Foodservice

Wood-fired pizza on paddle
by David Klemt David Klemt No Comments

Slice Releases 2023 “Slice of the Union”

Indie Pizzeria App Slice Releases 2023 Report

by David Klemt

Wood-fired pizza on paddle

The annual Slice of the Union report from independent pizzeria ordering app Slice offers excellent insight into the indie pizza space.

Per the company’s website, Slice serves all 50 states and works with 19,000 pizzerias. For context, that’s a network of pizzerias more than double in size in comparison to Domino’s.

In my opinion, then, the company is well-positioned to deliver data regarding the indie pizzeria space.

Additionally, Slice says they save independent operators money. To date, Slice claims partners have saved more than $265 million in fees that would have gone to third-party delivery services.

In part, that’s due to a 2021 innovation by the company. At the International Pizza Expo in Las Vegas in August of 2021, Slice unveiled fixed-price, tiered packages for partners.

 

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Essentially, Slice intends to help local, indie pizzerias boost their reach, discoverability, and revenue. The company’s mission is “empowering independent pizzerias.” In part, Slice accomplishes their mission to “Keep Local Thriving” by offering indie pizzeria operators access to technology and services that rival the big pizza chains.

Below you’ll find some of the insights from the 2023 Slice of the Union that most stand out to me. To review the report in its entirety yourself, please click here. Not only is it an informative read, it’s actually fun.

Ordering Occasion

Kicking things off, ordering occasions. As all operators should know, many guests seek out particular cuisine, drinks, or venues dependent upon their dining or drinking occasion.

In the 2023 Slice of the Union, Slice takes a look at a couple occasions that motivate people to order pizza: sports and awards shows.

Now, it’s no surprise that people order pizza to enjoy while watching sports. So, since that’s common knowledge, Slice goes deeper and identifies the top sports leagues:

  1. Football
  2. Basketball
  3. Baseball
  4. Hockey

No mention of my two favorites, F1 and MotoGP, but at least hockey makes the cut. (My Vegas side says, “Go Knights!” but my born-in-Chicago side says, “Go ‘Hawks!”)

When we look at awards shows, the top spot may be somewhat of a surprise:

  1. People’s Choice Awards
  2. Tony Awards
  3. Emmy Awards
  4. Golden Globes
  5. The Oscars

Interestingly, the Grammys only manage an honorable mention. And there’s something poetic about pizza being the “people’s choice” for the People’s Choice.

Another bit of compelling data. Slice says that most people buckle and give up on their New Year’s resolution to keep away from pizza on January 13.

What’s in a Name?

There are certainly some creative pizzeria names out there.

However, Slice identifies not just some of the most common names but how many pizzerias use them:

  1. Joe: 206 pizzerias
  2. Sal: 206 pizzerias
  3. Tony: 114 pizzerias
  4. Johnny: 56 pizzerias
  5. Ray: 43 pizzerias
  6. Nino: 21 pizzerias

Flavors on the Rise

Wondering what the top topping is? What Slice sees as the pizza trends to watch?

Well, Slice has the answers to those questions (and more) in their annual report.

Pepperoni, as Slice says, “is a classic.” So, it wouldn’t provide much insight to just say, “Hey, pepperoni is popular.” Operators who offer pepperoni—and why wouldn’t they?—are already aware of its ubiquity.

Instead, Slice identifies the topping that’s showing the most growth. Per Slice, mushrooms has shown up on 8.9 percent more pizzas. Also, ranch dressing showed up on 9.7 percent more pizza orders in 2022.

Now, which trends may gain more significant footholds in the pizza space this year? Slice identifies two in their report:

  • Roman-style pizza
  • Pickle pizza

A Roman-style pizza is thin crust and pushes the toppings out all the way to the edges. A pickle pizza features—shocker—pickles heavily. According to Slice, this style of pizza normally includes a garlic sauce and mozzarella cheese.

Again, you’ll want to check this report out for yourself as there’s much more useful information. Click here to read it now.

Image: Dylan Sauerwein on Unsplash

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Gloved hand pressing down on cheeseburger
by David Klemt David Klemt No Comments

Group of Senators Questions ServSafe

A Group of Senators has Questions About ServSafe

by David Klemt

Gloved hand pressing down on cheeseburger

You probably shouldn’t serve a cheeseburger directly onto a table.

The National Restaurant Association and the ServSafe program are now in the crosshairs of a group of Democratic senators.

