Governor Murphy Signs Legislation Making Outdoor Dining Permanent
Law allows businesses to continue expanded service. Governor Phil Murphy today signed S3608/A4866 into law, making outdoor dining permissions permanent for restaurants and certain alcoholic beverage retailers and manufacturers. The permissions – initially established during the COVID-19 pandemic – were set to expire November 30, 2024, but will now be permanent, offering greater support to the food and beverage industry by facilitating opportunities to expand their licensed premises within designated outdoor space or on public sidewalk. “Outdoor dining has proven to be an incredibly successful venture over the past four years, benefiting business owners and patrons alike,” said Governor Murphy. “I’m proud to continue this popular measure and look forward to seeing our restaurant industry continue to grow.” “I’m pleased that both New Jersey residents and restaurants will be able to continue enjoying this option, which has a positive impact on our downtowns and enhances our communities,” said Attorney General Matthew J. Platkin. “I’d like to thank the bill’s sponsors as well as Governor Murphy for providing the state’s residents with as many choices as possible.” “This permanent change to the state’s retail consumption segment of the alcoholic beverage industry is a commonsense approach to changing customer preferences,” said Kirstin Krueger, Interim Director of the Division of Alcoholic Beverage Control. “I’m gratified that the pivot we made in 2020 will remain, allowing our industry to stay resilient and keep thriving.” “During the pandemic, outdoor dining was critical to allowing so many restaurants to stay open, keep employees on the payroll, and continue serving loyal customers. Though the pandemic is long behind us, outdoor dining will remain a staple in downtowns and main streets across the state thanks to the bill signed today by Governor Murphy, helping to revitalize communities by attracting more foot traffic, spurring economic activity, and bolstering small businesses,” said Tim Sullivan, CEO of the Economic Development Authority. Today’s legislation will authorize continued use of fixtures such as tents, canopies, umbrellas, tables, and chairs for outdoor dining, making permanent a law that was signed by the Governor in February of 2021. Under the new law, the holder of a temporary expansion permit issued by the New Jersey Division of Alcoholic Beverage Control (ABC) may have their temporary permit converted to a permanent permit, which is renewable annually and is issued at the approval of local officials…
Restaurant Lookahead
A new way of thinking about 2025 menu trends. As we head into 2025, it’s time to start thinking about trends a little differently and zero in on what resonates with you and your restaurant brand. Every year, the food industry collectively scrambles to determine the top trends that will define the months ahead. These are the foods, flavors, ingredients, and dishes that are supposed to keep your concept and menu fresh and exciting in your customer’s eyes—shortcuts to success, you might say. The past decade are filled with the “it” trend of the year: avocado toast, gochujang, ube, birria, etc. It’s not that any of these trends are bad ideas, of course—each one is delicious in its own right. And they were certainly trending, depending on how you measured the trend—an increase in social media mentions, growth on menus, increasing sales, etc. You may have even put some of them on the menu with success in increased sales, mentions, or visitation. But often we are sold these trends as the solution first, and we then must back into the problem we were trying to solve with that flavor or ingredient, if we think about it at all. When someone says avocado toast is trending, does that mean everyone should immediately put it on the menu? The breathless, ever-quickening pace of the trend cycle means we are constantly bombarded by trends, wondering if we’re missing out on a new consumer want and if the trends are passing us by. We are always sifting through this endless onslaught of trends, deciding if they make sense for our concept, brand, menu, and marketing goals. When we decide we should activate on them, we often feature them for a short amount of time, until that churn-and-burn trend cycle moves onto the next “it” item. Instead of thinking this way, it’s time to flip the script. Consider this your chance to take a step back, decide what you are truly trying to solve for in the year ahead, and then decide which trends can help you solve those needs. That includes new ways of looking at value beyond just low prices and an endless stream of combo meals. It means giving customers a new way to escape the