Washington Restaurant Magazine March 2012

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RESTAURANT

March 2012

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Inside

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Features

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Is employee turnover such a bad thing?

While you don’t want your business to become a revolving door, some turnover can be beneficial. Find out why.

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Workforce Outlook Restaurant industry job growth expected to outpace the overall economy for the 13th consecutive year.

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The shape of Washington’s restaurant workforce Take a look at Washington’s restaurant industry workforce, by the numbers. Where are we going, where have we been and how do we stack up with the rest of the country

Other stories

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WA S H I N GTO N

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Communications, Technology & Restaurants

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New briefs

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Sometimes it takes an innocent moment to realize the obvious

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Is there a pathway to adjourn on time?

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Seattle paid sick/safe leave mandate—Rulemaking begins

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Passage of the Health Care Reform legislation was merely the beginning

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Dragons at the Northwest Foodservice Show?

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Nationally, restaurant industry to outpace job growth, reach record sales in 2012

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ProStart: Your source for the employee talent of tomorrow, right now

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Calendar/New Members

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Marketplace

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Build a powerful business with vision and clear expectations

RESTAURANT

March 2012

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On the cover The restaurant industry is known for its diverse and broad workforce. This issue of Washington Restaurant Magazine takes a closer look at what that means.

2/24/2012 11:43:48 AM

March 2012 | 5

EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor Shawn Sullivan, Contributing Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Bret Stewart, Chair Center Twist Jim Rowe, Vice Chair Consolidated Restaurants Robert Bonina, Secretary/Treasurer Washington Athletic Club Steve Simmons, Past Chair S & S Hospitality, Inc. Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina VP Internal Operations Bob Decker Director of Membership Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.WRAhome.com

Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

Reproduction of articles appearing in Washington Restaurant Magazine are authorized for personal use only, with credit given to Washington Restaurant Magazine and/or the Washington Restaurant Association.

Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, its Board of Directors, staff or members.

Products and services advertised in Washington Restaurant Magazine are not necessarily endorsed by the WRA, and do not necessarily reflect the opinions of the WRA, its Board of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: The Silver Agency 109 North Tower, Ste. 200, Centralia, WA 98531 T 360.736.8065 F 360.330.7960 www.silveragency.com Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@WRAhome.com, phone: 800.225.7166. Readership: 6,310.

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Domo Arigato, Mr. Roboto: How restaurants in other countries are cutting labor costs

By Lex Nepomuceno, Executive Editor Rising price pressures from food, labor and everything else under the sun are making profitability for restaurants as elusive as Bigfoot or the chupacabra. In Washington, restaurateurs are hit particularly hard because of high minimum wage, unemployment insurance and workers’ compensation rates.

Food establishments are caught between a rock and a hard place because consumer price-sensitivities limit their ability to raise menu prices. Thus, entrepreneurs must find new ways to stay in business and even prosper.

Where do the needs of restaurant owners meet the desires of their customers?

Technology. “Nearly 4 in 10 consumers say they’d be likely to use an electronic ordering system and menus on tablet computers at table service restaurants,” according to the National Restaurant Association’s 2012 Industry Forecast.

Meanwhile, restaurateurs must find ways to manage their increasing labor costs and not compromise the customer experience.

The solution? Foodservice automation technologies such as self-service ordering methodologies and robots – yes, robots!

Think about it. Rising labor costs and food safety concerns can be abated through automation. Instead of fretting over minimum wage, restaurants can focus on the quality of food and the customer experience—and heaven forbid—turn a profit!

No, this is not just some über geek’s pontifications on a Philip K. Dick-inspired restaurant with replicant-powered wait staff resembling Rutger Hauer or Daryl Hannah. Robots in restaurants are a reality and are already being used in other parts of the world.

In Japan, the Kura sushi chain operates its 260-plus restaurants from three control centers. The New York Times reports: “Efficiency is paramount at Kura: absent are the traditional sushi chefs and their painstaking attention to detail. In their place are sushi-making robots and an emphasis on efficiency.

“Absent, too, are flocks of waiters. They have been largely replaced by conveyors belts that carry sushi to diners and remote managers…”

Consequently, Kura is able to offer sushi plates at less than $1.30 each—cheap by even American standards! The move toward robots and automation has allowed the sushi chain to stay in business despite Japan’s fickle dining environment.

In China, the Dalu Robot Restaurant “employs” eight full-time robots to make up its entire wait staff. At $6,000 per robot, the restaurant is able to almost completely serve its customers for less than $50,000—less than the total cost for some Seattle-based waiter for an entire year. Granted, some consumers may not like the idea of replacing a human waiter for a robot.

However, if the choice is closing the doors or making enough money to stay in business, all restaurateurs would choose the latter.

The bottom line is that if there were no job providers, there would be no jobs.

Rising food prices, higher wages and increasing tax burdens ultimately will force the entrepreneur’s hand. Washington restaurants already employ smaller staffs than the rest of the country because of higher labors costs. Thanks to robots and automation technologies, enterprising and/or struggling businesses could now have more options to stay in business and dare we say it – prosper.

Primary Source of Information | News Briefs WRA members speak out for industry on minimum wage A big thanks to three WRA members who testified in early February during a House Labor Committee hearing on four minimum wage-related bills. These members clearly articulated how the state’s climbing minimum wage has impacted their businesses. We applaud Karissa Bresheare, owner of the Gourmet Latte coffee stands throughout Western Washington; Dan Sutton of Cottage Inn in Wenatchee; and Travis Rosenthal, owner of Tango in Seattle! The WRA also is appreciative of Rep. Cary Condotta, sponsor of the bills, and of Rep. Mike Sells (D-Everett), the chair of the House Labor Committee, who agreed to hold this hearing. Although these bills will not make it through the legislative process, we are pleased that this topic is being discussed for the first time in many years. The WRA is committed to ensuring this issue remains visible moving forward.

Recruiting to get tougher for restaurants U.S. restaurant operators say recruitment and retention of employees will be more challenging this year now that the economy and job growth are improving, according to new findings from the National Restaurant Association. Thirtytwo percent of fine dining and quick service operators and 27 percent of family-dining, casual-dining and fast-casual operators agree that employee recruiting and retention will be more challenging this year than it was in 2011.

For the full article, go to http://wra.cc/0312a.

Dispelling the myths around liquor pricing Washington has the highest liquor costs in the country, largely due to the state’s liquor tax of $24/gallon–also the highest in the country. The I-1183 does not change the tax structure, so adding up the total of seven spirit taxes means restaurants will continue to pay 13.7% on the sale price and $2.44/liter, while the general public will pay 20.5% and $3.77/liter). The WRA has developed the following presentation so that you can understand what the state requires you to pay – through spirit taxes, and what is negotiable. Read the rest of the story at http://wra.cc/0312b.

List of spirits distributor applicants released The WRA has acquired, through a public records request, a list of businesses that have applied for a spirits distributor license. Currently, approximately 85 percent of brands are carried exclusively through two distributors. The WRA is pleased to see 16 applicants to distribute spirits. Read the full article at http://wra.cc/0312c.

IRS answers questions about new 1099-K form The Internal Revenue Service has pulled back from a plan that would have required businesses to reconcile the total receipts they report on their business income tax forms with the amounts that third parties, such as credit card companies, report paying to merchants to reconcile merchant-card transactions. For more information, go to http://wra. cc/0312d.