I doubt any organization or individual wants to learn that lawmakers have questions for them. For those who may not know, ServSafe isn’t just in a partnership with the National Restaurant Association—the NRA owns the program.

That’s part of why six senators, led by Sen. Elizabeth Warren (D-MA), have sent a letter to the NRA. To describe the tone of this letter in one word, I think “aggressive” is accurate.

The Opening Paragraphs of the Letter

The letter, addressed to NRA president and CEO Michelle Korsmo, can be found here on Sen. Warren’s official website.

However, I’ve included the letter in its entirety below, without the citations of the original:

We are writing in response to a recent New York Times investigation which revealed that the National Restaurant Association (“Restaurant Association” or “Association”) is using millions of dollars in fees paid by food service workers for food safety training courses to instead, “largely unbeknown to [the workers]” – help “fund a nationwide lobbying campaign” against minimum wage increases that would raise these workers’ pay. The Times report revealed that the Restaurant Association, through its ownership of ubiquitous food safety certifier ServSafe, is charging food service employees for employer- or state-mandated courses and then funneling that money into its federal and state lobbying apparatus to fight against basic worker protections like paid sick leave and a livable minimum wage.

According to the report, payments from workers to the National Restaurant Association “provid[ed] about $25 million in revenue to the restaurant industry’s lobbying arm since 2010.” The Association’s use of workers’ food safety course payments – which are mandatory in some states and required by employers in others – is particularly outrageous because workers who take the course are not adequately informed of how their payments are used, and because the National Restaurant Association has, for decades, led the fight against increases in federal, state, and local minimum wages and improved health benefits.

As you can see, Sen. Warren wastes no time making the group’s displeasure known.

The NRA “Owes Workers” an Explanation

If you haven’t read the New York Times article about ServSafe published in January of this year, click here.

The exposé is eyeopening, to say the least. Sen. Warren and her Democrat colleagues appear to be infuriated by what the New York Times revealed about their ServSafe investigation.

You owe workers an answer as to why you are secretly using their funds to lobby against their interests. We are writing to seek clarity into the Association’s rationale for forcing workers to shoulder the cost of the ServSafe courses and for using the funds it collects to fight against pro- worker policies in Congress and state legislatures across the country. ServSafe, owned and administered by the National Restaurant Association, is a food and beverage safety training and certificate program that has become a staple of the food service industry. Upon entering the food service industry, many workers must pay a roughly $15 fee to take a ServSafe course and pass a final exam to receive their certification. To maintain their certification as recognized by the Association, non-managerial employees generally must retake the course every three years, though some states and employers may require more frequent recertification. The National Restaurant Association acquired ServSafe in 2007, and then “helped lobby states to mandate the kind of training they already provided — producing a flood of paying customers.” As a result, at least four large states (Texas, Florida, California, and Illinois) require most food service employees to participate in—and pay for—“food handler” certification, as do many employers in other states.10 While there are alternatives to ServSafe, it remains the “dominant force in the market,” with one competitor noting that ServSafe may have as much as 70 percent of the market share.

What most workers do not appear to know is that the fees they pay for their ServSafe courses are used to fund a sprawling anti-worker lobbying campaign aimed at defeating measures that would improve their own economic security and well-being. ServSafe “doubles as a fund-raising arm of the National Restaurant Association — the largest lobbying group for the food-service industry.” According to tax filings reviewed by the Times, the fees ServSafe collects—ostensibly for the purpose of educating workers about proper food safety practices—have instead “provid[ed] about $25 million in revenue to the restaurant industry’s lobbying arm since 2010.” And as these fees “flowed in from the National Restaurant Association’s training programs, its overall spending on politics and lobbying more than doubled from 2007 to 2021, tax filings show.” The Association “donated to Democrats, Republicans and conservative-leaning think tanks, and sent hundreds of thousands of dollars to state restaurant associations to beef up their lobbying.

I’m curious, of course, about which politicians have received donations from the NRA. This letter is signed by Sens. Warren, Patty Murray, Jeffrey Merkley, Bernie Sanders, Edward Markey, and Peter Welch.

Have any of these senators accepted donations from the Association?

A “Secretive Fee-to-fundraising Scheme”

In this section of the letter, the group of Democrats drop some startling numbers. Additionally, the senators also attacks the Association’s ethics and tactics.

