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Texas Minimum Wage Increase Set For July 24

The minimum wage rate will increase to $6.55 on July 24, 2008. The cash wage for tipped employees will remain at $2.13, however the overtime rate for tipped employees will increase. continue

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The Operator’s Monthly Conference Call

The RCS Monthly Operator’s Conference Call is scheduled for July 15th at 3:00 p.m. CST.

On this call we will discuss ways to improve your operation’s efficiency and marketability through answers to your submitted questions. continue

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Food Cost

A major part of your prime cost is food cost.

Food cost can be calculated as follows:

Net food purchases ÷ Net food Sales (Net means after the change in inventory)

Costing out the menu is crucial to controlling food costs. The easiest place to begin is at the bar due to price control. From there, move on to the food.

Each category should be broken down into more useful ratios. Have the chef, sous chef, or kitchen manager cost out the menu since they deal the most with the product.

A few tips to help lower food costs are:

• Raise prices.
• Cost out the menu and price the high cost percentage items accordingly.
• Control portion sizes.
• Minimize waste in the kitchen. Track waste as well.
• Spot-check prep staff. Make sure the pre-cut portions weigh what they are supposed to.
• Link the chef’s pay to a pre-set food cost percentage. Set up an incentive deal for the chef.
• Set up a Purchase Order System.
• Negotiate prices with vendors for bulk buying. Take vendor discounts when offered.
• Organize the storage room and keep inventory to a minimum.
• Purchase based on a budget.

If food cost is a consistent problem, an operator should start taking inventory weekly. At one particular restaurant, our client requires his kitchen staff to know daily food cost.

He ignores inventory and uses purchases over sales. He even makes the kitchen track each entree sold. So if only one lobster is sold, the staff better not order lobster the next day. Any operator can take this one step further by tracking daily sales and purchases.

A dollar budget can be set based on projected demand. For example, if an operator expects to do $50,000.00 |in food sales for the week, the chef should be given a budget of how much to spend. If the operator’s food cost goal is 30%, they can order $15,000.00 worth of food ($50,000 x 0.3). If the operator tracks purchases daily, he or she can let the chef know how close he is to the budget.

The Four Aspects of Food Cost

Food cost has a direct impact on a restaurants operating profit. Because no two operations are identical, it is necessary to calculate the food cost of your particular restaurant at least monthly - we always recommend weekly. Industry averages cannot be used as an accurate standard.

The concept of food cost must be examined at several different levels in order to take into account any and all variables. For example, one variable is your menu sales mix. When one menu item sells better than another, there will be variances in your overall food cost and you should know how this affects your profits.

Essentially, there are four aspects of food cost that must be individually calculated for each operation

1. Maximum allowable food cost percentage
2. Actual food cost percentage calculated for the income statement
3. Potential food cost percentage determined by the menu sales mix
4. Standard food cost percentage includes a waste allowance

Maximum allowable food cost

The maximum allowable food cost figure determines the food cost percentage an operation needs in order to achieve its profit objectives. It is calculated from the actual operating budget of the business. To calculate the maximum allowable food cost percentage, select a representative accounting period and determine the amounts for: payroll related expenses (salaries, wages, taxes, and fringe benefit), overhead expenses (advertising, utilities, maintenance, other supplies excluding food costs)

Also include a target figure for profits before tax. Convert the dollar value for these three areas to a percentage of the total sales. Remember that food cost is not included.

Now subtract these numbers from 100 to determine the maximum allowable food cost percentage.

If you are working with following percentages of sales, payroll 27%, overhead 20%, profit 15%, then the maximum allowable food cost percentage is 37 % (100 minus 63 ).

Actual food cost

The actual food cost percentage appears on the monthly income statement. This is the cost of the food consumed by your guests, and does not include employee meals or waste. Although the actual food cost indicates what the food cost is currently running, it has little value unless the operator knows what the target percentage should be.

Potential food cost

Potential food cost is a theoretical or ideal percentage which indicates what the food cost should be in a perfectly run restaurant, given the sales mix. It reflects the fact that the most popular menu items will have the greatest influence on the overall food cost percentage. To calculate the food cost percentage of each dish: Multiply the food cost per item with the number of portions sold. Add both columns and then multiply the total cost by 100 and divide it by the total of the sales column. This will result in the potential food cost. If then your total cost is $ 3,000 - and your sales $ 10,000 - your potential food cost percentage will be 30.0.If the sales mix produces a potential food cost that exceeds the maximum allowable cost, profit objectives cannot be realized.

Standard food cost

Management needs to adjust the potential food cost to include waste and spoilage that occurs during normal preparation, as well as an allowance for complimentary or discounted meals to employees and guests. An acceptable variance will range from half to three percentage points of food sales. The exact percentage is determined from management studies. The standard food cost percentage is calculated by adding this variance percentage to the potential food cost. The difference between actual food cost and standard food cost reflects inefficiencies that should have been controlled by management.

