profile magazine - 2009 foodservice market expansion guide

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2009 FOODSERVICE

MARKET EXPANSION

GUIDE

thefifthtaste

thefifthtaste

AS YOU LIKE IT MARKETING AND COMMUNICATIONS 466 Morden Road., Suite B, Oakville, Ontario L6K 3W4 | (905) 849-1815 [email protected] | www.asyoulikeitmarketing.com

As You Like It Marketing is an award winning full service ad agency specializing in strategic branding and marketing that delivers measurable results. We combine innovative design with strategic thinking to attract attention, reach customers and help put your brand on top.

We are specialists in brand identity, advertising, retail packaging, food styling & photography, menuboard design, environmental design, point of purchase, sales materials, conference & event planning and brand consulting & speaking.

Our campaigns evoke that special something... umami! As You Like It is an agency that will stimulate all your senses.

Ask most people and they would tell you the human tongue can detect four basic tastes: sweet, sour, bitter and salty, but the sense of taste is actually much more complicated. The smell, sound and texture of food also helps the taste buds relay taste to mission control in the brain.

In recent years, a fifth taste, umami, has been recognized. It involves all the senses, and is said to have a spiritual or mystical quality. Associated in culinary circles as experiencing a perfect quality in taste, it evokes a special emotional response when that taste is experienced.

Introducing NEW HEINZ RED THAITM

Sweet

Spicy

For recipes and more information visit www.foodservice.heinz.ca or call your Heinz Sales Representative.

1 866 205-5733 Western Canada

1 866 565-5700Ontario

1 866 574-3469Quebec

1 866 570-6550Atlantic Canada

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QCCREATIVEPRODUCTION

COLOUR SWATCHES (FOR REFERENCE ONLY). PLEASE REFER TO THE PANTONE MATCHING SYSTEM OR CURRENT PRINTED SAMPLES FOR AN ACCURATE COLOUR MATCH.

STUDIO ARTIST

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MOCKUP (PM)ACC. MANAGER

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CLIENT: Heinz JOB DESC. Resize Ad

FOLDER NAME: 7793 RedTaiandHeinz575mLAds

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IMPORTANT: FINAL APPROVAL IS THE CLIENT’S RESPONSIBILITY. PLEASE PROOF THIS ARTWORK CAREFULLY. QUADRANT MARKETING SHOULD BE NOTIFIED OF ANY CHANGES IN ORDER TO MAINTAIN MECHANICAL ACCURACY. WE RECOMMEND THAT COLOUR PROOFS BE SUBMITTED TO US FOR APPROVAL BEFORE PRINTING. ALL TRAPS, SPREADS AND FILMWORK ARE THE RESPONSIBILITY OF THE SEPARATOR. PICTURES ARE FINAL UNLESS OTHERWISE INDICATED. BLENDS SHOULD BE REPLACED WITH CTs IF THEY ARE PREDICTED TO CAUSE BANDING.

quadrant marketing ltd.

1220 Sheppard Ave. E., Suite 400, Toronto, Ontario M2K 2S5Tel.: 416.497.1711 Fax: 416.497.3441

f01_7793E_HeinzRedTai_Ad.indd 1 2/6/09 11:43:38 AM

Publi

sher’

s Note

If you’re anything like me when faced with a problem you look for the most accessible solutions

available. Trying to find a way of describing this issue of Profile Magazine my immediate thought went to

of all things a menu. Sure we’re all familiar with sitting down in a nice restaurant and perusing the menu

figuring out just what strikes us today. What you’ll find sitting down and reading this issue is not unlike a

restaurant’s menu the pages will reveal an agenda of items to do when expansion is what’s striking us!

Talking about expansion during a recession might make some scratch their heads but as you will come to read

the advantages available at this time might be too good to pass up. Typically when you discuss expansion it’s

because an existing operation has found great success, built a niche and fine tuned their efficiencies to the

point where they can start thinking about replicating the model.

