Enough Already! 3 Things About Restaurant Profits You Need to Hear

Enough Already! 3 Things About Restaurant Profits You Need to Hear

How are the profits in your restaurant? Great? Amazing? Is it your best year ever or are your profits on life support? Wherever you are now, it can be said that you want more. It’s human nature to want to climb to the top. 

The restaurant business can be very brutal on people at times especially when it comes to the area of making money. How do you beat the odds and maximize your profit potential? Here are 3 things that are getting in the way of you and your profits:

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The Cheesecake Factory’s New Fast Casual Concept Won’t Serve Cheesecake

The Cheesecake Factory’s New Fast Casual Concept Won’t Serve Cheesecake

The Cheesecake Factory is working on a menu for their new fast casual restaurant, Social Monk Asian Kitchen, which will have items like noodles, curries, sandwiches, salads, and rice bowls, according to Eater. Cheesecake is not on the listing.

Founder and CEO for the brands, David Overton, told Eater, "We were really interested in creating a new concept, and thought Asian food would lend itself very well to a fast-casual setting."

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Chef Eileen Andrade Aims to Make a Destination Out of Miami Suburb, Kendall

Chef Eileen Andrade Aims to Make a Destination Out of Miami Suburb, Kendall

"If I could describe my style of cooking, I would definitely say— bold," says Chef Eileen Andrade.

And “bold” is right as her restaurants serve up a combination of Cuban, Peruvian and Korean dishes.

There is no stopping this fierce Miami-based chef from accomplishing her goals.

In her mid-twenties, Eileen Andrade, opened her first restaurant, Finka Table & Tap in Kendall, an unassuming suburban Miami neighborhood. Now, the 29-year-old sits down with Foodable to talk about her newest restaurant concept, Amelia’s 1931, which she opened less than a mile away from her first concept.

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How Supermarket Foodservice Can Compete with Restaurants

How Supermarket Foodservice Can Compete with Restaurants
  • If supermarkets follow these tips they can position their business to better compete with restaurants in the fast casual segment.

  • Grocery retailers can have the real upper hand with time-saving shoppers if they amped their foodservice capabilities.

Grocery stores are uniquely positioned to compete with restaurants when it comes to serving up fresh meals.

Sure. Consumers have more choices today than they did a decade ago with the rise of restaurant openings (especially in the fast-casual segment), but supermarkets can be a one-stop-shop for time-saving shoppers.

It’s true… more and more restaurants are offering healthier options, but if grocery stores can perfect their foodservice game, they will have the real upper hand.

As Supermarket News reports, there are nine things these businesses can do to streamline their operations. Here are four that stood out to us:

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Will Startup Hungry Planet™ Gain Momentum After Recent Success in a California School District?

Will Startup Hungry Planet™ Gain Momentum After Recent Success in a California School District?

A California school district began to offer plant-based meals across all their cafeterias this past academic year and had students choose whether or not they wanted to eat them based on taste. “The initiative was so successful, the meals will likely be offered again next year,” reports KEYT.

We’ve heard about companies like Impossible Food and Beyond Meat making their way in restaurants, but the Santa Barbara Unified School District actually sourced her plant-based protein from a startup based out of Missouri. It’s called Hungry Planet™.

According to the company’s website, it focuses on creating an alternative protein to ground beef, chicken, pork, Italian sausage, chorizo sausage, and crab for culinary professionals to use as a 1:1 substitution in innovative entrees. The company says it develops its faux meats to delight the demanding tastes of meat lovers in the heart of the Midwest.

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Don’t Miss These 2018 Hospitality Marketing Digital Trends

Don’t Miss These 2018 Hospitality Marketing Digital Trends

As popular as online platforms are these days, it is important to not discount content made with desktop computers in mind, especially when it comes to marketing for your hospitality business.

At least that was one of the takeaways from the infographic by MDG Advertising on “Hospitality Marketing in 2018: 5 Digital Trends to Watch.”

The agency is predicting many changes in the space for 2018. The main reason why is because it is constantly affected by evolving technologies and consumer trends— including a growing Gen Z population.

Although the infographic takes a deep dive analysis of how these changes will affect the travel industry, these demographic and tendency changes affect all brands in the hospitality space, including restaurants.

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Trump's New Tip Pooling Rule Means Harsh Fines for Rule-Breakers

Trump's New Tip Pooling Rule Means Harsh Fines for Rule-Breakers

First, the back story:  The Fair Labor Standards Act (FLSA) sets the rules for paying minimum wage and overtime.  It allows employers to take a tip credit against its minimum wage obligations if certain conditions are met.  One of those conditions is that tipped employees must be allowed to retain all of their tips. There is one exception to this – that employers can require employees to participate in a valid tip pooling arrangement.  

