Restaurants Trade News

DineBlast Mobile Enhances Customer Dining Experience with Wi-Fi-Based Service [top]⇑

Innovative Chain Froots is the First to Implement Nationally

NEWS RELEASE

MARGATE, Fla. (BUSINESS WIRE)  SoftTouch LLC today announces that it has incorporated significant enhancements to its newest solution, DineBlast Mobile, which allows take-out, curb-side, quick-service restaurant and table service patrons to use their mobile phones and PDAs to electronically place an order and pay for their meal while at the restaurant. DineBlast Mobile enables what is known in the industry as "line-busting, in which customers can bypass long lines and tedious checkouts." Along with this new service upgrade, Froots Smoothies will be rolling out the technology in 10 locations across the country with plans to deploy at over 40 locations in 2009.

"The goal of DineBlast Mobile is to truly strengthen the diner experience and help restaurant owners keep up with customer demand," said Michael Paycher, SoftTouch, LLC. "We have evolved the concept of online ordering into a more practical utility where customers don't have to preplan their orders. Diners simply show up at the restaurant and with a few clicks on their phone, they are empowered to place orders, pay for their meal, request drink refills, and even text message their server."

Froots Smoothies ( http://www.froots.com/ ) is a national chain offering healthy alternatives to traditional fast food fare. The restaurants are best known for its smoothies made only with all-natural ingredients, fresh squeezed juices, and its full menu of healthy gourmet wraps, salads and soups. As an organization catering to a young clientele (18-35 year olds), this transition to supplement service with online capabilities was a natural progression.

"Froots has always perceived itself as an innovative player in a very niche market, with innovation-hungry customers," said Charlotte Russell, Executive Vice President of Franchise Development, Froots. "Ten years ago you would never think that people would be so reliant on the Internet or mobile phones, however this now seems like the natural progression that all restaurants should be considering. We're excited to start using DineBlast Mobile and are pleased to be on the forefront of this new form of customer service."

DineBlast Mobile will enable Froots customers to connect their smart phone or laptop to the DineBlast Mobile Wi-Fi network and instantly route to an order selection screen, where a fully interactive menu allows the customer to:

• Enhance Table Service - unlike traditional quick-service restaurants, patrons can order food directly from their table instead of having to wait in line.
• Place orders to-go - with curbside ordering, users are a few clicks from receiving their meal without ever leaving the car.
• Place "My Favorite Orders" - users can save their favorite or most repeated orders for quick ordering and pick up. Now with one-touch ordering, a morning or lunch ritual can be completed even faster!
• Provide Customer Crucial Feedback - users have the ability to complete customer feedback surveys in order to provide restaurants with valuable diner experiences.

To view a demo of DineBlast Mobile, please visit: http://www.softtouchpos.com/DineBlast/Presentation.html

Source: MarketWatch ( http://www.marketwatch.com/ )

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5 Top Restaurant Trends for 2009 [top]⇑

By Chris Urban

Restaurants may be facing the toughest New Year in recent memory, but opportunities are still present for operators that know how to focus their efforts where it really counts-on the consumer. The coming year will see even more of a 'buyer's market' than 2008, making it especially essential for restaurants to recognize and respond to consumer preferences.

In particular, food industry consulting and research firm Technomic sees these five trends as looming large in 2009:

1. Experimentation and innovation will flower.
   An upside of operators' struggles will be innovations resulting from experimentation with new menu items, delivery services, price/bundling schemes and unit designs (including smaller, more efficient footprints).
   
2. Ethnic flavors continue to star.
   As one of the most significant ways that operators can signal differentiation, expect to see more regional ethnic cuisine with flavors specific to a certain country or area, such as regional Italian entrees, Jalisco-style Mexican fare, and Korean or Vietnamese instead of just 'Asian.'
   
3. 'Local' is the magic word.
   In response to growing consumer interest in all things local, restaurants will make greater use of local food sourcing and regionalized menu offerings. This trend will also generate stronger consumer support for local restaurant operators.
   
4. Goldilocks serving sizes: big, little and just right.
   Expect more small-plate, prix-fixe and bar menus, in addition to more family-style entrées that can feed two or more. Operators will also zero in on large-order catering, particularly for business events.
   
5. Kids' menus will be up-scaled and expanded.
   Restaurants are moving their kids' menus beyond the mac-and-cheese comfort zone with items that reflect their signatures-for instance, a crab cake on the children's menu of a seafood restaurant-along with more specialty beverages and smoothies.
   

