Foodservice Equipment & Restaurant Supply Blog

From providing sandwich trays for office lunch meetings to serving steak and lobster for a party of 1000, catering is one of the fastest growing segments of the foodservice industry.

According to a study conducted by the consulting firm Technomic, the restaurant industry has a $33.3 billion opportunity to grow consumer catering sales.

Although the recession has taken a toll on catering to business customers for corporate lunches or meetings, catering to the growing number of consumers choosing to entertain at home is a largely under-served sales opportunity for restaurants.

Chains that have invested resources in developing the catering side of their business have experienced double-digit sales growth, Technomic found.

Here are some tips for capitalizing on the catering boom and making the most of the holiday party season…

1. Offer a customized menu specifically designed for large events.
2. Your ability to market and promote catering services to your customers daily begins at the tables in your dining room. Each meal you deliver is an edible brochure for a catering event.
3. Table tents and check inserts are a perfect way to announce your catering services. Let everyone in your restaurant know that they can inquire for more information.
4. Add a page to your web site announcing catering. Make sure there is a form for a customer to fill out if they have a catering inquiry. Answer the inquiries within 24 hours.
5. Invite guests to join you as you unveil your new seasonal catering menu.
6. Transportation considerations: Not only do you have to move many delicate objects from point A to point B without breaking them, you also have to maintain their temperature to keep food safe. (Perishable food must be kept out of the “danger zone” (40-140F) where dangerous bacteria can grow.) Consider using insulated carriersand reusable ice.
7. Create an hourly timeline for the catering event for when each course will be served, when toasts will be made and be sure to communicate any delays to your staff.
8. Strategically placed plants, food stations and lounge style seating arrangements can cozy up a cavernous space.
9. Going with butler service/passed drinks gives you better control over consumption. Having a drink or water passed when guests arrive also relieves pressure on the bartenders to serve everyone at once.
10. If alcohol is going to be poured at an event, make sure everyone involved has the necessary licenses, training and insurance. If anything happens (and it could) everyone is going to be held liable. Make sure bartenders know what the approved pour amount is and empower them to say no when someone asks for a double or has had too much to drink.
11. It is critical to incorporate and notify your catering manager about any special requests and needs that your guests may have, including food allergies, religious requirements or dietary restrictions.
12. Know your guest profile and preferences such as their professional level, the frequency your they attend similar events and the age group, as older groups may prefer a milder menu.
13. The presentation of the meal should make your guests want to eat it! This means table linens and decorations that complement the theme of the meal. If it doesn’t look good and smell good, your guests will not be happy.
14. Consider whether you are serving plated meals or buffet style – this helps make decision about the length of the meal and prep time.

Additional resources:

• The Restaurant Blog
• Everything Guide to Starting and Running a Catering Business
• NACE - National Assocation for Catering Executives
• ICE - International Caterers Association
• CaterSource

A news release issued by the National Restaurant Association today detailed efforts by the Depreciation Fairness Coalition (led by the National Restaurant Association), to urge an extension by Congress of the 15-year depreciation schedule for restaurant improvements and new construction, leasehold improvements, and retail improvements that is set to expire at the end of 2009.

The Coalition says that a seamless extension is essential to provide businesses with the certainty they need to undertake capital expenditures, which are critical to fueling economic activity and creating jobs.

History the the 15-Year Depreciation…

A provision in the American Jobs Creation Act of 2004 shortened the depreciation period for qualified improvements to leasehold and restaurant property from 39 to 15 years. The provision applied to improvements that included new HVAC systems or refrigerators, and expired December 31, 2007; the EESA reinstated the allowance for the accelerated depreciation for leasehold and restaurant improvements retroactively from January 1, 2008 until December 31, 2009.

EESA also expanded the depreciation allowance to include improvements to retail buildings and new restaurants for 2009.

Other incentives - Section 179

Also this year, Congress increased the amount that small businesses can write off for capital expenditures to $250,000. Operators can take advantage of these incentives by purchasing new equipment during the 2009 calendar year. The law also maintains the bonus depreciation of 50% for qualifying assets. This bonus is in addition to regular first-year depreciation.

