To Our Valued Subscribers:

First, a slightly belated but Heartfelt Happy Valentines to our clients and candidates. We do love you for sure. Without your continued support, we cannot be a presence in the Foodservice, HVAC, smallwares, product development and supply chain disciplines. THANK YOU!! While Valentine’s Day recalls images of caring and affection, a recent article in Forbes, authored by Senior Contributor Kim Elsesser, may have executives rethinking the way emotions are expressed. The story recaps the rise and fall of McDonalds former CEO and their Director of Human Resources. Both left under difficult circumstances and their legacy of fraternizing with staff led to their leaving. The story provides some guidelines the New CEO (Chris Kempczinski) has instituted and I believe that there is a message that we all can use. Here are his guidelines:

*Be Inclusive: no private get togethers with just senior executives.

* Executives Must Meet in Small Groups: Rather than a party atmosphere , show employees you care by actually Listening to what they have to say about how to reach the organizational goals and take the opportunity to reinforce what the values and the goals of the company are striving to be.

* Interact Electronically: as time is a resource to manage use it effectively to continually encourage and thank those doing a good job for the firm.

I think if it works for McDonalds’, it might work for everyone. Give it a shot. Another tip is to stay on top of our industry so enjoy the latest edition of American Recruiters Global Foodservice News. Happy Valentine’s Day and THANK YOU for your continuing support.

Craig Wilson

President

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Introducing the New Owner, CEO and President: Josh Egan

We’re incredibly excited to announce Josh Egan as the new Chief Executive Officer and President/Owner of San Diego Restaurant Supply (SDRS) and Food Service Design Group (FSDG), effective December 31, 2019. Josh Egan is a respected leader and a commercial foodservice industry professional with 21 years’ experience. He began his career in 1999 as a manufacturer sales agent in the Southern California market. In 2005, Josh moved on to San Diego Restaurant Supply to lead the contract sales department. Excelling in his role, he shortly became the Director of the contract sales department and in 2017 promoted to Vice President of SDRS/FSDG. Josh Egan has been the primary factor of developing SDRS/FSDG to what it is today. Josh has devoted his time not only focusing on the build contracting department with refining equipment sales, estimating, installation, he has also put processes in place for our in-store equipment and smallware sales, external institutional sales, warehousing systems, deliveries, accounting, human resources and design. He motivates and inspires the SDRS/FSDG team to exceed desired results for all clients and assure a seamless project from start to finish. “I’m extremely honored to take over a company that already has a solid industry foundation.” Josh said. “I am ready for the future and see nothing but greatness for our company”.

Tod Firotto, who has been President of San Diego Restaurant Supply and Food Service Design Group for the past 45+ years building what his father started in 1958. Tod has decided to move on to the next phase of his life and will be transitioning into retirement this year. “It is with the heaviest of hearts I announce my retirement, but I am excited for what the future holds as Josh takes over ownership as the President/ CEO” Tod said. “I know our employees, our existing clients and future clients will be in great hands with Josh as their leader.” BUILD: San Diego Restaurant Supply (SDRS). Whether you are starting from just an idea, replacing equipment, in need of a remodel or simply looking to put the last fork in the drawer or pot/pan on the shelf, SDRS has the capability to cover all your needs. SDRS provides the commercial food service industry with quality equipment, installations, smallwares and supplies. We provide and install all commercial equipment elements, such as equipment, custom stainless steel, refrigeration, ventilation hoods and fire suppression systems at very competitive price points. For over 60 years we have designed and built restaurants locally and nationally, proudly maintaining a lengthy list of satisfied customers who add to our solid reputation. DESIGN: Food Service Design Group (FSDG). It is our goal to provide the client with a positive and integrative experience while presenting them with an exceptional design package exceeding expectations. FSDG ensures a seamless project from start to finish keeping in mind the client’s budget, equipment cost and creative desires. This team features innovated integration of the overall design with operational efficiency and code compliance. Our decades of food service design expertise allow us to ease the mind of the client as they watch their project come to life. FSDG’s overall background and history illustrates a driven, respected, honest, trustworthy group of highly skilled individuals with food service design. Source: San Diego Restaurant Supply (SDRS) and Food Service Design Group (FSDG), San Diego Restaurant Supply (SDRS) and Food Service Design Group (FSDG). Source: SDRS/FSDG.

Meet the Technology Innovators on Nation’s Restaurant News’ 2020 Power List

Who are the most influential people in foodservice? Find out in this gallery of Nation’s Restaurant News’ annual Power List. This year’s list features 50 leaders in technology and innovation. These men and women show that real power comes not from adapting to change – but from creating it on your own terms. Selected by the editors of Nation’s Restaurant News, the Power List is made up of people bringing game-changing technologies and unrivaled creativity to the biggest issue facing restaurants today – delivery, digital ordering, customer experience and sustainable sourcing. You’ll find restaurant executives, entrepreneurs, chefs, investors, food scientists and pioneers in sustainability, logistics, robotics and marketing. This year also marks the return of the Top 10 ranking. Click through for the full list – including our pick for the No. 1 most powerful person in the restaurant industry. You can also, and check back next week for the Reader Picks – restaurant industry power players nominated by our readers. – Source: NRN.

