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Restaurantville winter

M AG A ZI N E

CO N N EC T IN G THE TE X A S R E STAUR A NT CO MMUN I T Y

On-demand food-delivery apps and services are changing the restaurant industry.


PUBLISHER Richie Jackson, CEO Texas Restaurant Association EDITOR Wendy Woodland, Vice President, Marketing & Communications Texas Restaurant Association ART DIRECTOR Carol Ann Lee, Graphic Design Manager Texas Restaurant Association CONTRIBUTORS Glenn Hegar, Texas Comptroller Chantal Rice RESTAURANT VILLE MAGAZINE is published quarterly by the Texas Restaurant Association.

Editorial and advertising questions can be directed to Wendy Woodland at 512-457-4100 or wwoodland@tramail.org.

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

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

restaurantville.com


Contents 4 F E AT U RES 4

D EL IV E RI NG THE GOO DS O n-demand food-de l i v ery a p p s a nd serv i c es are chan gi n g th e re s ta urant i ndu stry.

25 T HE PULSE OF OUR ECO NO MY D E PA RTMENTS 29 T EXA S 36 0

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3 7 CO MM UNI T Y NE W S CL ICK HERE TO SUBSC R IB E

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Deliver ing the Goods On-demand food-delivery apps and services are changing the restaurant industry. Consumers are eating it up. But are restaurateurs getting a raw deal? BY: CHANTAL RICE

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UberEats, the food-deliver services sans delivery fee fr


y division of transportation-network giant Uber, launched last year in Austin, Dallas and Houston, providing lunch-delivery rom restaurants it partners with—a key distinction from Favor.

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A

t Hoover’s Cooking, the beloved Austin comfort-food darling where “honest-to-goodness good Texas cooking” is a way of life, the turkey situation was heating up as Hoover Alexander and his small staff prepared for the Thanksgiving holiday last year. As usual, Hoover’s offered a variety of home-style Thanksgiving turkey options (hot, cold, carved, uncarved), and business was at a fever pitch as in-house customers and call-in to-go orders flooded in. One such order for a cold, uncarved turkey was called in and picked up not by the customer, but by a delivery driver, or Runner, for Favor, a food-delivery app gaining popularity in the capital city. Shortly after, the Runner returned to Hoover’s, claiming the turkey order was incorrect; the customer expected a hot, carved turkey. Apparently, there had been an order miscommunication between Favor and the customer. But for Alexander, the oversight was more than just a simple error. “We’re really flustered with Favor and other delivery services because there are more demands on our employees, who are doing all the work and not getting tipped for that work. We end up with disgruntled employees and are depriving them of income,” Alexander says. “A couple times, a Favor order has come in as 15 orders that have to be bagged separately with separate names. That’s a lot of work. It leads to a distraction of personnel. That’s the biggest problem with the no-opt-in services like Favor.” Alexander is not alone in his frustration with food-delivery apps and services, which are quickly becoming

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ubiquitous in Texas’ restaurant industry. While many restaurateurs boast increased sales with these on-demand delivery services—a worthwhile outcome, to be sure—others, particularly smaller operators, are struggling with how to best incorporate these third-party delivery services into their businesses, if at all. ARE TEXAS RESTAURANTS BITING OFF MORE THAN THEY CAN CHEW? Marcus Davis, owner of The Breakfast Klub in Houston, says his business is not currently using any delivery services, though he admits he is investigating them. Davis’ biggest hesitation—one shared by many restaurateurs—is centered on food quality. However, he concedes that since his customers do request delivery, it will likely become R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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part of The Breakfast Klub’s strategy moving forward. Ed Murph of Norma’s Café, a classic diner restaurant with three locations in the Dallas area, is also warming to the trend. “We do not use food-delivery apps. However, the folks at Uber have chosen us … to test their delivery system. They approached us. At this time, we do not do across-the-board deliveries. We do enjoy a brisk takeout service that seems to serve our customers well,” Murph says, noting that the biggest benefit so far has been “they don’t take up seats in the restaurant when we’re busy.”

