Do You Know Your Food Waste?

July 5, 2016 by Leave a Comment

Did you know that the average restaurant in one year creates more than 50 tons of food waste?

Talk to any restaurant owner, and you will likely find that food waste is one of the top concerns when it comes to revenue loss.   A 2013 study conducted by Business for Social Responsibility (BSR), on behalf of the Food Waste Reduction Alliance, indicated that more than 84 percent of the food waste generated by surveyed U.S. restaurants ended up in the landfill.  Only 1.4 percent was donated, while 14.3 percent was recycled, and most of that was reclaimed as cooking oil.  On average, that translates to 15.7 percent food loss across the industry, or 3.3 pounds of food waste per $1,000 of company revenue.

Reducing waste makes good business sense for a restaurant.  The first step in reducing waste is to measure and track the amount, type, and source of the food and packaging waste.  Maintenance of a daily waste logbook can help food establishments (1) save money by reducing over-purchasing and disposal costs, (2) lessen environmental impacts, (3) support efforts to eliminate hunger, and (4) increase tax benefits by donating food.  It would be best to assemble a team of employees who prepare the meals (because they are familiar with the amounts of ingredients used in the dishes) and clean the dishes (because they are familiar with the type and quantity of food left over by guests).

Pre-consumer kitchen waste, which could be caused by incorrectly prepared food, spoiled food, trim waste, or simply overproduction, constitutes an estimated 4-10% of purchased food, and becomes waste before it ever reaches the table.  There are solutions for reducing this portion of food waste, such as donating to a food bank and creative re-use of certain foods (e.g., making day old bread into croutons).

Post-consumer waste after the meal relies heavily on consumer preference.  Some people take home a doggy bag and others send it back to the kitchen trash.  Garbage left over after dining represents the food not eaten, as well as disposable packaging such as plastic plates and cups.  Promotion of extra-large servings of food has been used as a marketing gimmick in the United States, and has backfired, leading to increased food waste.

In the kitchen, the easiest way to sort waste is by using different containers.  Categories may include meat, fresh fruit and vegetables, bread, glass, paper and plastic.  A large number of categories provides a clear picture of the type and quantity of waste and brings more recycling options.  The sorted waste should be measured at the end of each working shift, to compare how much food a restaurant sells and how much food is wasted.

Action items to reduce food waste

  • Identify the restaurant menu items that have the most leftovers, and consider reducing the portion size of these menu items to reduce waste and food cost. In addition, purchase ingredients in smaller packages if you are not using the inventory timely.
  • Conduct inventory in the restaurant on a regular basis so that you can identify the need for new purchases in due time – not too soon and not too late.
  • Purchase high-quality kitchen equipment such as specialized knives that can help to lower food waste when peeling fruits and vegetables, or cutting meat and filleting fish.
  • Invest in new dinner service; plates and glasses with smaller volumes will reduce portions.
  • Handle fruits and vegetables properly by cleaning them and storing them in a suitable container to extend their lives.
  • Rotate the food in the refrigerator and warehouse on a regular basis; set the foods that should be used first in front of the food that is newly stored.
  • Encourage your local restaurant to sell half portions of food if the serving size is too big.
SAMPLE WASTE LOGBOOK
Facility:
Date:
Special Events
TIME

NAME

 FOOD TYPE LOSS REASON # OF PORTIONS # OF QUARTS # OF POUNDS
        PICK ONE

How to Use the Waste Logbook

Pre-Consumer Food Waste should be tracked every day.

  1. Track pre-consumer food waste at the time of discard. Record waste on the logbook immediately prior to placing it in the trash, compost or garbage disposer.
  2. If donating food to a food bank, record all food donations on the waste logbook immediately prior to donation.
  3. Record the type of food and the reason why it is being discarded on the logbook. These are the two most important pieces of information that will reveal opportunities for change.
  4. Record how much is being wasted according to weight or portions.
  5. Chefs and Managers should review the prior day’s waste logbook at the beginning of the following day’s shift.
  6. The Top 5 waste items should be discussed with the kitchen team at a pre-shift meeting. Ask the team for ideas to reduce those items.
  7. Review progress on the Top 5 items every week until the amounts drop.

