When Restaurant Growth Outpaces the Insurance Market
Certain signals often indicate it is time to reevaluate how risk is financed. As restaurant systems expand, operators uncover a truth left neglected: risk scales with growth. Multi-unit restaurants reach a stage where operational complexity intensifies more rapidly than the systems built to manage it. At this point, savvy leaders recognize that traditional insurance no longer reflects the frequency, pattern or financial impact of the exposures they face. Losses that once seemed isolated start repeating across markets and labor structures. Operators discover that their most frequent disruptions are not catastrophic events, but the steady drumbeat of operational, workforce and technology-driven issues that emerge when managing many units simultaneously. When Scale Changes What Risk Really Looks Like. Multi-unit operators experience loss patterns that small systems rarely encounter. National data makes the scale of these exposures clear. The U.S. Department of Energy estimates that power interruptions cost American businesses more than $150 billion annually. Restaurants feel the impact immediately because refrigeration, ventilation, HVAC and POS systems depend on continuous uptime. Even brief interruptions can disrupt revenue and inventory across multiple stores. At the same time, foodborne illness incidents—even minor ones—carry significant financial consequences. CDC analyses show that even minor contamination can cost a restaurant anywhere from several thousand dollars to more than $100,000, depending on the scope of response and reputational fallout. These exposures often fall below commercial deductibles or into policy exclusions. As a system grows, a pattern emerges: losses that appear manageable individually start to accumulate in ways commercial insurance was never designed to address. The Exposure Curve Bends as the Brand Expands. As restaurant groups scale, several categories of risk become more predictable and tend to surface across locations in consistent patterns…
The Top 5 Secrets to Data-Driven Restaurant Labor Optimization
Customer satisfaction must be factored into any labor improvement plan. In the restaurant and hospitality sector, labor is one of the top controllable operating costs, representing a substantial opportunity for cost savings and enhancing profitability. Where a restaurant group is new to leveraging data for opportunities, labor optimization is often a “lower-hanging” fruit, versus COGS or customer-level optimization, meaning it can be attacked immediately with results seen in weeks rather than months.
1 – Take Dollars Out of The Optimization Process.
When designing a labor optimization system (whether that be a basic tool in Microsoft Excel or a more advanced setup in a platform like Power BI), it is important to “take dollars out of the process.” Maximizing labor efficiency (and profitability) is the name of the game. Pricing varies by geography and wage rates change over time. On the other hand, the optimal number of servers needed to serve X number of checks in a shift does not. Therefore, I suggest basing all analysis on drivers like guest counts, check counts, covers or items sold vs. labor hours. That way you are analyzing the true relationship between variables without inflation or other wage impacts. Most POS systems do a terrible job of recording guest counts and covers, so I would suggest working with metrics that you know are accurate from the POS and that you can truly “hang your hat on.” Check count, in particular, is typically a good one. Therefore, I would suggest taking each of your locations and making a simple scatterplot of check counts along the X-axis and hours utilized along the Y-axis (remove the labor hours for roles that don’t “flex” with revenue and ancillary revenue streams like gift card or membership signups). Each dot on your scatterplot should represent one business week. You will immediately see how variable your labor usage is at each level of check count, which represents opportunity to refine your process and improve profitability.
2 – If You Want “Buy-In” From Operators, You Have to Predict at the Most Granular Level (Feedback Must Be Daily)
As described above, lots of “starter” systems start with simply plotting hours vs. check counts at the weekly level, predicting upcoming check counts, and assigning a “bucket of hours” to future weeks for managers to then base their schedules on. This is the most basic labor system one could implement (if starting from zero), can be done very quickly, and can be helpful. That said, the assignment of a “bucket of hours” in my experience often backfires. Operators see a bucket of hours coming from Finance or Leadership and often push back claiming “they can’t do that” or “that Finance doesn’t understand the business”…
Bielat Santore & Company – Restaurant Industry Alert
WE SELL RESTAURANTS!