• What is Section 179?
• Lease Benefits
• Savings Calculator

Sample Calculation:

Assume you finance $300,000 worth of business equipment, put it to use in 2009, and take advantage of Section 179. Your TAX SAVINGS could be significant.

1st Year Write Off:

• Section 179 $250,000
  ($250,000 is the maximum write off in 2009)
• 50% Bonus Depreciation $25,000
  (On remaining value: $300,000-$250,000=$50,000×50%=$25,000)
• Normal 1st Year Depreciation $5,000
  (Depreciation calculated at 5 years=20%; $25,000×20%=$5,000)
• Total 1st Year Deduction $280,000
  ($250,000+$25,000+$5,000=$280,000)
• Tax Savings Assuming 35% Bracket $98,000
  ($280,000x.35=$98,000)

1st Year Net Cost After Tax Savings: $202,000

Qualifying Products:

Business owners who acquire equipment including machinery, computers, and other tangible goods, usually prefer a substantial deduction in a single tax year, rather than a little at a time over a number of years. This accelerated deduction is known by its section in the tax code: a Section 179 deduction. The 2009 law extends the amount of qualified property that a business can expense under Section 179 to $250,000.This incentive is for equipment placed in service by December 31, 2009 and is designed for small companies, so the deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income).

View qualifying products. (Please contact your tax advisor to confirm the specific product you are interested in qualifies under the Section 179 prior to purchase.)

For my birthday, I got a copy of Anthony Bourdain’s Kitchen Confidential: Adventures in the Culinary Underbelly, and I’ve been laughing my way hysterically through each chapter.

If you aren’t familiar with Anthony Bourdain, in addition to being a well-known author, he’s also host of Travel Channel’s culinary and cultural adventure program, No Reservations.

But before all that, Bourdain graduated in 1978 from the Culinary Institute of America. He is currently a “Chef-at-Large” with a home base at the Brasserie Les Halles, where he was executive chef for many years.

I thought it would be fun to run down Bourdain’s list of the indispensible kitchen supplies he recommends for any serious chef.

And you’ll see, Bourdain has a delightfully dry wit to accompany his vast wealth of cooking knowledge.

Number one, he says, “you need, for God’s sake, a decent chef’s knife….This should cut just about anything you might work with, from a shallot to a watermelon.”

Use the tip of the knife for the small stuff, he advises, and the area nearer the heel for the larger.

Another useful item, Bourdain says, is flexible boning knife. You can fillet fish, and with the same knife, he says, you can butcher whole tenderloins, bone out legs of lamb, French cut racks of veal and trim meat. (But, he counters, if your butcher is doing all of this for you, you can probably live without one.)

A paring knife, Bourdain says, is to be used for “microsurgery:” turneeing vegetables, fluting mushrooms, etc.

The last knife Bourdain recommends is the offset serrated utility knife: “This is a truly cool item that, once used, becomes indispensable.” Bourdain says.

You can use it not only for your traditional serrated blade needs like slicing bread and thick skinned tomatoes, but also for the full line of vegetables, spuds, meats and even fish.

“Numero uno” in the kitchen, Bourdain says, is a plastic squeeze bottle.

Surprised? Bourdain says this inexpensive item is essential to that artful drizzle that dresses up a plate, and makes for a stunning presentation.

Next, the mandoline, because “you didn’t think they actually cut those with a knife did you?”

The mandoline is a vertically held slicer with various blade settings. Bourdain says, “it helps make those slick-looking, perfectly uniform julienned and batonnet-cut veggies.”

Last, Bourdain emphasizes the importance of a premium set of pots and pans, adding that most pans sold for home use are dangerously flimsy.

“A proper saute pan should can serious head injury if brought down hard against someone’s skull,” Bourdain says. A thick-bottomed pan will prevent scorched sauces, carbonized chicken, pasta that sticks to the bottom of the pot and burnt bread crumbs.

Last, Bourdain says, “a a nonstick saute’ pan is a thing of beauty.” Treat it nice, he advises: “never wash it - simply wipe it clean after each use and don’t use metal in it - use a wooden spoon or ceramic or nonmetallic spatula to flip or toss whatever you’re cooking in it.”

