40 hours is full-time

The Affordable Care Act needs a check-up, the National Restaurant Association and American Hotel & Lodging Association said in a joint op-ed today.

One top concern: The health care law defines full-time as 30 hours a week.

"The ACA changed the definition of a full-time employee from someone who works the traditional 40-hour workweek to anyone who works 30 hours a week," NRA President & CEO Dawn Sweeney and AH&LA President & CEO Katherine Lugar write in The Hill. "Instead of benefiting workers, this provision is actually harming them ... Businesses of all sizes are having to reduce the hours of workers who had been working 40 hours a week."

The ACA's full-time definition affects which businesses are considered large employers, and which employees must be offered health coverage. The law exposes large employers to possible fines if they don't offer health plans to full-time employees and their dependents.

The ACA's so-called "employer mandate" covers businesses with the equivalent of 100 full-time employees this year, and employers with 50 to 99 full-time-equivalent employees starting in 2016.

The NRA supports bringing the ACA's definition of full-time employment more in line with traditional workplace standards. The House passed a bill in January to make the change, and more than 30 senators are now sponsoring the bipartisan "Forty Hours is Full Time Act" in the Senate. The NRA is a lead member of the "More Time for Full Time" initiative.

Read more about the impact of the ACA's 30-hour definition on restaurant and hotel employers.

Over 600 women promote menu of opportunity provide by restaurant industry in open letter to policymakers

Today, National Restaurant Association President and CEO Dawn Sweeney unveiled an open letter to policymakers signed by more than 600 women stakeholders hailing the value of restaurant jobs and careers.

Restaurants, like no other industry, offer essential opportunities to women such as flexible hours, valuable skills and a career path without limitations. The letter, signed by women from around the country at all levels within the industry, and those who got their start in the industry, also tells the story of how women contribute to the economic recovery and growth of economies small and large.

“When the 114th Congress convenes in January, it will include, at a minimum, a record 101 women in its ranks,” Sweeney said. “That’s good news, but even more impressive numbers can be found in the restaurant and foodservice industry, where the real-life success stories show there is no limit to personal dreams and hard work. Restaurant jobs provide opportunities for women of all backgrounds and experience levels, helping them gain the experience they need to jumpstart careers or the ability to advance toward management or executive positions more quickly than most other industries.”

The restaurant industry encourages diversity and is a place where women advance to management and leadership roles in large numbers. In their letter to policymakers, individuals across the industry and beyond highlight the important ways restaurants are working for women. Letter highlights include the following: 

·         61% of women have worked in the restaurant industry.

·         37% of women say the first job they ever held was in a restaurant, providing a first start and career advancement for millions of people.

·         45% of restaurant managers are women compared to an average of 38% in other industries.

·         More than half of U.S. restaurants are owned or co-owned by women. 

·         Women-owned businesses are growing at a faster rate than the overall restaurant industry.

·         92% of women who have worked in a restaurant say the industry is a good place to get a first job and learn valuable skills. 

NRA partners with SBA to boost dining out on Small Business Saturday

The U.S. Small Business Administration (SBA) Administrator, Maria Contreras-Sweet, announced that the federal agency is partnering with the National Restaurant Association to promote dining out during Small Business Saturday on November 29th. The partnership will amplify restaurants during the national push to support our nation’s small businesses on the busiest shopping weekend of the year.

“Local restaurants pack a big punch to our nation’s economy, as part of the economic powerhouse that is American small businesses. The restaurant industry is projected to add 1.3 million jobs over the next 10 years and to project $683.4 billion in total sales, equaling 4 percent of the U.S. GDP,” said SBA Administrator Maria Contreras-Sweet. “The SBA is proud to partner with the National Restaurant Association to champion this great sector of American small businesses.”

Dining out on Small Business Saturday will emphasize the accomplishments of small business restaurants across the country while encouraging consumers to patronize eateries in their neighborhoods. Restaurants are a significant factor in the nation’s economy as the industry’s economic impact is estimated at $1.8 trillion. Additionally, each dollar spent in restaurants generates an extra two dollars in sales for other industries, spurring economic activity in their communities and across the nation.

“Restaurants provide valuable jobs and careers for more than 13.5 million people and are strong economic engines in communities nationwide,” said Dawn Sweeney, President and CEO, NRA. “While the industry is the nation’s second-largest private sector employer, the overwhelming majority of restaurants, more than 90 percent, have fewer than 50 employees. The National Restaurant Association is pleased to join forces with the Small Business Administration to showcase the industry’s critical role in overall small business creation.”

Additionally, the SBA and the NRA are encouraging small business owners and community members to share success stories of restaurants in their areas on social media using the hashtag “#DineSmall.” This will allow communities big and small to come together and show their support for entrepreneurs across the country.

