Now that's a lot of sauce!

Several masked people this week entered a Taco Bell restaurant and left six 40-gallon trash bags filled with apparently stolen sauce packets, Marion police said.

The bags, which contained 25,000 sauce packets, were accompanied with an apologetic note that said the packets were stolen over a three-year period.

The note's author wrote that the group felt guilty and decided to return the packets, police said.

Fast Casual Dining Segment Shows Explosive Growth

With a projected outlook of over $11 billion in sales from leading chains for the year, fast casual dining is serving up strong growth within the restaurant industry. A recent Mintel report estimates that total U.S. system wide sales of leading fast casual chains doubled in the last five years, and the future continues to look bright for the category. The category has been able to successfully blend the quality of family casual with the convenience of fast food, appealing primarily to adults.

Read Article Here!

Special Analysis: What is the Average Unit Volume (AUV) of tomorrow’s leading companies?

Special Anaylsis from Restaurant Chains.net

We queried the www.restaurantchains.net database to see how many companies in our database universe have between 10 and 30 stores. We wanted to see what average unit volumes were the most popular amongst tomorrow’s winners. We discovered a total of 680 restaurant chain companies* that fell within the range.

Check out the following chart and accompanying graph displaying the popularity of AUV's of tomorrow’s leaders:

AUV (in $millions)	Total # of units	%
1-.5	74	10.8
.6-1	245	36
1.1-1.5	88	12.9
1.51-2	81	11.9
2.1-2.5	57	8.4
2.51-3	69	10.2
3.1-3.5	31	4.5
3.51-4	15	2.2
4.1-4.5	7	1
4.51-5	11	1.6
5.1-5.5	2	0.3

The largest group with nearly 50% of locations have less than $1 million AUV per year. 23% of companies have between $2-3 million AUV. Less than 10% have an AUV of more than $3 million.

Conclusion: Large restaurants with big check averages have faded in popularity. Today’s latest breed of operators are choosing to open restaurants that offer fast service, smaller locations and with a lower per person check average.

* For purposes of the study we divided the companies by $.5 million AUV ranges.

Krystal Co. seeks buyers for restaurant chain

The Krystal Co., the oldest fast-food chain in the South and the second oldest in the U.S., is trying to find a buyer for the restaurant company.

Read Article

Tips caught up in minimum wage debate!

Tip money earned by waitresses in Las Vegas, manicurists in Hollywood and bartenders in Seattle is on the table in the nation's capital, as lawmakers scrap over an election-year minimum wage bill.

Read Article

Still think you don't need to utilize a blog to talk to your guests?

The ever-expanding blogosphere still qualifies as the Wild West of the Internet. But at least one weblog-savvy operator has used the online medium to get his new restaurant off to a flying start, attracting everything from a crowd of paying customers on day one to extensive coverage by mainstream media outlets soon thereafter. The total dollar outlay for the publicity blitz that made a hit of blogger Jim Reams' new Mothership BBQ in Nashville? Zero.

Read More

Blame it on Chipotle!

Remember when rapid growth in the fast casual segment was thought to come primarily at the expense of quick-service restaurants? No more. In the current economic environment, a value proposition that combines casual-restaurant-quality food with near-QSR pricing points seems to be convincing many patrons to forego the full-blown casual dining experience and opt for a fast-casual meal instead. Need evidence? Check out the numbers the leading casual dining chains have put up so far this year.

Read More

Speak of the devil!

Not sure if you receive the IRS E-newsletter “Newswire” or not (you should and it's free!) but this is what was announced Friday.

IRS Announces New Tip Reporting Program

IR-2006-118, July 28, 2006

WASHINGTON — The Internal Revenue Service today released formal guidance on its new tip reporting procedure, the Attributed Tip Income Program (ATIP) ATIP expands the existing IRS tip reporting and education program by offering employers in the food and beverage industry an additional tip reporting program. ATIP reduces industry recordkeeping burdens, has simple enrollment requirements and promotes reporting tips on Federal income tax returns.

ATIP provides benefits to employers and employees similar to those offered under previous tip reporting agreements. However, ATIP does not require employers to meet with the IRS to determine tip rates or eligibility. Employers are not required to sign an agreement with the IRS to participate. Like other tip reporting programs, participation by employers and their employees is voluntary.

Employers who participate in ATIP report the tip income of employees based on a formula that uses a percentage of gross receipts, which are generally attributed among employees based on the practices of the restaurant.
Employers receive significant benefits by participating in ATIP:
•The IRS will not initiate an “employer-only” 3121(q) examination during the period the employer participates in ATIP.
•Tip reporting is simplified and in many cases employers will not have to receive and process tip records from participating employees.
•Enrollment is simple. There are no one-on-one meetings with the IRS and no agreements to sign. Employers elect participation in ATIP by checking the designated box on Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips.
Employees also benefit from ATIP:

Participating employees do not have to keep a daily tip log or other tip records.
•The IRS will not initiate a tip examination during the period the employer and employee participate in ATIP.
•The improved income reporting procedures could help employees qualify for loans or other financing.
•Employees who work for a participating employer can easily elect to participate in ATIP by signing an agreement with their employer to have their tip income computed under the program and reported as wages.

Some general requirements for participating restaurants:
•The employer annually elects to participate in ATIP and uses the prescribed methodology for reporting tips by filing Form 8027 and checks the ATIP participation box. Simplified filing is provided for small establishments not required to file Form 8027.
•Employer's establishment must have at least 20% of gross receipts as charged receipts that reflect a charged tip.
•At least 75% of tipped employees must agree to participate in the program.
•Employer reports attributed tips on Employees' Forms W-2 and pays taxes using the formula tip rate
•The formula tip rate is the charged tip rate minus two percent – the two percent takes into account a lower cash tip rate.
•The charged tip rate is based on information from the establishment's Form 8027.

ATIP is a three-year pilot program for food and beverage employers. Employers will participate on an annual basis. The first annual basis begins January 1, 2007.

Details and requirements for participation for employers and employees are available here at
http://www.irs.gov/pub/irs-drop/rp-06-30.pdf

You can subscribe to Newswire by going here
http://www.irs.gov/newsroom/content/0,,id=105771,00.html

Have Fun Today!
Jeffrey Summers
Jeffrey@GetGame.Biz

Steak house may be liable for $2.5m - Waitresses win suit after losing their tip money and jobs

By Diane E. Lewis, Globe Staff | July 27, 2006

Hilltop Steak House in Saugus could be required to pay more than $2.5 million in damages to wait staff after an Essex County jury found that the restaurant's function department illegally steered tip money to managers.

The Essex Superior Court jury that returned the verdict late Tuesday also found that the restaurant wrongfully fired four waitresses because they complained about losing a percentage of their tips.

The case, the first of 19 so-called ``tip cases" to go to trial in the state, was filed after the Legislature amended Massachusetts law four years ago to say that waitresses, waiters, and bartenders are not legally required to share tips with managers or kitchen staff.

The Massachusetts tip law requires that all proceeds from tips, gratuities, and service charges that are added to bills after customers are served must be distributed to wait staff. The law bars restaurant owners from distributing the money to other employees, including managers, even if they also serve food and beverages.

``These waitresses made $3.60 per hour plus a gratuity," said Boston lawyer Shannon Liss-Riordan, who represented the Hilltop wait staff. ``But the managers who were getting their money were making several hundred dollars per week." She said that, in some cases, the waitresses received 14 percent of the 18 percent gratuity, with the remainder going to managers.

Boston lawyer John Coyne , who represented the restaurant, declined to comment.

The jury awarded $125,000 to each of three plaintiffs, and $75,000 to a fourth. The jury also found that harm suffered by the waitresses as a result of the restaurant's violation of the tip law and its decision to fire them merited tripling of $610,000 in damages. Of that, $160,000 will be shared by 42 members of a class certified by the court. With the addition of attorneys' fees and interest, the final judgment is expected to increase beyond $2.5 million, said Liss-Riordan.

Janet Calcagno , 45, of Saugus said yesterday that she worked at the restaurant for five years and did not know that she was earning tips because the company did not allow wait staff to see the final bill.

