'Magic" and majesty: NBA legend on point with business-savvy advice

A winning mindset and attitude are the keys to success, entrepreneur and pro-basketball legend Earvin “Magic” Johnson told a packed house during his keynote speech at the NRA Show.

Appearing May 18 before a standing-room-only crowd, Johnson said his life ethos and work ethic made him the success he is today. “You have got to have a winning mindset and attitude if you are going to win in the restaurant world,” he said. “I had to have an attitude that any game we played we could win.”

Johnson, a long-time owner-operator of Starbucks, T.G.I. Friday’s and Fatburger restaurants in urban locations, as well as Sodexo Magic, which caters to American Airlines, Disneyland and Disney World, and Allstate Insurance, said one of the most important lessons he’s learned is to continually reinvest in his businesses and never take money out of the business.

“All of you out there who are business owners, you’ve got to reinvest in your businesses,” he said. “The key to my success in building my 125 [Starbucks stores] was I didn’t take any money out. I let the first one build the second one, the second build the third, the third one build the fourth and so on. I reinvested back into the business and took very little out until it was time."

Here is some of his other advice to restaurateurs:

Always know your customer. “That is very important. You also have to speak to that customer each and every day because now they have too many choices. And it’s important you drive great customer service and make sure your food is hot, fresh, and that whatever you’re selling is delivered on a consistent basis.”

Stay current with technology. “Make sure you’ve got the latest and greatest technology. Everything that comes out, I’m always grabbing it if it’s going to make me quicker, faster or able to deliver great customer service or whatever I’m dealing with.”

Don’t grow too big too fast, and measure how much to handle. “Look, we all want growth and sustainability, right? Don’t grow too fast and don’t take on contracts that you can’t deliver. If you ever take on too much and you can’t handle it, you’re going to be in trouble because the word is going to get around. Grow at a slow, disciplined rate and don’t forget that with those new contracts, you’ve got to add more people.”

Give staff the ingredients for success. “Make sure your people are quality experts at what they do.”

Don’t hire family members unless they’re experts at what they’re doing. “If you don’t have the right people running your business, you will fail. I’ll say it one more time: no family members.”

Study finds worrisome trend in U.S. entrepreneurship

Let the LRA help you in your quest for success! 

Entrepreneurship in the U.S. has declined steadily over the past three decades, and the rate of business closings has now surpassed the rate of business openings, according to a recent study by the Brookings Institution.

The report doesn’t give specific reasons for the trend but notes that the decline isn’t limited to particular sectors or regions.  The Brookings study looked at “business dynamism,” or the process by which businesses are launched, closed, expanded and contracted, and found that the firm entry rate—businesses less than a year old as a percentage of total businesses—fell by nearly half between 1978 and 2011.

“Business deaths now exceed business births for the first time in the 30-plus-year history of our data,” the Brookings study stated.

As reported by WWL-TV May 13 in the story New Orleans restaurant scene booming with newcomers, while many new eateries are opening, they’re also closing. According to food permit data from the Louisiana Dept. of Health and Hospitals, last year, Orleans Parish saw 330 new food permits, while 281 (or 82 percent of new permits that same year) closed. 

"The restaurant industry is highly regulated," said Wendy Waren, Louisiana Restaurant Association VP of Communications. "There are so many aspects to running a restaurant successfully and legally, that many newcomers aren't aware of the complexities until they get into business." 

Two restaurant operators who reviewed the findings said they weren’t surprised, and pointed to increasing regulatory pressure as an obstacle that’s discouraging potential entrepreneurs.

“I think what happens is, especially when young people are trying to take that first step, it’s becoming more discouraging when you see all the hoops people have to jump through that we didn’t have to go through when I started in the 1970s,” said Danny Sumrall, owner of The Half Shell restaurants in Memphis. “You have the Affordable Care Act, taxes, you have ways you have to ensure employees are citizens. It’s a nightmare.”

“Compliance and taxes add to the cost of doing business, which also could make startups less attractive to lenders,” Sumrall said.

“You’ll go to the bank to get the initial loan, and your business model has to be profitable,” he said. “If you’re showing minimal profit, most banks aren’t going to want to sign on the dotted line. If they don’t, where will you get the funds?”

Jeff Ecker, corporate general manager of Paymon’s Mediterranean Café & Lounge in Las Vegas, said he’s concerned that business failures might prevent entrepreneurs from trying to start other businesses.

“A lot of first-time businesspeople don’t understand what they’re getting into,” he said. “Many wind up surviving, even at a loss, but they stay in business to avoid ruining their credit. The small business doesn’t have the luxury of Chapter 11. Their credit could be ruined and prevent them from getting back into business.”

The Brookings report noted that the latest data used in the study is from 2011, and it’s possible that some of the negative trends have reversed or stabilized since then.

The LRA exists to help its members, the cornerstones of their communities, build customer loyalty, financial success and rewarding careers. For those aspiring restaurateurs starting out in the industry, the LRA encourages them to join the association and avail themselves of the numerous benefits, including the 30-page publication Opening a New Restaurant in Louisiana. 

"From hourly wages for various positions, wage and hour laws, overtime FAQs, rules for tipped employees, child labor laws, copyright law, workers’ compensation requirements, laws for serving alcohol and necessary permits, food safety permits, new hire reporting and a host of other important items, the LRA is committed to helping restaurateurs stay in business and become profitable and successful," Waren added.  

In Orleans Parish In 2012, there were 288 new permits issued, while 187 (or 64 percent) closed. In 2011, 238 new permits were issued, while 176 (73 percent) closed and in 2010, 227 new permits were issued while 188 closed (or 64 percent).

Restaurateurs: New Orleans has it all, August 2-4

Come for the #LRAEXPO14, experience New Orleans like never before

New Orleans is the place to be during the first weekend of August! It’s hot here, but the air conditioning will be on at full force at the 61^st Louisiana Foodservice & Hospitality EXPO at the New Orleans Morial Convention Center. And don’t worry about breaking a sweat getting to the show, we have designated shuttles to get you to and from the host hotel with minimum effort and it’s complimentary.

The EXPO boosts hundreds of companies that supply the restaurant industry. Think of it one giant shopping mall featuring everything you need to run your restaurant successfully. You can also learn a thing or two by taking a seat in the IDEA ZONE, a series of express presentations with topics ranging from promoting profits and preventing loss behind the bar to energy efficiency equipment to save you money, and more.  Rest your feet and gain some valuable knowledge at the same time.

With special room rates of just $99 a night at our host hotel—the Hilton New Orleans Riverside—and four complimentary passes to the EXPO if you are a LRA restaurant member, you can afford to take advantage of all the wonders New Orleans has to offer.

LRA EXPO 2014 Host Hotel
$99 per night during the
EXPO!

Round out your trip to the Crescent City during EXPO weekend with will magnificent dinners out at our world-class restaurants and imbibe at some of the city’s most fabulous cocktail bars. Take a few hours here and there to visit attractions like art and history museums, the Audubon Insectarium or Aquarium, take a walk down Royal Street and pop in and out of countless galleries or hop on the live oak tree-lined St. Charles Ave. street car and see elegant mansions of yesteryear.

To see the full EXPO line up, visit our website here. Register to attend the EXPO today here.

New Orleans has it all for you August 2-4, 2014. What are you waiting for?  

Thank you to this year’s Platinum Sponsors!

Heartland Payment Systems, Louisiana Cookin’, CapitalOne, Republic National Distributing Company, Louisiana Restaurant Association Self Insurer’s Fund, UnitedHealthcare and the LRA Education Foundation.

Gold Sponsor—Midlands; and Silver Sponsors—Fisher & Phillips, LLP and Johnson, Johnson, Barrios & Yacoubian.

What's driving up pork prices?

The ongoing spread of pig virus throughout North America and Asia is expected to affect U.S. swine production and cause pork prices to keep rising through the rest of the year, a commodities analyst for the restaurant industry said.

John Barone, president and founder of New Jersey-based MarketVision Inc., said restaurateurs, especially small companies and independents, will feel the brunt of the economic pain resulting from the outbreak of porcine epidemic diarrhea, or PEDv, which has up to a 100-percent mortality rate in piglets and no reliable cure.

“This is going to cause substantial pain,” Barone said. “Of course it will depend on how these restaurant companies are contracted in.” He said companies that have contracted for the year for their bacon, sausage and rib products might not be affected at all. "But those of them that are not will get hit with much higher food costs. I can guarantee that the average restaurant on the street that has not locked in its supply contract is already suffering from the price increases.”

Barone said restaurants that specialize in breakfast foods or feature pork ribs and pork-based hot dogs, like barbecue joints and sports concessionaires, would feel the biggest pinch because of the disease, which tends to attack entire herds of piglets as soon as they are born.

“Sandwich chains will experience a little more flexibility because they can offer pork alternatives, like turkey and chicken products,” he said. “But, obviously, a rib chain will be affected as will stadium foodservice concessionaires. And then there are the burger chains. They’re experiencing a double whammy since beef and bacon prices are skyrocketing. You can make it a triple if you throw cheese in there, too. They’re getting hit from every side.”

According to published reports, Donnie Smith, president and CEO of Tyson Foods, said hog supplies are expected to decrease by 4 percent or 5 percent during the company’s fiscal year 2014 due to the outbreak. He told shareholders during a May 5 earnings call that herd losses related to PEDv are the main reason for the expected decrease in production and that supplies would be further reduced from June until August, but could ease by October.

Barone said PEDv takes a big toll because “when a sow is infected, it doesn’t die, but, instead, passes it along to her entire litter upon giving birth. That could mean that up to 10 piglets in each litter would be lost, and that is an exponential loss of future pig supply.”

Barone added that if the problem continues for a long period of time, other protein supplies could see some effect, too.

“Restaurant operators are already dealing with extremely high beef prices, and chicken prices also are on the rise,” he said. “If this continues and people look to switch out to protein substitutes, the demand will lead to even higher prices.”

“It’s going to be a difficult summer for the restaurant industry.”

Vote for Louisiana Shrimp Gumbo in the 2014 Taste of America tournament

Will Alaskan king crab put the pinch on New Mexico’s Frijoles? Will deep dish pizza from Illinois flatten North Dakota’s potato crepes? Will Delaware’s boardwalk fries make Rhode Island’s frozen lemonade melt?

These are just a few of the matchups in the first round of Roll Call’s Taste of America tournament, where states pit their best foods against one another to see what comes out on top. Online voters determine which foods move on to the next round.

Vote with your taste buds and support our state by choosing Shrimp Gumbo as our favorite regional cuisine. Voting started May 12. Fill out your first-round bracket at www.rollcalltasteofamerica.com.

The National Restaurant Association is co-sponsoring this year’s tournament, along with the National Beer Wholesalers Association, the National Pork Producers Council, and the American Frozen Food Institute.

Last year’s champion, West Virginia’s pepperoni roll, will return to defend its title, but faces a tough first-round matchup against Boston crème pie from Massachusetts. The final eight state foods will be served at a reception at Nationals Ballpark in Washington, DC, prior to the Congressional Baseball Game. The winner will be announced June 25.

Protect your investment with this restaurant fire safety guide

As I watched the Season 3 finale recently of Jon Taffer’s Bar Rescue, his anger over the built up grease on the fryer and general filth was as bad as I've ever seen it. The cook admitted he had no formal cooking experience, but it was also evident he had no formal safety and sanitation training (ServSafe) either. During the first evening of Taffer’s consult, he invited guests into the establishment to see just what the challenges were in order to make his recommendations.

                                                                                         

Due to the built up grease on the fryer, it caught fire during service. To make matters worse, the fire extinguisher wasn't charged and resulted in the staff scrambling around the premises looking for one that did. As the fire was extinguished, smoke filled the kitchen and then rolled out into the bar filled with patrons. Taffer was incensed as the evacuation ensued.

That got me to thinking it might be time for an article on restaurant fire safety. The Louisiana Restaurant Association Self Insurer’s Fund for Workers’ Compensation offers complimentary fire extinguisher training to plan participants and other fire safety training materials.

The National Restaurant Association’s Manage My Restaurant online resource has countless articles to help you become more profitable and in this case protect your investment. The following article, Fire prevention 101: The basics of restaurant fire safety, is a solid guide to keeping your establishment operating smoothly.

Restaurants—with their open flames, hot equipment, electrical connections, cooking oils, cleaning chemicals and paper products—have all the ingredients for a fire to flame out of control. Nearly 8,000 eating and drinking establishments report a fire each year, according to 2006-2010 data tabulated by the National Fire Protection Association (NFPA) in Quincy, Mass. These fires caused an annual average of $246 million in direct property damage.

A fire can devastate your business, leading to lost revenues and even permanent closure. But there are steps you can take to prevent fires and minimize the damage.

Preventative maintenance

• Install an automatic fire-suppression system in the kitchen. This is crucial because 57% of restaurant fires involve cooking equipment. These systems automatically dispense chemicals to suppress the flames and also have a manual switch. Activating the system automatically shuts down the fuel or electric supply to nearby cooking equipment. Have your fire-suppression system professionally inspected semiannually. The manufacturer can refer you to an authorized distributor for inspection and maintenance.
• Keep portable fire extinguishers as a backup. You’ll need Class K extinguishers for kitchen fires involving grease, fats and oils that burn at high temperatures. Class K fire extinguishers are only intended to be used after the activation of a built-in hood suppression system. Keep Class ABC extinguishers elsewhere for all other fires (paper, wood, plastic, electrical, etc.).
• Schedule regular maintenance on electrical equipment, and watch for hazards like frayed cords or wiring, cracked or broken switch plates and combustible items near power sources.
• Have your exhaust system inspected for grease buildup. The NFPA Fire Code calls for quarterly inspections of systems in high-volume operations and semiannual inspections in moderate-volume operations. Monthly inspections are required for exhaust systems serving solid-fuel cooking equipment, like wood- or charcoal-burning ovens.

