krha news & insights - 3rd quarter

16
Your Voice for the Hospitality Industry. A letter from the CEO.............1&10 A letter from our Chair .....................3 HeinSight............................................4 ProStart..............................................7 Calendar of Events...........................8 2013 Industry Growth...................10 Welcome New Members...............11 Continued on 8... Table of Contents News & Insights 2013 Submissions You are invited to share your expertise and perspective. To submit articles or other editorial input, please contact Lisa Graham at [email protected] or 316.267.8383. Advertising Get your products and services noticed by industry decision-makers through advertising. Kansas Restaurant and Hospitality Association News & Insights is distributed to all members four times a year, which maximizes your advertising exposure to the largest possible audience. For information on advertising opportunities, please contact Lisa Graham at [email protected] or 316.267.8383. Membership For more information about your membership or to renew your membership contact our office at [email protected] or 316.267.8383 or log on to www.krha.org. Your voice for the hospitality industry The best restaurateurs have always scrutinized every aspect of their business for ways to increase efficiency to maximize profits. Today, it is required for every operator simply to remain in business. Between fewer customers, many of who are demanding more satisfaction but expect to pay less for it, and rising costs, not to mention plenty of competition doing their best to rise to the challenge, much of the wiggle room many restaurateurs have had in the past in profitability is gone. The best restaurateurs have always scrutinized every aspect of their business for ways to increase efficiency to maximize profits. Today, it is required for every operator simply to remain in business. Of course, any attempts to increase profitability must be conceived of with the big picture in mind. Saving a little money on food costs by serving disappointing food or trimming labor costs by providing annoying service won’t increase your profits; it will eventually put you out of business. Let’s look at 10 things you can do, all focused on your menu, to increase your profitability that won’t lower the quality of your customers’ experiences but will, in one way or another, actually increase it. Improve your inventory/ordering system. As we all know, food costs are one of a restaurateur’s biggest expenses. If handled well, they will be a key factor in your success. Mishandled, they can make it impossible for you to make any money. Good food costs start with good ordering, which is largely dependent on how useful your inventory is. The goal of purchasing is to have just what you need, when you need it, at the best price you can get it for, while still receiving an acceptable level of service from your vendor. Every purchase should be determined by your menu, what you already have in-house, and your anticipated amount of business. Whoever is placing the orders should be intimately familiar with all three factors. A list of all food items, including accurate specifications, vendors, terms and prices should be available, and used. Spreadsheets are great for this. Par stocks should be determined, and a physical inventory taken before each order is placed. It doesn’t need to be a complete, end-of-the-month-caliber inventory, but an informed glance at the most important, expensive or perishable items is important. Ordering things you don’t need, especially if they are very perishable, is a careless, unnecessary and expensive mistake. And not ordering something you do need will frustrate your kitchen crew, waiters and customers. Having a good system in place that is actually followed will prevent both mishaps. There’s No Place Like the Present 10 Things You Can Do Today to Increase Menu Profitability by Joe Abuso, Restaurant Start Up & Growth Magazine

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Page 1: KRHA News & Insights - 3rd Quarter

Your Voice for the Hospitality Industry.

A letter from the CEO.............1&10A letter from our Chair.....................3HeinSight............................................4ProStart..............................................7Calendar of Events...........................82013 Industry Growth...................10Welcome New Members...............11

Continued on 8...

Table of ContentsNews &Insights

2013Submissions

You are invited to share your expertise and perspective. To

submit articles or other editorial input, please

contact Lisa Graham at [email protected] or

316.267.8383.

AdvertisingGet your products and

services noticed by industry decision-makers

through advertising. Kansas Restaurant and Hospitality Association

News & Insights is distributed to all

members four times a year, which maximizes

your advertising exposure to the largest

possible audience. For information on advertising

opportunities, please contact Lisa Graham at

[email protected] or 316.267.8383.

MembershipFor more information

about your membership or to renew your

membership contact ouroffice at [email protected]

or 316.267.8383 or log on to www.krha.org.

Your voice for the hospitality industry

The best restaurateurs have always scrutinized every aspect of their business for ways to increase efficiency to maximize profits. Today, it is required for every operator simply to remain in business. Between fewer customers, many of who are demanding more satisfaction but expect to pay less for it, and rising costs, not to mention plenty of competition doing their best to rise to the challenge, much of the wiggle room many restaurateurs have had in the past in profitability is gone.

The best restaurateurs have always scrutinized every aspect of their business for ways to increase efficiency to maximize profits. Today, it is required for every operator simply to remain in business.

Of course, any attempts to increase profitability must be conceived of with the big picture in mind. Saving a little money on food costs by serving disappointing food or trimming labor costs by providing annoying service won’t increase your profits; it will eventually put you out of business.

Let’s look at 10 things you can do, all focused on your menu, to increase your profitability that won’t lower the quality of your customers’ experiences but will, in one way or another, actually increase it.

Improve your inventory/ordering system.As we all know, food costs are one of a restaurateur’s biggest expenses. If handled well, they will be a key factor in your success. Mishandled, they can make it impossible for you to make any money. Good food costs start with good ordering, which is largely dependent on how useful your inventory is. The goal of purchasing is to have just what you need, when you need it, at the best price you can get it for, while still receiving an acceptable level of service from your vendor.

Every purchase should be determined by your menu, what you already have in-house, and your anticipated amount of business. Whoever is placing the orders should be intimately familiar with all three factors.

A list of all food items, including accurate specifications, vendors, terms and prices should be available, and used. Spreadsheets are great for this. Par stocks should be determined, and a physical inventory taken before each order is placed. It doesn’t need to be a complete, end-of-the-month-caliber inventory, but an informed glance at the most important, expensive or perishable items is important. Ordering things you don’t need, especially if they are very perishable, is a careless, unnecessary and expensive mistake. And not ordering something you do need will frustrate your kitchen crew, waiters and customers. Having a good system in place that is actually followed will prevent both mishaps.

