TROUBLED WATERS

TROUBLED WATERS

The importance of water as a natural resource can’t be understated. Wars and lesser skirmishes have been fought over water, and it’s been at the heart of numerous public utility projects and significant legislation at all levels of government.

In addition to being the world’s most popular beverage, clean water is crucial to restaurants, whether it’s used in the front or back of the house or even outside the facility.

The importance of H2O became particularly clear this year due to several major developments in different parts of the United States. As the ongoing drought in the West and Southwest takes its toll, land and crops—which are also impacted by the quality of water—are starving to death, leading to higher food prices and, ultimately, less food. Between the lack of rain and other disasters, such as the chemical spill that shut down the capital of West Virginia in January 2013, restaurants and municipalities are looking to conserve, filter, and even reuse water.

“All utilities are very important for us, but none is as essential as good water,” says Christian Fischer, executive chef and vice president of culinary innovations for Chartwells Higher Education Dining Services, based in Rye, New York. He says water is equitable to treasure at many of the 260 academic institutions for which the company manages foodservice operations. “Some of them refer to water as liquid gold.”

Extreme drought conditions hit central and northern California and western Nevada, and continue to impact many regions already suffering, like northern Texas and Oklahoma.

This has impacted crop production and cattle ranching, pushing food prices higher. The West has been in drought conditions for the past several years, but “the intensity is particularly great this year in California and the Southwest into Texas and Oklahoma,” says Liz Purchia, spokeswoman for the U.S. Environmental Protection Agency.

Restaurants should consider water conservation all the time, not just when there are crises, says Michael Oshman, founder and chief executive of the Green Restaurant Association, adding that the practice also saves money.

Energy Star dishwashers and ice machines conserve water in the back of the house, as do low-flow, pre-rinse spray valves and automatic on-and-off faucets. In the bathrooms, aerators on faucets, low-water toilets, and no-water urinals can save water.

At Atlanta’s Lure seafood restaurant, owner Fifth Group Restaurants constructed a system that not only harvests rainwater from the eatery’s roof and patio, but also melts water from icemakers and water condensation from air conditioning. The system stores up to 3,000 gallons of filtered water that is used for the bathrooms and to irrigate plants around the building.

“We’ve captured about 100,000 gallons each of the past two years, and haven’t had to use municipal water for flushing toilets or for irrigation,” says Steve Simon, one of Fifth Group’s partners. The main reason for making the expensive investment in the water recapturing system was environmental, but it has saved the restaurant thousands of dollars by not purchasing Atlanta municipal water, which Simon calls one of the most expensive water options in the nation.

When it comes to cooking, water’s properties also influence the taste of the food, and that is why a number of chefs work only with filtered water.

“It isn’t crucial when you’re braising a piece of meat, but it’s very important in baking and in delicate soups and sauces,” says Fischer, Chartwells’ executive chef. “If you have water with a strong chlorine taste, for instance, it will affect the final product. Other chemicals and metals can influence the flavor, too.”

A study in 2013 by The NPD Group found that 37 percent of restaurant customers choose water or no beverage with their meals. And bottled water is the choice of many guests, with 38 percent of restaurants offering it, according to Datassential MenuTrends.

But aqua is often taken for granted by customers, and the cost of water is rising. According to a study by Circle of Blue, a group of scientists and journalists concerned with natural resources, the average price of municipal water is up 6.2 percent in big American cities this year, and has jumped 33 percent since 2010.

Water grows the country’s crops, keeps the farms in the farm-to-table movement solvent, filters America’s beloved soft drinks, is critical for food prep, and cleans restaurants, keeping them functional. How restaurants and society treat water now will impact the world’s most precious resource for generations to come.

(Taken from RSR Ideas and Insights for Full-Service Restaurants  |  March 30, 2015)

An industry health check and 3 surprising business drivers

March 25th, 2015

An industry health check and 3 surprising business drivers

Published in Restaurant Business Daily

By 

Peter Romeo, Director of Digital Content

Attendees of the Restaurant Leadership Conference are presented with no fewer than four detailed reports on the health of the industry and what trends are contributing to or detracting from it. The consensus was that sales are accelerating, albeit moderately, because underlying macro factors like employment and general economic activity are improving. Declining gas prices were hailed as having a particularly positive effect on restaurant prices.

