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The Great Suburban Migration Comes for Restaurants
As more people relocate from cities. One hot July day, right in the thick of a sticky Northern Virginia summer, three local barbers did battle in a Falls Church restaurant. Each business owner had worked with chef Thomas Harvey to develop a signature dish that would appear on the menu of his eponymous restaurant as part of a competition. Dubbed The Battle of Broad Street, the event raised money for the Falls Church Education Foundation in a wholly unconventional manner and with somewhat high stakes. The most popular dish would find a month-long spot on the Harvey’s menu—it would also be permanently inked on the barber with the least popular dish. “It was a really fun community event, and we had such a great response. … The tattoo aspect of it was what really draws people,” Harvey says, adding that it could very well become an annual event. “We’re all big, bearded, tattooed guys, and like one of the guys said, it looks like the local criminals, [but] here we are promoting education.” About a month after the Battle of Broad Street, Harvey’s teamed up with a local pie purveyor to host a Dog Days of Summer beauty pageant, which doubled as an adoption event and fundraiser for an area animal shelter. It’s community events like these that continue to affirm the chef’s decision to open his own restaurant/café in the D.C. suburb of Falls Church. Competitions and fundraisers not only drum up traffic for Harvey’s, which just debuted in March, they also weave the business into the community fabric and character. As the chef puts it, “I have that kind of feel here.” And that overall feeling works well with his ultimate vision for the restaurant to be a central gathering spot, which he describes as the television show “Cheers” meets a general store.
Call the Scrap Yard
We have a labor model to be picked up. The restaurant business has grappled with labor challenges for about 40 years now, but never a situation as trying as the current one. It’s time to rethink the very nature of restaurant work. It’s been a while since we’ve climbed into the ring for our usual 10-rounder on some issue of importance to restaurants. After this give-and-take, any other issue might seem as trivial as the correct pronunciation of tomato. This time around, I’m arguing that the industry will suffer a devastating correction if it doesn’t completely trash and rebuild its labor model, and in double time at that. The why’s are as evident as the Help Wanted signs choking out the We’re Open! notices on restaurant storefronts. The business has been struggling since the mid-1980s to recruit enough workers to sustain its growth, but never has the shortage matched its current proportions. The typical U.S. restaurant has shortened its business week by 6.4 hours since 2019 because it can’t staff all shifts, according to Datassential. That’s a full night of lost sales. Chains on a growth tear say they’ve had to temper their site-selection and opening strategies because not enough potential hires are available in a choice market to handle the expected volume of guests.
Restaurants Push Thanksgiving Promotions
In response to high grocery prices. This Thanksgiving won’t be an easy one for many families. Turkey prices are up significantly year-over-year due to inflation, the avian flu and supply chain interruptions according to the American Farm Bureau Federation. Thanksgiving dinner, sides and all, is expected to be about 20% more this year, the federation forecasts. For added context, the average cost of a Thanksgiving meal for 10 is expected to be $64.05 this year, versus $53.31 last year and $46.90 in 2020. Consumers have been grappling with high food prices all year, yet grocery prices have outpaced restaurant prices by about 13% to 8.5%, respectively. Because of this persistent trend, 51% of consumers plan to reduce regular grocery spending to navigate the holidays, while 82% are looking for deals and discounts to get through Thanksgiving, according to Morning Consult. This seems to be presenting an opportunity for restaurants, many of which are rolling out aggressive Thanksgiving-themed promotions to position themselves as better overall value for revelers. In fact, according to a new survey from SpotOn, most restaurant operators are optimistic about this holiday season because their establishments can provide an affordable alternative.
Solving Restaurant Kitchen Electrical Issues
Working around a professional kitchen always has the potential to be dangerous. Electrical problems in your restaurant’s kitchen not only can shut your service down they can be dangerous. Maintaining your electrical system and appliances is important when it comes to keeping your establishment running smoothly. With the dangers associated with electrical problems restaurant owners and managers must take the necessary steps to ensure the maintenance of all electrical equipment. In my over 25 years of experience working with restaurants, these are the most common issues restaurants owners need to keep a lookout for when it comes to electrical problems. Hire a professional electrician once per year to inspect your electrical system and equipment. The electrician will check for damaged equipment, frayed wiring, exposed wires, power surges and any other potential electrical hazards. Once the inspection is complete the electrician will document their findings and present you with a detailed report. If any equipment or wiring need repairs or replacement take care of those issues immediately to keep your business and staff safe as well as prevent any code violations. All employees need training on how to shut off power to equipment using the safety switches in the kitchen. Teach your employees what to do if a colleague receives a shock from a faulty piece of equipment. Never touch the person with bare hands until the power is shutoff. Touching the person will cause the current to transfer to the other person. Train your employees what damage to look for on equipment such as exposed wiring, loose cords, or frayed wires. Hold training sessions with employees at least every 6 months and with each new hire.
Avoid the January Sales Tax Hangover
3 tips to plan now for your January sales tax bill. Some of the biggest days of the year for restaurant sales are fast approaching. Whether it’s night after night of large parties and functions or an increase in take out and food delivery app orders, foodservice establishments see big increases in revenue in November and December. This increase in sales also brings an increase in the amount of sales tax you’re collecting on that additional revenue. It’s easy to look at your funds available and mistake the sales tax you’ve collected as cash available for other needs. But come January, when the largest sales tax bill of the year may be due, the funds to pay the sales tax may not be available. For many restaurant owners, the January sales tax holiday hangover can spiral into missed payments and penalties. We have a few tips to make sure you don’t get caught off-guard with your January tax filing.