``Normally, management would present the bills to the customers and wait staff was not allowed to see a bill," she said. ``Then, one day one of us saw the bill and noticed that they were charging 18 percent to the customers, but we were not getting all of the gratuity."

In January 2003, a month after four waitresses complained, they were fired . They are identified in court papers as Calcagno ; Joan Rossi , 51, of Saugus; Sunok Gatchell of Revere; and Chong O'Connell, 45, of Everett.

During the trial, Hilltop Restaurant said its managers were entitled to tips because they regularly served food and beverages.

A dozen lawsuits over tips are still pending in the state, including cases that were filed against the Four Seasons, Gillette Stadium, the Weston Golf Club, Top of the Hub, Grill 23 & Bar, The Federalist, and Northeastern University. Seven other cases, including one involving room service at the Four Seasons and eating establishments at the Ritz-Carlton and Boston Harbor Hotel, have been settled.

Restaurants across the country are facing similar lawsuits. In June, a lawsuit filed in California on behalf of some 100,000 Starbucks counter staff was granted class-action status by a superior court judge. The suit alleges that the workers were forced to share their tips with supervisors in violation of wage laws. In New York, meanwhile, the state attorney general three years ago began cracking down on attempts to compensate wait staff only with tips. New York labor laws mandate a minimum wage of $3.30 per hour for all wait staff regardless of the amount of tips earned.

Have Fun Today!
Jeffrey Summers
Jeffrey@GetGame.Biz

Strategic Management - Promises, Lies and Apologies: Is It Possible to Restore Trust?

In the workplace, trust is essential to day-to-day business, whether it's one colleague trusting that another will do her share of a project, an employee trusting that his boss will reward him for working long hours to meet a deadline, or a customer trusting that a company will fill an order correctly and deliver it on time. The intertwining issues of trust, deception, apologies and promises are explored in a new research paper titled, "Promises and Lies: Restoring Violated Trust," by three Wharton professors who came up with a unique laboratory experiment to see what happens when trust breaks down. "While deception may be tempting because it can be used to increase short-term profits for the deceiver," the researchers note, "we find that the long-term costs of deception are very high."

Read article here! http://knowledge.wharton.upenn.edu/article/1532.cfm

Ordering restaurant loans doesn't come over-easy

By RANDY CRAIG

When Tom Casaburo searched for financing for his first restaurant, he talked to practically every bank in town. Even having one of the bank presidents as a neighbor didn't help.

“He later said it was the best loan he never got to make,” said Casaburo, owner of the five Casa Restaurants in Fort Wayne

Finally, Casaburo and his partner, neither of whom had restaurant experience, found a sympathetic ear at the now-defunct Indiana Bank. They convinced the loan officer of the need for an Italian restaurant in town and displayed the success of their past business endeavors and determination to succeed.

“(It was) a real good sales job, I guess,” Casaburo said.

Not much has changed since Casaburo's struggle to finance his restaurant decades ago. Banks still shy away from lending money for restaurant ventures. Their high failure rate coupled with intense competition makes some banks skittish.

That's why perseverance like Casaburo's pays off. The bank submitted an application for a Small Business Administration loan, with Casaburo putting up equity in his home and car and his partner's life-insurance policy as collateral.

Linda Smith, vice president of National City Bank in Fort Wayne, said entrepreneurs looking to start a restaurant will be more attractive to banks if they already have experience running a restaurant. They should also have collateral in the form of CDs, stocks or bonds in addition to any restaurant assets they might already have. A strong, detailed business plan helps, too, she said.

Read More Here! http://www.fwdailynews.com/articles/2006/07/25/greater_fort_wayne/news/business12.txt

Debunking the Top 10 Myths About Debt!

Borrowing money can be good for your business—really

1. Debt is dangerous. When used smartly, debt is a vital building block for a fast-growing business. Before taking on debt, be sure you can predict the future cash flow available to pay it off. Further protect yourself by balancing debt with equity. And finally, manage your personal and business risk by looking at the big picture—what would happen if the business could not provide enough cash to pay the loan back?

2. All loans have to be paid back in cash. “Convertible” loans actually allow a successful business to convert the borrowed amount to an equal value of stock in the company.

3. Banks are my only option. Wealthy individuals, called angel investors, are probably the most prolific lenders for small businesses. Corporate finance companies, private investment funds, even credit card processing companies are also making the kinds of loans that banks can’t or won’t. But make sure the terms are at least as good as the best traditional loan.

4. I can’t afford the payments. Loans that require interest-only payments and “negative amortization loans” are two examples of low-payment loans. They will be more expensive in the long run, but the smaller payments may be a good fit for a rapidly growing business. Traditional loans can be made more affordable by negotiating a longer payback period or an adjustable rate that starts low and then “floats” as rates change.

5. As long as I make my payments, I’m ok. Larger loans from institutional lenders (like banks or corporate finance companies) will include specific loan terms, like keeping a certain amount of cash on hand or meeting strict profitability targets. Breaking just one “covenant” can force immediate repayment of the entire loan amount.

6. Debt is expensive. Actually, interest rates are low, and when the tax deduction for interest expense is factored in, debt is pretty cheap. Borrow only when the rate of interest is lower than the rate of return.

7. One size fits all. Just as a house is best financed with a 30-year mortgage, most business purchases should be matched with a loan of a size and term that roughly matches the size and term of what is being purchased.

8. All loans require collateral. Credit cards are the obvious exception, but there are others. Often called “cash flow loans,” these rely simply on a business’s ability to make payments. Lenders want to see a solid business plan. These loans carry higher interest rates.

9. I don’t have any collateral. Many lenders are able to use certificates of deposit, stock accounts, cars, boats and other personal assets (including your home, of course). And don’t forget that the business assets you most need to purchase often make their own collateral. Most equipment vendors, for example, will be able to recommend leasing companies for their products.

10. Banks only make loans when I don’t really need the money. Getting a loan is only difficult for the unprepared. So do your homework before talking to a banker. A great business plan, clean financial statements and detailed financial forecasts will carry a lot of weight.

New Update from USDA Economic Research Service (ERS)

U.S. consumers spent, on average, 9.9 percent of their disposable income on food in 2005, according to recently released statistics from the USDA Economic Research Service (ERS). That is up slightly from 9.7 percent in 2004. The percentage dropped to single digits for the first time in recorded U.S. history in 2000.

Economists have mixed reactions to rise in wholesale prices

Wholesale prices jumped in June as food costs rose at the fastest pace in 20 months and gasoline prices also gained, the government said Tuesday in a report that reassured some economists but heightened inflation concerns for others.

Source: http://www.restaurantnewsresource.com/article23233.html

Sector Preview: Fast-food restaurants

The restaurant sector as a whole is facing a slowdown in traffic and same-store sales as consumers, feeling the pinch in their wallets from record-level gas prices and interest rates, are eating out less.


Read Article

The Equipment Breakdown Cycle

With the summer heat hovering around triple digits, or just below in every state across the country, this will be the week your coolers, your ice machines, and your prepared food cases take their last breath and fade out into the sunset. Oh, and let's not forget about the air conditioning. Remember when that was supposed to be serviced but you had to pay the rent instead? Well, you never did call the service company back, did you? It was bound to happen. We usually wait until the last moment to service the work horses that get us through the

Source: http://feeds.allbusiness.com/~r/blog/11534/~3/http%3A%2F%2Fwww.allbusiness.com%2Fblog%2FRestaurantBlog%2F11534%2F006410.html

It's never the economy...it's the operator!

Got a hankering for an Outback steak but the budget for a Big Mac? Apparently, many folks feel that way, as the slowing economy dulls the nation's appetite for casual dining. For the first time in years, the $70 billion casual dining industry — sit-down eateries that generally serve alcohol and sell entrees from $10 to $20 — is taking a hit.

Read Article

Indies fight back!

For some, the face of Gwinnett is suburban sprawl, crawling traffic jams and mile upon mile of fast-food and chain restaurants. But throughout the county, city leaders are determined to change that perception.

Read Article

Want Mo'Money? Better Get Mo'Creative.

