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December 2013 Newsletter

Dec 17, 2013

Greetings!

We’ve been busier than ever at Synergy, a sure sign that the economy is continuing its slow-but-steady recovery.

The end of the year brings many opportunities to stop and reflect on our personal and professional lives, and to look ahead to what’s next.

2013 has been a challenging but ultimately fulfilling time for the foodservice industry in general, and for Synergy in particular. The economy has been recovering—slowly and in fits and starts, but at last more reliably, and we are looking forward to 2014 with renewed optimism.

But the last few months have also been clouded by the loss of some of our guiding culinary lights. Charlie Trotter, who closed his eponymous and influential restaurant just last year, to focus on the next part of a life that was suddenly cut short. Jean Banchet, the dedicated French chef who proved that food lovers would travel anywhere for quality and innovation when he opened Le Francais in suburban Wheeling, IL. And most recently Judy Rogers, the chef-owner of San Francisco’s beloved Zuni Café, who helped to convince the world that comforting food could be a beautiful thing.

All of this serves to remind us that life is precious, and you need to grab it with both hands and hang on.

We wish all of you a holiday season filled with peace and happiness.

To your success, Dean Small and Danny Bendas

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Fast Casual Update

By Joan Lang

The fast-casual segment continues to make news, driving the lion’s share of growth, sales and innovation in the industry. In fact, according to NPD CREST, in the year ending May 2013 visits to fast casual restaurants increased 9%, while the rest of the industry was flat. Technomic tells us that the sector is now worth $31 billion, and while that’s only 14% of the overall limited-service restaurant business, its sales are growing by double digits every year.

No wonder so many ambitious entrepreneurs—including those who have made names for themselves in full-service circles—are rushing to establish a beachhead in the superhot fast casual marketplace, which accounts for 7% of unit growth.

While none of the following concepts may become “the next Chipotle” (the company that has become the Holy Grail for new FCR development), they provide a fascinating picture of the creativity that’s going on in the segment.

  • Tau Poco, a global street food concept in Birmingham, AL, was famously opened on a $15,000 budget, but it offers customers an almost infinite variety of build-your-own choices. “Carriers” include various international-style wraps and breads (Moroccan flatbread, all-American lettuce wrap), which can be accessorized with proteins, sauces and sides ranging from Korean bo ssam pork and Japanese miso to Argentinean chimichurri—the whole world is a playground for experimentation, in other words

 

  • Further along in its journey, Little Greek  is a franchised “neighborhood Greek restaurant with an American influence,” supporting locations in Florida, Texas and Arkansas. While the menu is localized, signature dishes include such approachable choices as pita sandwiches, Greek salads, and platters showcasing souvlaki, dolmades (stuffed grape leaves), gyros, the Greek lasagna known as moussaka, and other familiar favorites

 

  • Flower Child, the newest concept of the successful Phoenix multi-unit entrepreneur Sam Fox (who already has a tremendous hit in True Food Kitchen), will occupy the quick-healthy-food niche that fast casual seems destined for. It will feature many socially conscious, GMO- and gluten-free ingredients and preps including grass-fed beef, wild salmon, organic poultry and veggies, salads, sandwiches and bowl-like hotpots, and there will also be wine and beer. The first Flower Child is scheduled to open in early 2014

 

  • Moving into the drive-thru arena that has so far been underexplored by fast-casual chains (with a few notable exceptions, including Mooyah and Panera) is global burrito specialist Boloco, which is testing the waters with a new unit in Rhode Island. What sets this move apart is the fact that Boloco’s brand promise of allowing customers to create their burrito concoction is at odds with the speed and accuracy concerns of drive-thru—but the company has introduced a new set combo program to address that

 