The National Restaurant Association has a lengthy track record of lobbying against federal, state, and local policy proposals to improve the lives of food service and other workers. From 2007 to 2022, the Association spent nearly $46 million on federal legislative lobbying alone. These funds, collected from food service workers across the country, were used to raise the Association’s profile as a “major force in limiting employer-provided health care benefits” and to fight against minimum wage increases. Most recently, the Association successfully fought against the Raise the Wage Act, which would increase the federal minimum wage to $15 per hour over five years and eliminate the subminimum wage of $2.13 per hour for tipped workers; and the Protecting the Right to Organize (PRO) Act, landmark pro-worker legislation that would shore up workers’ right to organize, form a union, and bargain collectively. The Association has also fought aggressively against state- and local-level minimum wage increase.

The National Restaurant Association’s secretive fee-to-fundraising scheme is particularly troublesome given the low pay and poor conditions faced by many of the workers from whom the Association is extracting the money to fund its lobbying machine. In 2018, more than 10 years into this scheme, roughly 40 percent of food service workers qualified as “low-income.” And tipped workers, who make up 98 percent of restaurant workers, are more likely to experience poverty due in part to the stagnant subminimum wage. Furthermore, people of color are disproportionately overrepresented in the food service industry: a March 2022 data brief from the National Restaurant Association itself noted that nearly half of restaurant and food service workers are people of color, compared to 38 percent in the broader labor force. Women make up more than half of the food service workforce, while immigrants make up nearly a quarter. Requiring these workers to fund advocacy for policies that keep their wages down and leave many of them in poverty is unconscionable.

The Questions

Below you’ll find the questions these senators have for the NRA concerning ServSafe.

The group of senators claims the NRA has weaponized ServSafe, referring to their actions as “underhanded and unscrupulous.”

They want answers to their questions by March 3 of this year.

  1. What is the cost to the National Restaurant Association, per program participant, of running the ServSafe program? What is the source of these funds to run the program?

  2. How much, in total annual revenue, did ServSafe take in in each of the last five calendar years?

  3. What s the ultimate disposition of the funds collected by the National Restaurant Association as fees for ServSafe courses? Specifically, how much was spent, in each of the last five calendar years, on:a. Lobbying at the federal level;b. Lobbying at the state level; andc. State and federal campaign contributions to candidates.

  4. Does the National Restaurant Association or ServSafe notify employees of how their ServSafe fees will be used?a. If so, when and how is that notification provided?b. Please provide copies of all documentation provided to ServSafe participants indicating how their fees will be used.

  5. Some food service workers have alleged that the ServSafe courses are a “rudimentary and cursory overview of basic hygiene and cleanliness that would be learned in the first few minutes of any actual employment,”26 raising questions about why the National Restaurant Association charges workers for the course at all. Please provide a copy of all instructional materials and examinations used as part of the ServSafe Food Handler course.

  6. In what states has the National Restaurant Association lobbied to make ServSafe certification mandatory for food service workers? In which states has the Association been successful in passing such a requirement? In which states has the Association lobbied to require ServSafe but been unsuccessful in passing such a requirement?a. How much has the Association spent in each calendar year starting in 2007 on lobbying at the state level to make ServSafe certification mandatory for food service workers?”

I think it’s fair to say that just about everyone in the industry is eager for the NRA’s answers. And also whether the ServSafe program will remain the standard moving forward.

Image: Manu Ros on Unsplash

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Basket of hot chicken wings
by David Klemt David Klemt No Comments

Datassential: The Flavors of 2023

Datassential: The Flavors and Menu Items of 2023

by David Klemt

Basket of hot chicken wings

Food and beverage market research agency Datassential has some data-driven thoughts on the flavors and menu items that will define 2023.

Featured in their latest Foodbytes report are 20 items for operators to consider this year. There are ten food items, drinks, and ingredients Datassential predicts will be on basically every menu.

And there are another ten food items, drinks, and ingredients the agency feels could suddenly hit in 2023.

For you own copy of Datassential’s 2023 Food Trends, click here.

Prolific Performers

As Datassential refers to them in their report, these are the items “that will be everywhere” this year.

Food

  • Birria. This one makes sense as birria only appears to be capable of continually growing in popularity.
  • Mushroom. In Datassential’s opinion, we should expect more menus to feature mushroom snacks. Also, expect to see (or add yourself) lesser-known, rare, and exotic mushrooms on menus.
  • Salsa macha. Over the past four years, according to Datassential, salsa macha as grown a staggering 339 percent on menus.

