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Restaurantville MAG AZI NE

CO N N EC T I N G THE TEXAS R ES TAUR AN T CO M MU NIT Y

Is Delivery the Answer to Restaurant Owners' Prayers?

TXRestaurant.org

August 2018

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Q

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PUBLISHER Richie Jackson, CEO Texas Restaurant Association VICE PRESIDENT, MARKETING & INNOVATION Anna Tauzin Rice Texas Restaurant Association EDITOR Rebecca Robinson, Communications Manager Texas Restaurant Association ART DIRECTOR Janio Rodriguez L., Graphic Design Manager Texas Restaurant Association RESTAURANT VILLE MAGAZINE is published quarterly by the Texas Restaurant Association

For advertising information contact Miles Pequeno Senior Corp. Relations Manager communications@tramail.org

Editorial questions can be directed to Rebecca Robinson at 512-457-4100 or rrobinson@tramail.org

P.O. Box 1429 Austin, Texas 78767 512-457-4100 800-395-2872

It is the mission of the Texas Restaurant Association to be the advocate and indispensable resource for the foodservice and hospitality industry in Texas.

txrestaurant.org


Contents 4

WORD FROM THE PRESIDENT

7 LETTER FROM THE CHAIRWOMAN 8

MARKETPLACE 2018 RECAP

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Q&A WITH JIMMY HASSLOCHER

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NIGHT OF EXCELLENCE 2018 RECAP

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20 LONE STAR BASH 2018 RECAP 23

TRA'S SAFETY GROUP

24 DELIVER US FROM EVIL 33

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THE ART OF RECRUITMENT

34 WHAT'S WORKING? Q&A WITH THE INDUSTRY WORKFORCE 37

HOW TO RETAIN YOUR WORKFORCE

CL ICK HERE TO SUBSC R IB E

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Jimmy Hasslocher President of the Texas Restaurant Association

Word from the

President D

ear Members of the Texas Restaurant Association, Marketplace 2018 was a huge success. It was exciting to see it held in San Antonio this year, and we were proud to share the vibrancy and hospitality of San Antonio with the rest of the membership, and show them why San Antonio is the number one tourist destination in Texas. I can’t tell you how proud I am to be a member of the Texas Restaurant Association, and for the opportunity to serve you as this year’s President. We have a tremendous amount of work ahead of us, not only covering governance and succession, but the Texas Legislature as well. This will be one of the busiest years that TRA will be involved in. Please note that every membership

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is critically important and that we, as an association, are working hard every day to merit your support. We are continually reaching out for opportunities of common interest, and working together to solve the challenges of today and tomorrow. We welcome your input and thoughts as we move forward. I know throughout the state different communities have different issues of concern, and TRA will work hard to keep you informed, and we will be working together on multiple fronts in these changing times. I would like to thank Mark Davis Bailey for his passion and wisdom while serving as our 2017-2018 TRA President and thank Judy for sharing Mark with us and participating with him at the many events that took place this past year. The officers, John Gessner, President-Elect, Gary Johnson, Vice President, and Leo Duran, Jr., Secretary/ Treasurer, and I look forward to working with each of you and the board as we go through the year ahead.

A great deal of discussion took place in Corpus on the current events that are impacting our industry, and we feel that as a group, we are all working towards the same goals. These discussions will continue in September at Lost Pines in Bastrop, and I look forward to working with the officers, the Executive Committee, and board membership. We also are very proud of our working relationship with the National Restaurant Association, and owe TRA CEO Richie Jackson a great deal of gratitude for his many years of work in establishing Texas as a key partner. From the Rio Grande Valley, to the Coastal Bend, to the Permian Basin, East Texas, and all of the other chapters in the great state of Texas, we are here as your resource for whatever challenges or opportunities that you face in your chapter. Looking forward to this year and hoping our paths will cross. Best wishes to you and your family,

I am looking forward to working with the TRAEF Chair, Jessica Delgado, ensuring that we continue to support the very important workforce component of our industry. At 25,000 students strong, and growing, the Texas ProStart provides us with the best opportunity to build the workforce for the industry. Increasing our member involvement not only strengthens both TRA and the Foundation, it also increases member value and engagement.

Jimmy Hasslocher TRA President 2018-2019

Recently, your Executive Committee met in Corpus Christi and spent a lot of time working on governance, discussing succession, and items concerning the Education Foundation.

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My career began in this wonderful industry and it is my goal to continue to influence our future workforce by providing educational and workforce opportunities in communities all over Texas. As a lifelong learner, I am always wanting to grow professionally. I encourage those young and old, and those new to the industry or expert operators, to always be open to the future of our industry, as we learn from younger generations, new technology and the true voice of the industry, our customers. Jessica Delgado, TRAEF Chairwoman

A letter from the

Chairwoman

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t is my absolute honor and pleasure to be serving as your chairwoman for the Texas Restaurant Association Education Foundation this year. We have a big year ahead and I look forward to continuing the great progress that the Education Foundation has made since its inception. I have served as a TRA and TRAEF board member for five years, and my experience with this organization, board and members has been wonderful. My goals this year will be to bridge the gaps between the Texas Prostart Culinary Instructor and the restaurateur, to clearly celebrate and spread our great message, and increase the awareness and support of the TRAEF in the local chapter. I also have a handful of operational tasks that I believe will help to improve our efficiency as a board, such a kickstarter guide for new board trustees, and adapting additional avenues of communication.

The restaurant industry is ever-changing and our workforce must be just as innovative and forward moving as we are. More than ever, our industry demands a qualified workforce that is not only centered around culinary skills, but operations, hospitality, technology, and innovation. The mission of the TRAEF is to provide educational opportunities to build and maintain a strong professional foodservice workforce in Texas. It is my mission to offer my service to the Texas Prostart students and instructors, lead as a representative of our industry, and help to drive our workforce to full potential through continuous education, support and mentorship. As I begin this year as your chairwomen, I am grateful for this opportunity and I hope to lead our organization positively, as we continue to educate and build our workforce.