Global Coffee Alliance Helps Boost Starbucks Sales

A “healthy balance” of comparable sales growth, new store development and continued expansion of its global coffee alliance with Nestle S.A. helped fuel an “exceptional” quarter for Starbucks Corp., said Kevin R. Johnson, president and chief executive officer. “The positive business momentum we’ve created over the past fiscal year continues with a strong start to fiscal 2020,” Mr. Johnson said in a Jan. 28 conference call with analysts. “I’m especially pleased that we delivered meaningful margin expansion in the quarter even as we continued to invest in the key areas to support sustainable growth, first and foremost in our partners as well as in beverage innovation and digital customer relationships,” he added. Net income in the first quarter ended Dec. 29, 2019, totaled $885.7 million, equal to 74c per share on the common stock, up 16% from $760.6 million, or 61c per share, in the same period a year ago. Revenues increased 7% to $7,097.1 million from $6,632.7 million. Patrick J. Grismer, chief financial officer, said Starbucks’ Americas segment delivered revenue growth of 9% in the first quarter, driven by 6% comparable sales growth and 3% net new store growth. “Our U.S. business delivered an impressive 6% comp sales growth in Q1 driven equally by transactions and ticket,” Mr. Grismer said. “These results were driven by an improved partner-led in-store experience, a strong beverage lineup and increased digital customer engagement. Beverage led on comp growth for a sixth consecutive quarter, driving approximately five points of comp sales growth with strength across all beverage categories, with food contributing the remaining point. “Our cold platform continues to resonate with customers during all seasons and was our primary growth engine for the quarter led by cold coffee.

Importantly, the growth in cold beverages in Q1 occurred in all dayparts and all regions, reflecting broad appeal across our customer base.” Excluding a 7% adverse impact of the sale of Tazo-branded products to Unilever and transition activities related to the global coffee alliance, revenues within Starbucks’ Channel Development segment increased 5% in the first quarter. John Culver, group president of international, channel development and global coffee and tea, elaborated on the segment’s success during the first quarter. “Through the quarter, we saw acceleration into 40 markets around the world where we have our products available through grocery as well as food service,” Mr. Culver said. “We also are on path, by the end of this quarter that we’re in, to be in over 50 markets. Our product sales continue to be significantly ahead of expectations, both in terms of packaged coffee, Nespresso capsules as well as Dolce Gusto. When you look at our core business here in the U.S., Starbucks brand outgrew the total category for coffee. Roast and ground share grew 80 basis points, K-Cup share grew 40 basis points, and we’ve got some exciting new items that are coming up. “Later this spring, we previously announced that we’re launching premium soluble coffee, which we’re excited about and the big opportunity internationally with that. And then the launch that we had with our creamers of four flavors, we’re now expanding to an additional two new flavors given the recent success. So the global coffee alliance itself is performing very well around the world, and it’s helping us continue to grow the Starbucks brand and amplify the brand.” Starbucks’ executives said they will continue to monitor the coronavirus situation in China, which is the company’s lead international market. Mr. Johnson said Starbucks has two key priorities for China: caring for the health and well-being of its partners and customers in its stores and playing a constructive role in supporting local health officials and government leaders. To date, Starbucks has taken action to close more than half its stores in China but continues to offer delivery from stores that remain open. Mr. Culver called China a “very complex situation,” but he said Starbucks has been in the market for 20 years and has built an admired and trusted brand that should be able to weather the recent challenges in the country. “We’ve navigated complex situations before,” Mr. Culver said. “And in China, we feel there’s no other company that’s better positioned to navigate this given our relationship … and trust we’ve been able to build with our partners and the relationship and trust that they’ve been able to build with their customers. We will remain transparent as the events continue to unfold, but we do have complete confidence in the decisions that we’re making, and we will continue to provide complete support for our partners and for the people of China as they navigate this situation.” – Source: Food Business News.

Yum Brands Names New Chief Brand Officer at Taco Bell, and New CFO at KFC

Yum Brands, under new CEO David Gibbs, on Thursday announced major leadership changes at the company’s three quick-service brands including naming KFC leader Kevin Hochman as interim president of the struggling Pizza Hut division. Hochman’s turnaround experience and ability to improve distinctive brands through innovation “make him ideally suited for this opportunity,” Gibbs said during the company’s Thursday morning fourth quarter earnings call. The KFC executive will continue his responsibilities as president of the chicken chain’s US division, a role he’s had since 2017. Yum said Hochman will be “supporting Pizza Hut Global CEO Artie Starrs who is devoting more time to his global role to ensure the success of the Pizza Hut International and U.S. businesses.” The interim appointment comes as Pizza Hut reported a 2% drop in global same-store sales and a 4% decrease in the U.S.  “Pizza Hut U.S. continues to be a business in transition and for the last three years we’ve made improvements in food quality, speed of service, our loyalty program and upgrading our technology for online ordering and delivery,” Gibbs said. Hochman is credited with lifting sales at the quick-service chicken chain when he resurrected brand ambassador Colonel Sanders as part of the brand’s “re-colonelization” marketing strategy. That plan called for creating brand campaigns that resonated with consumers, including adding appealing value offerings. “He is using that same playbook at Pizza Hut,” Gibbs told investors. He said it is too soon to talk specific tactics. However, Hochman has started talking to franchisees, who are excited to have him join the Pizza Hut team. “Kevin and team are working closely in partnership with our U.S. [Pizza Hut] franchisees, many of whom have the capital capability and commitment to continue driving this turnaround,” Gibbs said. Broadly, the turnaround formula for Pizza Hut, which has been closing units, includes delivering “a great customer experience with the best tasting pizza, unbeatable value, distinctive food innovation, a best-in-class digital experience and modern assets.” When Pizza Hut and other Yum Brands divisions deliver on those attributes, “we grow sales consistently,” Gibbs said. During the call, Gibbs named new corporate leaders at Taco Bell and KFC. Nikki Lawson is Taco Bell’s new chief brand officer and Shannon Hennessy is the global chief financial officer at KFC. – Source: NRN.