Drink

  • London Fog. A compelling earl grey tea latte.
  • Mangonada. Salty, tart, fruity, and bold, the Mangonada is a flavorful frozen drink.
  • Ranch Water. Simple, timeless, and refreshing. In 2022, per Datassential, Ranch Water was the fastest-growing cocktail.
  • Soju. According to Datassential, soju is the third fastest-growing spirit on restaurant and bar menus.

Ingredient

  • Spicy maple. As the image atop this article suggests, expect spicy maple to replace or at least give hot honey a run for its money.
  • Ube. A striking purple yam from the Philippines.
  • Yuzu. Datassential predicts this citrus fruit will start showing up on many chain restaurant menus.

Promising Performers

In Datassential’s data-driven opinion, the following items need to be on every operator’s radar.

These are the items that have the potential to “hit it big” in 2023.

Food

  • Pickled strawberries. Interestingly, this matches up with Technomic’s trend prediction for the US, Canada…worldwide, really.
  • Savory granola. Not only on its own but as an element of savory, healthy bowl.
  • Sisig. A Filipino delicacy with pork belly, pig’s face, and chicken liver as key elements.

Drink

  • White coffee. As Datassential states, “there’s always room for coffee innovation on menus.”

Ingredient

  • Black tahini. The appearance of black tahini is quite striking, making for dramatic presentations. And as we know, striking presentations are perfect for social media marketing and engagement.
  • Cannabis. The legalization of recreational cannabis use in almost half of US states is leading to innovation in this space. And as more markets legalize public consumption in the form of F&B items on-premise, restaurants and bars will add cannabis-infused items to their menus.
  • Cherry blossom, or sakura. It seems that cherry blossoms are poised to take off in the US market.
  • Chestnut flower. Per Datassential, this ingredient is gaining popularity for use in winter baked goods.
  • MSG. For decades, restaurants proudly proclaimed “no MSG” or “MSG-free” on menus due to misconceptions. Now that consumers are better educated about ingredients, restaurants are proudly proclaiming their use of MSG.
  • Verjus. An ancient juice made by crushing unripened wine grapes. It can be an ingredient in a sauce, as a condiment, or to deglaze a pan.

There you have it—20 items to consider adding in your next menu update, featuring in your next LTO, or at least keeping an eye on in 2023.

Image: Scott Eckersley on Unsplash

Pink pineapple against pink background
by David Klemt David Klemt No Comments

American Trends 2023: Technomic

American Trends 2023: Technomic

by David Klemt

Pink pineapple against pink background

Foodservice research firm Technomic has some interesting predictions for the hospitality industry in the United States of America this year.

On the topic of operations, Technomic foresees more negotiating power among workers. Additionally, the firm looks at both the economy and pent-up guest demand.

When it comes to food, the US and Canada have a trend prediction in common. And as the image atop this article signifies, a particular color may be a hit on menus in 2023.

Before we jump in, Technomic’s 2023 Canadian trend predictions are here. Last year’s Technomic predictions for America are here. Curious readers can review the firm’s 2023 predictions in their entirety here.

Okay, let’s go!

Think Pink

I want to address this prediction first. According to Technomic, pink is going to be the F&B color of 2023.

As they explain, the color is fun, nostalgic, and photogenic. Yes, operators must still consider the Instagram-worthiness of their menu items. That may change one day, but it’s not today.

Per Technomic, pink also signals that a food or drink may have antioxidants.

Some of the items the research firm names specifically: pink pineapple, pink salt, pink celery, cara cara oranges, and schisandra berries.

Pickle It

This is the culinary trend that, per Technomic, Canada and America will share in 2023.

Along with fermenting, pickling gives the kitchen and bar teams a unique experimentation method to explore. So, encourage these teams to get creative and add pickling and fermentation to your next menu update.

Of course, that’s not the only reason to consider putting pickling front and center. For many, these preparations indicate a healthy F&B choice. Think kombucha, as an example.

As we know, healthy choices continue to be top of mind for many guests.

One more note: Technomic suggests being transparent and identifying the pickling and fermenting processes your team leverages to produce each menu item.

Economics

For those looking for a bit of optimism in these trying times, Technomic may have what you’re looking for. This year’s report, What We Foresee for 2023, says the following about the possibility of a recession:

“There is reason for optimism in the coming year, however, as any recession is expected to be relatively mild.”

Yes, that’s just one source’s opinion. However, Technomic is known for their voraciousness when it comes to data. So, if this firm is optimistic it could be a solid sign that things are looking up in 2023.