Northwest Foodservice Show promises can’t-miss attractions On April 30 at 2:00 pm watch the 2012 The Northwest Seafood Challenge Cook Off, Oregon vs. Washington.

State pride is on the line! This segment is a knock-down, drag-out culinary battle for bragging rights and the privilege of wearing the “Best Seafood Dish” crown. Come and see who will reign supreme. This year the competition is hosted by the Oregon Dungeness Crab Commission, and judged by King 5’s Lindsey Johnson.

Click here to learn more. Access to the Sysco Chef Demonstration Stage is included as part of your FREE online attendee registration.

Register to attend today! http:// nwfoodserviceshow.com/register.php

March 2012 | 7

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Industry Outlook | WRA President & CEO

Sometimes it takes an innocent moment to realize the obvious

D

uring our last meeting, a member of our board of directors suggested that we get the meeting warmed up by having each board member briefly discuss what they anticipated to be the greatest challenge for their business in 2012.

I expected a wide variety of answers, considering the diversity of the 27-member board, which runs the gamut of east to west, full- to quick-service, independent to franchisee, espresso stand to high end steakhouse, very conservative to very liberal to completely non-political, etc.

I was floored when the majority of board members shared exactly the same answer: the combination of sky-rocketing food costs, labor costs (the minimum wage jump/paid sick leave in Seattle/preparing for implementation of the federal health care mandate) and customers’ continued reluctance on pricepoint was breaking the existing restaurant model, and each of them was struggling with how to adapt.

This isn’t the first time that Washington restaurant operators have been forced to redraw the formula of their operations.

The traditional model that still exists in most other states (33% food, 33% labor and 30% everything else) was wiped out in Washington in 1998 when the minimum wage initiative passed, leaving us with the highest minimum wage in the country, without any exceptions (tips as wages, teen wage or training wage). It took about four years while operators tried every efficiency/operational and pricing strategy they could think of until a new model emerged. For much of the past decade, Washington restaurants averaged a model of 36% labor, 30% food and 30% everything else, with about three fewer employees per restaurant than the national average. This model also included annual menu price increases and lower all-around kitchen costs.

Anthony Anton, president and CEO

The new model lasted almost eight years and was buoyed by remarkably flat food prices and a free-spending public that was less concerned with price points.

The data and anecdotes point to a different time, and like 1999, a new model will emerge by the mid-point of this decade.

The question is what will it look like? Industry analysts are suggesting everything from more adoption of technology, to the complete elimination of all front-end staff outside of servers, the continued explosion of the small footprint restaurants, small plates replacing entrées, more rapid proliferation of “to-go” full-service, kiosks in QSR, and so on and so on.

The answer is that no one really knows for sure what the new model will look like, other than the one used in 2009, is unlikely to be financially viable in 2014.

The great Wayne Gretzky often said what separated him from the average hockey player is that he went to where the puck was going, not where it was at the time.

Staying aware of the emerging trends that will shape the new restaurant model is ultimately what will help separate you from the 50% of restaurants that are open today but will be out of business in 2017.

That is what the Mega Trend editions of the Washington Restaurant Magazine are all about—helping you get ideas and stay informed of where labor, food, occupancy and utility management are headed, so you can get to where the puck is headed. And hopefully, when combined with the other informational tools the WRA provides (the Consulting Network, WRAhome.com, Trendmapper, Hot Off the Grill), we really truly service you as your primary source of information. Yes, the restaurant model you’re accustomed to may be changing rapidly, but so is the WRA. We’re prepared to guide you through this new era of restaurant operation in Washington state, whatever it may bring.

March 2012 | 9

POLITICAL REPRESENTATION

Comprehensive guidebook to liquor privatization heading your way

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Have questions about implementing the provisions of Initiative 1183 in your operation? Watch your mailbox in the next few weeks for “Understanding Liquor Privatization: A Licensee’s Guide to Implementing I-1183.” This publication is designed to guide liquor licensees through the privatization process with timelines, pricing information, explanations of how the new system will function and a detailed breakdown of how to purchase liquor from retailers, distributors and distilleries or manufacturers. This is your user’s manual to Washington state’s new and improve system of liquor sales and distribution.

I-11 83

Is there a pathway to adjourn on time?

By Bruce Beckett, WRA director of government affairs As the Legislature enters the final weeks of what has been essentially a 90-day session, new data is emerging that might provide a path toward a budget resolution by the scheduled March 8 adjournment date.

To recap—in November, Gov. Gregoire called the Legislature into special session in hopes of addressing the nearly $ 2 billion shortfall in revenues in the state budget. The budget, which was finally adopted at the end of May (after yet another special session), continued to be based on economic forecasts that repeatedly failed to predict the impact of the recession on tax collections.

Washington state relies heavily on sales tax revenue, and as consumer confidence continued to deteriorate, sales tax collections followed suit. During the December special session, the Legislature made about $500 million in adjustments to the budget, leaving $1.5 billion to be resolved in their regular session.

During this period, the governor, along with many lawmakers, began advocating for a temporary half-cent increase in the state sales tax, as a means to raise about $500 million per year. Others have promoted elimination of tax preferences.

The prospect of a tax increase proposal ultimately going to the voters seemed highly likely.

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Maybe (emphasis on maybe) the tide has turned.

For the first time in four years, the Legislature received a positive revenue forecast. In mid-February, the non-partisan economic forecast council estimated that revenues will exceed the forecast by $96 million. Additionally, the forecast for caseloads (the number of people receiving state services through DSHS and other programs) indicates a cost savings of nearly $340 million. Combined, the forecast is $430 million to the positive, nearly the amount that some wanted to put to the voters for new taxes.

While helpful, lawmakers still face the daunting task of finding $ 1 billion in savings, fund transfers or new revenues to balance the budget. This will be extremely difficult for majority Democrats, who face ardent opposition to more reductions from labor unions, state workers and social service groups.

Long term outlook remains difficult

Although the revenue forecast may help lawmakers fashion a balanced budget for the remainder of this biennium, the data shows that lawmakers may enter 2013-2015 biennium with another $2 billion shortfall. This is because the ongoing state expenses have been paid, in part, over the last four years using one-time revenues (e.g. – federal stimulus money and fund transfers). Hence, state expenses have not been fully balanced against anticipated revenues.

The Forecast Council is very cautious about the future. They also reported that:

Unemployment continues to remain very high and is

not predicted to return to pre-recession levels until late in 2014.

Consumer confidence in Washington state is very low.

Both of these factors lead to lower consumer spending, which Washington’s tax system depends heavily upon.

Our conclusion? The WRA and the business community must continue working with lawmakers and independent research groups to assist in finding options to put Washington’s budget on a sustainable trajectory.

2012 Legislative session going well for hospitality sector

The first five weeks of 60-day sessions are very difficult.

Legislators typically introduce the same number of bills at the outset of these short sessions as they might during a long session. Accordingly, the volume of bills in hearings and in consideration on the floor of each chamber is enormous.

However, once the first series of major cutoffs occurs, focus can shift to the major issues needing resolution.