Where and When Local Restaurants Can Win

According to The NPD Group, there were more than 460 billion in- and away-from home eating and drinking occasions in 2018. And it’s been well documented where the shift is taking place. Restaurant visits from 2014–2018 declined by more than 700 million, per NPD, while 14 percent of in-home occasions included at least one item that required no preparation, up from 11 percent. So what that tells us, dressed down, is the prepared and convenience-centric space, whether through delivery, take-out, grocer or C-store, has disrupted restaurant traffic. In a June report from NPD, the company noted that restaurant digital orders, defined by meals or snacks ordered via mobile app, internet, or text message, rose 23 percent over the past four years and now represent 3.1 billion visits and $26.8 billion. The firm expects that figure to grow by double-digits through 2020 across all channels, including delivery, on-premises, and carryout. Customers continue to gravitate to digital orders for reasons beyond simple convenience. In NPD’s survey, guests cited no waiting; the ability to order, pay, and have it ready; ordering at my “own” pace; and earning rewards/feeling valued. Additionally, mobile apps represented 60 percent of digital orders, and customers flocked to them for savings, customization, and rewards. The market-share battle is simply being fought on new fronts these days. There are fewer customers to compete for in terms of dine-in traffic, but the outlets to buy food are expanding. In five years, the midscale/family dining full-service category has lost 500 million visits, NPD said in July. The casual-dining segment has held steady as of late, however, after four years of declines. This multi-tier dynamic, where guest counts aren’t robust, might just be the new normal for many restaurants. But NPD’s data suggests it’s leveling out. Thanks, in part, to off-premises expansion and higher checks, in and outside the restaurant.According to Statista, 34 percent of customers spend at least $50 per order when ordering food online. Despite all of this, however, it’s worth keeping in mind that dine-in traffic remains the heart of the full-service industry, and always will. Even some of the largest adopters, like Chili’s, glean just 17 percent of their total sales outside the restaurant. And of that, delivery mixes 5 percent. Data shows that customers who place an online order with a restaurant will visit that venue 67 percent more frequently than those who don’t. The bottom line being, as digital orders and accessibility boom, execution and four-wall service actually gains in importance; It doesn’t decline. As Darden CEO Gene Lee often touts in response to Olive Garden’s delivery resistance, dine-in business can actually inspire off-premises orders. And that’s a key way to protect the value proposition. It guards against trying to build all of a restaurant’s sales through new digital, third-party customers, which muddies brand equity. Incremental business is great (those customers who weren’t dining there otherwise), but trying to completely cover faltering transactions with app-loyal delivery users is likely not a viable strategy long-term. Let the food and experience speak for itself, and then open the points of purchase.

Let’s focus on the local level.

For independents, and chains on the ground level, understanding buying trends is always critical, especially with labor costs, staffing, and trying to predict peak business. Womply, a software company serving small businesses, recently released its 2020 State of Local Restaurants Report. By analyzing transaction data from 36,000 local, independent restaurants in all 50 states during every day of 2019, the company took a deep look at when stores are doing the most business, and when they seat the most guests. “As in years past, our 2020 report reveals that restaurants are a strong and consistent business in local communities nationwide,” says Brad Plothow, VP of marketing and communications at Womply. “In fact, the average weekend provides a better sales bump than most prominent holidays, suggesting that patrons are regularly out in force at local eateries. The state of local restaurants is strong.” The company viewed transactions, ticket size, daily sales revenue, and total revenue in the report.

How much do local restaurants make on an average day?

Womply found that restaurants in the U.S. brought in $1,350 in revenue on a typical day. The average restaurant processed about 47 transactions daily while seeing customers spend an average of $28.43 per ticket. Let’s break it down by state. As you can see below, Vermont’s restaurants brought in the highest average daily revenue at $1,916. Rhode Island led in ticket at $37.20. North Carolina was home to America’s busiest restaurants, processing 66 transactions on an average day. Unsurprisingly, restaurants turned in their best performance on weekends, with a combined total of 54 percent of all average weekly restaurant revenue coming from Friday through Sunday. Fridays were the busiest. Yet people spend the most on Saturdays and Sundays. Womply’s data shows a slowdown to start the year (those resolutions) but a pickup in February that stays pretty consistent for a while. There are fall and winter dips and summer peaks. The single-biggest week of the year proved to be June 10–16. May, June, July, and August each accounted for at least 9 percent of total yearly spending. January and February brought in 6.8 and 7.1 percent of total yearly consumer spend, respectively. The days that matter (but how much?). Mother’s Day weekend was so big, by Womply’s calculations, it accounted for the top day of the year for restaurants in 27 states. Enough people went out to eat to generate the No. 1 and No. 2 days of the year during the holiday. Father’s Day claimed the No. 3 spot. 1. May 11 (Mother’s Day weekend); 2. May 12 (Mother’s Day); 3. June 15 (Father’s Day weekend); 4. March 30; 5. April 13. “Nationally, the report revealed highly consistent sales patterns for local restaurants year over year. In general, revenue as a percentage of annual sales is highest when the weather is warmest,” Plothow said. “However, we also uncovered many counterintuitive findings, such as Super Bowl Sunday, Valentine’s Day, and Cinco de Mayo are all fairly average days in terms of consumer spending. This indicates the day of the week is a stronger indicator of how busy your restaurant will be than if it is a prominent day. Consumer spending often defies conventional wisdom, and we want to share these insights to help restaurateurs better understand their customers and run more profitable businesses.” To explain that further, Valentine’s Day actually ranked just 94th out of all 365 days in terms of revenue. Super Bowl Sunday was in the bottom half ore revenue days for the year at No. 228. Cinco de Mayo and St. Patrick’s Day were No. 93, and No. 117, respectively. In sum, planning for events will always be a big draw for restaurants. You don’t want to miss the dance. But it’s the day-to-day and weekend-to-weekend grind where lasting success takes place. – Source: fsrmagazine.