Food-delivery apps and services are quickly becomin

UberEats, the food-delivery division of transportation-network giant Uber, launched last year in Austin, Dallas and Houston, providing lunch-delivery services sans delivery fee from restaurants it partners with. This is a key distinction from Favor, which delivers from restaurants that have partnered with the company, as well as those that have zero affiliation with the company. When a delivery app company delivers from restaurants that have not opted-in to the service, there can be an array of issues, such as supplying customers with out-of-date menus and causing otherwise steady kitchens to explode with to-go orders. “UberEats works with restaurants up front. We believe strongly in good relationships, and we don’t deliver without restaurant approval,” says Sarah Groen, general manager of UberEats in the Houston market. “We go talk to restaurants in advance and come up with a plan that works

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ng ubiquitous in Texas’ restaurant industry.

for them and a curated menu that changes every day. This is better for restaurants to manage their food quality.” Key benefits for restaurants using UberEats, Groen says, include the ability to increase income in off-peak times, and UberEats’ targeted marketing of restaurant partners. “People love and trust Uber, and that imparts trust for the restaurants we work with as well,” she says, adding that UberEats does charge restaurant partners a transaction-based fee for its services, though she declined to disclose the exact figure. As the bottom line is always top of mind for restaurant operators, cost is a key determining factor when considering whether to employ third-party delivery services, which in addition to Favor and UberEats, inR E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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clude Postmates, EatOutIn, DoorDash and even Amazon Prime Now, to name a few. EatOutIn, which began offering food-delivery services in Austin an astounding 30 years ago, differs somewhat from the newer players in the game. EatOutIn focuses on corporate customers, with the majority of orders coming in through the company’s website or by phone versus an app.

“We take a commission from the sales we send to the restaurant,” says Jenny Kim, EatOutIn’s business development and marketing manager. “We’re not the cheapest out there. But we stand firmly behind it. There are restaurants that have been with us from the very beginning, like Chuy’s and Chinatown. They’ve not been with us for 30 EatOut In is not a tech com years because they’re not making any money. We may not be as sexy as Amazon and Uber, but we know where our strengths are. The biggest difference between us and Amazon, Uber and Favor is that, yes, we focus on technology, but we’re really not a tech company; we’re a service company. And with all the competition, we’re up 30 percent this year from last year. We’ve got new restaurants coming on every single day.” Kerbey Lane Café, which operates six locations in the Austin area, has experimented with a few delivery services, including Favor and Postmates, which provides deliveries 24/7 from Austin, Dallas, Houston and San Antonio restaurants it partners with, as well as those that have no association with the company. “The way it was proposed to us,” says Amanda Kuda, director of marketing for Kerbey Lane, “is if you are a preferred restaurant and work with the apps directly, you pay a fee to them. Honestly, there are several we’ve

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mpany, it is a service company with the majority of orders coming in via their website or by phone.

chosen not to go preferred with because, aside from the fees, we don’t really want to increase our to-go business.” That’s because Kerbey Lane’s fare—an array of comfort-food options like pancakes, eggs and other breakfast items—are meant to be brought directly from the kitchen to the customer’s table, and don’t particularly travel well or reheat consistently, thereby degrading the quality of Kerbey Lane’s product. “The cool thing about these apps is it’s convenient for the consumer,” Kuda says. “But I think it’s putting lot of unexpected challenges on the restaurant industry. Their value proposition to us is, ‘Look at all this business we’re bringing your way.’ But I don’t think they’re bringing extra business; they’re reframing the conversation on how that food gets to the consumer. It’s a false value proposition they’re providing as a partner sayR E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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ing they’re bringing in extra business. We simply can’t provide the Kerbey Lane experience to someone in their home.”

As the bottom line is always top of mind for restaurant operators,

cost is a key determining factor when considering whether to employ third-party delivery services.

Harlan Scott, director of operations for Parkside Projects, Chef Shawn Cirkiel’s group of Austin restaurants, and Sarah Bayley, general manager of Parkside Projects’ tiny Neapolitan-style pizzeria, The Backspace, echo Kuda’s concerns about food quality and cost when using these delivery services. The Backspace reluctantly utilizes Favor and Postmates when those orders come in, “We don’t use them; they use us,” Bayley says. They currently partner with Amazon Prime Now, which markets The Backspace as its featured pizzeria in the 78701 zip code, providing the restaurant some flexibility in terms of when it is willing to accept orders, and charges the restaurant a whopping 27 percent for its services. In fact, Scott notes that should The Backspace’s Amazon Prime Now orders increase significantly, say to something like $400 a day, the restaurant would certainly have to adjust its business model to accommodate the service’s fees. That financial concern is in addition to the food-quality issue.