 Post-Consumer Food Waste should be tracked once a month.

  1. Use a logbook to track the total weight of the trash (or another standardized metric such as number of trash cans or number of trash bags).
  2. Keep a record of total weight or count of post-consumer food waste in an Excel sheet or automated tracking system.
  3. When measuring post-consumer waste, always do so on a busy day and track subsequent measurements on the same day of the week. With this approach, you will have comparable data.
  4. Make sure to look at the food in the garbage and note any trends. There may be items that customers do not like which should be removed from the menu. In other cases, you may find portions need to be adjusted to avoid waste.

 

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The New Tech Changing the Guest Experience

May 4, 2016 by Leave a Comment

In 2015, the foodservice industry saw some major technological changes—the introduction of EMV processing, Apple Pay and NFC adoption, and the continued rise of mobile POS terminals. But how can operators use this new tech to improve the guest experience? That’s what we will be discussing in this month’s Enterprise Insight.

Applying what’s new and hot in tech to your enterprise operations can be a double-edged sword. Thus, we advise our partners to focus on using new systems for the following key experiences: Loyalty, Mobile Ordering, and the Point of Sale.

 

Loyalty

 Tech-based loyalty programs are the best to engage repeat guests for two reasons: they provide insight and opportunity.

Systems like Square and LevelUp provide guest-specific metrics that a traditional punch card cannot. With these tech-based programs, operators can monitor, when your repeat guests are coming, what they’re purchasing, and how often.

This, then, allows you to more-personally and uniquely reward your best guests. Rather just the tenth cup free, you can reward birthdays, new guests, or stalled guests. This information and opportunity need to be handled appropriately, though; be wary of spending too much or not delivering.

It’s important to be mindful of perception, as well. Starbucks has been in hot water recently for the changes to their loyalty program. Originally, the coffee chain had been rewarding repeat guests with points, which were then redeemed for a product of the guests’ choice. However, when Starbucks changed the system to be based on dollar values rather than visits, guests were outraged. With a close look, though, the economics of the program actually benefit the most frequent guests—but the message wasn’t received as such.

Lastly, be mindful of your costs as you consider your strategy. We always run the numbers at different adoption rates to determine the good and potentially bad impact any program will have on your bottom line.

 

Mobile Ordering and Delivery

While Americans are dining out more than ever, at lunch they’re bringing that lunch in—or never even leaving. Mobile Ordering is imperative for your operation because it allows guests to place orders with security and comfort; they know that the order was received without anything lost in translation and, with the right technology in place, without even opening their wallets.

Seamless and Grub Hub are the industry titans, but newer start-ups like ChowNow, Brandibble, Olo, and OpenDining are bridging the gap between guest and enterprise: these services integrate directly with restaurants’ websites and apps to create a truly ‘seamless’ experience.

Within high-density areas, the rise of food delivery has evolved a segment of the restaurant industry to new extremes. Mobile Ordering connects diners and operators with a collection of middle-men: the IT team and the delivery team. Now, though, operators are developing their own ordering and delivery platforms with kitchens for a virtual restaurant—no seats, no servers, just delivery drivers and a website. In New York, Maple has seen huge growth and spawned a growing list of similar concepts.

 

Point of Sale

EMV, Apple Pay and NFC payments are important changes in the industry because they massively change the point-of-sale experience. While EMV actually increases friction—guests are using new equipment that increases the processing time—Apple Pay and NFC actually eliminate this, as well as traditional card swipes. And as with mobile ordering, these systems keep the credit card on file—guests never have to take out their wallet.

Similarly, start-ups like CheckMate are eliminating final step in the service cycle: dropping the bill. CheckMate is designed to make life for the service staff easier by allowing guests to pay for their bill from their phone. Via integrations with the existing POS, CheckMate allows restaurants to drop a “virtual bill,” which guests split, tip, and pay.

As with any new system you implement, you should carefully research, plan, and forecast the necessary components and implications. While these systems are all great individually, they don’t always communicate; for example, LevelUp and Square will not work together. Seamless won’t integrate directly with your point of sale. There are some systems, though, like Toast POS that offer a full suite of add-ons to create a complete ecosystem. And again, at TaraPaige, we ensure that the options we proceed with are the right fit financially, operationally, and experientially.