Not wanting to make this issue a simple checklist, Profile Magazine brings you a panel of industry experts

who will share their industry secrets, success stories and emerging trends, arming you with the necessary

insight for a successful completion to any expansion plan. From retaining a competitive edge, strategic

planning, knowing what successes to replicate, defining and implementing growth objectives, financing

strategies, interior design 101, new technology and food and beverage trends this issue shares the wisdom of

many so we can all succeed.

Being part of the food industry and sharing in its passion, this issue shows that the good times are as subjective

as the pallet on any given day. I’m ready to order; I know you’ll enjoy the dish!

Best Regards,

Juan Malvestitti

Introducing NEW HEINZ RED THAITM

Sweet

Spicy

For recipes and more information visit www.foodservice.heinz.ca or call your Heinz Sales Representative.

1 866 205-5733 Western Canada

1 866 565-5700Ontario

1 866 574-3469Quebec

1 866 570-6550Atlantic Canada

xxC/xxM/xxY/xxK

BACKGROUND COLOUR



STUDIO ARTIST

ART DIRECTOR

PROJECT MANAGER


ART APPROVED

PROOFREAD



FILE NAME: f01_7793E_HeinzRedTai_Ad.indd



REVISED DATE: Feb 5 ARTIST: kyle THIS ARTWORK HASBEEN CREATED AT 100%

OF ACTUAL SIZE(8.125” X 10.875”) FLAT(___” X ___”) FOLDED.

BLEED: .125”


TO FIT IN THE PAGE.

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f01_7793E_HeinzRedTai_Ad.indd 1 2/6/09 11:43:38 AM

OWNERJuan [email protected]

EDITOR IN CHIEFMarc L. Côté

DESIGNAs You Like It Marketing & Communications

CONTROLLER Florencia Rojas

LEGAL Carla Bracamonte

SUBSCRIPTIONSCanada: One year $27.00 Elsewhere: $39.00Single copy sales:Canada $9.00 Elsewhere: $12.00

PROFILE Magazine welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

Requests for permission to reprint or publish any portion of this magazine should be addressed to the publisher.

Printed in Canada on recycled paper. Can

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V I S I O N • S T R AT E G Y • R E S U LT S

All contents copyright © Modern Empire Inc.

2087 Lake Shore Blvd, W. Ste. 1607 Toronto, Ontario M8V 4G3416.236.7473www.modernempire.ca

In this Issue...FINANCING

Plan Your Growth

FOOD FOR THOUGHT Letter from the Publisher

INTERIORS Design 101

MARKETING Expanding your Business

GROWTH Strategic Planning

TRAINING Retaining you Competitive Edge

TECHNOLOGY POS Solutions

COFFEE TRENDS From the Ground Up

MIXOLOGY The Bar Prophet on Spirits

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BIG NEWS!

INTRODUCING THE NEW

575mL

BIG SQUEEZEBIG SAVINGS

Lower per mL cost versus 375 mL size.

BIG BENEFITSMore sustainable with

less packaging and more product.

BIG ADVANTAGESLess storage, less handling,

improved dispensing and evacuation.*

BIG FEATURESNew attractive design, Stay-Clean cap feature, “Easy Squeeze” Forever Full®

bottle with a non-removable SafetyCap.™

* Versus 375 mL glass and Forever Full® bottles

For more information visit www.foodservice.heinz.ca or call your Heinz sales representative.

1 866 205-5733 1 866 574-3469 Western Canada Quebec

1 866 565-5700 1 866 570-6550 Ontario Atlantic Canada

xxC/xxM/xxY/xxK

BACKGROUND COLOUR



STUDIO ARTIST

ART DIRECTOR

PROJECT MANAGER


ART APPROVED

PROOFREAD



FILE NAME: f02_7793E_Heinz_575_Ad.indd



REVISED DATE: Feb 6 ARTIST: Jeff Lin THIS ARTWORK HAS BEEN CREATED AT 100%

OF ACTUAL SIZE (8.125” X 10.875”) FLAT (___” X ___”) FOLDED.

BLEED: .125”


TO FIT IN THE PAGE.