grind of everyday life, whether that’s through new experiences or global flavors. It’s also about focusing on hospitality again, giving customers the human touch that may be lacking. As you think through the customer needs in the pages ahead, consider what resonates with you and your brand. Maybe you are looking for ways to give customers fun, exciting flavors and experiences that keep your concept young and fresh. Or maybe you want to incorporate more sensory experiences into the menu, getting your customers excited through smoky cocktails or the “crackling latte” trend. Once you’ve decided which customer needs will be a focus for your brand, it will then be much easier to choose the trends that will help you solve for those needs…
Bielat Santore & Company – Restaurant Industry Alert
NJ LIQUOR LICENSES FOR SALE
RECENT NJ LEGISLATION PROVIDES POTENTIAL
TO TRANSFER INACTIVE LIQUOR LICENSES TO ADJACENT MUNICIPALITIES
Wall Township “C” Liquor License – Type 33…Asking $600,000
Long Branch “C” Liquor License – Type 33…Asking $350,000
Jackson “C” Liquor License – Type 33…Asking $400,000
Old Bridge “C” Liquor License – Type 33…Asking $395,000
Berkeley Township “C” Liquor License – Type 33…Asking $275,000
Neptune City “C” Liquor License – Type 33…Asking $350,000
Middletown “C” Liquor License – Type 33…Asking $450,000
Call 732.531-4200 for additional information.
We invite you to visit our website, where you will find all our current listing inventory, a library of helpful industry resources and a collection of client testimonials expressing their assessments of our work and our service within the restaurant industry.
A voice for our industry. If you find these weekly bulletins informative and beneficial, we kindly ask that you write a brief Google review providing a vote of your appreciation. Simply click this link and leave a review. Thank you.
The Restaurant Industry’s Retrenchment is Proving a Boon for Liquidators
A steep surge in closings is providing the resellers with unprecedented inventory. Optimists say the wholesale closings of restaurants in recent months will eventually foster new shoots of growth. For firms in the business of liquidating shuttered operations, that wait is already over. Their trade is booming as inventories are swollen by the massive shutdowns within heritage brands like TGI Friday’s, Red Lobster, Denny’s, and Applebee’s. “Year to date, we’ve done about 400 closings,” said Neal Sherman, founder and CEO of the Rochester, New York-based restaurant liquidator TAGeX. “We’ve been in business for 38 years. It’s definitely more than we’ve seen at any other time.” He called it “the ultimate shakeout,” and notes the wave has swept up more than just the legacy operations whose stunning retrenchments are generating headlines. “It’s not just the apocalyptic closings,” said Sherman. “We’re closing higher-end independent operators across the country, we’re closing QSRs that can’t compete with local fast casuals, we’re closing lots of casual-dining restaurants. I’d say it’s any operators who have not invested in their brands.” The liquidations can be as varied as the shuttered properties. Sometimes TAGeX is working for a lender. Other times, “it’s the operators themselves,” said Sherman. “It’s been the trained trustee of the court, or a ‘chief restructuring officer’—we’ve been seeing more of those. “It all depends on the situation and how fast they have to vacate the location.” Sometimes the facility is sold lock, stock and barrel. But usually the operation is broken into lots, each with its own For Sale sign. “It might be 75 to 200 lots,” Sherman continued. “A lot can be a single piece of equipment, or it could be several pieces of smallware.” The lots are stored in the former U.S. Army base that TAGeX bought in upstate New York. They’re sold in a variety of ways, from middlemen dealers to e-commerce. The company’s liquidation marketplace, RestaurantEquipment.bid, might draw “as many as a million views a day,” said Sherman. “We can’t help thinking it’s going to continue to grow”…
Why the Restaurant Industry Isn’t Always the First to Get the Hottest Tech
