National Food Costs and Menu Pricing

Seventy-one percent of restaurant operators reported an increase in average food costs between January 2011 and January 2012, while only seven percent said their average food costs declined. On average, food prices rose 3.2 percent between January 2011 and January 2012.

Food and nonalcoholic beverage costs represented a median of 33 percent of total food and nonalcoholic beverage sales in January, matching December’s level.

Fifty-five percent of operators said their menu prices were higher in January than they were in January 2011, while just one percent said they cut menu prices during the 12-month period. On average, menu prices rose 1.8 percent between January 2011 and January 2012.

Check out the full results.

The DOL says it will delay a mandate that requires employers of 200 or more full-time employees to automatically enroll full-time employees in company health care plans. The National Restaurant Association has argued that the so-called “auto-enrollment” requirement is redundant, expensive and burdensome, especially in industries with higher employee turnover. “We’re glad the DOL has delayed the rules and believe this is an opportunity to ask Congress to repeal the mandate entirely,” says Michelle Neblett, the Association’s director of labor and workforce policy.

A bill is pending in Congress — H.R. 2206, by Rep. Frank Guinta (R-N.H.) — to repeal the auto-enrollment requirement.

The agency’s announcement came as part of a “frequently asked questions” document that the DOL, the Department of Health and Human Services and the Internal Revenue Service posted to answer employer questions about how the federal government plans to implement the 2010 health care law.

Many critical questions surround the law’s employer mandate, or the requirement that starting in 2014 employers of 50 or more full-time-equivalent employees offer full-time employees an affordable package of “minimum essential coverage” or pay penalties. Federal agencies have not yet spelled out how they will define full-time status, calculate health-plan affordability, or apply the 90-day waiting period before employers must offer full-time employees coverage.

The agencies’ FAQ document indicates that proposed regulations or other guidance is coming in all these areas. In its FAQs the IRS suggested it will allow employers to use up to a 12-month lookback period to determine if current employees are full-time, and outlined a more complex approach for determining whether new hires with fluctuating hours meet the definition of full-time employees. The IRS also indicated that it intends to issue rules or guidance that will allow employers to use an employee’s W-2 wages, instead of household income, as a “safe harbor” for calculating whether a plan is affordable.

The agencies also issued final guidance on new disclosure rules for employers with self-insured health plans and insurers of fully insured plans. Starting with plan years that begin on after Sept. 23, 2012, these employers and insurers must provide employees with a new “Summary of Benefits and Coverage” and “Uniform Glossary” to describe health plans. The templates are aimed at making health-plan information more transparent, consistent and understandable. The NRA had asked for a delay in implementation to aid in compliance, but the final rule is effective later this year.

(Source: National Restaurant Association)

According to the 2012 Restaurant Industry Forecast, 53 percent of adult diners said they likely would place their orders online in advance of their visits and schedule the time to arrive at the restaurant so their food would be served shortly after being seated.

The research also determined that younger consumers are more apt to embrace online ordering than their older counterparts. The report found that 68 percent of adults aged 18 to 34 years old would prefer to order ahead of time, compared with 64 percent of 35- to 44-year olds and 28 percent of adults aged 65 years and older.

Frequent customers ‑ particularly those who seek out convenience ‑ also said they likely would use the online ordering option before arriving at the restaurant. Among that group, 65 percent who order takeout would prefer placing their orders online first, while 60 percent of quick-service and 57 percent of full-service customers said they likely would use the option, too.

“Convenience has been one of the most important growth drivers for our industry during the last two decades,” said Hudson Riehle, senior vice president of the NRA’s Research & Knowledge Group. “Consumers are always looking for away-from-home meal solutions, and ordering online is seen as a convenience option. But that doesn’t mean all restaurants have to head in that direction. It’s just one more solution for this diverse and consumer-driven industry to offer.”

(Source: National Restaurant Association)

The IRS announced its change of plans in Frequently Asked Questions posted on agency’s website Feb. 10.

The NRA and other small business groups met with the IRS Feb. 6 to flag the business community’s concerns with the way the IRS proposed implementing a 2008 law that steps up reporting requirements for third-party payers.

The IRS’s original proposal would have required businesses that accept credit cards or other third-party payments — such as from PayPal — to reconcile the gross receipts they report on their tax returns with the totals that third-party payers report to them using a new 1099-K information-reporting form.

The IRS initially proposed requiring business taxpayers to use a new line on business tax returns to make sure their gross receipts line up with the gross receipts that third-party payers report paying to merchants.

