. Rodney Strong Vineyards has an array of wines, from the Sonoma County tier to very high-end, single vineyard bottlings; all exceptional wines that emphasize great varietal character and a sense of place. Davis Bynum spotlights the unique terroir of Russian River Valley with Pinot Noir and Chardonnay for the on-premise sector. Sonoma Vineyards focuses on fresh, vibrant wines with screw-cap closures targeted to the broad market (on and off premise), for today’s emerging wine consumer.
Go>> Rodney Strong Web Site
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Restaurants Struggle Over Healthy Menus
Providing healthier menu choices can be difficult for restaurants as consumers give them mixed messages, according to research from Restaurant & Institutions. While restaurants' customers talk about a desire for healthier meals they consistently make traditional, unhealthy selections from the menu. Philadelphia-based Aramark’s annual Nutritional DiningStyles research suggests that consumers are increasingly looking towards restaurants to guide them towards more healthful choices.
More>>
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Cornell Sponsoring Research on Hotelier Issues
Cornell's Center for Hospitality Research is sponsoring a research project that seeks to identify key issues of concern for hoteliers throughout the world. The study will be conducted by Professor Cathy Enz, who investigated this question in a similar research project in 2001.
“Our goal is to determine whether a common set of shared problems is impeding the ability of hotel industry leaders to manage effectively,” noted Enz, who is the Louis G. Schaeneman, Jr. Professor of Innovation and Dynamic Management at the School of Hotel Administration.
Enz noted that much has happened since that original survey. “In addition we hope to determine whether the hotel industry's major issues today are the same as they were early in 2001,” she continued. “At that time, the most worrisome issues involved the effective use of human capital, and the most pressing issue was attracting talented people.”
This new study will use a brief on-line survey to determine what experienced managers consider to be the thorniest issues that they encounter. “It is important that thoughtful managers take time to respond to this important survey,” said David Sherwyn, academic director of the center. If you would like to participate in the survey, please go to surveys.
The original survey results were published in the April 2001 issue of Cornell Hotel and Restaurant Administration Quarterly, while the results of the 2008 study will be available on the Cornell Center for Hospitality Research website.
Cornell Center for Hospitality Research Website
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It's About Time: Great Recipes for Everyday Life
Michael Schlow
Steerforth Press
Chef Michael Schlow has written a perfect cookbook for consumers, which makes it a must-read for any professional chef considering the publishing path. Included are more than 150 recipes that range broadly from 30-minute meals to elegant dinners to slow-simmering comfort foods. The chef has a warm, funny, and intimate writing style that makes his informative sidebars and stories instantly credible and a treat to read.
Buy at amazon.com >>
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Why do we give a $2 tip to the waitress in the coffee shop who brings us eggs and refills our coffee cup four times and a $20 tip to the waiter who pops open a $100 bottle of wine? The question of who we tip and how much has no clear rules or answers.
In a decision that could set the stage for a test of a long standing federal labor law, a panel of federal judges found earlier this month that San Francisco had the right to charge employers to help pay for its universal health care plan, the first in the nation.
Building or remodeling a restaurant is a process that is fraught with potential pitfalls. You will be faced with a contract whose terms will impact both your operations and your budget. Having a lawyer review your contract can help you anticipate the items that could make the difference between success and disaster.