There’s No Place Like the Present10 Things You Can Do Today to Increase Menu Profitabilityby Joe Abuso, Restaurant Start Up & Growth Magazine

Page 2: KRHA News & Insights - 3rd Quarter

2

Adam MillsPresident & [email protected]

Neeley CarlsonVice President, Education & Training

[email protected]

Tina CoxVice President, Risk Management

[email protected]

Sheila ThomasVice President, Finance

[email protected]

Bob ChambersMember Services Representative

[email protected]

Karie BellAccount Manager

[email protected]

Dave BelvinLoss Control Manager

[email protected]

Rich EwenMember Services Representative

[email protected]

Lisa GrahamMarketing & Communications Manager

[email protected]

Christine Hanaka Account Manager

[email protected]

Karen Hrdlicka Claims Specialist

[email protected]

Hannah NighswongerMarketing Representative

[email protected]

Jeff RichardsMember Services Representative

[email protected]

Anna SadlerAccounting Assistant

[email protected]

Shannon Wilkinson Accounting [email protected]

Ron & Julie HeinLegislative [email protected]

by Adam Mills, KRHA President and CEO

Benefits of a KRHA Membership

KRHA Staff

Continued on 5...

Chances are, if you are like most small business owners, you have to focus a majority of your time on things that affect your day to day operations. Issues like: Who will be at work tomorrow? Did I order enough chicken to get me through the day? Will we make our lunch numbers? When things go bad in these areas…it makes for a bad day! But what about major catastrophic changes that not only make your day bad but could financially ruin or devastate your business. Things like customers or competitors filing lawsuits against you, the government enacting legislation that dramatically changes the way you do business, employee’s getting injured or seriously ill in the scope of employment. KRHA is there for you every step of the way, protecting your business from EVERY angle!

AdvocacyIt all began in Kansas City in 1917 when egg brokers tried to raise prices to 65 cents per dozen. The restaurants in Kansas City organized an egg boycott and prices dropped to 32 cents. In 1919 those same restaurateurs launched a national organization and held their first meeting on March 13th in Kansas City. This organization of restaurants would evolve and become the National Restaurant Association. Just a few years later our state would join forces with the NRA and in 1929, the Kansas Restaurant Association was born! From that moment on, your trade Association has taken on issues that could potentially harm your ability to run a profitable business, whether that meant negotiating for better pricing or defeating harmful governmental regulation at the state, local or national level. In this capacity we continue to serve as a helpful source of information with literally a library of information on topics that affect your business. As a member of KRHA, you can trust that we have resources to provide you information on anything you need to run your business. Just the same as you spend all day every day serving your clientele and delivering your product to the paying customer, we spend all day every day serving our industry by telling our story to the public, educating government officials about our industry, and identifying issues that need our attention to ensure our industry has a vibrant future.

Risk ManagementWhat about customer lawsuits, employee issues, and the other items brought about that could cost your business $1,000’s if not $1,000,000’s in damages? Most of these problems feel as if they are out of your control and many times they are. KRHA and its affiliate companies are here to help manage this risk for you. Since 1990 the KRHA has operated a Self Insured Fund (KRHASIF) to manage your worker’s compensation needs. Through KRHASIF we hire a Loss Control Representative who will actually spend time in your business to help you prevent injuries and provide helpful advice on safe operating procedures. Once an injury occurs, our in house Claims Management handles the claim in the most efficient and effective manner in order to get your employee healed up and back to work. Efficient claims handling saves you money by effectively lowering your experience mod which cuts the overall cost for your insurance. Our other insurance entity, Hospitality Insurance Services acts as a broker to the insurance market to find the most suitable companies to protect your business

Page 3: KRHA News & Insights - 3rd Quarter

Your Voice for the Hospitality Industry.Kansas Restaurant and Hospitality News & Insights is a quarterly publication for members and industry partners. If you have questions about your membership or would like additional information about benefits, please contact KRHA at 316.267.8383 or 800.369.6787.

A letter FromOur Chairby John Arnold, KRHA Chair &Proprietor Redrock Canyon Grill

Benefits of MembershipThe Kansas Restaurant & Hospitality Association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save on their bottom line each year by taking full advantage of KRHA’s many member benefits.

Contact us for more information at 800.369.6787KRHA Self Insurance Fund• Workers’ Compensation

Hospitality Insurance Services• Property & Liability• Health Insurance Programs• Liquor Liability• Trade Name Restoration• Employment Practices Liability• And much more...

Some of our providers:

Heartland Payment Systems• Credit Card Processing

ServSafe• Food Handling and Alcohol Server Training

National Restaurant Association• Dual membership with NRA included with KRHA retail membership

BMI, ASCAP, SESAC• Discounted Music Liscensing

3

It is time to celebrate – it’s officially summer! As the Chairman of the Board for the Kansas Restaurant and Hospitality Association, I would like to formally express excitement for a wonderful change in seasons. Patios and live music are right around the corner.

The weather in Kansas has felt unseasonably warm, but the produce vendors continue to affirm the weather in the Salinas valley is typical. Often, restaurants will make slight adjustments to lighten up fresh menu items. The commodities have been documented and most produce is doing well. To note, berries such as strawberries are having a slightly hard time keeping up with the demand, but watermelon is having an amazingly abundant growing season. Communicated in many fresh produce sources is the low pack outs on potatoes may begin to increase as quality storage lots begin to open.

Also, the beginning of summer marks a large increase in hiring new staff and availability beginning to open up on veteran staffs’ schedules. It has always been a “John Arnold” philosophy to hire the best possible team. I have even been quoted to say, “You really need to hire people smarter than you!” Ha! The importance of having a star staff is imperative in the restaurant and hospitality realm because they are the ones making a difference in the lives of our guests. Many talented people apply for service driven jobs in the summer. It is our responsibility to have the right processes in place to attract quality people and bring out their valued behavior.

Cheers to fresh menu changes and spending your time with the right people!

John Arnold KRHA ChairProprietor Redrock Canyon Grill

HOSPITALITYI n s u r a n c e S e r v i c e s

Page 4: KRHA News & Insights - 3rd Quarter

2013 Session Produces KRHA Victoriesby Ron Hein, KRHA Legislative Counsel with Hein Law Firm, Chartered

Following a successful Legislative Session in 2012, the Kansas Restaurant and Hospitality Association scored major victories again during the 2013 Legislative Session.