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By The Business Development Bank of CanadaBy The Business Development Bank of Canada

Plan your growth step-by-step W hen your company is growing fast, you may not

have enough cash to deal with day-to-day opera-tions. This is why entrepreneurs in the hotel and

restaurant sector may find that their liquidities and cash flow are their lifeline.

“It’s a bit of a paradox, but some companies may find them-selves crushed by their own growth”, says Bruce McConnell, Vice President, Strategic Initiatives & Operations Support at BDC Consulting. “Increased sales can bring about many changes in an organization – entrepreneurs might be taking on numerous commitments at once, sign lucrative contracts in record time and watch orders soar. These operations require greater cash flow needs, growth planning and the right financing.” Here are a few strategies that may help entrepreneurs make fast growth manageable.

Define your growth objectives and implement a proactive growth strategyBe strategic about your growth. It’s a good exercise to first determine your key objectives and your ability to finance your company’s growth. Ask yourself:

Do you have cash flow problems or do you manage well? •Do you have assets that can be turned into cash? •Are you expanding too quickly or hiring too fast? •Are you collecting your receivables fast enough? •Is your inventory in line with your company’s growth? •Does your management team have the right competencies •to handle growth?

Do a growth diagnosis of your company and prepare a sustainable growth strategy“Essentially this means analyzing how you manage your company and how to gain more control over those business aspects that affect your cash flow”, says McConnell. Generally, a comprehensive growth diagnosis includes an analysis of sales,

9

Plan your growth step-by-step

““It’s a bit of a paradox, but some companies may find themselves crushed by their own growth.

overhead, receivables, inventory and assets. Try to assess whether your inventory and capital assets are absorbing too much of your cash flow, if they do, take the necessary steps to control them. This will help you define your refinancing requirements and will spare future liquidity problems.

“Entrepreneurs need to demonstrate they understand risks and opportunities associated with growth. Your strategy should be the result of looking closely at internal resources, the market, the econo-my, competitors, marketing and distribution channels and demograph-ics”, he points out.

Implement a comprehensive financial strategy“If you have a cash-flow problem, you need to plan to avoid a recurrence of this situation”, says McConnell. Prepare conservative financial forecasts to include different scenarios, i.e., best-case and worst-case and take into account your financial needs and the factors that could affect your business success. Also try to forecast cash requirements by doing an analysis of your cash inflow and outflow. Knowing this, you can look at your current financial situation and assess whether it can be improved. You may be able to get additional financing for working capital, restructure your debt or convert unused assets into cash.

Analyze receivables and payables to improve liquidity problems To ensure an optimal management of receivables, be sure to:

Do credit checks on clients; •

Have clear payment terms; •

Use the right collection methods; •

Resolve problems quickly; •

Monitor the collection time and take the right means for substan-•tially overdue accounts;

Take measures to reduce collection time if your credit policy is •affecting your cash flow.

Apply the same logic in examining your payables.

How much commercial credit do you get from your suppliers? •How much interest do you pay?

Do you wait until the due date to pay your suppliers or do you pay •them in advance?

Can you get an extension on your commercial credit? •

Do you use the “just-in-time” method i.e. reduce your inventory by •closely coordinating reorders and deliveries?

Control costs and debt through vigilant planningBusiness owners can consider using a rigorous streamlining system that addresses overhead such as: rent, equipment, human resources, office supplies, etc. “Be sure to set concrete goals for your cost-cut-ting strategies, assign somebody accountable and secure employee buy-in to help reduce costs. Be particularly careful about maintaining cost controls during growth spurts where businesses often binge with spending”, advises McConnell.

Also control debt to ensure that lenders will continue to consider you a viable client and give you the financing you need to meet your needs. Entrepreneurs can also look for alternatives to conventional debt financing by negotiating better payment schedules with suppliers or investigating leasing opportunities instead of buying assets.