From Dan Pink's Whole New Mind to CNNMoney.com's The Imagination Economy to MarketingProfs.com's left brain/right brain business model -- the consensus is that if you wish to expand your wallet, you need to start by expanding your mind.

The only thing that can't be outsourced is an individual's outrageous imagination.

Source: http://innovation.ducttapemarketing.com/2006/07/want_momoney_be.html

Take a tax break today

Corporations are afforded a series of tax benefits and advantages by the IRS, such as:

Income Shifting: The ability to divide income between the corporation and its shareholders in a manner that lowers overall taxes is referred to as Income Shifting. This practice is by far one of the greatest benefits of incorporating a business.

Fringe Benefits: While startup businesses in this unpredictable economy may be less eager to offer fringe benefits to employees, corporations are afforded favorable treatment over non-corporate entities in the area of fringe deductions.

Business Losses: In a corporation, there are no limits or restrictions on the amount of capital or operating losses that a corporation may carry back or forward to subsequent tax years. Unincorporated entities, however, are subject to more stringent rules regarding corporate losses. For example, an individual owning a sole proprietorship cannot claim a capital loss greater than $3,000 unless he or she has offsetting capital gains.

Dividends From Other Corporations: Where a corporation is cash-heavy and shareholders do not desire to withdraw the cash assets, the dividends received exclusion will serve as a great benefit of incorporating. In a nutshell, a corporation can receive dividends from stock it owns in another unrelated corporation 70% tax free. In other words, where an individual may be required to pay taxes on ALL of a $10,000 corporate stock dividend, a corporation that falls within the dividends received exclusion is taxed on only $3000. This gets tricky.so please consult your tax professional before implementing this strategy.

Leasing Assets to your corporation: Leasing your personally owned property (real estate, automobile, or even a domain name) to a corporation may provide tax savings to many individuals. Please note, however, that the IRS will often scrutinize this type of leasing arrangement. Therefore, the lease terms must be fair to both parties in the transaction (to you and to your corporation). This benefit of incorporating is rather similar to the Income Shifting discussed above.

Self-Employment Tax Savings: In an S-Corporation, however, only earnings actually paid out to an owner as compensation for services are subject to payroll taxes. Any money left in the business for reinvestment or distributed to the shareholder as a dividend is not subject to payroll taxes...and not subject to self-employment tax.

OK. Ready for a tax break? If so, go to mycorporation.com or find an accountant near you

Source: http://finance.ducttapemarketing.com/2006/07/tax_a_tax_break.html

Arbitrations Fall From Grace

Usually, I like to write my own headlines, but this one from the original story is too perfect to touch — that or I’m too tired. . . .

A good detailed article from In-House Counsel on why the arbitration fad’s been a disappointment to companies that had hoped it would be a magic bullet for [...]

Read more here!

Shameless commercial!

If you have operational issues you need resolved, call me at 1-877-GameOn1 to talk about how we can help you build a better restaurant!

The first one who does this in your market is going to win big. It might as well be you!

Also, check out my online store and see what products and services you can use to help you coach yourself to greater success!

Dietary fats: the good, bad and worst

What works great in the kitchen doesn't always work so well in your body. In the culinary arts, fats make food taste good. In the medical arts, it isn’t so simple. Some fats, namely mono- and polyunsaturated fats, are good for long-term health. Other fats, namely saturated and trans fats, aren’t so good and, in fact, can be downright unhealthy. The collision between what’s good in the kitchen and what’s good in the body poses problems for restaurants across the country.

Read more here!

On Eliminating Trans Fats

With a scarcity of adequate substitutes, it's easier said than done. Trans fats contribute 4 percent to 7 percent of calories from fat. Yet for many years they were largely invisible, detected only by people who knew that the terms “partially hydrogenated vegetable oil” or “vegetable shortening” in a list of ingredients indicated their presence.After a lengthy review, the Food and Drug Administration mandated that starting Jan. 1, 2006, food labels must list trans fats along with total and saturated fats. A number of U.S. companies, including Kraft, Cargill and Frito-Lay, have responded to this rule by working to remove trans fats from their products. On the restaurant front, upscale restaurants as well as some quick service restaurants have switched to trans-free oils for deep frying.

Read more here!

Dining Out is a Quintessential American Pastime, According to Report

Ninety-six percent of U.S. adults dine out at a restaurant at least once per month. Two-fifths(40 percent) of the population visited a Quick Service Restaurant, such as McDonald's, Wendy's or Subway, six or more times during the past month, according to a new report on the restaurant industry from Scarborough Research. About one-fifth (19 percent) of U.S. consumers visited a sit-down restaurant (such as TGI Friday's or Chili's) six or more times during the past month. These are just three of the findings in "The Restaurant Report," an analysis released by leading market research firm Scarborough Research.

Read Article

Lowering standards!

Nice riff from Andy: You ain't gonna learn what you don't want to know.

Catering boosts profits

Restaurants like Au Bon Pain, Firehouse Subs, Mr. Goodcents and Mama Fu’s Asian Grill say catering accounts for roughly 5 percent to 15 percent of net sales.

Read on...

Defining fast casual

By Fred Minnick

What is fast casual?

As editor of Fast Casual magazine and (its) Web site, I am frequently asked this question. Sometimes I have to correct people who claim their restaurant is fast casual when it’s really a QSR or casual-dining restaurant. I can’t blame them for miss-categorizing their outfits; fast casual is a hybrid and, well, it’s the hip thing to be called.

With that said, it’s important we are very selective in who we call fast casual.

Here’s the formula I use:

Restaurant service model (food is brought to the table or food is picked up) + food is made to order + price points + nice décor = fast-casual restaurant.

Three out of four are required for me to call a restaurant “fast-casual.”

Is this an exact science?

No.

And now fast casual is more than just a segment; in a sense, it’s a culture-wide trend. Many top retailers are testing financial cafés and retail cafés.
For the expressed intent of providing fast-casual operators a quality resource, we have to set parameters for what we dub fast casual. You would be amazed at how many QSRs call themselves fast casual. And when you acknowledge that it sounds better than fast food, I guess I can see why. But if 80 percent of the menu items are born in the fryer or on the grill, and there is a 99-cent “value menu,” the restaurant is not fast casual.

Restaurant consultant Arlene Spiegel said it best: “You can’t just put in a sofa or an upscale design and call fast food a fast casual.” In other words just because McDonald’s now has upholstered seats does not mean it has evolved from quick service to fast casual.

That’s not to say, this Web site will not cover QSRs, coffeehouses or casual-dining chains that influence the fast-casual segment. Starbucks is a perfect example. One could peruse through FastCasual.com and find numerous Starbucks-related stories because Starbucks follows a fast-casual model and fast-casual operators can learn from Starbucks’ efficiency. And let’s face it: Starbucks is exceptionally well run and most people in this industry want to know what it’s doing.

Another example of a non- fast-casual segment we cover is ice cream stores. Cold Stone has a fast-casual model; the ice cream is freshly made, the décor is upscale and customers customize their selections. We write about Cold Stone when learning about its practices would benefit fast-casual operators. Interestingly, last week’s news story “Cold Stone hires former VP as president” was FastCasual.com’s most widely read piece.

However, we won’t typically run a news item that details Cold Stone’s latest limited-time offer because an LTO shake at Cold Stone has less impact on a fast-casual operator than if Panera Bread Co. tested shakes. We view operators like Starbucks and Cold Stone as peripheral rather than direct competitors while acknowledging their important impact on fast-casual dining

Hybrids of the hybrid

There are a few chains that are hybrids within the hybrid. We call these restaurants the 10 percent.

Because Culver’s units have drive-thrus, many industry analysts classify them as a QSR even though the chain’s food is made to order. We, however, acknowledge that the food is brought to the table and the average ticket is in the $9 range. Sure, they have a QSR component, but they are fast casual.

Back Yard Burgers’ average check is $6.50, which is low for a fast casual, but by our equation it meets three out of our four requirements. The food is made to order, brought to the customer and the store interior design and décor is quite comfy.

Many people think Subway is fast casual because the food is prepared before the customer. However, its low price points (in the $4 to $5 range), and informal décor place it firmly in the QSR category.