How they relate

Bringing all four aspects of food cost together shows the importance of each in examining food costs

Assume that you have a maximum allowable food cost percentage of 35. The month-end food sales and inventory figures for the same period result in an actual food cost percentage of 34.0. If the food cost analysis stops at this point, one may conclude that the cost of food is in line because the actual food cost is slightly below the maximum allowable food cost percentage. However, further analysis using the weighted sales mix analysis reveals a potential food cost percentage of 29.4. The variance that exists between the actual and potential food cost percentage is 4.6 percentage points, much too high for the existing menu sales mix.

Management has set a standard food cost percentage of 2% to take into account as acceptable food waste, etc. The actual food cost percentage is still 2.6 percentage points higher than the standard food cost percentage. Thus minimum profit objectives are being exceeded, but they are not being optimized. Investigation is required and its results could improve the financial performance of the restaurant in the future.

Call us toll free at 877-535-2324 for a free consultation and to begin the process of Coaching you to achieve the kind of success you envisioned when you first started your business. It costs you nothing to understand about the kind of success you want and what we can do to help get you there!

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85 Percent of Consumers Eat Desserts at Least Once a Month

CHICAGO–(BUSINESS WIRE)–New research from foodservice consultancy Technomic found that virtually everyone enjoys dessert from time to time. In a survey of 1,500 consumers, the vast majority (85 percent) said they eat dessert once a month or more, with zero respondents indicating that they “never” eat dessert. And more than half of consumers (57 percent) report eating dessert “very frequently” or “often” (at least once a week).

“Clearly, consumers love dessert,” says Darren Tristano, Executive Vice President of Technomic Information Services. “We see the overwhelming appeal of desserts as a great way for restaurants to boost incremental sales.”

Admitting that it can be challenging to persuade consumers to order dessert once they’re full from their meal, Tristano noted that the new research points out numerous ways to appeal to their sweet tooth. Both full- and limited-service restaurant operators, as well as their suppliers, can drive dessert sales by concentrating on these and other key consumer trends:

• Even though traditional desserts such as chocolate-chip cookies, a dish of vanilla ice cream or a slice of apple pie are most favored, the definition of dessert is changing. More consumers, for example, now view yogurt parfaits, fruit plates, or cheese samplers as appealing desserts.
• Dessert toppings are growing in popularity, and not just for ice cream sundaes. Many consumers indicate that they like toppings on cakes, pies and cookies.
• Consumers like to share desserts. In fact, some won’t order dessert unless someone else in their party also plans to. This behavior varies by gender and ethnic group, with women, Asians and Hispanics more likely to pass on dessert unless they can either share it or know that they aren’t the only one ordering a dessert.
• When purchasing desserts at limited-service establishments, consumers look for portability and reasonably-priced options. At full-service restaurants, however, high overall quality is the most important attribute.

These and countless other findings are presented and interpreted in the new Dessert Consumer Trend Report, which was developed to give restaurant operators and foodservice suppliers vital market and consumer insights to drive business-building efforts in the dessert category. It includes over 300 pages of detailed reporting on dessert menus, prices and ingredients, in addition to in-depth consumer research aimed at consumption behaviors, attitudes and behaviors that impact the dessert decision, dessert occasions, brand preferences, and improvement areas.

Several appendices include emerging desert chain profiles, operator-specific demographics, consume

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Cutting Boards 101

“Usually, a cutting board will tell you when it needs to be replaced — when it begins to discolor and has too many grooves that discolor,” says John A. Krakowski, a food safety coach and trainer.

Never should raw hamburger meat meet fresh tomatoes or onions on a cutting board.

Several food experts say raw meat should be prepared on one cutting board, while vegetables and other produce should be prepared on another. But don’t stop there. If you’re in the market for a new cutting board, you might as well buy not two but possibly four — one for cooked meat as well, and one for bread.

“The whole purpose is to cut down on cross-contamination,” says Cherie Napoleon, a chef instructor at the Institute of Technology in California and secretary of the American Culinary Federation Chefs Association.

If you’re out board-hunting, you have your choice of several styles and material options. Cutting boards are typically flat and rectangular. However, they also can be round, be raised on stands or even have rubber edges to prevent slipping.

“There are cutting boards of all descriptions out there,” Napoleon says.

The most common board materials are wood and plastic, though some are made of glass. All have their advantages and disadvantages.

If you like wood, soft types such as pine aren’t recommended. “The problem with the softer wood, especially with a cleaver, is they’ll splinter, and you don’t want that with your food,” Napoleon says. “People will go to their lumberyard and use that [lumber] as their cutting boards, and that’s not appropriate.”

