ChikaLicious, 10 Years Strong

Serious Eats interviewed Chef Chika Tillman of ChikaLicious Dessert Bar and Dessert Club. In a sea of bakeries serving high-quality food, it’s inevitable that most of them will fail. Chef Tillman makes her operations look like a piece of cake. Here’s her take on ChikaLicious’ longevity and success:

“It’s probably because I’m the owner, the chef, the investor, and I’m the one working all the time. I don’t have to get paid! I just have to serve good food. But if you hire the chef, the chef has to get paid. The waiter has to get paid. I’m just one cook. Cooking is not the only thing you have to do as the owner but, in the end, the other part is, “How can I make a dessert that I believe in, and then get the customer to believe me?”

When asked about whether her focus was on the menu during the opening stage, “the best part is following the seasons and what’s the freshest; I go to the market and think about what I want to make, because we don’t have the space to store and so don’t carry a lot! So every day, things are fresh. We are very small—only two chefs with no waiters—so we don’t have a middleman between the customer and I myself can explain the dessert I’m serving.”

Chef Tillman claims the focus has always remained the same. “With more customers we have to work harder, but I think I shouldn’t make any detour or shortcuts. It’s always, ‘Don’t touch too much, but don’t be lazy with a dessert’.”

Fast Casual Restaurants in Hospitals

Nation’s Restaurant News details the latest trend in healthcare— an elevated dining scene in hospitals. Hospitals are infamous for serving inedible cafeteria food that does anything but promote health, ironically. Patients’ higher expectations have led Northwestern Memorial Hospital in downtown Chicago to construct a 70,000-square-foot dining and retail space, “Shop & Dine Northwestern,” which includes local, relatively healthy fast-casual brands including GRK Greek Kitchen, Sopraffina Marketcaffe, Protein Bar, Saigon Sisters and Au Bon Pain.

Northwestern Memorial Hospital did not have to work hard to propose the concept to restaurant operators, as the proximity to Chicago’s “Magnificent Mile” and constant foot traffic are compelling enough reasons to open. Another obvious perk to opening fast casual restaurants inside hospitals is the 24-hour operations.

Operators are taking note of the success of fast casual concepts in urban hospitals nationwide. “The trend in restaurants is that folks are trying to cater menus to healthier, fresher options, and given that we’re in health care, it was important for us,” explained Gina Weldy, vice president of real estate for Northwestern Memorial. “In the work environment we’re in now, people eat three meals a day near the office. These concepts give us the ability to offer that.”

IRS Cracking Down on Automatic Tips

Nation’s Restaurant News reported that The IRS is becoming much stricter with restaurant tip reporting. A tip is “voluntary, it has to be entirely set by the customer; it has to be the subject of something the customer comes up and not dictated by a policy; and the customer has to decide who gets the tip,” explains Tax Foundation Vice President of legal and state projects, Joseph Henchman. Fixed gratuities, commonly added to large parties’ bills, do not fall under the definition of a tip and are therefore legally considered service charges, which are a part of wages and are to go through payroll accordingly.

The revised IRS Ruling 2012-28 will in turn make included gratuities less attractive for restaurant owners and wait staff, and it will be more difficult to secure wait staff to work large parties since the financial gain is incalculable.

The biggest change the new ruling will incur is that servers will not be able to take their tips home at the end of their shift, but rather their tips will have to go through payroll and they will receive them in their next paycheck. The best way for restaurant owners to navigate this operational transition is to encourage open lines of communication with their servers and ask for their feedback to make their working experience optimal. There are delicate ways to remind patrons to tip without including gratuity.

New York State Minimum Wage is Now $8/hour

New York State minimum wage has increased from $7.25 to 8/hour as of Dec. 31, 2013, and will remain at this rate until 12/30/14.  There’s a light at the end of the tunnel for minimum wage employees, as the rate will continue to increase to $8.75/hour in 2015 and to $9/hour in 2016. The updated law affects almost every restaurant and hotel employee covered by minimum wage law. The addenda also affect the uniform maintenance rate and employees who work shifts longer than 10 hours. The maximum tip credits that employers can claim will increase by the same amount as the minimum wage, so for example $0.75 in 2014, another $0.75 in 2014.

If you have not already done so, you will need to provide a new pay notice to your employees for the minimum wage rate increase.

For more answers to frequently asked employee and employer questions, visit NYC.gov.

Starbucks Pays it Forward X 870

In light of the holiday spirit, a Starbucks drive-thru in Newington, Connecticut has just broken the “pay-it-forward” record. Yesterday, at least 870 customers paid for the order of the person behind them. In turn, this Starbucks location received the gift of giving too, as the higher than usual traffic led to a spike in sales. Good Morning America covered the random acts of kindness.