As in 2012, another mega-alcohol bill was passed in 2013 (HB 2199) with the legislative/lobbying efforts of the KRHA. Among the changes created by the new law, which is effective July 1, are the following: authorization for restaurants to permit sampling of alcohol with restrictions (no more than 5 samples per visit and no removal of samples from the premises); amendments that will make employment qualifications less restrictive regarding workers with previous liquor law violations; permitting of lodging facilities to utilize drink coupons for hotel guests; and permitting of the serving of margaritas, mojitos, and sangria in pitchers not to exceed 64 ounces.

In addition to the passage of the mega-alcohol legislation, the KRHA is working with the Division of Alcoholic Beverage Control (ABC) with regards to proposed changes to the rules and regulations of the ABC to permit infusion of spirits.

Lastly, the KRHA requested introduction of legislation (SB 243) to permit restaurants to purchase directly from wholesalers in addition to purchasing alcohol from retail liquor dealers. The bill was introduced late in the session, and no hearing was scheduled on the bill. The KRHA will pursue this bill during the 2014 legislative session. Of even greater importance to the restaurant and lodging industries was the passage of a bill to preempt local units of government from imposing onerous anti-business restrictions. HB 2069, introduced at the request of and lobbied by KRHA, prohibits local counties and municipalities from enacting ordinances or resolutions which would impose mandatory leave requirements on businesses and would also prohibit imposition of local ordinances requiring payment of wages greater than the state or federal minimum wage. This act will prohibit local units of government from imposing living wage or prevailing wage requirements on businesses, and will also prohibit such local governmental units from imposing mandatory paid leave requirements on businesses.

Also, the KRHA supported HB 2722 which was enacted in the final minutes of the session, which will benefit members of the KRHA seeking SBA loans for their restaurant or lodging business, as was the case of a KRHA member building a hotel who worked tirelessly on this legislation. The legislation was prompted by a ruling of the Court of Tax Appeals which limited the use of tax abatements involving industrial revenue bonds.

The KRHA was also involved in promoting legislation, along with other pro-business groups, which passed in 2013 dealing with workers compensation and unemployment insurance legislation.

All in all, the KRHA had a highly successful legislative session this year, thanks to the efforts of numerous KRHA members, the KRHA staff, and the lobbying team.

4

Allied Member’sGoods & Services

Ameripride Services816.617.3229

benchmark construction785.542.1400

benchmarkconstructionks.com

Central financial services316.425.7740

discover network816.200.4377

discovercard.com

Farm bureau financial servicesDoug adams agency

316.755.2717

floor transformations, llc316.250.1524

floortransformations.com

Green energy products llc316.215.0003

House of Schwan, inc316.636.9100

anheuser-busch.com

Innovative telecom Consultants913.645.9820

kansas.interstatelogos.com

kansas expocentre/SMG785.235.1986

ksexpo.com

national Hospitality supply800.526.8334nathosp.com

remus enterprises785.738.8592

Trugreen316.945.5153

Visit topeka800.235.1030

visittopeka.com

Page 5: KRHA News & Insights - 3rd Quarter

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5

Continued from 2...

from the risk of physical damage by Fire, Wind, Hail, Theft, etc. Hospitality Insurance Services also works hard to find the unique coverage your business needs to protect against breach of sensitive data, food borne illness, liquor liability, wrongful termination, sexual harassment, and other employment practice allegations. These are just a few examples of the types of risk management issues KRHA and its affiliates can help you with.

Workforce Development & EducationTying everything together to better train our workforce and educate the public is the KRHA Education Foundation (KRHAEF). The KRHAEF serves the membership to develop the workforce in the area of food safety and sanitation and the responsible service of alcohol through our ServSafe Food Safety and ServSafe Alcohol Training programs. The primary benefit of these programs is obvious as one single preventable event could lead to the closing of your business. A standardized training and certification program helps prevent devastating safety events from occurring in your business. Indirectly training is shown to lower staff turnoever and it gives state regulators and customers confidence in a restaurant or hotel’s ability to safely serve the public! In tandem with the ServSafe products, KRHA has partnered with the NRA to build an industry recognized school to career program called ProStart. ProStart was designed to get people excited and

The next frontier for social media and smartphones may well be the restaurant table. Consumers want to see the new technology they use integrated into their dining experience, a new study from Technomic on consumer-facing technology shows, especially if it will speed up the process of getting their meal or paying their bill. Just over half of respondents to the survey said it’s important for restaurants to start using these technologies, and that they expect to use technology more often in the coming year to order food.

Sounds like the first restaurant that lets you order dinner from their mobile-enabled tweetstream wins. So far, restaurants have been slow to take to technology, but a few chains are breaking new ground. Here’s a look at some of the recent innovations:

Mobile ordering. This is one area where fast-food chains are in the forefront. Domino’s Pizza is so far along with it, they recently introduced their Spanish-language mobile-ordering app.

iPad order kiosks. Why wait in line if you can file your order at a kiosk immediately, and then sit down and relax? Blazing Onion Burger Company is testing this system out in a new restaurant opened last month in Seattle. Expect more of this, since it

How restaurants are using technology to deliver better customer service

on a career path in culinary or hospitality management. As the State of Kansas’ largest private sector employer, it is extremely important to have a workforce that is ready to step up and lead the hospitality industry into the future. Just like ServSafe, there is an important indirect benefit. The ProStart programs in our high schools help legitimize our industry and the career opportunities offered. This helps bring positive attention to our great businesses across the state and strengthens consumer confidence to those who dine in our restaurants, sleep in our beds, and are entertained by our hospitality.

KRHA is in business to promote, educate, and legislate for the hospitality industry of Kansas. You can see we truly are protecting your business from EVERY angle!

Adam R. MillsPresident & CEO

by forbes.com

Continued on 16...

