JUNE 2015
How SA CHEFS restaurant WHO brands are SHARE rocking AWARD London Who is killing the restaurant industry?
FIND IT ALL AT FOODBIZ
Jackie Cameron: Her new culinary adventure
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NOW IS THE WINTER OF OUR DISCOUNT TENTS
I PUBLISHER AND EDITOR-IN-CHIEF Hilary Ward 082 330 1981
IF WE DIDN’T LAUGH WE WOULD
bing the opportunity presented by
have to cry, and that would make
power outages, not wasting time
my mascara run…
lamenting the reality that our
We are all doing business in
economy is taking a severe knock
troubling 4mes for South Africa.
thanks to the fiasco that is Eskom.
Corrup4on scandals by day, load-
We do not forget however
shedding by night and rising pric-
that one too many challenges can
es at all other 4mes—how long
be the last straw for a struggling
can this go on?
business. When a restaurant fails it
hilary@rbmag.co.za CONTACT PO Box 1346 Cresta 2118 Johannesburg +27 011 782 8636 088 011 782 8636 www.rbmag.co.za
Renowned economist Adam
means the end of someone’s
Smith is said to have said, “There
hopes and dreams, and has severe
is a great deal of ruin in a nation,”
financial consequences. In this is-
by which he meant that countries
sue we introduce a column by
can endure a lot of hardship with-
marketing guru, restaurant con-
out collapsing completely. Our gov-
sultant and funny guy, Mike Said,
ernment seems determined to put
who examines all the factors that
that maxim to the ultimate test.
undermine the success of the res-
@restaurantbusinessmag @resbizmag DESIGN The Urban Art Room www.theurbanartroom.com
And still, the sheer chutzpah and resilience and dynamism of Restaurant Business TM
taurant business. Of course, Shakespeare actu-
the restaurant industry continue to
ally said, “now is the winter of
amaze me. Load-shedding is a
our discontent…” But somewhere
huge challenge for restaurants,
in the world another funny mar-
who face losing business and stock
ke4ng guru used the line to sell
if they don’t have a back-up plan,
discount tents—and goodness
and face extra energy costs if they
knows, we need as many laughs
do. But many restaurants are grab-
as we can get.
magazine is published by Cimarron Media & Marke4ng Co. Reg. 2011/101976/07 Copyright reserved
restaurants 4
restaurants
6
cover story
5
cooking with the wonderbag
6
jackie cameron’s new cooking school
8
how sa brands are conquering London
12 technology and the restaurant business
SANDWICH BARON HAS INTRODUCED its new Ban4ng-
14 are you insured for load-shedding?
ber of customers who are following this low-carb, gluten-
16 mike said what? 18 chefs who share
friendly menu, prepared especially for the increasing num-
free, high-fat lifestyle. “With so many South Africans following this ea4ng plan, we wanted to support them with a choice of appropriately cons4tuted dishes that are also delicious and sa4sfying,” says Sally J’ArleEe-Joy, Sandwich Baron’s franchisor.
ON THE COVER: Jackie Cameron has launched her food and wine training institute
The five new meal choices have been introduced at all 50 Sandwich Baron stores. Now on offer are: a Ban4ng Breakfast Box comprising two boiled eggs, two rashers of bacon, two cocktail pork sausages and two tomato slices at R30; a Ban4ng Lunch Box made up of a roasted quarter chicken served with avocado and sliced boiled eggs at R37; 500ml of leek-and-sweet potato soup at R27; a Ban4ng omeleEe filled with cheese, avocado and bacon, with a side salad dressed with balsamic vinegar and olive oil at R47; and a 250g tub of chicken livers at R22.