“Pent-up consumer demand” and variations thereof have been making the rounds since 2o21. However, it’s still a relevant phrase.

As it pertains to 2023, Technomic believes on-premise dining may “bounce back” this year. In fact, the firm suggests that people want to socialize and dine in person now more than ever.

Also, delivery and pickup times appear to be growing. So, plenty of people will see in-person dining as the more appealing option in 2023.

Operations

In part due to legislation addressing minimum wage and workplace conditions, employees may have the upper hand this year.

Add the fact that many people seeking work know many operators are dealing with a labor shortage and their negotiating position looks even stronger.

So, we could finally be in for a significant change when it comes to how the industry looks at compensation. More and more workers—and the guests they serve—are taking issue with tipping. Instead, many people outside and inside of the industry want to see operators pay staff a competitive, living wage.

Of course, there are also the hospitality professionals who prefer tips to minimum wage. In 2023, the industry could experience the start of a sea change. Time will tell.

For more predictions and this Technomic report in its entirety, please click here.

Image: Alex Gruber on Unsplash

"Be optimistic" sign on black door
by David Klemt David Klemt No Comments

5 Toxic Mindsets that Hinder Success

5 Toxic Mindsets that Hinder the Success of Your Business

by Jennifer Radkey

Your frame of mind matters, and if you want a team and business that’s thriving and growing, it’s time to examine your own mindset.

How you show up day to day in your business and in your life will either hinder or promote your success. Like the popular phrase goes, “It starts from the top.”

You can set the tone for the day with the energy you bring. As Anese Cavanaugh, author of the book Contagious You, states, “Whatever we put out there and whatever we take on affects our ability to influence, lead, and create the impact we want.”

A positive mindset is contagious: it can inspire, motivate, and make others feel good. A toxic mindset is equally as contagious: it can halt growth, increase unhappiness, and lower productivity.

Here’s a list of five toxic thoughts that lead to a negative mindset and can hinder success.

Blame Game

Always looking for someone else to lay the blame on when things go wrong is a surefire way to a toxic team environment. If you’re quick to blame others when things go wrong, perhaps it’s time to take a step back and examine why something went wrong in the first place.

Was there inadequate training provided? Are there no clear systems to follow? Do you have an environment that’s hostile to asking for help? Fault rarely lies in one person only; there are typically several factors in play.

A positive mindset will examine facts, look at all potential causes, and then come up with solutions. Blame never enters the picture.

Second Guessing

Not being confident in the choices you make hinders growth. Uncertainty in your decision making leads others to question or doubt your role as leader.

If you don’t have the utmost confidence in making decisions, and it’s your business, how can you expect your team to have confidence in you or the work that they do?

This doesn’t mean that you have to make snap decisions without thinking them over. Planning and deliberating over the right move to make is critical to success. But once the decision is made…it’s made. If it doesn’t work out you can then problem solve to get back on the right path.

Second guessing your decisions along the entire way is only going to slow you and your business down.

Absolutism

“It’s my way or the highway.” Absolutism is the inability or refusal to consider others’ ideas. This toxic thought process destroys team culture and growth.

As an owner, you’re heavily invested in your business. Therefore, it can be challenging to let go of how you think things should be done and consider different approaches. However, failing to listen to the ideas of others on your team will build walls and possibly create resentment. That’s definitely not a positive atmosphere to work in.

Be open-minded to doing things differently and show interest in the recommendations of others to promote instead of hinder success.

Hyper-negativity

Sometimes when you want to succeed it’s easy to zone in on the negatives: “This isn’t good enough.” “We aren’t making enough money.” “We don’t have enough followers online,” etc.

The desire to do well can make you hyper-focused on what isn’t right in order to fix it, instead of noticing what’s really great and celebrating that instead. Yes, you need to be aware of areas that need improvement, but you also need to be equally aware of the positive and promote it.

Think of a conversation with two random people you meet at a party. The first person grumbles about the weather, complains about the food, music, etc., and scowls. The second person is smiling, laughing at jokes, and genuinely interested in getting to know you.

Who would you rather be around?

Settling for Average

Nothing will kill growth and success faster than settling for the way things are because “that’s the way it’s always been,” or because “it’s working.” You want more than just “it’s working.”

You want to thrive, to make more money, to gain more followers, to hire more team members, to open more locations. If you aren’t living your absolute best life, if your business isn’t performing at its absolute highest level, then there should be no settling.