Like Subway, Quiznos has a couple of fast-casual components, but we consider both chains QSR. However, Fast Casual magazine and this Web site have covered sub restaurants because of their efforts to produce more premium sandwiches. Plus, we believe fast-casual sub chains, like Penn Station Subs, consider Quiznos and Subway competition. Again, QSR sub chains are peripheral competitors whose practices justify occasional attention.

With all that said, this site and the Fast Casual magazine exist to help operators attract more customers and get a chunk of the $511-billion restaurant industry.

We may debate what fast casual is within the industry, but at the end of the day, consumers don’t care what we call it. They just want to eat.

The history and the future

Where did fast casual come from? We believe as the Baby Boomer generation grew older they desired better food quickly. And now fast casual is more than just a segment; in a sense, it’s a culture-wide trend.

Many top retailers are testing financial cafés and retail cafés. These express concepts are certainly unconventional for these industries, but so were Panera Bread and Starbucks at first.

Fast Casual magazine publisher Paul Barron believes fast casual is a business component similar to drive-thru when it originated. After drive-thru was invented, it proved effective in variety of disparate businesses like banks, drug stores and dry cleaners. Today, it’s hard to imagine life without drive-thru.

I’d be willing to bet that in 10 years consumers won’t be able to live without the convenience and quality of fast casual, especially the restaurants. There are already scores of fan Web sites dedicated to favorite fast casuals like Chipotle and Atlanta Bread. Simply put, consumers love these restaurants, and they love this service model.

Give 'em an inch, and they take a mile!

AMA's proposal to regulate salt in restaurant foods sparks debate
The Baltimore Sun

Americans who push their salt shakers away at home, only to be swamped by salt in take-out and restaurant fare, may get some help cutting back on the condiment. That's important, because we need salt to live - but in high doses, salt can worsen high blood pressure and increase the risk of heart disease and stroke.

Read Article

Top 10 reasons I won't do hourly fees - and why you should never pay them!

One of the top two questions I am constantly asked is, "why don't you charge an hourly rate?" Well after fielding it so many times, I knew I had to blog the reasons. I don't like talking about my job in these pages too much, which is why you don't see a lot about the fact that I'm booked almost every week from now till doomsday! But there are occasions when it is important to address crucial ideas that I am at the center of. So here are my top 10 resons for not charging an hourly rate. If you have comments or question, feel free to email them to me.

1. There is a cap on your investment. You know exactly what is to be spent and there are no surprises.
2. There is never a "meter running." You do not have to worry each time my help is requested that I might be here for an hour, a day, or a week.
3. It is unfair to you to place you in the position of making an investment decision every time you may need my help. Otherwise, you're trying to determine the impossible: Is this an issue that justifies a $2,000 visit or a $500 phone call. No client should ever be in that position.
4. Your people should feel free to use my assistance and to ask for my help without feeling they have to go to someone for budgetary approval. This only makes them more resistant to sharing their views, and at best delays the flow of important information.
5. If I find additional work that was unanticipated but must be performed, I can do it without having to come to you for additional funds. In those instances, legitimate, additional work would otherwise be viewed as self-aggrandizing and an attempt to generate addition hours or days.
6. If you find additional, related work that must be done, you can freely request it without worry about increased costs.
7. The overall, set fee, in relation to the project outcomes to be delivered, is inevitably less of a proportional investment than hourly billing.
8. If conditions change in your organization, you won't be in the difficult situation of having to request that the project be completed in less time. The quality approach is assured, since the fee is set and paid.
9. If I decide that additional resources are necessary, there is no cost to you and I can employ additional help as I see fit.
10. This is the most uncomplicated way to work together. There will never be a debate about what is billable time (e.g., travel, report writing) or what should be done on site or off site.
    

Happy 230th America!

My personal feelings aside, as well they should be on this day, I need to give a "Thank You" to the 2,535 soldiers who made the ultimate sacrifice and to the over 20,000 wounded, who make day's like July 4th more important than ever to remember how we are able to be free and enjoy the bounty of such a great nation.

My appreciation and thoughts also wind their way to the families of those who celebrate this day with a heavy heart but also a proud understanding of what duty, honor and country are all about as well.

Thank You!

Alderman Seeks To Ban Trans Fat From Restaurants

After targeting smoking and foie gras in area restaurants the City Council has now set its sights on another target. Gee ,what's next?


Source: http://us.rd.yahoo.com/dailynews/rss/search/restaurants/SIG=121ep1881/*http%3A//www.nbc5.com/news/9446752/detail.html?rss=chi&psp=news

Why Managing by Facts Works!

Jeffrey Pfeffer and Robert I. Sutton

Using hard facts, such as qualitative or quantitative data, to make strategic decisions is the clearest path to the best business choices. Yet many executives ignore the facts and make "gut" decisions based on fads or hunches. Although there's great value in keen intuition and fresh ideas, evidence-based management leads to competitive advantage.

Read full article here.

Raising Capital for Your Restaurant - How Long Does it Take?

Most owners vastly underestimate the time commitment necessary to successfully complete a financing. In actuality, an owner seeking financing needs to budget between 500 to 1000 work-hours to the capital-raising process, spread out over a 6-9 month time period.

The key processes in the capital-raising process include 1) perfecting the business plan, offering memorandum, and other company due diligence materials, 2) developing a comprehensive, targeted prospective investor list, 3) contacting this list and responding to investor due diligence requests, and 4) negotiating the transaction.

Completing the business plan typically requires at least 200 hours of work. This time is dedicated to conducting the market research to validate the opportunity, developing a comprehensive financial model, determining the most effective way to lay out the business strategy, and actually writing and proofing the business plan.

The next step, developing a comprehensive, targeted prospective investor list is also very time consuming. There are thousands of potential investors, each of which has very different tastes regarding the types of ventures that interest them. Some invest by market sector (e.g., healthcare vs. telecommunications), stage (seed stage vs. later stage), geography, or a combination of these. Many hours must be dedicated to determine which investors are the right fit for your restaurant. This process involves creating a master investor list, visiting each investor and reviewing their investment criteria and past investments, and determining who is the right contact to begin with.

To see how easily the time adds up, consider that only about 25% of prospective investors who show an initial interest in a transaction actually progress to detailed company due diligence. Only about 10% of this 25% actually progress to a bonafide offer of funds, of which only 25% of these actually result in an investment transaction. So completing a financing transaction requires, on average, contacting approximately 160 pre-qualified prospective investors.
The due diligence process, where investors scrutinize the investment, can also be very time consuming for the company. Investors often request many documents, some of which can be easily retrieved from files (e.g., prior tax returns), while others may take more time to prepare (e.g., additional market analysis, customer lists with past purchases, contact information, etc.).

Finally, negotiating a transaction can take a significant amount of time depending upon the complexity of the transaction and number of parties involved.

Too many companies fail to raise capital since they are unaware of the significant time requirements to do so. Those owners who understand these requirements and budget accordingly are the ones most likely to persevere and end up with the capital they need.

Effectively Completing the Operations Plan Section of Your Business Plan

The Operations Plan is a critical component of any business plan as it presents the Company's action plan for executing its vision. The Operations Plan must detail 1) the processes that are performed to serve customers every day (short-term processes) and 2) the overall business milestones that the company must attain to be successful (long-term processes).

Everyday Processes (Short-Term Processes)Every company has processes to provide its customers with products and services. For instance, Wal Mart has a unique distribution system to effectively move products from its warehouses to its stores, and finally to its customers' homes. Technology products manufacturers have processes to convert raw materials into finished products. And restaurants have processes to identify new areas of customer interest, to continually update service features, etc.

The processes that a company uses to serve its customers are what transform a business plan from concept to reality. Anyone can have a concept. And more importantly, investors do not invest in concepts -- they invest in reality. Reality is proving that the management team can execute the concept better than anyone else, and the Operations Plan is where the plan proves this by detailing key operational processes.

