New NRA report helps restaurateurs optimize financial performance

2013-2014 edition of the Restaurant Operations Report contains detailed data on typical operating costs and line items

The National Restaurant Association (NRA) this week released a new edition of the Restaurant Operations Report, a unique, comprehensive resource that helps restaurant operators review and strengthen financial performance. Produced in collaboration with Deloitte & Touche LLP, the report allows restaurateurs to compare their operations to similar ones to better detect potential problems, manage costs, and become more efficient.

"Understanding how a restaurant is performing and allocating its resources in comparison with establishments of a similar business profile could help operators position their establishments for growth and optimized profitability,” said Hudson Riehle, senior vice president of the research and knowledge group for the National Restaurant Association.

The Restaurant Operations Report presents operating results as amounts per seat and as ratios to total sales, which are the most common bases in the industry. It provides data on cost of sales, gross profit, direct operating expenses, employees, pre-tax income and other measurements to help sharpen financial performance and quickly identify cost categories where data could substantially vary from similar operations.

Based on financial data from more than 630 restaurants, the Restaurant Operations Report analyzes restaurant income and expense statements to generate operations data for four restaurant profiles: three in fullservice (per-person checks of under $15, $15 to $24.99, and $25 and over), and one in limited service. In each profile, the data breaks down by sales volume, location type, menu theme and ownership. The cost categories match up with those presented in the NRA’s The Uniform System of Accounts for Restaurants.

To order the 2013-2014 edition of the Restaurant Operations Report, visit the NRA’s online store at Restaurant.org/Store, or call (800) 482-9122. The report is available to National Restaurant Association members for $100, and to non-members for $200.

NRA offers members guide for managing your restaurant's reputation on online review sites

Word of mouth—those three little words have always been critical for restaurants, with customers spreading the news about their dining experiences to family and friends. Today, word of mouth is more pervasive and powerful than ever due to increasing popularity of online reviews and social media.

Customers air their opinions for all to see online. Whether a guest raves or rants about your service, it’s not just a passing comment to a friend or two. Reviews may remain online for years, influencing countless potential customers. Plus, the dramatic increase in smart phones puts reviews literally in the hands of millions of Americans and international travelers as they’re deciding where to dine out.

Review site affect customer dining decisions. More than one-third (34 percent) of diners report that information on a peer review site is likely to factor into their decision when choosing a restaurant, according to the National Restaurant Association’s 2012 National Household Survey. Online reviews hold even more weight with frequent diners and millennials, today’s young adults. Over half (53 percent) of 18- to 34-year-olds report that online reviews factor into their dining decisions, as do 47 percent of frequent full service customers.

An online search of your restaurant is likely to find not only your website, but also your restaurant’s profile page on Yelp, Urbanspoon, TripAdvisor and other review sites. Google takes this one step further. A search on Google or Google Maps embeds a link for “Google reviews” within the listing for your own website. Often, friends and acquaintances comment on their dining experience on Facebook or their blogs.

Online reviews are particularly influential in the restaurant industry. More consumers (61 percent) have read online reviews about restaurants than any of the other 18 business categories listed in Brightlocal’s Consumer Review Survey 2013. Almost twice as many consumers reported reading restaurant reviews compared to doctor/dentist reviews, the next popular category.

Simply put: Online reviews can help make or break your business. Harvard Business School Professor Michael Luca found that a one-star increase in a Yelp rating leads to a 5 to 9 percent bump in revenue. Luca’s findings are based on the sales of Seattle restaurants in 2003, before the emergence of Yelp in 2004 through 2009. The impact is greatest for independent restaurants, with their market share increasing as Yelp usage increased. The research seems to indicate that online reviews can raise the profile of independent eateries, spreading the world about little-known gems.

Restaurants with an extra half-star rating on Yelp are more likely to be fully booked, according to a 2012 study by the University of California, Berkeley. The study looked at competing local restaurants that have a ratings difference of a half star and found that those with the higher score were fully booked 1.5 times as often as restaurants with the lower score. “Our study concluded that getting higher Yelp reviews actually caused restaurant to be more likely to be fully booked,” says co-author Michael Anderson, an associate professor of agricultural and resource economics. “The effects we estimated were not simply an artifact of the fact that better reviewed restaurants tend to be popular.”