The WRA is very pleased with the outcomes of the session, thus far. Numerous bills failed to be moved along that could have adversely impacted the hospitality sector. Included among the bills that died are: Restrictions on the use of packaging and bans on plastic bags New requirements on workers’ compensation claims that would have added cost and time for claims management Imposition of labor agreements on current and new vendors at Sea-Tac Airport Additionally, the WRA worked closely with the Department of Revenue (DOR) to develop a bill granting the authority to collect spirit taxes. Of significant importance to the WRA was the definition of spirit taxes and where they are collected.

Finally, the WRA remains engaged in both legislative and administrative processes implementing I-1183. 

Seattle paid sick/safe leave mandate—Rulemaking begins

By Josh McDonald, WRA state and local government affairs Last September, the Seattle City Council chose, by an 8-1 vote, to join a few other cities (San Francisco, Washington D.C.) and one state (Connecticut) in mandating that every employer pay for and provide five, seven or nine days of paid sick leave, dependent on the size of employer. The WRA’s Seattle Restaurant Alliance (SRA), was active in the debate and successful in achieving several changes to the ordinance before its final passage.

Although the SRA would have preferred not to have an expensive new mandate that assumes every employer can simply afford this benefit, some of the changes to the ordinance were positive. These changes included removing private right-of-action language, as well as retaliation language that would have presumed an employer guilty until proven innocent. This gives employers some protection from frivolous lawsuits or from being repeatedly brought before the Seattle Office of Civil Rights.

Another change to the ordinance, unique among all paid sick/safe leave ordinances throughout the country, is the specific recognition of the restaurant industry’s practice of “shift swapping.” The ordinance permits this is as a way for employees to use their accrued sick/safe leave. If mutually agreed upon between the employer and employee, an employee can swap a shift or set of hours with another employee, and those swapped hours count toward his or her paid sick leave bank. This achieves the outcome of protecting a restaurant operator from increased labor costs while also allowing employees to stay home without loss of pay, if needed.

Seattle’s new sick/safe leave mandate goes into effect Sept.

1, 2012. In anticipation of the effective date, the Seattle Office of Civil Rights has assembled a group of Seattle business representatives to begin the process of solidifying the rules by which the sick/safe mandated benefit will work in practice. This work is extremely important as many terms within the ordinance have yet to be fully defined. As well, many parts of the ordinance need guiding rules, helping employers avoid being in violation and giving employees a consistent understanding of their rights and privileges under the new law.

The SRA is an active participant in this rulemaking process and will be a strong advocate for paid sick/safe leave rules that are as consistent, simplistic and practical as possible.

There are many parts of the ordinance that need significant clarity through rulemaking, so employers throughout Seattle can begin to follow the new law without fear of violation on September 1.

The WRA will be putting together a section on our website that details all things Seattle paid sick/safe leave mandate, including what is happening within the rulemaking process and suggestions on ways to prepare your business for the upcoming requirement.

As always we welcome your input. Josh McDonald, our local GA representative for the Seattle Restaurant Alliance, can be reached at joshm@wrahome.com. 

March 2012 | 11

Passage of the Health Care Reform legislation was merely the beginning

By National Restaurant Association

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s expected, in 2011, the U.S. Supreme Court agreed to hear arguments on the constitutionality of the individual mandate and the severability of the individual mandate from the rest of the health care law’s requirements. Oral arguments are scheduled for March 26-28, 2012 with a decision expected by June 30, 2012.

The National Restaurant Association joined those challenging the constitutionality of the health care law with its own amicus brief before the U.S. Supreme Court filed on January 6, 2012. We argue that if the individual mandate is found unconstitutional, the whole law should be repealed. Our brief highlights the unique characteristics of our workforce and the dramatic impact the employer mandate would have on the restaurant and food-service industry.

...the definition of full-time employees must be set before any employer mandate is put in place.

In Congress, we continue to advocate for full repeal of the law and the employer mandate in particular.

While full repeal passed the House, it was not taken up by the Senate. However, together with our business coalition partners, early in 2011, we successfully advocated for repeal of the health care law’s expanded 1099 reporting requirements that would have made virtually every business-to-business transaction reportable to the IRS. To handle the numerous regulations already being proposed, we co-founded the Employers for Flexibility in Health Care coalition with other industries that utilize high proportions of part-time and seasonal workers to advocate for our unique workforce characteristics on the law’s implementation.

NRA also filed joint comments with 48 State Restaurant Associations in 2011 and more regulations are expected in 2012. We reiterated that the definition of full-time employees must be set before any employer mandate is put in place. We also addressed the affordability test, a proposed employer safe harbor based on W-2 wages, the minimum value standard, proposed transition relief, and the need for a verification, appeals, and penalty assessment processes before any penalties are imposed. 

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2012 Northwest Foodservice Show to celebrate 50 years of showcasing the industry’s best resources

By Shawn Sullivan, contributing editor

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mplementation of Initiative 1183 is just around the corner, and restaurants throughout the state are asking where they can purchase alcohol.

One unexpected source for the answer to this question is the 2012 Northwest Foodservice Show (NWFS), which is being held in Seattle at the Washington State Convention Center on April 29 and 30.

How could attending the show help identify liquor source options for your restaurant? Distilleries and distributors will offer NWFS attendees the opportunity to sample alcohol available for restaurants. Restaurateurs can discuss their supply needs with purveyors, while trying some of the more unique and tasty craft spirits and liquors.

Alcohol is not the only reason to attend the Pacific Northwest’s restaurant industry event of the year. The NWFS has more than 400 vendor booths, including almost everything an owner, operator, manager or purchaser could need or use in their business. If you want it, someone at the show can provide it!

Restaurateurs can also take advantage of a vast array of free seminars on important industry-specific issues, or optional training opportunities (some training sessions require additional fees). Two of the fee-based sessions are ServSafe® certifications, which provide food safety or alcohol service training. The ServSafe alcohol program also satisfies the requirements of the Washington State Liquor Control Board.

And, let’s not forget the inspiring chef demonstration stage, where events including the Washington vs. Oregon Northwest Seafood Challenge Cook Off take place. Watch as the chefs from both states compete in a no-holdsbarred knockout battle, where only one state will experience the sweet taste of victory. The winner also will have the privilege of wearing the “Best Seafood Dish” crown. Come out and cheer on your state. See which state will reign supreme in this seafood challenge cook off.

Featured on the chef demonstration stage are Chef Amadeus from The Food Network’s Extreme Chef, and several local celebrity chefs. Watch as they take over the stage to create some of the most mouthwatering and sensational recipes using ingredients native to the Pacific Northwest. Yes, you can incorporate everything you see on the chef demonstration stage into your menu, but only if you attend the NWFS. The NWFS kicks things off in 2012 with a traditional Chinese dragon dance, celebrating the show’s 50th anniversary and the Chinese Year of the Dragon. The dancers will be led by Sifu David Leong, who has appeared in several movies and worked with Steven Seagal, Jean Claude Van Damme and Jackie Chan as an actor and stunt choreographer. He continues his family’s tradition of practicing and teaching the Shaolin Hung Kuen Kung Fu, and is one of very few traditional Chinese Kung Fu teachers in the United States.