To encourage not only the public to dine small, but for restaurants to prepare for the busy day, the Small Business Administration will launch a social media campaign called #ShowUsYourMenu.   Restaurants are asked to create a special menu for Small Business Saturday and promote it on Facebook, Twitter and other social media sites to spotlight their business and remind everyone to #DineSmall while they #ShopSmall.

Visit the Small Business Saturday website for a list of participating restaurants.

The SBA is the voice for small business in the U.S.A. and advocates on behalf of 28 million small businesses, jumpstarting and nurturing their ideas. To learn more about support and products available to small businesses through the SBA, visit: www.sba.gov/<http://www.sba.gov/tools.

Support Small Business Saturday and dine local

With the holidays and Black Friday just around the corner, restaurateurs and retailers also are gearing up for Small Business Saturday.

Nov. 29 marks Small Business Saturday, the ceremonial kick-off to the holiday shopping season for small businesses across the United States, and the National Restaurant Association (NRA) is, for the fifth consecutive year, supporting the initiative. The event was created in 2010 as a way to support local businesses, which create the majority of job opportunities, boost the economy and preserve communities around the country.

According to the U.S. Small Businesses Administration, small businesses have accounted for 64 percent of net new private-sector jobs since 2012.

“We are proud to recognize the important role restaurants and other small businesses play in helping to keep our economy healthy,” said Dawn Sweeney, the NRA’s president and CEO. “It is no secret the jobs they create and culture they instill are crucial to the well-being of our communities.”

Learn more about Small Business Saturday here.

NRA & employer community launch initiative to restore traditional work week in Affordable Care Act

The National Restaurant Association along with organizations representing hundreds of thousands of employers and tens of millions of employees are launching the More Time for Full-Time initiative.

The initiative, which includes the International Franchise Association, the National Restaurant Association, the American Hotel & Lodging Association, the National Retail Federation, the U.S. Chamber of Commerce, the American Rental Association, the Asian American Hotel Owners Association, the National Association of Convenience Stores, the National Grocers Association, and the National Association of Theatre Owners, will highlight the negative impact the 30-hour work week definition in the Affordable Care Act (ACA) has on employees and employers, and urges Congress to restore the traditional definition of a full-time employee to 40 hours per week through bipartisan reform. Returning to a traditional 40-hour definition would benefit employees through more hours and income, and employers would gain the ability to focus on growth and expansion instead of restructuring their workforce.

The launch includes a video, which will be featured on the new website moretimeforfulltime.org that highlights the challenges workers and employers face as a result of the 30-hour work week definition.

“As the nation’s second largest private sector employer, restaurants provide opportunity to a workforce of over 13.5 million employees,” said National Restaurant Association President and CEO Dawn Sweeney. “The restaurant and foodservice industries are attractive to millions of Americans looking for flexible work schedules. As the current health care law stands, the artificially low bright line of 30 hours as full time, forces employers to limit that flexibility, stifling opportunity for expansion and job creation to the detriment of our workforce. Raising the law’s definition of full-time employee status to more traditional standard operating practices will alleviate the burden placed on restaurant operators. They can then continue to provide flexibility to their employees, grow their businesses and continue to be job creators.”

“As all Americans have known for decades, 40 hours represents the widely-accepted definition of a full-time work week. Unless there is a statutory change to the definition of a full-time employee in the ACA, there will be fewer full-time jobs, more part-time workers and fewer overall hours available for Americans to work,” said International Franchise Association President & CEO Steve Caldeira. “This initiative will bring greater focus to the negative impact this law is having for workers and employers and hopefully move us closer to the bipartisan reform we need.”

“The More Time for Full-Time initiative provides an honest look at how the new definition of a full-time employee under Obamacare is affecting men and women who work hard every day to care for themselves and their families,” said Katherine Lugar, president and CEO of the American Hotel and Lodging Association. “This short-sighted change greatly limits workers’ ability to maintain the flexible work schedule they seek in the hotel industry. Returning to the traditional 40-hour work week would restore opportunities for hard-working Americans, and allow hoteliers to better meet their employees’ needs.”

Restaurant industry ranks number one on this year's annual Gallup poll

The restaurant industry is regarded as the top business sector in America according to the results of the annual Gallup Work and Education poll released last week. Restaurants have remained one of the most highly viewed industries since Gallup started its annual poll of consumer perception of industries in 2001, re-claiming the top spot last held in 2007. In addition, this year’s poll recorded the most positive rating on record for the industry

“Restaurants are the beloved cornerstones of communities across the country,” said Dawn Sweeney, President and CEO of the National Restaurant Association. “From the local sandwich shop to the city steakhouse, the restaurant industry provides job opportunity to 13.5 million Americans and has become an essential part of our everyday lives.”

According to NRA research nine in 10 consumers say they enjoy going to restaurants and two in five consumers say restaurants are an essential part of their lifestyle. One half of all adults have worked in the restaurant industry at some point during their lives and one third of all Americans got their first job working in a restaurant.