The Importance of Training and Development for Restaurants

The hospitality industry has one of the most diverse workforces. It offers a huge spectrum of different career opportunities, and each has its own role to play within this vast and still expanding field. These roles, though, may or may not require a specific level of educational attainment. The only criterion that we believe is required across all positions is the dedication to provide the best service to people. This is not a bad thing. In fact, it’s one of the things that we love about the hospitality industry. Anyone with that degree of care will thrive. There’s less discrimination. On the other hand, this also makes training and development more crucial, especially when compared to other industries.

Service and Skill

After all, dedication alone is not enough to provide the best service. You also need the know-how to do so. It’s a common misconception that providing service is a simple thing to do, but the truth is, excellent service is a complex process made up of different elements that should be played in harmony with each other like an orchestra.

The Brand

And as if providing stellar service is not complex enough, you also need to factor in the brand of each company. Have you ever noticed the details that make establishments unique? Some focus on extra amenities, others offer a personalized care package as a welcome gift, others are known for their signature breakfasts. These are not simply add-ons that big hospitality institutions offer to go the extra mile, but they are actually reflections of the brand and specific company values that they want to represent. As such, these should be consistent across all branches. This shifting focus means that just because you served for 10 years in another institution, doesn’t mean that you can express (and use) that same training and experience in another one. The training and development programs must be tailor-made to serve the overall company name.

Return of Investment

Let’s not forget that restaurants are not charitable institutions. They provide service because that’s their selling point. The better the service provided, the higher the profit. By investing in people, the faster your ROI will be. Speaking of investment, it can be quite difficult for a new business to take flight especially with the saturated market and the competition that comes with it. If you need the extra money to provide the necessary training and resources for your employees, then know that there are options (such as applying for payday loans online), that you can explore.

Providing Awesome Human Experiences

Here’s the deal: when you provide service in the hospitality industry, you are also providing human experiences. Take note, the keyword here is “human.” This means that there will be times when things will simply go wrong. It can be the employee’s fault, or the guest’s, or (as is the case more of the time), it’s no one’s fault. It’s part of the business. However, you can significantly minimize the repercussions of these issues if your staff is fully trained on how to handle them.

In fact, knowledgeable staff can turn this experience into an opportunity to provide a more enjoyable and memorable experience if it is handled in an empathic, friendly, and positive way.

Safety and Security

Since we’re talking about unexpected negative experiences already, we believe that there is nothing worse than having your guest’s safety and security at risk. Anything can happen at a hotel or restaurant. Someone can choke, drown, or have a medical emergency.

You see, training and development in the hospitality industry don’t just involve learning how to serve food, or how to present one’s self to other people. They also cover what to do during emergency situations such as how to perform first-aid, or even CPR if needed.

Free Marketing

By providing excellent service and handling these unexpected issues and emergencies with finesse, you can be sure that people will hear of it through their own testimonials and reviews online. What’s more, is that the hospitality industry is a repeat business. This means that it maximizes profitability by ensuring that their clients come back for their services frequently. It’s definitely more affordable to keep your patrons coming back for more than to spend on marketing new customers to come in.

On the other hand, negative experiences will find its way through the grapevine as well. Don’t underestimate the consequences of poor reviews. Not only will it damage your establishment’s reputation, but it will also make it difficult for your business to recover should you decide to improve it in the future.

Reducing Employee Turnover

Aside from receiving negative reviews, here’s another factor that can cost you a lot: high employee turnover. The effort and time it takes to look for new applicants and interview them, the resources you spend to give them basic training, and finally, the loss in production as you get your new hires up to speed—all of these can add up and cost you thousands of dollars lost.

The problem is because there’s a high employee turnover, most owners believe that they should lessen this “loss” by providing less training and development opportunities. After all, who wants to invest in training if employees will just run off after some time, and worse, work for the competition using the training that you’ve provided them? Yikes. However, we should also consider the fact that adequate training and growth opportunities can significantly boost employee satisfaction and loyalty, reduce turnover, and provide lifetime careers that will all benefit the company. Training and development are important regardless of what industry your company belongs to, but it is more crucial to service-oriented businesses like the hospitality industry. That’s because it helps add value to the experience that your employees provide to your clients. Hence, whenever you’re considering whether you should provide ample learning opportunities for your employees, remember this: it will always be an investment worth doing. It not only reduces loss and costs, but it also increases employee loyalty and expertise. The perfect formula for any strong hospitality establishment. Good luck! – Source: fsrmagazine.