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“The cool thing about these apps is it’s convenient for the consumer,” Kuda says. “But I think it’s putting lot of unexpected challenges on the restaurant industry.

“Our pizzas, once they’re done, they die in about five minutes. We make people come in and order in person and they walk out when it’s done. With regard to how Favor and Postmates impact our business, it’s important to remember that it’s inherently inconvenient when they come in and order seven pizzas,” Bayley says. “We’ve heard bad feedback from customers. That is sort of where the model breaks down. We can guarantee quality of food until it leaves the restaurant. Sometimes, I’ll tell the drivers it’ll be done in 10 minutes, and they won’t come back for 30. That’s the frustrating part we have no control over.” Most of the food-delivery apps and services available to Texas restaurants claim they deliver food in a timely manner—anywhere from 10 minutes with UberEats to up to two hours with Amazon Prime Now—and say their delivery drivers are keenly invested in getting food to customers while it’s still hot and in quality condition. However, most admit traffic, busy restaurant times and unforeseen circumstances are potential obstacles that can affect delivery times. R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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While Scott and Bayley grant there are benefits, like enhanced marketing for the restaurant and exposure to new customers, they note a particular downside similar to Alexander’s concern of added stress on and less money for restaurant staff.

The downside is these orders have to be

p rocessed by a very small staff

“With Favor and Postmates, it is free money with no cost to us other than dealing with a normal to-go order,” Scott says. and there is no “But there is a downside: Those orders tipping, ever. have to be processed by a very small staff. And, as a matter of fact, there’s no tipping, ever. The person calling in is going to tip the driver, but not us. … Favor is literally taking money out of our staff’s pockets.” Despite these concerns, Scott says The Backspace isn’t ready to write off third-party delivery services entirely. “The writing certainly is on the wall with all these delivery apps,” he says. “The question is do we want to be scrooges and not be part of this movement because it’s forcing us to change our business model? Amazon has given us the opportunity to see if controlled delivery service works for us. It’s kind of an experiment.” EASY MONEY OR WASTED SPLURGE? Considering the potential fees involved in employing third-party delivery services, combined with the loss of control over food quality and a restaurant’s brand, plus the added stress on smaller kitchen staffs, is it worth it to the average restaurateur to tap these services? R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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Health Care Reform: Guidance and Solutions  Guidance

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 Solutions

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To discuss UnitedHealthcare’s solutions for your business, contact Clinton Wolf at (312) 348-7064 or clinton_v_wolf@uhg.com.

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According to April Conyers, director of communications for Postmates, the company delivered from 100,000 merchants last year, and currently operates in 40 metropolitan markets with some 25,000 delivery drivers—stats that speak to the company’s behind-the scenes efficiency, which leads to increased business for restaurants.

Delivery apps say the biggest benefit to restaurants is new customers and additional revenue.

“Restaurants are able to offer delivery without having to hire their own drivers. We constantly work on maintaining quality. As more drivers come on to the platform, we take every effort to make sure quality is the first priority,” she says. “Many restaurants have seen a three-times lift in sales from when they partnered with Postmates.” Tina Heileman of Favor says the biggest benefit to restaurants using that service is, “We bring them new customers and additional revenue. … Almost every case study we’ve run shows the same effect: Increased presence on the app correlates​ directly with higher sales months for our partners.” Likewise, EatOutIn’s Kim says most of their restaurant partners do see an incremental increase in business. “It’s exciting, especially for small mom-and-pops. In the first week, we might send them a $400 order. There could be a little bit of a learning curve for restaurants as far as what to expect,” she says. “But R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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the only way we lose restaurants from our site is if they close down.”

We didn’t offer delivery before, so it’s been a very productive way to

expand ou r brand and offer ings to people who might not otherwise have known about us.