As the nation’s second largest private sector employer, restaurants continue to be economic drivers, employing nearly 10 percent of America’s workforce.

In addition, more than nine out of 10 restaurants are actively involved in charitable activities. Collectively, the charitable contributions of the nation’s nearly one million restaurants are estimated to reach up to $3 billion each year.

The Gallup poll asks Americans to rate industries on a scale from "very positive" to "very negative." The computer industry is second to restaurants. 

National study shows majority of restaurant workforce sees industry as one of long-term career potential & upward mobility

National Restaurant Association Educational Foundation unveils most comprehensive restaurant industry workforce study in decades

Nine out of 10 restaurant employees say they are proud to work in the restaurant industry, while three-quarters believe the industry offers them a strong career path and upward mobility, according to a new workforce study released today by the National Restaurant Association Educational Foundation (NRAEF).  

As the most extensive research of the restaurant sector workforce in decades, “Who Works in the U.S. Restaurant Industry,” details the opinions of nearly 5,100 Americans who currently work or formerly worked in the industry, as well as those who own or operate restaurants.

“This landmark research finds that employees and owners/operators have a decidedly positive perception of our industry and believe extensive career choices and opportunities for advancement are readily available,” said Dawn Sweeney, president and chief executive officer, National Restaurant Association and National Restaurant Association Educational Foundation. “This study offers fresh and compelling insight into why so many Americans choose to chart their careers in the restaurant industry, how they advance and why so many plan to stay until they retire.”

 

Gateway to Employment and Advancement

The restaurant industry has historically served as the first job for Americans, with nearly one in three getting their first work experience in a restaurant. More than nine out of 10 restaurant employees said the restaurant sector is a good place to get a first job, and more than eight out of 10 current workers agreed that restaurants provide an opportunity for people who want to succeed based on their hard work. 

Eight out of 10 employees and nine out of 10 owners say that people of all backgrounds can open their own restaurant.

Career Opportunities and Tenure Abound

A majority of employees said the industry provides good long-term career opportunities. Also, individuals in almost every occupation and age group surveyed felt the restaurant industry affords them career advancement potential. Of those not in their first restaurant job, a solid majority said they have advanced to higher-paying jobs.

Seven out of 10 restaurant employees said they would likely continue working in the industry until they retire. In fact, the median industry tenure of employees in restaurant manager and business operations positions was 20 years, and for those over 55, the median was more than 30 years.

“As the nation’s second largest private-sector employer and a leading job creator, the restaurant industry must attract, develop and retain employees to fuel projected growth within the sector. We are highly encouraged by the findings of this study and hope it will propel more people to consider and choose fulfilling restaurant careers,” said Rob Gifford, executive vice president, strategic operations and philanthropy, National Restaurant Association and National Restaurant Association Educational Foundation.

Compensation

The study also examined compensation for both hourly and salaried restaurant employees. While wage ranges varied by occupation, restaurant managers earned a reported median annual base salary of $47,000. Salaried chefs and cooks received a median base of $50,000, with the upper quartile at $65,000 and the lower quartile at $40,000. Among salaried employees, a majority across all age groups said they received a raise in the last year.

When analyzing the findings of particular hourly workers such as waiters and waitresses, the study indicates they earned a median of $16.13 per hour when employer-paid wages and tips were combined, while bartenders earned a median of $19.35 per hour. Among all hourly employees, roughly seven out of 10 restaurant managers and shift or crew supervisors said they received a pay raise within the past 12 months. A majority of chefs or cooks, as well as individuals in business operations positions, also received a raise within the last year.

Restaurant Owners/Operators

The research also profiles perceptions of current restaurant owners related to their career experiences within the industry. A vast majority – 77 percent – said they started in the industry at an entry-level position. During their tenure within the industry, these owners held a variety of restaurant jobs with 84 percent being managers, 61 percent shift or crew supervisors and 59 percent chefs or cooks. 

And in an indication of the entrepreneurial spirit within the industry, when asked how they became a restaurant owner, 42 percent said they started their restaurant from “scratch,” while 20 percent said they purchased the business and 13 percent became a franchisee. 

Despite how they began as operators, the vast majority of all restaurant owners said they likely will continue working in their industry until they retire. In fact, 84 percent of the youngest owners, those under 35, said they see the restaurant sector as a life-long career pursuit.  

Methodology

“Who Works in the U.S. Restaurant Industry” was commissioned by the NRAEF and executed during October and November 2013. The study was implemented through an online survey fielded among a wide range of individuals in the restaurant industry workforce and mall intercepts in 20 shopping malls across the U.S.

In total, completed surveys were received from 4,465 individuals who currently work in the restaurant industry. These respondents comprised 3,309 individuals currently in restaurant and foodservice positions, 442 individuals in business operation positions for restaurants, and 714 restaurant owner/operators.