Any professional chef will have his own preference of style and brand - so don’t take Anthony’s word for it: shop around and figure out what works best for you.

I’d like to share a few articles I read this week that address the changing climate of the restaurant industry and changes in the demographics and habits of diners. Each of these pieces touched on a common theme - that restaurants are going to have work harder to be relevant among a changing -and less loyal- demographic; one that is causing the market to become more competitive and more driven than ever by exceptional customer service.

First, a report released this week from the NPD Group ReCount showed the “total number of restaurant locations in the U.S. shrunk during the past year as smaller chains and independents in particular had difficulty weather the economic storm.”

And, coincidentally, a report from Technomic showed that consumers are entertaining at home more often than a year ago. That trend is expected to increase throughout the year.

The Technomic study is a good segue into a Wall Street Journal article that identifies a trend of restaurants opening fewer locations and instead trying harder to improve service. Mystery shopper programs and online surveys abound.

And the last article, from the Orlando Sentinel, shows how dining habits have changed. Older consumers, who represent a large portion of the casual-dining market, have reined in spending as their retirement savings have taken a hit during the recession. Meanwhile, the next generation of diners is less loyal to casual dining and often feel that traditional sit-down restaurants take too long. Moreover, grocery store chains are honing in on restaurants’ territory by offering more pre-packaged and ready-to-eat meals.

It’s easy to see the downside, but what opportunities do these trends present for restaurateurs?

First, as noted in the MediaPost article, it offers an opportunity for restaurants -especially the independent and smaller chains that are struggling the most- to place a greater emphasis on offering box lunches and party platters, complete with off-site preparation.

Second, these trends should tell restaurateurs that there are too many establishments that are almost exactly the same. Operators should be in a mode of constantly improving and reinventing themselves and keeping the concept fresh.

And last, restaurants should place an even greater emphasis on customer service that is second-to-none. I don’t just mean greeting the diners with a “Hi, my name is Kristy and I’ll be your server,” with a side-order of deadpan stare.

What I mean is to provide a customer experience that isn’t artificial and suffocating, but unique and special enough that people will tell their friends about it.

Now more than ever, your success depends on a unique and memorable experience, and depends on taking advantage of new trends and dining styles. Because in THIS economy, if you build it, sometimes they still won’t come.

Recent economic turmoil is forcing restaurants to get creative.

The saying, “adapt or perish” is true now more than ever: KFC now offers grilled chicken, Pizza Hut has pasta, and Morton’s Steakhouse has a $5 burger.

But another (warmer, fuzzier) way that restaurateurs are combating the recession is by hosting charity events, where part of the proceeds go to the cause.

Indeed, many charities also have struggled as regular givers are forced to cut back.

That’s why many non-profits are teaming up with local restaurants in a joint effort to raise awareness and fill seats at the same time.

Family-owned restaurant MiSaVi frequently hosts private parties, charity auctions, benefits and even organized a mini class reunion in a creative effort to drum up new business.

Last month in Pasadena, more than two dozen restaurants offered lunch and dinner specials all week, and then donated 10% of the profits to a local homeless shelter.

And last night in Attleboro, Mass., restaurants teamed up with a performing arts group in a charity auction to restore a local theater.

Likewise, a group of friends in Ohio were treated to a VIP chef’s dinner at the Vue Restaurant & Lounge in Hudson, a dinner they purchased at - guess what? - a charity auction.

On June 15, Patrick’s Kitchen & Drinks in Zionsville, Ind., will host an event benefiting the American Cancer Society’s Relay for Life. Complete with live local music, artists, magicians and even a few town big-wigs generous enough to paint themselves purple and bus tables for a good cause, owner Patrick Mullen said the event “hopefully will spill out into the parking lot and down the sidewalk.”

My prediction: Expect to see more events like these in the future - where restaurants not only team up with charities, but but even partner with competing restaurants in mutually profitable ventures.

Maybe alliances are the new black?

We hit 2000 page views today, so I thought it would be a good time to thank all you readers for your support, and to talk a little bit about social networking and the restaurant industry.

As an “evangelist” of social networking, one of the ways I try to encourage those around me to participate is by telling them, “as long as people are talking about you online, you might as well join the conversation.”