Instead, look for hardwoods with a close grain, such as maple, she says. However, “when you see these beautiful mosaics of wood-laminated cutting boards, you have to be careful with them. They can come apart.”

Maintenance is key

As for the plastic cutting boards, even the thin, flexible sheets, make sure they’re designated “food grade,” says John A. Krakowski, a food safety coach and trainer.

“When I say ‘food grade,’ it isn’t recycled plastic,” he says.

While glass cutting boards may be non-absorbent, their surfaces can be slippery. “Your knife can slip off them and cause some cutting hazards,” Napoleon says.

Whether you buy wood, plastic or some other material, it’s important to keep your cutting board properly maintained. After each use, it should be cleaned with warm, soapy water, rinsed and then left to air-dry. Many plastic ones also can be placed in the dishwasher. However, “you have to make sure the sprinklers have access to the entire cutting board,” Krakowski says.

Wood boards should not be placed in dishwashers before reading the label or checking with manufacturers to see whether they can be, he says. Mineral oil also should be applied on wood cutting boards from time to time.

You also can sanitize the cutting boards after you clean them, Napoleon says. In a small spray bottle, mix a tablespoon of bleach to a couple of cups of water.

“After I wash it, I spritz and set it aside in the dish drainer,” she says. “You don’t want to put it away damp.” If you do, “you’re encouraging the growth of bacteria.”

And don’t try saving your cutting boards for years, she and Krakowski say.

“Cutting boards don’t last forever,” Krakowski says. “Usually, a cutting board will tell you when it needs to be replaced — when it begins to discolor and has too many grooves that discolor.”

When they do, chuck them and get new ones.

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Eating With Your Mind’s Eye

Garnishes are to a dinner plate what accessories are to fashion models: They set off attributes to their best advantage. But making food look nice — the “halo effect” of plate presentation — doesn’t require foam machines or truffle shavers. Here, a three-element plate gets a simple, effective makeover.

One caveat: Because we tried to show as many techniques as possible on one plate, this comes dangerously close to overdone. Learn to stop garnishing at the first moment of satisfaction — or even before.

Select the plate: Go with plain white, and keep proportion in mind: For three components, a 10-inch plate with a 1 1/2 -inch rim and a slight well gives the food a little room to breathe. The well defines the space and keeps liquids from running. The rim frames food just as margins frame words on a page.

Watch dimension: A little piling goes a long way. Towers of food that topple with the first cut of a knife have gone the way of the ’90s.

Use a kit: When having guests over for dinner, do what restaurant chefs do. Have some of the following items handy to choose from as the muse strikes, provided they make sense where you use them:

• Chopped parsley.
• Chopped and/or whole chives.
• Chopped scallions.
• Diced red bell p epper.
• A bunch of clean greens or herbs (such as watercress, flat-leaf parsley, cilantro, basil, thyme or sage).
• Black or white sesame seeds.
• Toasted pine nuts, pecans, slivered almonds or other nuts.
• Smoked paprika.
• Edible flowers.
  

Make garnishes work: Too much color can look clownish, and everything should belong. On our makeover plate, the red pepper strips on the sugar snaps and black sesame seeds and scallions on the couscous set off the colors and enhance the foods’ flavors instead of clashing with them.

When it comes to greenery, keep in mind that parsley goes well with all savory dishes, but other herbs should be used only if they are already components in the dish. Basil would be fine on our makeover plate because it’s in the sauce, but sage leaves would be inappropriate.

Some of the most fashionable finishing touches are also the tastiest: varieties of coarse sea salts and freshly ground peppercorns.

Source: The Washington Post 

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Benchmark’s Top 5 Dining Trends 2007

Benchmark Hospitality International, which manages 30 award-winning hotels, resorts, conference centers and condominium resorts throughout the United States and in Japan, has just released its Five Tasty Dining Trends for 2007, as observed by its properties. The trends were announced by Bob Zappatelli, vice president of food & beverage, and his team of 18 food & beverage professionals.

Benchmark Hospitality International, an independent hospitality management company based in The Woodlands (Houston), Texas, operates resorts, conference centers, hotels and condominium resorts both domestically and internationally. For locations of Benchmark Hospitality properties and for additional information, visit Benchmark’s Website at www.benchmarkhospitality.com.

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Dessert Beers Are A New Trend In Restaurants

There’s nothing better than a cold beer right after work - and now restaurants are suggesting New Yorkers drink it right after dinner.

Dessert beers are popping up on city menus as the perfect pairing for sweet meal-enders.

Renee Lipski’s husband, Michael, thought she was crazy when she ordered a beer float at the Chocolate Room in Brooklyn, but ended up finishing it off for her. The dessert pairs a chocolate stout with vanilla ice cream, and while it’s reminiscent of a root beer float, it’s decidedly less sweet.