Profile 9

Letter from the Publisher

Discussions of expansion during a recession no matter the industry will have as many varied opinions

as there are experts in any field. Anytime I ponder an issue I look for parallels in life. For some strange

reason the phrase, coined by Clinton campaign strategist James Carville, “the economy stupid” echoed

in my head. The phrase refers to the notion that Clinton was a better choice because Bush had not

adequately addressed the economy which had recently undergone a recession. The “phrase” printed on

a banner along with a few other sayings were to keep the campaign on message; Carville hung the sign

in Bill Clinton’s Little Rock campaign headquarters.

What does the “phrase” have to do with expansion during a recession, well maybe nothing or perhaps

following the right message you’ll find that expanding during a recession might just be a good idea.

We all understand that restaurants, with their low profit margins (4-7%, pre tax), are impacted more so

by external factors than most other industries. Taxes, fuel costs, minimum wage increases, rising food

costs and inflation have continually hindered restaurants and significantly affected an operator’s bottom

line. Over the past few decades’ sky rocketing real estate values, fuel and food costs have success-

fully steered many operators away from expansion. Restaurants who have found success despite these

factors are often leery of large investment plans. Before contemplating expansion a restaurant has to

solidify customer base, word of mouth and patron retention. With expansion talks comes new costs and

that’s where our recession plays a role.

The recession we find ourselves in today is one with lower interest rates, cheaper construction costs

due to labour availability and a steadily declining real estate market. Another important point to

understand is that any successful expansion no matter the industry takes anywhere from 8 – 24 months

to complete. These factors may present a motivating and convincing argument for market expansion.

Planning and strategy are everything when expanding and this recession for some might be a blessing

in disguise. One can capitalize on the readily available talent, finance and trade competition. Having the

resources to build and expand in a stagnant marketplace could position you coming out of the recession

stronger in that marketplace.

As it turns out Carville’s phrase “the economy stupid” may have more profound implications than

originally thought. We don’t need reminding of the recession we have our bottom line for that, but being

informed so we can adequately address our company goals in a recession, is always worth reminding.

Juan Malvestitti

Get the refinancing you need“After analyzing your company, you will be better able to examine your payment procedures. Refinancing can help reduce your monthly payments by rescheduling your debts and spreading your payments over a longer period”, he says.

A refinancing application is very similar to a financing application. In both cases, the lender establishes certain debt repayment conditions, which applicants must be able to fulfill. If you cannot demonstrate your repayment ability, the lender cannot assume the risk alone.

“BDC provides loans to refinance debt for businesses undergo-ing rapid expansion, purchasing equipment or requiring more financial flexibility”, says McConnell. For example, entrepreneurs could replace multiple debts with a single debt that is easier to manage. BDC also provides flexible-term refinancing which can be repaid in equal monthly, progressive or seasonal instalments. Terms take your company’s rate of cash flow into account and the repayment period is determined by the nature of the assets provided as security.

BDC is Canada’s business development bank. Small and medium sized businesses make up 99.7% of all employer businesses in Canada. BDC manages a $10.6 billion loan and investment portfolio and serves over 28,000 clients. Visit www.bdc.ca for more information.

Your chances of obtaining refinancing are greater if you have:

A good credit history To obtain financing, you must prove your repayment ability, par-ticularly if your company is in difficulty. Your earnings forecast should be conservative to avoid giving the lender any cause for concern. Before any new loan is approved, the financial institu-tion will double-check your business credit and capacity with either Equifax, TransUnion or North Credit bureau.

A strong management team Any financial institution will want to verify that your company is well managed. Being profitable is one thing, but ensuring that you have the team in place to sustain growth is another. Start by demonstrating that your team members are competent and well-qualified to do the job. It would help to prove your successful track record by communicating past achievements and the soundness of your plans.

A clear restructuring planIf you’re dealing with temporary difficulties, you should provide a restructuring plan. More detailed than a financial analysis, a restructuring plan includes measures to rectify an unprofitable position. It can present refinancing as one way to re-establish positive working capital by improving the terms and conditions of your current loans. Restructuring can include the sale of non-essential assets and inventory, which may generate additional one-time revenue.