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Evolution of the Fine-Fast Casual Enterprise

January 28, 2016 by Leave a Comment

The restaurant industry has gone through a dynamic shift in dining habits.  Guests spend their money differently and seek to be more enagaged in their food experience. This change has incubated a class of restaurants—the fine-fast casual segment—which is, as we all know, fully blossoming.

With this, we are now also starting to see differences in service styles within the segment – We have highlighted 2 standard bearers to this and a new model that we call the Cafe-Table.

1) Assembly Line

Chipotle popularized this and made the envy of every restauranteur.  Guests enter the enterprise, get in line, and are engaged by a string of team members who assemble the order in front of the guest before ending at the cashier.   Countless enterprises have come to market as the “Chipotle of” their category by substituting pizza or Indian cuisine or salad for burritos.  And for good reason: this is the simplest, most efficient, and low-cost model.  Because the majority of the food is prepared ahead and assembled to order, labor is streamlined, and the delivery time is kept low, as guests are spending the majority of their wait in line to begin the process.  

However, the model does have some drawbacks; namely, there is little room for hospitality and it inherently feels more transactional.  Guests feel pressure from the line behind them and are shuffled from one team member to the next, making it nearly impossible to build any rapport.  But for moving people through the enterprise, nothing is faster.

2) Counter Only

Starbucks, Shake Shack, Panera—many of the major players are using this format.  It’s a model almost as old as the restaurant itself: guests place their order at the register, wait for it to be prepared, and are called back to the counter when it’s ready.  

The added benefit here is twofold: a sense of freshness and service.  While guests do notice the increased ticket time more, it also elevates the sense of occasion, which in turn increases average check.  Because the food is prepared to order, though, labor tends to be slightly higher.  

3) Cafe-Table

Lastly, what we are seeing become more and more popular as quick-casual eats up more of the full-service segment is this slight hybrid, counter service with a runner, the Cafe-Table Model.  For decades, cafes have utilized the system wherein guests place their order at the register, take a number, and identify their seat with that number for the service staff to deliver to when the food is prepared.  

As the market has become saturated with the aforementioned models, more and more operators are looking to differentiate and elevate their fine casual enterprise.  This is often how they’re achieving that.  Bringing the food to the table doesn’t add much in labor cost, but the guest experience changes dramatically.  Additionally, with team members in the dining room to run and clear, table turns can actually speed up in comparison to the Counter Only model.  This does require a more skilled team member—someone capable of reading a dining room, clearing tables, and interacting with guests.  

We anticipate this trend increasing as food and labor costs rise.  As third-wave coffee shops, bakery-cafes, and the like cope with the Fight for $15, they will need to either increase check averages or foot traffic.  Elevating the guest experience is a chance to improve from within your four walls.  If you’re considering this service format, do keep in mind that it also requires a compelling menu and strong kitchen to match.  Read about our most recent experience with the format in this month’s Retail Spotlight here.

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The Market Tour: Defining Your Concept in the Marketplace

August 22, 2013 by Leave a Comment

Concept development is a critical phase in creating a new enterprise.  A strong, well-articulated concept defines who you are in the marketplace and will guide you in writing your business plan, seeking funding, and setting up your enterprise’s operations.  It will also aid you in making decisions about the look, feel, and experience in your enterprise, from design and décor to service style.  In this month’s retail spotlight, we highlighted Williamsburg bakery Bakeri, whose concept is both authentic and clear.  But while developing your concept is an exciting and necessary step, it can also be challenging.  Below, we discuss one of TaraPaige Group’s methods for developing new concepts with our clients—a market tour.

A market tour is the perfect first step to defining your concept.  After all, if you want to define yourself in the landscape of your market, you have to know what else is out there.   To build a great market tour, create a list of enterprises that are similar to the one you envision.  Then consider enterprises that differ in a specific way— perhaps they are in a different neighborhood, have a different service style, offer different products, or have a slightly different target market.  By creating a diverse list, you give yourself the broadest slice of your potential inspirations and competitors, allowing yourself to learn from their successes and their missteps.  You may find in the course of your tour that your concept changes and adapts from what you originally envisioned, or you may have your original ideas confirmed.  Either way, seeing a varied group of enterprises will give you guidance on the direction of your concept.