Sincerely,

Jessica Delgado TRAEF 2018-2019 Chairwoman

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MARKETPLACE Inspires with technology, trends, and solutions in San Antonio

2nd largest foodservice show in the US rotates to Houston in 2019

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he 81st Annual Texas Restaurant Association Marketplace, held July 15-16 at the Henry B. Gonzalez Convention Center, brought together more than 500 exhibitors and 6,600 foodservice industry attendees, ranging from restaurant owners and managers to chefs, educators, marketers, and media. Typically held between Houston and Dallas, the show broke with tradition this year, returning to San Antonio for the first time in more than 30 years, in time for San Antonio’s 300-year anniversary. Well-known as the largest and most comprehensive event for the foodservice industry in the Southwest, this year’s show pulled out all stops with hundreds of exhibitors from across the country, showcasing new products and innovations,

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equipment, and cutting-edge technology. Unique specialty pavilions dotted the show floor including a Craft Beverage Garden, Culinary Innovation Station, GO TEXAN area and a New Product Showcase. New this year was a Startup Showcase which included technology-based restaurant solutions from the startup world, along with a high-energy pitch-session event. “It was special to be back in San Antonio this year for TRA Marketplace,” says Richie Jackson, CEO of the Texas Restaurant Association. “The foodservice industry here is clearly booming and San Antonio is a nationally-recognized culinary destination. As the city celebrates its Tricentennial, it was the perfect time to unite the restaurant community. We saw a tremendous turnout


............................................................... ............................................................... ............................................................... this year with some of the best and brightest talent all under one roof.� A dynamic roster of powerhouse speakers generated several standing-room-only crowds, offering practical insights and valuable advice from three different stages. The Big Bend Big Ideas Stage, presented by Texas Mutual, featured industry leaders, the Silicon Hills Technology Stage, presented by Coca-Cola, showcased 30-minute interactive sessions on operational issues, and the Panhandle Culinary Theater, with its full kitchen setup provided inspiration from some of Texas' most celebrated restaurateurs and chefs. CONFERENCE HIGHLIGHTS INCLUDED:

Keynote Conversation: Johnny Hernandez and Hugo Ortega

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- Award-winning legendary chefs Johnny Hernandez of San Antonio and Hugo Ortega of Houston gathered for a fascinating, in-depth conversation on food, family, culture and the Texas restaurant industry.

A Conversation with Industry Giants

- Matthew Mabel, The late Creed Ford III, Russell Ybarra, and Skeeter Miller, share insights on consumers and the restaurant industry.

Solve Your Biggest Problem: Recruit & Retain

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- The newly appointed CEO of Torchy’s Tacos, GJ Hart, was interviewed by David Cantu, Chief Customer Officer for HotSchedules.

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- An exclusive group of seasoned HR veterans from top brands and technology solution providers talked through what it takes to drive employee loyalty, create reward systems that work, and demonstrate how culture can be used to solve problems.

Food + The Future: The Virtualization of Hospitality

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- Uptown Networks and Rafael Frederick of Bull + Bear shared a glimpse into new opportunities that exist in the restaurant space.

At the Head of the Table: Women in Foodservice Leadership

Keynote Interview: GJ Hart and David Cantu

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- Some of the industry's most powerful female leaders united to discuss the current and future state of the service industry, gender dynamics in the food service ecosystem, and practical strategies to implement in everyday work life.

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- A panel of long-term service industry employees dished on culture, communication, tools, and what makes them stay in the industry.

As a special treat, culinary students from the Texas ProStart Culinary Team from Rockwall High School, who placed second in the National ProStart Invitational this year, and South San Antonio High School showed off their culinary skills with live demonstrations.

There were also fun, high-energy networking events outside the show floor. On Saturday, July 14, TRA’s annual Night of Excellence awards dinner was held in the Hemisfair Ballroom of the Henry B. Gonzalez Convention Center, and the following evening, the Lone Star Bash took place at Sunset Station. Benefiting the Texas Restaurant Association’s Education Foundation (TRAEF), Lone Star Bash pulled in a crowd of 750 people, and featured guest Chef John Tesar of Dallasbased Knife restaurant, a four-time James Beard “Best Southwest Chef” semifinalist and “Top Chef” contestant.

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In the TRA PAC Lounge, an enthusiastic crowd greeted Houston attorney and national immigration expert Jacob Monty of Monty & Ramirez, LLP, who gave an overview of the changing immigration landscape and fielded questions. PAC members were also greeted with a presentation by Retired General Bentley Nettles, executive director of the Texas Alcoholic Beverage Commission.

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Restaurant Employees Speak Up:

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Next year, TRA Marketplace heads back to Houston, on Sunday, July 14 and Monday, July 15, at the George R. Brown Convention Center, 1001 Avenida De Las Americas, Houston, TX 77010. For more information and updates, visit www.tramarketplace.com.

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SAN ANT ONIO 2018

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Proud of the company we keep To learn more, contact Wayne Stewart 713.906.0593 or wayne.stewart@e-hps.com heartlandpaymentsystems.com All logos and trademarks are property of their respective owners

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Š 2016 Heartland Payment Systems, Inc.


Q A JIMMY &

With

1. What makes the Texas restaurant industry unique?

5. What motivates you personally each day?

First and foremost, TRA was founded by a group of entrepreneurs who wanted to have a place to go to discuss common interests, share different ideas, and talk about what different people are doing in the industry. TRA today has not lost that unique ability to reach out and share, mentor, and collaborate on operational problems and current issues.

My family at home, Tracie and Jordan, and our outstanding company team members. I certainly will not forget that my parents spent their lives working to build a great company, and it gives me great joy to continue their legacy. My passion is to grow the company, and hopefully work each day to make things better, and know that my parents would be proud.

2. What are the top issues or challenges facing Texas restaurants in 2018?

6. What are your top three goals for TRA during your tenure as President?

Government imposed mandates and staffing. Staffing issues will continue to be a problem for all segments of the industry. Recruiting and maintaining a talent base, technological shifts, and working to understand what millennials want and desire are all pressing issues, along with rising delivery and food costs.

7. What is your favorite thing to order at Jim’s?

3. What are the biggest opportunities for Texas restaurants? We should work closer together to solve the many opportunities and challenges that restaurants face today. Our message needs to be strong, so we can unite the industry. Texas restaurants are on the cutting edge of not only innovation and technology, but many are considered models for others to look at around the country.