Business Milestones (Long-Term Processes) The second piece of the Operations Plan is proving that the team will execute the long-term company vision. This is best presented as a chart. On the left side, there should be a list of the key milestones that the Company must reach, and on the right, the target date for achieving them. Sample milestones include expected dates when:

• New products and services will be introduced to the marketplace
• Revenue milestones will be attained (e.g., date when sales will surpass million dollar mark)
• Key partnerships will be executed
• Key financial events will occur (future funding rounds, mortgage or loan payoffs, etc.)
• Key employees will be hired (executive managers)
• Additional text should be used, where necessary, to support the projections laid out in the chart.
  

The milestone projections presented in the Operations Plan must be consistent with the projections in the Financial Plan. In both areas, it is important to be aggressive but credible. Presenting a plan in which the company grows too quickly will show the naiveté of the management team, while presenting too conservative a growth plan will often fail to excite the potential investor who will require a high rate of return over a relatively short time period.

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).

An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.

In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.

Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.

Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.

In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.

The Case Against Illegal Hiring

QSR Online

Like most cases that make the Supreme Court’s docket, the question posed in Mohawk Industries v. Williams, et al is a smaller piece needed to complete the puzzle in a much larger legal battle. When the court hands down its decision, it will only be ruling whether Mohawk, the country’s second largest rug and carpet manufacturer, and temporary employment agencies with which the company worked constitute an enterprise under the Racketeer Influenced and Corrupt Organizations (rico) Act.By itself that doesn’t seem like much. But that decision, in turn, will determine if former Mohawk employees were right to sue the company for back wages and damages under RICO, a suit that could cost the company millions and open the door to any number of similar actions taken against other employers, including quick-service restaurants.

Read Article

"Somebody sue me! Please!"

KFC Gets Fried. Is Starbucks Next?
Forbes.com

When KFC was hit with a lawsuit last week over its use of partially hydrogenated oil, the question on many lips was "Who's next?" But despite a flurry of reports pointing at Starbucks, the Center for Science in the Public Interest says it has no immediate plan to sue the ubiquitous coffeehouse.

Read Article

"Please sir can I have another?"

More nutrition info for restaurant diners?
UPI

The Food and Drug Administration is urging the food service industry to promote low-calorie eating. In a recent study, the FDA and the Keystone Center, a non-profit organization, targeted the issue of rising obesity rates in the United States and how the food service industry could help curb that trend.

Read Article

"I musta done something to deserve this!"

One of the thoughts that consistently come to my mind as I see more and more intrusion into our businesses by governments anxious to appease their need to posture themselves as doing what's in the "public interest", is an old Meg Greenfield quote, "stupidty has begun to think!"

Here is just the latest move by a locality to help protect us from the evil we do to ourselves! Shame on us and thank God that we have the Oakland City Council and the Chicago City Council and the ____________ (insert your town here!) City Council.

Oakland bans foam containers from restaurants
East Bay Business Times

The Oakland City Council banned polystyrene food packages in a late-night session Tuesday. The city's move requires restaurants to start using biodegradable food containers starting in January. It calls for fines of $100 to $500 for businesses that fail to comply.

Read Article

Here We Go Again!

Trans fat ban sought for Chicago restaurants

The Chicago Tribune

One of Chicago's most powerful aldermen is proposing the city become the first in the nation to ban restaurants from using artery-clogging trans fat oils.Ald. Edward Burke, chairman of the City Council's Finance Committee, introduced the proposal Wednesday. It was criticized by Mayor Richard Daley, who said a ban was unnecessary.

Read Article

AAA Says Busiest Fourth of July Travel Weekend Ever

This year, the 50th Anniversary of the Interstate Highway System will kick off a record Fourth of July holiday weekend. AAA estimates that 40.7 million Americans will travel 50 miles or more from home this holiday, a 1.2 percent increase from the 40.2 million who traveled last year.



Source: http://www.restaurantnewsresource.com/article22909.html

Summer Employment Forecast Underscores Restaurant Industry's Importance to U.S. Economy

PR (Washington, DC)

The National Restaurant Association projects that the nation's 925,000 restaurant-and-foodservice outlets will add 409,500 jobs during the 2006 summer season, a 4.5 percent increase over their March 2006 employment level. The restaurant industry is the largest private-sector employer with its 12.5 million employees. "Restaurants are a vital part of the travel-and-tourism industry, and during the peak summer months, restaurants across the country ramp up their staffing levels to meet the increasing number of diners," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "The $511 billion restaurant industry is one of the leading job creators in the U.S., driving the nation's economy and providing rewarding career and employment opportunities to 12.5 million individuals."

Read Article

Top 10 Signs You're Made to be an Entrepreneur

Fred's Top 10 Signs You're Made to be an Entrepreneur

10. You are unemployable. You can’t hold a job. You don’t want to hold a job. And you react to getting a job the same way a cat reacts when you try to give it a bath.

9. You are anti-authoritarian. You can’t fathom the thought of being anything less than Boss, President, Chairman, Don, and/or Emperor.

8. You have the uncanny ability to get other people to do all the work.

7. You are always looking for and/or seeing economic opportunity everywhere and in everything. While at a concert, you occupy yourself by estimating the evening’s take and its gross margins instead of listening to the music.

6. You spend more time and energy looking for easier, faster, cheaper, more effective ways of accomplishing something than if you just did the task outright.

5. You would enthusiastically trade a life-time pass to Disneyland for one ride in the Vomit Comet. In other words, you would give up a secure, even-keeled, bland existence for a life that whipsaws uncontrollably between exhilaration and terror.

4. You don’t see lack of money, lack of knowledge, and lack of experience as barriers to entry. You are also not deterred by the existence of formidable competition.

3. You favor multiplication over addition and you lull yourself to sleep by calculating price-earnings ratios.

2. You would happily invest your home’s equity and your life savings (and your mother’s life savings) in your start-up.

And the Number One sign you are made to be an entrepreneur . . .

1. When you project future earnings, your spread sheet shows that by Year 5, you can buy Argentina and sell it to Brazil.

Source: http://lazyway.blogs.com/lazy_way/2006/06/top_10_signs_yo.html

Help!

Hey, I need some material to write about!

Do you have questions you need the answers to right now? Email them to me and I’ll answer them in the blog.

I am sure there are a lot of others who are going through the same situation and would appreciate the response also.

Naturally I will keep your name and information confidential.

Send them to Jeffrey@GetGame.Biz

Develop Your Restaurant's Concept First

Reprinted from an article in Food Industry News, November, 1995

It is important to have a dynamite concept if you are planning to open a new restaurant. Whether or not you are an old hand at the restaurant game or a neophyte you must start with a concept. Only if you plan to buy an existing restaurant to continue operating it as is, or if you are planning to operate a franchise can you ignore this most important task.

It is crucial that you have a suitable concept. By concept I mean the over all vision of the menu, what you will serve, your services, how and who will do it, the ambiance of how the facility will look, and what impression it will make on the customers the first time they come in and repeatedly thereafter. Finally, how will you treat your customers and what impression will they carry home of you and your staff? For the restaurant to work effectively its important that all of these elements work together. This vision of working together is what is called the Concept Unification Plan (CUP).

CUP should try to address these issues:
1. The concept be as unique as possible to separate you from the competition.
2. The dining concept is developed directly with the theme in mind and is incorporated into it immediately.
3. It must be easy to recognize and understand.
4. All elements of the system are aimed at customer service, satisfaction and perceived value.
5. The food should be designed to be prepared in a timely manner reflecting the type of service (fast food or leisurely).
6. The food should be presented to the customer promptly and in an appealing manner.
Unless you have made a comprehensive study of design, it is crucial that when this is ready to be presented to the public, the restaurant's appearance and how the food is prepared and delivered should fit together so as to reinforce one another.

It is advisable to have a professional, experienced in creating concepts that work, participate with you at this time in the development of your concept planning. With professional help, what you want and need, can be accomplished in a timely fashion at a minimum cost with little or no loss of momentum.

If you have questions regarding concept development (CUP), I'm only a phone call away.

9 Charged in Identity Theft of Restaurant Patrons

LA Times

Eight people have been arrested and another is being sought on suspicion of stealing more than $1 million by "skimming" account information from the debit cards of dozens of customers at three Southern California restaurants, federal authorities said Wednesday.

Read Article

2 days that could just change your life!

I always ask the question; "What are you willing to do today to become more successful tomorrow?"