Settling for average teaches your team to settle for average, and that means your customer is settling for average. Avoid this toxic mindset by continuously setting goals (even small ones) and looking for ways to do better, feel better, and be better.

While it’s completely normal to fall into these toxic thoughts from time to time, it’s refusing to allow them to become you daily mindset that’s important.

The amazing thing about the human mind is that it can be changed—you can work on improving your mindset. Trust me when I say that you will not regret it.

Cheers to professional and personal growth!

Image: Nathan Dumlao on Unsplash

Boxer being knocked back by punch
by David Klemt David Klemt No Comments

FAST Act Dealt Knockdown Blow

FAST Act Dealt Knockdown Blow

by David Klemt

Boxer being knocked back by punch

A bill we think is one to watch, California’s Fast Food Accountability and Standards Recovery Act, may be on the ropes already.

Assembly Bill 257, known as the FAST Act, is “on hold” until 2024. So, while the Save Local Restaurants coalition and voters have yet to kill the bill, it may be out on its feet.

We reported two months ago that fast food chains were moving quickly to kill the FAST Act. It appears that the initial attack on AB-257 was successful.

That is, the chains and coalition got what they want: the ballot initiative vote has knocked down AB-257.

For those unfamiliar with the Save Local Restaurants Coalition, the following organizations are members: The National Restaurant Association (NRA), US Chamber of Commerce (USCC), and International Franchise Association (IFA). Further, fast-casual and QSR chain coalition members—including Starbucks, In N Out, McDonald’s, and Chipotle—threw nearly $13 million at the ballot measure that halted FAST.

What’s FAST?

To read AB-257, the FAST Act, in its entirety, click here.

In summary, FAST:

FAST does the following:

  • establishes the Fast Food Council, ten members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will operate until January 1, 2029;
  • defines “the characteristics of a fast food restaurant“;
  • gives the Fast Food Council the authority to set “minimum fast food restaurant employment standards, including standards on wages, working conditions, and training“;
  • provides the council the power to “issue, amend, and repeal any other rules and regulations, as necessary”; and
  • allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Voters effectively stopped California from implementing FAST until November 2024 at the earliest. (That is, if the California Secretary of State verifies that the referendum effort did indeed secure the required amount of signatures.)

Opposition

A statement from Save Local Restaurants reads, in part:

The quick-service restaurants targeted by the law – which include coffee shops, juice bars, pizzerias, delis, and salad shops – already operate on small, single-digit profit margins. These include more than 10,000 small businesses, including thousands of women- and minority-owned businesses.

If these restaurants are forced to absorb the costs, the result will be bad for workers and local communities. To survive, many restaurant owners will have no choice but to reduce worker hours or introduce automation. Some may choose to leave their communities entirely or go out of business.

As is often the case with overreaching California policies, this is likely only the beginning.

Additionally, the National Restaurant Association, a member of the coalition, has said the following:

The impacts of the FAST Act won’t be limited to quick service restaurants in California. The law allows the new regulating council to set a higher minimum wage for quick service restaurants. Independent restaurants will, however, be forced to increase their pay to match, so they can remain competitive when recruiting and retaining workforce.

Takeaway

We believe this bill is one to watch because similar efforts could spring up in other states. Also, just because the bill is on hold until 2024 in California doesn’t mean other states aren’t working on similar legislation right now.

Now, there are obviously two sides to consider. Opponents, as we see above, say FAST will raise prices, eliminate jobs, and hurt families.

Proponents believe FAST will protect the health, safety, and welfare of fast-food workers. Additionally, the Fast Food Council could increase the minimum wage for fast food workers above California’s $15.50 minimum (effective January 1, 2023).

We’ll keep an eye on FAST over the next couple of years. Perhaps the coalition can work with California on a bill that protects fast food workers and doesn’t hurt operators and the communities they serve.

At any rate, FAST is down but certainly not yet out.

Image: Johann Walter Bantz on Unsplash

Single-use plastic straws and utensils
by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

US Capitol Building and cloudy sky
by David Klemt David Klemt No Comments

Is Restaurant Revitalization Back?

Restaurant Revitalization Back on the Table?

by David Klemt

US Capitol Building and cloudy sky

After watching the Restaurant Revitalization Fund die a slow, painful death earlier this year, three senators are trying to help the industry again.