For additional food industry trend-tracking insights from Technomic, contact Chris Urban at 312-506-392

Source: Restaurant News Resource ( http://www.restaurantnewsresource.com/ )

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How to Cut the Fat and Keep the Sizzle [top]⇑

By Roberta Chinsky Matuson

It seems like everyday a friend tells me they have to lay someone off. Is this a sign of the times or simply poor management? Surely there must be a better way to slice costs in the restaurant business, without leaving a sour taste in everyone's mouth.

Here are five ways to cut the fat and keep the sizzle:

Dump the non-performers

We both know who they are and so does everyone else in your organization. These are the people who have been on probation for the past year and in some cases, since the day they started. They are the ones who show up late for a shift and in some cases, fail to show up at all. They are not making it, nor will they ever. Dump them, before your customers dump you.

Ask the staff

No one knows better how to reduce costs than the people on the frontlines. Before lowering the quality of your ingredients or reducing service levels, ask your staff for suggestions on how to trim the fat. Acknowledge their ideas and implement those that are feasible.

Analyze turnover

The cost of employee turnover can be devastating to restaurant operations that operate on slim profit margins. It is important to closely examine employee turnover. Are good people leaving? Or are you losing bad hires? If good people are leaving, you may be having a problem with management. If you are losing poor performers, then the issue is directly related to your hiring process. Figure out ways to cut employee turnover and watch profits soar.

Invest in your people

This may seem counterintuitive when economic times are tough. However this is exactly what must be done to retain the people on your team, who carry more than their share of the work load. Pay them competitive wages and provide incentives so they feel valued. In turn they will make your customers feel appreciated.

Reduce the layers of management

Larger organizations tend to have a few extra layers of fat in between workers and senior management. Is it any wonder why it can take months for senior management to learn about problems that could have been readily fixed if only they had known earlier? A middle layer of management may have been necessary before you invested in technology. Is this still the case?

Restaurants are fighting to survive in these economic times. Those that cut the fat, without cutting the sizzle will do more than survive. They will thrive in any economic climate.

Roberta Chinsky Matuson is the President of Human Resource Solutions ( http://www.yourhrexperts.com/ ) and has been helping companies align their people assets with their business goals.

Source: Restaurant News Resource ( http://www.restaurantnewsresource.com/ )

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In Tight Times, Restaurant Owners Look For Ways To Hold On To Customers [top]⇑

By Dave Gallagher, The Bellingham Herald

Restaurants are feeling the pinch from the recession, but owners will be facing more challenges in the coming months.

With consumers cutting way back on spending the past couple of months, several economic surveys indicate that eating-out is usually first on the budget-chopping block. Combine the slowdown in spending with increases in food costs and another big increase in labor costs in January - when Washington state's minimum wage jumps 6 percent - and it adds up to one of the toughest stretches the state restaurant industry has seen in quite some time.

A shift in eating out would have an impact on the overall economy because restaurants play a big role in it. There are around 400 restaurants and drinking establishments in Whatcom County, which brought in $261 million in sales last year, generating more than new and used cars ($227 million), building materials ($175 million) and food and beverage stores ($102 million).

Don White is one of many local restaurant owners trying to adapt to the terrible economic conditions. White, owner of Skylark's Café in Fairhaven, said he started marketing his Economic Bailout prices on his menu earlier this year when the stock market volatility started, but he's glad he stuck with it.

In my marketing, I like to remind people about the affordability of eating at Skylark's, but it's been very important this year, White said. Fortunately we're viewed as a less-expensive restaurant, so it hasn't been too bad yet. I am concerned, though, because it's early in this (economic) process, and the Pacific Northwest tends to be behind these trends. We still have some tough times ahead.

While the industry has gone through recessions in the past, this may be the first true recession that tests the current dining experience, said Anthony Anton, president and CEO of the Washington Restaurant Association. A generation ago, people went out to restaurants only on special occasions, such as a birthday or anniversary. In recent years people have dined out much more often, averaging around five times a week.

It will be interesting to see if there is a cultural change, Anton said.

The impact of the recession is already being felt. So far this year, there have been 24 restaurant closures locally; in 2007 there were 11.

For many Whatcom County eateries, it is a matter of adjusting to the times. Jesse Cantu, who has owned Jalapenos Family Mexican Restaurant for nearly 10 years, said the number of people coming into his restaurant is about the same as last year, but the amount they are spending is less.

The customers are more likely to skip some parts of the meal, such as the appetizer or dessert, Cantu said. We understand that, so it's important to continue to be consistent with the food and service. People still want to go out and have fun.