Imagine Colonel Sanders voicing KFC’s Alexa skill

Amazon announced that it will now work with brands to help them make custom text-to-speech voices for their Alexa skills. Imagine, for example, that you’re ordering KFC using KFC’s Alexa skill, but instead of the default Alexa voice replying to you, it’s Colonel Sanders himself. That’s what Amazon’s going for here, and it’s something that Amazon and KFC actually developed. The brand voices are offered through Amazon Polly, an AWS service that previously supplied neural network-based text-to-speech services for companies to use to add realistic voices to their applications. Now, though, Amazon is offering its neutral network-based TTS technology to create custom voices for a specific brand based on recordings of voices of an actor or actress picked by the brand in partnership with Amazon. It’s similar technology to what Amazon used to make the Samuel L. Jackson Alexa voice that it introduced in September. Jackson didn’t record every single phrase that he can say as Alexa — instead, he recorded audio of his voice that Amazon’s neural text-to-speech models can translate into natural-sounding responses. With today’s announcement, it now seems as if any brand that wants to work with Amazon can build an Alexa skill with a custom voice. Colonel Sanders’ voice in the KFC skill is actually pretty impressive, if you were wondering — you can hear a snippet of here. Hopefully somebody makes a Kool-Aid Man-voiced Alexa skill next. – Source: The Verge.

Who Regulates Ghost Kitchens?

Whether it’s called a ghost kitchen, virtual kitchen or cloud kitchen, these spaces are difficult to define, and perhaps even harder to regulate. But the New York City Council’s Small Business Committee gave it a try. A ghost kitchen by any other name is a kitchen housed outside of the walls of a brick-and-mortar storefront, and often it’s a shared commissary kitchen. These facilities are used by new and established restaurant brands to serve off-premise customers. New York City has its fair share of these businesses, and traditional restaurant owners are beginning to worry that they’re eating into their business, among other concerns. The NYC Council’s Small Business Committee, headed by councilmember Mark Gjonaj, has investigated various factors impacting restaurants in the past. Previously, Gjonaj led a hearing on the impact of food delivery apps on the restaurant industry. This hearing was set to address the impact of ghost kitchens. CEOs of two ghost kitchen operators, Zuul Kitchens and Kitchen United, spoke on a panel before the committee, as well as a representative from the Department of Health, a member of the Small Business Council and several independent restaurant operators. New York-based Zuul Kitchens counts the famous midtown deli Sarge’s as a customer. Corey Manicone, a co-founder of Zuul, argued that his company helps restaurants expand their reach. By operating out of Zuul Kitchens, which is located in downtown Manhattan, Sarge’s is able to deliver below 14th street in Manhattan. This delivery radius is nearly impossible from the restaurant’s physical location. “[Ghost kitchens] allow for businesses to grow in a fashion that requires less capital and less financial risk,” said Jim Collins, CEO of California-based Kitchen United, during the hearing. Both facilities operate under a similar model. The restaurant operator pays a flat monthly fee and pays either 15% of every order for additional services for Zuul or 15% for orders that come through the brand’s digital channel at Kitchen United. “I started Kitchen United because I was seeing the impact of consumer delivery and wanted to create a better solution to meet rising consumer demand,” said Collins. CBRE Research estimates that a ghost kitchen can cost as little as $20,000 to open compared to the millions it costs to open a brick-and-mortar restaurant in New York City. Ghost kitchens worry traditional restaurants, who think these facilities give an unfair advantage to businesses because they pay in less overhead. Additionally, restaurants that operate without a storefront aren’t subjected to the same permitting processes as brick-and-mortar restaurants. Another concern for these restaurants and for chairman Gjonaj is that ghost kitchens will drive out local independent businesses. A subject Collins was eager to respond to. Collins said that 30% of any Kitchen United space is reserved for a bigger chain, but the other 60% is reserved for small businesses. Local restaurants may be gaining access to these shared kitchens, but Gjonaj is also worried about the bustling workforce in the city. There are about 27,000 restaurants in the city that employ over 270,000 New Yorkers. Gjonaj is thinking about job loss. The committee also brought up another matter—a lack of regulation. The New York City health department is known for a rating system that includes letter grades displayed on the front of each restaurant. The restaurant brands that operate out of ghost kitchens are rated for health code violations, and the letter grades can be found on the Department of Health’s website as well as inside each kitchen location. But these letter grades are less accessible to consumers than those at traditional restaurants, and Gjonaj questioned the current process of grading restaurants operating inside of ghost kitchens. If there’s a violation in a shared space, such as a corridor all restaurants use, who gets the violation? The owner of the lease, New York City Health Department official Corinne Schiff said. She is the Deputy Commissioner for the Division of Environmental Health for New York City. In this case, the lease owner would be Zuul or Kitchen United or their competitors. But these ghost kitchen operators are not rated on the alphabetical scale in the same way as restaurants. These facilities have health ratings don’t affect the restaurants inside the ghost kitchen, meaning there could be violations that consumers don’t know about. “If you’re going to operate a shared facility, there should be shared responsibility,” said Gjonaj. Schiff struggled to explain the process and admitted to a “lack of transparency.” Gjonaj and the committee were unsatisfied. While an immediate resolution wasn’t clear, the committee said it is set to announce its first set of legislation governing food delivery platforms. – Source: NRN/National Restaurant Association.