Since 1978, the principals of Bielat Santore & Company, Barry Bielat and Richard Santore, have sold more restaurants and similar type properties in New Jersey than any other real estate company.
OCEAN COUNTY, NJ RESTAURANT FOR SALE
Ocean County Restaurant for sale. This owner-operated establishment features authentic Jersey Shore-influenced Carolina Style BBQ in a 1,550-square-foot space, including a full basement and private parking, offering a solid business opportunity. Over its 13-year history, the owners have built a solid reputation for consistent sales, strong goodwill, and a loyal customer base. Recognized for excellent reviews and name recognition, and over 60 years of combined experience in BBQ and diverse cuisines, ensuring high-quality offerings and expertise. The restaurant has expanded its menu to cater effectively to off-premise events. Currently, 30% of sales are dine-in, while 70% come from takeout, including pickup, delivery, and catering…
Contact Richard Santore, 732.531.4200 for additional information.
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New Jersey Joins the Movement to Limit Plastic Cutlery
What restaurants should know. Just before leaving office on Jan. 19, outgoing New Jersey Gov. Phil Murphy signed a bill into law that limits foodservice operators from providing single-use utensils to customers under specific circumstances. For quick-service and fast-casual restaurants, operators can only provide disposable utensils unless requested by a customer, and full-service restaurants are prohibited from providing single-use utensils to customers eating on premises. New Jersey is the latest municipality to pass what has colloquially become known as a “Skip the Stuff” law, which is designed to cut down on disposable plastics, particularly in takeout bags, where single-use utensils and plastic packaging are often added but later discarded. California, Washington state, and New York City have also passed similar laws. he new statewide law goes into effect on Aug. 1, and applies not only to restaurants, but also food trucks, cafes, cafeterias, and any other foodservice establishment. “Millions of tons of plastics are disposed of every year in this country, most of which ends up in a landfill at best, and into urban areas or the ocean at worst,” New Jersey State Senator Bob Smith said in a statement. “This bill would make significant strides to decrease the amount of litter that ends up in our communities. Through an educational campaign, we will also work to show our residents and businesses the many benefits of cutting down on single-use plastics.” Washington D.C. was one of the first municipalities to pass a Skip the Stuff law in 2020 under the Zero Waste Omnibus Amendment Act, which went into effect in 2021, and prohibits disposable foodservice-ware items like plastic cutlery, condiment packets, straws, and cold cup lids unless specifically requested by a customer. Washington state followed suit the following year with similar restrictions, followed by California in 2021, and other cities like Denver (2022), Chicago (2022), and New York City in 2023. As these laws gain traction — supported by environmental organizations like the Natural Resources Defense Council and delivery companies like Grubhub — what impact will they have on operators?…
How Full-Service Restaurants Reclaimed Control in 2025
A year full of uncertainty brought out new ideas. There are a lot of ways to describe 2025 for restaurants. But perhaps the best way to phrase it is there wasn’t a ton of predictability. Chipotle CEO Scott Boatwright noted earlier in the year the consumer retreated to the sideline. It felt as though diners became hesitant with discretionary income and pulled forward larger purchases in fear of what might come later. It was a dynamic, unlike some past financial downturns, where restaurants didn’t exactly land in the “affordable luxury” column. Fear of financial instability led to a low-traffic climate for an industry that, for years ahead of COVID, dealt with oversaturation. Too much choice, too many sites, and not enough visits to go around. Tack on years of inflation and restaurants struggled to drive transactions while constantly working to balance higher costs with a delicate customer. Specifically for full-service operators, TouchBistro said in its American State of Restaurants Report for 2026 released this week, “unpredictable” became a part of the operating reality. Between tariffs (justly or not) altering ingredient costs, labor expenses hitting record levels, and consumers scrutinizing every menu price increase, full-serves found themselves navigating an environment as complex