Manhattan’s First Dinner-and-a-Movie Hybrid to Open

Joining the ranks of Brooklyn’s Nitehawk Cinema is Manhattan’s first dinner-and-a-movie venue, a high-end movie theater with food and beverage service, founded by IPic. The 40,000 square foot outpost in the Fulton Marketplace will sell tickets between $14 and $28, depending on the time and service offered. Reclining seats, blankets, and personal call buttons are just a few of the probable amenities to be offered.

The menu at the Pasadena location includes popular munchie favorites like Buffalo chicken spring rolls and fish and chips.

The movie/dinner establishment is scheduled to open in 2015.

“Secret” Menus, or Not-So-Secret Menus…

Mark Wilson, contributing writer at Fast Co. Design, detailed the ins and outs of “secret” menus at restaurants including Chipotle, Starbucks and In-N-Out Burger. Chipotle’s “Quesarito,” Starbucks’ 170,000 customizable beverage permutations and In-N-Out’s “animal-style” fries are a few of the secret (or not-so-secret) menu options that add to these restaurants’ mystique and allure.

“I think of it as the customer’s the brand manager,” Chris Arnold, Chipotle’s Communication Director says. “The experience of the public is something different for everyone, like an iPod in a way. How many billions and billions of iPods are in circulation, and yet no two [playlists] are alike. You buy a burrito, I buy a burrito. We pay the same thing for it, and they’re two very different things.”

Read about Wilson’s comically relentless quest to order the arcane “Quesarito” at Chipotle, amongst his other classified culinary discoveries.

Building a Strong Team Beyond the Holidays

Jason Hamilton of FastCasual recently shared his insights on employee appreciation during the holidays. Most quick-service and fast-casual restaurants remain open during the holidays, leaving little to no opportunity for employees to take time off and celebrate with family. It’s also during this time that foot traffic and product demand is higher than usual.

COO and CFO of Heartland Restaurant Group LLC (doing business as Dunkin Donuts), Anthony Braun, sent a personalized letter to his team acknowledging their “amazing, spirit, unwavering commitment and incredible work ethic,” and reminded them to take the time to stop and enjoy time with loved one during the holiday season. Braun’s acknowledgment goes beyond writing; he makes it a point to visit Dunkin Donuts locations that are open during the holidays. Braun also shows employees his appreciation through gift cards and thanking them for sacrificing time they could otherwise be spending with family.

Braun advocates for demonstrating employee appreciation year-round, not just during the holidays, although during the holidays it’s especially important. “The difference between a decent place to work and the best place to work is not what you’re given but how you are treated,” claims Braun. An enterprise’s culture is directly related to building a strong team that is dedicated to maintaining the values of the brand and providing quality customer service.

When management sets a precedent of humility and genuine care towards employees, these qualities become contagious and employees demonstrate them towards customers, and reciprocate them towards management. This synergy results in outstanding customer service.

Recognizing employees during the holiday season does not necessarily have to be in a monetary form, such as bonuses and gifts.  A handwritten note can show the same sentiments.

Pizzerias Look to Chipotle as Model

With the onslaught of burger, Mexican and and sandwich retail enterprises, pizzerias are one sector that has yet to be amplified in the fast-casual market. That’s where Pizzeria Locale comes in. The Denver restaurant, that Chipotle helped finance, serves pizzas in the same fashion Chipotle serves burritos: made to-order quickly, individually tailored and with higher quality ingredients than its low-end competitors.

Fast casual restaurants like Chipotle and Panera Bread Co. are stealing market share from casual restaurants like Olive Garden where food takes longer to arrive, and fast food chains like McDonald’s where quality is not in the picture whatsoever.

Cover App: An Easy Payment Solution for Restaurant Meals

The app Cover is revolutionizing the way customers pay for restaurant meals. “What Cover is focused on — removing payments from the table altogether — I really do think that is fundamentally transformational,” according to Denee Carrington, a mobile commerce senior analyst at Forrester Research. “The part of your dining experience that you want to care about or want to remember is not how you paid. The more that can disappear, the better.”

Paying for meals at restaurants can be vexing. The process of getting the server’s attention for the check, waiting for the check, figuring out the appropriate tip and splitting the bill in multiple ways depending on the party size, can be time-consuming and leaves room for errors. Cover allows diners to notify the server at the beginning of the meal that they’ll be paying with the app, and as soon as they’ve finished eating, they are free to leave. Cover handles the bill accordingly with a pre-determined tip percentage the app user has applied. The app also automatically splits the bill amongst all the diners. 

Cover is mutually beneficial for restaurant owners; the fees are lower than those of credit cards. Cover also offers following-day deposits in contrast to three to five business days for the average credit card. Circumventing the check process entirely turns tables faster as well.

Several casual restaurants in New York are already using Cover, including Parm, Empellon Cocina and Charlie Bird, to name a few. You can view the full restaurant list here.