Restaurant and Foodservice Equality

For many of the 102 million people who tuned in to the Super Bowl this past weekend, the game probably didn’t seem much different than those in years past. However, anyone who attended the game and marked the occasion with a meal at the stadium was part of a moment that made Super Bowl history — for the first time ever, a woman was head chef of the big game. Dayanny De La Cruz oversaw the menus for the 167 suites, 25 concession stands and seven restaurants in Miami’s Hard Rock Stadium. Leading a staff of more than 2,500 to present her Miami-inspired menus gave De La Cruz the kind of opportunity and exposure that is often hard to come by for women in foodservice. About one in five professional chefs are women, but representation of women chefs in the media is disproportionately lower. Far too often, women in foodservice are passed over for development opportunities and promotions in favor of their male counterparts, and they get paid 28.3% less, according to a 2016 study from Glassdoor. Fortunately, the past few years have given rise to a number of programs and initiatives aimed at leveling the playing field. Grubhub partnered with Women Chefs & Restaurateurs to launch RestaurantHer.com in 2018, which features a national database of eateries owned or run by women. That same year, James Beard Award-winning chef Edward Lee started the LEE Initiative, which connects novice women chefs with established professionals for training and support. Two years prior, in 2016, advertising agency The Food Group launched Reset the table as part of the Common Ground initiative, which includes the agency’s parent company, WPP.

The project has continued to grow since then, debuting a refreshed website and an email newsletter in 2020. “As a communications agency, we believe our strongest contribution is our voice,” said Pam Bevilacque, SVP of client services and strategy at The Food Group. “We created this inclusive destination as a platform to provide women in our industry equal access to, and opportunities for, media exposure. Fueled with original and curated content, the platform brings together stories that are insightful and, we hope, inspiring. We highlight equality issues facing the foodservice industry and share ways to overcome them through profiles and peer experiences, as well as expert advice.” Gender inequality in the foodservice industry stems from many causes — from lack of advancement due to financing, leadership and networking opportunities, to healthcare and paid parental leave. Women are twice as likely as men to sacrifice their career for family, a survey conducted by Reset the Table and Datassential found. More than three-quarters (77%) of survey participants said they believe the choices women have to make to balance work and family are a main reason why women earn less overall. To help combat the challenges women face in the workplace and foster growth, Reset the Table compiles resources such as job listings, events and information on the National Restaurant Association’s ServSafe Workplace program and the Family Medical Leave Act. A series of interviews highlight women in foodservice, such as chef Domoniwue Crenn and Jen Pelxa, owner of the all-women led and funded champagne bar, The Riddler. The industry spotlight series takes a wider focus than just chefs and restaurateurs to share insights from women in fields including food media and tech. “We also wanted to feature women in non-traditional foodservice roles to show that not every foodservice job puts you behind the line or on the restaurant floor. There are many very successful women in our industry who aren’t in traditional chef roles,” Bevilacque said. “We want to share those successes and hopefully inspire new paths our audience may not have been aware of before.” – Source: Smart Brief.

Del Taco taps Hackbardt for CMO

Tim Hackbardt is returning to Del Taco Restaurants, Inc., as chief marketing officer. He previously was vice-president of marketing at the Mexican-American quick service chain from 1999-2003. Mr. Hackbardt rejoins Del Taco from BrandTrip Partners, an international restaurant consulting firm, where he was chief executive officer. During his tenure the firm worked with several chains, including BJ’s Restaurant and Brewhouse, IHOP, Steak N’ Shake, Del Taco, Johnny Rockets, Pieology and more. Before that, he was interim c.m.o. at Pieology Pizzeria. He also was vice-president of marketing at Rubio’s Restaurant Group, Inc., and senior vice-president of marketing at The Johnny Rockets Restaurant Group, Inc. “We are pleased that Tim has rejoined Del Taco permanently as our chief marketing officer,” said John D. Cappasola, Jr., president and chief executive officer of Del Taco. “Over the last three decades, he has successfully driven strategies and innovation to attain one of the best track records in the industry for consistent, long-term performance. Tim also has a deep, hands-on appreciation of Del Taco’s differentiated Q.S.R.+ positioning and of the importance of being nimble. I am confident that he will be a tremendous asset to our company.” – Source: NRN.

Boston Market promotes Eric Wyatt to CEO

Eric Wyatt has been promoted to chief executive officer of Boston Market Corp. He succeeds Frances Allen, who is leaving the company for a new opportunity. In his new role, Mr. Wyatt will oversee a newly created “office of the CEO.” that includes Caryn Doyle, chief financial officer, and Randy Miller, chief administrative officer and general counsel. Mr. Wyatt joined Boston Market in September 2018 as chief operating officer. Before joining Boston Market, he was vice-president of operations at Panera Bread for three years. Earlier, he was vice-president of store operations at Bath & Body Works. He spent seven years at Starbucks Coffee Co. in a variety of roles, including vice-president of business planning, implementation, testing and drive-thru, and regional vice-president. He also worked at Taco Bell Corp. and Mobil Oil Corp. Mr. Wyatt received a bachelor’s degree in speech communications at East Stroudsburg University of Pennsylvania. “The renewed energy and excitement now surrounding Boston Market is palpable from the restaurants to the support center,” Mr. Wyatt said. “The fun has returned in multiple ways, from investments in our workforce to our fresh new marketing and messaging, to more contemporary recipes, to delivering an entirely new, more compelling experience for guests that has dramatically improved satisfaction levels. I am honored to take on the role as c.e.o. and work collaboratively with this dynamic c-level team to build on our momentum and execute on our plans for moving forward. ” – Source: NRN.