So next month, on July 17th & 18th you and I will get the opportunity to work on your restaurant together and create a GamePlan for moving it to the next level! I will be conducting my first "whiteboard session"! A "no holds barred" chance for you to get together with a couple of whiteboards, 14 other owners and operators along with myself here in Dallas to create a GamePlan for moving your business forward.

There will be no agenda other than the one you create from the areas of your operation you want to discuss over the two days. Also, since small groups accomplish more in a shorter timeframe, I am limiting it to only the first 15 people who respond. It can be you and your GM, spouse, partner, whomever. But I will only accept 15 people.

The price for the two day sesion is $299 per person. If you're a coaching client your price is only $199 I have had so many requests for this that I seriously expect the slots to be filled by the end of today. Right now, I have no plans for another one any time soon. I am just way too busy traveling the country coaching clients.

Visit the link for the sessions here!

Technomic's Annual Survey Sheds New Light on Bar Sales at Chain Restaurants

CHICAGO----June 20, 2006--Alcoholic beverages play an important revenue-generating role at roughly half of the Top 500 chain restaurants in this country. In its most recent survey of the largest chains, food industry consultancy Technomic found that 236 of the Top 500 concepts, or 47 percent, sold wine, beer, and/or spirits.


Source: http://us.rd.yahoo.com/dailynews/rss/search/restaurants/SIG=11rodmj90/*http%3A//biz.yahoo.com/bw/060620/20060620005124.html?.v=1

OK, Laugh break!

This is for when you need an excuse - ninja style!

Restaurants are now to blame for dandruff too!

The FDA has released a 136 page report prepared by the Keystone Center that advises the food portions served in restaurants are contributing to the nation’s obesity. The FDA is said to be pressuring restaurant owners to reduce the size of the shares served to patrons

Consumer Reports' Top Chain Restaurants

The new issue of Consumer Reports lists the hottest chain restaurants for great dining experiences — as well as the ones you want to avoid. The rankings are based on information from 149,000 meals eaten by 66,000 readers at restaurants across the country, and you may not have heard of some of the restaurants at the top of the list.

Read Article

10 Tips For Picking Your Next Location

AllBusiness.com

Full service and multiunit restaurants can expect big growth this year, but finding prime restaurant sites will be harder then ever. Brian Stys, v.p. of the restaurant group at Shawmut Design and Construction, shares 10 tips for picking your next location.

Read Article

More insanity!

Doctor and Consumer Group Sue KFC Over Trans Fat in Cooking Oil

Source: http://www.restaurantnewsresource.com/article22705.html

Get a coach now or your competition just might beat you to it!

Executive coaching yields ROI nearly six times its cost, according to a new study from consultancy N2growth. Executives who received such guidance estimated its value at nearly six times the expense.

Most of the returns came in the form of productivity (cited by 53% of those surveyed); work quality (48%); organization strength (48%); customer service (39%); reduced customer complaints (34%); retention rates among those receive coaching (32%); cost reductions (23%); and bottom-line profitability (22%). The study was conducted among 100 executives, primarily from Fortune 1000 companies. Most held positions of vice president or higher.

So after a nearly 100% tax deductible expediture for coaching, users got back a 6 fold return on their money. This included productivity gains, work quality inprovements, a stronger business, better guest service, reduced guest complaints, better staff retention and let's not forget improved profitability!

Couple that along with a 100% guarantee and you wonder why everyone doesn't have a coach working with them? I wonder about it constantly because I just don't get it. This is the biggest single thing an owner could do to improve and yet they are always skeptical about the need for one!

Let's hope I don't start working for your competition!

Simply Amazing!

It never ceases to amaze me how WOM transcends all other forms of marketing.

We now have subscribers in all 50 states! Even bigger, is the fact that the GetGame.Biz website and blogs are now read in over 22 countries around the world! My Really Cool Restaurant Marketing Blog is now ranked in Technorati's top 100! And, we have over 14,000 visits to the sites each month with our coaching systems and programs helping owners and operators literally all over the world be more successful!

Thanks for your confidence! And don't forget to keep sending those emails and letting me know what you need to learn, see or understand better in order to have more fun, making more money!

Jeffrey

I'm Baaaaaaaaaaaaaaaack!

Hey Friends!

Just a note to let you know that we are back from our first vacation in 2 years and you will start to once again see my postings about every issue concerning our businesses on the website as well as each blog.

I have a ton of articles, information and downloads to share with you so check back daily – or better yet sign up to receive my posts via email!

I hope you are all enjoying increasing success!

Jeffrey

Culinary Institute of America celebrates 60

Poughkeepsie Journal

A sparkling cider toast Monday afternoon by 400 students and staff at the Culinary Institute of America kicked off the school's diamond anniversary celebration. Other festivities are planned this summer and fall to mark the journey the Hyde Park culinary college has made since it opened on May 22, 1946, in a storefront in New Haven, Conn.

Read Article

Questions to ask in evaluating restaurants

Reviewing a restaurant is much more than gathering a group of friends, ordering different items on the menu and then telling readers what you liked.

A committed critic has dozens of checkpoints. These help determine the star rating used by The Chronicle. And after the first visit, there are at least two more. Each has to be considered before the final stars are awarded.

Determining Professional Service:
- Does the waiter know the menu and wine list and explain them in an articulate way?
- Is he well groomed and at ease at the table?
- Does he answer questions completely or find out the answers promptly?
- Does he remove and replace plates and utensils between courses?
- Does he put the plates in front of the right person?
- Does he wait until everyone is finished before removing the plates?
- Does he check in periodically to see if you need anything?
- Does he perform his duties in an unobtrusive manner?
- If there is a delay in the kitchen, does he communicate what's going on?
- If you complain, does he listen and act accordingly?
- Is the waiter able to "read" your table and adapt his behavior? (Some people want lots of interaction, others don't. The best waiters are adept at determining that)."

Source: "Questions to ask in evaluating restaurants" by Michael Bauer (Between Meals Blog, May 8, 2006) [via Slashfood]

A Lesson - One Stroke At A Time

Leanne Hoagland-Smith talks about Tiger's approach to his game and life in general.

In a recent inter-view, Tiger Woods shared this simple formula for success. He further revealed that his habit of focusing on the task at hand and not the previous stroke nor the next stroke keeps him self-disciplined. Woods recent 4th win of the Masters before the age of 30 validates his philosophy.

The Tiger Woods One stroke at a time is a brilliant example of short-term goal setting and more importantly goal accomplishment. Each stroke is a short-term goal. The obstacles are viewed from hazards to weather conditions. Solutions appear to be instantaneously created with action steps quickly following. With the completion of each short-term goal, Tiger Woods is that much closer to completing the long-term goal of completing and hopefully winning the game. Each completed game then reverts to a short term goal allowing him to work towards his long term goal or dream of being the very best in the game of golf ~ past, present and future.
Goal setting is a behavior that when used consistently and correctly guarantees success 98% of the time. The problem is that many individuals look to long term goals and do not include supporting short-term goals. Short-terms goals, one stroke at a time, are the foundation for the successful completion of long-term goals.

Tiger Woods positive attitude about the past and the future also greatly contribute to his ability to achieve his goals. Attitudes are really habits of thought. Tiger s habit of thought by focusing on the present allows him to stay self-disciplined and self-directed thereby accomplishing both short and long-term goals.

With over 20 years of practice, Tiger has mastered the physical skill of golf and has developed extensive knowledge about this sport through years of application. His skill level supports his positive attitudes and goal setting behavior. Finally, Tiger Woods also revealed that even though becoming the best golfer the world has ever seen is his long-term goal, he realizes that his life must have balance. We can see and hear of this balance when Tiger talks about family and friends.

Everyone from business leaders to individuals can take a lesson from this young man on how to begin to accomplish your goals both personally and professionally;

• Develop and maintain positive attitudes
• Become an expert
• Stay balanced and remember

Source: http://scarpero.com/success/73/a-lesson-one-stroke-at-a-time-2/

11 ways we deny ourselves of success!