Page 6: KRHA News & Insights - 3rd Quarter

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Call 866.941.1477 or learn more at

HeartlandPaymentSystems.com/restaurant

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Page 7: KRHA News & Insights - 3rd Quarter

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by Neeley Carlson, Vice President Education & Training

kansas Food Code Updates

The Kansas Department of Agriculture recently updated the Kansas Food Code. Most changes were minor updates that will have little impact on your operation. We wanted to bring a few of the changes to your attention.

Person in Charge (PIC): The definition has been changed to clarify that when no PIC is designated, any employee present during operation may be considered a person in charge. All operators are required to have a PIC at the food establishment at all times. This person is responsible for ensuring the establishment is in compliance with the code and ensure employees are properly trained in food safety.

Service Animal: The definition has changed and is now consistent with the ADA. A service animal is now defined as a dog that is trained to do work or perform tasks for the benefit of an individual with a disability.

Temporary Food Establishment: The definition was changed to match the meaning of occasional food service establishment, and is now defined as an establishment that operates in the same location less than seven days in a calendar year.

When to Wash: The food code provides a list of when handwashing must occur. Section 2-301.14(I) now states that employees shall clean their hands after engaging in other activities that may contaminate the hands.

Jewelry: Clarification was provided for the definition of a “plain ring”. Except for a ring with a level surface, such as a wedding band, while preparing food, food employees may not wear jewelry including medical information jewelry on their arms and hands. Medical ID bracelets as well as rings with carving or stones can provide a harborage area for bacteria. If employees need to wear a medical ID, they should wear a necklace, which can be tucked under their shirt.

Bare Hand Contact: Operations that want to prepare ready to eat food with their bare hands are only allowed to do so after obtaining prior written approval from the regulatory authority. The code outlines the written procedures and policies that would need to be followed.

Non-Continuous Cooking of Raw Animal Food: Some establishments will cook raw animal food in a two step cooking process. Typically with this procedure the product is partially cooked, cooled, held at cold holding temps, and then fully cooked before serving. The code now requires prior written approval for this process and outlines the cooking procedure that shall be followed to ensure the safety of the food. If using a non-continuous cooking procedure the final cooking temperature must reach 165°, regardless of what animal protein is being cooked.

Food Labels: Although not new to the code, many operators

are not aware of this requirement. Food prepared and packaged in your establishment for self service, shall meet proper food labeling requirements. For example: If an operator makes cookies or ice cream cakes and then packages the product to allow for self service, labeling is required. To remove the labeling requirement, operators have two options. Self service is allowed if the product is not prepackaged, such as donuts or hot dogs at a convenience store. The other option is to prepackage the item, but not allow for self service. A listing of labeling requirements is included in the code.

Backflow Prevention: The Kansas food code and the various model plumbing codes (as well as many but not all of the local plumbing codes) may have different requirements when it comes to direct drain connections. All of the codes prohibit direct drain connections on equipment used to hold food, while some plumbing codes require direct connections for warewashing sinks. The bottom line is that sinks (or other equipment) used to hold food, even for brief periods of time, have always required an indirect drain connection. Under the new Kansas Food code, food prep sinks are still required to have an indirect drain connection, but warewashing sinks, if not used for food prep, are not. As always, the Kansas Food code defers to any local plumbing code.

The most noticeable change in the food code is the terminology being used for violations. Previously violations were categorized as a critical or non-critical violation. Under the new system violations are categorized as a priority item, priority foundation item, or a core item. Priority items are direct interventions that will eliminate, prevent or reduce a hazard to an acceptable level. Priority foundation items are the provisions in the code that support a priority item. Core items are similar to non-critical violations. They usually relate to general sanitation, operational controls, sanitation standard operating procedures or general maintenance.

Priority Item P: Cooking ground beef to 155° eliminates the potential risk of a foodborne illness.Priority Foundation Item Pf: Having temperature measuring devices readily accessible or having a small diameter probe available to temp thin food such as a hamburger patty supports the proper cooking temp. Priority Item P: Using a chemical sanitizer to reduce microorganisms on a food surface to a safe level.Priority Foundation Item Pf: Using a test strip to ensure the proper concentration of sanitizing solution is being usedCore: Identifying proper procedures for transport and storage of clean equipment

It is difficult for operators to keep up to date on everything in their operation. KRHA works hard to keep you informed on changes in regulations and many other topics that impact your business. If you have specific questions concerning food code changes please let us know.

Page 8: KRHA News & Insights - 3rd Quarter

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Improve your receiving system.After you’ve made sure that you’ve ordered the correct amount of the right items, your next chance to maximize your profit is to do a good job of receiving them. The goal of receiving is to check that you are getting the correct amounts of the items you’ve ordered at the price you agreed to.

It sounds simple, and it is. Unfortunately, it’s so simple that it’s often taken for granted, and shouldn’t be. What’s the use of going through all the trouble to do a great job of purchasing, only to have it wasted by what is probably just honest, inevitable mistakes that will cost you money as well as customer (and employee) satisfaction? First, realize that you should never take for granted, no matter how busy your staff is, that your vendors are delivering what you ordered. Have a convenient system in place to check in every order. It should include a well-lit space, convenient access to your order forms, a person who can count and is qualified to discern good products from bad (produce, seafood, meats...) and a functioning scale to weigh the incoming product. Make sure they use the scale. Also be sure that they are checking the delivery against your order form, not the driver’s invoice. It does you no good if their invoice indicates 5 pounds of asparagus, they’re delivering 5 pounds of asparagus, but you ordered 50 pounds. Trouble-free returns and refunds for subpar or incorrect deliveries and fast deliveries of shorted items are two of the most important things to look for in a vendor.

Improve your storage habits.Now that you are sure that you have received exactly what you ordered, and at the correct price, it must be stored in such a way that you’ll get the maximum shelf life out of it, and that it will be apparent to those concerned that it is, in fact, part of your inventory.

Train your staff so that it is second nature for them to rotate the stock when putting it in its place. Although it’s definitely more important to do so with fresh salmon than cans of tomatoes, have them do it for everything. Each item should always be put in the same place as much as possible. Seafood should be iced, produce organized, dry goods arranged as if in a grocery store. Ensure that everything is stored in such a way to keep it fresh, accessible, and easy to see and reach. Dry storage areas should be well-ventilated, vermin free and, as much as possible, have enough space and lighting to make it easy to access and inventory their contents. Refrigerators and freezers should be checked and maintained to have the correct temperatures. All storage areas should be regularly cleaned and organized. Any product that spoils before it is used is a waste of money due to nothing but lack of attention and forethought.