P

Letter from the Publisher

Discussions of expansion during a recession no matter the industry will have as many varied opinions

as there are experts in any field. Anytime I ponder an issue I look for parallels in life. For some strange

reason the phrase, coined by Clinton campaign strategist James Carville, “the economy stupid” echoed

in my head. The phrase refers to the notion that Clinton was a better choice because Bush had not

adequately addressed the economy which had recently undergone a recession. The “phrase” printed on

a banner along with a few other sayings were to keep the campaign on message; Carville hung the sign

in Bill Clinton’s Little Rock campaign headquarters.

What does the “phrase” have to do with expansion during a recession, well maybe nothing or perhaps

following the right message you’ll find that expanding during a recession might just be a good idea.

We all understand that restaurants, with their low profit margins (4-7%, pre tax), are impacted more so

by external factors than most other industries. Taxes, fuel costs, minimum wage increases, rising food

costs and inflation have continually hindered restaurants and significantly affected an operator’s bottom

line. Over the past few decades’ sky rocketing real estate values, fuel and food costs have success-

fully steered many operators away from expansion. Restaurants who have found success despite these

factors are often leery of large investment plans. Before contemplating expansion a restaurant has to

solidify customer base, word of mouth and patron retention. With expansion talks comes new costs and

that’s where our recession plays a role.

The recession we find ourselves in today is one with lower interest rates, cheaper construction costs

due to labour availability and a steadily declining real estate market. Another important point to

understand is that any successful expansion no matter the industry takes anywhere from 8 – 24 months

to complete. These factors may present a motivating and convincing argument for market expansion.

Planning and strategy are everything when expanding and this recession for some might be a blessing

in disguise. One can capitalize on the readily available talent, finance and trade competition. Having the

resources to build and expand in a stagnant marketplace could position you coming out of the recession

stronger in that marketplace.

As it turns out Carville’s phrase “the economy stupid” may have more profound implications than

originally thought. We don’t need reminding of the recession we have our bottom line for that, but being

informed so we can adequately address our company goals in a recession, is always worth reminding.

Juan Malvestitti

[Food For thought]

Profile 11

T here almost always comes a time when a successful restau-rant owner has thoughts of expanding the business to other cities, regions and even provinces. Upon further investiga-

tion the process can start to feel so daunting that those opportunities often go unrealized. In order to understand the process and possible pitfalls, these are steps the potential multi-store owner should take to help ensure success for the transition from the dream into reality.

Hire a Design Professional Whether an architect or interior designer, this is the first step in the decision to move forward. While your concept may have been originally developed without a professional, it is necessary in today’s competitive landscape to have a cohesive branded look and feel. Check the firm’s website, success stories, and testimonials.

Ask references if the designer completed the work when promised? Were they accessible and flexible to changes that invariably arise on site? Would they hire them again?

T here almost always comes a time when a successful restau-

Design 101

site? Would they hire them again?

Other things to consider when hiring a designer:

Does the company have restaurant/chain/branding experience?•Does the firm have proper credentials? Do they have the B.C.I.N. •stamp required to obtain permits?Am I comfortable that the designer can elevate the concept, •identity and build on the Brand essence?Will the designer work well with other professionals including •Marketing and Merchandising in order to develop a cohesive look and feel?Does the designer have a working knowledge of the latest •equipment and technology?How knowledgeable are they about my particular business / •current and future competition?Do they understand my target audience (demographics) that I am •catering to?Am I comfortable with the size of the firm? Will I be getting the •principal or senior design team to work on my project?How busy is the firm? Are they accessible and can they meet •my deadlines?

By Karen Skobel

Building Codes and PermitsBeyond aesthetics, operators will quickly discover that the building requirements for restaurants, in particular, have radically changed over the past few years. There are much stricter rules governing life safety including fire separation, egress, and oc-cupancy (number of seats) among others. In addition, national building codes have changed to include minimum clearances for all major walkways and washrooms need to meet A.D.A (disabled) regulations. Plans should be developed according to these codes. If in doubt, preliminary submissions to the city or code consultants will avoid mis-takes that could easily be in the tens of thou-sands of dollars with stop work orders, fines, resubmissions as well as changing what has already been constructed. For that reason, concept plans should always be done before a lease is signed to ensure there is enough space for the concept to work effectively.