Granted, there are a lot of fantastic ways to waste time on the Internet, and for restaurant owners and other foodservice operators, every minute counts. Along with the desire to join the online revolution, I think there is also a fear of being overwhelmed by the sheer volume of networks, applications, widgets, blogs and tweets. (Say what?!)

Here are a few guidelines that I have used in order to stay focused and not drown in the online soup while still taking part in social networking:

First of all, social networking can improve your business, but it needs to be lightweight and easy to digest, and it needs to be sincere. For instance, if we post blogs that are just thinly disguised advertisements, visitors will see through us and they won’t take us seriously. We really just want to give people the tools they need to participate and share information. Its not about a trend or a look, it’s about functionality.

Second, there are many restaurant and foodservice industry websites that are utilizing blogs and social networking, or even just posting menus online, but they are getting a lot of play out there in cyberspace because a) their content is fresh and updated often, and so it is recognized and picked up by the search engines b) it is relevant to its readers and c) because it is easy to use and easy to share.

Here are some of the broad benefits of social networking:

• Reputation monitoring. When was the last time you Googled the name of your establishment? You might be surprised what you find.
• “Joining the conversation.” Networks provide unbiased feedback on what we’re doing well and where we could improve – they can also be a channel for business owners to communicate with customers as well as have a voice and personality online.
• Being an industry resource for expert solutions.
• Your competitors are doing it. Honestly, I don’t remember the last time I looked for a restaurant in a phone book. If I can only find one sushi restaurant online that’s in my zip code, that’s the one I’m going to.
• Word of mouth. Social networking can facilitate two-way dialog in a way that replicates word of mouth on a grander scale.
• A web-based dialog for customers to interact with the brand while providing a large-scale, low-cost online focus group.
• Leveraging technology to generate user feedback.
• Driving traffic. The more activity and links that point back to your website, the easier it will be for customers (and potential champions of your brand) to find you.
• Creating brand awareness.
• Influencing purchasing decisions.

Last, here are some broad guidelines to help stay focused:

• Only participate where it is truly relevant to your product or service. You don’t have to join every network out there, but find out where your competitors and neighboring restaurants are participating, and get involved.
• Be open, honest and transparent. You want visitors to see your face, not a silhouette. Every establishment has a unique flavor and personality. Help people recognize that when the see you online.
• Accept the good with the bad. Don’t panic if you see a negative comment about your establishment online. Use it as an opportunity to respond. If someone complains that they waited 45 minutes for their food to arrive, come up with a new strategy to cut down on wait times and tell your visitors about the solution. But - also know that there is a different between malicious comments and constructive criticism, and you’re under no obligation to “suffer fools.”
• Be consistent. You don’t have to spend all of your time online to make a difference, but you do have to provide your visitors with a regular resource. If you post one blog and then disappear for months at a time, you readers will not find you reliable. However, if on the first of every month, you post just one blog, update your specials, or add some new photos, visitors will realize that you are committed, and you’ll stay at the top of their minds - as well as their search results.

Maybe Peter Pan had it right - maybe thinking happy thoughts is the key to rising up out of the recession.

Reports this week show that consumer mood has given stocks a boost. According to Chain Leader:

The stock market rose for the first time in a week Tuesday as unexpectedly strong data on consumer confidence sparked optimism that spending by Americans could support a hoped-for economic recovery in the second half of the year.

Citing a bunch of numerical data that means absolutely nil to me, the report went onto describe how consumer sentiment is at it’s highest since September, and investors hope resilient consumers will increase spending in time for the back-to-school season in late summer, helping manufacturers and retailers boost their depleted earnings.

Obviously, there is only so much consumer confidence can do to repair the state of the economy. But for restaurant operators, it could be a sign that banks will begin to ease up on lending as the markets rebound.

In a panel discussion at the recent NRA Show in Chicago, Bernie Siegel, founder and chairman of Siegel Financial Group and NRA Show panelist, said the key to staying afloat is to getting banks to start lending again.

He advised operators to seek financing from smaller, regional banks, as opposed to those with more than three branches.

