August 31, 2015

Restaurant Performance Index Rose in July

August 31, 2015/ Christie

Driven by stronger same-store sales and customer traffic levels, the National Restaurant Association’s Restaurant Performance Index (RPI) posted a solid gain in July. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 102.7 in July, up 0.7 percent from June and the first gain in three months. In addition, July represented the 29^th consecutive month in which the RPI stood above 100, which signifies expansion in the index of key industry indicators.

“July’s RPI gain was fueled primarily by an improvement in the current situation indicators,” said Hudson Riehle, Senior Vice President of the Research and Knowledge Group, National Restaurant Association. “Although a solid majority of operators reported higher same-store sales and customer traffic levels in July, their outlook for both sales growth and the economy is more cautious compared to recent months.”

The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators. The Index consists of two components – the Current Situation Index and the Expectations Index.

Current Situation Index

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 103.7 in July – up 1.2 percent from June and the strongest increase since December 2014. In addition, the Current Situation Index stood above 100 for the 17^th consecutive month, which signifies expansion in the current situation indicators.

Same store sales: A majority of restaurant operators reported higher same-store sales for the 17^th consecutive month, with July’s results representing the strongest performance since April. Seventy-three percent of restaurant operators reported a same-store sales gain between July 2014 and July 2015, up from 64 percent who reported higher sales in June. In comparison, 16 percent of operators reported a same-store sales decline in July, down from 20 percent in June.

Customer Traffic: Restaurant operators also reported stronger customer traffic results in July. Fifty-nine percent of restaurant operators reported an increase in customer traffic between July 2014 and July 2015, up from 47 percent who reported higher traffic in June. Twenty-three percent of operators said their traffic declined in July, down from 28 percent in June.

Capital spending: Along with positive same-store sales and customer traffic levels in recent months, restaurant operators continued to make capital expenditures. Seventy-two percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, which marked the 10^th consecutive month in which a majority of operators reported making an expenditure.

Expectations Index

The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 101.7 in July – up slightly from a level of 101.5 in June. Overall, July represented the 33^rd consecutive month in which the Expectations Index stood above 100, which indicates restaurant operators remain generally positive about business conditions in the months ahead.

Sales outlook: Restaurant operators’ outlook for sales growth softened somewhat in recent months. Forty percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), which represented the fourth consecutive month of declining optimism. In comparison, 12 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, the highest level in 12 months.

Overall economy: Similarly, restaurant operators are less bullish about the direction of the overall economy. Only 16 percent of restaurant operators said they expect economic conditions to improve in six months, while 21 percent expect conditions to worsen. This marked the second consecutive month with a net negative outlook, the first such occurrence in nearly three years.

Capital expenditure planning: Despite the dampened outlook, a majority of restaurant operators said they are planning for capital expenditures in the months ahead. Sixty-six percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 59 percent who reported similarly last month.

(via Restaurant News)

August 25, 2015

Staffing Challenges in the Restaurant Industry

August 25, 2015/ Christie

In addition to the challenge of hiring cooks and chefs to work the kitchen, waiters and waitresses are becoming harder to find. Based on a recent survey conducted by the National Restaurant Association, more than 50 percent of restaurant owners say that it is extremely difficult to find and keep good workers.

The reason, simply, because of supply and demand.

There is a huge need for restaurant workers, both front of house and back of house, since the U.S. Department of Agricultures reports that people are spending more time and money dining out. Americans are spending approximately 43 cents of every food dollar away from home. Michael Latour, a restaurant owner from New Jersey states, "The economy is good, and people are spending more money than ever in the hospitality industry. We're living in an area that's saturated with restaurants."

However, there just isn't enough workers to support all the restaurants. (Or at least, not enough workers willing to.)

Restaurant owners and managers understand that it is not so easy working in the restaurant environment. Tony Del Gatto says to work at his country club, a chef has to work six days a week, 12 hours a day, for both lunch and dinner services. That's more than 70 hours a week! The long hours are not only burdensome for both cooks and waiters, they are also taxing on their health, as they have to be on their feet all the time.

In addition, workers are not willing to accept low salaries anymore. According to the National Restaurant Association, restaurant wages range from a measly $8 an hour for dishwashers and to almost $20 for bartenders. Chefs earn about $12 an hour, while waiters and waitresses get about $16 (with tips included). Christine Nunn, a restaurant owner and chef states, "People come out of the Culinary Institute of America with a lot of debt, and they're not paying it off at $12 an hour."

Sadly, restaurants are unable to afford to pay more. Most restaurants already work on thin profit margins of only 4 to 6 percent.

Some analysts have noted that a slowdown in immigration may be another cause. The U.S. Bureau of Labor Statistics' reports reveal that 11 percent of Hispanic workers hold jobs in the restaurant and hospitality field. Furthermore, workers have difficulty in finding accessible transport to suburban restaurant jobs.

Fortunately, there are those who continue to stay and work in the fast paced environment of restaurants. Servers express that they love the bonds and interactions that make with customers, and chefs enjoy working with food too much to leave.

Michael De Vincenzi, a maitre d' states, "I want to be busy. I want it to be hectic. I like the stress. It's all adrenaline."

(via

The News Tribune

)

Looking to work in Hospitality?

Discover who’s hiring on Harri

Follow Harri on Facebook and Twitter

for real time job posts and industry news.