The bulk of the use-case is for marketing and sales purposes. We’ve seen the headlines about Chipotle, White Castle, and other restaurant chains embracing a “digital-first” strategy and going all in with artificial intelligence. These are great headlines, but are they more than just empty buzz? The restaurant industry as a whole is a perennial laggard in new tech adoption in general and artificial Intelligence in particular. The reasons for this shouldn’t be a mystery. Restaurants are 90 percent-plus independents, labor-intensive, built around human processes that are less than replicable, and have slim (if any) profit margins. These industry qualities create a palate that is muted for internal propensity to embrace tech, while posing challenges for external technology developers and partners. The standard adoption curve demonstrates the journey toward market saturation (near complete adoption). While AI may be in the early majority stage, meaning 16–50 percent of industry are leaning heavily on AI to advance their capabilities, build efficiencies, and drive growth, the food and restaurant industries are far behind. For food and beverage industry vets, this is not news, the restaurant industry is historically late to the tech party, preferring to sit on the sideline until demonstrable benefits to top and/or bottom line are vetted by others with deeper pockets (and margins). According to McKinsey, use of AI for at least one business function has increased from 33 to 65 percent in the last year, while retail markets have less than 8 percent of respondents using AI regularly for work. Of those using Gen AI regularly at work, the bulk of the use-case if for marketing and sales purposes. Depending on the source, there are three, eight, and up to 13 ways restaurants can use AI. From facial recognition to automated order processing to predictive analysis, the “advantages” are well stated, but not well vetted. Of those using AI regularly at work, the bulk of the use-case is for marketing and sales purposes. For independent restaurants, specifically startups, with a minimal marketing budget and inconsistent cash flows, even investing in AI for marketing may be a stretch…
Holiday Diners Seek Out Unique Experiences
The holiday season is bringing a wave of excitement among diners. This holiday season, 67 percent of diners are seeking more than standard reservations, with themed holiday meals (44 percent) and multi-course feasts (39 percent) being the most popular options, according to a survey from Tock. Survey results indicate diners are seeking distinctive dining experiences, planning ahead with early reservations, and seeking out earlier evening bookings. 68 percent of respondents planning to celebrate at restaurants or bars. Additionally, 65 percent are reporting they are pretty or extremely enthusiastic for the holiday season. In addition, many diners will be on the lookout for early mealtime reservations, reflecting dining trends seen over the past several years. Nearly half (49 percent) of respondents will be seeking a reservation during the 4 to 6 p.m. early bird timeslot. The demand for earlier reservations provides restaurants the opportunity to get creative when it comes to driving traffic for second and third seating’s with memorable experiences, dynamic pricing, or late-night specials. To learn what restaurant operators can do to provide a better guest experience and maximize profits this holiday season, Modern Restaurant Management (MRM) magazine reached out to Matt Tucker, Head of Tock. Operators should feel optimistic heading into this holiday season. Our data shows a strong appetite for dining out, with 68 percent of respondents planning to celebrate at restaurants or bars this season. Success for hospitality businesses will depend on getting unique, yet on-brand, holiday experiences live early, so guests can book them. Whether it’s a holiday Chef’s Table, a festive tasting, or a wine pairing with the restaurant’s sommelier—now is the time to plan and promote. We continue to see a clear shift toward experience-driven dining, with guests seeking themed holiday meals and unique outings beyond a standard reservation. Tock’s all-in-one platform enables hospitality businesses to showcase and sell a diverse range of experiences, from everyday reservations to unique events, all in one place—year round or seasonally…
Small Chains and Independents Ramp Up Their Catering Programs
Operators work to maximize their four-wall profitability. Catering has become a much bigger part of the conversation throughout the past couple of years as restaurant operators look to maximize their revenue streams to offset higher input costs. The channel has outpaced overall industry growth by 50%, with chains from Red Robin to El Pollo Loco to Applebee’s and Outback Steakhouse ramping up their programs. But it isn’t just the big players jumping into the space. Smaller concepts and even independents have also begun adopting catering in earnest. Mario’s Pizzeria of Naugatuck just launched a new catering service, for instance, while St. Louis Italian-style eatery Porano has also jumped into the channel. New York City-based Delmonico’s Restaurant Group just added a partnership with Elegant Affairs Catering, called Delmonico’s by Elegant Affairs, to offer a premier off-site catering option for events around Manhattan, Long Island, and the Hamptons. These additions are certainly creating an intriguing competition for top-of-mind awareness, especially during the holidays – a new report from Channel Media Group finds that 90% of businesses plan to order catering from local restaurants this season. These smaller chains and indies have their work cut out for them with smaller marketing budgets, but there is plenty of optimism about catering’s potential, nonetheless. Here’s how some of them are approaching their fledgling channels. Killer Burger recently began testing catering in partnership with ezCater. The company has made significant enhancements to its kitchen operations to manage heavier order volumes and is gauging demand for a “party-in-a-box” experience featuring its signature builds outside of restaurants. Currently, a “Killer Box” features 12 Mix & Match Pint Burgers. “It’s all about getting more burgers in more mouths without sacrificing taste and presentation quality, and creating memorable experiences for our guests,” a Killer Burger spokesperson said…
Small Retailers Embrace Efforts to Rein In Swipe Fees
As cash fades. Business owners say card transaction fees are a growing monthly expense, one often passed to consumers. They’re cheering efforts to lower them. Credit and debit card fees were always a big business expense for Patti Riordan, who owns a hobby shop in Lancaster, Ohio. But, she said, since the coronavirus pandemic, they’ve become a pain point. As a pandemic precaution, droves of customers gave up cash in favor of contactless payment methods like tap to pay, and the percentage of Ms. Riordan’s sales processed through a card network rose to 75 percent, up from 65 percent in 2020. Now, so-called swipe fees are her third biggest expense, behind payroll and rent, amounting to roughly $18,000 a year. “There is no room to pay more — we’re just operating so thin,” Ms. Riordan said. Debit and credit card fees are among the top monthly expenses for many small businesses, which say the costs are becoming more onerous as fewer consumers carry cash. Merchants of all sizes paid a total of $172 billion in processing fees in 2023, up from roughly $116 billion the year before the pandemic, according to the Nilson Report, which tracks the payments industry. That’s a 48 percent increase. When they swipe a credit card, businesses pay fees to the bank that issues the card, to the payment network and, often, to companies like Toast and Square that help process the transaction. The biggest share of those fees — averaging more than 2 percent of a transaction amount — is set by payment networks like Visa and Mastercard and paid to the issuing bank, ultimately benefiting both the banks and the networks. Visa and Mastercard together control more than 80 percent of the market for card purchases. But, the two companies have argued, there is robust competition among payment networks. American Express — which accounts for roughly 11 percent of card purchases, and Discover, roughly 2 percent — are the two other leading payment networks, according to Nilson Report data. Merchants can’t negotiate their own fees, and they don’t always understand why the fees change…
Did You Know?
With staffing, should you try before you buy? Why a temp-to-hire model could help you find the best employees. Sunk costs, quick turnover, training expenses — the list goes on. Anyone who’s ever hired staff knows there are multiple costly risks to staffing. The best of the best new hires come onboard only to find another “better” job weeks later. Or someone presents well in the interview, then starts the job and you discover that what they told you doesn’t align with their true skill set. It can be frustrating.
Employee Tip
The Platinum Rule: Lead by Understanding Others. Several years ago, I ran environmental health for a food and beverage company with a team of three people, plus me. We were responsible for safety and compliance for more than 150,000 square feet of stores in five different cities, and despite being a successful department, our work styles couldn’t have been more different. Person A preferred detailed, novel-length emails and excel sheets. Person B rarely came into the office, working mostly from the store (and the espresso bar), with no use for emails or texts — just phone calls. And Person C, refused to work before 10 a.m. or after 6 p.m. and had a unique approach to tasks (and life), like insisting three cupcakes (instead of two) were definitely dinner. If I had treated them all the way I prefer to be treated — by sending a flurry of texts and emails between 6 a.m. and 9 a.m. or holding a series of back-to-back in-person meetings from 10 a.m. to 2 p.m. (I love an in-person consensus-building sessions) — our team dynamic would have crumbled…