as any. Many restaurants, the company said, responded by returning to levers they hoped were in the rear-view—raising prices, slicing operating hours, and making difficult menu adjustments. Yet despite persistent setbacks, 2025 data from 600-plus full-service operators showed another aftershock: operators found ways to win through evolving avenues. Profit margins returned to double-digits for the first time since 2022. Traffic in sit-down dining moved upward. Moreover, debt levels dropped significantly. That in particular, TouchBistro said, could suggest financial strain might finally be letting up. How full-service restaurants got there in 2025 owes to a few observations. Technology continues to become smarter. There are growing solutions to tap. Full-serves grabbed share by leading with experience in a high-cost space that saw many quick-serves press the ceiling and try not to topple over it. Here’s a look at how operators survived 2025 challenges and how they’re positioning for whatever come next…
Understanding the Six Types of Hospitality Customers
From mercenaries to fans. When I used to train my teams, I needed a tool to emphasise an important point that is often missed: not all customers are equal. Customers behave and feel differently. If we want to have an impact, we need to recognise who they are and our individual objectives for each one. So, I created the Kith & Kin Customer Loyalty Map inspired by classic customer loyalty models but reimagined through the lens of independent hospitality. I’ve used it to train every team I’ve worked with. It has stuck because it helps explain, in simple terms, how customers behave, and how we often end up focusing on the wrong ones. The model maps customers based on two factors: their level of satisfaction and their loyalty. The results aren’t always what you would expect. The Mercenaries. First, let’s start with the Mercenaries. These customers are highly satisfied, but they have no loyalty. They shop around for deals, bring a voucher, or choose you because you were the cheapest or most convenient option that day. You might deliver an amazing experience, and they might even leave a glowing five-star review, but they won’t be back. This is exactly why discounting rarely works to attract new customers – you’re not building a relationship. You’re attracting people who aren’t loyal anywhere. They’re driven by price, novelty, and convenience. Some may not feel the need to belong anywhere in particular. You might convert a few into loyal customers, but as you’ll see, there are better types of customers to focus your time and energy on. The Hostages. Next, let’s talk about the Hostages. It might sound ridiculous in a hospitality context, but it’s a real category in other industries. These are customers who are unhappy, yet they continue to come back because they feel stuck, rather than out of loyalty. Maybe they’re tied into a contract, or the alternatives are worse. Think broadband providers, energy companies, banks… classic hostage territory. You know the feeling – endless on-hold music and jumping through hoops to speak to a real person. The reason they get away with it? You’re not going anywhere. You’re a hostage. They can afford to care less, because leaving is hard. In independent hospitality, that doesn’t exist. Our customers can walk out and never return – and they often do. So, while this concept is useful to understand, it’s not one we can rely on. We can’t trap customers. We have to attract them and keep them. The Ghosts…
New Legislation Targets Credit Card Swipe Fees
What operators should know. The bipartisan Credit Card Competition Act, reintroduced earlier this month, is supported by the restaurant industry but opposed by credit unions. The Credit Card Competition Act — first introduced in 2022 and reintroduced by Sens. Roger Marshall (R-Kan.) and Dick Durbin (D-Ill.) earlier this month — aims to address the dominance of Visa and Mastercard in the credit card market. Together, the two companies account for 85% of credit card transactions. The legislation seeks to break up this duopoly, provide more options for consumers and merchants, and foster greater competition in the space. Proponents of the legislation argue that increased competition would lead to better service for consumers and lower swipe fees for merchants. “It’s time to bring real competition to a credit card network market dominated by Visa and Mastercard — and drive down the cost of everyday goods,” Sen. Marshall said in a statement. “The American Dream doesn’t work when the system is rigged, and this bill helps level the playing field.” The bipartisan legislation has been endorsed by President