Restaurant Industry Operations under Growing Pressure to Balance Labor Costs, Big Data and Profits

 

LAS VEGAS, Nov. 9, 2015 /PRNewswire/ -- IQ BackOffice President and CEO, David Schnitt, at the Restaurant Finance & Development Conference in Las Vegas, NV today discussed the "growing trends, challenges and opportunities" facing the industry in 2016 and beyond.

The Restaurant Finance & Development Conference, is one of the nation's largest annual gatherings of restaurant industry operators, management specialists, financial, legal and regulatory experts. IQ BackOffice, a leading global accounting and human resources outsourcer, headquartered in El Segundo, CA will be displaying, sharing and presenting their views on the 2016 trends and challenges facing the industry and the solutions, tools and options that can be utilized to meet them.

"The nation's restaurant industry, an important contributor to the health of the American economy, is facing a 'perfect storm' heading into 2016 of opportunities and challenges, said David Schnitt, President and CEO of IQ BackOffice.  "Restaurant operators are presented with an environment that will require the efficient management of a changing labor market with narrowing margins and growing regulatory pressures – while still needing to achieve growth, profit and scale."

David Schnitt and the experts at IQ BackOffice predict three key trends and challenges that is reshaping the restaurant industry now and well into 2016:

• Focus on Cost Efficiencies and Changing Labor Market. With companies pressed in terms of labor costs, along with increased wages and a lack of employees to fill critical jobs, it's imperative for companies to find ways to reduce costs.  Restaurants should look to leverage solutions that collate costs around food and labor—generally two-thirds of a restaurant's total spending—so that owners and operators can better handle and understand all of the costs that are within their control.
• Leverage Internet Based Analytics and Insights to Deliver Margins. Under tight margins, managing finances needs to be an exact science. Restaurants need to gain more insight into where particular costs are and where they need to target their spending. Fine-tuning information at a more granular level provides restaurant owners with the solutions needed to make strategic, educated financial decisions—all at a lower cost.
• Deliver Growth and Scale. Even under cost pressures, growth is still possible, but restaurants must efficiently manage growth and scale options at a low cost. Restaurant owners need to realize their financial state holistically to set the right trajectory for profitable growth.

For more information, please visit IQ BackOffice onsite at Booth 620.

About IQ BackOffice IQ BackOffice is a global leader in business process outsourcing, delivering customized solutions for its clients and boasting 99.97% quality and up to 68% cost savings. By reengineering existing processes such as accounts payable, accounts receivable, payroll and human resources, IQ BackOffice reduces costs, enables better decision-making and creates stronger financial controls. Clients range from mid-sized to multi-billion dollar private and public companies, across industries such as restaurant and hospitality, real estate and property management, manufacturing and distribution, telecommunications, utilities, energy, financial services, professional services and others. IQ BackOffice is majority-owned by LiveIt Investments Limited, the holding company for Ayala Corporation's investments in the business process outsourcing sector. Ayala was established in 1834 and is one of the leading conglomerates in the Philippines. For more information about IQ BackOffice's wide range of services, please visit http://www.iqbackoffice.com/.

For additional information, please contact: Alyssa Scott Burson-Marsteller +1 212-614-4012 press@iqbackoffice.com

(via PR Newswire)

A Strong October Jobs Report

 

After three consecutive months of disappointing jobs reports, October finally delivered the strong numbers economists had been hoping for.

The report from the Labor Department shows that the unemployment rate fell to 5 percent, and the economy added 271,000 jobs in October—beating expectations of 180,000. That’s the strongest showing in 2015 thus far.

Hiring surged in professional and business services, health care, retail trade, food services, and drinking places, and construction sectors. The September jobs-added numbers have been revised down to 137,000 from 142,000, while August’s numbers have been revised up—from 136,000 to 153,000. In the past three months, job gains have averaged 187,000 per month.

By all measures, the October jobs report quiets the fears that the U.S. economy is slowing. And October’s strong performance has reignited speculation that the Federal Reserve will raise interest rates at its December meeting.

The Federal Reserve has been looking for a strong jobs report before making what would be the first interest-rate hike in nearly a decade. Federal Reserve chairwoman Janet Yellen has mentioned that achieving full employment post-Great Recession has been difficult, though the Fed considers an unemployment rate of 5.0 to 5.2 percent to be full employment, a feat that was achieved over the summer. Despite this, many economists believe there’s still room for growth since the labor-participation rate remains at 62.4 percent, the lowest level since 1977.