Judson Holt of Houston-based Lupe Tortilla Mexican Restaurants, which uses Favor and DoorDash, says the services have worked with him to ensure the best results, one even installed iPads in some restaurant locations to speed ordering. He’s quick to note that despite offering its own in-house delivery services, they’re not negatively affected with the addition of Favor and DoorDash. And even more significant is the increased business Lupe Tortilla has experienced since adding these third-party delivery services. “[We’ve seen] increased to-go revenue/ profit, as well as a reduction in the number of drivers we need to have on staff,” Holt says, noting that other than third-party services not tipping out his staff, he has been very happy with them. “We will be launching a new to-go menu soon with slightly higher prices than our dine-in menu to cover the cost of packaging, as well as a rate increase for our to-go staff to cover the non-tipping delivery services.” Aaron Lyons of Dish Society, a casual farm-to-table eatery with two locations in

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“We didn’t offer delivery before, so it’s been a very productive way to expand our brand and offerings to people who might not otherwise have known about us. It also drives traffic to the store.”

the Houston area, says the restaurants use UberEats, Favor and DoorDash, and that despite some technology glitches, the experience has been positive, and there have been increased sales for the restaurants. “Our to-go business went from about 15 percent of sales to now 25 percent of sales. There is no doubt that a majority of this growth is incremental,” Lyons says. “I’d say about 80 percent is incremental and 20 percent is previous customers using the service instead of coming to pick it up themselves. We’re seeing that the guests that used to order directly from us in the past that are now using one of these services have increased their order frequency because of the added convenience. “We didn’t offer delivery before, so it’s been a very productive way to expand our brand and offerings to people who might not otherwise have known about us. It also drives traffic to the store.” R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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For other restaurateurs, the boost to business isn’t so clear, or doesn’t override the inconvenience of adding these services. “For us, it’s more of a convenience for the consumer,” says Kerbey Lane’s Kuda. “Maybe, if I crunched the numbers hard, I could say it increased business at a particular time, but does that pay for the extra cook or the to-go person we have to add to the staff? I don’t know.” For Alexander, the challenges versus the benefits of employing third-party delivery services aren’t terribly clear, though he concedes that his mind isn’t entirely made up. “My two big concerns are the diversion of income from my staff and not being able to control the brand and food quality. Those are the two big things in my craw. The third issue is that our margins are razor thin as is. To pay [a delivery service] a percentage of a sale is not a good fit for me. “But I know that things are changing and I don’t want to be stupid. If the market changes so much, I’ve got to get in the game. The issues will have to be resolved in my head. I’m open for it down the road, and open to what other restaurants are saying or doing. But who we are, our price point and clientele, those are important aspects in my mind. One size doesn’t fit all. We just don’t have the kitchen capability, though I can see it working for some folks. I’m trying to keep an open mind.”

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ON-DEMAND DELIVERY APPS 22

Founded: 2013 Founded: 2011 Based in: San Francisco, Calif. Mission: “To become the on-demand delivery infrastructure for every major city in the world.” What the company does: “Connect customers with local couriers, who purchase and deliver goods from any restaurant or store in a city.” Deliveries are offered 24/7. Allows restaurants to opt in: Yes, but the service also places to-go orders for their customers with restaurants that have not signed up as partners. Benefits for restaurants partnering with Postmates: Restaurant-specific marketing; sole control of menu options offered and how items are ordered and delivered; lower, flat-rate delivery fee to customers of $4.99. Process: Customers order and make payments through the Postmates app or website; Postmates places the order via phone, fax or online, per the restaurant’s preference; a Postmate (delivery person) picks up the order from the restaurant and delivers it to the customer. Texas cities where Postmates currently operates: Austin, Dallas, Houston, San Antonio

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Based in: Austin What the company does: “Favor is the easiest way to get anything you want in your city delivered to your door in under an hour” from restaurants and stores in the delivery zone. Allows restaurants to opt in: Yes, but the service also places to-go orders for their customers with restaurants that have not signed up as partners. Benefits for restaurants partnering with Favor: Restaurant-specific marketing Fee for restaurant partners: Favor charges a percentage of the net revenue for orders a restaurant receives through the Favor app. Process: Customers choose a featured item from any restaurant in the delivery zone and pay through the app; the order is assigned to a Runner (delivery person), who delivers the order from the restaurant to the customer. Texas cities in which Favor currently operates: Arlington, Austin, College Station, Dallas, Fort Worth, Frisco, Houston, McKinney, Plano, San Antonio, San Marcos


Founded: 1986 in Austin Based in: The Austin call center manages all Texas markets in which EatOutIn operates, though the company was recently acquired by California-based LABite.