It’s important to realize that every bit of food you spend money on that ends up being enjoyed by your guests in the

dining room due to care in purchasing, receiving and storage is as important to your bottom line as any of the other more obvious or glamorous parts of cost control (“glamorous” being very relative in this case).

Improve the interrelation of various menu items.It couldn’t be more clear or easy to see how important it is to have a menu mix that gives your guests a variety of options that will keep them coming back for more. Less apparent to your success is a menu that contains items that play off one another well in your kitchen in terms of 100 percent use of product.

This is not something your guests should be aware of, but it’s something your chef should pay a lot of attention to. If you are writing a new menu, you can think of each dish as an opportunity to make the most of each ingredient in every way possible. If you are serving broiled duck breast as an entree, think about buying whole ducks and using the legs and thighs for confit and the carcasses to make stock for the sauce. If you’ve decided it makes sense for you to purchase whole fish instead of fillets in some cases, use the bones and heads for stock. Not only will you not waste a perfectly good product, your sauces will taste a lot better than the restaurant down the street that uses fish base.

If you cure your own salmon, the scraps can be used to make a spread to put on toast points for garnishing a salad. Trimmings from steaks can be saved up to add to a great chile con came, or maybe a soup garnish. Processing vegetables almost always results in scraps that can be used in something. Whether you make a coulis from the tops and bottoms of red bell peppers left from julienne used in one of your appetizers, or just put onion scraps in the stockpot, it’s a lot better than throwing them in the garbage. Making sure that scraps from one station end up in the hands of another cook who can turn them into food on plates in the dining room takes a little thought, coordination and cooperation. It’s worth the effort.

Know your cost for each item on your menu.Not all of the items on your menu are created equal in profitability. Unless you know exactly what you’re paying for each dish, you won’t really know your money-makers, which items you should have your waiters suggest more often, the items on which you should raise prices, or which items you might consider dropping altogether. A good first step in figuring out your real costs is to update your inventory list with accurate, current prices.

Then take the time to see how much, exactly, of each item goes on each plate. Although you want to be very accurate, it is possible to go overboard. While you definitely want to be sure about your cost for the most expensive items on a plate (typically the protein and maybe some expensive cheese,

Continued from 1...

Page 9: KRHA News & Insights - 3rd Quarter

Your Voice for the Hospitality Industry.

9

vegetables or fruit), it might be counterproductive to figure out just how much a sprig of parsley or a pinch of kosher salt is setting you back. Be sure to use the “edible portion” costs rather than the “as purchased” costs when relevant. By edible portion (EP) cost, I mean the cost of the product that actually ends up on the plate, as opposed to the as purchased (AP) price, which is what you paid for the item before you processed it.

An example would be beef PSMOs (peeled, silver skin, side muscle on). Weigh the tenderloins before removing the chain and silverskin, and figure out what you paid for them (the AP cost). Then weigh the tenderloins after butchering. Your actual cost for whatever those butchered tenderloins weigh (the EP cost) is the amount you paid for the untrimmed tenderloins.

Any effort you put into figuring out the cost of each plate on your menu is for naught if you don’t keep an eye on portion control. Have plenty of the correct serving tools handy, whether they are ladles, spoons or ounce scales, and make sure they are being used. For some items, it makes sense to do the portioning during prep, so that the line cooks don’t have to worry about it at service.

Know when to raise prices, and then do it.So far we’ve talked about increasing our profit by keeping our expenditures in check, operating under the tenet, “a penny saved is a penny earned.” More often than not, this is a good way to go. After all, no customer will hold it against us if we become more efficient in our operations, especially if the results they see are fresher, more consistent food. Sometimes, in spite of running as tight a ship as possible, prices must rise. For instance, if after ascertaining that one of your most popular dishes costs you $12.50, and its price on the menu is $9.95, something has to give.

No matter how many you sell, you won’t make up the difference in volume. When raising prices, probably the worst tactic is an across-the-board increase. A better approach is the more surgical attack of raising prices on select items that your customers will be able to relate to (“well, the price of shrimp in the supermarket is up, too”). This way it’s clearer that you are, regrettably, passing on some hard costs and merely sharing the pain. This is preferable to being perceived as greedy, or as trying to make up for bad business decisions.

Realize that when you raise your prices, you’re opening yourself up to a little more scrutiny from your guests. Use this as an opportunity to reassess and manicure every aspect of your operation, so that both your guests and your business will get the most out of the price increase.

Offer regular, profitable specials, then help your waiters sell them.Making specials a regular part of your offerings is a good idea for a lot of reasons. They keep things interesting for your

kitchen staff, waiters and customers; are a great way to use product that might otherwise go to waste; improve relations between the front and back of the house; and, perhaps most importantly, give your waiters a foot in the door to start conversations and establish rapport with customers.

Depending on your kitchen crew, you might open up the creation of specials to staff other than your chef. Any opportunity to help your people feel pride in their work should be taken. Whoever comes up with the dish can talk about it to the waiters as they sample it, hopefully stirring their interest and enthusiasm. This is also a perfect way to help your front-of-the-house staff and back-of-the-house staff realize that they are all on the same team, working to make your customers happy enough to come back, often.

Ideas for specials can come from many sources. One is when your chef needs to figure out what to do with food that didn’t sell well in its original guise. If too many roasted chickens were made on Tuesday, how about running a chicken potpie special on Wednesday? The seasons will always be a source of inspiration. The first chilly day of the year would be a great time to make a pot of beef barley soup, especially if there were a few pounds of beef trimmings in the walk-in. United States regional cuisine is a rich mine of ideas, as are various ethnic foods. Your kitchen staff, especially when they get into the swing of it, is bound to be a source of new ideas.

Take the time and effort to cost the specials out, so you’ll know how to price them. And don’t underestimate the importance of making sure your waiters are familiar with the new dishes and how good they are. Nothing sells itself.