“I ordered it because I didn’t want something that would be overly sweet, and it was really refreshing,” says the Brooklyn homemaker.

Rich Lindy, who lives on the upper West Side and works in real estate, liked the float for another reason: “It sort of keeps the buzz going,” he admits.

The reasoning behind the trend: Beer’s flavor is better suited to sweets than most wines, says Julie Bradford, editor of the magazine All About Beer.

“Few wines pair well with sweet foods,” she says. “But while wine with dessert is problematic, beer and dessert is a great combination.”

Spiced, malt-heavy beers (as opposed to bitter lagers and pale ales) are the best at the end of a meal, experts say. Fruit beers, especially Belgian fruit lambics, work, too.

Kevin Garry, assistant beverage director at Gramercy Tavern, serves Harvey & Son Imperial Extra Double Stout with chocolate bread pudding, and J.W. Lee Harvest ale with cheese.

“A lot of beers work well with dessert because their flavor profile is similar to tawny port or sherry,” says Garry, who has 30 beers on his vintage list. “Beer with dessert is a concept that really works.”

At the Chocolate Room, owner Jon Payson pours Brooklyn Brewery’s pumpkin spice ale to go with pumpkin spice ice cream.

At Gotham Bar and Grill, pastry chef Deborah Racicot offers fig focaccia, cheese and nuts paired with a Belgian lambic. She takes the frothy business one step further, freezing beer right into her blackberry ice cream and scooping it onto a peach and blackberry crisp.

When Racicot paired cheesecake with Guinness ice cream, customers requested a scoop of the ice cream on its own. Neville Stoddart, executive chef at Markt, garnishes a lemon tart with a sorbet made with a cherry-flavored beer.

Sometimes a beer is so sweet it makes dessert on its own. New this fall is Barons Black Wattle Superior, which has a nutty caramel flavor and is served at Tribeca Grill.

Source: NY Daily News

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California Wines Most Featured By U.S. Restaurants

By Martinne Geller

NEW YORK (Reuters) - U.S. restaurants are most likely to feature California wines that sell for less than $39 a bottle, according to a new report.

Start-up research firm Winemetrics LLC released its first annual “On-Premise Wine Distribution Report” on Thursday, ranking the nation’s top 100 wine brands based on the frequency of their inclusion on restaurant wine lists.

Topping the list are Beringer, owned by Foster’s Group Ltd., Kendall-Jackson, and Constellation Brands Inc.’s Robert Mondavi.

In fourth and fifth place, respectively, are Diageo Plc’s Beaulieu Vineyard, also made in California, and UST Inc.’s Chateau Ste. Michelle, made in Washington state.

Winemetrics’ data was gathered from over 10,000 casual and fine-dining restaurants in 20 states. The majority of the restaurants in the survey were casual locations, though upscale restaurants had more extensive lists.

Winemetrics Chief Executive Charles Gill told Reuters that such information can be useful to wine makers, distributors, restaurateurs and investors hoping to scan the industry’s competitive landscape and gauge potential performance, since many consumers buy wine based on what they taste at restaurants. Consumers feel that by featuring certain wines, restaurants are endorsing those brands.

“Brand image is built on-premise, and volume is built off-premise,” said Gill, a former wine brand manager who founded a company called Alambicor seven years ago. Alambicor recently changed its name to Winemetrics.

While sales of wine drunk “on-premise” — meaning in restaurants or bars — make up less than one-quarter of the volume of wine sold in the United States, such sales account for nearly half of the revenue, Gill said, due to the price mark-ups that restaurants put on the bottles they sell.

U.S. consumers spent $24.3 billion on wine in 2005, with $11.8 billion coming from restaurants and bars, Gill said.

The top 100 list is dominated by U.S. producers, with most coming from California. There are also 15 wine makers from France, seven from Italy, two from Australia and one from Chile.

Other brands near the top of the list include the independently owned Caymus and Cakebread as well as Diageo’s Sterling Vineyards, LVMH’s Veuve Clicquot, and Fortune Brands Inc.’s Clos du Bois.

According to the sample, the largest portion of wines consumed in restaurants sell for between $25 and $39 per bottle, according to the report. Those bottles would cost $13 to $19 at retail.

Red wines outnumber whites by a ratio of two to one, with Cabernet Sauvignon edging out Chardonnay for the top variety. Pinot Noir was the second most common type of red wine listed, a development Gill guessed was caused by the 2004 film “Sideways,” in which a wine enthusiast espoused Pinot’s virtues over Merlot, which is now third.

“‘Sideways’ did a number on Merlot. You can’t discount that,” Gill said, though he noted that Merlot far outsells Pinot Noir by volume.

Source: Reuters

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Consumer Preferences - “Health”

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