Murphy Reportedly Expects to Conditionally Veto Brewery Bill Post-Election
Leader looking to tie-in liquor license issue for comprehensive reform. After sitting on Gov. Phil Murphy’s desk since late June, legislation that would ease some of the state’s restrictions on breweries, cideries and distilleries will reportedly be sent back to lawmakers this fall. While the administration has previously said the Democratic governor was expected to issue a conditional veto so that the measure can be included in a larger reform effort of the state’s decades-old liquor license system, there is now a clearer picture of when Murphy will act. Jennifer Sciortino, a spokesperson for the governor’s office, recently told the New Jersey Monitor that Murphy will act on the bill once lawmakers return to Trenton following November’s elections, when all 120 legislative seats are on the ballot. In response to a request for comment from NJBIZ, Sciortino referred back to a statement she made last month, saying, “The Governor unequivocally supports easing restrictions on New Jersey breweries, which is why he proposed these reforms himself earlier this year. However, he has been clear that our outdated liquor license system needs comprehensive reform, not a piecemeal approach, in order to ensure equity and affordability so that all small businesses and the entire industry as a whole will benefit.” in response to the latest media report, Brewers Guild of New Jersey Executive Director Eric Orlando issued a statement Sept. 8 saying, “After more than a yearlong effort to gain acceptance of a permanent fix to brewery license restrictions, which have severely hampered the economic viability of the craft beer industry in New Jersey and negatively impacted consumer enjoyment of their local breweries, it is extremely disappointing that the Governor has decided to issue a conditional veto on this important legislation.” As part of a ruling handed down four years ago by the state Division of Alcoholic Beverage Control, New Jersey’s growing craft brewing industry must comply with a series of regulations, including limits on the number of on-site events that can be held and a ban on offering food, serving coffee and coordinating with food vendors.
Restaurant Managers Are Key Ingredient in the Recipe for Staff Retention
New research reveals. Restaurant employees play an integral role in the dining experience, representing the building blocks of delightful guest experiences, ultimately creating loyal patrons who come back for more. However, in today’s economic environment, restaurant staffing is being put to the test, posing a bigger challenge today than ever before. Restaurants not only face a labor shortage, but employee wages have been rising, and worker productivity across industries has plunged to a historical depth. Regardless of how long employees intend to stay in a role — whether a seasonal job or a more permanent passion—restaurant operators have a common goal to keep staff happy, productive, and loyal. Fueled by this backdrop, Toast’s Market Insights team sought to better understand restaurant employees’ perspectives—from bright spots to challenges faced—by conducting a survey in February and March 2023 of more than 1,000 US restaurant workers. So, what did we find? Along with more obvious employee morale boosters like higher pay, what struck us most in the data was how managers often play an outsized role in staff retention—they can make or break continuity, depending on how they go about their jobs. With that in mind, here are a few key learnings from Toast’s new research underscoring the need for excellent managers in the restaurant industry. So, what can restaurant operators do to minimize employee churn? First up—compensate workers competitively based on the local market. Toast’s research identified that money talks, or employees walk. A desire for better pay is the No. 1 reason cited among employees planning to leave the restaurant industry in the near-term. Nearly 60 percent of those planning to leave the industry in the next year are motivated by a desire for better pay.
Bielat Santore & Company – Restaurant Industry Alert
READ THIS WEEK’S EXCLUSIVE “WHO’S WHO” IN THE RESTAURANT BUSINESS INTERVIEW
“DINER BOB” GILLIS
SELLING DINERS AND RESTAURANTS THROUGHOUT NEW JERSEY
As his interest in the restaurant industry piqued, “Diner Bob” Gillis acquired and operated six successful restaurants and bars as a former client of Bielat Santore & Company’s before stepping over to the other side of the business in and joining the team at Bielat Santore & Company. The knowledge Mr. Gillis gained as a restaurant owner and his empathy for the demands placed upon the restaurant owner, bring a unique perspective to his ability to work with prospects in the food and beverage industry. With the composure gained as salesman in a structured corporate environment, Mr. Gillis is well-suited to manage the sale or purchase of your diner, restaurant and/or bar.