• Leadership/Succession for TRA • Governance • Growing Membership

Depending on which part of the day; anything for breakfast is always good, salad for lunch, and for dinner, one of our famous burgers, of course!

Jimmy Hasslocher President of the Texas Restaurant Association 2018-19

4. What keeps you involved with the Texas Restaurant Association? Our membership continues to focus on telling our story and what we do for restaurant operators and foodservice leaders in Texas. We have a remarkable history of passing bills in the legislature. Our TRA staff does incredible work to stay in the forefront of the latest trends and technology within our industry.

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N OV E M B E R 7– 8 , 2 0 1 8 THE EMPIRE ROOM DA L L A S , T E X A S

T Richard Blais RIS 2017 KEYNOTE SPEAKER

Chef, Restaurateur, Cookbook Author & TV Personality

he Restaurant Innovation Summit will feature how the restaurant industry is implementing fresh technologies today – and explore key innovations of tomorrow. The agenda is packed with everything your restaurant needs to know about elevating the guest experience, maximizing operations and staying ahead of trends in technology.

TRA MEMBER PRICE - $299! AFTER SEPT. 5, USE CODE TRARIS TO RECEIVE THE SPECIAL PRICING. Questions? Please email meetings@ restaurant.org 2017 Food Innovation Panel

VIEW THE AGENDA and REGISTER TODAY at RESTAURANT.ORG/RIS

R E S T A U R A N T. O R G / R I S

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Spotlight on Excellence

CELEBRATES INDUSTRY LEADERS

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he Hemisfair Ballroom at San Antonio’s Henry B. Gonzalez Convention Center was transformed with a charming “night in old San Antonio” theme as the Texas Restaurant Association members, sponsors, and honorees gathered to celebrate outstanding leaders in the industry. This year marked the first time TRA Marketplace had been held in San Antonio in more than 30 years. More than 500 guests enjoyed an extraordinary evening that included live music by Henry Brun and the Latin Playerz and family-style dinner, crafted and prepared by executive chef of the RK Group, Thomas Gagliardi. A star-studded program entertained the crowd throughout the evening, with award presentations and inspiring words from industry leaders. Pride for the industry, along with excitement for the upcoming year, was apparent as the crowd enjoyed the music, food, community , and laughter. Guests were even treated to a final taste of San Antonio on their way home - house made pralines from the legendary Mi Tierra. The event was emceed by KENS-TV’s Great Day San Antonio co-host Roma Villavicencio. Title partner Texas Mutual Insurance Company’s Kelly Sartain welcomed the crowd and Mark Davis Bailey, TRA’s 2017-18 president addressed the crowd and presented awards for Outstanding Restaurateurs. The honorees included Tim Condon (San Angelo) from Lonestar Cheeseburger and Angry Cactus, Greater Houston chapter’s Doris R E S TA U R A N T V I L L E M A G A Z I N E S U M M E R 2 0 1 8

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who won the Texas ProStart Invit this year.

He then introduced the culinary from Rockwall High School in Ro and their instructors Cody Hayes an Manross. For the second year in a ro Rockwall team won the Texas ProSta Invitational and this year placed sec the National ProStart Invitational. M then recognized the 15 President’s members – who are part of a $2.5 fundraising campaign to help supp Foundation’s longevity.

The next honor was the prestigious C Mauro Award: The Spirit of Gene which recognizes outstanding achiev by an individual philanthropist. This award went to longtime TRAEF partn champion – the Texas Beef Counci and Paul Miller of GR8 Plate Hospitality, the East Texas chapter’s Andrew Gugar of Posado’s Café, Rio Grande chapter’s Chef Larry Delgado of house. wine. & bistro. and SALT – New American Table, and Lubbock chapter’s Kendall Howard of Howard Restaurant Group. Next came the TRA PAC awards, presented by 2017-2018 vice president John Gessner. In the non-metro chapter category, the El Paso Restaurant Association won for highest TRA PAC participation. In the metro category, the Greater Dallas Restaurant Association won the same title. The top donor award was presented to Russell Ybarra with the Greater Houston Restaurant Association. The spotlight then shone on the Texas Restaurant Association Education Foundation, and David Cea, owner of Orlando’s and Caprock Café in Lubbock and the 2017-2019 TRAEF Chairman spoke about the achievements the organization has made and presented a short video highlight. He then recognized the restaurant management team from Glenda Dawson High School and their instructor, Sean Dunn,

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tational

y team ockwall, nd Avery ow, the art State cond at Mr. Cea s Circle million port the

Carmelo erosity, vement s year’s ner and il in the

name of TRAEF treasurer, Russell Woodward. Both Russell and the Texas Beef Council have been a critical part of TRAEF’s success over the years. A culinary arts instructor in a Texas ProStart school who demonstrates leadership and excellence in culinary education. The TRAEF’s Educator Excellence Award Recognizes. This year the award was presented to Kandice Norrid from Tascosa High School in Amarillo, who implemented the Texas ProStart curriculum six years ago at her school. Kandice frequently hosts classroom competitions similar to the TV shows “Chopped” and “Top Chef, and even took her students to Disneyworld to participate in a culinary competition. The audience was then introduced to incoming TRAEF chairwoman, Jessica Delgado, co-owner of house.wine. & bistro. and SALT – New American Table in McAllen, who spoke of an upcoming year filled with opportunity and growth for the Foundation. The crowning moment of the evening came with the presentation of the highest recognition that the association can bestow, the Hall of Honor awards. This year’s honorees were Bob Westbrook of Tyler, former owner of Cici’s Pizza, and Leo Duran, owner of L&J Café in El Paso. Each awardee was honored with a profile video and presented with a special gift.