There are various requirements for a tip pool to be valid but most importantly, the tips can only be shared with people who customarily and regularly receive tips. Typically, these jobs are in the front of the house.

The FLSA is silent as to whether these same restrictions apply to employers who don’t take a tip credit and instead just pay a full minimum wage.  In 2010, the Ninth Circuit ruled that they don’t apply if you don’t take the tip credit. In 2011, the DOL issued regulations saying that they apply whether you take the tip credit or not.

The Tip Pooling Loophole

In 2017, the Trump Administration proposed a rule that would clarify this issue.  

The rule sought to allow employers who pay a full minimum wage to include back of house workers in a tip pool.  But the rule as proposed left open a potential loophole – that in giving employers control over the tips (under the expectation that they would use them to pay back of house workers) that the rule would have also allowed employers to pocket the tips if they wanted to.  

This prompted an enormous uproar and ultimately the administration scaled back; the law would be revised to make clear that employers cannot under any circumstances keep any portion of their employees’ tips.

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Millennials and Gen Z Are Visiting Casual Dining Restaurants Less, But Can These Chains Win Them Back? 

Millennials and Gen Z Are Visiting Casual Dining Restaurants Less, But Can These Chains Win Them Back? 

As some casual dining chains are failing to connect with the younger generations, a demographic looking for healthier and more convenient options– we are seeing more big chains close stores.

IHOP is closing 30 to 40 stores and Applebee’s is closing between 60 to 80 stores just this year.

Other chains are making major investments to revamp their image, food product and operations to win back these younger generations.

How so?

“Day in and day out, legacy brands cook up new plans to court younger guests. Olive Garden recently launched an Insta-worthy Meatball Pizza Bowl, followed by Red Lobster’s lobster and waffle combo; TGI Fridays became the first national chain to put the meatless Beyond Meat burger on its menu; and IHOP and others are perfecting mobile apps, optimizing for delivery and takeout,” writes “Adweek.”

Although IHOP is closing stores, the restaurant brand has aggressive plans to adapt to the needs of today’s consumer. IHOP is leveraging technology, but did not rush into on-demand delivery for good reason. 

“We wanted to make sure we could deliver the food in a way we knew our guests would want it. We spent a lot of time working on our packaging,” said Brad Haley, IHOP’s marketing chief to “Adweek.” “That was one of those offline things we needed to do to make sure the technology would work as well as it possibly could.” 

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Scratch Cooking Revives Traditional Views of Casual Dining

Scratch Cooking Revives Traditional Views of Casual Dining

On this episode of The Barron Report, brought to you by Kabbage, the Tupelo Honey team joins Paul Barron in a discussion of what makes brands successful in today's market.

Tupelo Honey was founded in Asheville in 2001 as a revival of Southern food and traditions rooted in the Carolina Mountains. With 15 total locations in 7 states, Tupelo's Southern spirit is infused into every bite of their flavor driven dishes.

CEO Steve Frabitore bought the restaurant in 2008 and it's been growing ever since.

On this episode, VP of Operations and Beverage Director Tyler Alford; and VP of Culinary and Corporate Executive Chef Eric Gabrynowicz take us through the nitty gritty of what has made Tupelo one of Foodable's Top Emerging Brands. 

Tupelo takes great pride in their sourcing. They believe that as a small conglomerate of restaurants, their ability to affect change is far greater than that of smaller, independents. Switching to an organic, locally-grown chicken in their restaurants accounts not for hundreds of dollars in change but hundreds of thousands of dollars.  

And their commitment to top quality culinary doesn't stop there. The beverage program at Tupelo Honey also speaks to the brand's commitment to improving the quality of casual dining chains. With kitchens that cook almost entirely from scratch, Chef Gabrynowics says transforming the beverage program to be more culinary-driven was not a far stretch to make. 

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Why Are Gender Wage Gaps Still a Reality?

Why Are Gender Wage Gaps Still a Reality?

In most recent years, women all over the world have protested against wage inequality.

According to the OECD, the United States sits at the fifth place as the nation with one of the widest pay gaps (18.1%), as reported by "Forbes."

In a revelating report, Gecko Hospitality shed light on the undeniable pay gap that still exists in America’s hospitality industry, specifically.

The 2017 Hospitality Management and Restaurant Salary Survey Report was released last week and it detailed the salary for hospitality workers in 10 different categories. Out of those 10, only one demonstrated that women earned a higher salary than their male counterparts.

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