Food
MaEers
Catering, says that
the
Wonderbag is a great addi4on to any kitchen. "I have been using a Wonderbag for
BAG IT
the past four years and I really love it from
ALTERNATIVE COOKING TECHNOLOGIES
cook your food for about 30 minutes be-
are always welcome in the South African
fore you put it into your Wonderbag and
context where access to energy is not al-
then forget about it for a few hours.
an energy-saving point of view. You simply
“It is perfect for dishes that require
ways a given, and energy costs are high. With its cosy shape and vibrant
slow cooking, saves a fortune on gas and
shweshewe fabric, the Wonderbag doesn’t
electricity and you can't burn your food in
look much like an oven – but it func4ons
a Wonderbag. It is also mul4-func4onal, I
much like a slow cooker, without needing
have even managed to make a delicious
any energy source.
chocolate malva pudding in it.”
Stews, soups, curries, meats, desserts
Chef Jackie Cameron says: "The Won-
and even festive drinks like mulled wine can
derbag is a wonderful tool to use when
be prepared to perfection without the risk of
you cook with a nostalgic slant. As my
ending up eating dry chicken or burnt soup.
cooking is all about memories I love to use
AKer doing the basic prepara4on for a
this slow-cooking process to produce
meal, and bringing it to the boil, simply
mouthwatering dishes like Wild Boar and
transfer the pot to the Wonderbag, where
Bone Marrow or Guinea Fowl Puree and
the meal can be leK to cook unaEended
Breast. It makes sense for the culinary
without any fire or safety hazards.
world to embrace cooking in this way. By
Chefs
are
also
discovering
the
Wonderbag. Chef Jacqui Rey, who owns
cooking in the Wonderbag you will use significantly less electricity and gas.”
J
JACKIE CAMERON’S SIGNATURE DISH IS
A tough-but-fair taskmaster, Cameron
4reless crea4ve energy and innova4on.
accepted only five students this year. “Of
Although just 30-something, Cameron has
all the applica4ons received they were the
won numerous culinary awards, held an en-
ones that I believed would meet the chal-
viable posi4on as head chef and published
lenges this industry presents,” she explains.
her first cookbook, Jackie Cameron Cooks
Graduates from Jackie Cameron School of
at Home two years ago.
Food & Wine will be interna4onally accred-
For the past 15 years Cameron says
ited – and, she believes, sought aKer. The
has been working towards her ul4mate
school can accommodate a maximum of 15
goal—opening a school for aspiring chefs.
students and the dura4on of the course is
AKer seeking out many valuable experienc-
18 months.
es and worthwhile challenges, she resigned from her posi4on as head chef at the fivestar bou4que hotel HarQord House in the KwaZulu-Natal Midlands in July last year, and set about making that dream a reality. “My focus now is on seeing growth and development in others. I look forward to sending out chefs who have confidence in knowing that they have undergone correct training and have a holis4c understanding of this tough but extremely rewarding industry,” she says.
Elaine Bosh off, Jackie Cameron, Jabu Ngwane and with five aspiring chefs Cara Conway, Kate Cousins, Emily Schmidt, Carla Schulze and Rai-Teree at the new Jackie Cameron School of Food & Wine
THE SCHOOL THAT JACKIE BUILT RENOWNED SOUTH AFRICAN CHEF AND COOKBOOK AUTHOR JACKIE CAMERON HAS OPENED HER NEW CULINARY INSTITUTE, THE JACKIE CAMERON SCHOOL OF FOOD & WINE IN HILTON IN THE KWA-ZULU NATAL
If you can make it there, you can make it anywhere SOUTH AFRICAN RESTAURANTS ARE CONQUERING ONE OF THE TOUGHEST MARKETS IN THE WORLD— TAKING LONDON BY STORM, REPORTS CNN.