The law originally required the third-party reporting to take effect for payments made after Dec. 31, 2011. After business groups said the proposed reconciliation mandate would create huge paperwork burdens for businesses, the IRS in October postponed the requirement by a year, and last week appeared to abandon it completely.

“There will be no reconciliation required on the 2012 Form 1099-K, not do we intend to require reconciliation in future years,” the IRS said in its FAQ posted Feb. 10.

To make sure the IRS doesn’t try to resurrect the proposal, several members of Congress have introduced bills to prevent the agency from moving ahead with the plan. Senate Finance Committee members John Thune (R-S.D.) and Maria Cantwell (D-Wash.) Feb. 10 introduced a Senate bill, after Reps. Aaron Schock (R-Ill.) and Bobby Schilling (R-Ill.) introduced the same bill in the House.

“The overreaching and unnecessary 1099K tax reporting requirement will create a paperwork nightmare for small businesses,” Thune said.

(Source: National Restaurant Association)

The Restaurant Neighbor and Faces of Diversity programs are part of the NRA’s Restaurant Industry Awards, which celebrate a commitment to diversity and charitable giving. Both awards programs honor those members of the quick service, fast casual, casual, fine dining and contract foodservice segments who best represent the restaurant industry’s ideals.

All individuals employed in the foodservice and hospitality industry are eligible to be nominated for either award, but manufacturers and suppliers are not.

All nominations are due no later than Jan. 7.

The awards will be presented April 16, 2012, at a gala event during the association’s Public Affairs conference in Washington, D.C.

The Faces of Diversity Awards, sponsored by PepsiCo Foodservice, each year honors the efforts of three individuals who, through hard work and perseverance, have achieved success – their own small piece of the “American Dream.”

The Restaurant Neighbor Awards, sponsored by American Express, annually honors four industry members for their outstanding community service and charitable involvement.

For more information on the Restaurant Industry Awards program, visit http://www.restaurant.org/sustainability/industryawards/.

The top 10 menu trends for next year will be:
1. Locally sourced meats and seafood
2. Locally grown produce
3. Healthful kids’ meals
4. Hyper-local items
5. Sustainability as a culinary theme
6. Children’s nutrition as a culinary theme
7. Gluten-free/food allergy-conscious items
8. Locally produced wine and beer
9. Sustainable seafood
10. Whole grain items in kids’ meals

“The top menu trends we’re seeing in our What’s Hot in 2012 survey reflect the macro-trends we have seen grow over the last several years,” said Joy Dubost, Ph.D, R.D., director of Nutrition & Healthy Living for the National Restaurant Association. “Nutrition – especially when it comes to children – is becoming a major focus for the nation’s nearly one million restaurants, in tune with consumers’ increasing interest in healthful eating.”

“Local sourcing of everything – from meat and fish, to produce, to alcoholic beverages – is another big trend for 2012. Local farms and food producers have become an important source of ingredients for chefs and restaurateurs wishing to support the members of their business community and highlight seasonal ingredients on menus,” Dubost added.

“The American Culinary Federation has a long history of working with families to ensure that children receive adequate nutrition, so we are delighted that chefs have chosen to include healthful kids meals in the top 10 menu trends for 2012,” said Michael Ty, CEC, AAC, ACF national president. “We are also pleased to see an emphasis on local sourcing across major ingredient categories, including produce, a vital component of children’s diets.”

Rounding out the top 20 hot menu trends are:
11. Newly fabricated cuts of meat
12. Farm/estate-branded items
13. Food trucks/street food
14. Artisan spirits
15. House-made/artisan ice cream
16. Health/nutrition as a culinary theme
17. Non-traditional fish
18. Fruit/vegetable kids’ side items
19. Children’s mini-meals (i.e. smaller versions of adult menu items)
20. Culinary cocktails

Also included in the survey were questions about technology trends, food trucks, fruit and vegetables on menus, and restaurant gardens.

About one-quarter of the chefs (26 percent) ranked smartphone apps as the hottest technology trend in restaurants in 2012, and another quarter (25 percent) said tablet computers (i.e. iPads for menus and wine lists) will be the top technology trend. Sixteen percent said social media would be the top trend, and the same percentage said mobile/wireless/pay-at-the-table payment options, while 4 percent said QR codes.

When asked how to best follow the USDA’s latest dietary guidelines of increasing fruits and vegetables in Americans’ diet, 55 percent said offering a wider variety of vegetable/fruit side dishes on menus, 19 percent said using more produce in existing recipes, and 16 percent said following MyPlate’s visual guideline of making fruits and vegetables half the plate.