Pair wines and beers with your menu items. One of the best ways to increase check averages in the most profitable of ways is to train your wait staff to be well-versed in which wines and beers go best with the food they serve. Take the time to come up with at least one beverage, whether it is a wine by the glass or a pint of beer that your guests are likely to enjoy with each of your dishes.

Schedule regular food and wine/beer tastings with your staff, led by someone who can explain, and then show them just how nicely a certain wine or beer will go with a certain dish. The sooner you can get your waiters excited about this aspect of the business, the better. Asking your guests, “Do you want anything to drink besides water?” is wrong in so many ways.

Give your waiters the tools and encouragement they need to demonstrate their enthusiasm, knowledge and appreciation for what’s on your menu and what’s available to drink with it, and everyone wins. Depending on your operation, you might consider expanding this concept further, to bottles of wine at several price points. The effort and training you put into a well-conceived beverage program will be repaid many times over in customer and staff satisfaction, as well as profit.

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Have a separate dessert/after-dinnerdrink menu.If you’ve gone through the trouble to put together a great assortment of desserts and after-dinner drinks, go just a little bit further and make it easy for your guests to order them. A lot of your customers are on tighter budgets, and more restrictive diets, too. Not that you want to be a bad influence, but a little treat never hurt anyone, and a night out in your restaurant should be a reason to celebrate. (If it’s not, that’s something else you should be thinking about.)

Hopefully, by the time your guests have finished their entrées, they have developed enough trust in their waiter that they would at least consider taking their recommendation about a dessert or drink that they think is absolutely worth the calories and expense. A well-conceived, attractive dessert/after dinner drink menu might be all that’s needed to convince them to stick around for one more course. Depending on your operation, it might make sense to have a separate bar menu as well.

Speaking of menus, take a close look at yours. Are they immaculate? Do they accurately convey the message you want to communicate about your establishment? Do they highlight your most popular and profitable items? Does your pricing make sense from one item to the next? Is the font size big enough for your typical client to read in your restaurant’s existing light? If the answer to any of these questions is not an emphatic “Yes,” seriously consider revamping them.

Make sure everything is rung up, especially drinks.Doing any of the things mentioned in this story is guaranteed to increase your profitability. Most of them are a process, and if you start the process today, the benefits will start today, too, but they might not be noticed for a little while. This last item is the easiest and simplest, but if you are only going to do one of them, this is the one to pick.

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Calendar of EventsVisit krha.org and click on the Calendar/Events tab for a full listing of our annual events.

August 19Annual PAC Classic Golf TournamentSand Creek Station, Newton, KS

October 7KRHA Insurance Board of Directors10am-1pmMarriot, WichitaJoint Lunch 1pm-2pm KRHA Association Board of Directors2pm-5pmMarriott, WichitaKRHA Evening of Hospitality6pm-9pmHyatt, Wichita

November 7KRHA Executive CommitteeInsurance Board Meeting (Conference Call)KRHA Office

December 5KRHA Insurance Board of Directors11am-2pmLunch 12pm-1pmKRHA Office

December 12KRHA Association Board of Directors KRHAEF Board of DirectorsLunch 12pm-1pm1pm-3pmDoubleTree by Hilton, Wichita

Contributing

Thank you to our Annual Corporate Sponsors!Would you like to sponsor us? Contact Adam Mills at [email protected] to learn about the many benefits that come with being a corporate sponsor!

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Scan the code or text

DonateKRHA to 316.281.7893

Page 12: KRHA News & Insights - 3rd Quarter

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2013Jan. 1: Employer mandate. Employers with 50 or more full-time-equivalent employees must offer “minimum essential coverage” to full-time employees (those who average at least 30 hours of service a week in a given month), or face potential penalties.

Jan. 1: Individual mandate. Most individuals are required to obtain health insurance coverage — through their employers, state exchanges, Medicaid/Medicare or elsewhere — or face an annual individual mandate tax penalty. Penalty for 2014 is $95 for an individual or 1 percent of income, whichever is higher. Tax penalty climbs to $695, or 2.5 percent of income, by 2016. The penalty is indexed after that year.

Jan. 1: Exchanges officially open. Exchanges must be up and running in all states to let individuals and small employers enroll in the private health care plans sold through exchanges.

Jan. 1: 90-day maximum waiting period. Rule on maximum 90-day waiting period takes effect for all group health plans. Automatic enrollment. Employers with more than 200 full-time employees must automatically enroll full-time employees into one of the plans the employer offers after the applicable waiting period. The Department of Labor says it isn’t ready, so employers won’t be required to comply until regulations are issued. DOL says this will not be in effect before 2014.

Jan. 1: Reinsurance fee starts. Estimated fee for health insurers and plan sponsors in 2014: $63 per person in a group health plan.

Jan. 1: New Medicare payroll / investment income taxes. New 3.8 percent tax on investment income and extra 0.9 percent tax on wages above a certain level hit taxpayers at income levels above $200,000 (single filers)/$250,000 (married, filing jointly).

March-May: Insurers apply for approval of plans. Insurers begin filing applications to get government approval for “qualified health plans” that can be sold to individuals and small businesses through public exchanges starting Oct.1.

April: Application form finalized. HHS says it expects to finalize the application forms that individuals and small businesses can use to apply for health care coverage through exchanges.

July: Plans approved for sale on exchanges. HHS plans to begin announcing which qualified health plans have been approved for sale through exchanges.

Late Summer/Fall: Employee-notification mandate. Employers must provide notice to new and existing employees about exchanges. Notice rule was to take effect March 1 but Department of Labor delayed it because critical information was still missing. DOL says it plans to provide model notices.

Oct. 1: Exchanges begin open enrollment. Individuals and small businesses can begin enrolling in health care coverage through exchanges for 2014.

2014

Health Care Reform Key Dates & Deadlinesby the National Restaurant Association

Hole & Tent Sponsorships available, reserve yours NOW!