Closing out the night, the traditional ‘gavel hand-off’ took place from to current TRA President Mark Davis Bailey of the Original Pancake House in Dallas, to incoming TRA President, Jimmy Hasslocher of Frontier Enterprises. Mark Davis Bailey and his wife, Judy, were presented with gifts of appreciation, and thanked for the lasting impression he has made over the past year as president, traveling throughout the state, introducing TRA and its members to Conscious Capitalism and striving to unite our membership. Special thanks were presented to TRA Marketplace major partners; Coca-Cola Southwest Beverages, HotSchedules, Heartland, and Sysco, and community partner, the San Antonio Hispanic Chamber of Commerce. Appreciation and thanks were also given to Night of Excellence title partner, Texas Mutual Insurance Company and supporting table partners; ECOLAB, DeCoty Coffee, Auto-Chlor, Texas Beef Council, United Healthcare, Wortham Insurance and Ben E. Keith Foodservice. Kudos were also given to chapter table sponsors; East Texas, El Paso, Panhandle, Lubbock, Permian Basin, San Angelo, and Greater Austin, Greater Dallas and Greater Houston, and the San Antonio Restaurant Association.

Each year, the TRA Board President has the option to present a special President’s Award to those who have gone above and beyond in their service. This year, Mark Davis Bailey presented a Hero Award to Russell Ybarra, president/CEO of Gringo’s TexMex in Houston, and a Catalyst Award to David Goronkin of Mastodon Ventures in Austin. R E S TA U R A N T V I L L E M A G A Z I N E S U M M E R 2 0 1 8

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e had a great turn out of more than 700 guests at our 4th annual Lone ar Star Bash! The event this ye n was held at the Sunset Statio se rai d lpe he in San Antonio and money for TRA’s Education Foundation. Guests enjoyed re pr ep are d bit es fro m mo s, xa Te s ros than 17 chefs ac in sar Te including Chef John the VIP section, presented by re Texas Beef Council. There we es, ag ver be ft also plenty of cra live music from Jomo & the g, Possum Posse, networkin a and more! This party with s xa Te the pu rpo se be ne fits n o i t a i c Restaurant Asso d Ed uc ati on Fo un da tio n an nt the workforce developme , es uc od pr pr og ram mi ng it st ge lar ’s including the country t culinary arts and restauran d ma na ge me nt , ac cr ed ite rt. Sta Pro program – Texas

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Texas Restaurant Association Safety Group

Restaurants Can Be Risky Workplaces for Teens burns create another potential hazard for restaurant workers. For the last five years, these top losses have accounted for more than 70 percent of all restaurantbased claims. A Side of Safety

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very nine minutes, a teen worker is injured seriously enough on the job to go to a hospital emergency room in the U.S., according to the National Young Worker Safety Resource Center. Food service establishments employ the majority of teens, about 48 percent, yet restaurants are a particularly dangerous place for teenagers to work. Due to the nature of the job and working conditions, all employees in the restaurant industry are prone to workplace injuries. However, young and inexperienced workers are particularly susceptible to injury. With high turnover often occurring in this field, the need for safe workplaces and ongoing training is paramount. The most common causes of injury among restaurant employees are:

Too often, restaurants take a reactive approach to safety. Many operators may not realize their employees don’t know where a first aid kit is or what footwear is best until an accident occurs. Proper training can help prevent some injuries, but accidents can still occur. That’s where Texas Mutual steps in. Restaurants can protect their employees and their businesses with workers’ compensation coverage, and by joining Texas Mutual’s Texas Restaurant Association Safety Group. Texas Mutual’s safety groups allow companies in the same industry to purchase workers’ comp coverage at a group discount while also getting industry-specific resources that can help keep their employees safe. TRA safety group members can get a premium discount, as well as safety resources customized for their workers. Safety Pays

• 1. Cuts, punctures and scrapes. Thanks to frequent contact with knives, slicers and broken dishes and glasses, restaurant staff members can often incur lacerations or puncture wounds.

TRA safety group members are rewarded with dividends, which are like bonuses for keeping workers safe. In 2017, TRA safety group members received more than $3.3 million in safety group dividends from Texas Mutual, and the company has paid more than $2.5 billion in total dividends since 1999.

• 2. Falls/slips or trips. Restaurant employees work in spill-prone environments and must navigate slippery floors. Add in the characteristic hustle of the job, and a perfect storm of risk can occur.

Workers’ comp coverage and safety resources from Texas Mutual and the TRA safety group offer a way for restaurants to take care of the staff that works so hard to take care of others.

• 3. Sprains and strains. Misplaced or hard-to-reach items can cause worker injury due to overreaching or trips. Restaurant workers can also suffer from strains due to improper lifting.

Talk to your insurance agent about joining the Texas Restaurant Association safety group. Get more information about the TRA safety group here, or have your agent contact Tim Sekiya at tsekiya@tramail.org,

• 4. Burns and scalds. From sizzling stovetops to boiling water, fryers to scorching hot plates, heat and water

(800) 395-2872 or (512) 457-4100. R E S TA U R A N T V I L L E M A G A Z I N E S P R I N G 2 0 1 8

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Is Deli Answe Restau Owne By Rebecca Ann Robinson

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rowing up in the 1970s Midwest, the only thing that ever got delivered to our house was rock salt, Avon, and (on special occasions), pizza. Enjoying a meal that we didn’t have to make ourselves involved piling the family into the woodpaneled station wagon and making the 15 mile trek into “town.” Never would we have imagined, just a few decades later, that it would be possible to nosh on everything from Krispy Kreme to McDonald’s French fries to upscale dining within the hour (or less), at any time of day or night, with just a few swipes on the phone. Ordering in has become increasingly easy – almost too easy, some might say. Virtually anything can now be delivered for a price, and the choices are endless.

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At the heart of the phenomena is convenience, which is no longer dependent upon location. Some might call it sloth or laziness, while others might chalk it up to a frazzled, over-worked and over-scheduled labor force with leisure time at a record premium. Either way, Americans are eating more and more of their meals at their desks, in their cars, on their sofas, and pre-prepared. We are becoming so conditioned to instant gratification, that we have come to expect seamless on-demand delivery of most everything, from movies, groceries and prescriptions, to car washes and manicures. This convenience comes at a price. In a recent interview with CBS this Morning, Bon Appetit's editor in chief Adam Rapoport said, "I think what the restaurants have going


ivery the er to urant ers' Prayers? for them is they've got good lighting, good music. They've got vibes. They've got service. They got a cocktail list. We're not gettin' that at home. The difference now is when we're at home, we're eating better than we were before," Rappaport said. "I'll tell you what it's dangerous for, it's dangerous for our pocketbooks. Ordering in has become an increasingly fancier option. It's no longer the cheap and easy thing to do. It's easy, but it's not cheap." For restaurant delivery, the average spend is $32.01 (according to Restaurant Business).