With so much riding on your online reputation, it’s important to understand the ins-and-outs of this new word of mouth.

In the New Orleans area, another review site is emerging—FoodDat. A locally-owned food site dedicated to the restaurants, chefs and food scene in New Orleans, foodies can leave and read restaurant reviews, book reservations and upload food photos in live time using hashtag #fooddat via Instagram, search for recipes, food events, restaurant contact info and more. Each restaurant receives a complimentary, dedicated page on Fooddat.com and it can be enhanced with photos, video, recipes, chef spotlight, reservation module and numerous links to their social media channels.

The NRA’s new Guide for Managing Your Restaurant’s Reputation on Online Review Sites is designed to help you optimize your presence on review sites. The guide provides tips on everything from how to harness the marketing power of review sites to how to deal with dreaded negative reviews. The NRA has gone to the review sites themselves, as well as to restaurants leveraging this new medium, for answers to some of your most pressing questions.

If you would like to receive a copy of the Guide, please call the Louisiana Restaurant Association Communications Department at (504) 454-2277.

LRA announces new Director of Local Advocacy

The Louisiana Restaurant Association (LRA) is pleased to welcome Danielle D. Leger as its new Director of Local Advocacy.

In her new position, Leger will be charged with supporting LRA member issues in municipal areas with local governing bodies, as well as aiding in government affairs efforts.

Leger was most recently a researcher-analyst with the Louisiana Senate’s Revenue and Fiscal Affairs Committee, serving as committee counsel to legislators, public officials and constituents, as well as drafting fiscal legislation. She was also previously employed as a committee secretary for the Senate Judiciary B Committee.

“Danielle has a wealth of knowledge of government processes that will most certainly assist and strengthen the LRA’s advocacy efforts,” said LRA President & CEO Stan Harris. “We are very pleased to have her join the LRA team.”

A native of Houma, Leger has a Bachelor of Arts in Mass Communication degree from Louisiana State University.

"Louisiana’s restaurant industry is one of the most important and identifiable industries in the nation,” said Leger. “It is an honor and privilege to work with the LRA to advocate for such a vital economic engine. I see the industry’s future potential and I look forward to helping it grow.”

10 popular gluten-free menu ideas

The numbers don't lie. As many as 3 million Americans are living with celiac disease, an autoimmune disease where the immune system reacts to consumption of a protein called gluten. The condition causes inflammation in the digestive tract that can damage the small intestine and lead to the body being unable to absorb essential nutrients.

Left untreated, the disorder can put sufferers at greater risk of developing additional health complications, including other autoimmune diseases, osteoporosis, thyroid abnormalities, and, in some extreme cases, cancer.

For those living with celiac disease, the only way to effectively manage the condition is a gluten-free diet. This means avoiding all foods that contain gluten, typically found in wheat, rye, barley or cross-bred hybrids of those grains. This type of diet may sound straight-forward, but is actually difficult to follow.  

For restaurateurs, serving guests with celiac disease can get complicated. Preventing cross-contamination is a critical part of the process. Restaurateurs also should be aware that the Food and Drug Administration recently laid out new rules for restaurateurs who use the term "gluten-free" or similar terms to market menu items. According to the FDA’s rule, items labeled as gluten-free must meet all the requirements of the new, legal definition. Under this definition, any menu item marketed as gluten-free must contain less than 20 parts per million of gluten.

With the proper precautions, restaurateurs have several ways to ensure that celiac customers can safely enjoy eating at their favorite restaurants. Following are some tips to ensure a safe, gluten-free dining experience for your customers:

• Read labels carefully and check all ingredients used to prepare gluten-free menu items.
• Work with your suppliers to identify and verify  that their products truly are gluten free.
• Ensure protocols are in place to handle and prepare gluten-free options.
• Ensure your staff is properly trained in preparing and serving gluten-free foods.

To further protect your guests’ health and well-being, always double-check any gluten-free menu items you offer. Take care with all ingredients, not just flour or wheat based products. Many prepared items, like French fries, battered shrimp and deli meats, and ingredients such as sauces, gravies and even nonstick sprays, may have gluten in them. They may also be produced with equipment that has been used to manufacture other foods that contain gluten. That presents a risk of cross-contamination, which will nullify your gluten-free claim.