Last but surely not least, be sure to check out all of the latest products and services. What new item will emerge to help you boost sales, or streamline your operation? By attending the NWFS in April, you won’t have to wonder anymore. Visit the New Product Showcase at the show, or for a sneak peek at what will be featured there, visit our Facebook page at www.facebook.com/nwfoodserviceshow. com.

Attendee registration for the 2012 NWFS is free until April 15, so visit www.nwfoodserviceshow.com to sign up.

All restaurant industry professionals are welcome. Onsite registration is $25. For more details regarding the NWFS, its programs, training or products, please visit www. nwfoodserviceshow.com. 

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Is employee turnover

By Jack Goldberg, WRA consultant

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erhaps employee turnover is not as bad as we think. Maybe, just maybe, some turnover is good.

I recently attended a seminar on employee morale. The basic premise was that employees who are “happy” are better workers; they are typically more productive and stay in their jobs for a longer period of time. It seems that the basic measure of success or failure had to do with employee turnover. The implication being that if employees are unhappy, they leave. If they are happy, they stay. As business leaders, we are told that turnover is a measurement of failure and an indication that something needs to be fixed.

But, we know that many times this premise doesn’t hold up.

Employees leave for a whole host of reasons – sometimes for reasons that have nothing to do with the employer and/ or the employees’ “happiness”.

Truth be told, turnover can be an indication that something is wrong, and of course, it is expensive. Some say turnover costs between 10 and 20 times the employee’s weekly wage.

However let’s balance out the negatives with the potential benefits. It can be difficult losing people, particularly people in key positions. There are though, some good things that can happen when you bring in a new employee.

For example:

New

ideas.

The new person may be able to bring new ideas, fresh thoughts, and a different way of looking at things.

Diverse

viewpoints. Sometimes, over

time, companies can become homogenous - same age groups, same interests, same habits, etc. A new person can “mix it up” a bit, even unintentionally bringing a new perspective to the group.

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Increased

productivity.

This seems counterintuitive, but oftentimes once the new employee learns the job, he or she actually performs better than the employee who left. The prior employee may have become complacent or just continued to repeat poor work habits.

such a bad thing?

New

customers.

New

skills.

Depending on the type of position, sometimes customers want to “follow” the employee to his or her new company.

A very common phrase from a new employee is “why do you do it this way?”

Oftentimes the new employee brings new skills and experiences that help us do it better.

Competitive

salary.

Usually when we hire new people, we have to reexamine and assess the salary level. Sometimes, though not always, we find that we can get the job done for less. Over time, salaries can creep up beyond the “market rate.”

Upgrades. Most businesses have “A” players

and “B” players. Turnover gives us the opportunity to try and hire “A” players.

So, yes, employee turnover can be disruptive and suggestive of problems. But, it can also create opportunities— opportunities that can create real value for a company.

Hiring the right person for the job can be difficult. If you need help, call us.  Jack Goldberg is president of Personnel Management Systems. He is a member of the WRA Consulting Network and specializes in human resources management. To learn more about how you can benefit from Jack’s expertise, contact the WRA at 800.225.7166, and ask for the Consulting Network.

Industry

knowledge.

Turnover sometimes allows us to hire people from our competitors or related industries. Oftentimes these new employees can be a great resource for industry knowledge and trends.

Turnover gives us the opportunity to try and hire “A” players.

March 2012 | 15

2012

Workforce Outlook Restaurant industry job growth expected to outpace the overall economy for the 13th consecutive year.

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A

fter two Total Restaurant-and-Foodservice Employment consecutive 14.3 million 15 years of job 12.9 million 11.4 million losses—and only 12 the third total 9 year on record— 6 the restaurant 3 industry 0 rebounded 2002 2012 2022 Source: National Restaurant Association * Projected 2012* 2022* with a solid employment gain in 2011. Eatingand drinking places, which represent 0.5 percent declines in 2009 and 2010, approximately three-fourths of the respectively. total restaurant-and-foodservice workforce, added jobs at a 1.9 percent In comparison, total U.S. employment rate in 2011. The healthy 2011 gain grew at a 1.0 percent rate in 2011, came on the heels of 2.1 percent and nearly a full percentage point below

Restaurant Job Growth Set to Outpace Overall Economy for 13th Straight Year Annual job growth — eating-and-drinking places versus total U.S. employment

3 2 1 0 -1 -2 -3 -4 -5

2.3%

1.9% 1.0%

1.3%

0.1% -0.6%

-0.8%

-0.5%

-2.1%

2008

-4.4%

2009

Total U.S. Employment

2010

2011

2012

Eating-and Drinking Place Employment

Source: Bureau of Labor Statistics, National Restaurant Association * Projected

the gain in eating-and-drinking place jobs. Moreover, the national job growth followed three years of more significant jobs losses: -0.6 percent in 2008, -4.4 percent in 2009, and -0.8 percent in 2010.

Within the industry, job growth was broad-based in 2011, as the fullservice, quickservice, and snack-and nonalcoholicbeverage-bar segments all added jobs at rates above the overall economy.

No Lost Decade for the Restaurant Industry The restaurant industry’s 2011 performance marked the 12th consecutive year in which job growth outpaced the overall economy.

Indeed, one only has to look at recent history to see that the restaurant industry is an engine of job growth for the U.S. economy, even when many other industries are shedding jobs.

During the challenging economic period of the last 11 years that included two recessions, job growth in the U.S. economy stagnated. In fact, excluding eating-and drinking places, there were 1.8 million fewer private-sector jobs in the economy in December 2011 than there were in January 2000 — a decline of 1.8 percent.

In contrast, eating-and-drinking places added 1.5 million jobs during the same period, which represented an increase of nearly 19 percent. This substantial growth occurred despite back-to-back job losses in 2009 and 2010, when the restaurant industry was negatively impacted by the recession.

Industry Jobs to Drive the Recovery The restaurant industry not only provided much-needed job growth during the sluggish last decade, it March 2012 | 17

also is poised to post steady growth well into the future. The Association expects eating-and-drinking places to add jobs at a 2.3 percent rate in 2012, a full percentage point above the projected 1.3 percent gain in total U.S. employment.

In addition, eating-and-drinking places are expected to gain back all of the jobs lost during the recession by early 2012, while the overall economy likely won’t be back to its pre-recession employment level until 2014.

Steady Job Growth Ahead On a larger scale, the broadly defined

Restaurant Job Growth is Projected to Outpace Labor Force in Next 10 Years

restaurant-and foodservice industry is projected to provide 12.9 million jobs in 2012, which represents nearly 10 percent of the total U.S. workforce.

Looking ahead, the Association expects the restaurant-andfoodservice industry to employ 14.3 million individuals by 2022, an increase of 1.4 million jobs over the 10-year period. On an occupational level, the strongest gains in both the number of positions and percent increase are projected to be in positions that combine food preparation and service.

These positions are expected to grow by 409,000 between 2012 and 2022 for an increase of nearly 15 percent.