Game PlanOnce you have retained the designer, together you will work on understanding what makes your concept unique. Some design firms offer this branding service “in house” while this exercise is often done in conjunction with a company that specializes specifically in branding, repositioning and re-imaging. Either way, the questions posed should include:

What makes my concept unique?•What is my Brand proposition (promise) to •the customer?How do I want my patrons to feel when •they come thru the door?

Once that is clearly identified, the designer will start the development process.

Form Follows FunctionThis is a critical time to review the operation of the restaurant. Is it as efficient as it can be? The designer can review various options with you. With the current crisis in hospitality labour, a restaurant that is currently table ser-vice, for example, might re-consider a hybrid, perhaps ordering in “line” and having the food brought to the tables in order to save labour and be more efficient. Remember, a well run “self-serve” based concept is always a better experience than poor table service. An “open kitchen” might seem appealing but again with personnel shortage and new efficiencies in equipment, you may decide that you can create a better overall customer experience without the kitchen in plain view. Once the operational direction has been decided, the designer can work with all the other informa-tion gathered to translate the new look.

What’s in a name? Remember that your current location(s) have had several years of constant growth in established neighbourhoods and the name has been less important than the great food and service. New sites require a name and signage that will immediately draw potential customers into it. Your designer and marketing firm will be in the best position to advise you.

This is the one chance to seriously consider a name change. Ask yourself, “How much actual equity is there in the current name?” Does it entice, intrigue and tell the customer what the core product is? Is it easy to read? Most names developed originally over a kitchen table were rarely developed with these thoughts in mind. If you are looking at multiple sites, landlords and municipalities will have criteria that will determine how big your sign can be. A name that is too long or artwork that is too complicated is extremely difficult to read. Your designer can show you how the new signage will work on a variety of typical storefronts to ensure a strong state-ment from the street, mall or highway.

The New DesignFrom the exterior design, thru the windows and as the customer enters in the store, the mood and ambiance is all important. The interior should be an extension of the Brand. The importance of the right interior design cannot be understated. It captures the imagi-nation and heightens the total experience. For example, if the concept is based on all fresh and organic ingredients the finishes and materials should be an extension of the offerings. Reclaimed, recycled wood and materials along with warm inviting lighting

Building Codes and PermitsBuilding Codes and Permits

Design 101

would be a good idea to consider as customers seeking this type of product offering will immediately relate to the interior thus building brand loyalty. Conversely if the concept was a new age ice cream parlour and the target market is 18-34 a contemporary “club” interior with lean leather sofas and sophisticated lighting and finishes would immediately create a point of difference from competitors and help establish the concept as “ The” meeting place.

Regardless of the concept, when all the design elements including the exterior, interior graphics, menus, communication pieces all work together in harmony you will have a brand that can be positioned to grow to multiple locations. Don’t forget to communicate these changes to your existing clientele. They will be happy to know they have contributed to your success. Once the new location is up and running it would be a good time to renovate or retrofit your original location as you are now establishing the look and feel of all your loca-tions, moving forward.

TimingBefore the lease is signed one should have a realistic idea of the build-out schedule. While two months free rent might seem like a generous offer, the reality is a new prototype takes much more time to develop the concept properly. While you may have worked with a “handy man” for years, this may not be the time to bring him in un-less you are confident he can execute the new concept not only for the best price but equally important, in a timely manner. A tender to qualified contractors should be considered. Your designer can advise as well be able to develop a schedule that would take into account the issues that invariably happen during the tender and build-out.

By understanding the process and following the necessary steps to create the infrastructure for a successful expansion, the dream could indeed become reality.

Karen Skobel is the president of de Signum design. The firm has an 18 year history specializing in a wide variety of retail, hospitality and restaurant interiors both across Canada and the U.S. www.designumdesign.com

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S o you want to expand your business…. open another location or two. Why not, after all your existing location is doing well, so doesn’t it make sense to have more than one

outlet/location?