Now that you know what to prepare for, here are 10 popular gluten-free ideas to try on your menu:

Appetizers

• Rice crackers with cheese – There are lots of great gluten-free cracker options available on the market, many of them made with rice. These are tasty and can be a great item to use as an appetizer.
• Guacamole with corn tortilla chips – Be sure to check ingredients in the chips to ensure there is nothing in them containing gluten, although tortilla chips, in general, tend to be gluten free.
• Fresh veggies and dip - This is another great option to have on hand, and it’s healthful, too. Be sure to check the ingredients of the dip to ensure there are no gluten-based flavoring agents.

Soups

• Pureed winter squash soup.– Squash soup is a good bet because once the squash is cooked you can simply puree the soup for a thick, hearty mid-winter dish and avoid using flour as a thickening agent. You can also choose to use gluten-free flour as a thickener.
• Chicken soup with rice noodles ‑ Most suppliers today carry some great rice noodles. Alternatively, you could prepare dumplings made with a gluten-free flour mix. Always double check there is no gluten in the stock.

Main Dishes

• Tacos – Use pork or any of your favorite kinds of meats or grilled veggies, but make sure you use corn tortillas only. Check to make sure the tortillas do not contain wheat or other gluten-filled flour.
• Rice pasta with red sauce  ‑ Rice pasta is a surprisingly good substitute for regular wheat or semolina pasta. Red sauce is a good bet because unlike a white sauce, it generally doesn’t contain flour.
• Beans and rice – Notice a rice theme? Rice is a great way to provide carbohydrates to people with celiac disease. Beans are another delicious way to achieve a similar flavor profile.

Desserts

• Flourless chocolate cake –These cakes or tortes are some of the best treats around and no flour is required in the recipe.
• Crème brulee or flan ‑ These delicious desserts are typically made with copious amounts of eggs and milk products, and without flour.

To learn how to serve customers with food allergies, visit the NRA’s ServSafe Allergens online course.

Because the number of diners requesting gluten-free foods is on the rise, your ability to accommodate them will not only allow you to serve them more effectively, but also help grow your customer base exponentially. That party of eight with the one gluten-free diner will choose your restaurant over any others just to satisfy that one person.  The best news is, once you put operating procedures into place and provide great service, you will see those customers ‑ and their friends – keep coming back for more.

This article was provided by National Restaurant Association partner MenuTrinfo and written by Betsy Craig, founder and CEO for MenuTrinfo.

Red Fish Grill improves kitchen staff satisfaction with automation and data

Chefs at an award-winning French Quarter restaurant are now working in a safer, cleaner and more efficient kitchen.

That’s because Haley Bittermann, corporate executive chef for Ralph Brennan’s Red Fish Grill, found a more sustainable and efficient way to manage its cooking oil. Bittermann installed an automated oil management system from Restaurant Technologies, Inc. (RTI) in the restaurant, which is known for its seafood specialties. Just 60 days after implementing the RTI system, oil usage at Red Fish Grill decreased 48 percent.

“The results we have seen are tremendous,” said Bittermann, “and now the entirety of managing frying oil – from buying and storing, to filtering and cleaning – is very easy to manage.”

Before installing the automated system, Red Fish Grill was using an outdated, manual process to handle its cooking oil. Restaurant protocol required staff to filter oil twice a day, which required kitchen staff to shut down the fryers. Because busy chefs couldn’t afford the downtime needed, the staff threw out unfiltered oil to safeguard food quality – while unintentionally throwing out “money” by tossing the oil instead of filtering it.

                   
Bittermann noted, “Minimizing the space required for oil storage and reducing the amount of time spent manually filling, filtering and disposing of frying oil helps us be so much more efficient.”

Employees now filter oil according to the restaurant’s filtration protocols, and the general manager and chef are sent alerts in real-time when employees do not meet filtration standard operating practices. The general manager remotely monitors employee compliance though an online portal, which gives managers an easy-to-use dashboard for visibility into the restaurant’s oil performance and filtration trends, as well as delivery and disposal history and compliance to SOPs. This helps them improve training, correct employee behavior and identify areas to improve efficiencies.