Projected growth in labor indicators for 2012 to 2022 12

11%

10

8%

8

6%

6 4 2 0

Total Restaurant Total U.S. 16-to-24 and-Foodservice Labor Force Year-old Employment Labor Force

Source: National Restaurant Association

Restaurant Workforce Expected to Approach 14.3 Million by 2022 Growth in restaurant-industry employment by occupation, 2012 to 2022

––– Employment Change, 2012–2022 ––– 2012 Employment

2022 Employment

Jobs Added

Total % Change

Avg. Annual % Change

12,916,000

14,279,000

1,363,000

10.6%

1.0%

343,000

371,000

28,000

8.2%

0.8%

Food-Preparation-and-Serving-Related Occupations

11,783,000

13,106,000

1,323,000

11.2%

1.1%

Supervisors, food-preparation and -serving workers

961,000

1,078,000

117,000

12.2%

1.2%

Chefs and head cooks

111,000

123,000

12,000

10.8%

1.0%

First-line supervisors/managers of food-preparation and -serving workers

850,000

955,000

105,000

12.4%

1.2%

Cooks and food-preparation workers

3,014,000

3,300,000

286,000

9.5%

0.9%

Cooks

2,102,000

2,305,000

203,000

9.7%

0.9%

Cooks, fast food

577,000

639,000

62,000

10.7%

1.0%

Cooks, institution and cafeteria

398,000

437,000

39,000

9.8%

0.9%

TOTAL RESTAURANT INDUSTRY EMPLOYMENT Foodservice Managers

Cooks, private household

5,000

5,000

0

0.0%

0.0%

Cooks, restaurant

932,000

1,028,000

96,000

10.3%

1.0%

Cooks, short order

172,000

176,000

4,000

2.3%

0.2%

Cooks, all other

18,000

20,000

2,000

11.1%

1.1%

Food-preparation workers

912,000

995,000

83,000

9.1%

0.9%

6,445,000

7,243,000

798,000

12.4%

1.2%

517,000

567,000

50,000

9.7%

0.9%

Fast-food and counter workers

3,312,000

3,793,000

481,000

14.5%

1.4%

Combined food-preparation and -serving workers, including fast food

2,776,000

3,185,000

409,000

14.7%

1.4%

536,000

608,000

72,000

13.4%

1.3%

2,425,000

2,670,000

245,000

10.1%

1.0%

Food-and-beverage-serving workers Bartenders

Counter attendants, cafeteria, food concession, and coffee shop Waiters and waitresses Food servers, nonrestaurant

191,000

213,000

22,000

11.5%

1.1%

Other food-preparation and -serving-related workers

1,363,000

1,485,000

122,000

9.0%

0.9%

Dining room and cafeteria attendants and bartender helpers

426,000

458,000

32,000

7.5%

0.7%

Dishwashers

532,000

592,000

60,000

11.3%

1.1%

Hosts and hostesses, restaurant, lounge, and coffee shop

354,000

380,000

26,000

7.3%

0.7%

All other food-preparation and -serving-related workers

51,000

55,000

4,000

7.8%

0.8%

Other Eating-and-Drinking Place Occupations*

790,000

802,000

12,000

1.5%

0.2%

18 | www.WRAhome.com

*Includes operational, business, financial, entertainment, sales, administrative and transportation occupations Source: National Restaurant Association projections, based on historical data from the Bureau of Labor Statistics

In addition, the restaurant industry is expected to create 245,000 additional server positions over the next decade, a 10 percent increase over the current employment level.

Supervisory and management positions also are expected to register gains over the next 10 years. The number of foodservice managers is projected to increase 8 percent between 2012 and 2022, while the number of first-line supervisors/ managers of food-preparation and -serving workers is expected to grow by 12 percent.

Southern and WesternStates to Set the Pace States in the southern and western regions of the United States are expected to drive much of the industry’s job growth in the coming years. Texas is projected to set the pace with total restaurant-andfoodservice job growth of 17.1 percent between 2012 and 2022, followed by Arizona (16.4 percent), Florida (15.8 percent) and North Dakota (15.6 percent).

In terms of total jobs added, Texas once again tops the list with a projected 174,500 industry jobs added between 2012 and 2022. California’s restaurant industry is projected to add 145,900 jobs during the next 10 years, while restaurants in Florida are expected to add 132,900 jobs.

Labor Challenges Poised to Heat Up In the business environment of the last few years, labor shortage wasn’t top of mind for most restaurant operators. Amid elevated food and energy costs and a persistently high unemployment rate, recruiting and retaining employees typically wasn’t the most-pressing issue for operators.

Indeed, only 6 percent of respondents to the National Restaurant Association’s December 2011 Restaurant Industry Tracking Survey said recruiting and retaining employees is the top challenge currently facing their business, well below those who cited the economy (30 percent), food costs (17 percent),

building and maintaining sales volume (14 percent) or government (8 percent). Flash back five years and the story was quite different — 31 percent of restaurant operators said recruiting and retaining employees was their top operational challenge.

In the Association’s 2011 Restaurant Trends Survey, restaurant operators were asked if recruiting and retaining employees posed a greater difficulty for them in 2011 than it did in 2010.

Fullservice operators were more likely to say it was less of a challenge for them in 2011, while quickservice and fast-casual operators were more likely to report it as a greater challenge.

Looking forward to 2012, many restaurant operators across the major segments expect recruiting and retaining employees to become a somewhat bigger obstacle. Thirtytwo percent of both fine-dining and quickservice operators expect recruiting and retaining employees to be more challenging in 2012 than it was in 2011, while 27 percent of family-dining, casual-dining and fastcasual operators reported similarly. A smaller proportion in each of the five segments expects labor to be less of a challenge for them in 2012.

Finding employees isn’t a widespread problem today, but it will likely grow increasingly difficult as the economy continues to improve and the labor market tightens. The question for business owners then will again become where to find employees, particularly if the recent trends in labor-force participation don’t turn around.

Between 2000 and 2011, the laborforce participation rate among 16 to 19 year olds plunged from 52 percent to 34 percent — the lowest level since recordkeeping began in 1948. Although the drop was not as precipitous among 20 to 24 year olds, their labor-force participation rate also declined over the last 11 years, from 78 percent in 2000 to 71 percent in 2011. As a result, there were more than 1.5 million fewer 16 to 24 year olds in the labor force in

Restaurants Offer Ladder to Success In addition to providing nearly 13 million job opportunities from entry-level to management positions, the restaurant industry also gives individuals of all backgrounds the chance to become business owners.

In fact, 80 percent of restaurant owners said they started out as hourly employees in the restaurant industry, according to the Association’s 2009 “Who Is the American Restaurateur?”

Survey.

U.S. Census Bureau data shows that growth in restaurant ownership among minorities and women outpaced growth in the overall restaurant industry during the last 10 years.

Between 1997 and 2007 (the most recent year available), the number of black- or African-American-owned restaurant businesses soared 188 percent, more than five times the rate of growth in the overall number of restaurant businesses (36 percent).

80%

Increase in The number of Hispanic Hispanic-owned owned restaurant businesses restaurant jumped 80 percent businesses during the same 1997-2007 10-year period, while Asian-owned restaurants increased 60 percent. The number of Increase women restaurant in women owners also grew restaurant sharply — owners increasing 1997-2007 50 percent between 1997 and 2007, well above the 36 percent increase in Restaurant the number owners who of overall said they restaurant started out businesses. as hourly employees

50%

80%

2011 than there were 11 years earlier, a development that cut into the restaurant industry’s prime labor pool.