Planning on participating in the tournament? Scan the code to complete

the NRA authorization form or text authorizekrha to 316.281.7893. Please note, all participants must fill out the

authorization form in order to compete.

pac whack classic

August 19, 2013Sand Creek Station

Newton,KS

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Restaurants Face Unique Changes when “Going Green”by the National Restaurant Association

From eco-friendly paper towels to composting, individuals are progressively minimizing their impact on the environment by implementing a variety of initiatives throughout their homes and businesses. For restaurant operators, making these environmentally-friendly changes can seem daunting, but has the potential to improve their bottom line, strengthen their relationship with their staff (especially Millennials), and demonstrate to their customers and community their business’ commitment to improving the environment. The foodservice industry is the second largest private sector industry in the United States and due to its substantial size, has the potential to make a major impact on the environment by taking a few simple and sustainable steps. Many restaurateurs simply do not know where to start, but there are plenty of easy-to-implement solutions available to restaurants that want to pursue a more sustainable future.

When it comes to transforming your establishment into an energy-efficient operation, think big but start small. Turn off the lights when leaving a room. Power down computers at night and shut down kitchen appliances immediately after you are finished with them. These practices require absolutely no monetary investment on your behalf, but will help reduce your operation’s energy usage and energy bill.

Scraping dishes, scrubbing cookware, and soaking pots and pans are all easy ways to optimize your establishment’s dishwashing procedure, while making a considerable impact upon your water bill. Your restaurant can also become more sustainable by implementing other water conservation initiatives, such as fixing leaky fixtures.

Donating surplus food is also a great way to cut down on waste management expenses and bolster community relations efforts. Build lasting relationships with the members of your community by contacting a local food bank, hunger-relief agency or organization such as the Food Donation Connection – www.foodtodonate.com, and finding out how your restaurant can help those in need. The more food your establishment donates, the less waste your establishment ultimately produces.

The money saved investing in more advanced sustainability initiatives will not only pay for itself, but it will also likely make your establishment money in the long run. Your operation can advance its efforts by investing in energy-efficient appliances or even remodeling to becoming a more sustainable operation from the ground up. If your operation does wish to pursue more advanced sustainability efforts, assistance is often available through state programs and, in some locations, utilities. These initiatives could provide useful information, energy audits, or even funding to businesses that take active steps to pursue a more sustainable future.

Also available to foodservice operations is the National Restaurant Association’s Conserve Sustainability Education ProgramSM. This educational program is an online resource designed by the restaurant industry for the restaurant industry. It helps restaurants to reduce energy, waste, and water—driving down costs and leaving a lighter footprint on our environment.

Participating restaurants gain access to Conserve’s easy-to-use checklist, which features more than 90 industry-tried best practices and 64 educational how-to videos, as well as money-saving techniques and a variety of other resources.

To find out more about how a Conserve can benefit your foodservice operation, visit conserve.restaurant.org.

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Welcome New Members!Mcdonald’s2150 Kansas TpKEEmporia620.343.8444

mcdonald’s2810 W 18th AveEmporia620.342.9444

Mcdonald’s1420 Lincoln StConcordia785.243.1426

mcdonald’s1123 E Hwy 54Kingman620.532.1255

mcdonald’s1805 W 1st StPratt670.672.1915

Country Club of Leawood12700 Overbrook RdLeawood913.648.1600brookridgegf.com

Traqueros fresh mexican grill11831 Metcalf AveOverland park785.537.8822

National hospitality supply10660 n executive ctmiquon800.526.8224nathosp.com

Ciao italian kitchen1720 n webb rd, ste 144wichita316.613.2426ciaoitaliankitchen.com

WOTC Solutions, kkc13030w 87th st pkwylenexa888.313.5696

Shibleyville, llcDBA Doo-Dah Diner206 e kelloggwichita316.265.7011doodahdiner.com

Cedarville, llcDBA Mooyah352 S West Street ste 100316.558.5600

Wyldewood cellars951 e 119th stpeck316.554.9463wyldewoodcellars.com

remus enterprises318 w 4th stbeloit785.738.8592

Shree Madhava Management, INcDBA Comfort suites3000 n 103rf terrkansas city913.299.4466

Ad Astra Restaurant Group, llcdba ad astra food & Drink318 cottonwood ststrong city620.273.8440

sunflower slabs llcDBA Boss Hawg’s BBQ2833 sw 29th sttopeka785.273.7300bosshawgs.com

Benchmark construction110 west 29th streeteudora785.542.1400benchmark constructionks.com

Tres maria’s, llcdba tapas724 massachusetts stlawrence785.766.5618

boulevard brewing company2501 southwestkansas city816.474.7095boulevard.com

sunset acres llcDBA Sandstone3386 s hedvillesalina785.452.0788

commenco, inc wireless4901 bristolkansas city816.922.0304commenco.com

Ripple Ventures, llcdba the river house500 e 5th stblue rapids928.525.4639

Brian David Web Design1304 e winesap sthaysville316.518.4870briandavidwebdesign.com

Platinum SponsorsHeartland Payment Systems

Gold SponsorsHospitality Insurance Services Darling InternationalSunset EquitiesSubway

Silver SponsorsIntrust BankKRHASIFPaneraSecura Insurance

Tent SponsorsBenchmark ConstructionDarling InternationalHeartland Payment SystemsHospitality Insurance Services

Hole SponsorsAvivo Brick Oven PizzeriaDr. Pepper Snapple GroupGambinosGKCRAHog Wild Pit BBQMcDonald’sRemote VideoTopeka Lodging AssociationWichita PressTournament Providers

Dr. Pepper Snapple GroupPepsi Bottling Co.SubwaySyscoThe LDF Companies

Gift & Prize DonorsAlternative Risk Comapny Best Western Butterfield Inn Best Western NorthDr. Pepper Snapple Group Freddy’s Frozen Custard and Steakburgers Jazz, A Louisiana Kitchen KC HoppsKRHAEF M&M Sharpening Services Perkins Restaurant & Bakery

Thank you to those that supported our Annual PAC Whack Open Golf

Tournament! We cannot thank you enough for helping to make this event possible and hope you had a good time while helping us out. We hope we can count on your help to make this year’s PAC Whack Classic

even better! Please mark your calendars on August 19, 2013, for this year’s PAC

Whack Classic Tournament!