One Reason Your Food Cost Is So High
It’s possible you’re using the wrong numbers. Does your restaurant food cost look high to you? As we’ve all seen, the cost of goods that you sell has skyrocketed with high inflation and logistical issues everywhere you look. While a lot of factors are contributing to increasing costs in the restaurant industry, it’s still possible you’re using the wrong numbers when calculating your food cost and your food cost might not be as high as you think. In a restaurant, there are three things that cost you the most amount of money. First is an empty chair. Yes, an empty chair. You pay all these bills to have people come into your restaurant, but if nobody is sitting in there with a wallet to pay you, then your restaurant is costing you money. Next is labor cost and then food cost, especially if you’re a restaurant where food is 60, 70, 80, 90 percent of what you sell. While food costs have been doing nothing but going up, there are times where I find that I’m working on budgets with a new member, going through line by line on that budget, and we get to the food cost, and it looks really high. When this happens, I know they’re probably using the wrong number. Here is what I mean. The first question I ask a restaurant owner when we get to this point is whether they take inventories on a weekly basis to calculate their food cost, or are they just using purchases for their number? Probably nine times out of 10, the restaurant owners who go through my coaching program are using their purchases divided by sales.
What Restaurateurs Should Be Watching This Holiday Season
Here are some viewing options with particular appeal for operators. If cat tricks made up the last video you stole time to watch, consider this an intervention. This year’s wave of holiday films and streamable TV options abounds in presentations of special relevance to restaurateurs. Because the shows focus on the business and its stars, their entertainment value is sweetened with insights and punchlines of particular relish to restaurateurs. We’ve made it easy to draft a binge list by compiling this special holiday entertainment guide for operators. Included are older industry-focused presentations that could be labeled as edu-tainment. All you need to come up with is the time. And maybe some popcorn. “The Menu” (Movie, in theaters)…The excesses of fine dining are the grist for this cross between an Agatha Christie mystery and a molecular gastronomy demo that went way too far. A group of self-ascribed gourmands have gathered on an island sporting little else but a high-end restaurant where a god-like chef runs the kitchen. They’ve paid $1,250 each for the extensive tasting menu, which includes such over-the-top dishes as The Island (a rock topped with a selection of seaweed and algae, garnished with a scallop). A bread plate consists of exactly that, a plate where bread could be placed, but wasn’t. Seated at each table is a loathsome stereotypical guest, from critic to hardcore foodie to a demanding movie has-been. Some start to disappear, and others are openly threatened by the mad chef. One review warned of “excessive saucing.”
NYC Proposes $24 Minimum Wage for Third-Party Delivery Workers
The new rate would take effect in 2025. Couriers for DoorDash, Uber Eats and other delivery services in New York City would start earning $23.82 an hour in 2025 under a new proposal by the city’s Department of Consumer and Worker Protection. That would be a significant raise from the workers’ current average hourly wage of $7.09 before tips, according to the city. It’s intended to level the playing field between contracted couriers and regular minimum-wage earners. It would be one of the only laws of its kind in the U.S. and represents the latest challenge to the third-party delivery business model. Third-party couriers are classified as independent contractors and therefore not paid a minimum wage. They’re also not entitled to other benefits such as expense reimbursement and health insurance. New York’s proposal would seek to help its roughly 60,000 app-based delivery workers cover those costs by guaranteeing them a $19.86 hourly base rate, plus $2.26 for expenses like gas or repairs and $1.70 to make up for the absence of workers’ compensation. If the measure is approved, their hourly wages would rise to $17.87 when it takes effect and then increase to $23.82 on April 1, 2025.
Did You Know?
Top 100 Independent Restaurants. The Restaurant Business Top 100 ranking of the largest independent restaurants returns after a one-year, pandemic-related hiatus. Restaurants on this year’s list represent a wide range of menus and price points and come in all shapes and sizes. They served 272 million meals last year and generated $1.8 billion in sales. There were also some notable newcomers. RB looks at how these restaurants adapted and evolved to meet a changing industry.
Employee Tip
How restaurants can ease employee stress this holiday season. A recent study found two-thirds of seasonal workers ages 16 to 34 plan to look for temporary work during the holidays. Consider flexible scheduling because it can be difficult to get personnel at any time of the year, but especially around the holidays when restaurants are busier than usual. A recent study found two-thirds of seasonal workers ages 16 to 34 plan to look for temporary work during the holidays but would prefer working in a retail store to foodservice. One of the main reasons is that retailers often offer employee discounts on merchandise.
Bielat Santore & Company – Restaurant Industry Alert
If you are looking to buy or sell a restaurant or other hospitality-type property, not any New Jersey Commercial Real Estate broker will do. Confidentiality is a precondition when considering such a sale. Therefore, the sale of a restaurant demands the engagement of professionals who are vastly experienced in the hospitality business and real estate marketplace. Such professionals can be found within the commercial real estate firm of Bielat Santore & Company, Allenhurst, New Jersey, serving the business and real estate interests of restauranteurs since 1978.
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