Furthermore, by seeing many different concepts and discussing them, you will also make sure that you and your business partners or team are thinking similarly about your concept.  What one partner means by “simple breakfast items” or “open layout” may differ from the rest of the team’s interpretation.  Seeing concrete examples of different spaces, products, and service styles will open a constructive dialogue amongst your team.

Most importantly, a market tour will allow you to determine the size and scope of the general market, including generating revenue estimates, determining traffic, discovering trends, and finding unmet demand in the marketplace around you.  Maybe, for example, there are very few coffee shops near a major university, or a lack of made-to-order sandwich enterprises near a large office building, or not enough authentic ethnic food enterprises in your city to meet the demand.

By discovering a need in the market, you begin to define the key descriptor of your enterprise—your mission statement.  Your mission statement answers three questions: why does your enterprise exist, for whom does it exist, and what need does it serve?  When you have discovered the answer to the final question, the other two will fall more easily into place.  Moreover, by addressing a clear and demonstrable market need, you give more weight to your business plan and show investors the market potential for your concept.  The additional data you can gather about market size will further serve to underscore the strength of your proposed enterprise.

Beginning your concept development with a market tour is a fun, effective, and productive way to kick off the important work of positioning yourself in the marketplace.

Happy touring…TaraPaige Group

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Operational Keys to Implementing the 80-20 Rule

July 29, 2013 by Leave a Comment

Recently, we posted about the 80-20 rule, which says that roughly 80 percent of an enterprise’s sales will come from roughly 20 percent of its guests.  This powerful realization means that you as an owner need to know who those “valuable few” guests are and how to optimize your operations to serve them well and increase their numbers.  Below are some operational keys to help you do so.

 1)    Harness the Power of Your Service Flow

In order to take advantage of the 80-20 rule, you need to know which of your guests are your regulars.  A loyalty program can be a simple way to do so, but in order to utilize it well, you have to make the program visible and easy to use for your guests.  Whether you choose a program with reporting and advanced data collection, or a simple e-mail list, make sure that you integrate the sign-ups, check-ins, or other loyalty activities with the flow of your retail store.  Guests should be invited to use the program as they move through the enterprise, whether it is by a check-in point at the door, a message advertising a promotion for loyalty program members as guests browse the grab-n-go cases, or a sign-up and reward redemption reminder at the register.

2)    Integrate Your Systems

Make sure that your P.O.S. system, loyalty program, and contact-management program work together, so that you don’t lose track of valuable information.  Integration does not need to be high-tech.  Even if you just use an email program for sending emails to regular guests, make sure that your P.O.S. has an entry to record whether e-mailed promotions were redeemed and by which guests, for example through a unique promotion code.  Another simple option is a mobile loyalty app, which can have multiple features that integrate and offer easy data reporting.  For more about mobile loyalty programs, see our recent piece here.

3)    Empower Your Employees To Be Your Greatest Asset

Train staff so they know how important building a base of regular guests is to the enterprise, and ask them for their help in doing so.  Include in their steps of service a question asking guests if this is their first visit to the enterprise and whether they belong to your email list or loyalty program.  Be sure they know what special promotions, considerations, rewards or extra services are available to regular guests and that they use them.  And when staff encounters new guests, always be sure they make a spectacular first impression by welcoming new faces and inviting them to return.

Happy implementing…TaraPaige Group.

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Maximizing Sales through Great Product Presentation

June 25, 2013 by Leave a Comment

Creating a visually appealing, beautifully designed retail store can benefit your enterprise in a number of ways. Product presentation is one key design factor that has the potential to significantly improve sales. If your product is presented well and is easy for guests to see and pick up, they are more likely to purchase it, increasing your average check and your top-line performance. Below we discuss some key points to optimize product presentation in your retail enterprise.

Most importantly, make the product easily accessible to your guests. This means, first, that the products must be visible and physically accessible to guests when they walk through the service flow of your enterprise. Place beverage cases, pastry cases, packaged products, and merchandise where guests will naturally see them as they order, pay, and receive their food. For example, place beverage cases to the right (where many people naturally look) of the line to place an order, and small merchandise to the (guest’s) right of the register.