The survey also contained a section for individuals who currently do not work in the restaurant industry. Out of the 861 individuals who completed this section, 628 are former restaurant employees and 233 never worked in the restaurant industry. Out of the 628 former restaurant employees, 393 said their first paid job was in the restaurant industry.   

About the National Restaurant Association Educational Foundation:

As the philanthropic foundation of the National Restaurant Association, the NRAEF exists to enhance the restaurant industry’s service to the public through education, community engagement and promotion of career opportunities. The NRAEF works to attract, develop and retain a career-oriented professional workforce for the restaurant industry. The restaurant and foodservice industry comprises 980,000 restaurant and foodservice outlets and a workforce of more than 13 million employees, making it one of the nation's largest employers. For more information on the NRAEF, visit NRAEF.org.

Sweeney: Industry's future depends on embrace of change, technology

Dawn Sweeney, NRA
President/CEO

Restaurants are standing at the brink of truly defining the 21st century for foodservice, National Restaurant Association president and CEO Dawn Sweeney said during a special presentation during NRA Show 2014.

In a session titled “The Future of the American Dream,” Sweeney talked with Bernie Marcus, the legendary co-founder of Home Depot; Eric Lefkofsky, CEO of online couponing site Groupon; and Jennifer Wesley, head of industry for restaurants at Google, about the future of restaurants.

Comparing the restaurant industry in 2014 to 1919, when the National Restaurant Association got its start, Sweeney noted that there were about 43,000 restaurants in America 95 years ago, or about one eating location for every 243 Americans. 

Today, she said, there are 980,000 restaurants, roughly one eating place for every 32 people. The 2,000 percent increase in the number of restaurants, compared to a 200 percent increase in the U.S. population, makes it a different world for restaurateurs, Sweeney said. Today’s norm is not only a wide range of choices, but a world where consumers are actively educating themselves about their choices.

“In today’s world, our customers have dozens of favorite restaurants−not just one stand-by−and they are actively looking to try places they haven’t even heard of,” Sweeney noted.  “It’s a world where the flow of information from consumer to consumer is so fast we are scrambling to keep up. Word of mouth is a lot faster than it used to be.”

Restaurants are dealing with a barrage of instant information – and sometimes instant misinformation. Legislative and regulatory red tape are increasingly common. “The government keeps its hand in − often more than it should,” she said. “We are drowning in regulations and new legislation.”

Marcus agreed that the regulatory landscape for businesses is a battlefield. “Between the SEC, the FDA, the NLRB, you name it…they’re just not helpful.” He urged increased political activism to get the word out about what it takes to create jobs. 

Groupon’s Lefkofsky said restaurants need to embrace change. The mobile revolution “dwarfs anything that’s come before … You can’t avoid it because too many consumers are going to be making pivotal decisions in real time on the fly. They’ll either come into your restaurant or go to the restaurant next door based on what they see and how they interact with the information they get on that phone.”

“Consumer expectations are completely different. They want instant gratification, infinite choice, customization and personalization,” said Google’s Wesley. ““There’s almost a tipping point happening. We need to think differently. Today I challenge you to take a ‘moon shot’ − to know what your next big challenge is … because things are changing. “

White House offers some employers transition relief under health care law

Some employers will receive relief under the Affordable Care Act's employer mandate next year, the White House announced today.

The ACA’s employer mandate eventually will require employers of 50 or more full-time-equivalent employees to either offer health benefits to their full-time employees or face possible penalties. The mandate originally was due to take effect in 2014, but the White House last summer moved the effective date to 2015.

In a final rule issued today to explain how the mandate will work, the Obama Administration said that employers with 50 to 99 full-time-equivalent employees won't be subject to the law’s employer-mandate penalties until 2016.

This change, and other changes in the final rule, will provide additional flexibility for employers, especially those at or near the 50 FTE-employee definition of a “large employer” under the ACA. The National Restaurant Association has been pressing regulators for these changes and will continue to do so. The NRA also continues to advocate for structural changes in the law that only Congress can address, such as the definition of full-time employee.

According to Treasury Department officials, other provisions of the final rule:

• Make permanent the "look-back measurement method:" The final rule gives covered employers the option of using a look-back period to measure the full- or part-time status of variable-hour and seasonal employees. This measurement method can give employers more stability and predictability in knowing which employees are eligible for health care coverage under the law. The Treasury Department also clarified that seasonal employees in positions working six months or less in a year generally aren’t considered full-time employees.
  
• Offer transition relief for certain employer penalties: Penalty "A" will apply under the law to covered employers who fail to offer minimum essential coverage to “substantially all” of their full-time employees. For 2015, the Treasury Department says "substantially all" means employers must offer coverage to at least 70 percent of full-time employees. Starting in 2016, covered employers must offer coverage to 95 percent of their full-time employees to avoid Penalty A.
• Offer transition relief for employers with non-calendar-year health plans. For covered employers who offer non-calendar-year plans, the final rule clarifies that the employer mandate will take effect on the first day of their plan year in 2015, rather than Jan. 1, 2015.