Trent Patterson, owner of Dish Society in Houston, opened his first restaurant in 2014 and now has three locations, all of which offer delivery. “The biggest win for consumers is being able to buy back the most valuable asset on earth; time. By creating so many easy ways to access food, they can get more work done during the day, be home early to spend more time with their family, or just enjoy the time they do have with less interruptions.” With the surging demand for off-premise dining, and more specifically, delivery, the market has exploded with no signs of slowing. According to the NPD Group, Inc., a market research company, revenue from deliveries over the past five years jumped by 20%, with the overall number of deliveries increasing by 10%, and traditional in-restaurant dinner traffic falling steadily. Also, delivery is not just relegated to dinner - breakfast delivery exploded 13% between 2012 and 2017, and lunch delivery climbed 3%.

“The most sacred commodity for consumers now is not money – it’s minutes,” said Anna Tauzin Rice, VP of Marketing & Innovation at the Texas Restaurant Association. “Delivery saves us time, and many are willing to pay for it.” R E S TA U R A N T V I L L E M A G A Z I N E S U M M E R 2 0 1 8

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A recent Forbes article estimates current delivery revenue to be approximately $30 billion, but in just two years, that number is predicted to jump to more than $220 billion, 40% of total restaurant sales. That increase is 15 times faster than the rest of the restaurant business.

While some restaurants already offer inhouse delivery, most do not have the infrastructure nor the resources to keep up with the demand. As a result, third-party delivery companies have swooped in at a dizzying pace to help (literally) carry the load, dominating national headlines with acquisitions, partnerships and multi-million dollar investments. GrubHub, the online delivery company that owns Seamless, has nearly 9 million active users and is growing by two million new users annually, according to the company’s latest SEC filing. Waitr, founded in 2013, was purchased earlier this year by Landry’s owner Tilman Fertitta’s Landcadia Holdings Inc. for $308 million. DoorDash recently partnered with Chipotle to cover 1,500 of their 2,400 locations throughout the U.S., and in February Texas-based Favor become a wholly owned subsidiary of grocery retailer H-E-B. When asked, Favor reports that it continues to be business as usual for them, despite the H-E-B acquisition. While GrubHub is still the largest food delivery company, UberEats has been noted as the fastest growing by Restaurant Business Magazine. Between 2016 and 2017 UberEats went from just 1,000 restaurants to 8,500.

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What to Consider When Adding Delivery In-house delivery, especially for those who have never tackled it, can be a huge undertaking, with additional labor costs, gas, insurance, fleet purchases and more. “Delivery is an incredibly high-touch logistics business that requires focus on not just


the speed of delivery, but also the service experience,” said Keith Duncan, SVP of Sales & Business Development at Favor. John Moore, owner of Palazzo’s Italian Café and Moderno Tacos and Tex-Mex in Houston, has been doing his own in-house delivery for more than 20 years, and now also utilizes third party companies to handle the order side. “When third party delivery came on the scene, we were worried that they might cannibalize our own sales…but that didn’t happen. We ended up getting additional sales and we don’t plan on stopping anytime soon.” They took their time to carefully research different companies and are consistently evaluating.

To recap how it works; consumers place orders through an online portal, and the delivery company, using contracted drivers, delivers the food. Restaurants and consumers then pay certain percentage – a fee, of each order.

Branding One of the primary considerations is that of branding. The reputation and branding of a restaurant concept is sacred – carefully and thoughtfully constructed often at considerable expense. Once a meal is packaged and handed over to a third party, the restaurant is giving up control – of the product, the experience, and the service. More often than not, food quality, packaging and delivery time are out of the control of the restaurant when a third-party delivery company is in the picture, but negative consumer experiences can tarnish or damage the restaurant brand.

In addition to finding a third party delivery service that is affordable, find one you feel comfortable trusting with your brand.

It seems straightforward - so what’s not to love? Well, it’s complicated.

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John Moore feels that delivery companies “… have a pretty good feel for what restaurants do.” However, his bigger concerns do relate to branding. The delivery companies hire drivers as independent contractors, not employees. They cannot tell them to wear a uniform or take a certain delivery. He’s had drivers show up in muscle shirts, or not follow-up on a delivery, and that can potentially hurt your brand. Digital marketing channels are already important in branding and marketing, but with delivery, even more so. Hospitality, warmth, and the same type of emotional resonance a consumer would feel walking into a dining room can be created through carefully planned social media. John has a graphic designer create a branded menu for each delivery partner. Service is also an important part of branding, and John points out that it is important to treat drivers, as well as partners, as a customer. Good service begets good service all around.

Cost Delivery company fees vary (generally anywhere from 20-30%, and finding the sweet spot can be tricky, particularly if a restaurant is not receiving many orders. However, the value of delivery depends not only upon the number of orders, but also upon the overall financial health of the restaurant, and the level of additional expenditures. Delivery orders might be rising – but so are costs. Many restaurants

view delivery as secondary to on-premise dining. However, there is a risk of delivery orders surpassing on-premise dining, a phenomenon with which many restaurant owners have had to grapple. Increased thirdparty delivery puts pressure on existing staff to handle both delivery and inhouse dining and that in turn creates issues with tips and gratuities. When this happens, some restaurant owners have turned to, and had success with, what is known as ‘ghost restaurants’ – restaurants that are 100% delivery, with a kitchen to prepare all the orders, with no dining room or counter service. Many have had great success with this type of scenario.

Menu/Product There is nothing like food served hot, and fresh. When it gets packaged, and spends time traveling from door to door, quality is inevitably compromised. Some foods and ingredients travel better than others, and what might be your best seller in the restaurant, may not be your best bet for travel. Also, offering a full restaurant menu is more difficult to fulfill, if you are short on time and space. Many restauranteurs have found that it works best to have a limited delivery menu, made up of items that travel well. Restaurant partners of delivery company R E S TA U R A N T V I L L E M A G A Z I N E S U M M E R 2 0 1 8

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GrubHub can access insights that may help with deciding menu items. Caitlin Edwards, Senior Manager of Market Operations for GrubHub, said they, “…have the ability to provide insights into the delivery landscape, providing feedback on a particular market and consumer behavior, further optimizing a restaurant’s operations for delivery.”