Accessibility also means creating as few barriers as possible between guests and the products. Place branded merchandise, non-food items, and grab-and-go food where guests can pick them up and look at them—on an open shelf or in an open cold case, for example. For pastry and other unwrapped food in cases, use glass or clear plastic cases that are well-lit, so that guests can see and be enticed by the items as they wait to order.

Cases also should be consistent in orientation and clearly labeled. While guests may not notice that each pastry is facing exactly the same way, they will notice the overall impression of care and attention that went into creating the presentation. The clean, tidy look of the case will also make them more likely to see individual items and be excited by them. Legible labels prevent staff from having to answer questions about each item. And a well-worded description can pique a guest’s interest and make them more likely to order the item described.

Your products are not only what will make you financially successful, but they are also the stars of your enterprise—so make sure they shine!

Happy Presenting…TaraPaige Group

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Tech Trends: Social Hiring Streamlines Staffing

May 30, 2013 by Leave a Comment

Staffing can be overwhelming for any enterprise, but many new resources, including Hourly, JobFox, Harri, and Jobster, hope to simplify the process by creating social networks for hiring, where candidates and employers create profiles and are matched together. There are many advantages for both enterprises and jobseekers.

For enterprises, there are several key benefits. First, social hiring allows enterprises to search for and see profiles of only those candidates who have the skills, certifications, or experiences required for the job. Candidates’ profiles also bring them to life in ways that go beyond the typical resume and cover letter, allowing enterprises to see quickly whether candidates could be a good fit for their work environment.

Furthermore, social hiring provides one streamlined hiring interface without cluttering up email inboxes. Enterprises can hire back of house, front of house, and other staff all on one site. Sites like Hourly even allow enterprise to find graphic designers, accountants, web designers, and other professionals they may need.

Social hiring can also help enterprises keep records for compliance. Some social hiring sites will soon offer downloadable reports of all candidates who were matched to a job, which may help enterprises keep notes to protect themselves in the event of a lawsuit or investigation.

For jobseekers, social hiring allows them to find many types of jobs easily. Jobseekers select what type or types of work they are seeking and what type of employer they would like to work for, then let the hiring site make the match, rather than having to search several job sites for individual positions. Profiles also allow jobseekers to give prospective employers a better sense of their work style, personality and goals. Some sites will soon allow jobseekers to display portfolios and projects, as well.

For both enterprises and jobseekers, social hiring also provides transparency. Many jobseekers choose to post references and background check verification, eliminating that step for prospective employers. Likewise, there is a degree of accountability and legitimacy in employer profiles that is absent from many job sites, where posts are often made anonymously and are not traceable.

Happy Hiring…TaraPaige Group

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Ten Keys to Building a Better Business Partnership

April 30, 2013 by Leave a Comment

Partners can be a huge asset when developing a new enterprise or strengthening your existing enterprise.  Yet a partnership can be a complex relationship, as well.  In this month’s Enterprise Insight, we discuss a few key factors in building a successful business partnership.

1)    Like Each Other
Partners will spend a lot of time with each other creating and operating an enterprise, so liking one another on a personal level is critical.

2)    Trust One Another
Trust is the foundation of your partnership.  Partners must trust each other’s judgment, competence, and integrity in order to make each step of the business as seamless as possible.

3)    Always Be Transparent
If you feel comfortable with one another, this should be easy.  All partners should be upfront about their needs, ideas, and thoughts in order to build a cooperative team and maximize innovation.

4)    Seek Complementary Skills
Look for partners who have skills or experience you lack.  This will strengthen your team immensely.  By creating a diverse team, you also minimize conflicts by allowing each partner’s expertise to shine while learning from one another.

5)    Share Similar Values
While partners may have different skills, each one should be committed to common company values, such as building vendor relationships, maximizing returns in a certain time period, or creating an incredible guest experience.

6)    Value Partner Contributions
When partners recognize and appreciate the skill, experience, and expertise that each brings to the partnership, it not only makes them more effective, but also builds the trust upon which the partnership is built.