There are a multitude of reasons why people fail. Failure is almost always based on reasons that are in that person’s control. Think about these and what you can do to avoid getting derailed…

1. We lack concentration. We think we can wing our way through crucial moments in work and life. Rather than translate experience into expertise, we let it translate into bad habits.
2. We don’t seek to improve our technical skills, let alone our people skills and attitudes. We’re satisfied with where we’re at in life, especially if improvement won’t come easy.
3. We surround ourselves with the wrong influences. People with no ambition, no goals, no optimism, nothing positive to contribute.
4. We expect people to cater to us, or give us things. This is particularly sad when we expect it based on reasons that matter only to us, when we think because we were born, we “get” something.
5. We’re just too proud. We don’t seek advice, guidance, input, or even casual suggestions from others. We think we can go it alone forever.
6. We don’t put in enough time. We slip into a mediocre, half-hearted routine, and we lack the self-discipline and achievement drive to stick to successful, daily habits.
7. We have no inspiring, internalized reasons for wanting to be successful. We move as the carrot and stick dictate. Or, our stated reasons aren’t compelling enough to cause daily behaviors.
8. When we don’t hit our objectives, we too quickly point to external reasons or place blame on someone besides ourselves
9. We’ve got our ladder against the wrong wall. Either we’re in the wrong position, the wrong company, or the wrong industry. And we ignore all the signs that it’s a bad fit.
10. We’re not willing to “endure to the end.” We get fired up for a short period of time, but then flame out.
11. Most tragic of all: we don’t want to succeed. We’re willing to settle for mediocrity.
    
    Don’t settle.

Source: http://www.salesteamtools.com/2006/01/16/11-ways-we-deny-ourselves-of-success/

It's really NOT who you know!

It's who you are that counts!

We’ve all heard in business that it’s who you know. Insufficient advice.

But it’s really who you are that counts.

You can know everyone that matters in your town. Treat them poorly, see where that gets you. Run over people by being overly domineering, see how much business you do with them. Be a “yes” man, see what kind of reputation that earns you.

Character counts when you’re wanting to build a business. You’ve got to be someone that others like doing business with. Sales skills should always take a back seat to fundamental people skills. Here are a few areas that coaches need to improve in:

1. Not interrupting others.
2. Showing genuine interest.
3. Not assuming too much in a new relationship.
4. Asking thoughtful questions.
5. Having a friendly countenance (this is often overlooked).
6. Using the person’s name frequently.
7. Being authentic, not simply ABC Company’s owner/operator.
   

Fill your head with concepts that help you become a better person (visit the websites of Jim Rohn, Dale Carnegie, Earl Nightengale, Brian Tracy for resources that will help you here) and you will win people over.

Source: http://feeds.feedburner.com/salesteamtools?m=167

Trotter's does it again!

My favorite restaurant, Charlie Trotter's, has been named as the winner of RESTAURANT HOSPITALITY’S 17th annual Best Wine Lists in America Competition.

Read article here.

Why Oil Prices Are Up, and What We Can, and Can't, Do about It

Rising prices for crude oil and gasoline have alarmed many consumers and put President Bush and other U.S. politicians in a position where they feel they have to do something -- anything -- in response, especially in an election year. But members of Wharton's finance department and private-sector economists say it's a good time to shun hysteria, take a deep breath, and look rationally at the reasons for the price hikes and their likely effect on the economy and on energy policy.

Read article at http://getgame.biz/Articles/Oil_Prices_052006.doc

Why it’s crucial to have a crisis plan in place

When Disaster Strikes...

Source: http://www.Restaurant-Hospitality.com/article/10841/

Got the Catering Bug Yet?

Source: http://www.Restaurant-Hospitality.com/article/10840/

Put Your Money To Work - Cash flow management is an essential art.

By William J. Lynott

Cash Flow—How much money is flowing into and out of your cash registers—is an easy concept to understand. Still, not every restaurateur is fully aware of the impact that well-managed cash flow has on the bottom line. That's probably because the importance of cash flow is much easier to recognize in some types of businesses than it is in others.

Take home building, for example. When a builder takes on hundreds of thousands of dollars in short-term debt to build some new homes, it's obvious that he must generate substantial positive cash flow in a hurry if the business is to survive.

The situation in the typical restaurant is not that dramatic, of course, but generating and managing cash flow is critically important in even the smallest of food operations. Losing control of money has put more entrepreneurs out of business than temporary red figures on the bottom line. On the other hand, a sensible cash management system can provide a life-sustaining cushion during those inevitable slow times when the phone just isn't ringing as often as you'd like and the customers aren't streaming in.

Once you accept the importance of managing cash flow in your restaurant, you'll find it easier to stick to the rules of profitable cash management. Here are nine powerful techniques for improving cash flow and profits in your business right now:

1. Never allow any of your money to lie idle. If you don't already have one, open a money market account at your bank and have it linked to your business checking account to allow for telephone or online transfers. From that point on, deposit all of your daily receipts into the money market account where they will immediately start drawing interest. This step may not seem worth the effort at today's somewhat anemic interest rates, but this is a temporary situation. Rates have already begun inching upward toward a more normal level. Setting up a smooth money management system now will pay permanent dividends in your future business operations.

Never deposit receipts directly into your checking account. Keep a minimum balance in the checking account and transfer cash by phone or online only as needed to cover checks written. Modern technology has made telephone and online money transfers so quick and easy that you can't afford to pass up this profit-enhancing technique.

Worst money sin of all: leaving checks or cash lying around in a desk drawer until you can get to the bank. Using every cent of your money to make money is the mark of a professional money manager.

2. Don't be timid about using other people's money. We've all heard stories about entrepreneurs who have built large business empires without ever borrowing a cent, but they are the rare exceptions. At today's extraordinarily low interest rates, careful use of credit can be one of your most effective business-building tools.

I've never been comfortable with extensive use of credit for personal affairs. When it comes to business, though, it's a different matter. To begin with, the costs of borrowing are legitimate tax deductions for businesses. It makes more sense to spread out the cost of capital purchases than to put stress on your cash flow by laying out large amounts of cash that you could put to productive business use. Credit, when used in a sensible and controlled manner, can be a powerful profit enhancer.

3. Consider leasing. Leasing products like cars or vans for personal use is generally not economically advantageous. Most accountants agree that leasing is the most expensive way to maintain a car exclusively for personal use.
But the rules change for business.

"The nature of business accounting is such that leasing can be the most sensible approach to many types of capital investments, including vehicles," says CPA Thomas Normoyle, Huntingdon Valley, PA. "It usually makes sense to lease if you will be able to use the cash in your business or in your investments to earn a better return than the cost of leasing."
Talk to your tax advisor about this the next time you're considering any purchase of capital equipment that might be available on a lease basis.

4. Don't be in a big hurry to pay your bills. There's a good reason why checks are slow to come in from people who owe you money: Hanging on to your cash as long as possible keeps that money available to draw interest or to work in your business.

Take the time to set up a system that provides for paying bills only when they are due. It's easy to do and is another rung on the ladder of professional cash management.
Important: Don't go overboard and jeopardize your credit standing by paying bills late. Pay your bills when they are due—not before, not after.

And keep an eye on the state of postal deliveries during this uncertain time. If it appears that deliveries may be delayed, avoid those oppressive late-payment fees by allowing a little extra time.

5. Be aggressive about collecting accounts receivable. If you do any of your own billing, if you run any private tabs, even in relatively small amounts, it's important not to allow those receivables to go untended. You've earned that money; you have a right to it; you need it. If your customers learn that you are cavalier about money owed to you, you can be certain they will stretch your patience (and your cash flow) to the limit.

6. Maintain a cash cushion. Whenever possible, keep enough business cash in interest-bearing accounts to cover normal operating expenses for three to six months. There is nothing like the peace of mind and self-confidence that comes when you don't have to sweat out next week's payroll during a slow spell. Also, keep in mind that your cushion money is making money for you in those interest-bearing accounts.

7. Develop a personal relationship with your banker. Handling money is a banker's job, and most are very good at it. Even if your restaurant is a tiny operation, it's a good idea to have a personal relationship at the bank where you do business. Discuss your financial picture honestly with the manager of your local-branch. You'll get some good ideas and a favorable ear should you ever need a little financial help.