Staff training

Train your staff to:

• Find and use a fire extinguisher appropriately.  An acronym you may find helpful is PAST – pull out the pin, aim at the base, make a sweeping motion, (be) ten feet away.
• Clean up the grease. Cleaning exhaust hoods is especially important, since grease buildup can restrict air flow. Be sure to also clean walls and work surfaces; ranges, fryers, broilers, grills and convection ovens; vents and filters.
• Never throw water on a grease fire. Water tossed into grease will cause grease to splatter, spread and likely erupt into a larger fire.
• Remove ashes from wood- and charcoal-burning ovens at least once a day. Store outside in metal containers at least 10 feet from any buildings or combustible materials.
• Make sure cigarettes are out before dumping them in a trash receptacle. Never smoke in or near storage areas.
• Store flammable liquids properly. Keep them in their original containers or puncture-resistant, tightly sealed containers. Store containers in well-ventilated areas away from supplies, food, food-preparation areas or any source of flames.
• Tidy up to avoid fire hazards. Store paper products, linens, boxes and food away from heat and cooking sources. Properly dispose of soiled rags, trash, cardboard boxes and wooden pallets at least once a day.
• Use chemical solutions properly. Use chemicals in well-ventilated areas, and never mix chemicals unless directions call for mixing. Immediately clean up chemical spills.

Be prepared: Have an emergency plan

If a fire breaks out in your restaurant, your staff must take control of the situation and lead customers to safety.

• Be prepared to power down. Train at least one worker per shift how to shut off gas and electrical power in case of emergency.
• Have an evacuation plan. Designate one staff member per shift to be evacuation manager. That person should be in charge of calling 911, determining when an evacuation is necessary and ensuring that everyone exits the restaurant safely.  Ensure your staff knows where the closest exits are, depending on their location in the restaurant.  Remember that the front door is an emergency exit.
• Offer emergency training. Teach new employees about evacuation procedures and the usage of fire-safety equipment. Give veteran staff members a refresher course at least annually.

First King of Crawfish event a success

Crawfish is all the rage as evidenced by the onslaught of events honoring the beloved Louisiana mudbug. The Louisiana Restaurant Association Greater New Orleans Chapter held its first King of Crawfish competition, a tasting event featuring notable restaurants serving their signature crawfish dish, at Generations Hall, May 8, to benefit the LRA Education Foundation. During the event, attendees sampled an array of dishes and voted on which one they thought should reign supreme.

Nearly 500 fans of Louisiana’s favorite crustacean were salivating over Galatoire’s crawfish risotto, Fulton Alley’s crawfish tater tot, Katie’s Restaurants’ crawfish beignet, Semolina’s crawfish cakes, Ma Momma’s Cornbread, Chicken and Waffles’ crawfish cornbread and Barcadia’s fried crawfish tails over spoon bread, just to name a few.

“This was a great event and I’m definitely in for next year,” said Michael Sichel, Galatoire’s Executive Chef. “Everyone was so happy and it benefiting culinary education made it even more rewarding.”

Katie's Restaurant Crawfish Beignet, an
overstuffed beignet filled with Louisiana
crawfish, jalapeno peppers, onions and
three kinds of cheese, fried then topped
with a jalapeno aioli. Served on the
restaurant's menu daily. 

After the tickets were counted, the clear crowd favorite was Katie’s Restaurant led by Sous Chef Jonathan Laugand, who took home the title with the restaurant’s crawfish beignet. As event chair and LRA GNO Director Stanton Ripp announced Katie’s as the winner, the team was elated and the crowd cheered. Katie’s beat out Café Giovanni, who placed second with an Italian crawfish mole over creamy grits and Semolina’s who placed third, with a made-to-order crawfish cake with micro greens.

“It was a great time,” said attendee Meg May. “The cuisine was great and the LRA did an awesome job.”

Guests also had a selection of libations to enjoy courtesy of MillerCoors, Abita Beer and Glazer’s of Louisiana brands Pyrat Rum, 2 Gingers Irish Whiskey, Lunazul and Crown Royal XO.

The proceeds from the event benefit the LRA Education Foundation, which awards annually culinary and hospitality management scholarships, $60,000 this year and nearly $200,000 since 2009. The LRAEF also administers the Louisiana ProStart program, a two-year restaurant management and culinary arts curriculum in more than 45 high schools statewide for juniors and seniors. 

To see what you missed, visit the event's marketing sponsor, Where Y'at Magazine's Facebook page to view event photos here.