Three Democratic senators seem to think that the RRF battle isn’t over. Senators Ben Cardin (D-MD), Sherrod Brown (D-OH), and Patty Murray (D-WA) are trying once again to help RRF applicants. As a refresher, Sen. Cardin is among the original RRF legislation authors.

Last Thursday, the senators introduced the Restaurant Revitalization Tax Credit Act. Now, before we get into the details, it appears this bill is a stop-gap of sorts. A statement from Sen. Murray suggests as much.

Per a statement from Sen. Muray, the “Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat.”

It’s safe to say a significant number of operators prefer replenishment of the RRF to a tax credit. However, this could represent a step in the right direction.

The Restaurant Revitalization Tax Credit Act

For those with an interest in dissecting the bill, the text in its entirety is here.

In summary, here’s what Sens. Cardin, Brown, and Murray want to see become law: a payroll offset of $25,000. Of course, it’s not that simple—there are requirements and nuances.

First, the only eligible restaurants are RRF applicants who didn’t receive a grant. Second, the restaurant must prove:

  • operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

Additionally, applicants must have been operating at least as far back as March 14, 2020. There’s also a payroll tax requirement: the applicant restaurant must have paid the taxes in at least two quarters in 2021. But wait—it doesn’t end there.

Restaurants with ten or fewer employees could offset a maximum of $25,000 in payroll taxes for the entirety of 2023. However, for every employee over ten, the refund cap drops by $2,500.

So, this bill appears to target very small operations for assistance. Assistance, we can only hope, that’s meant to help until the Senate and House replenish the RRF.

After all, Sen. Murray did say this bill—”bills like,” to be precise—is meant to “help keep restaurants afloat.”

It’s difficult to view this effort through anything but a skeptical lens given what happened earlier this year. And hope, as the saying goes, isn’t a strategy. But I suppose this bill represents a glimmer of hope that the estimated 175,000-plus RRF applicants who never received a grant may still get the help they deserve.

Image: J. Amill Santiago on Unsplash

Cheesy chicken sandwich on paper wrapper
by David Klemt David Klemt No Comments

The NRA’s 2023 Culinary Trend Forecast

The National Restaurant Association’s 2023 Culinary Trend Forecast

by David Klemt

Cheesy chicken sandwich on paper wrapper

Ahead of the beginning of a new year, the National Restaurant Association unveils their culinary trend predictions for 2023.

The report is the result of a collaboration between the NRA, Technomic, and the American Culinary Federation (ACF).

For those unfamiliar, Technomic is at the forefront of foodservice trend tracking, industry research, and analysis. Likewise, the ACF is a premier industry organization. Tracing its founding to 1929, the ACF promotes “the professional image of American chefs worldwide through education of culinarians at all levels.”

To predict what will be “hot” next year, the NRA, Technomic, and ACF sent the 17th annual What’s Hot survey to thought leaders and chefs. In direct partnership with the Technomic Menu Research & Insights Division, the NRA predicted the top menu trends from 110 items spanning 11 categories.

Now, this isn’t a full dive into the report in its entirety. Rather, we strongly encourage our readers to download a copy of What’s Hot 2023 Culinary Forecast for themselves and their teams.

What readers will find below are the top 10 trends for 2023. Additionally, we’ll share the top three macro trends for next year, as forecast by the NRA and their partners.

More than Food

Somewhat surprisingly, the NRA’s top-ten list of culinary trends isn’t just a list of food items. Instead, this forecast paints a picture of where restaurants are heading in 2023.

While there are some specific cuisine predictions, the NRA’s top culinary predictions show us, in part, how consumers want to experience the restaurants they visit.

  1. Southeast Asian cuisines (examples: Vietnamese, Singaporean)
  2. Zero waste/Sustainability/Upcycled foods
  3. Globally inspired salads
  4. Sriracha variations
  5. Menu streamlining
  6. Flatbread sandwiches/Healthier wraps
  7. Comfort fare
  8. Charcuterie boards
  9. Fried chicken sandwiches and Chicken sandwiches “3.0” (example: fusion of flavors)
  10. Experiences/Local culture and community

As we can see, operators and consumers expect tighter, more concept-specific menus. Also, comfort foods; shareable (and “Instagrammable”) items like charcuterie boards; and items that show local and global influences may be hot in 2023.

One can consider, then, streamlining their menu to include their top sellers along with local and/or global flavors authentic to their brand.