In addition, more than six out of 10 (61 percent) of the chefs said they would consider launching a food truck as an entrepreneurial business venture.

When asked whether the tableservice restaurant where they work has a garden, one-third said that it does, one in 5 said they don’t have space for a garden, and nearly half said they don’t have a garden and rely on suppliers for all their produce needs.

The Association surveyed 1,791 American Culinary Federation member chefs in October-November 2011, asking them to rate 223 individual food items, beverages, cuisines and culinary themes as a “hot trend,” “yesterday’s news,” or “perennial favorite” on restaurant menus in 2012.

In March, WRA became the first state restaurant association in the United States to launch an iPhone app; it was also the first major state trade association in Washington state to have its very own iOS application.

“Being a business owner today is tougher than ever and restaurateurs really need a partner like us working for them,” said Anthony Anton, Washington Restaurant Association president and CEO. “Being first to market amongst our peers is reflective of our commitment to our members.”

The MarCom Awards is one of the oldest, largest, and most respected competitions in the creative industry. This international awards competition recognizes outstanding creative achievement by marketing and communication professionals. There were more than 6,000 entries from throughout the United States, Canada and several other countries in 2011. MarCom Awards is administered and judged by the Association of Marketing and Communication Professionals and winners were selected from over 200 categories in seven forms of media and communication efforts- marketing, publications, marketing/promotion, public service/pro bono, creativity and electronic/interactive.

Since 1997, the Web Marketing Association’s annual WebAward Competition has been setting the standard of excellence for Website development. Independent expert judges from around the world review sites in 96 industries. The best are recognized with a WebAward which helps interactive professionals promote themselves, their companies, and their best work to the outside world. The WebAward Competition is the premier award recognition program for Web developers and marketers worldwide.

Related links:

• 2011 Marcom Awards
• 2011 WebAwards

The awards are part of the NRA’s Restaurant Industry Awards program and honor those members of the restaurant industry that best represent its commitment to diversity and charitable giving.

All nominees must be employed in the industry and suppliers are not eligible to participate. Nominations are due no later than Dec. 5. The awards will be presented at a gala event in April 2012, during the NRA’s annual Public Affairs Conference in Washington, D.C.

“The restaurant industry is one of the most diverse in the country, employing more minority managers than any other business sector, said Dawn Sweeney, the NRA’s president and chief executive. “It is also one of the most charitable in the United States. To celebrate our successes and shine the spotlight on the important role the industry plays in improving the quality of life, we are thrilled to launch this call for nominations for the 2012 Restaurant Industry Awards.”

Sponsored and co-founded by American Express, the Restaurant Neighbor Awards honors outstanding community service and involvement in the field. Participating state restaurant associations select their state finalists who then go on to compete for national recognition. A donation of $5,000 will be given to each of the four national winners to support their charities.

The Faces of Diversity Awards, sponsored and co-founded by PepsiCo Foodservice, celebrates diversity within the restaurant industry and honors three individuals who have achieved the “American Dream” through hard work, dedication and perseverance. Each winner will receive a check for $2,500, which will be donated in his or her name to a ProStart student who is pursuing a career in hospitality.

For more information about the Restaurant Industry Awards, visit http://www.restaurant.org/awards.

It’s OK to brag
Promote your mobile application the same way you would promote any other new initiative or special. Talk about it, show it off, educate your customers, educate your staff. Don’t just let them know you launched an app; explain the benefits, to the restaurant and to the guest. Your FOH staff is your sales force. If employee contests are part of your culture, how about a contest for most tables they get to download the app that night? Conversation starters about your app are as easy as a pin, table tent, coaster, even a T-shirt.

Part of the club
You use different media services to capture different audiences in different ways, extending your reach. In the same way that you always make sure to include your website URL, Facebook and Twitter logos, get in the habit of displaying the appropriate app store logo (iPhone, Android, etc.). Your app does everything these other tools do, but in a much more concentrated and powerful manner. To be effective, it must become an integral part of your marketing habits.

Apps and appetizers
Be creative. There’s more than enough competition, yet somehow you come up with creative and intriguing ways to drive people through your doors. You know your brand, clientele and culture better than anyone else. So do something similar. If events are your thing, have an app launching party, with no cover for anyone who shows you your app.  Specials or Coupons? An ‘Apps and Appetizers’ night offering 50% off a selected appetizer by showing the app would be a good place to start.

“If you build it [brag about it, include it, incentivize others and update it], they will come.”