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Beef Inflation Pushes Average Burger Price Close to $16
The price of a burger rose about 2% from November to June. Rising beef prices have pushed the average price of a burger to nearly $16. That’s according to new data from Toast, which tracked beef inflation and burger prices from November 2022 to June of this year. Beef prices fluctuated over that time, bouncing between as low as $3.20 per pound to more than $4. They peaked at $4.15 per pound in May, then cooled down in June to $3.78. Burger prices, meanwhile, rose on a more steady trajectory, but largely lagged overall beef prices. From November to June, the average burger price increased by about 2%, from roughly $15.57 to about $15.88. The data is based on monthly invoices and transactions at restaurants that use Toast’s software and reflects restaurants of all sizes and segments. The results suggest that many operators have been absorbing some beef costs themselves rather than passing 100% of the increases along to burger customers. Still, a nearly $16 burger is likely to cause some consumers to wince, and that is impacting restaurants. Industry traffic has generally struggled of late as guests recoil from eye-opening menu prices. The price of beef has remained high even as other commodities, like pork and chicken, have slowed. Chains that sell a lot of beef such as Texas Roadhouse and Shake Shack have said they expect it to be a pressure point for the rest of the year and possibly even beyond. The main problem is a lack of supply. Widespread drought this summer has shrunk U.S. cattle herds to their lowest levels since 2015, driving beef prices to record highs. The rising costs of beef farming have added to the inflation. That has in turn contributed to higher prices at restaurants. In July, food-away-from-home prices were up 7.1% year over year.
9 Restaurant Numbers to Know to Be Successful
Running a restaurant by the numbers can be a challenge. Off the top of your head though, I bet you can name three without even thinking: food cost, labor cost and profit loss. That’s a good start! While there are many more numbers to know, I want to share with you the most important restaurant numbers to know to be successful. No. 1: Your cost of goods sold by category in total. You have different targets for budgeting, and it’s important you’re measuring your food, bottle beer, draft beer, wine, liquor and merchandise separately. You also need this total for another number, which I’m going to talk about in a moment, called prime cost. Generally speaking, I aim for about a 25% cost of goods sold when I’m doing a budget. And I could lean up 5% or down a little bit. No. 2: Your labor cost by position and total. Again, like cost of goods sold, you’re going to have different labor targets. When it comes to budget and measurement, to find where you might have some challenges, you need the total for your prime cost. Track by position, not front of house, back of house, not hourly or salary, but by position. No. 3: Your prime cost. That’s your total cost of goods sold, plus your total labor cost, including taxes, benefits and insurance. This is the one number you must know to have any chance to make money. Make sure to search my YouTube channel for multiple videos on prime cost. You have to know how to calculate it and what your total should be, but I’m going to tell you right now the industry standard of 65% does not work anymore.
Connecting with the Millennial Generation of Diners
Embracing new mover marketing strategies. The Millennial generation is a force to be reckoned with, not only in the housing market but also in the dining industry. As Millennial homeownership surpasses Millennial renters for the first time, restaurants have a golden opportunity to engage this valuable demographic through targeted new mover marketing strategies. Millennials have been charting a new course for home ownership, with the number of Millennial homeowners reaching a staggering 18.2 million in 2022. This surge in homeownership came later in life for Millennials compared to previous generations, primarily due to rising home costs, high student loan debt, and stagnant wages. However, with these challenges gradually subsiding, Millennials are now embracing homeownership, providing a lucrative target audience for restaurants. The foodservice industry, set to generate $997 billion in sales in 2023, is fiercely competitive. To stay ahead of the curve, restaurant operators are strategically directing their focus towards Millennial diners. Millennials’ preference for convenience, experiences, and socializing has led them to eat out more frequently than previous generations. With an increasing number of Millennials spending more on dining out each year, it is evident that restaurants that successfully cater to this generation stand to gain a competitive edge. One of the key attributes of Millennials is their affinity for technology and online platforms. To connect with them effectively, restaurateurs must reach out to them in their digital habitats, where they spend a significant portion of their time. Whether it’s discovering and researching new restaurants, reading reviews, making reservations, or utilizing food delivery services and apps, restaurants must adopt a robust online marketing program.