Last week, Yellen testified before the Financial Services Committee of the House of Representatives. She noted that the U.S. economy was performing well, and that if the good news kept coming, “December would be a live possibility.”

(via The Atlantic)

Converged Technology Group IDs Eight Ways Video Enhances HR Recruitment Efforts

 

ISLANDIA, N.Y., Oct.  29, 2015 /PRNewswire/ -- When a company hires a new employee, the expectation is that the organization's overall productivity will increase. Locating, interviewing, hiring, onboarding, training and retaining qualified candidates, however, is both time consuming and costly. The goal of today's human resources (HR) professional is, therefore, to find and hire the best available talent and to integrate new employees in a way that moves them from newbies to significant contributors in the most cost-effective and timely way possible. According to Converged Technology Group (www.convergedtechgroup.com), an award-winning Managed Services Partner (MSP) serving clients throughout the Northeast, successful HR professionals have discovered they all have one secret in common, and it's one that propels them – and their organizations – to the front of the race for employee ROI: video collaboration.

"In partnership  with Cisco, we recently held an event focused on the use of video throughout the recruitment process that drew widespread attention from people in a variety of HR roles, including recruiters, learning and development professionals, as well as C-level executives," says Leo E. Galletta, President and CEO, Converged Technology Group. "The event showcased the strategies, capabilities and technologies required to engage the broad spectrum of a multi-generational workforce. During the event, we performed live demonstrations of video collaboration tools, something which all of the attendees said they found to be relevant and extremely valuable. Why did an event focused on the relationship between HR and IT resonate so well among traditionally non-technical line-of-business professionals? Because companies are having very different conversations today about business outcomes and the best ways to recruit, develop and retain top talent – and most have realized that technology is the key."

The ROI of Video Collaboration

Today's HR professionals conduct worldwide searches to fill key positions, and they need the technological tools that can help them do it. To expand their search and attract an increasingly technology-dependent millennial workforce, recruiters must embrace video and use it to its fullest extent to increase their company's return on human capital.  Experts agree that video is quickly becoming an HR pro's most valuable tool: Studies show that video yields 35 percent greater year-over-year improvements in time to hire and 32 percent greater reductions in costs per hire.¹ To help HR, IT and the C-suite see eye-to-eye, Converged Technology Group has identified eight important reasons to embrace video collaboration in the recruitment, development and retention process:

1. It's Personal: Interviewers can more effectively and efficiently pre-screen candidates face-to-face via video than they can over the phone.
2. Putting it all Together: Group interviews are becoming more commonplace, and video allows hiring managers to assemble remote resources to conduct an interview on short notice.
3. Part of the Team: When relocation isn't a possibility, video makes it easier to hire, train and retain remote workers where they are, yet still have them feel like a valued part of the team.
4. Warming Cold Feet: Staying connected with employees in transition by beginning the onboarding process before they arrive keeps new hires engaged from the day the offer goes out until their first day on the job.
5. Anywhere, Anytime Communication: Video allows for instant communication between colleagues, giving new hires a feeling of connectedness from the start that speeds the onboarding process.
6. Experience Matters: The days of using post-it notes and rotary phones to conduct business are gone; tech-savvy millennials expect to work in a connected, digital environment and are actually shopping for employers that offer them the kind of "connected workplace" experience they envision.
7. A Balancing Act: Because the line between work and personal time has blurred, employees want to be equipped with the tools they need to be as productive at home as they would be in the office, giving them the option of building a more flexible schedule and a better work-life balance.
8. Love of Learning: Video helps learning and development managers present training that is more compelling and engaging, something which ultimately translates to better organizational return and employee retention.

¹ Aberdeen Group: "Bridging Distance in the Talent Lifecycle"

More Information:

• Missed the event? Wondering if video is right for your organization? Schedule a consultation with Converged Technology Group to find out: http://ow.ly/TSFkl.
• Productivity-boosting communication and collaboration solutions can help HR recruit, develop and retain top talent more efficiently and cost-effectively than ever before; learn how harnessing the power of video can change the way you do business in five important ways: http://bit.ly/1urB6pT.
• Explore what managed services like Assist360 can do to reduce collaboration support costs: http://ow.ly/urpZz.