The National Restaurant Association said the final rule provided additional relief for some employers and thanked the Treasury Department for working with the NRA and the Employers for Flexibility in Health Care Coalition to provide flexibility in the rule.

See the Treasury Department's press statement and fact sheet for more information. The National Restaurant Association will update its Health Care Headquarters with further analysis of the final rule.
Still to come: The Treasury Department has not yet finalized major new reporting requirements for employers under the law. The first information reports will be required in early 2016, based on data tracked in 2015. The National Restaurant Association reiterated its concern that these rules be as streamlined as possible, since these could contain significant compliance costs for restaurants.

The NRA also called on Congress to address other parts of the law. As restaurants nationwide struggle with ACA implementation, challenges remain that now only Congress can address. The NRA asks Congress to come together in a bipartisan manner to better align the definition a full-time employee with current business practices, eliminate the duplicative automatic-enrollment provision, and simplify the determination of a small business under the law.

For continuing updates on the law, visit the NRA’s Health Care Headquarters.

Sweeney: No stronger 'ladders of opportunity' than restaurants

Economic opportunity, along with immigration and patent reform—issues that figure prominently into the day-to-day operations of restaurants across the country—had a visible role in President Obama’s State of the Union address.

NRA President/CEO
Dawn Sweeney

Obama said he’d push policies to “speed up growth, strengthen the middle class, and build new ladders of opportunity.”

“There are no stronger ‘ladders of opportunity’ in today’s economy than in the restaurant industry,” said Dawn Sweeney, National Restaurant Association President/CEO. “Our essential industry continues to be an industry of opportunity. Restaurants are critical employers that literally train America’s workforce.”

Obama noted the economic benefits of immigration reform and called on Congress to pass reforms this year. The National Restaurant Association, a strong supporter of comprehensive immigration reform, is leading efforts to build support for measures that offer a clear path to legalization for the nation’s 11 million undocumented workers, national use of the E-Verify employment-eligibility verification system, and improved border security that doesn’t interfere with legal travel and tourism.

Tell Congress to pass comprehensive immigration reform.

Obama again voiced his support for a nearly 40 percent increase in the $7.25 federal minimum wage, promising to issue an executive order in coming weeks to raise the minimum wage for federal contractors to $10.10 per hour. The president also supports legislation to raise the minimum wage to that amount for all employees, and challenged states and cities to raise their wages if Congress doesn’t act. The National Restaurant Association opposes mandatory wage increases and believes dramatic wage hikes limit opportunities, particularly for teens, entry-level and lower-skilled workers, who tend to have the highest unemployment rates. 

Tell your senators why a mandatory wage increase hurts opportunity.

“Providing individuals with a path to upward mobility is a critical national issue with long-term economic implications,” Sweeney said. “However, dramatic increases in the minimum wage are not the silver bullet that national labor unions and others are portraying them to be. Strong majorities of Americans believe that education and job training are much more effective strategies to provide real opportunity to upward mobility.”

The president also touched on patent abuse, an issue that has landed many restaurants on the receiving end of frivolous lawsuits by so-called “patent trolls” in recent years. Obama, who last year signed a series of executive orders aimed at curbing patent abuse, asked Congress to “pass a patent reform bill that allows our businesses to stay focused on innovation, not costly, needless litigation.”

NRA: Make 40 hours full time under health care law

The National Restaurant Association (NRA) on Tuesday emphasized its support for bipartisan legislation to change the health care law’s definition of full-time from 30 hours to 40 hours.

The NRA reiterated its support Tuesday after the House Ways and Means Committee held a hearing examining the law’s impact on jobs and opportunities. Since the law—which will require employers who average 50 or more full-time-equivalent employees to provide health care coverage to full-time employees starting in 2015 or face penalties—was passed nearly four years ago, restaurateurs have been concerned that the requirements will come at the expense of scheduling flexibility and full-time opportunities.

The National Restaurant Association supports three current bills that would set a 40-hour full-time definition: The Forty Hours is Full Time Act (S. 1188, H.R. 2988), and the Save American Workers Act (H.R. 2575). Each has drawn support from members of both parties.

“A 30-hour full-time definition is not aligned with current workforce practice and does not reflect the desire of restaurant and foodservice employees for flexible work schedules and increased hours,” said National Restaurant Association CEO Dawn Sweeney. “We are encouraged by the growing bipartisan support from both House and Senate leaders addressing this challenge.”

The NRA is a leader of the Employers for Flexibility in Health Care coalition (E-FLEX), which re-emphasized its support for a 40-hour full-time definition in a letter to the House Ways and Means Committee.

“Increasing the ACA’s rigid 30-hour-per week definition of full-time status would make it easier for employers to provide more hours to all employees, thereby increasing their take-home pay. Help employers offer more generous health coverage to full-time employees without making employers share of premiums cost prohibitive, and help ensure that lower-income employees have access to more affordable coverage options,” the coalition wrote in its letter.  

Visit the National Restaurant Association’s Health Care Reform Headquarters for the latest tools to help restaurateurs navigate the law.

Restaurant industry enters 5th consecutive year of sales growth, will continue strong job creation despite challenges

National Restaurant Association’s 2014 Restaurant Industry Forecast Reveals Economic, Workforce and Consumer Food and Technology Trends

2014 will mark the fifth consecutive year of restaurant industry sales growth despite a continued challenging economic landscape, according to the National Restaurant Association’s 2014 Restaurant Industry Forecast released today. Industry sales are projected to exceed $683 billion in 2014, up 3.6 percent from 2013’s sales volume of $659.3 billion.

 

For the complete NRA 2014 Restaurant Industry Forecast, including graphics and video, visit Restaurant.org/Forecast.

2014 also will mark the 15^th straight year in which restaurant industry employment growth will outpace overall employment growth. The industry will continue to be the nation’s second-largest private employer with 990,000 restaurants employing 13.5 million individuals, or about 10 percent of the total U.S. workforce.

“As our nation continues its road to recovery, the restaurant industry will remain a key driver of economic growth and a leading jobs creator,” said Dawn Sweeney, president and CEO of the National Restaurant Association. “Restaurants touch every community across the U.S., and 2014 will be a year of growth and innovation as the industry focuses on inspired new ways to meet consumer demand while providing valuable careers to millions of Americans.” 

“Despite facing a range of challenges, America’s restaurants are showing continued resiliency and innovation,” said Hudson Riehle, senior vice president, Research & Knowledge for the National Restaurant Association. “As the industry enters its fifth straight year of real sales growth, operators are feeding consumer appetites with new technology, customer loyalty efforts, and evolving menu options. Consumers currently have a historically high pent-up demand for restaurant services, which is likely to translate into a business boost as the economy continues to improve – and our nation’s foodservice operators are rising to the challenge.”

Workforce Outlook

The NRA expects eating-and-drinking places to add jobs at a solid 2.8 percent rate in 2014, a full percentage point above the projected 1.8 percent gain in total U.S. employment.

The restaurant workforce grew at a robust rate in 2013, keeping the industry among the economy’s leaders in job creation. Eating and drinking places added jobs at a strong 3.3 percent rate in 2013 outpacing total US employment which grew at 1.6 percent.

While every state is expected to see their restaurant industry workforce expand during the next decade, states in the southern and western regions of the United States will continue to lead the way in 2014. Arizona and Texas are projected to set the pace with restaurant-and-foodservice job growth above 15 percent between 2013 and 2023. Florida (15.0 percent), Nevada (14.7 percent) and Georgia (14.4 percent) are also expected see their restaurant employment base expand at rates well above the national average during the next 10 years. 

Challenges and Opportunities

While the restaurant industry is expected to grow in 2014, operators will continue to face a range of challenges. The top challenges cited by restaurateurs include food costs, labor costs, and the economy.

After increasing steadily in the last four years, wholesale food costs will continue to be elevated through 2014, putting significant pressure on restaurants’ bottom lines as about one-third of sales in a restaurant goes to food and beverage purchases.

Virtually all operators across the industry (limited-service and tableservice restaurants) saw labor costs as a primary challenge in 2013, and that will continue in 2014. Challenges with ACA implementation and minimum wage increases across the country have made a significant impact on restaurant bottom lines, as typically one-third of restaurant sales is spent on labor.  

One of the primary reasons that restaurant-industry sales growth hasn’t fully taken off during the economic recovery is that consumers for the most part haven’t broken out of their recession rut. When asked in December 2013 to rate the current state of their own personal finances, nearly six out of 10 adults described their finances as either fair or poor and among those adults, nearly one-half said they are very concerned about the economy and have cut back significantly on spending. 

Despite spending cutbacks, consumers have substantial pent-up demand for restaurant services with two out of five consumers saying they are not using restaurant as often as they would like; with improving economic conditions, that demand is likely to turn into sales.

Consumer Trends

Technology innovation continues to play a vital role within the industry. Nearly one-fifth of consumers say technology options are an important feature that factors into their decision when choosing a fullservice restaurant; 24 percent of 18- to 34-year-olds say they consider a restaurant’s technology options when selecting where to go, compared to 11 percent of individuals age 65 and over.

Similarly, more than one-fifth of consumers say technology options factor into their decisions when choosing a limited-service restaurant; 33 percent of 18- to 34-year-olds, compared to 7 percent of those 65-plus.

To keep up with the evolution of consumer palates, restaurant operators across segments added new food and beverage menu options throughout 2013 and will continue to do so in 2014.