8. Harness the Magic of Impulse Sales Ever notice those inexpensive items on display at the cash registers of your local supermarket or drugstore? They're known as impulse items - products that are inexpensive enough to be bought on impulse.

Don't be misled by the low selling price of these items (almost always in the $2-$5 range). An impulse sale will produce a higher percentage of net profit than your normal transactions. That's because almost all of the gross profit on impulse sales moves directly to your bottom line. The meal you served has paid for your operating and labor costs, so any additional sale increases your costs only by the cost of the product.

If you have a cashier's station at your entrance, you have a natural opportunity for a profitable impulse display. It's here, where the customer stops to pay his or her check, that many impulse items will sell themselves. Whether you feature take-home bakery goods, candy, inexpensive gadgets totally unrelated to the restaurant business or anything else that strikes your fancy, every impulse sale will boost your bottom line.

The more cash you generate every day, the more you will benefit from good cash management, and the more impulse sales you generate, the more cash you will have to manage.

9. Let your computer help you manage your cash flow. Whether your restaurant is large enough to make use of one of those heavyweight commercial software packages designed exclusively for foodservice, or whether you use Quicken or Money on a desktop PC, trust every financial aspect of your restaurant, as well as personal investments, to your computer. The financial reports and analyses that modern software can produce at the touch of a button are now critically important tools for improving cash flow and bottom-line profits.

All of the popular software packages designed for small business and personal finance are infinitely easier to use than they were as recently as a couple of years ago. More important, they will teach you in dramatic fashion how much you can benefit from a sensible cash management system.

Taken individually, good cash management techniques may seem inconsequential. However, when you blend them together in a consistent manner, they will form a significant and permanent contributor to your bottom line.

William J. Lynott is a former management consultant and corporate executive who writes on business and financial topics for a variety of consumer and trade publications. You can reach Bill at lynott@verizon.net.

SON OF SAM

Feeling any sympathy for Wal-Mart? You'd better, because the ever-growing firestorm of protest launched against the mega-retailer for its employee health-care policy could be directed against the restaurant industry next. A new study done in Ohio, documenting which companies have the most workers receiving government benefits, pegs Wal-Mart as the worst offender. But look out. Six of the next seven spots on the list were held by restaurant chains-two of them full-service chains. State and local officials have already begun to demand answers on this issue. They're asking why cash-strapped governments should subsidize-or in some cases, double-subsidize-somebody else's business.

Read More

Links outta whack!

I just recently had to switch servers and redesign my blogs - was going to do it anyway! - but one thing thats still giving me problems are the links in each posting. If you read over an article and the backlink doesn't work, just drop me an email and I'll personally send it to you and then get that specific link fixed. I apologize for the problem!

Jeffrey

How, when, and why you should fire the troublesome client (or guest!).

Eventually it happens, how you deal with it is up to you completely.

Telling a client you have to fire them or no longer work with them is a tough decision to make. The potential for things to go wrong in the process is huge.

- You lose the money (although, the time they were costing you more than probably makes up for the money).
- You do damage to a persons (many times) fragile ego.
- You lose any goodwill with that person (chances are good they will talk bad about you to as many people as they can).
- You may find it incredibly difficult to do - sometimes even reversing your "firing" and taking them back (almost always a huge mistake)
- You may find it hard to do and it may keep you awake atnight
BUT...
- You may find it the MOST liberating experience of your business life when you finally realize it is YOU that is incontrol, not them.

So, how do you know when the time has come?

If you find they are eating up way more time than theyshould be. Calling throughout the day, insisting on meeting after meeting, saying things that just don't make sense, even putting words in your mouth as to what you promised (contracts in place fix that).

At times, you will have that feeling deep inside the pit of your stomach that tells you this is not a good, healthy relationship.

Having just gone through this process last week, I can sayone thing - ALWAYS listen to your intuition or gut feeling.

In this case, right from day 1, I had a feeling something was amiss... but ignored that feeling. Which was a completely stupid decision on my part... I almost always listen to my gut feeling and it has almost always lead me in the right direction.

This was one of those cases where I thought I would use the facts to out weigh the intuition. A successful businessperson (so they claimed). A fascinating business model. An exciting project. And a decent compensation model for my work (base rate plus residuals from seat sales).

All combined, it seemed like a good thing.

Not.
It was trouble from day 2.

So, I bit the bullet and fired them this week.

Yikes!

True colors get really shown in a situation like this. Now is when you experience what the person it truly like behind locked doors.

You know what else is interesting?

Once they have been fired, chances are good you will also start hearing other people complaining about this same person - even if you never brought their name up.

Other people will somehow sense what is going on and contribute their experiences with that same person - in this case, it happened 3 times without my bringing the persons name up.

If you have a client that is causing you more grief than they are worth, fire them!

It may be a difficult thing at first, but once you get used to it, it will be the most liberating thing you do. Now YOU are back in the drivers seat and you can pick and choose whom you work with.

You will realize that there is no sane reason to put up with a clients abuse - let them drain some other poor souls blood and energy.

Once you gain back control, you will experience a completely different outlook on life, and you will start attracting more of the right type of client.

Don't let these kinds of clients drag you down - it is not worth it at all.
Be like Trump - "You're Fired!"


Or you can be more understated - "I just can't continue towork with you right now"

However you say it, it will open up a new world.

Try it, you'll like it.

http://advertising.ducttapemarketing.com/2006/04/how_when_and_wh.html

The future of pizza delivery?

Make sure your volume is on!

http://www.aclu.org/pizza/images/screen.swf

The coming health crisis!

A long line at the American Airlines counter. Finally, a particularly well-dressed man gets to the front, loudly announcing that he wants to check in for first class.

The harried agent does her best, but there's no room. He starts getting louder and more angry.

He's blathering about his power and authority.

She tries to placate him, but to no avail.

Finally, he yells, "Do you know who I am?"

Without missing a beat, the gate agent grabs the microphone. "Attention in the gate area. We have a medical emergency. The man at gate 11 has just suffered a serious bout of amnesia. If anyone recognizes him, can they please come forward and help him?"

All as a way of telling you that an epidemic of amnesia is sweeping our land. Armed with a blog and a following (I have 2,000 [or 2 million] daily readers... wait till they hear about this!), or with a frequent purchaser card or even just a credit card, millions of customers are now your most powerful customers. And as powerful customers, they want you to know, to recognize and to reward them for their power. If you don't know 'who they are', they're going to hit the road. Angrily.

Watch out for amnesia. It's spreading fast.

Smart marketers are already treating each customer as even more important than she thinks she is (Or aggressively treating all customers the same... well).

http://sethgodin.typepad.com/seths_blog/2006/04/the_coming_heal.html

The Customer is Always Right.

Greg writes in and wants to know if that's really true. What if the customer is an amnesiac, a jerk, a difficult blowhard badmouther? What if the customer is the sort that wears his LL Bean khakis for a year and then sends them back?

In our ultracompetitive markets, how can you possibly have a chance in the face of enormous consumer power?

The answer might surprise you. It's the unwritten rule 3 on Stew Leonard's famous granite rock:

If the customer is wrong, they're not your customer any more.

In other words, if it's not worth making the customer right, fire her.

Successful organizations (and I include churches and political parties on the list) fire the 1% of their constituents that cause 95% of the pain.

Fire them?

Fire them. Politely decline to do business with them. Refer them to your arch competitors.
Take them off the mailing list. Don't make promises you can't keep, don't be rude, just move on.
If you've got something worth paying for, you gain power when you refuse to offer it to every single person who is willing to pay you.

In 1988, my book packaging company had about six weeks worth of payroll in the bank. Yet we fired our biggest customer, someone who accounted for more than half our revenue. I still believe it was the right thing to do. We ended up happier and more successful, making up the business in a few months time.

If you treat a customer like he's wrong, he's going to leave, and probably tell a bunch of other people. Before you take that route, be direct, straightforward, polite and firm, and decline to sell to them.

So yes, the customer is always right. And if they're not, then one way or the other, they're not your customer any more.

http://sethgodin.typepad.com/seths_blog/2006/04/the_customer_is.html