The Coffee Chain Wastes no Time in Announcing Two New Airport Expansion Partnerships

Less than a week after announcing the end of its exclusive agreement with airport foodservice company HMSHost — part of travel foodservice company Autogrill Group — Starbucks is already expanding its airport presence with the announcement of two major partnerships: airport retailer and restaurateur Paradies Lagardère and airport hospitality group OTG Management. Starbucks is entering a licensing agreement with both major airports concessions companies and promises to introduce a “re-imagined customer experience,” with new stores opening at later this year at Paradies Lagardère and OTG airport partners around the country.  This marks the first time Starbucks will be able to work with licensees outside of HMSHost since the first Starbucks opened in an airport terminal 29 years ago. “In airport locations, we specifically look to licensed business partners that bring the knowledge and capabilities to reach more air travelers,” Starbucks said in a press release. “…We expect to work with other likeminded operators in the growing industry over time to meet increasing demand.” But don’t expect to see only identical walkup Starbucks experiences at airports across North America. Starbucks envisions new store concepts like a popup Starbucks with digital and mobile ordering capabilities that will be capable of gate-to-gate coffee delivery service for busy travelers who don’t have time to stand in line and wait for their latte. Starbucks said it plans to use these two new partnerships as a jumping-off point to expand its footprint in airports across North America. Paradies Lagardère operates in major international airports including John F. Kennedy International Airport in New York City, Newark Liberty International Airport in New Jersey, LAX in Los Angeles, McCarran International Airport in Las Vegas, Austin-Bergstrom International Airport in Texas, Orlando International Airport in Florida and Seattle-Tacoma International Airport in Washington. “We’re extremely pleased with this new opportunity to work with Starbucks. There’s no doubt that this is a historical moment in our industry and the addition of Starbucks to our brand arsenal aligns perfectly with the growth strategy of our Dining Division,” said Gregg Paradies, president and CEO of Paradies Lagardère. OTG’s major airport partners include LaGuardia Airport in New York City, Philadelphia International Airport in Pennsylvania, and Ronald Reagan Washington National Airport in Washington, D.C. “OTG is thrilled to be forging this new and exciting partnership with Starbucks,” Rick Blatstein, CEO of OTG, said in a statement. “This collaboration will allow us to introduce a fully re-imagined Starbucks customer experience, ensuring guests access to their preferred cup anywhere in the airport.” – Source: NRN.

Whataburger names Janelle Sykes CFO

Whataburger Inc. has hired Janelle Sykes as its new chief financial officer, the company said. The San Antonio-based burger brand also said it has promoted Sylvester “Sly” Johnson to chief data and analytics officer. He most recently served as Whataburger’s chief accounting officer. Sykes, left, succeeds former CFO Ed Nelson, who was promoted to presidentof the brand July 1 after the family-owned Whataburger sold a majority interest to BDT Capital Partners of Chicago. Sykes most recently served as CFO of San Antonio-based C.H. Guenther & Son Inc., a food products company, where she oversaw all aspects of accounting, tax, treasury and internal audit and helped with the due diligence, financing and acquisitions. Nelson said in a statement that “Janelle has deep knowledge and experience around a wide range of business areas – not just finance – that will help the brand reach new heights.” To further strengthen its leadership team, Whataburger also recently promoted Johnson, left, to oversee the strategic development for Whataburger’s data analysis and reporting across the enterprise. “Sly’s ability to analyze and synthesize data and explain it in a way that people can understand is incredible,” Nelson said. “In this new role, he will be critical to helping Whataburger unlock the value of our data and put it to use as we continue to serve our loyal customers and attract new ones.” Whataburger, founded in 1950, has more than 830 locations in 10 states and systemwide sales of more than $2 billion a year. – Source: NRN.

Roti Modern Mediterranean Names Justin Seamonds CEO of Fast-Casual Restaurant Chain

Rōti Modern Mediterranean has named Justin Seamonds its CEO, the Chicago-based fast-casual chain said. Seamonds’ background is primarily in retail; he was president of specialty grocer Dean & DeLuca and then CEO of the Snack Street shop in Houston. Most recently he was an advisor for Washlava, which allows users to reserve and pay for machines at laundromats using their smart phones. He has a master’s degree in accounting from the University of North Carolina at Chapel Hill. In the release announcing his appointment, Rōti said he was hired “to strengthen the organization and position the business for long-term growth of its restaurant footprint, digital offerings, delivery, and best-in-class catering.” “I believe that Rōti sits at the center of the current food and wellness culture zeitgeist,” Seamonds, below, said in a statement, noting that the chain’s trademarked mantra of “food that loves you back” and “our Mediterranean-inspired lifestyle of sharing and celebrating are extremely rare qualities to combine in a single business. “My passion for food, my devotion to hospitality and people, and my die-hard enthusiasm for what Rōti has built has really connected me with the brand, the team and the board. I’m beyond excited to dig in (no pun intended) and help everyone move us into a very bright future together,” he added. Rōti executive chairman Mats Lederhausen praised Seamonds for his past successes. “We’ve gotten to know Justin over the last few years, and have become really excited about him, his track record, and his passion for people, food and the entrepreneurial journey,” he said. “We’re so excited to have found what we think is an unbelievable match for a unique brand and a unique person that can unlock possibilities we are all excited to pursue. We couldn’t be happier to welcome him into our Rōti family.” There are currently 42 Rōti locations in Chicago; Washington, D.C.; New York City; Dallas; Houston, and Minneapolis. The menu includes sandwiches, salads and rice plates with many side dishes and toppings. – Source: NRN.