There’s a critical aspect to expansion that is fundamental…. your company’s or product’s actual identity. A “brands” identity is the sum of many parts…name, logo, colours, slogans, store design, location, menu/product offerings, packaging, staff, and general overall look and feel.

These elements create your identity and it is your identity that custom-ers remember about you. Once you’ve decided on the elements of your company or product identity, use it consistently and repeatedly. And the components of a company identity enable customers to quickly identify a product or service, increasing the likelihood that they’ll continue to buy from you.

Obviously there is a lot to consider when embarking on a project of this magnitude. Opening a new location or introducing a new product line is a monumental task.

MenuThe menu is one of the most important aspects of any restaurant. It sets the theme, the pace and décor of most establishments. It is arguably the soul of any restaurant.

When adding locations to your restaurant you need to ensure that your menu offerings stay true to your concept but that they meet the needs of the consumers in area you will be opening. Take a long hard look at menu to see if it needs to be adjusted in order to replicate in numerous locations. Are there specialty items that will be difficult to source or supply to your new restaurants? Are the menu items offered at prices that the customers believe provide them with good value but still provide you with a profit?

Replicating your SuccessAre the recipes for your signature items that can translate to new staff, kitchens and suppliers? Will your existing supply chain be able to service your new locations? If not, can you secure the same quality and quantity of items to ensure consistency within your restaurants? As an existing restaurant you will have already created a theme or image in the minds of your customers, therefore any changes, additions or deletions to your menu must be made in a way that will enhance the existing perception of your restaurant.

Interior DesignThe interior of a restaurant is just as important as the menu. Just as you have spent many hours developing and honing your menu, the interior needs to reflect what you are offering the customer.

Are you aiming to provide families with a lively and casual dining experience or are you trying to create a soothing, relaxed and romantic venue? As you are planning for your next location, look carefully at what has worked and hasn’t worked in your existing restaurant. Are your customers experiencing your restaurant with all their senses…sight, sound, touch and taste?

Some things to consider when trying to create a pleasing sensory experience are:

Theme/Vision – what kind of ambience are you trying to create? Is it casual or formal? Does the interior match your menu or is there a disconnect? Do the design elements reflect the intended ambiance and customer expectations?

Functionality- is there enough room in the front and back of the house? Is the kitchen laid out efficiently? Are all the culinary require-ments being met with the speced equipment? Can staff move easily from station to station? Are there areas of congestion around the entrance, the bar, the washrooms?

Replicating your Success

Expanding Your Business...

16 Profile

By Patti Hone

When designing the interior of your restaurant remember to keep your staff in mind too. Make sure that the design facilitates easy move-ments in and out of the kitchen so that service remains efficient and customers are accessed easily and promptly.

Let there be light- brightly lit spaces convey energy while low ambi-ent lighting feels cozier. Lights can be used for effect too. A spotlight on your logo panel or up lighting on a featured wall all add to the design of your space.

Noise/Acoustics – when designing your space think about how sound will travel when the restaurant is empty and when it is full. The use of fabrics, carpets, draperies and acoustical tiles can make big difference in absorbing unwanted noise.

Use an expert – all interior designers are not created equally. A res-taurant designer is different than an interior designer you would hire to decorate your house. They should understand the operations of a restaurant – the flow of the food from kitchen to table, the customer’s perception of the “look” and the knowledge of how to spec and source materials that are durable and are in keeping with the overall theme.

Stick to a budget – think about the cost of the design and how it fits into your profitability. Use the best materials you can afford and analyze and plan where you can cut back and where you can’t.

StaffWhen opening another location staffing is a key component. Will you need to bring on all new staff or can some existing staff move to the new location. You must think about food preparation staff and front of the house service. Will your labour costs increase with the new location? If so, how will you offset that to ensure profitability?

How much training will each of the staff need? How far in advance of the opening will you need staff in place? The right staff is as crucial as the right menu and location. If you find good people, hold on to them, as they are the life blood of any good restaurant.