L
LONDON IS A COSMOPOLITAN kaleido-
David Maich, UK director of Spur Cor-
scope, with a restaurant scene to match. Its
pora4on, says: “All brands across the world
high streets play like a round-the-world pit-
are tes4ng their models in London. If it
stop of cuisines, and increasingly woven
works here it will work anywhere.”
among them are African restaurants. CNN
One South African food chain that has
correspondent Rosie Tomkins says South
led the charge in the UK is Nando’s. Creat-
African restaurants in par4cular are staking
ed in South Africa in 1987, Nando’s
their claim in the UK food market.
launched its first restaurant in the UK in
Washington Kapapiro is Chairman of the Associa4on for African Owned Enter-
1992. Two decades later has almost 400 branches on UK high streets.
prises. He says, “For me what’s most ex-
Says Maich, “Nando’s is a tremendous
ci4ng is the growth of what we call African
success because they have been flexible
food. People are star4ng to iden4fy with
and adapted the concept; not adopted a
that brand.” With the brand comes the op-
rigid copy-and-paste brand standard.” He is
portunity for chains to expand overseas
hoping to follow in Nando’s footsteps and
and London is seen as the golden 4cket.
become another successful South African
ALL BRANDS ACROSS THE WORLD ARE TESTING THEIR MODELS IN LONDON. IF IT WORKS HERE IT WILL WORK ANYWHERE.
CNN Marketplace Africa covers the macro trends impacting the region and also focuses on the continent's key industries and corporations. Each week the show also interviews a major player from the region's business community in its Face Time segment. Seen here is Ritch Allison, CEO of Domino’s Pizza International.
NANDO’S IS A TREMENDOUS SUCCESS IN LONDON BECAUSE THEY HAVE BEEN FLEXIBLE AND ADAPTED THE CONCEPT. IT’S NOT A RIGOROUS COPY-ANDPASTE BRAND STANDARD THEY ADOPTED. chain plan4ng its flag on UK soil, with Spur.
porters and great ambassadors, but we
“We're now positioning ourselves for the UK
have to think broadly; we have to think of
market which is vibrant, cutting edge and
the UK customer profile and that's who
punchy. To me that this is the way to go.”
we're targe4ng across the board.”
Spur already has six restaurants in the
Another South African company vying
UK, including one in Belfast, and one in
for a posi4on in the UK market is The Meat
Dublin, with interna4onal headquarters in
Co., which also adapted its South African
Amsterdam.
roots to suit the UK market. Johnny Tom-
South African ex-pats in the UK are
azos, CEO of Food Fund Interna4onal (the
welcoming these food chains to London,
company which owns The Meat Co., and
says Maich. “They are great, very loyal sup-
several other brands) says: “Here at The Meat Co. the African link is perhaps more subtle. This is not about tribal art on the walls, this is modern Africa, and the hallmark of the dining experience is the beef. Kapapiro aEributes a uniquely African can-do spirit to the success of South African restaurant chains in the UK: “I think that culture is the founda4on for a lot of growth we've seen in the African business sector.” Spur’s family-friendly formula of ribs, steaks and entertainment for the kids is transla+ng well in the UK market.
DINERS ARE SO BUSY TEXTING, TALKING, TAKING PHOTOS AND TRYING TO CONNECT TO THE WIFI THAT ONE RESTAURATEUR CLAIMS SERVICE HAS SLOWED DOWN BY ALMOST AN HOUR!
I
f (like us) you were born before 1980,
find a 12-year-old to manage it all for you),
we’re really sorry to be the bearers of
it can do amazing things for your business.
bad news – but technology is trans-
forming the restaurant business and there
talk to Pilot SoKware. They have some ex-
is just no way to avoid it. From social me-
cellent mobile and other solu4ons, and are
dia to mobile POS and cashless payment
really good at simplifying the tech talk so
systems, all kinds of applica4ons are trans-
that it all makes sense, as well as offering
forming both the opera4ons and the mar-
training and aKer-sales support.
ke4ng of restaurants. We’ve had to get with the pro-
By Hilary Ward
For restaurant management systems,
Social media marketing is essential – Twitter, Facebook, Instagram, Pinterest and
gramme too. You will no4ce, for example,
online reviews are the spaces your custom-
that Restaurant Business is now longer an
ers are using to talk about you! Customers
old-fashioned print magazine, but pro-
are always on their phones these days—to
duced in a number of digital and online for-
the extent that it is even affecting table ser-
mats. And isn’t it so much easier, beEer
vice! The Daily Mail UK reported recently
and more convenient this way?