Founded: Food-delivery service began in 2015. Based in: San Francisco, Calif. What the company does: “Delivers the best meals from favorite local restaurants in 10 minutes or less.� Allows restaurants to opt in: Yes. UberEats only works with restaurant partners that have granted advanced approval for delivery services. Benefits for restaurants partnering with UberEats: The company works with restaurants to determine which menu items to feature on its app and website any given day, and provides targeted marketing of partner restaurants. Fee for restaurant partners: A fee is applied to restaurants on transactional basis. (The exact amount was undisclosed.) Process: Customers place an order and pay through the app; an UberEats driver picks up the order from the restaurant and delivers it curbside to the customer. Texas cities in which UberEats currently operates: Austin, Dallas, Houston (In all Texas markets, only lunch service is available, from 11 a.m. to 2 p.m., Monday through Friday

What the company does: Provides restaurant-delivery services with a focus on customer service Allows restaurants to opt in: Yes. EatOutIn only works with restaurant partners that have granted advanced approval for delivery services. Benefits for restaurants partnering with EatOutIn: Restaurant-specific local marketing through email, social media and printed menu guides, as well as in-person events highlighting featured restaurants’ food. Restaurant portal enables restaurateurs capability to run reports on most popular items, prep time, income from EatOutIn orders, etc. Fee for restaurant partners: Commission to EatOutIn based on orders sent to the restaurant. Process: Most customers place their orders online, but can also call in their orders to EatOutIn or email orders, and pay with cash or credit card; the tracking process begins; EatOutIn faxes or calls the restaurant with the order, per restaurant preference; the EatOutIn delivery driver picks up one order at a time from the restaurant and delivers it to the customer. Texas cities in which EatOutIn currently operates: Austin, Houston, San Antonio. Expanding to Dallas, likely later this year

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24 hours to amplify TRAEF

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The Pulse of our

Economy By Texas Comptroller Glenn Hegar

Texas Comptroller Glenn Hegar

F

or the past few months, I’ve been traveling across the state, meeting with Texans from all over, talking about our economy — and doing quite a bit of listening, too.

I’ve found that Texans are very interested in the state economy, and a little worried about the tumultuous times in which we live. Their questions — How are we doing? And where are we headed? – are basically pretty simple, even if the answers aren’t. Supplying those answers is my job, of course. As Texas’ chief financial officer, I’m charged with managing the state’s finances and monitoring the economy to make sure our revenues stay strong. Our economists and researchers have to keep their eyes fixed on the road ahead, staying abreast of trends and events that could affect our economy and the tax revenues it generates. Despite a slowdown caused by slumping energy prices, I’m happy to report that the Texas economy is doing well — particularly in comparison to most other states, many of which are still mired in one of the weakest recoveries on record. R E S TA U R A N T V I L L E M A G A Z I N E W I N T E R 2 0 1 6

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There’s no question that our growth will be more moderate than it was during the shale rush. We expect employment growth to drop into lower gear, at less than 2 percent, but the unemployment rate should remain steady, at about half of what it was during the Great Recession. In Texas, we added 319,000 nonfarm jobs in fiscal 2015, more than any other state except California. Our unemployment rate has fallen from an average of 5.3 percent in fiscal 2014 to just 4.4 percent in fiscal 2015, well below that of the U.S. Our state’s diverse economy puts us in a good place. The resilient restaurant industry is a great example. Sales tax collections from the “Eating and Drinking Places” category topped $2.8 billion in fiscal 2015, comprising nearly 10 percent of all sales tax collections for the state. This 9 percent increase from the previous fiscal year outpaced state sales tax collections, which increased by only 5.6 percent. Because of Texas’ low number of establishments relative to population, with only 1.48 per 1,000 people (putting it at the bottom of the ten most populous states), it ranks highest for sales per establishment: an average of $1.025 million in 2012. And you might be surprised to learn that the metro with the highest restaurant-establishment-to-population ratio in the state is Corpus Christi, with just over 1.7 establishments for every 1,000 residents. By comparison, the state of New York serves up 2.05 restaurants for every 1,000 people but only $757,000 in sales per establishment. Texas chefs are also getting noticed for the quality of their culinary creations. Three Texas cities recently ranked in Travel & Leisure’s top 20 “Best Cities for Foodies.” Houston’s burgers, brunch and specialty food shops earned it the #1 spot, while Austin ranked #12 and Dallas #17.