  • Newton’s Noodles, in Washington, D.C., was born from the popularity of the “Fuzu” noodles that became a house signature at Newton’s Table, a fine-dining restaurant owned by classically trained chef Dennis Friedman. Borrowing from the sweet-and-salty flavors of pad Thai, the original Fuzu recipe has been recast as a Build Your Own concept at the fast casual spinoff. And the customizable noodles have become so successful, in turn, that they have been introduced back at Newton’s Table as the basis for the full-service restaurant’s first-ever lunch menu

 

  • Launched by Thomas John, formerly executive chef of Au Bon Pain, and fellow ABP alumni Tim Oliveri, Piperi Mediterranean Grill in Boston has a menu centered around the signature gozi, a griddled flatbread that’s a variation on a traditional Turkish bread recipe. Diners can customize their made-to-order sandwiches from a list of ingredients that includes falafel, chicken, hummus, Moroccan carrot salad, olives and feta; the build is also available as a salad or mezze plate. Expect bigger things: The bread is trademarked

If you’ve noticed a buzzword pattern here to how the fast-casual segment is evolving—healthy, fresh, made-to-order, customizable, socially conscious—you’ve been paying attention. This should be an interesting ride.

 

Need help developing your new fast casual idea—or any concept, for that matter? Contact Synergy Restaurant Consultants.


 


How to Make Your Beverage Program Work Harder for You

By Joan Lang

The holidays are a great season for beverage sales. Here are 10 ideas for making your beverage program work a little harder, now and throughout the year.

1. Use a Beverage Menu – The first rule of getting more from your beverage menu: Make sure you have one. Although separate menus for wine, beer and cocktails may be too much for all but the most ambitious beverage programs, you should have some kind of printed list that guests can refer to. This will encourage them to try new things and help create a signature perception. You should also seriously consider including the beverage menu(s) on your website.

2. Don’t be Afraid to Specialize – Nowadays you don’t have to be all things to all people; there are restaurants that specialize in particular spirits or even particular drinks. I Sodi, an Italian restaurant in New York City, is known for its Negronis, for example, while Chicago’s Sable recently launched a Spanish-style gin-and-tonic menu.
Check it Out: InterContinental Hotels has had considerable success with branding select bars around a single beverage category, such as RumBa in Boston and vodka at Proof in Toronto

3. Run Specials – Feature a “chalkboard” cocktail, wine, and/or beer of the day and promote it through hand-selling. Not only will this build sales, it will also allow you to test the reception of potential new products, take advantage of distributor/importer specials, and sell to holidays and micro-seasons (such as an unexpected warm spell or the arrival of pomegranates).

4. Tap the Appeal of Glassware – You already know that beverages have moved beyond the days of one-size-fits-all glasses. Make sure your glassware is commensurate with your offerings—for instance, if you have a lot of interesting beers, invest in purpose-built vessels for different varieties. And simply displaying interesting glassware at the bar may spur questions like, “What’s that neat tiki glass for?” ‘Nuff said.

5. Looks are Everything – By the same token, a beautiful-looking drink will attract attention even from those who didn’t order it (the “What’s that?” effect). Garnishes, glassware, colors and other aesthetic highlights will support that all-important premium pricing strategy and make all of your beverages more memorable.

6. Reach for the Top (Shelf) – Speaking of premium, high-end imbibes are where it’s at. The economy may still be somewhat dicey, but when it comes to spirits and beer, the action’s on the top shelf, especially when it comes to the influential Millennial set. Depending upon your concept, this could embrace anything from micro-distilled local spirits and hard-to-find specialties (can you say Pappy Van Winkle?) to traditional premium pours like Belvedere vodka and Macallan Scotch.

7. Don’t Forget the Nondrinker – From underage family members to designated drivers, there are plenty of people who don’t drink alcohol but do deserve an interesting beverage nonetheless. Possibilities for them include:

• Housemade, local/regional, and “gourmet” sodas
• Sophisticated virgin cocktails that employ the same attention to balanced flavors and presentation as their alcoholic kin
• Smoothies and juices
Bottled water
• Ethnic specialties like horchata and or the Puerto Rican barley refresher known as the Resbaladera
• Specialty tea and coffee, either on their own or in recipes

8. Consider Pairings – Wine pairings are becoming more commonplace, particularly with prix fixe tasting menus or for special events, but there are other ways to spur sales of the “perfect beverage” for any dining occasion.

• Suggest one or more wine-by-the-glass or beer pairings for each item on your menu, including specials
• Train staff to offer pairing suggestions with specific orders
• The folks at Unilever have a clever tool for pairing iced tea with food; does this give you any ideas?
Check it Out: The new Coppervine, in Chicago, casts itself as the place for pairings, offering a cocktail, beer and wine selection for every single item on the menu, from marinated olives to daily house-made ice cream

9. Explore Seasonality – Just as in the menu, cocktails and other beverages that are seasonally driven make good business sense. This works both for ingredients (such as warming spices like cinnamon in cold weather cocktails, and fresh fruit in the summer) as well as styles of drinks (heavy stouts are more appealing in the wintertime than are refreshing sour beers). Consider adding a seasonal section to your regular drink menu—but think hard before removing a popular or signature core item that regulars expect.

10. Invest in Staff Training – This is important not just for bartenders and cocktail servers, but for all front-of-house personnel. Waitstaff should be as well-versed as possible in the beverage program so they can answer questions and make recommendations; use preshift meetings, tastings and distributor resources for all they’re worth. There are also many online educational options to consider.

Owners and managers can also help by:

• Making sure no cocktail is so complicated that it cannot be made in a minute or two
• Investing in adequate equipment and supplies, including ice, glassware, inventory, and so on
• Scheduling enough people to cover busy periods, as well as prep time
• Adhering to policies and standards, such as when to cut a patron off

If you need help building your beverage program, contact Synergy Restaurant Consultants.


Watch Out for Unemployment Cost Overruns

Short note on unemployment insurance: 11.2% of the expenses you are charged from the state are wrong. Meaning: Your account may be charged for people who are deemed ineligible or that past employees who received benefits are still getting them after acquiring gainful employment elsewhere or any myriad of other reasons.

Reducing improper payments and strengthening program integrity are priorities for the Administration. They are equally a priority within the Department of Labor. The problem is so big that the DOL has stated the following:

“We are aggressively working to identify new strategies and tools to support our state partners in addressing the rising UI [Unemployment Insurance] improper payment rate. [We] might also add that addressing improper payments relates to UI trust fund solvency. Particularly now, when trust funds are under extreme pressure and states are borrowing at near record levels, it is essential to ensure that UI benefit payments are made properly”

The Employment and Training Administration (ETA) routinely reports an annual improper payment rate based upon data collected from audits that detect many errors that are not within the control of the state agency. As a result, they report two rates for the Unemployment Insurance (UI) Program: the overall annual rate based on all sources of error, and the operational rate, which represents those improper payments.

Unfortunately, the UI improper payment rate has increased during the most recent reporting period (July 2009 to June 2010) required under the Improper Payments Information Act. The department reports that during this reporting period the overall rate was 11.2%, of which 10.6% represents overpayments.

This is unbelievable. The operational rate for the same period was 5.7%, according to the U.S. Department of Labor. There has never been more clear evidence that we as operators need to monitor, very closely, each name on the unemployment reports that we get, look at how much they were paid, and from what time to what time. Chances are (and certainly the data above proves this), one or more of our past employees have been paid when they lost their unemployment case, have been overpaid when they won or are continuing to get unemployment benefits—at our expense—even after they have gained full employment.

be substantial.


Tip of the Month

Each year, December marks the release of one of the most influential “hot new trends” predictions of the season: The National Restaurant Association’s annual “What’s Hot” survey, conducted in collaboration with the American Culinary Federation. Fast Casual has posted a particularly useful article about this year’s survey, which also contains links to the full report, as well as last year’s analysis. Have a look.