In addition, the SBA offers a number of online courses aimed at helping small business owners obtain financing and develop a business plan. The SBA announced recently it will guarantee up to 90% of a loan submitted under several of the administration’s small business programs.

And, let’s not forget Obama’s economic stimulus package. Millions of dollars are still up for grabs in federal foodservice equipment grants for K-12 schools.

The government hopes to begin awarding the school foodservice grants beginning June 8. State deadlines to apply are approaching - in just Arkansas, Kentucky and Missouri (whose application deadlines are next week) almost $4 million in grants will be awarded. For more information and to get a state-specific application, CentralRestaurant.com

What are restaurants doing to take precautions against spreading the swine flu, now known as the H1N1 virus?

According to an article in QSR Magazine, managers for the National Restaurant Association’s annual show in Chicago acknowledged the outbreak by placing about 140 hand-sanitizing stations on the show floor, as well as an information center, where visitors could ask questions about the virus.

What are restaurants doing to acknowledge the outbreak? Have there been staff meetings? Perhaps retraining on proper hand washing techniques? How many restaurants offer not just soap, but hand sanitizer to their customers? Are diners asking for it? Has the virus affected restaurant traffic?

According to a Gallup poll, 6% of Americans said on April 30 they did not go shopping or to a restaurant last week because of concerns about the H1N1 virus. Gallup did note that concerns about the virus have not yet affected consumer spending, at least here in the U.S.

For more resources and information, NRA and EcoLab released an H1N1 Toolkit to help prevent the spread of influenza viruses in restaurants.

I read a great article today in Business Week that profiled the country’s longest-running restaurants.

Among others, they include the Union Oyster House in Boston (est. 1826!), Delmonico’s in New York (1837), Berghoff’s in Chicago (1898), el Charro Cafe in Tucson (1922) and the Original Pantry Cafe in Los Angeles (1924).

These institutions have survived a host of economic meltdowns and natural disasters, not to mention changes in the surrounding geography and changes in ownership. So what is the common thread that ties them all together?

It would be easy to say all it takes to stay in business is good food, great service and atmosphere, and a boatload of capital to get you through the hard times, but even with those crucial conditions, I think it goes a bit deeper.

Staying relevant

The article touched briefly on what I like to call the “Madonna technique” - being able to reinvent yourself to fit in and stay relevant in any decade. In the 1820s, when the Union Oyster House opened in Boston, John Quincy Adams was president, the very first photograph was taken, and Beethoven’s Ninth Symphony premiered in Vienna. It is indeed a delicate balance for an establishment to both stay true to its roots as well as continue to be timely and trendy.

Being first

Delmonico’s in New York City is credited with a number of culinary innovations. It is the birthplace of Eggs Benedict, Lobster Newburg and Baked Alaska. Moreover, the restaurant was the first to present diners with a menu, and the first to offer private dining rooms.

Social psychologist Kurt Lewin said, “if you truly want to understand something, try to change it.” It’s just that sort of inventive and creative nature that I believe is not only helpful, but essential to staying ahead of the competition.

Being genuine

Antoine’s in New Orleans (est. 1840) is still family-run by the fifth generation of Antoine Alciatore, an immigrant credited with making New Orleans a “culinary capital.” The dining room is rich with memorabiliia, and its owners are said to regard each member of their staff as extended family. This type of sincerity is no-doubt reflected in every facet of the establishment, and is something that customers will recognize and will return to.

What are some of the establishments YOU think will still be around in 100 years?

The short piece is also accompanied by some great photographs.

The response to our new white paper on running a restaurant has been tremendous!

We tried to cover the major aspects of the restaurant business from opening to advertising. For instance, the Small Business Administration provided information about loan programs, and even helps first-timers develop a business plan in order to apply for financing.

The (free) paper also includes information about choosing a location, buying equipment, designing the kitchen and dining room and some of the major current issues surrounding the restaurant.

Much of the information came from our product consultants. Many of them are Certified Foodservice Professionals (CFSP); the major accreditation for the foodservice industry.

I also used the CFSP study guide, published by NAFEM, and several other food-industry trade journals.

The white paper is available on our website, CentralRestaurant.com — we would love to hear your thoughts!