Labor-force participation among 16 to 24 year olds is expected to improve somewhat as more jobs become available, but it will likely not get back to 2000 levels any time soon. In contrast, the labor-force participation rate among adults aged 55 and older rose from 32 percent in 2000 to 40 percent in 2011, an upward trend that is expected to continue well into the future.

These labor-force trends are already impacting the distribution of the restaurant industry’s workforce. In 2010, 16 to 24 year olds worked in 38 percent of foodservice jobs, down from 42 percent in 2000. During the same 10-year period, the proportion of foodservice jobs held by adults aged 55 and older rose from 8 percent to nearly 10 percent.

Looking forward, the Association projects total restaurant-andfoodservice employment to grow 11 percent in the next 10 years; the 16-to-24-year-old labor force is only expected to grow 6 percent.

As a result, now is a good time for restaurant operators to focus on expanding their labor pool, so they will be ahead of the curve when the economy recovers and the pool becomes shallower. 

Labor Challenges Expected to Ramp Up in 2012 Restaurant operators’ outlook for recruiting and retaining employees in 2012

35 30 25 20 15 10 5 0

Family Dining

Fine Dining

More Challenging in 2012

Quickservice

Fast Casual

Less Challenging in 2012

Source: National Restaurant Association, Restaurant Trends Survey, 2011

Labor-Force Participation Rate Among 16 to 24 Year Olds Fell to a Record Low Labor force participation rate among 16 to 24 year olds 80 70 60

65.8% 64.5% 63.3%

61.6% 61.1% 60.8% 60.6% 59.4% 58.8%

56.9% 55.2% 55.0%

50 2000

20 | www.WRAhome.com

Casual Dining

2001

2002

2003

2004

2005

Source: Bureau of Labor Statistics

2006

2007

2008

2009

2010

2011

Washington’s Restaurant Industry Workforce Second largest private sector employer in the state Over the past year, Washington state employment has been slowly recovering, with an increase of 6,300 positions, or 3.3 percent, year over year.

200000

199400

199000 198000 197000 196000 195000 194000 193000 192000

193100

194000 193500

194400 193500

196900

196100 195900195800 195700 195100

193600

191000 190000 Nov10

Dec- Jan-11 Feb10 11

Mar- Apr-11 May- Jun-11 Jul-11 Aug11 11 11

Sep11

Oct11

Nov11

Industry of Diversity

Washington state ESD seasonally adjusted, NAIC 722; November.

Washington’s restaurant industry*

30.9% 25% 23%

Doing more with less

of are minority owned

of are women owned

Despite employment gains, Washington

state restaurants still employs three fewer workers per location than the national average.

are Asian owned

* http://www.census.gov/econ/sbo/; 2007 Washington Data set

Industry of Opportunity Restaurant industry—ladder of opportunity Position

Average Starting/ Base

Regional Manager

$85,798

General / Store Manager

$49,405

Kitchen Manager/ Chef

$36,400

Shift Supervisor (hourly) Entry Level Crew Member (hourly)

$11.32 Minimum wage

2010 Compensation, Benefits & Menu Survey

March 2012 | 21

Nationally, restaurant industry to outpace job growth, reach record sales in 2012

By Restaurant Association Staff

D

espite sluggish recovery by the nation’s economy, the restaurant industry is projected to expand in 2012, according to the National Restaurant Association. While the industry remains in a modest growth environment, economic indicators are pointing in the right direction for opportunity and success.

Total restaurant industry sales are expected to reach a record high of $632 billion in 2012 – a 3.5 percent increase over 2011, or 0.8 percent when adjusted for inflation, according to the Association’s 2012 Restaurant Industry Forecast.

In addition, the restaurant industry will continue to fuel U.S. employment in the year ahead as the nation’s second largest private sector employer. Overall restaurant industry employment will reach 12.9 million in 2012.

However, opportunities are also present for operators to be successful by understanding and leveraging consumer trends to attract new guests and make current ones come back. The good news is, there is substantial pent-up demand for restaurant services, with 2 out of 5 consumers saying they are not using restaurant as often as they would like. With the right incentives, that demand can translate into sales.

Giving consumers what they want will be crucial for restaurant operators in 2012. As the recession has caused 8 out of 10 consumers to cut back on spending to some degree, it is more important than ever for operators to nudge those guests into patronizing their restaurants.

The 2012 Restaurant Industry Forecast details economic, workforce, operational and consumer macro-trends that affect the industry, and how operators can leverage those trends to build business and guest satisfaction. A free resource to state restaurant association members, the report also provides national, regional and state sales and employment data. 

“As our nation slowly recovers from the economic downturn, restaurants continue to be a vital part of American lifestyles and our nation’s economy,” said Dawn Sweeney, president and CEO of the National Restaurant Association.

“We expect the nation’s nearly one million restaurants to post sales of $632 billion this year. Combine that with the fact that restaurant job growth is expected to outpace the overall economy for the 13th straight year, and it’s clear that the restaurant industry is once again proving to be a significant economic stimulant and strong engine for job creation,” she added.

While the industry is expected to grow in 2012, the top challenges cited by restaurateurs are food costs, building and maintaining sales volume, and the economy.

“Last year, we saw wholesale food prices post their strongest annual increase in more than three decades. In 2012, we will see continued increases in the cost of some commodities, while price pressures will ease for others,” said Hudson Riehle, senior vice president of the National Restaurant Association’s Research and Knowledge group.

22 | www.WRAhome.com

“Restaurants continue to be a vital part of American lifestyles and our nation’s economy” Dawn Sweeney, president and CEO of the National Restaurant Association.

ProStart: Your source for the employee talent of tomorrow, right now

By Lyle Hildahl, director of the Education Foundation

Years ago as a restaurant owner, I experienced the challenges of working with teens under the age of 18. I once had a banquet on a Thursday night, and a 17-year-old prep cook happened to be on the clock past midnight. Another employee tuned me into L&I for the infraction. I didn’t have the proper parent permission documentation, and I violated child labor laws by having a 17-year-old work so late on a school night. So, I ended up with a fine. After that experience, I made it company policy to not hire anyone under the age of 18.

That leads me to my point. Why should you hire a ProStart student or graduate? First of all, you shouldn’t hire a ProStart student until you know what the ProStart program is all about. Secondly, not all ProStart students are ready to work in our industry, and some are not in the program for the right reasons. But knowing what I know today, I would go without hesitation to a ProStart program to find quality employees.

The ProStart program prepares high school juniors and seniors with a knowledge-based curriculum and performancebased internship program that teaches foundation skills in culinary and restaurant management. It’s an opportunity for young people to follow their passion to cook, serve, manage and sometimes own their own business. Just ask Elijah Dalager, ProStart graduate from Ferris High School in Spokane. Elijah is now the executive sous chef at Templins Hotel on the river in Post Falls, Idaho. In this case, the student has become the teacher. Elijah now mentors students at Rogers High School and assists other area schools with chef demonstrations.

Impressively, Elijah was named the 2011 Washington State Chef of the Year by the American Culinary Federation.

Want more evidence of ProStart’s impact? Talk with Jerry Weathers, a ProStart graduate of Mt Si High School. Jerry is the sous chef at Snoqualmie Ridge Golf Club and owns a catering business. Jerry mentors students at Mt Si high school and hires graduates and interns from the program. Wouldn’t you like to find an Elijah or a Jerry for your operations? I know I would.