Packaging Do not underestimate the importance of good packaging. Its purpose is two-fold; to protect and insulate the product, but it is also an extension of your brand – from package design to color, and it is important not to skimp. Consumers are well aware that quality is compromised anytime food travels, but they are willing to pay more to ensure that their food arrives with as much integrity preserved as possible. John also mentions that more and more, consumers have a heightened awareness and sensitivity about the use of plastic packaging. There are now many compostable, “green” options with packaging and although they are more expensive, can be used in marketing and promotion. In addition, the surge in third-party delivery has seen a welcomed revolution in food packaging which has lessened spillage, increased food delivery quality, and allowed more items to be delivered that have previously not travelled well. According to Favor, their runners are not permitted to open the customer’s food and orders are delivered in the exact same way they are packaged by the restaurant. Additionally, they offer insulated delivery bags for purchase to all runners.

Space, Staff and Operations There are many practical decisions to be made once a restaurant decides to deliver. Logistically, where will orders be prepped and kept for pickup? Is there enough space? Where can delivery drivers easily pick up the food? Are dedicated delivery parking spots needed or even possible? At what point do you need to hire additional staff to ease the burden of coordinating the delivery orders? Are there enough orders to justify the hiring of additional staff? Eventually, if there is not a dedicated person handling delivery orders, it falls upon the backs of bartenders or servers – positions that depend on tips. They will often become resentful of the extra duties without extra compensation. If existing staff are handling the orders, consider adjusting salaries to account for the additional responsibilities. Another option is to hire part-time staff to handle deliveries during high traffic times. Many restaurants also find themselves having to adjust their space to accommodate deliveries. Trent says that at Dish Society, they have changed their space four times in the past 18 months and are considering doing something more permanent. He has color-coded areas on counter for different partners – following the color scheme for the various delivery company brands. “Delivery is no longer an afterthought – we’ve even seen restaurant partners reconfigure their space to accommodate increased to-go orders, from new delivery pick-up windows to changing the layout of their back-ofhouse area,” said Duncan of Favor. Another sticky wicket seems to be integrating POS systems, particularly when working with multiple delivery companies. There are several solutions in the market, but Trent

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recommends Chowly, which integrates third party ordering systems with your current POS. Is there an end goal for what percentage of a restaurant’s business should be made up of delivery or other off-premise initiatives? Each situation will be different, depending on size, menu, demographics and many other factors, so there is no one-size-fits-all answer. For Trent, his goal is to get off-premise sales to 50-60%. “Off premise sales have a much lower impact on the square footage (that you rent). So, for us, it is paramount to achieve a much higher revenue per square foot than what average restaurants achieve.” There’s no single best approach for delivery, but experts recommend using multiple services. Some companies may be larger with a fantastic reach, but you will have more competitors. Some may have great rates and offer customer incentives. Others may specialize in a certain region. Mix and match, finding what works best for you. “Look for a delivery partner who understands that restaurants are their clients, too – not just consumers,” said Tauzin. “And don’t say yes to the first one who comes knocking.” No matter what service you end up using - negotiate. John recommends not doing business with any delivery service that is not willing to negotiate. Part of the beauty of dealing with multiple companies is that you can use the best deal at one, as a bargaining tool at another. Among other things, be sure to negotiate fees, customer offers and promotions and even equipment. The National Restaurant Association’s top trend for 2017 was “a challenging business environment.” Delivery offers a great way to potentially gain a competitive edge, increasing revenue in a manner that doesn’t require expansion. Its impact on the industry has been profound and continues to evolve.

There are several considerations that restaurant owners need to examine before taking the delivery plunge, but ultimately, “…the greatest challenge is standing firm on what is right for your brand, and your bottom line,” Trent says. “The easy top line growth can be intoxicating, but standing firm when you know certain commission rates are unprofitable is a challenge even for the biggest restaurants. Integrating the increased volume is also a challenge. Being able to find the right balance of staff that can meet the needs of dine-in guests while not substantially increasing the costs to execute the already lower margin orders is a real balancing act.” Even restaurants opting not to participate in delivery, will eventually have to account for the shift, if they haven’t already. It is not just delivery impacting restaurant sales, but all other off-premise dining as well, such as meal delivery kits, to-go service, and grocery retailers. Ultimately, restaurants need to research the value of delivery, examining fees, outsides expenses, staffing, space and overall financial health and decide what is best for them. Luckily, they can start small, track of the numbers and experiment with different companies. As for the plethora of delivery companies, and what the future holds, Trent says, “There will be a few strong third party companies left standing in the end. Those that care the most about the restaurants and how beneficial delivery is to us, will win. Those that only care about reducing cost for the end user and do not form real, beneficial partnerships with restaurants will cease to exist.”

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The ArtOf R Recruitment

ecruitment is the action of finding new people to join an organization, and in this case - your restaurant. In today’s business climate, it is becoming increasingly difficult to find quality candidates. The competition is fierce, with an unemployment rate of 4.0% in Texas. New restaurants are popping up every day and candidates have many different options. Below are a few ideas to help you, as an employer, navigate this landscape and start improving your recruiting process.

Be Found

Employment Branding

How are people finding your job opportunities? Do you have a sign in the window? Employee referral? Your restaurant career site? (If you don’t have a job board or a place for a candidate to apply via mobile, then it might be time to invest in this.) In today’s mobile environment, you need to go where the candidates are looking. The big players are www.Indeed.com and www.ZipRecruiter. You are probably familiar with other sites like www.Snag.com, Craigslist, and Monster, but Indeed and ZipRecruiter are making big investments on advertising to get your jobs in front of potential candidates. Facebook is making a big play with its job board also. The dark horse in this race is Google, who launched its job board last summer. Google now displays jobs within its search results. It is also using machine learning and AI (Artificial Intelligence) to help connect job seekers with companies.