Local sourcing and nutritious options (such as healthful kids’ meals, gluten-free) continue to be the top trends throughout the industry.

Eight out of 10 of consumers say restaurants offer more healthy menu options now compared to two years ago, and seven out of 10 say they are more likely to visit a restaurant that offers healthy options.

Environmental sustainability is a long-term trend among operators and consumers.  Nearly three out of five consumers say they are likely to make a restaurant choice based on its eco-friendly practices.

Health Care Knowledge Center to debut at NRA Show

Industry operators seeking answers on how to comply with the 2010 Health Care Act can obtain information at the National Restaurant Association Restaurant, Hotel-Motel Show’s Health Care Knowledge Center, May 18-21, at McCormick Place in Chicago.

 

The knowledge center will offer show attendees the opportunity to meet one-on-one with independent, restaurant-focused, health care reform consultants who can address the challenges related to the law.

“The impending implementation of the health care law is raising a lot of questions,” said Jeffrey W. Davis, CEO of the United States Beef Corporation and convention chair for this year’s NRA Show. “Whether you’re an owner-operator, a franchisee, or a human-resources executive at a chain restaurant, you need to understand how it applies to your operation and how to prepare for it. That’s why we have assembled a team of experts with more than 120 years of health care and employee benefit experience to tackle those questions for you   so you can go home confident and ready to take care of your business and employees.”

Visit the website for more information on the Health Care Knowledge Center or to apply for a free appointment. Also, read more about how to prepare for the health care law here.

In addition to showcasing the knowledge center, three health care-focused education sessions will be offered twice each during this year’s show to maximize attendance. The sessions will provide big-picture knowledge as well as detailed overviews based on operation size. Visit the Education page for a full list of sessions and times.

Restaurateurs seek economic stability solutions

Economic stability is among key policy issues critical to the restaurant industry’s continued growth and success, National Restaurant Association President and CEO Dawn Sweeney said before the President's State of the Union address. The economy is the expected focus of the speech.

 

“While the restaurant industry is expected to grow in 2013, operators continue to face a wide range of challenges, chief among them concerns about consumer confidence and the economy,” Sweeney said. “On behalf of our members, the National Restaurant Association urges policymakers to provide long-term, sustainable solutions necessary to keep our economy moving.”

As an industry of about 13 million people, one million locations and $660 billion in sales, restaurants are affected by many legislative and regulatory decisions. For example, reform of the immigration system, tax policy and the 2010 health care law are key to continued restaurant industry job growth, Sweeney said. The restaurant industry is the second-largest private employer in the United States.

The NRA supports federal immigration reform that includes an accurate and reliable employment verification system. But it’s only a first step: Eventually, work site enforcement must be accompanied by provisions that recognize employers' efforts to hire Americans. Those provisions should give employers who make every reasonable effort to hire Americans a way to hire legal foreign workers to keep their businesses open and contribute to the U.S. economy, she said.

As for tax reform, the NRA supports policy that recognizes the restaurant industry's organizational diversity. Congress should examine corporate and individual tax reform simultaneously because a majority of restaurant businesses are built on small partnership arrangements. The NRA has urged Congress to enact a permanent 15-year depreciation schedule for restaurant buildings and improvements and make permanent the Work Opportunity Tax Credit.

Another policy priority is health care. As health care regulations accelerate, policymakers are recognizing challenges that require reform. The NRA has worked for more than two years to highlight the industry’s challenges in complying with the health care law. It has filed volumes of comments with regulatory agencies to answer operators' questions and ensure they have maximum flexibility as the rules are written so they can meet the legislation's goals and continue to create jobs.

"Restaurants provide quality jobs in every state and every Congressional district, and the National Restaurant Association will continue advocating for policies that create an environment conducive to job creation and growth for our industry," Sweeney said.

 

Restaurant industry will grow, outpace national job growth in 2013 despite sustained challenges

While the operating environment will remain challenging, America’s 980,000 restaurants are expected to post record sales and continue to be a leading job creator in 2013, according to the National Restaurant Association’s (NRA) 2013 Restaurant Industry Forecast released today. Total restaurant industry sales are expected to exceed $660 billion in 2013 – a 3.8 percent increase over 2012, marking the fourth consecutive year of real sales growth for the industry.

In addition, 2013 will be the 14th straight year in which restaurant industry employment will outpace overall employment. Restaurants will employ 13.1 million individuals next year as the nation’s second-largest private-sector employer, representing 10 percent of the total U.S. workforce.

“Despite a continued challenging operating environment, the restaurant industry remains a strong driver in the nation’s economy,” said Dawn Sweeney, president and CEO of the National Restaurant Association. “Ours is a resilient and flexible industry that continually finds new ways to keep growing, relying on the creativity and innovation exhibited by the entrepreneurial spirit. In 2013, restaurant operators will continue to explore ways of navigating the rocky economic landscape to find the road to success.”