Donald Trump and supported by merchant associations such as the National Restaurant Association and the Independent Restaurant Coalition. “In 2024, U.S. businesses paid $236 billion in swipe fees, and those costs continue to climb,” the Independent Restaurant Coalition said in a statement. “Merchants typically pay between 1.5% and 3.5% of each sale in processing fees, but those rates can be significantly higher when customers use reward or premium credit cards. For independent restaurants, which often do not have the scale or leverage to negotiate lower rates, these fees are one of the largest unavoidable operating costs they face.” The Act would require banks with over $100 billion in assets to enable at least two networks outside of Visa and Mastercard for processing credit card transactions. Proponents of the legislation argue that increased competition would pressure Visa and Mastercard to lower their fees as more credit card networks gain prominence…
February Celebrations Inspire Menu Items
Headline restaurant menu news and trends. The February calendar is marked with a number of special days, including Super Bowl Sunday, Valentine’s Day, Mardi Gras and this year, the Winter Olympic Games. Restaurants are tying into these occasions with themed food and drink items and celebratory promotions. Here’s what’s happening on menus now and throughout the month. Taco Bell brought back its Crispy Chicken Nuggets to pair with a spicy new sauce: Hidden Valley Diablo Ranch Sauce. The popular nuggets are made with white meat chicken coated with a crispy tortilla-chip-flaked breading, while the new sauce combines creamy ranch dressing with Taco Bell’s smoky-hot Diablo sauce. The duo fits right into at-home Super Bowl watch parties. Football-shaped cakes and doughnuts are ready for celebrating the big game at Paris Baguette. Through Feb. 8, fans can order a King Cream Football Donut filled with custard and iced with chocolate and a Triple Chocolate Football Cream Cake, a layering of chocolate sponge, chocolate soft cream and chocolate crisp pearls. Both are embellished with football decorations. A collab between Wingstop and PopUp Bagels brings a new Lemon Pepper Schmear, available at PopUp Bagels locations from Jan. 29 through Feb. 11. The schmear blends Wingstop’s signature lemon pepper seasoning with cream cheese. But Wingstop is also getting a head start on Valentine’s Day with the launch of the Hot Honey Trio menu. The lineup includes two new limited-time flavors: Saucy Sriracha Hot Honey and Sweet Garlic Hot Honey. Both build on the flavor profile of the chicken chain’s Hot Honey Rub, with Saucy Sriracha turning up the heat and Sweet Garlic offering a sweeter contrast. Taters are in the spotlight at Wings Etc. Grill & Pub. New BFD Fries begin with seasoned fries or tots topped with crispy or grilled chicken, nacho cheese and BFD sauce—a smoky, tangy blend—along with a drizzle of ranch and sprinkle of Cajun Dust, a new seasoning. The casual-dining chain also launched a trio of alcohol-free drinks it’s calling Dirty Sodas…
Did You Know?
Digital PR for Restaurants: Trends, Tips, and Strategies for 2026. If you’re in the marketing world and know what SEO is, you may have heard of digital PR. Digital PR has picked up in popularity over time, especially with the introduction of AI tools like ChatGPT, Perplexity, and Gemini. This is because search engines have gotten much smarter about how they analyze backlinks and brand mentions, and those things factor into even local SEO rankings. While many agencies sell digital PR for the backlinks, this goes beyond links. Digital PR is about building real awareness through the audiences that journalists and bloggers reach. It’s about getting on websites and digital outlets that your potential customers are reading. In this article, I’ll explain what digital PR is and then walk through how to build a campaign. Digital PR is the practice of earning online coverage from outlets such as websites, blogs, internet news outlets, podcasts, and more…
Employee Tip
Before You Ask ChatGPT What to Order, Try Asking Your Server. Every day, artificial intelligence creeps into our lives without us even realizing it. Even replying to a simple email now, a window pops up asking if we need assistance writing. There’s probably a way to turn that prompt off, but I would have to use ChatGPT to find out how to do it. Some people are worried about AI taking their jobs. Restaurant workers might consider the possibility that someday a tablet sitting on the table will allow customers to place their orders themselves and then, 15 minutes later, a robot will roll out of the kitchen with a tray of food…