Miller will remain CEO. Robert Verostek will move up to CFO

Mark Wolfinger is succeeding John Miller as president of Denny’s in a reshuffle of the family-dining chain’s top management. Miller retains his duties as CEO, with a focus on Denny’s strategic direction. Wolfinger, formerly CFO, EVP and chief administrative officer, will assume more of Miller’s day-to-day responsibilities, the company said. In related changes, Robert Verostek is assuming the duties of CFO while continuing to work as Denny’s SVP. John Dillon is moving up from CMO and SVP to chief brand officer and EVP. The changes are effective Thursday, Denny’s said. “These key leadership changes represent the culmination of a multiyear process,” Denny’s Chairman Brenda Lauderback said in a statement. In recent months, Miller has noted that Denny’s is exploring alternative uses for its cash, including possible acquisitions or other major strategic moves. Denny’s is the franchisor or operator of 1,703 full-service restaurants worldwide. – Source: Danny’s.

Famous Dave’s to Acquire Granite City Food and Brewery

BBQ Holdings Inc., the parent company of Famous Dave’s, announced Thursday a purchase agreement to acquire the assets of craft beer chain Granite City Food and Brewery. Terms of the deal were not disclosed. The move is BBQ Holdings’ first foray outside of the barbecue sector. Its other two brands are the recently created Clark Crew BBQ and fast-casual prototype Real Famous BBQ. The move comes two months after Granite City filed for Chapter 11 bankruptcy protection so it could reorganize and facilitate a structured sale. Richard Lynch, chairman of the board and CEO of Granite City, said in an affidavit in December that competition in casual dining hurt operating performance and margins. Seven restaurants were closed prior to the filing. At the time of the bankruptcy, the beer chain employed more than 2,200 people across 15 states. Granite City, founded in 1999, had 25 units, located primarily in the Midwest, at the time of the filing. “This meaningfully accretive acquisition of Granite City Food and Brewery aligns with our strategy to accelerate growth and expansion as a multi-brand restaurant company,” Jeff Crivello, CEO of BBQ Holdings, said in a statement. “As an award-winning concept, Granite City is a fantastic addition to the BBQ Holdings family, and we look forward to the synergies we can create between multiple brands. “Granite City fits in well with our operating philosophy of great food and great service,” he added. Minnesota-based Famous Dave’s formed the publicly owned BBQ Holdings in September 2019, with hopes of expanding its barbecue footprint across the country. In December, BBQ Holdings opened Oklahoma City-based Clark Crew BBQ in partnership with Travis Clark, a pitmaster who previously worked with Famous Dave’s to improve food quality and consistency. At the end of January, the brand announced the opening of Real Famous BBQ in Provost, Utah, a fast-casual offshoot of Famous Dave’s, in partnership with Ascend Hospitality Group. Combined, BBQ Holdings oversees 126 locations in 33 states and three countries. When Granite City filed for Chapter 11, its assets included four rock-and-roll-inspired Cadillac Ranch restaurants and a centralized beer production facility in Ellsworth, Iowa, which enables each unit to brew beer on-site (the production facility generates the “wort” that’s transported to fermentation vessels at Granite City locations). In addition to increased competition in the casual space, Granite City credited “the number of new entrants into the craft beer and brew pub space exploded during the second decade of the new millennium” for its struggles. The brand is considered an early entrant into the craft beer market sector, but “suddenly faced competition from hundreds of new brewpubs and craft brewers,” the company said. Also, Granite City was saddled with real-estate baggage. Many of Granite City’s locations were located in or near shopping malls and locked into long-term leases the company said appeared favorable at the time, typically with options to renew. It simultaneously spent heavy capital building out restaurants “in a manner that featured those distinctive characteristics associated with the brand.” Units are typically 9,800 square feet with interior finishes that incorporate granite and other rock materials and natural woods and glass. Granite City restaurants are open-concept and have outdoor patios. “As a result of the Great Recession that began in 2008, consumer income growth stagnated for nearly a decade. This led to an overall decline in consumer spending, including retail spending and spending to eat out,” the company said. Granite City has worked to improve traffic and sales declines this year. In February, it introduced a menu and guest experience relaunch in six of its markets. By July, it expanded to 17 additional locations. It also attempted to improve financial performance and enhance liquidity by pursuing lease concessions and seeking extensions of the time afforded to pay food and beverage suppliers. As for Famous Dave’s, the brand’s company-run same-store sales lifted 0.4 percent in the third quarter. Off-premises business rose 4.7 percent and catering jumped 12.7 percent. Domestic franchise units saw a 2.1 percent same-store sales boost in Q3 versus a negative 1.4 percent drop in the year-ago period. For the nine months leading up to September 29, same-store sales increased 1.4 percent versus a 1.3 percent decline. Famous Dave’s system had 32 corporate stores and 96 franchises as of September 29. The chain has several initiatives planned for this coming year, including drive-thru locations and the introduction of 17 units bought back from franchisees. BBQ Holdings also tapped Jim Gilbertson as CFO in January. Gilbertson spent seven years at Granite City from 2007 to 2014. – Source: NRN.

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