“The fact that the restaurant industry will continue to grow in an operating environment that presents substantial challenges is a testament to the essential role that restaurants play in our daily lives,” said Hudson Riehle, senior vice president, Research & Knowledge for the National Restaurant Association. “Restaurants are offering products and services that consumers actively seek out and enjoy; an activity in which consumers are selecting to engage despite cash-on-hand restraints because it is an important component of their lifestyle.”

Workforce Outlook
Total U.S. employment grew at a rate of 1.4 percent in 2012, while restaurants added jobs at a strong 3.0 percent rate – more than double the overall rate. In 2013, the NRA expects the restaurant industry to add jobs at a 2.4 percent rate, nearly a full percentage point above the projected 1.5 percent gain in total employment.

Looking ahead, the NRA expects restaurants to add 1.3 million new positions in the next decade, pushing industry employment to 14.4 million by 2023.

Because of this strong growth in restaurant employment, labor challenges will start to reemerge next year. Recruitment and retention, which was a top challenge pre-recession, will make its way back onto restaurant operators’ radar as the U.S. labor pool is starting to become shallower; restaurant operators in all segments expect recruitment and retention to be more challenging in 2013 than in 2012.

Challenges and Opportunities
While the restaurant industry is expected to grow in 2013, operators will continue to face a range of challenges. The top challenges cited by restaurateurs vary by industry segment, and include food costs, the economy and health care reform.

After increasing steadily in the last three years, wholesale food costs will continue on an upward trajectory through 2013, putting significant pressure on restaurants’ bottom lines as about one-third of sales in a restaurant goes to food and beverage purchases. Because of these prolonged cost pressures, restaurant operators will continue to use creativity and innovation to drive out cost inefficiencies and increase productivity to not pass along the increases to consumers at the same rate.

The sluggish economic and employment recovery impacts consumers’ cash-on-hand situation, which in turn impacts restaurants as there is a strong correlation between consumers’ disposable income and restaurant sales. There is currently substantial pent-up demand for restaurant services, with 2 out of 5 consumers saying they are not using restaurant as often as they would like; with improving economic conditions that demand is likely to turn into sales.

Preparing for the implementation of health care reform will put additional cost pressure on some restaurant operators in the near future. One-third of a typical restaurant’s sales go toward labor costs, so significant increases in those costs will result in additional cost management measures to preserve the already slim pre-tax profit margins of 3-5 percent on which most restaurants operate.

LRA invites restaurants to compete in Kids Recipe Challenge

Access to healthy menu options is a growing concern for diners and is a top trend on restaurant menus across the country. To add a dose of excitement to the standard grilled chicken, garden salad and steamed vegetables menu options, the National Restaurant Association has launched its Kids Recipe Challenge. The competition will showcase restaurants’ culinary ingenuity for creating healthful menu items for children.

In partnership with McCormick For Chefs, the food-away-from-home division of McCormick & Company, the NRA will recognize the best recipes used on children’s menus at restaurants around the country.

"The Kids Recipe Challenge is another great example of galvanizing the restaurant and foodservice community around the importance of ensuring that American families have ready access to nutritious food," said Dawn Sweeney, the NRA's president and CEO. "We designed the initiative to be a fun and creative way to showcase healthful menu options, and a source of inspiration for foodservice operators and chefs to continue to add those options to their menus."

Phil Kafarakis, McCormick For Chefs vice president of foodservice, said supporting operators and chefs who provide nutritionally balanced kids' meals that are great tasting is a key aspect of the company's mission.

"Kids' palates are evolving and they want food choices that are authentic and globally inspired," he said. "McCormick For Chefs helps meet demand and deliver the flavors that kids love. Partnering with the NRA to conduct the Kids Recipe Challenge provides the ideal way to showcase recipes that combine our passion for flavor and nutrition."

Restaurant and foodservice operators that are interested in participating in the Kids Recipe Challenge can submit one or more recipes from their children's menus that meet the nutrition guidelines of the NRA's Kids LiveWell^SM initiative and the U.S. Department of Agriculture's MyPlate program. Participants can compete in four categories: independent restaurants or company with fewer than 20 units; multi-unit company with more than 20 units; contract-managed foodservice; and independent noncommercial foodservice. A panel of industry professionals will select the contest's finalists and elementary school students will choose the winners. The deadline for recipe submissions is Jan. 7, 2013.

Winners of the contest will be revealed at the 2013 National Restaurant Association Restaurant, Hotel-Motel Show, May 18-21 in Chicago.

The Kids Recipe Challenge is a complement to Kids LiveWell, which the NRA launched in July 2011 in collaboration with Healthy Dining to help parents and children find healthful menu options when dining out. To date, more than 100 brands representing nearly 30,000 restaurants are participating in Kids LiveWell.

For details on submitting recipes, nutrition criteria, and contest rules, visit http://restaurant.org/recipe/.