Below, readers will see that three of the trends above make up the NRA’s top-three 2023 macro trends:

  1. Menu streamlining
  2. Comfort fare
  3. Experiences/Local culture and community

Operator and Consumer Behavioral Shifts

Looking at the macro trends, it’s reasonable to believe the past few years will influence 2023 heavily.

Operators are dealing with inflation, higher costs for everything, labor shortages. Further, according to Datassential, more than a third of American operators are experiencing low traffic and sales levels.

We can expect these issues to follow us into 2023, at least for Q1 and Q2. Therefore, the NRA’s macro trends forecast makes sense. Streamlining menus often leads to streamlining the back and front of house. In turn, doing so can lower costs and boost staff retention.

On the consumer side, it appears comfort foods, chicken sandwiches, and experiences are driving visits and online orders. These are, as we all know, behavioral shifts we can trace back to the start of the pandemic.

We always suggest proceeding with caution, logic, and data when considering embracing trends. Missing out on trends can be just as costly as latching onto a trend too late.

That said, the macro trends certainly seem reasonable. Only time will tell, but the NRA’s 2023 forecast certainly contains several items operators and their teams should give serious consideration.

Image: Arabi Ishaque on Unsplash

Empty, broken plate on floor
by David Klemt David Klemt No Comments

169 Grants May be the End of the RRF

169 Grants May be the End of the RRF

by David Klemt

Empty, broken plate on floor

UPDATE: According to some sources, the report of $180 million in “leftover” RRF money are inaccurate. The disbursement of $83 million represents the final release of RRF funds.

The $83 million in grants going out this week to 169 recipients may be the end of the Restaurant Revitalization Fund in its entirety.

Unfortunately, it’s possible last week’s awards represent the final grants. This, despite the Government Accountability Office (GAO) finding $180 million in funds in July.

As far as the sources of these funds, that topic remains a bit vague.

However, the story is that more than $150 million are the result of clawbacks. More than a third, if reporting is accurate, is the result of recipients or financial institutions returning grants. Reports indicate another $24 million come from the SBA setting aside $24 million for litigation.

Per the National Restaurant Association months ago, the American Rescue Plan Act of 2021 does not include a provision for a litigation fund. Therefore, the NRA called for the SBA to disburse that money to RRF applicants.

What we do know is that last week’s RRF grant recipients should be receiving their funds this week. According to the SBA, 169 recipients were awarded a portion of $83 million in RRF money.

Again, that’s money the GAO found back in July. It’s also less than half of the reported $180 million the government agency found this summer.

Given the fact that the SBA announced a disbursement of just 46 percent of the “leftover” funds, many believed another round was in the works. Sadly, that may not be the case. It’s possible—and increasingly likely, regrettably—that the rest of the $180 million in funds won’t go to grant applicants.

Now, I want to be clear on one important point: I’m relieved for the 169 grant recipients. I truly hope the funds arrive in time to help them and their teams.

While I’ll feel disappointment if a second round of the $180 million never materializes, I’m happy for those who received a portion of the $83 million awarded last week.

Frustration

So, where does the industry go from here? The failure of Congress to replenish the RRF left a reported 150,166 applicants with zero assistance. According to Nation’s Restaurant News, it would have taken $41 billion to award each applicant a grant. Obviously, $180 million was never going to serve to help that many applicants.

Frustratingly, the answer to the question above appears to be: Move forward on our own. And that unsatisfactory answer has flooded with me opinions.

One opinion? Our industry, it seems, is always left to fend for itself. Despite the millions of people hospitality employs, lawmakers and politicians don’t seem willing to assist us—and therefore their constituents—in meaningful ways.

Another opinion? Perhaps we need to build a more powerful lobby to have our voices heard. Such an effort began in earnest to support the RRF. However, too many elected officials were comfortable refusing to replenish the fund.

A third opinion was shaped by Eileen Wayner, CEO of Tales of the Cocktail. As a guest on the Bar Hacks podcast she addressed the perception of operators and hospitality workers as being adaptable and resilient.

While those characteristics can be admirable, Wayner expressed something I think we all feel: Sometimes, we’re tired of being resilient. Sometimes, we’re tired of being expected to adapt. There are times our industry needs help.

When you’re constantly seen as resilient, people believe you don’t need assistance. What we’ve seen with the RRF and its failed replenishment is that too many people with the power to help can write us off. “They’re resilient,” they say. “They’ll figure it out. They’ll be fine.”

Well, we’re not all “fine.” We needed help, and we deserved it.

Image: CHUTTERSNAP on Unsplash

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