7)    Define Equity Percentages
Doing so makes each partner’s financial role in the business clear and minimizes questions and areas of conflict down the road.  It will also provide a framework for the business to grow and expand later on, either through increased investment or sale of the business.

8)    Structure Decision-Making
There must always be someone to break a tie between two partners.  Either one partner must have formal authority to make the final decision in certain matters or all areas, or a third partner must do so.   Without a procedure for making decisions, your partnership and your business will come to a standstill.

9)    Create an Exit Plan
Be clear from the start about how a partner can exit the partnership, the partnership can dissolve, or the business can be sold to investors.

10)  Set Your Business Game Plan
Doing so will make sure all partners are on the same page about the vision for their enterprise and set a tone for growth and success as the partners work to realize that vision.

Happy Partnering…TaraPaige Group

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Tech Trends: Mobile Loyalty Programs Benefit Enterprises and Guests

March 29, 2013 by Leave a Comment

As part of our continuing series on tech trends, we explore the growing trend towards mobile loyalty programs. These programs replace the traditional punch card or swipe card with a smartphone app that allows enterprises to become more familiar with their frequent guests and guests to collect their rewards on their phones. The advantages are plentiful for both.

Enterprise Benefits

1) Social media marketing
Full integration with social media. When guests share, post, and tweet, they help create online content and spread the word about your enterprise. The ease and fun of the app makes them even more likely to do so, according to Forbes.com expert Kelly Clay.

2) Enhanced guest analytics
Most programs use an online or mobile dashboard that instantly creates graphs, charts, and other analytics about the guests, the reward redemption, and guest feedback. This allows you to spend more time using data, rather than formatting it.

3) Integrated guest outreach
Through the dashboard, enterprises can create email marketing campaigns, post to Facebook and Twitter, and in some cases even send offers directly to guests’ mobile phones, eliminating the need for separate email marketing and contact programs.

The Guest Advantage

1) Convenient redemption of rewards
By replacing a handful of loyalty cards with one app on their smartphone, mobile loyalty programs make it easy for guests to earn and redeem rewards.

2) Fun
Mobile apps also make the loyalty program more game-like by using custom reward levels, graphics, and pop-up alerts.

3) Socially interactive
Guests can even see new offers on their Facebook and Twitter feeds right away and share their visits with friends.

Connect Your Enterprise Now

1) Know the requirements
Most programs require only a computer with Internet access to view the analytics dashboard and a POS system.

2) Pick a program that works with your operations
– Integrate with mobile payment systems, so guests can pay and earn rewards at the same time. Examples include Square and LevelUp.

– Scan guests’ phones using an in-store iPad or scanner provided by the program. Examples include Belly and Passbook.

– Print receipts with QR codes or other information that guests scan themselves. Examples include FrontFlip and Punchcard.

– Have staff push a button on guests’ phones to stamp a virtual representation of the traditional loyalty card. Examples include Perka.

Happy Rewards…TaraPaige Group

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Great Tech Trends: Guest Feedback at Ed’s Chowder House

March 12, 2013 by Leave a Comment

Incorporating new technology into your enterprise can seem exhausting, but there are many easy ways to make technology work for you, your guests, your employees, and your enterprise. In the next few Enterprise Insights, we will profile a few of them.

We recently found a great tech trend in play at Ed’s Chowder House that will help owners and managers get valuable feedback from guests and make sure they leave happy.

When guests sit down at Ed’s, they’ll find a business card with the name of the restaurant’s General Manager on the front, and a QR code and web address on the back, along with their table number.

The web address or QR code will take guests to a unique site for Ed’s Chowder House, run by a company called Yorn—short for Your Opinion Right Now. Once at the site, they can leave feedback that is relayed to management in real time.

While many guests are timid about making commentary face-to-face or to a server who they feel may not have power to correct a problem, they are often willing to leave comments online or in an indirect manner. Just think about the ever-increasing popularity of Yelp.

This type of technology, almost like a real-time Yelp, offers a unique opportunity to address guests’ questions, comments, or concerns promptly—before they even leave the enterprise.

Yorn offers customized feedback solutions depending on your specific enterprise, so it can provide valuable insight for a bakery-café, fast casual enterprise, or quick service restaurant, as well.

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