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You can’t mention food without including drink. This past November, my office’s Fiscal Notes publication reported on “sin taxes,” including those imposed on alcoholic beverages. Sin taxes tend to come up for legislative debate because of the revenue they generate. In fiscal 2015, Mixed Beverage Sales Tax revenues accounted for roughly $503.8 million. From fiscal 2014 to fiscal 2015, total collections for this tax rose by 81.7 percent, while Mixed Beverage Gross Receipts Tax declined by 26 percent. During the same time period, revenue allocation to cities from the Mixed Beverage Sales Tax increased by nearly 153 percent. In the next two years, we expect the growth in Texas’ real gross state product (GSP) and personal income to track U.S. growth rates pretty closely. Our GSP grew by 2.4 percent in 2015 and should do about the same in fiscal 2016 and 2017. Texas personal income rose about 4.8 percent in 2015, and we estimate similar growth rates over the next two years. As for state revenues, tax collections in the 2016-17 biennium should generate more than $93.1 billion, about 1.5 percent more than in the previous budget period. Our most recent budget was well below the state’s spending caps, and we anticipate no problem in meeting our obligations over the next two years. As the state’s chief financial officer, I’ll continue to monitor the Texas economy closely, and inform you of any significant changes. As always, you can stay up to date via our website, Twitter and Facebook accounts. Glenn Hegar is Texas Comptroller of Public Accounts. For more information on the Texas economy, please visit the Comptroller’s website at Comptroller.Texas.Gov

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TEX A S 3 60 Thirteen Teams Advance to

Texas ProStart Invitational State Finals

The competition was fierce at the first 2016 Texas ProStart Invitational regional competition held in Frisco January 30. Twenty-two high schools sent 35 teams, a total of 168 culinary and restaurant management students to compete. The top 13 teams, six culinary and seven management, advanced to compete at the Texas ProStart Invitational state finals in March for the chance to represent Texas at the National ProStart Invitational. Congratulations to the winning teams! Culinary

Management

1. Academy of Culinary Arts, Byron Nelson HS

1. Prosper HS

2. Frisco CTE Center

2. Academy of Culinary Arts, Byron Nelson HS

3. Mesquite HS

3. Royce City HS

4. Trimble Tech HS

4. Whitehouse HS

5. Royce City HS

5. Frisco CTE Center

6. North Mesquite HS

6. (tie) Mesquite HS, North Mesquite HS

The Texas ProStart Invitational is in its seventh year and is one of the largest of the state ProStart competitions in the country with more than 320 students competing in two regional competitions for a chance to represent Texas at the National ProStart Invitational. All schools competing are part of Texas ProStart, an industry-based culinary arts and hospitality program and curriculum. Culinary teams demonstrate knife skills, develop and price a three-course menu and then prepare those menu items in

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TE XAS 3 6 0

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1st Place Culinary: Bryon Nelson HS

1st Place Management: Prosper HS

2nd Place Culinary: Frisco CTE Center

2nd Place Management: Bryon Nelson HS

3rd Place Culinary: Mesquite HS

3rd Place Management: Royce City HS

4th Place Culinary: Trimble Tech HS

4th Place Management: Whitehouse HS

5th Place Culinary: Royce City HS

5th Place Management: Frisco CTE Center

6th Place Culinary: North Mesquite HS

6th Place Management: Mesquite HS & North Mesquite HS

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TEX A S 3 60 60 minutes. Judges evaluate creativity, plate presentation, taste, teamwork, professionalism, and safety and sanitation. Management teams develop and present a business proposal for a new restaurant concept that includes a defined concept, supporting menu and marketing plan. Teams prepare a comprehensive written proposal and a verbal presentation, and are tested on their critical thinking skills by reacting to potential management challenges. Thank you to our sponsors!

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TE XAS 3 6 0 Texas Restaurants Honored for

Outstanding Community Service Each year, the National Restaurant Association honors outstanding restaurants and restaurant owners across the nation for their charitable support and dedication to improving their local communities with the Restaurant Neighbor Award and Cornerstone Humanitarian Award. This year, the Texas Restaurant Neighbor Award winners are West End Pizza Company, Fredericksburg; P. Terry’s, Austin; and Which Wich Superior Sandwiches. Chad Houser, executive director and chef, Café Momentum, Dallas is the Texas Cornerstone Humanitarian Award winner. The Texas winners will compete with other state winners for the national award. Four national winners will receive $5,000 to support their charity or community project at awards ceremony in Washington, DC in April 2016. “Restaurants demonstrate an unwavering commitment to their communities in good times and bad. People turn to restaurants each day for sustenance, support and socialization – and restaurants give back to their communities, improving the quality of life for all they serve,” said Richie Jackson, Texas Restaurant Association CEO. “These restaurants are prime examples of the generosity and philanthropy Texas restaurants exhibit every day of the year in their communities.”

