Shielding Employers
How ERISA committees minimize employer liabilities. In September, the Employee Retirement Income Security Act (“ERISA”) turns 50. Congress enacted ERISA, in part, to protect employees’ retirement assets from employer theft and mismanagement. To do that, ERISA imposes obligations on the fiduciaries of plans subject to ERISA, which includes, among others, all 401(k) plans, health plans, and many severance plans. For purposes of ERISA, a fiduciary is generally any person who exercises discretion in administering a plan or has the authority to manage plan assets. ERISA’s duties include loyalty, prudence, diversification, adherence to plan documents, and avoiding “prohibited transactions.” While much has changed in how courts interpret and apply ERISA, ERISA and the fiduciary obligations it imposes remain unchanged and are as relevant as ever for employers. Over the last 50 years, the United States Department of Labor has promulgated numerous regulations, rulings, and other forms of guidance that remain applicable and govern much of how the employee benefits subject to ERISA are operated today. An additional enforcement element that has become much more prevalent in the last 20 years is an aggressive plaintiffs bar. One of the best ways to enhance compliance with ERISA’s fiduciary rules and minimize potential liability is to form a fiduciary committee to which the company’s governing body will delegate its fiduciary responsibilities regarding the discretionary administration of the plan and the management of its assets…
Americans’ View Of Restaurants Has Tumbled This Year
Americans’ opinion on restaurants hit the lowest point since 2008. The restaurant business has lost some of its shine this year, at least based on one survey. Americans’ views of restaurants have plunged this year, hitting their lowest point since 2008, according to an annual opinion survey on their opinions of different industries by the polling firm Gallup. But their view on restaurants remains positive overall and among the most positive of the 25 industries surveyed in Gallup’s annual Work and Education survey. Fifty-two percent of Americans had a positive view of restaurants overall. That was down nine percentage points from 2023, when 61% of Americans had a positive view of the industry. The decline was the largest of any, and just ahead of the eight-point decline in positive views of the grocery business. At the same time, 16% of Americans had a negative view of restaurants, up four percentage points from 2023 and at a historic high, according to the survey. The percentage of people with a neutral view of restaurants increased five points to 31%. The survey could provide some insight into declining traffic, particularly at fast-food chains. Consumers have expressed frustration with rising prices, both in surveys and on social media. Nearly 80% of consumers said in a Lending Tree survey earlier this year, for instance, that fast-food restaurants were a “luxury.” But the results also show just how popular the industry is. Restaurants last year had the highest percentage of positive ratings, for instance. Even after the nine-point decline this year, it is the second most popular industry in the U.S., following only farming and agriculture. Restaurants, computers and farming are the only three industries in which a majority of Americans have a positive viewpoint. All of the industries average a 37% positive score. Restaurants can at least take solace that they are not the pharmaceutical business, which has a positive score of 20%, or the federal government, which scored 26%…
Bielat Santore & Company – Restaurant Industry Alert
BIELAT SANTORE BRINGS COASTAL CANTEEN TO MANASQUAN
The Jersey Shore Restaurant Group, renowned for its hospitality, quality, and community-focused restaurant concepts, has acquired its fifth location, the former Max Devros restaurant on Main Street in Manasquan, Monmouth County, New Jersey. The acquisition was brokered by Richard Santore of Bielat Santore & Company, based in Allenhurst, Monmouth County, New Jersey. The Jersey Shore Restaurant Group plans to transform the Manasquan location into its newest concept, Coastal Canteen. Bielat Santore & Company is the exclusive broker for the Jersey Shore Restaurant Group.
Contact Richard Santore 732.531.4200 for additional information.
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How to Orchestrate a Beverage Program Overhaul
By enhancing kitchen collaboration, restaurants can revamp their beverage programs. Wolfgang Puck’s Spago Beverly Hills has long been celebrated for its award-winning wine program. Now, it’s making a name for itself as a cocktail destination under the guidance of Adam Fournier, who came on board last year as the longstanding restaurant‘s first-ever bar director. Fournier says the team at Spago wasn’t just looking to freshen up the beverage menu. They wanted someone to lead a complete overhaul, revamping everything from the training and education to the overall direction of the bar program. It’s a tall order that began with a crash course in the restaurant’s history and identity. His first order of business was learning about Spago, making inroads and allies with the culinary folks in the kitchen, and developing a solid understanding of the clientele to guide the strategy going forward. “You don’t just step into a 40-year-old business and start swinging around the hammer,” he says. “Spago exists because of the food, because of Wolfgang and the unending commitment to quality, technique, and service. Understanding the mentality behind that was incredibly important to me because the bar doesn’t exist in a vacuum.” Case in point? Fournier knew guests associated Spago with the experience of pairing wine with their meal. He decided to draw on similar language to hook people into the new beverage program. Using the wine aroma wheel as inspiration, Spago now breaks down its cocktail menu into light-bodied, medium-bodied, and full-bodied categories, with a couple of luxury high-end serves similar to a sommelier’s selection.
