The Challenges of Earning an A

Since the Health Department’s grading program launched in 2010, restaurateurs have been feeling the additional pressure of earning and maintain an A, reports the Wall Street Journal. Further increasing the stakes is the public’s accessibility to restaurant grades. A smartphone app that gives a break-down of restaurants’ letter grades, scores and health violations, introduced by the Health Department in 2012 has been downloaded 44,000 times and maintains a database of 24,000 restaurants.

Pressure from the heavy value the public places on the letter grades restaurants earn has some restaurateurs turning to restaurants consultants who will perform mock health inspections ranging typically from a $250 one-time fee to thousands of dollars for yearly contracts.

A 2012 Quinnipiac University study found 82% of survey participants support the use of letter grades to evaluate restaurants and 67% consider letter grades when deciding where to eat.

Often, consultants end up in the position of informing restaurant owners about the ironies of the system. The presence of mice may not cause a restaurant to lose its A rating, however not having a person on site with a food-protection certificate, awarded by the city after completing a 15-hour course, will likely greater risk.

Fine Dining in Bergen Hill’s 3 ft x 5 ft Kitchen

Carroll Gardens’ Bergen Hill may lack an oven, only have a few induction burners and a sandwich press and measure 3 feet by 5 feet; however, that doesn’t stop Chef Andrew D’Ambrosi and Sous-Chef Anthony Mongeluzzi from churning out delicious, inventive Italian fare. One of the many popular dishes is a squid “tagliatelle”, or squid that’s been shaved into ribbons to resemble tagliatelle, cooked to al-dente perfection. D’Ambrosi and Mongeluzzi honed their culinary sleight at Le Cirque; while the ambiance may be less stuffy at Bergen Hill, the standards are equally high. Both men have taken a humble approach since the restaurant’s opening in September, as Mr. D’Ambrosi contributed to the creation of the Mediterranean-tile tabletops. He has no problem shoveling snow off the restaurant’s threshold as well.

Fast-Casual Restaurants Lead Traffic Growth in 2013

Nation’s Restaurant News reports that the fast-casual segment lead traffic growth for the fifth consecutive year. Market research firm, the NPD Group, discovered that total customer visits to fast-casual restaurants increased 8 percent in 2013 compared with flat traffic overall for all restaurant segments.

“Overall, restaurant customers are trading down, foregoing some of their visits to full-service places while increasing the number of visits made to fast-casual restaurants,” justified Bonnie Riggs, The NPD Group’s restaurant industry analyst. “Fast-casual concepts are capturing market traffic share by meeting consumers’ expectations, while midscale and casual-dining places continue to lose share.”

The check average for fast-casuals was $7.40 during the twelve months that ended last November. The quick-service segment’s average was at $5.30 and casual dining’s $13.66.

Chipotle Invests $10 Million in Mobile Payments

In an effort to maximize throughput and eliminate the time-consuming steps involved in cash and credit card transactions, Chipotle is investing a few hundred dollars per location in adding mobile payment technology to its ordering app. This isn’t about staying current with the latest technology trends for co-CEO Steve Ells, but rather a worthwhile investment to ameliorate guest convenience and foot traffic for the long-run. The updates to Chipotle’s current ordering app will process payments through a bar code scan or Bluetooth connection.

IHOP’s Menu Redesign Boosts Sales

A video from Bloomberg Businessweek explains how IHOP’s new menu increased sales by 3.6%. IHOP hired design experts to revamp the menu after customers complained about seeing too much text, which was ultimately overwhelming. due to customer complaints, the too many choices. too much text. The menu redesign experts suggested IHOP included more pictures; people love to see pictures of what they’re going to eat, and this is a great way to break up the page while promoting new menu items. Secondly, boxes are a requisite. Organizational, eye-popping boxes remind customers that they can order sides. Lastly, colors are a bonus. Color-coded categories help customers navigate through the menu, and the extra browsing that customers might not have otherwise done allows them to find something in the middle or back of the menu.

Meet-Up: How Tech is Transforming Restaurants

Network with industry members over wine and snacks while learning more about the influence of technology in restaurants on Thursday, Jan. 30th from 7-10pm at Grind Broadway (1412 Broadway, 22nd Floor). Find out more about the dozens of tech startups that are passionate about optimizing customer experience and restaurant operations. Local food artisans will have the opportunity to exhibit their products; email nina(at)foodtechconnect(dot)com if interested.