Anton said across much of the state, restaurants are seeing fewer people and those who are going out are spending less. The numbers are more likely to be lower where unemployment is becoming a significant issue. While the unemployment rate in Whatcom County was 5.2 percent in October, the overall state rate was 6.3 percent.

The slowdown for restaurant owners may become more acute after the holidays. January and February tend to be among the slowest months of the year at restaurants, and Whatcom County's unemployment rate usually goes up after the holiday shopping season.

ADVICE FOR RESTAURATEURS

White has noticed a similar trend at his restaurant where the number of people coming in is similar to last year, but they are spending less. His breakfast sales are up year-over-year, however, and he thinks heavily promoting his $3.99 breakfast has helped.

We had been working on building our breakfast crowd, so I was glad to see the growth, especially during the weekdays, White said.

Promoting lower price point meals is a good strategy, Anton said, much better than trying to cut costs by buying less expensive ingredients.

It's important to maintain your identity and not make changes your customers won't like, Anton said.

It's also a time to go review the basics, such as making sure employees know the first names of all the regular customers and they are served quickly, Anton said.

One challenge that White is wrestling with is what to do the minimum wage increasing 48 cents an hour to $8.55 an hour Jan. 1. In the past he's given everyone on his staff the same percentage increase, but 6 percent raise is quite a jump in the current economic climate.

It's not just labor costs; food prices haven't gone down much, either, White said. I'm still getting fuel surcharges, but now they are just called surcharges.

Anton said he would expect menu prices to go up at many restaurants soon after the new minimum wage goes into effect.

There's just no choice for many; the margins at restaurants are just too small and many places are already running on skeleton crews, Anton said.

While the challenges ahead are a tall order, White expects owners will continue to find ways to make it work.

For many entrepreneurs, running a restaurant is more about making it a place people enjoy coming to and less about the money, White said. Now's the time to be conservative; to not go on vacation and be there for customers. I think it's a time for that blind enthusiasm you had when first starting a restaurant.

Source: The Bellingham Herald ( http://www.bellinghamherald.com/ )

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Change for the Better: Customer Service [top]⇑

By Christy Hendricks

CAPE GIRARDEAU, Mo. - Two words...customer service. For many of us, it brings up bad memories of waiting in a long line or not being waited on at all in a store or restaurant.

"Almost anywhere you go, anywhere and I've been to other cities, it seems like there's a lack of guest service and that's kind of frustrating especially in the guest service industry," said Garrett Thorne, the general manager of the Hardee's restaurant in Cape Girardeau.

He says he's seen a deterioration in the service industries in the past five years.

"It seems like a lot of people nowadays don't have that same structure or ethics to want to come in and do a great job everyday," Thorne said. "Why that is I don't have the slightest clue."

Thorne says it's about attitude, something the employees at J.C. Penney at the Westpark Mall in Cape echo.

"What we do is we hire the smile and we train the rest. With our hiring process we try to hire of course knowledgeable people," said Karla Hillemann, training supervisor at J.C. Penney in Cape Girardeau. "We want people that are friendly and outgoing and courteous and that's really important too."

In fact, day one of employee training at J.C. Penney focuses entirely on customer service.

"We spend some time talking about what's important to a customer, why it's important to a customer and how we can in turn deliver that to a customer," said Sarah Grigaitis, J.C. Penney store manager.

No surprise, top on the list..."Courtesy and respect is number one. They want to be treated with respect while they're here. They want us all to be courteous. They don't have to be here to spend their money," said Grigaitis.

Grigaitis says other priorities for customers include, "Clean fitting rooms, clean bathrooms. The quality of merchandise is always way toward the top."

"Our motto is that the guest doesn't get up from their seat unless they're using the restroom or leaving the restaurant. So if they need anything, soda refills, purchase any other item, it's up to us to provide that service for them," Thorne said.

Employees say they're two main things customers can do to improve customer service...communicate what you want and be respectful.

So if you pick something up you don't really want to buy, put it back where you got it.

Other tips include, shopping earlier or later in the day to avoid peak rush times.

Have patience and turn off your cell phone when placing an order.

"Just treat everybody with courtesy, and dignity, respect. Things you know, kind of Golden Rule kind of things that seems to be lost a little bit," Thorne said.

And a little chivalry never hurt either.

"There's a man that comes through everyday and he brings us roses to make us smile," said Sherra Bolton, employee at Hardee's.

Source: 12 KFVS Heartland News (www.kfvs12.com)

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Study: Online Recruiting Should Diversify, Not Replace, Traditional Hiring [top]⇑

By Dina Berta

GOLDEN, Colo.-Looking to deflate a high turnover rate among hourly employees, the 53-unit Good Times Burgers & Custard chain based here has stopped accepting applications at its stores.