that diners are so busy tex4ng, talking,
The good news is that once you get your head around the technology (or
blogging, taking photographs on their smartphones and tablets, and trying to
How technology is transforming the restaurant business, and how to get a piece of the action connect to the Wi-Fi, that they don’t have 4me to actually look at the menu and order, or eat their food when it arrives. One New York restaurateur tracked his restau-
Recently, when staff at a KFC store in Braamfontein were filmed on a smartphone hosing down chicken pieces on a concrete floor, the story quickly went viral on social
rant’s CCTV footage and claimed that this
media, only to be picked up the
has slowed service 4mes down by almost
mainstream media both here and overseas. As they say, ‘The Internet
an hour in a decade! There is no escaping it though. You have to be there as a business and as a brand—to have a presence on social media and online restaurant guides, so you can respond and take advantage of the opportuni4es that abound to get feet through the doors, bums on seats and build goodwill and brand awareness. If it’s all new to you, consider employing a social media manager, or at least taking a social media course. An excellent place to start is UCT’s Get Smarter online
is forever.’ Not engaging in social media is not an option—you can’t stop people posting about your restaurant, from their smartphones, or on their blogs. It used to be that you only had to worry about what an influential food critic was writing about you in the newspaper once a week. Now everyone with a Twitter account is a food critic. The good news is that social media can really work for you too. It’s the
short courses. They have both social media
new word-of-mouth and the trick is to make sure that what people are
courses for small businesses and restaurant
saying about you is mostly good.
management courses!
THE LOAD-SHEDDING INSURANCE RISK HAVING A ROMANTIC CANDLE-LIT DINNER IS NOT AS MUCH FUN AS IT USED TO BE. LOAD-SHEDDING NOW POSES A SIGNIFICANT RISK TO RESTAURANTS, WHO STAND TO LOSE PEAK-HOUR BUSINESS, AS WELL AS STOCK. BUT DON’T ASSUME THAT YOUR INSURANCE WILL COVER THESE RISKS, WARNS BRIAN VERPOORT OF STANDARD BANK
T
THE WORST FEARS OF SOUTH AFRICAN
ble. The onus of risk mi4ga4on therefore
business owners of a repeat of the 2008
lies on the business owner rather than on
blackouts are being realised, with billions
the Insurer.
of rand in poten4al economic growth being
Fully 90% of claims are not likely to
wiped out every month as widespread
be covered in the event of a power cut, as
power outages affect the country.
coverage would generally apply up to a
Load shedding currently tops the list
limited amount where power surges or
of insurance nightmares keeping business
spikes cause damage to equipment, like
owners awake at night. But it may not be a
servers or printers.
nightmare that businesses can insure against. Persistent load shedding is the num-
S4ll, business interrup4on insurance is being taken out on the mistaken belief that they are covered for consequen4al
ber one insurance nightmare for compa-
losses, when in fact this type of insurance
nies and individuals, because most policies
only covers perilous events such as wind,
simply do not cover the consequen4al
snow, fire, or an explosion as the underly-
damages that could arise from a power
ing cause. There has been an increase in re-
cut. A power cut is a foreseeable event
quests for this type of insurance and we
and insurance is designed for events that
are trying to educate clients that it may
are not planned. Load shedding is, unfortu-
not be the solu4on to load shedding prob-
nately, predictable and therefore managea-
lems.
Mike Said is a marketer, public speaker, commi.ed dad and part+me adrenaline junkie. Today, his company MikeSaidWhat? advises clients on branding, strategy, market development, customer service and social media. His ability to impart knowledge in a humorous and down-to-earth manner has made him a soughta2er speaker at corporate func+ons and conferences. Visit www.mikesaidwhat.co.za or email mike@mikesaidwhat.co.za.