Confirmed presenters include:

Mark Egerman or Andrew Cove – co-founders, Cover – An OATV and Lerer Ventures backed payment processing app that lets customers seamlessly pay for their meals and saves restaurants money on credit card fees. @coverpay / [masked]

Alice Cheng – founder & CEO, Culinary Agents – A RRE Ventures and Correlation Ventures backed professional network that offers job matching and networking for culinary professionals in the food, beverage and hospitality industry. @CulinaryAgents [masked]

Darren Wan – CEO & co-founder, Easy Pairings – An online marketplace for the hospitality industry that allows restaurants to lower recruitment costs and find great staff quickly and easily. @easypairings / [masked]

Eric Poley – VP of Sales, Objective Logistics – A Google Ventures and Atlas Venture backed retail/restaurant-focused software company that provides an artificially-intelligent, web-accessible labor performance management platform (MUSE). @OBJL / [masked] 

Matt Oley – VP of Sales, Swipely – An Index Ventures and Shasta Ventures backed service that processes credit card payments for local merchants, then uses payment data to help businesses market and develop customer loyalty programs. @Swipely [masked]

Swipely’s: Consumer Intelligence for Restaurant Operators

Swipely’s new release, “Winter ’14“, now includes menu and server performer intelligence to help restaurants “make smarter decisions about their key drivers— food, staff, and marketing,” according to CEO Angus Davis. The Swipely system is compatible with several major POS systems, and it stores data each time customers pay using credit or debit cards, which is roughly 75% of the time. Additionally, Swipely reduces the cost of accessing credit and debit card payments for restaurant operators. Operators can apply the information the insights about their servers to aid in training and decision making. Similarly, by evaluating which dishes are best-sellers, operators can more easily make sound marketing decisions.

The “Brooklyn” Water Difference

Thanks to a high-tech water filtration system that produces “Brooklyn” water, or water that has been filtered down to its purest state with the addition of signature New York elements, Brooklyn Water Bagel Co. is marketing a superior product across their food and beverage line. CEO Steve Fassberg defends the quality of his bagels, “We truly believe that guests will learn the real difference our water makes when they enjoy one of our freshly baked bagels. Our bagels have a thin, crusty exterior that’s golden brown and moist, just like they would find in Brooklyn.” The H20 isn’t Brooklyn Water Bagel Co.’s only strength. Customers can witness the baking process of dough to bagel, leaving them with a memorable experience. The magic lies in the water.

Analyzing the Restaurant Industry in 2014

Analysts exchanged views on the state of the restaurant industry in a teleconference that preceded the ICR XChange, a restaurant and retail investment conference, last Friday in Orlando. Frigid weather and middle- and lower-income wage decreases intensified by the Affordable Care Act have been the recipe for first quarter restaurant industry struggles. Despite these obstacles, many restaurants are seeing better numbers this year. Managing Director for equity research at Raymond James, Bryan Elliot, believes that the casual dining and quick service segments will be forced to continue to focus on value until middle- and lower-income families see more purchasing power. Analysts predict that technology-use will soar this year for both operational and consumer purposes. “The biggest challenge is transitioning from TV to mobile and Internet marketing,” predicts Elliot. Other trends? Fast-casual pizza is the “category du jour” and tiered value menus will continue to snowball.

Bare-Handed Food Contact in California is Prohibited

A new section (113961) of the California Retail Food Code bans restaurant workers in California from handling ready-to-eat food with bare hands. The code went into effect Jan. 1, however health officials have implemented a soft rollout for the initial six months in consideration of operators who would likely be unprepared to handle the sudden changes. The rules apply to any ready-to-eat food that will not be cooked or reheated, including sushi, bread, baked goods, salads and garnishes like parsley, lemon wedges and pickles. Foodservice employees must still wash hands with soap and warm water thoroughly before prepping food, putting on clean gloves and between glove changes.

The new law states:

(a) Food employees shall wash their hands in accordance with the provisions established in Section 113953.3.

(b) Except when washing fruits and vegetables, as specified in Section 113992 or as specified in subdivisions (e) and (f), food employees shall not contact exposed, ready-to-eat food with their bare hands and shall use suitable utensils such as deli tissue, spatulas, tongs, single-use gloves, or dispensing equipment.