Functional Mocktails are Having a Moment in Restaurants
The health-forward concoctions offer more than just a refreshment. As societal attitudes toward alcohol consumption evolve, a new phenomenon is taking the culinary world by storm—the surge of functional mocktails at full-service restaurants. Catering toward the growing demand for alcohol-free alternatives, these creative concoctions offer more than just a refreshing taste. With carefully crafted blends of natural ingredients, herbs, and spices, functional mocktails provide a wealth of health benefits while still delivering a delightful sensory experience. “For me, I think the request I hear more and more frequently anywhere I go is, ‘what non-alcoholic options do you have?’” says Lindsey Farris-Felty, corporate beverage director at Asheville, North Carolina-based Tupelo Honey. “When guests ask this question, they’re not asking about what brands of soda you have; they want to know ‘what’s something delicious and unique I can enjoy if I don’t want to imbibe?’ We have had non-alcoholic craft beverages on our menu for years now, and we’ve always had a positive response to the selections,” she continues. For example, the brand’s Turmeric Ginger Tonic, which is loaded with turmeric, black pepper, ginger, honey, and lime juice, has been on the menu since 2018. Embracing the rise of sobriety and mindful drinking, more operators and mixologists are experimenting with creative mocktail recipes, pushing the boundaries of taste and innovation. These alcohol-free elixirs are no longer the mere afterthought; they are becoming the star attraction, challenging conventional notions of indulgence and socializing.
What Families Want from Kid-Friendly Restaurants
How can fast casual restaurants attract this valuable consumer segment to their restaurants? The fast casual restaurant segment has seen tremendous success and growth in recent years. According to Circana, Inc./CREST®, while overall restaurant traffic was down four percent in 2022 compared to 2019, fast casual traffic was up nine percent. But there’s one area in which it can improve: with young families. Why should fast casuals work on improving with young families? Not only is winning over kids important to building a fan base among future guests, but families with kids 12 and under bring in checks that are more than twice as high as parties without kids. So, how can fast casual restaurants attract this valuable consumer segment to their restaurants? We specialize in kids and families in restaurants and conducted a study to find out. Parents would often rather go to fast casual restaurants with their families than quick service restaurants because they perceive it as higher quality and better-for-you, but their kids often ask for fast food instead. Why? Kids like the food AND they get a toy. It is evident to the parents we talked to that most fast casual restaurants don’t focus on the kid and family experience. As one dad said: “So at the end of the day, there’s nothing relatable to a kid […] If they have something specific that stands out and says ‘Oh, so [this fast casual brand] does focus on kids now.’ Yeah, then I think they would get the [family] business.” Even for brands that have kids’ menus, they’re often de-emphasized on the menu board and lacking in options. In addition, most fast casual brands don’t engage kids directly through packaging, messaging or entertainment.
Will the End of the Student Loan Pause Impact Restaurants?
The three-year federal pause on student loan payments ends Oct. 1, impacting about 44 million borrowers. The pandemic-inspired three-year federal pause on student loan payments and interest is ending, impacting about 44 million borrowers. Interest on those loans started accruing again last week, while actual payments will resume Oct. 1. What does this mean for restaurants? Many of their customers will have less money to spend on things like add-ons, fancy drinks, impulse buys, or night-out splurges in general. The average federal loan debt is about $37,000 per borrower, or about $1.59 trillion in total. According to U.S. News, that translates to an average student loan payment of about $300 per month. That’s a big enough chunk of change to facilitate a major shift for some consumers who have so far shown a strong willingness to accept higher menu prices implemented to manage inflationary pressures. Consumer spending in July was at the highest level in six months, for instance, to the benefit of goods and services. But few economists expect this pace to continue, and warning signs are starting to flash. Among those warning signs – record-high credit card debt, record-high mortgage rates, record high car loan debt, record high rent prices, rapidly dwindling household savings, and, yes, imminent student loan repayments. As these pressures mount, we’re starting to see traffic erosion across all restaurant segments. In July, 41% of operators reported a traffic decline, representing the fourth consecutive month operators experienced a net decline in customer traffic.
Did You Know?
Addressing employee hiring & retention in the hospitality industry. Employee retention is a serious issue that employers in the Hospitality and Food Services industry are facing today. Employee benefits, health insurance and retirement benefits in particular, are a useful strategy for hospitality operators when it comes to attracting and retaining employees. Consider the following when designing your plan for employee hiring & retention:
Employee Tip
Should a server disclose prices when announcing restaurant specials? Like so many problems in our industry, this one can be attributed to the difference between expectations and reality. The guest has a reservation and expects their table will be ready. The server does a good job and expects an 18% or 20% tip. The guest expects dessert to be brought to the table after just a few minutes and not 15 or more. And so on. Problems are inevitable, but many of them can be managed by good communication. This is one such case: the guest expects that specials will be priced in line with other entrees.