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2016 TEXAS RESTAURANT NEIGHBOR AWARD WINNERS West End Pizza Company’s owner, Janet Degenhardt was introduced to Wounded Warriors at Nebo, a ministry dedicated to offering gratitude and respite to wounded, injured and ill service members, their families and care providers, when her husband was deployed to Afghanistan. Upon his return, the couple decided to celebrate by giving back to those who support them and other military families. Pizza for a Purpose was born. This annual benefit features a pizza buffet, a raffle and T-shirts for sale and all proceeds are donated to Wounded Warriors at Nebo. West End Pizza donates the venue, food, t-shirts, advertising and solicits donations for the raffle. Their employees volunteer to visit other businesses to ask them to display the event flyer, donate to the raffle and help raise awareness about the event. Pizza for a Purpose has raised over $11,000 in just three years. Patrick and Kathy Terry, owners of P.Terry’s, a well-loved burger stand in Austin that has grown to include 12 locations, believe strongly in giving back to the city that has treated them so well. For the past five years, they’ve scheduled four ‘give back’ days each year when all proceeds for the day are donated to a local charity. In 2015 the charities included the Assistance League of Austin’s Operation School Bell, Caritas, Austin Diaper Bank and the Austin American Statesman’s Season for Caring. More than $500,000 has been donated to charities.

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TE XAS 3 6 0 Which Wich launched Project PB&J in 2014. Under the Project PB&J umbrella, all 400 locations sell peanut butter and jelly sandwiches instore. For every sandwich that is purchased, one sandwich is donated to a local cause and another is banked for the global fund to assist in larger scale scenarios where a need arises. The goal is to reach those in need with over one million PB&J sandwiches. In just two years, they’ve been able to feed those most in need in communities across the country, with more than 100,000 receiving the sustenance and comfort that a great PB&J sandwich provides. Which Wich provides the tools to successfully run the campaign and each franchisee chooses the local organizations they want to donate the PB&J sandwiches to.

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2016 TEXAS CORNERSTONE HUMANITARIAN AWARD WINNER The Cornerstone Humanitarian Award is award specifically to an individual, not a restaurant, for his or her personal commitment to community service. This year’s Texas winner, Chad Houser is the executive director and chef for Café Momentum, a 501(c) (3) restaurant and culinary training facility that transforms young people’s lives. Cafe Momentum provides a positive environment where at-risk youth that have spent time in juvenile justice facilities receive culinary, job and life-skills training, mentorship and support to help them achieve their full potential. In addition to significantly reducing recidivism, Café Momentum creates opportunities for long-term, sustainable employment for participants. Fifty interns, all directed to Café Momentum through Dallas County Youth Village, a court-ordered residency program for juvenile, male non-violent offenders at high risk for re-offending, work full-time, rotating through each area for 12-weeks to learn every component of running a restaurant. Houser knows that many in the program will not go on to work in the restaurant industry, but also believes the experience is invaluable. “The world would be a much better place if everyone had to work in a restaurant for a year,” he noted. “You learn how to network and build relationships with people.”

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FOR ADVERTISING INFORMATION CONTACT WENDY WOODLAND AT 512-457-4100 OR WWOODLAND@TRAMAIL.ORG


COMMUNIT Y NE W S

from back left: Chef Kent Rathbun, Chef John Tesar, Chef Jason Skinner, Chef Daniel Pittman; from front left: Chef Sharon Van Meter, Chef Janice Provost, Chef Nikky Phinyawatana photo courtesy of Ron Ruggless

