How Small Business Owners Can Overcome the Challenges of the Minimum Wage Hike

Small business owners often feel a greater impact from the minimum wage hike than larger corporations. Dilemmas such as absorbing increased operational costs pose as serious obstacles to running a business smoothly. Fast Casual suggests six steps to alleviate the negative impact imposed by the minimum wage increase:

  1. Understand profit margins, projections and business requirements to ensure profitability
  2. Determine permanent hiring vs. contracting decisions for staffing needs
  3. Make good hiring decisions— mistakes can be costly since training/onboarding new employees is a considerable investment
  4. Invest in employees— turnover decreases productivity and increases business costs
  5. Be sure to employ time and cost saving tools to standardize back office tasks. Consider outsourcing to easy affordable services that allow you to focus on growing business not administrative functions
  6. Research competition and adjust price accordingly

Why You Should Put Your Employees First

High school dropout turned restaurant mogul Cameron Mitchell, of Mitchell’s/Columbus Fish Market and Mitchell’s/Cameron’s Steakhouse (sold to Ruth’s Hospitality Group for $92 million), details his journey from the lazy cook in the kitchen to one of the hardest working restaurateurs, reports Fast Casual.

In his keynote speech at this year’s North American Pizza and Ice Cream Show in Columbus, Ohio, Mitchell outlines his priorities when he first started his own restaurant group back in 1992. He explained the importance of first highlighting the company culture and values. “There are two components to opening a successful restaurant,” Mitchell claims. “Number one is having a good strategy. I made  a lot of mistakes, but I surrounded myself with smart people. Number two— the most important piece— is the company’s culture and values.” His core values are:

Two core values:

  1. The associates come first. Mitchell says, “The guest is not the most important to us. I know this isn’t our industry standard way of thinking, but I will tell you in my business we take care of our people. It’s a triangular effect. If we take care of our associates, they take care of our guests, and our guests will take care of our company,” Mitchell said, adding there are “programs and policies” in place to reinforce this value every day.
  2. The answer is always yes. Mitchell’s company’s training policy declares, “The answer is yes is the backbone of our company.” The story that inspired him to ingrain this value is the time is son ordered a milkshake and both the server and manager said “no.” In response, Mitchell ordered a chocolate milk and a la mode ice cream and requested they be blended together.

San Francisco’s Day-Old New York Bagel Craze

The demand for New York bagels is very high— so high that San Franciscans are willing to form 2-hour long lines out the door, in the rain, to the Eastside Bagels pop-up. Eastside Bagels is serving Russ & Daughters bagels, shipped overnight, and their latest venture has proven to be such a success that plans for expansion are in the pipeline.

Smorgasburg Vendor, Beehive Oven, Opening Brick-and-Mortar Eatery

Brooklyn-based biscuit vendors, Treva and John Chadwell, are aiming for a spring opening at 743 Driggs Avenue. Beehive Oven, the acclaimed biscuit vendors at Smorgasburg, will announce plans to serve beer and wine at tomorrow CB1 Brooklyn meeting.

California’s Homemade Food Act Creates 1,200 Jobs

Nearly 1,200 jobs have been generated since the California Homemade Food Act passed in August 2012, reports Serious Eats. This bill allows small business owners who produce “cottage foods” from their home kitchens to sell their goods at farmer’s markets, to retailers and from home. Products containing meat, dairy or seafood are not permitted in the bill, and producers must first pass a food safety class before they can sell. The foods that can be sold include breads, jams, candies, nut butters, mustards and more. Several other states are hopping on the “cottage food” bandwagon as well.

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.

‘Inoteca Closing This Weekend, Needs Help Consuming Remaining Wine

‘Inoteca management has announced the tapas restaurant will be closing forever this weekend. Guests are invited to help finish the remaining 1,300 bottles of Italian wine by Sunday morning at 4am. Steep discounts of up to 80% have been applied.

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.