Bad weather temporarily chilled the economy in the first quarter, noted GE Capital’s Todd Jones, but the more persistent problem is income stagnation. About three of every four jobs lost during the Great Recession were middle or high-paying positions. Only 56 percent of the jobs that have been created since then fall in those income brackets, Jones said.

Traffic remains a challenge. Jones noted that customer counts for full-service restaurants are finally increasing, but TKn2K’s Victor Fernandez noted that overall industry traffic is still 11 percent below the pre-2008 level.

The statistics reeled off by the sales and traffic handicappers were leavened by the mention of some unexpected trends that could change the numbers. Among the new currents they noted:

1. DIY restaurant food

In a validation of restaurants’ addition of butcher shops, food markets and other sources of raw groceries, the National Restaurant Association’s Hudson Riehle noted that 48 percent of consumers say they would buy food from a restaurant to cook at home. The interest in what he called DIY food was particularly high (64 percent) among patrons aged 18 to 34.

2. Summertime blues

The optimal weather conditions for the industry’s busiest season are cooler-than-normal temperatures, said Riehle. But the forecast for this summer calls for higher-than-usual temperatures along the coast.

3. Exceptional spiciness is the new normal

For the first time since Technomic started collecting data, a majority (54 percent) of consumers prefer spicy foods. “It will be a really important part of menu innovation for years to come,” said the research company’s Darren Tristano. 

Managing Your Liquor Liability Exposures

According to the National Highway Traffic Safety Administration (NHTSA), in 2012, over 10,000 vehicle-related fatalities involved a drunk driver. Not only were these people liable for their actions, the establishments where they were drinking are also susceptible to punishment for over-serving clientele who then injure a third party.

These types of lawsuits are not cheap, either. Well-known liquor liability cases include the Outback Steakhouse, which was ordered to pay $39 million by an Indiana jury after a patron of the restaurant chain struck the plaintiff with his car, and T.G.I. Friday’s, which was ordered to pay $1 million to the parents of two 16-year-old teenagers who were killed after being involved in an accident with a drunk driver. Witnesses in the case claimed that the patron at T.G.I. Friday’s was drinking for eight hours at the establishment before the accident occurred.

These cases are not isolated incidents—victims and their families file suits against restaurants or bars every day for their role in serving a customer who is then involved in an alcohol-related accident. To help protect your establishment, employees and patrons, establishing a liquor liability prevention policy, training workers and transferring risk are critical to minimizing your liquor liability.

Prevention through Education

The most important defense against being liable for drunken driving accidents is prevention through education. It is imperative that you design a liquor liability training program for staff members who will serve alcoholic beverages to customers. In these training sessions, employees will learn important information such as how to determine if someone has had too much to drink, how to deny a patron service and how to identify valid forms of identification to prevent serving alcohol to minors. Once an employee has completed the training, he or she should sign an agreement form outlining that they comply with and understand the policies set forth by the establishment.

Specifically, training should include the following:

• Signs of Intoxication
• Monitoring Consumption
• Offering Continued Service
• Denying Service
•  Reporting Incidents
• Employee Legal Consequences

As part of your initiative to lessen risks, educate employees on how drunken patrons may affect their lives. Employees must understand how serving to minors who use fake IDs will result in large fines or how dram shop laws are stricter than ever and breaking them may pose serious consequences. Remind employees that they are liable and could a face a number of consequences for not cutting off patrons before they’ve had too much to drink. Types of employee liability include:

• Criminal Liability: Employees can be found criminally liable for serving to minors with a fake ID or serving to a patron who appears intoxicated. The employee can face monetary fines, probation or jail time depending on state laws. In addition, your establishment can lose its liquor license and is susceptible to fines as well as higher insurance premiums.

• Civil Liability: If employees are found guilty of civil liability for a patron’s injury, that employee, the owner and the establishment face large monetary fines. At times, these fines are so large that they cause bankruptcy.

• Dram Shop Laws: These laws allow establishments, owners and employees to be sued by an individual after they’ve been injured by a patron served at the establishment.