Who is killing the restaurant industry?: Part 1 CRIME THRILLERS ARE ALL THE RAVE right
C
ways been a difficult industry and there are
now, and although I am no James PaEerson
a number of factors that unsuspec4ng en-
or Lincoln Child, the slow but painful death
trants are oKen not aware of. For one thing
of the South African Restaurant Industry
it is a factory… You need to turn raw materi-
makes for some preEy interes4ng reading.
al into finished goods in liEle or no 4me at
“Death?” you ask. Am I not being a
all. Secondly it is retail with a twist, your cli-
liEle too drama4c, a liEle too severe…? I
ents then sample the product in front of
think not! Restaurants are closing down
you and not once they have arrived home
weekly and those that are able to survive
and thirdly they are only expected to pay
are doing so against great odds. Of course
for their purchase AFTER they have enjoyed
there are the excep4ons to the rule.
it. Combine these factors with a few others
Like all good crime writers, let me
like cash, alcohol and ego and you quickly
begin by introducing our lead character…
realise why an owners visit to any table is
the vic4m! The restaurant industry has al-
so fraught with danger.
RESTAURANT PROFITABILITY, OR RETENTION, IS AT AN ALL-TIME LOW. IN THE PAST A RESTAURANT OWNER COULD EXPECT TO RETAIN 18%-24% OF HIS TURNOVER (EBIT) THIS FIGURE IS NOW DOWN TO BETWEEN 7%-14%… SOMETHING ON PAR WITH WHAT THE WAITERS ARE EARNING IN TIPS AND OFTEN LESS THAN THE LANDLORD IS RECEIVING IN RENT!
Despite these challenges it remained an aErac4ve and seemingly lucra4ve pursuit because profit margins were acceptable to high IF you could manage your business properly. Alas all that has changed over the past several years. Restaurant profitability, or RETENTION as it is oKen referred to in the restaurant industry is at an all 4me low. Whereas in the past a restaurant owner could expect to retain 18%-24% of his turnover (EBIT) this figure is now down to between 7%-14%… something on par with what the waiters are earning in 4ps and oKen less than the landlord is receiving in rent! There are a number of key factors that have contributed to this. First and foremost is considerably slower than an4cipated growth, and the impact of this is a massive increase in the rental to turnover ra4o that should ideally be si^ng at 11% or less. (I shall delve into this a liEle further in Part 2: The Suspects – Landlords.) Secondly increased input costs as food prices climb and a budget conscious clientele con4nue to put pressure on restaurants NOT to increase their prices. (I shall delve into this a liEle further in Part 3: The Suspects – Suppliers and Part 4: The Suspects – Customers). But it would be untoward of me not men4on the owners, franchisers and other industry players that are contribu4ng to the decline either through total apathy and neglect or in some cases sheer stupidity. So the picture is a NOT preEy one and the casual4es are moun4ng… Who is to blame and what can be done about it? Watch this space for details…
New Chefs Who Share opportunity for young chefs
T
The Chefs Who Share charity event this year includes a wonderful opportunity for restaurants to put forward their most talented and promising young chefs to win a place working with the country’s culinary elite at the gala dinner in September. The aim of the CWS: Young Chef Award is to iden4fy and nurture talented young chefs. The 14 chefs they will be working with count among South Africa’s culinary elite, and will be role models and mentors for the emerging kitchen stars. It will offer a once-in-a-life4me opportunity for South Africa’s younger genera4on of chefs to work alongside their culinary idols and gain exposure to a high-profile
Africa on a Plate producer Lentswe Bhengu
audience. One young chef will also win an incredible trip to Europe. On the night of the gala dinner, the chefs work in seven teams of two, with a sommelier, with each duo crea4ng a unique four-course menu for 36 guests.
create an innovative canapé that will be served together with a glass of Champagne as a culinary highlight of the evening. In August, a panel of top chefs and experienced foodies, will join Africa on a
Chefs between from 18 to 29 years old
Plate producer Lentswe Bhengu to judge
working in a position ranging from demi chef
the canapés submiEed and select seven
to junior sous chef qualify to enter. To enter,
young chefs as compe44on finalists, who
up-and-coming chefs have until July 15 to
will win a spot in the event kitchen.