I have the pleasure of traveling around the state, presenting to our partner ProStart programs on career opportunities in our industry. In each class I speak to, I encounter a few who ask the right questions, want to know more, yearn to get engaged with volunteer learning and networking opportunities and show a genuine passion for what we do. Whether it is to cook, serve or manage, they are ready for us to guide them.

It should become common practice to get involved with ProStart as an avenue for finding qualified, passionate and enthusiastic individuals to become the next stars in your operation. Send your chefs to the ProStart classrooms to do

Lyle Hildahl, WRA Education Foundation director

demos, where they’ll meet students who may one day be a perfect fit for their kitchen staffs. Send your floor managers to a ProStart class on front of the house operations, and watch them discover those students with the potential to become a future employees. Invite ProStart students to assist you on a banquet or community fundraiser, and you will see first-hand who shows up, who works hard, who asks, “What more can I do?” and who you would want on your team.

Scott Fraser, owner of Frasers Gourmet Hideaway in Oak Harbor, was featured in 2010 on Northwest Backroads, a TV program on King5 that highlights regional attractions. Scott mentors the Oak Harbor ProStart students by inviting them into his restaurant to practice for competition. He assists teacher Louise Reuble with the class and has been known to hire the most impressive students. The Oak Harbor team, with Scott’s help, placed third in the nation at the 2010 National ProStart Culinary Invitational. He doesn’t have to look on Craigslist or sift through a stack of applications to find talent for his operation. He knows exactly which students will help him be successful, and in turn, he helps them reach their career goals.

So, yes. There are challenges to hiring teens, but hiring the right teens with skills, desire and willingness to work hard is worth it. You just have to get involved. As your community begins to learn about what you’re doing for these kids, watch the seats in you restaurant start to fill up as well. They’ll want to see your efforts in action.

With more than 13 million people currently employed and nearly 1.5 million more expected to join the workforce in the next 10 years, the foodservice industry needs an educated and trained workforce to lead the way. Nationally, the ProStart program reaches more than 90,000 students at 1,700 high schools in 47 states.

If you have any doubt about the quality of the ProStart program, travel to Olympia on March 3 at South Puget Sound Community College, and watch as 22 Washington schools compete in culinary and restaurant management competitions. Watch teenagers work in teams as they problemsolve their way through a challenge they weren’t expecting, or present a business plan for a new restaurant concept. The young people we observe on that day are truly the industry leaders of our future. Prepare yourself to be blown away.

For information on ProStart programs in your area or if you are interested in finding ways to support and get engaged in this great program, please check our web site at or contact the Education Foundation at 877.695.9733.

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24 | www.WRAhome.com

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Feeding dreams.

Building futures.

WRA has it’s

The OWN

RADIO SHOW!

Listen from noon until 1:00 p.m. every Wednesday on KLAY Radio, 1180 A.M. www.facebook.com/dinenorthwest

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1/31/2012 6:38:38 PM

CHEF ELI DALAGER

• Sous Chef at Harbor Crest Retirement Community • American Culinary Federation 2011 Chef of the Year Washington state • Prostart Graduate and Industry Volunteer Chef Eli is a graduate of the Ferris High School ProStart program in Spokane. According to Eli he didn’t have a lot of direction at the time he started ProStart, but as soon as he was introduced to the culinary arts and was asked to compete, he was hooked.

Today he volunteers with his local ProStart program and for the WRA Education Foundation.

You can feed a dream and build a future hire or mentor a ProStart student.

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Visit www.wrahome.com.

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INDUSTRY CALENDAR

Visit www.WRAhome.com/calendar for a full list of events.

Training | Meetings | Events | January & February Events

Meetings

Training

March 3 Apr. 29 – 30

Mar. 6

Executive Committee Meeting

Mar. 7

Seattle Restaurant Alliance Morning Mixer

Mar. 13

Spokane Chapter Meeting

Mar. 6 Mar. 12 Mar. 15

Mar. 20

MSC Board Meeting

New Restaurants

Mar. 27

Board Development Conference Call

Amber Den, Seattle Baja Fresh Mexican Grill, Battle Ground Hazel Deli, Battle Ground Cactus Restaurants, Seattle & Kirkland Diamond Jim’s Grill, Bellingham Everbody’s American Cookhouse, Port Orchard Fizzie Mulligan’s, Spokane Go Go Burrito, Spokane Green Frog Café, Bellingham Jersey Mike’s Subs, Lake Tapps Kalama Burger Bar, Inc. La Crème Brulee, Dupont Lennard K’s Boat House, Allyn Lunchbox Laboratory, Seattle Five Guys Burgers & Fries, Missoula Offut Lake Resort, Tenino The Old Edison Inn, Bow Pastime Pub, Sultan Rex’s Burgers & Brews, Spokane Seed’s Bistro & Bar, La Conner Service Station Coffee, Spokane Ship Canal Grill, Seattle Skagit’s Own Fish Market, Sedro Woolley Skyline At First Hill, Seattle The Sports Keg Restaurant Lounge and Casino, Burlington Tony V’s Garage Saloon & Eatery, Everett The Wake Up Call, Spokane

New Allied Members

ProStart Invitational Northwest Foodservices Show

New Allied Members Clearview Spirits & Wines Doug Roulstone 17424 State Route 9 S.E. Ste. E Snohomish, WA 98296-8300 360.202.2585 doug@clearviewspiritsandwines.com www.clearviewspiritsandwine.com Complete line of high end spirits and wines provided to the top restaurants in Washington. Largest selection of single malt scotch, bourbon and rye.

26 | www.WRAhome.com

NAI Black 107 S Howard St. Ste 500 Spokane, WA 99201-3818 509.622.3566 www.naiblack.com Specialize in the sales and leasing of restaurants, bars, hotels and other food and beverage related businesses.

Alaskan Leader Seafoods Keith Singleton 4215 21st Ave W Suite 200 Seattle, WA 98199-1253 2069651881 Keith@alaskanleader.com www.alaskanleader.com Seafood, Sustainable, Eco-Friendly, Alaskan, Partnership, MSC Certified, Full Utilization, Consistency, Environmentally Conscious CJ Foods Annie Chun’s All Natural Foods Mary Kelly 4319 E 15th Ave Spokane Valley, WA 99212-0280 509.534.3438 mduffy@cjfoods.com www.anniechun.com CJ Foods/Annie Chun’s All Natural Asian Cuisine. With over 50 years of culinary excellence, CJ Foods is the most trusted name in Korean food in Korea, Asia and now North America.

CJ Foods would like to be your menu development partner in bringing something new and exciting to your customers. Our product portfolio ranges from all natural Asian sauces to Certified Angus Beef Bulgogi Meat.

Khamu Solutions Steve Lipkin 720 W Idaho St Ste 26 Boise, ID 83702-5811 2083452250 steve.lipkin@khamu.com www.khamu.com

ServSafe, Seattle ServSafe, Kent ServSafe, Tacoma

POS, Point of Sale, software, inventory, credit cards, gift cards, receipt paper, cash register, computers, online ordering, website development.

10% off our per terminal software license for WRA members NW Local Marketing Mario Morales 22533 NE 14th Dr Sammamish, WA 98074-6824 2066178091 info@nwlocalmarketing.com www.nwlocalmarketing.com Poached Jobs Kirk Thornby 3664 SE Henderson St Portland, OR 97202-8342 503.810.7420 kthornby@poachedjobs.com www.poachedjobs.com Jobs for the food and drink industry.

Staffing solutions and more for owners and managers.

Schubert Floorcovering Co. Greg Schubert 8305 7th Ave S Seattle, WA 98108-4334 2067622300 greg.schubert@schubertfloorcovering. com www.schubertfloorcovering.com Commercial flooring: Wood, SandFree refinishing, carpet, ceramic/stone, FRP, safety flooring, vinyl Over 50 years in the Seattle area.

Seattle City Light 700 5th Ave Ste 3200 Seattle, WA 98104-5065 206.684.3000 margo.dannemiller@seattle.gov www.seattle.gov/light/conserve

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Save $300

Register by April 6, 2012 OSUcascades.edu/cornellexecprogram

2/27/2012 4:49:07 PM

Coming to Bend

3-Day Executive Education Courses for Restaurant Professionals

Led by professors from Cornell University’s distinguished hotel school.

Restaurant leaders devote their careers to advancing their businesses and finding personal success. Thanks to a collaboration between two land grant universities, West Coast restaurateurs can do both through the Cornell University School of Hotel Administration executive education courses offered at Oregon State University – Cascades in Bend, Oregon.

Register today at OSUcascades.edu/cornellexecprogram

For more information, contact cornell.exec.ed@osucascades.edu WRA_half_page.indd 1

2/16/2012 4:40:44 PM

Marketplace CONSULTING AND BUY/SELL SERVICES

SELLING OR BUYING?

Thinking about selling or buying an existing restaurant, or adding a new location? Call Allan Boden, Sunbelt restaurant specialist at 206.229.4717, or email a.boden@sunbeltnetwork.com. Sunbelt has been serving clients since 1982 with offices nationwide. http://seattle1.sunbeltnetwork.com

25 Year CPA and former restaurant owner can help you increase your bottom line, improve efficiency, plan an exit strategy and provide selling or buying services. Affiliated with business brokerage/intermediary firm of William E. Pearsall, P.S. Excellent references. Certified QuickBooks ProAdvisor. Call Jean Klein (206)795-4443. www. smallrestaurantspecialist.com

CONSULTATION, PLANNING, AND CONCEPT DEVELOPMENT

Thinking about opening up a new restaurant, moving into an existing, or re-modeling? DYNAMIK will provide a complimentary initial consultation to review your project.

Email Melanie@dynamikspace.com to determine a plan for your concept, design, schedule, and construction.

OWNERS GET PAID Who makes W.O.T.C. credits easy to capture? In 2012 will W.O.T.C. be ‘money left on the table’ or profits in your pocket? Contact Mike Lancey, MBA, EA, CHAE at (866) 547-8277, mike@mckenziechase.com. Mckenzie Chase Management serving Northwest clients since 1982. http://www.MckenzieChase.com

Get your ad placed in the Washington Restaurant Magazine!

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28 | www.WRAhome.com

2/27/2012 2:15:31 PM

Join the revolution … and discover how you can improve your restaurant.

The National Restaurant Association, Council of State Restaurant Associations, 40 state restaurant associations — including the Washington Restaurant Association — and Heartland Payment Systems® have joined forces to upgrade the crucial business services of every restaurateur. Full Course Business SolutionsSM — an exclusively endorsed suite of payments products and services — does just that, helping you reduce expenses, enhance operations and increase profitability. Our offering will grow as the industry — and your needs — evolve.

Full Course Business Solutions Card Processing • Gift Marketing • Payroll Services • Check Management To learn more about how this movement can help revolutionize your restaurant, visit GoFullCourse.com and call 866.941.1HPS (1477) x150. © Copyright 2010 National Restaurant Association. All rights reserved. © 2010 Heartland Payment Systems, Inc.

Ask the Expert | Restaurant Profit Coach

Build a powerful business with vision and clear expectations

By Rick Braa, CHAE

Q: My restaurant does not produce the type of results I think it should. What needs to be done to change the culture of the business?

A:

Lasting change must begin at the top. Generally, the major problem in every company is communication.

The leader sets the tone and has the ability to improve communication immediately. With a lack of information, people tend to draw to the negative; making up stories, making up meaning, and forming unfounded conclusions.

To get your business to the next level and affect permanent change, use these steps: 1. Make your vision and purpose clear—it’s amazing how many leaders don’t understand where they’re going or what they are trying to create. Are you progressing toward a goal, making the world a better place, or are you drifting aimlessly? Employees crave direction.

They want to know where you are going and why you’re in business. If you articulate and record your business vision and purpose, your employees will gain a necessary piece of information to buy in and commit wholeheartedly.

2. Set clear expectations—as the leader, you have a responsibility to make your expectations crystal clear. Sit down with a piece of paper and list out your expectations and communicate them. To start simply, take the business apart and write down your expectations for the guest experience, the employee experience, the vendor experience, the look and feel of the facility, the profitability you want to see and the progress you want toward a set of goals. You have no right to be frustrated with your team if you haven’t been explicit in stating your expectations with force and conviction. Set your expectations high and don’t make excuses as to why they can’t be met.

3. Give the team the tools to succeed—take an inventory of what tools are missing. There is a great deal of envy for the national chains when it comes to the type of tools they possess. The world has changed, and what was once only available to the giants is now available to companies at all levels. Technology is wonderful, but without much investment you can set and record Standard Operating Procedures in every area (SOPs), measure compliance to SOPs, ensure your performance assessments are current and include 30 | www.WRAhome.com

performance improvement goals, and provide training workshops to further knowledge.

4. Assign more responsibility—employees want more responsibility and want their ideas heard and implemented. The answers are within the four walls to improve your business. Everyone working for you can assume more responsibility. There are common reasons delegation is shrugged off: fear of loss of control, lack of ability to train others, personal enjoyment of the task, habit, inability to find someone else to do it, reluctance caused by past failures, lack of time. While some or all of these may be true in your business, your job as a leader is to be the best at doing the right work and holding others accountable to doing the work right. You’ll be surprised at the performance of your team once they have more responsibility.

5. Reinforce a culture of performance—Encourage and expect high performance. Put pen to paper and define what high performance for each position looks like, and make sure everyone understands the expectation of high performance. Be willing to make hard staffing decisions, and build a high performance culture.

Deliver the message that you trust the character of each person but that results are verified so there is no accusation of favoritism. Don’t tolerate reasons, stories and excuses. Most importantly, provide positive feedback and catch people doing the right things so you can reinforce great performance.

Creating a company that is powerful, nimble and successful begins with a well-articulated vision, purpose and clear expectations. Regardless of the age and maturity of your business, take the time to explicitly record what you want; then, teach, train and develop the people with whom you’ve surrounded yourself to execute flawlessly on your vision. Step into greatness.

For more information on building a powerful company, improving performance, driving sales and moving your business forward, contact BRAA Associates at rbraa@braaconsulting.com. Rick Braa is the founder of BRAA Associates, a consulting firm specializing in helping companies grow. 

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