THANK YOU!

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boulevard brewing company2501 southwestkansas city816.474.7095boulevard.com

sunset acres llcDBA Sandstone3386 s hedvillesalina785.452.0788

commenco, inc wireless4901 bristolkansas city816.922.0304commenco.com

Ripple Ventures, llcdba the river house500 e 5th stblue rapids928.525.4639

Brian David Web Design1304 e winesap sthaysville316.518.4870briandavidwebdesign.com

Fishbowl is proud to partner with the Kansas Restaurant & Hospitality Association to bring you an exclusive Email Marketing offer. KRHA members can sign up today for a Fishbowl Local account and send 500 FREE email messages a month to their guests, no strings attached. Get started at www.fishbowl.com/kansas Fishbowl’s Local Marketing Suite provides restaurants all of the tools needed to manage a successful online guest marketing program. Fishbowl Local includes: Email Marketing: 500+ restaurant templates, Automated Loyalty messages, including birthday club, in store and online guest sign up toolsSocial Media Marketing: Manage multiple Facebook & Twitter accounts, Schedule posts and emails to publish across multiple accounts for now or future, track engagement and audience growthReputation Management: track reviews from hundreds of sites, receive email alerts when new reviews are posted, compare your reputation to your competitors.

Fishbowl Local- Online Marketing Made Easy for KRHA Members

Each year, the National Restaurant Association recognizes outstanding restaurants around the country with its Restaurant Neighbor Award. This prestigious national award honors restaurants that go above and beyond in community service and aims to inspire other restaurateurs to get or stay involved in their local communities.

We’re pleased to announce that Wendy’s/The LDF Companies, Panera Bread, Warren Theatres and Papa Johns were the four Kansas Restaurant Neighbor Award winners. Congratulations on being selected as a state winner for this prestigious award. All state winners receive a commemorative plaque to display in their restaurant and will be profiled on the National Restaurant Association’s website highlighting their community activities.

Kansas Restaurant Neighbor Award Winners

The National Restaurant Association last week reiterated its support for immigration reform that addresses restaurant-industry priorities as restaurateurs and state restaurant associations across the country called for reform. Restaurant stakeholders are pointing to new polling results, which show broad bipartisan support for the Senate “Gang of Eight” proposal. Polls conducted in 29 states by a coalition of Republican and Democratic groups show support for the bill cutting across party lines in all states.

“America’s restaurants support common-sense immigration reform that meets three key priorities: a clear path to legalization, national implementation of the E-Verify employee verification system and increased border security that won’t harm legal travel and tourism,” said Scott DeFife, executive vice president, Policy and Government Affairs, NRA.

The NRA has launched an advocacy, communications and grassroots campaign to support comprehensive immigration reform that addresses restaurant-industry priorities. A new online site incorporating its existing America Works Here messaging efforts has been developed — AmericaWorksHere.org.

“Restaurants are where individuals of all backgrounds have the opportunity to rise from entry level work to management and ownership, and create their personal version of the American Dream,” DeFife added.

The NRA has been heavily involved in the construction and review of S. 744, the comprehensive immigration bill drafted by the Gang of Eight. Full debate on the bill began in the Senate this week. Also last week, the NRA unveiled a new ad in its America Works Here series. The ad notes that restaurants employ more minority managers than any other industry and provide “one of the best paths to achieving the American Dream.”

NRA launches grassroots campaign calling for immigration reformby qsrweb.com

Page 16: KRHA News & Insights - 3rd Quarter

We’re working hard to launch our new dining app, but we need a little more information from

you first in order to make it a great success!

Please email us at [email protected] with the name of your restaurant in the subject line and the following information in the body of the email:1. Type of cuisine you serve2. Ammenties you offer3. Price point4. Area of town in which you’re located5. Your website URL6. Menu URLIf available, please attach your logo and a photo of your restaurant to the email.

could help prevent walk-aways and result in more orders.

Facebook ordering. This may be the biggest technology leap coming in the next year, as nearly 100 percent of restaurant owners say they plan to have a Facebook presence by next year. Companies specializing in Facebook-payment integration for restaurants such as ChowNow and NetWaiter are helping chains to get their ordering onto the popular platform. This is a fairly low-cost add-on to make, and it has the potential to grow sales, which always gets a restaurauteur’s attention. For instance, the Taco Spot in Charleston, SC saw a 10 percent sales bump after implementing Facebook-based ordering, trade magazine Fast Casual recently reported.

Tabletop e-waiter & checkout. Diners hate it when waiters take their credit card away and run it up at the register — it’s a common point for credit-card fraud. Hand them a restaurant iPad they can self-checkout on where their card doesn’t leave their sight, and they’re happy. That often-endless wait for the card and bill to return doesn’t win fans, either. E la Carte’s Presto tablet is one solution that offers tableside self-checkout and more — it even suggests additional items to order, and the company reports it cuts 7 minutes off the average diner’s stay. Customers are happy with the faster service, and restaurants can serve more diners per night. Airport-restaurant chain HMSHost is among the operators using Presto. Digital menu boards + smartphones. Watch for fast-food restaurants to change menus more often, because digital menu boards make it so much easier than manually changing prices and items. Digital signage also allows quick-serve restaurants to provide entertainment and interactivity while you wait in line — for example, Boston-based burrito chain Boloco’s digital signboard allows patrons to play tic-tac-toe against friends or the computer while they wait.

Games while-u-wait. Gaming industry sources report McDonald’s is projecting gesture-enabled games onto restaurant floors for kids to play while they wait for Happy Meals, in 150 of the chain’s higher-profile locations. Now that’ll keep kids busy — and we all know happy kids mean happy parents who come back to your restaurant.Online coupons. More restaurants are using digital coupons, and diners gobble them up — in the Technomic survey, 58 percent of diners said they’ve already used them.

Tech-savvy diners expect elegant solutions that work, as McDonald’s clunky test of bolted-to-the-table iPads showed. But for restaurants that can get it right, integrating technology that makes customers happy and turns tables faster will be a no-brainer.

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