Transferring Your Risks

To protect your business, it is wise to obtain a liquor liability policy either as standalone coverage or as part of a restaurant and bar package policy. Contact Naught-Naught Agency at 573-634-2727 for more information about these effective coverage options. We understand carrier requirements and the state’s dram laws to design a policy that suits you best.

Security Protects Against Business Interruption

Restaurants can be easy targets for thieves. Dim lighting, high traffic and a fast-paced environment mean restaurant workers have trouble detecting and preventing theft. Fortunately, there are ways to improve security at your restaurant and avoid potential business interruptions.

Building Exterior Security

Keeping your restaurant safe begins on the outside. Consider the following measures to keep your building secure.

• Lighting – It may seem simple, but lighting can have a big effect on building security, as criminals prefer to target places where their actions can easily be concealed by darkness. Make sure entrance ways, walking paths and parking lots are adequately lit. Motion-detecting lights are also helpful by doors that are not often used.

• Locks – Again, a simple security measure that is also essential. Front doors should always be locked during non-business hours. Any back doors that are used for emptying garbage or employee breaks should remain locked at all times. If a back door is used frequently, install a key card entry system on the door. With this method, lock the door and turn the system off after business hours to further increase security.After locks are installed, they must be checked regularly to ensure they stay in working order. Also, keep an eye on the condition of doors. If they fall into disrepair, their effectiveness as a method of protection will be weakened.

• Landscaping – A well-landscaped property can improve security at your restaurant in several ways. First, a well-maintained property gives the impression that the premise is under the supervision of attentive management, so show your presence by keeping the grounds well groomed. Second, just like poor lighting, an overgrowth of bushes and trees may create blind spots that can be used to conceal criminal activity. When choosing plants to be placed around windows and doors, pick ones that will remain relatively short, and trim them regularly.

• Security cameras or on-site security personnel – Deciding to employ security guards or install security cameras depends on the individual situation. Often,, such measures are not needed on the building’s exterior to provide the reasonable amount of security required of restaurant owners, but they can be beneficial in situations where a specific security concern may need extra attention. If the property is located in a high-crime area, security cameras or on-site personnel may be necessary.

• Steel bars/bulletproof glass – Steel bars and bulletproof glass can be important security additions to your restaurant’s windows, and are helpful if your restaurant has a drive-thru.

Building Interior Security

If a thief gains entry to the restaurant despite the exterior security measures, there are ways to deter the person once he or she is inside.

• Alarm system – Install an alarm system that is monitored by a licensed security company. If there is a break-in, they will be notified and can dispatch the police to the restaurant to investigate. Make sure it is loud when triggered and is located where a thief can easily spot it.
• Safes – Frequently deposit cash into a damage-resistant safe during hours of operation. Keep the safe out of sight and ensure only high-level employees know its location. Never leave the keys or code for the safe lying around. Safes that can only be opened at certain times add extra security.
• Varying banking procedures – Thieves pay close attention to the routines of workers, so it’s important to change up how the restaurant does sensitive tasks such as banking and other cash handling activities. In this case, not having a routine is a positive thing.
• Physical inventories – Either hire an outside company to perform physical inventories regularly or perform them in-house. If thieves see you physically counting merchandise, they are less likely to steal it.
• Data security – Identity theft is a growing trend in restaurants. Thieves can place credit card skimming devices on point-of-sale (POS) terminals and collect a customer’s credit card information when the card is swiped by an employee. Employees that handle customer credit cards should be trained to detect any abnormal devices in and around POS terminals.
• Never opening or closing alone – Make sure there is always more than one person opening or closing the restaurant. Before closing, check bathrooms and other areas where a person could hide to ensure thieves aren’t staying behind after hours.
• CCTV – Install a closed circuit television (CCTV) system that is easily visible for both employees and customers. If thieves know they’re being watched, they are unlikely to steal from the restaurant. Make sure the video equipment is locked safely in a room at all times.

Don’t Take Anything for Granted

It doesn’t matter if your restaurant is big or small—thieves will take advantage if you have lax security measures. In addition to these various security measures, training employees on how to spot potential thieves will go a long way to maintaining a successful restaurant.