In the world of recruiting, you are truly a “sales” person. You are trying to “sell” why your brand is better than your competition. Candidates want to work for a brand that is unique, fun, supports a cause, gives back to the community, has opportunity for growth, and pays well. How are you communicating this to potential candidates? You need to make your brand stand out to attract and create interest within the candidate pool. Candidates do their homework. They go to your company Facebook, Twitter, Instagram pages to see what you are doing in the community. They also can look at reviews for your company on sites like www. Glassdoor.com and Indeed’s review page. If you have not taken a look at your brand on these sites, you need to claim, edit, and monitor the content. Also, don’t forget to update your company LinkedIn page. Tell your story using these platforms to share your employment brand and show off your culture.

Job Board Optimization

Apply Process

If you’ve decided to post your jobs on one of the top job boards, you need to make sure you optimize the content for your ad to appear more frequently in the job search results. If your ad copy is not optimized, you may miss opportunities for quality candidates to see your information. The key is to use a specific job title for your ads. Don’t get too creative with the way your company communicates job titles. If it is not a common job title, then that particular job won’t pop up in a search. If you are looking for a restaurant manager, title it as such; restaurant manager. Don’t put general manager, because this ad will get lost within all the retail jobs. In addition to job title, you also want to include the job title within the ad at least three more times. I am not saying “keyword stuff”, but use the title strategically in the first sentence of your ad, in the middle of the body, then again close to the end. One little trick is to make the ad city/market specific. A candidate might type in on a Google search, restaurant manager jobs in Dallas. Your ad might pop up above others because you have named the city within your content.

Make it as simple as possible for candidates to apply. Bigger companies utilize an applicant tracking system (ATS) to help with the hiring process and onboarding, but you need to make sure this process is smooth, simple and mobile friendly. If you don’t use an ATS, utilize a short form on your company site or a simple email to apply. If you have not gone through the application process and timed out application completion via mobile and desktop, then you should, in order to fully evaluate what your candidate is experiencing. It could be impacting candidate drop off. The application process needs to be mobile friendly, quick and easy.

Keep an eye out for a New TRA Job Board, launching September 2018!

The Art of Recruitment is not easy, and is constantly changing, but these quick tips can go a long way in helping you find the candidates you need.

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Q&A with the Industry

WHAT’S

Working?

We recently asked a group of members a series of questions to find out what is working well for them when it comes to recruiting and retaining staff. Read on to find out their responses.

animal, which "If you were an and why?" one would you be B-Cutie, Moris Saide, BarSan Antonio

What is your favorite interview question? Why? During an interview, how can you tell if someone will be a good fit, culture-wise? What is an inexpensive way you can reward your team? your interest “W hat prompted and our in this position this simple ’ I love organization?’ t it says a lot abou e us question beca e th t ha w n for someone’s passio so helps us al It . es do company ates who are id nd ca te differentia other job vs. just looking for an ning to become those who are plan e goals of our th fully invested into ering the best liv de d an organization omers.” st cu r ou for nson, ECOLAB, – Alexandra Sore Austin ch how their “I listen and wat em. Also I th peers respond to ts when they bi ha r observe thei ” ne is watching. don’t think anyo tier Enterprises, on Gar y Johnson, Fr onio A n Sa nt

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How do you spot and develop leaders in your organization?

“We designed a formula for a go hire, and the m ost important pa od rt of the formula is ch arisma. If they are charismatic, th e rest can be taught.” - Moris Saide, Bar-B-Cutie, San Antonio ge “Stock the break room, massa s, off certificates, lotto scratch ice cream bar, hand written letter of recognition.” – Liz Berry, ry Creative, Austin Ber Liz

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hem nd ask t ilies, a e t a c i am un “Comm selves, their f em." m h e t h h t about re things wit you how a em know that Let th te them.” apprecia cher, Frontier Hasslo io – Jimmy rises, San Anton p Enter

“Discounted staff meal ben efit, rotating weekend days off, bringing candy or energ y dri nks to busy shifts, making family style meals on busy days.” – Charles Youts, The Classic Café, Roanoke

d in p

diff w p pe thi


“Describe one of the most difficult situations you’ve had ledgement of nvolving conflict with another “Regular acknow d what they an person. How did you handle their hard work ropriate pay pp it?'' Why? You hear so many contribute. A ges.” raises/title chan reative, fferent stories. Some answer this rr y C when something happened on a – Liz Berr y, Liz Be onio nt A an AustinS professional level and some on a ersonal level. Those that answer s on a personal level usually have some peculiar stories. “ – Jessica Gollihar, ECOLAB, “Pay attenti on Garland schedule re to and honor their reviews, an quests, give timely l for their e d be interest fe a t e g e ally n st io a “I tr y to s ff s ’s fe o o u r tside-of-wo d in your both p , s sk a ie rk I it life.” r ." io fe pr – Charles You personal li y at their ir e ts h , t in The Classic C and al d a afé, Roanoke ribe a typic ow them to desc ask questions about h ’s last job and eir previous employer th t e m y e th s.” expectation rontier F , n so n – Gar y Joh San Antonio Enterprises,

“I tell k e book t y people, the hat sta r rts: It w e is a famous times a n as the b d it wa Busines s is goo s the worst of est of d, but ever yw times. have to here. From m staffing is toug eo do h We can a little better n down, we al l do i t . L et’s com and maybe mo r m e. help ea unicate ch ot to and – Geral her more.” El Merc d Stone, ado, Au stin

crease of job “Incremental in time to reduce over responsibilities u are short.” yo n he shock w Nichols, d oy Ll – The Diner, Tyler

Any great retention tips to hold onto your great employees? How have you managed your business when you are short staffed? Do have an employee referral program for new team members? Is it incentive-based? “T ople who are “They are the pe don’t we do ‘W hy always asking, way?’ is th it of a busy shift on e dl id even in the m n that question is Friday night whe riate.” not approp , Surrender Inc., – Matthew Mabel

“Yes - it is monetar yonly after the incom based and ing or referred candidate hits 6 mon ths with us is it paid out. Here at Amber Green Corporation we believe that our current team members who ar e living our core values are a great reso urce in finding like-minded potential team members and are our best evange lis holds them accountable ts. This also and gives them a vested interest in our overall success.” – Greg den Herder, Abby’s Catering, Hous ton

raining, ov and occasio erlapping at times nally pull from oth have a need to er – Jimmy Hass stores.” locher, Frontier Ente rprises, San A ntonio

y s get $200 for an “Yes! Employee fer that stays re employee they past 90 days.” – David Cea, ock prock Café, Lubb Orlando’s and Ca