GREATER DALLAS RESTAURANT ASSOCIATION LAUNCHES CULINARY ADVISORY COUNCIL The Greater Dallas Restaurant Association (GDRA) launched their newly formed Culinary Advisory Council at a Pop-Up dinner at 3015 at Trinity Groves on January 31, 2016, benefiting the Greater Dallas Restaurant Association and their educational efforts. The GDRA Culinary Advisory Council is a network of expert chefs, restauranteurs, and industry professionals who are committed to excellence in culinary education. The Council Members will share their individual expertise, knowledge and experience with our GDRA members to provide the resources needed to be even more successful in this creative and challenging industry. The Council will connect through an interactive forum on the GDRA website. The Pop-Up included a five-course, farm-to-table styled dinner of culinary and epicurean delights from some of Dallas’ top chefs prepared by 3015 at Trinity Groves’ Chef Sharon Van Meter, Asian Mint’s Chef Nikky Phinyawatana, Parigi’s Chef Janice Provost, Kent Rathbun Concepts Chef Kent Rathbun, LUCK’s Chef Daniel Pittman and Knife Dallas’ Chef John Tesar. Tickets are on sale now for this unique Pop-Up dinner experience. A sold-out crowd of 85 guests enjoyed a delectable menu, including items such as Panko Crusted Chicken Thighs, Ginger-Mushroom Glaze with Fermented Black Bean Fried Rice, a dish prepared by Kent Rathbun, one of the featured chefs. The Greater Dallas Restaurant Association thanks their event sponsor, FreshPoint. A special thank you is given to the participating chefs, 3015 at Trinity Groves, Glazer’s and The Time Group.

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COMMU N I T Y NEWS

GREATER HOUSTON RESTAURANT ASSOCIATION GOLDEN FORK AWARDS GALA The Annual Golden Fork Awards Gala was a magnificent event! We had a great time celebrating this year’s award winners: Pedro Garcia, Ricardo Molina, Cherie Busch, Laura Johnston, Russell and Monica Ybarra, The Gatlin Family and “People’s Choice” winner The Breakfast Klub. Memories of the event were captured throughout the evening. Guests walked the red carpet, laughed it up in the photo booth. This event will help the Greater Houston Restaurant Association carry out our primary mission of representing the business interest of our members, providing scholarships for students, and providing resources for our members to help grow their businesses. Many thanks to Sysco Houston our title sponsor along with all the award sponsors, vendor sponsors, in- lind sponsors, auction donors, presenters and volunteers who made Saturday night possible!

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TASTE OF THE TRIANGLE

Best Restaurant Winner Dat Mac Food Truck

SUPPORTING LOCAL EDUCATION The San Angelo chapter has sponsored the San Angelo Stock Show and Rodeo Championship CookOff since 2010. The Cook-Off raises money for the scholarship fund.

TRA member Bernay Sheffield of Zentner’s Daughter Steak House with Cook-Off chairman John Walter

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JUNE 26 –27, 2016

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FOR ADVERTISING INFORMATION CONTACT WENDY WOODLAND AT 512-457-4100 OR WWOODLAND@TRAMAIL.ORG


COMMUNIT Y NE W S

SAVE THE DATE! INDUSTRY LEADERS HONORED The annual SARA Awards Gala provides a venue to celebrate industry leaders and members while promoting a positive image of the foodservice industry. The 2016 event was the celebration of some fantastic honorees with over 300 people in attendance! Congratulations to Jon Lindskog of Cheesy Jane’s, Restaurateur of the Year; Jimmy Hasslocher of Frontier Enterprises, Industry Partner of the Year; Sherry Willis of Toast Inc, Volunteer of the Year; Glenn Rierson of Ace Mart Restaurant Supply, Education Partner of the Year; and Jesse Holguin of PepsiCo, Associate Partner of the Year. Each contributes so much to the success of the TRA, SARA and our industry as a whole. Recognition of each of these individuals was well-deserved and we are grateful for such wonderful members!

Tuesday, April 26, 2016 Hyatt Regency Hill Country Golf Club Shot Gun Start 12:30 PM

Proceeds benefit the SARA Scholarship Fund, the Texas Restaurant Association Education Foundation, Texas ProStart, and other deserving local culinary institutions and charities.

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A sold-out crowd attended the San Antonio Restaurant Association’s Educational Seminar featuring Jim Sullivan.

For advertising information contact Wendy Woodland at 512.457.4100 or wwoodland@tramail.org

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Delivering the Goods | Restaurantville Magazine Winter 2016  

TRA's digital magazine is emailed to over 6,000 foodservices professionals quarterly. The content highlights industry trends, best practices...

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