About Converged Technology Group

Converged Technology Group is an award-winning Managed Services Partner (MSP) focused on improving IT performance and business outcomes while lowering the cost of technology support for businesses in healthcare, financial services, education, retail, legal and other cutting-edge industries. Located in Islandia, NY, and New York City, Converged Technology Group provides enterprise networking, collaboration, virtualized data center, cloud solutions and managed services to both regional and multinational corporations. The company provides business-critical uptime all the time, and helps clients design, implement and operate their IT infrastructure, communication and computing systems for the greatest return on their IT investments. For more information on Converged Technology Group, please contact us at 631-468-5728 or info@convergedtechgroup.com, and visit our website at www.convergedtechgroup.com.

(via PR Newswire)

Positive Sales Trajectory Has More Room To Run

 

Restaurant sales rose for the eighth consecutive month in September, with total monthly volume jumping $2.4 billion during the 8-month period. Despite the recent gains, a new survey indicates that one-half of consumers are still not patronizing restaurants as often as they would like, according to the NRA’s chief economist Bruce Grindy. His Economist’s Notebook commentary and analysis appears regularly on Restaurant.org and Restaurant TrendMapper.

Restaurant industry sales continued to grow at a steady pace in September, according to preliminary data from the U.S. Census Bureau. Eating and drinking place sales totaled $52.7 billion on a seasonally-adjusted basis in September, which represented a strong 0.7 percent increase over a sales total of $52.3 billion in August.

The solid restaurant sales gain came in the midst of lackluster September job growth and continued trepidation among consumers when it comes to both the economy and their own personal finances.

September represented the eighth consecutive month of restaurant sales growth, with total monthly sales volume increasing by 4.7 percent (or $2.4 billion) during the 8-month period. In contrast, overall retail sales increased 3.1 percent during the last 8 months, while grocery store sales rose by just 1.0 percent.

Despite the recent sales gains, new research indicates that one-half of consumers have yet to get their fill of restaurants. According to a national survey conducted September 24-27 by ORC International for the National Restaurant Association, 48 percent of adults say they are not eating on the premises of restaurants as frequently as they would like. Similarly, 50 percent of consumers say they are not purchasing take-out or delivery as often they would like.

While it’s not surprising that a majority of consumers in lower-income households say they would like to be using restaurants more frequently, it’s worth noting that individuals in higher-income households are also reporting a desire to increase their patronage. In fact, roughly three in 10 consumers in households with income above $75,000 say they are not utilizing either on-premises or off-premises options as often as they would like.

With these higher-income households accounting for nearly six in 10 dollars spent in restaurants, their elevated levels of pent-up demand suggest that the industry’s current positive sales trajectory has a lot more room to run.

(via National Restaurant Association)

Restaurant Beverage Orders Decline as Consumers’ Tastes Shift

CHICAGO, IL (PRWEB) OCTOBER 13, 2015

Although consumers order a beverage 70 percent of the time when visiting restaurants and other foodservice outlets, beverage orders have declined 4 percent or 2 billion servings over a five year period, finds The NPD Group, a leading global information company. Consumers changing tastes and cost consciousness are behind declines, finds a new NPD foodservice market research report.

There are more growing beverages at restaurants in the last five years than declining, but the declining beverages, like carbonated soft drinks, are larger in servings volume, according to NPD’s Beverages at Foodservice: Satisfying our Thirst for Beverages report which examines consumers’ beverage choices, what and where they order, and the importance of variety in driving their decisions. Iced/frozen coffee, specialty coffee, tap water, and bottled water top the list of growing beverages. Diet and regular carbonated soft drinks, milk, and brewed coffee have lost the most servings of the declining beverages.

The growing beverages, like iced and specialty coffee, get a boost from the fact that consumers “love” these beverages and will make a special visit to get them. These beverages are also more likely to be ordered for a snack. Also behind growing beverages, like tap water, is cost consciousness, consumers will forego a purchased beverage and opt for tap water instead, or visit another location in order to get a lower-priced beverage, finds the NPD report.

Declining beverages, like carbonated soft drinks and milk, which account for nearly 50 percent of all beverages ordered at foodservice, have lost 4 billion servings since 2010. Though declining beverages are down overall, they are purchased with the most frequency of all beverage categories – about two-thirds purchase them during most or every foodservice visit. These beverages are typically ordered at dinner or lunch.

“Despite recent declines in beverage servings, the fact is that beverages are still an important part of foodservice visits – whether by themselves or as part of a meal,” says Warren Solochek, president of NPD’s Foodservice Practice. “In order to drive beverage orders, foodservice operators will need to understand consumers’ changing tastes and offer an array of quality beverage choices, including healthy options.”

About The NPD Group, Inc.

The NPD Group provides market information and analytic solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.

(via PRWeb)