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Here are a few of the tidbits mentioned by Amanda McNamara at modernrestaurantmanagement.com: 2

From Seasoned, the Official Retention and Recruitment Ally of the TRA

L

et’s just get this out of the way: restaurant churn is big, bad, and getting worse.1 If there was a singular solution that all restaurants could implement, this problem would have been wiped clean years ago. Unfortunately, there is no magic bullet. So what’s the good news? Data analysts are coming up with a lot of ideas that can be implemented on a manager's own authority that are small, yet meaningful steps toward a brighter future: Restaurant work is a team sport. And communication counts, at all levels. Ever seen a roadside restaurant handle an unexpected busload of hungry teens? The dialogue between experienced staff and younger employees becomes constant. Problems are dealt with right away, or seemingly before they even happen. Roles might switch, then switch back again. That's communication, and employee engagement, in action. A lot of people are talking about it these days, and noting that effective communication can actually be driven by organizational habits within reach of most managers.

• 81 % of workers would rather join a company that values open communication over one with a laundry list of fun perks or benefits • 47% of workers cite lack of recognition and poor company culture as the main reason for leaving their job • Increased employee engagement is key when 70% of employees are not engaged at work. She recommends avoiding "just in time" scheduling with a "firm, monthly deadline" for workers to state their availability. Key benefits? It can be posted weeks in advance, so schedulers always have the most current information. At the same time, they can respond effectively to the last-minute changes that drive everyone crazy, respect everyone's commitments outside of work, and avoid overtime costs. The article also highlights the importance of saying "Thank You!" on occasion and providing continuous feedback in general. Of course, finding the right time and place for the right piece of feedback is worth thinking about, but don't let it bog you down. Negatives are better dealt with privately and in-person. On the other hand, if you have something positive to say, why not take advantage of social media? A public "great job on your shift tonight" post, if you don't wear it out through overuse, offers the recipient a long-lasting favor that will be appreciated, takes little time, and doesn't commit you to anything further. Skip any details, they're beside the point. R E S TA U R A N T V I L L E M A G A Z I N E S P R I N G 2 0 1 8

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CONT.

Over at the Rail,3 Justin Aucoin reports similar findings, and adds that continued training and cross-training are great ways to build greater engagement and leadership on the job. And that leads us to another good take-away from our reading list.

assistant programs, and report longer-term employee retention for those enrolled. If you're working for a smaller operation, it just might be worth calling up your local institution of higher learning to see if there are some already-established programs that you can participate in. And in this labor market, if you can stretch a talented worker's employment from a few weeks to a few months or more, it's probably worth looking into. It all goes back to small, yet meaningful steps.

Culture counts. Gallup runs a lot of numbers on workplace culture, employee engagement, and retention, and their key findings are summarized in a recent report.4 It notes that "talented people want to work for organizations with strong cultures," and that being able to hire the most-talented candidates from the available talent pool results in "less absenteeism, fewer safety incidents, less turnover, higher customer metrics, higher productivity, and higher profitability." Echoing the articles listed above, they also identify frequent conversations and feedback as key attributes of companies that attract the most-talented candidates to work for them. Fewer teenagers are entering the job market these days. How can we keep the few we have?5,6,7,8 "More money" still comes in at #1 on everyone's list, but that's a complex decision to make and implement, and beyond our scope here. Knowing what your local competitors are paying will always be valuable information to have, and worth passing up the managerial chain in order to keep your store competitive. A more interesting finding, noted across the industry, is that "kids these days" are more responsive to tuition assistance programs than earlier generations. Giants like McDonalds, Taco Bell, Chipotle, KFC, and Starbucks are increasing their tuition

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About Seasoned Seasoned is the first foodservice-centric community designed to connect prospective employers with qualified candidates, and workers with jobs and career development resources. From cooks and dishwashers to servers and hosts, gig workers to lifers, Seasoned aims to help improve the lives and livelihoods of those who work hard serving others. Seasoned has a special offer for TRA members: free white glove job postings. Sign up here.

Sources (also recommended for further reading, all accessed as of August 17, 2018)

1 Piro, Restaurant Churn: The Beginning Of The End, dated 7/24/18, https:// www.seasoned.co/blog/2018/07/24/ restaurant-churn-the-beginning-ofthe-end/

5 Abrams and Gebeloff, A Fast-Food Problem: Where Have All the Teenagers Gone?, dated 5/3/18, https://www. nytimes.com/2018/05/03/upshot/fastfood-jobs-teenagers-shortage.html

2 McNamara, Score with the Playbook for Employee Retention, dated 3/29/18, https://www. modernrestaurantmanagement.com/ score-with-the-playbook-for-employeeretention/

6 Whitten, Starbucks, Chipotle, and others are offering up a new employee perk: Paying for their education, updated 4/18/18, https://www.cnbc.com/2018/04/13/ restaurants-use-college-tuition-programsto-combat-high-turnover.html

3 Aucoin, 4 Tips for Lowering Your Restaurant Staff Turnover, dated 10/20/17, http://www.therail.media/ stories/2017/10/20/4-tips-for-loweringyour-restaurant-staff-turnover

7 Kelso, Quick-Service Restaurants Are Raising Their Minimum Wages As They Shift Focus To Labor And Retention, dated 6/1/18, https://www.forbes.com/sites/ aliciakelso/2018/06/01/quick-servicerestaurants-shift-priorities-to-focus-onlabor-and-retention/ - 5d2784c16e4c

4 Dvorak and Pendell, Culture Wins by Attracting the Top 20% of Candidates, dated 6/28/18, https://www.gallup. com/workplace/237368/culture-winsattracting-top-candidates.aspx

8 Guest Author, 5 Tips to Reduce Employee Turnover in Your Restaurant, dated 8/-/17, https://www.qsrmagazine.com/outsideinsights/5-tips-reduce-employee-turnoveryour-restaurant


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