August 24, 2015

National Restaurant Association Educational Foundation Expands ProStart Program

August 24, 2015/ Christie

National Restaurant Association Educational Foundation Expands ProStart Program to All States For New School Year

ProStart Introduces Secondary Students to Career Opportunities in the Restaurant and Foodservice Industry

WASHINGTON, D.C. (PRWEB) AUGUST 24, 2015

ProStart – a career and technical education (CTE) program focused on teaching culinary arts and restaurant management fundamentals to secondary school students – will now be available throughout the United States. North Dakota marks the 50th state to offer the industry-derived, competency-based program for the 2015-2016 school year.

Available in nearly 1,700 high schools and career technical centers, ProStart reaches more than 118,000 students from a broad range of racial, ethnic and socioeconomic backgrounds. The program offers students a platform to discover and develop new interests and talents, and effectively teaches not only culinary and restaurant management techniques and theory, but also employability skills including teamwork, professional behavior, time management and communication that are hallmarks for achieving life-long career success.

“ProStart has a proven track record, and with this milestone, is one of the largest CTE programs of its kind, providing tangible career-readiness skills to high school students, and preparing them to enter the workforce or pursue higher education in support of their goals,” said Rob Gifford, executive vice president, strategic operations and philanthropy for the National Restaurant Association and the National Restaurant Association Educational Foundation.

As the second-largest private sector employer in our nation’s economy, the restaurant and foodservice industry employs 14 million people and will need to fill 1.7 million new jobs in the next decade. ProStart’s goal is to connect industry to the classroom, interesting and directing young people to the careers available in the rapidly expanding restaurant and foodservice sector.

“The opportunities this program exposes students to are endless,” continued Gifford. “Whether they want to be a chef, a baker, a server, a manager, an accountant, a marketer or a business owner, the restaurant and foodservice industry has a place for them. ProStart is only the first in a series of doors that will be opened to young people who choose a rewarding restaurant or foodservice career.”

Recent research shows that 80 percent of ProStart students are engaged in class, 70 percent plan to pursue post-secondary education and one in four hope to own their own restaurant some day. In addition to participating in a hands-on and group-learning based curriculum, ProStart students have the opportunity to apply for high-value scholarships and to compete in state and national student team competitions. Additional connecting activities include work experience and the ability to earn industry-recognized credentials.

ProStart is supported by industry, educators, school administrators, the NRAEF and state restaurant associations in the U.S., Guam and Department of Defense Education Activity schools in Europe and Asia. For more information on the ProStart program, visit NRAEF.org/ProStart or find us on Twitter or Facebook.

About the National Restaurant Association Educational Foundation

As the philanthropic foundation of the National Restaurant Association, the NRAEF exists to enhance the restaurant industry’s service to the public through education, community engagement and promotion of career opportunities. The NRAEF works to attract, develop and retain a career-oriented professional workforce for the restaurant industry. In 2015, the restaurant and foodservice industry is projected to comprise one million outlets and a workforce of 14 million employees, making it the nation’s second largest private sector employer. For more information on the NRAEF, visit NRAEF.org.

(via PRWeb)

August 18, 2015

Chef Shortage in Restaurant Kitchens

August 18, 2015/ Christie

"There aren’t enough qualified cooks — or unqualified cooks," says a restaurant owner.

Small diners and fancy, fine dining restaurants are both facing the same problem – the extreme shortage of cooks in the kitchen. This was not an issue before. Co-owner and chef Alfred Portale of Gotham Bar and Grill stated, "If I had a position open in the kitchen, I might have 12 resumes, call in 3 or 4 to [try out] in the kitchen, and make a decision [a few years ago]," Now, that is not that case... Actually, it is the other way around. Restaurants are now constantly chasing after applicants, hoping to catch a break from the 'chef drought'.

There are several speculations as to why there has been a lack of chefs in the kitchen.

Too many restaurants opening

Restaurants are popping up left and right at an unbelievable pace, due to the resurgence in the economy. In a typical year, there would be around ten openings in downtown Denver, but in 2014, there were nearly 50. With that many new establishments being set up, there is not enough chefs to fill the open positions.

Age of instant success

In the past, restaurant workers would have to earn their stripes in the kitchen. They would need to work their way up in the ranks, starting at entry-level positions and then eventually in a few years time, they would hold executive-level titles. Nowadays, people have become impatient. They want everything, now, now, now!

Millennials are under the impression that success occurs instantaneously, and is something that does not need to be worked for. One reason is because of the whole 'TV chef' phenomenon. People think they could just hit it big by winning MasterChef or Top Chef. Chris Coombs, chef/owner of Boston Urban Hospitality, said, "They all want to be Anthony Bourdain. The television era has warped the perception of how much work it takes to get from where they are to where [Bourdain] is."

Pay is low

Of course, when it comes down to it, money matters. The total cost of culinary school at the Culinary Institute of America tips at more than $30K a year. However, starting annual salaries ranging from $22,000 to $35,000 are not cutting it. Recent graduates have personal living costs and growing student loans to pay. Living off such low wages are nearly impossible in urban cities. In turn, young job seekers are applying to big companies and restaurant chains, which have the ability to pay more and with benefits.

What can a restaurant do?

Our main focus at Harri is to make the hiring process easier, cost efficient as well as be your solution for industry wide challenges like the one mentioned in this article. Harri is a hospitality-focused startup created by a restauranteur for restauranteurs, so we truly understand the pain points associated with hiring in this industry. We are working tirelessly to bring happiness back to hiring in hospitality. Learn more about what Harri does and all that it has to offer in the video below: