Archive for February, 2007

Tipping Makes Restaurants Seem Less Expensive

Why do restaurants rely on tips instead of a flat wage to compensate waiters and waitresses? Why not build the cost of service into menu prices? One explanation involves the way consumers determine how expensive a restaurant is. According to this idea, consumers will perceive restaurants with higher menu prices but no tipping to be more expensive than restaurants with lower menu prices and tipping. A new study from the Cornell Center for Hospitality Research finds that this is exactly what happens.

The study, “The Effects on Perceived Restaurant Expensiveness of Tipping and Its Alternatives,” compared the expensiveness ratings of restaurants with tipping, added service charges, and service-inclusive pricing. Of those three practices, the one that seems the most expensive to customers is service-inclusive pricing. Tipping and service charges, on the other hand, seem to take advantage of lower menu prices despite higher add-on service costs. Thus, restaurant customers don’t appear to take tips into account when they judge how expensive a restaurant is. The study is available at no charge from http://www.hotelschool.cornell.edu/chr/research/centerreports.html.

Authors Shuo Wang and Michael Lynn, both of the Cornell School of Hotel Administration, used a computer simulation that allowed participants to make food selections from several restaurants, each of which used tipping, service charges, or service-inclusive pricing. Even after the participants saw their final bill, which included a tip or service charge, they viewed the restaurant with service-inclusive prices as more expensive.

“We concluded that our participants were generally using menu prices—and not the total bill—as their guide for how expensive they viewed our simulated restaurants,” said Lynn, an associate professor of marketing. “Thus, it seems to us that only restaurants with price-insensitive customers can adopt service-inclusive pricing without risking the loss of customers.”

Popularity: 4% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Why People Watched The Super Bowl

It’s a yearly tradition
55%

The commercials
54%

Last game of the NFL season
45%

Reason to get together with friends/family
35%

Ability to talk about game next day
26%

Fan of one of the teams in game
22%

Everybody else watches it
18%

(Multiple answers allowed)

Source: Initiative Futures via Insight Express online survey of 502 respondents (228 men/274 women)

Popularity: 3% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Just Like Family!

John has a great post on his blog today on the best example of how to treat your staff!

Treat Employees Like Family

Popularity: 3% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Are You A Sheep Herder?

This is one of those times when an introduction to a great post isn’t necessary. What is, is that you simply read it and hope you don’t see yourself in it!

Seth On Sheepwalking 

Popularity: 3% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

NRA Opposes Free Choice Act Legislation

WASHINGTON, D.C. — The National Restaurant Association expressed its opposition to bill H.R. 800, the employee Free Choice Act, as it came before the House Education and Labor’s Subcommittee on Health, Employment, Labor and Pensions.

The bill was sponsored by Rep. George Miller, D-Calif.

The NRA said the proposed legislation would take away an employee’s right to a federally-supervised secret-ballot process when deciding whether or not to join a union. It would replace secret ballots with a card-check system that lets a union organize if a majority of workers simply sign a card. Under the system, workers’ signatures would be made public to the employer, union organizers and co-workers.

“When a union is attempting to organize a workplace, employees sometimes face intimidation and pressure about how they should vote from the union or from management or both,” said outgoing NRA president and chief executive officer Steven C. Anderson. “The only way to guarantee employee protection is through the continued use of a federally supervised secret-ballot so that personal decisions about whether to join a union remains private.”

Federal courts have repeatedly ruled that federally-supervised secret-ballot elections are the fairest and most reliable method to determine whether a union has the support of a majority of employees.

“No one — employers or union organizers — should fear an election conducted by secret ballot. It is the only way to protect an individual’s freedom to choose without subtle or overt coercion,” Anderson said. “We appreciate that a hearing is being held today to hear both sides of this critical issue for restaurant and all small business employees. We strongly urge Congress to take a second look at this bill that severely restricts many of the nation’s hard-working Americans’ right to freely choose their own union representation.”

Popularity: 3% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Orders Up!

Drive-thru call centers are changing the quick-service landscape. But will the technology catch on?

Read on

Popularity: 10% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Restaurant Owners, Managers Invited to Participate in Tax Talk Today(R) February Webcast on IRS’ New Tip Reporting Program

Restauranteurs will learn about the new Attributed Tip Income Program and can submit questions to panelists on live Webcast Tax Talk Today, a monthly Webcast aimed at educating tax and payroll professionals on the most contemporary and complex tax issues, invites restaurant owners and managers to view and participate in its February program: “Simplifying Tip Reporting.” The hour- long Webcast is scheduled for Tuesday, Feb. 13, 2007, at 2 p.m. ET. Restauranteurs interested in the latest information on tip reporting for federal taxes are encouraged to watch and submit questions by email during the Webcast.

To access the Webcast at no charge, viewers can register online at http://www.taxtalktoday.tv/.

Popularity: 6% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Wendy’s Looks To Breakfast For Growth

The Street: Wendy’s International Inc. plans to begin offering breakfast in 20 to 30 percent of its 5,950 U.S. restaurants this year, according to chief executive Kerrii Anderson. The company plans to serve breakfast in half its restaurants in 2008, Anderson said.

Read more

Read also, Wendy’s net drops 58 percent.

Popularity: 5% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

Senate Passes Minimum Wage Bill With Restaurant Tax Relief

WASHINGTON D.C. — The National Restaurant Association commended U.S. Senators for including tax relief for restaurants in minimum wage legislation passed Feb. 1.

Opposed to the inevitable wage hike, the NRA lobbied legislators to include provisions that would provide assistance to the nation’s restaurateurs. (Read also, Minimum wage, maximum impact.)

The bill, the Small Business and Work Opportunity Act of 2007, passed by a vote of 94 to 3, includes several beneficial provisions for small businesses, including restaurants. Among them are $1.7 billion for a 15-year restaurant depreciation schedule (including new construction, leaseholds and improvements); a five-year extension of the Work Opportunity Tax Credit (WOTC); and a one-year extension through 2010 for Sec. 179 small business expensing.

“While no package can completely mitigate the impact of a minimum wage increase, we commend the Senators for recognizing the importance of granting small businesses the necessary resources to partially offset the consequences,” said outgoing NRA president and chief executive, Steven Anderson.

In nationwide surveys conducted in October 2006, restaurant operators said that if the federal minimum wage were increased from $5.15 to $7.25 over the course of 30 months, they would take a number of actions:

• Ninety-eight percent of quick-service operators said they would increase menu prices, compared to about three out of four family-dining and casual-dining operators.
• In addition to job losses, roughly 50 percent said they would cut employee hours worked.
• Approximately 25 percent said they would postpone new hiring.
• Approximately 30 percent of operators said they would cut employee benefits.

“We look forward to working with the House and Senate to ensure that restaurant-specific provisions remain intact, enabling restaurants and other businesses to continue effectively planning for the recruitment and training of employees, despite an increase in the minimum wage,” said Anderson.

Popularity: 2% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it

‘Mass Customization’ The New Buzzword For Restaurant Success

VANCOUVER - Canadian restaurant patrons are a picky lot. They demand healthy eating choices but still want to splurge on the richest, most calorie-laden dishes imaginable. And they’re an aging bunch as well, many in their 50s and 60s, so finding a quiet restaurant where they can customize menu choices can be huge factors in deciding where to eat out.

 

Read Article

Popularity: 3% [?]

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it