On top of oil use and cost savings, employee safety and satisfaction has improved. Bittermann credits the system with a reduction in workers’ compensation claims, and providing peace of mind by not having to worry about employees slipping, falling or burning themselves while handling hot oil. Employees are happy because they don’t have to haul grease anymore.

“The cooks would kill me if I took RTI out at this point,” said Bittermann. "In fact, the automated oil management has been so successful at Red Fish Grill that we are installing it in a California restaurant."

Alcohol Server Permits available online in Louisiana, 24/7

For years, if you needed a Responsible Vendor Permit, or a bar card, you had to go to a class and take it in person. The process went something like this: find a class, register, clear your schedule, drive there, pay, take the course, take the test and get your permit mailed a few weeks later. 

Now, thanks to the efforts of the National and Louisiana Restaurant Associations, ServSafe Alcohol, online server training has arrived, for the first time, in the Bayou State! It’s convenient, interactive, state-approved, available 24/7 and costs just $30.

Restaurant servers, bartenders, and convenience and grocery store cashiers must have an alcohol server permit according to Louisiana law. A permit is good for four years, before it expires and the server has to repeat the course.

Videos, case studies and quizzes help you retain the lessons during the 2-3 hour ServSafe Alcohol course, which can be taken anywhere you have internet access and a PC.

From the alcohol content of wine, beer and spirits, how alcohol is absorbed in the body and then leaves the body, to the factors that affect someone’s blood alcohol content (BAC), servers will gain the knowledge needed to serve alcohol safely and responsibly.

Communication is a big focus of the ServSafe Alcohol online training course and is the responsibility of all employees—managers, doorstaff, valets, security staff, servers and bartenders. It’s the central theme throughout the training and staff communications can reduce intoxication, altercations and accidents.

Permits are issued by the Louisiana Office of Alcohol Tobacco Control and once you’ve passed the course, your printable ServSafe Alcohol Certificate is acceptable until your permit is received. 

This is the online approved online course in Louisiana! Visit www.laserverpermit.com to learn more or take your course today.

A Letter from 2013 LRA Chair David Hearn

Dear Louisiana Restaurant Association (LRA) members,

This year has truly been outstanding for me as chairman of the LRA. I’ve visited all nine chapters, participated in all the board meetings for the LRA, the LRA Self Insurer’s Fund and the LRA Education Foundation, spent the weekend in New Orleans for the EXPO and went to Washington, DC for the National Restaurant Association’s Public Affairs Conference.

Your membership in the LRA has so many benefits. The LRA SIF for workers’ compensation was created more than 30 years ago just for our industry. For the third consecutive year, the LRA SIF is lowering its rates, while other insurers are raising theirs. That’s a testament to the management of the fund and the members who participate in it and share the risk. Do yourself a favor and get a comparison quote. You could save yourself some money.

Of the LRA benefits are the ServSafe food safety courses, the new online ServSafe online alcohol training (the first of its kind in Louisiana) and ServSafe Allergens, are the keys to serving your guests safely on all fronts. The LRA has trained more than 50,000 people collectively in these programs and is the largest provider of these types of training in the state.

The LRA Education Foundation is your charitable organization. This year alone, the LRAEF awarded 24 students $50,000 in scholarships to continue their restaurant management and culinary arts education. Since 2009, the LRAEF has awarded $140,000. Just in time for the holidays, the LRAEF in partnership with the George Rodrigue Foundation for the Arts will release a cookbook, The Pot and The Palette. With 100 recipes from members across the state and illustrations by budding high school artists, the proceeds from the book will benefit both organizations.

Above all and one that isn’t tangible is advocacy. The LRA is your advocate at the local, state and even federal level. This is accomplished by a dedicated staff that constantly monitors regulatory and legislative activity that may impact the industry. You play a significant role in funding these activities when you contribute a portion of your dues to the LRA Hospitality Political Action Committee. Also, our chapters play a significant role in advocacy as a portion of its fundraising proceeds benefit the LRA Hospitality PAC.

My year of service as chairman of the LRA has been a privilege. I’m truly grateful to have given my time for the betterment of Louisiana’s restaurant industry. Thank you to all our members and suppliers for your dedication and commitment to improving this great industry.

Sincerely,

David Hearn, Owner, Catfish Cabin, Monroe