Instead, job seekers are directed to the Internet, where their applications are automatically assessed for attitude and availability. Managers then can focus on interviewing only those candidates that are highly rated and predetermined to be a good fit with Good Times' culture, said human resources director Gary Staton.

But while the decision to screen candidates online puts Good Times among a growing group of restaurant operators that are using the Internet to streamline the application process and identify better-qualified candidates, human resources experts warn that the process does have limitations and should supplement, not replace, more traditional methods of employee selection to ensure that a diverse array of applicants has access to job opportunities.

For that reason, Staton insisted on finding a screening service that had an alternative to Internet applications. Good Times' job seekers can also apply by dialing an automated phone service.

"I was uncomfortable just using the Internet," Staton said. "What about people who do not have access to the Internet? What are they going to do?"

Industry analysts report that Internet recruiting is up, particularly among quick-service operators that have yet to be stung as badly as casual-dining chains by current drops in consumer spending and traffic. But while Internet recruiting is less expensive and can help screen candidates better, operators still need such traditional recruiting methods as referrals, walk-ins and community outreach to maintain and encourage a diverse workforce, observers said.

A recent study of job applicants by JobApp Network Inc., a Troy, Mich.-based provider of application screening and assessment tools for online and telephone, found that minorities and women were less likely to use the Internet to apply for jobs, and more likely to use the phone.

More than 80.9 percent of nonminorities applied online, versus 19.1 percent who used the phone, the study found. Among minorities, less than 58.7 percent used the Web, while 41.3 percent used the phone. The study looked at the preferences of more than 26,000 applicants in foodservice and retail.

Access to the Internet may still be an issue for minorities, said JobApp researcher Edgar Johns. "The hardest penetration of high-speed Internet access has been in the suburbs, I think largely due to the average higher income in the suburbs than urban areas," Johns said. "In rural areas, while there might be the income to afford high-speed access, the technology is not there."

Johns cited a 2008 report by the Pew Internet Project that found only 55 percent of U.S. households have broadband Internet access. Households bringing in $75,000 a year were 2.5 times more likely to have Internet access than those bringing in less than $30,000.

Internet use is definitely related to income and age, said hospitality recruiter Clive Solomon. Young people, including minorities, with average incomes are the easiest population to reach with online tools.

"With those over 60 and lower-income people, we need to look to alternatives to reach these audiences than just the Internet," said Solomon, a co-founder of the Association of Hospitality Recruiting Executives.

The Internet is proving to be an efficient recruiter for operators, however.

Snag-a-Job.com , an employment site for hourly jobs, has noted that more restaurants no longer accept walk-in applications, but instead are directing people to go online for positions, either through their own company site or employment sites.

"More restaurant clients are tightening up their branding and selling their company message more than ever before on postings and company websites," said Kelly Lobanov, a spokeswoman for the Richmond, Va.-based company.

The cost is a fraction of newspaper classifieds, and restaurants are becoming more innovative, using social networks, blogs and video sites like YouTube to reach applicants, said Teresa Siriani, president of People Report, a firm in Dallas that tracks human resources practices for restaurant companies.

"That kind of action gets noticed by employees," Siriani said. "When you communicate to them in a way they like to communicate, it speaks volumes."

The percentage of hourly workers hired through the Internet has grown from 6 percent in 2005 to 14 percent in 2008, according to People Report's latest Survey of Unit-Level Employment Practices.

Foodservice management company Sodexo, which has more than 6,000 clients in the United States, uses the Internet to find management candidates, using not only job sites but also conducting virtual job fairs on social-networking sites.

About 36 percent of its management candidates from Internet sources are minorities, said Arie Ball, vice president of Sourcing and Talent Acquisition for Gaithersburg, Md.-based Sodexo.

"Still, due to potential Internet access limitations, as well as disabilities that may restrict computer use, Sodexo offers multiple options of posting résumés to our applicant tracking system," Ball said. "Frontline and hourly employees also are encouraged to complete applications in person at many of our client accounts."

Since Good Times began rolling out its new online and telephone application processes in October, about 40 percent of hourly job seekers are using the phone to apply, Staton said. Good Times contracted with JobApp to do the screening.

The restaurant chain already has a very racially diverse workforce, Staton said, and the new process should allow it to maintain that diversity.

"I know a lot of applicants whom we hire do not have convenient access to the Internet," Staton said.

Source: Nation's Restaurant News (www.nrn.com)

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