6 Ways to Improve Communication with Restaurant Managers
Change your culture by recognizing and rewarding proactive communication. Are you tired of constantly reaching out to your managers for updates, only to hear the same frustrating “I don’t know” response? It’s time to put an end to this madness and empower your management team to provide you with the crucial data you need. Here are six ways to improve communication with restaurant managers. 1. Implement a restaurant manager log. Let’s ditch the outdated method of calling or texting for updates. Instead, create a tailored manager log. This tool ensures your managers answer key questions after each shift, covering everything from sales numbers to staffing and ticket times. Say goodbye to frantic phone calls and hello to immediate, organized updates. You can use a simple binder with lined sheet paper, create a template you print each week, use one of your restaurant software programs that likely includes a communication tool, or purchase a simple journal where everything is recorded, noting what specifically you want to know each day, each shift. 2. Proactive text updates from restaurant managers. Flip the script by having your managers send you updates via text. Rather than asking if the food order was placed, have them text you details like the budget, expenses and order placement time. Set a rule that they must text you at least one hour before the order deadline, ensuring you’re always in the loop and avoiding last-minute surprises. You can keep these instructions in your manager log and make it part of the daily routine…
How to Drive Restaurant Traffic During Seasonal Challenges
The key is using apps and technology to better understand diners’ preferences and behaviors. Summer causes unpredictable customer traffic, with some days seeing a surge in diners seeking refreshing meals, while others experience slower foot traffic due to vacations and changes in routines. The allure of summer vacations can divert guests’ attention from their regular dining patterns as people head to the beach, mountains, or other destinations. Warm weather also encourages patrons to prefer outdoor seating (or revert to indoor in hotter climates), prompting restaurants to optimize their spaces, create appealing dining experiences, and adapt menus to highlight seasonal ingredients such as fresh produce and seafood. In these dynamic times, loyalty programs, and specifically personalized marketing, serves as a critical tool for restaurants to drive traffic and retain customers. It’s true that customer inboxes are overwhelmed with generic restaurant marketing—this is why open and click rates on generic emails hover at less than 5 percent and declining. Stop sending generic customer emails to everyone with the same message and stop eroding your brand value with generic marketing. In the summer, use these best practices to drive traffic, control crowds, and manage seasonal inventory with your loyalty program. Here’s are a few ideas for how to use your guest engagement program to drive traffic in the summer…
Restaurants Face Rise in Slip and Fall Suits
Simple measures can mitigate risk. The restaurant industry is fighting a tough battle. Rising costs are not the only financial hazard facing the food service business, as recent studies show that slip and fall cases cost the industry $2 billion a year. However, there are several ways businesses can help reduce risk, financial exposure, and legal complications. When designing new restaurant spaces, be aware of the need for adequate drainage systems to avoid unwanted water runoff, which can freeze during the winter months. Strategic planning can also ensure the water does not run off onto sidewalks, where it can refreeze and cause a potential slipping hazard. Instead, plan for water to be diverted to drains or away from pedestrian areas. Designers can also ensure that physical steps are supported by handrails and are not placed in unsuspecting locations. Many locations can be made safe with simple placement of signs to warn patrons. If your location has a step that may not be easily visible to patrons, consider putting down caution tape or a sign to alert people to the step to avoid falls. Having video surveillance of high-traffic areas is also a great way to protect yourself from legal trouble. Identify high-traffic areas and ensure adequate surveillance cameras record footage that can be used later. Inevitably, an accident will occur, but if it is captured on video, you can avoid a he said/she said situation with supporting video evidence of what happened—and ideally demonstrating that your business followed proper procedures prior to the accident. Also, ensure your record-retention policies preserve the video for a sufficient length of time so you can maintain the footage if and when you receive a letter requesting a video of the incident. Pro tip: Find out the statute of limitations for your jurisdiction, and preserve the video for the same length of time…
Why Don’t All Restaurants Serve Ice Water?
Some diners can’t stand it. We live in a divided world, awash with concerns. I know this not just from following the news but also from observing people in my natural habitat — restaurants, of course — and fielding complaints from the dining public. Maybe it’s because we had the hottest summer on record. Perhaps it’s a desire to be in control, or embedded in the American way of life. Whatever the reason, I’ve noticed a sudden fascination with whether a restaurant serves (first-world problem alert!) ice in water. People have strong opinions on the subject. Meet Ellen, a recent participant of my every-Wednesday online dining Q&A. “Why have restaurants started leaving ice out of water?” she asked. “This was always a thing in Europe, where asking for ice could become an international incident. Now it’s happening here. I want ice in my water and I don’t think I should have to beg for it.” Another member of Team Ice identified themself as Margofornow. “I am having to request a cup of ice more and more often and it’s one more task that’s on me as a diner and didn’t used to be. And it also means I need the table space for that extra water glass or cup, and am adding ice to the beverage glass as I consume it. Just bring ice water, already.” Dissenters, including people with teeth sensitivity, followed with a river of rebuttals. “Ice can make water tougher to drink!” posted a chatter with the handle SomeWhoCallMeTim. “It is easier to take a big gulp without” it. “And why get a big glass of ice water in Winter? Both my wife and I ask for no ice regularly, and it is pretty much the norm in Europe.”…
Did You Know?
5 strategies to optimize your menu and resources amid rising food costs. Strategic planning and thoughtful menu adjustments can help operators maintain profitability and customer satisfaction. Rising food costs can be a real challenge, directly affecting both your profit margins and customer satisfaction. But with some smart adjustments to the menu, your restaurant can tackle these hurdles without sacrificing quality or risking a loyal customer base. Here are five strategies to help you make the most of your existing resources and navigate these rising costs effectively.
Employee Tip
Operational empathy should be part of restaurant leadership. One of the most significant ways my background has influenced my strategy as a COO is through operational empathy. Following college, I began a role in Walt Disney World’s financial sector, where my first task was to dive deep into the operations of each restaurant in Magic Kingdom by working at them. While some might have objected to such a task, I saw this as an opportunity to widen my understanding of how each of these unique restaurants ran each day. In operations, you may think you have a pulse on the day-to-day while behind your desk, but showing up and seeing processes firsthand may open your eyes to new challenges or difficulties operators are having. By witnessing these areas of opportunity to improve, you can now fully grasp what is needed to develop a strategic plan to streamline operations and increase unit profitability.