Get to know your employees on a personal level. Support them and help then achieve their goals and they will move mountains for you. Encourage them to measure their efforts and teach them how to improve performance as a way of reaching their personal goals. You’ll keep good employees and attract more who want to join a team that is successful and enjoys the company they work for.

Customer BaseA critical factor in discovering more about your customer is market segmentation; defining the who’s who of your clientele. What do they have in common with each other and how can you attract more like them?

Customer profiles can be broken down into the following areas:

Geographics – profiling customers based on where they’re com-ing from…. city, province, country or as targeted as a neighborhood or street.

Demographics – how old are your customers, are they male or female, do they fall into a certain income bracket, are they married, single, etc.

Psychographics – what kind of behavioral patterns or lifestyle characteristics do they share? What are their beliefs, values and attitudes towards themselves and society?

Geodemographics – also known as cluster marketing, combines all the above. Its basic premise is that people who have similar backgrounds or live in the same area tend to have the same buying habits and patterns….”birds of a feather flock together”.

Replicating your Success

Expanding Your Business...

Profile 17

By knowing your customer geographics you know where to reach your customers. Knowing their demographics you know who to reach and using psychographics you’ll know how to reach them. Once you know who you’re trying to reach, where to reach them , you need to know what to say or offer them in order to make them buy from you. How do you motivate, inspire and attract them to buy.

Today’s marketplace offers an overwhelming selection of products and services, so you need to ensure that what ever you are offering stands out from the pack. Is it of better quality, better priced, more readily available or unique to the marketplace?

Location, Location, LocationYour restaurant’s location is as crucial to your success as the service and the food. When choosing the next location think carefully about these elements:

Visibility – if people don’t know your restaurant is there…then the best menu in town is still not going to get your register to ring. Downtown locations and developed strip malls offer a level of visibility that can bring in great “walk in” traffic and therefore demand higher rents.

Accessibility- being located near a major intersection or just off an exit to a highway has a large appeal to customers. Your location should be easy to find and easy to get to. Next time you’re driving, take note of how many restaurant chains are located just off most major exits on the highway. Motorists can reach their favourite restaurants without driving out of their way.

Parking- never under estimate the power of parking! Does the new location have enough parking to accommodate the number of seats in your restaurant? If not, is there public parking close by?

Size/Zoning- before you commit to a new space make sure that it has been zoned to meet your needs and that the footprint will meet all the requirements for a restaurant. Remember you will need front of house and back of house space for prep, cooking, wait stations and storage.History – have other restaurants/businesses failed in that location? If so was it due to poor management on the last tenant or has there been several failed attempts? Perhaps the lease is too costly to support a profit.

FinancingUnless you have a lot of cash on hand, you’ll need to arrange for financing of your expansion….and it can be a challenge. There are many factors that will be taken into consideration…your experience, the size of your business and of course how much money you will need. Most banks and lenders will require you to put some of your own money into the business.

Banks tend to closely scrutinize restaurant applications, but get-ting financing for a second and third location is easier than getting it for your first. Now you have a track record and history for the bank to review.

If you have the right contacts and the ability to prove yourself then looking for investors is another route to explore. Investors could give you the financial backing that may not be available from a bank. Family, friends, and suppliers are great sources for finding investors. Whether you offer them interest on a loan, equity in your restaurant or both, you want to structure the agreement so that you keep control of the business. Make sure you have your accountant or attorney review any documentation carefully before entering into any contract.

No matter what route you take to obtain money, you need to be prepared with a proper business plan. Include your research on the concept, location, area demographics, food costs, fixed costs and expected revenue. The more thorough you are, the more likely lenders and investors will be convinced that you are a good investment.

MarketingIn order to expand with success you need to have a good core to begin with. Regardless with how memorable your name is, how excit-ing the design of the menu is, how delicious looking the photo of the burger is or reasonable the price is for the product, if the customer’s expectations aren’t met….if the brand doesn’t deliver…that’s what they remember. So keep this in mind when planning your marketing. Make sure that whatever you “promise” it can be delivered at all your locations, whether they are a block away or across the country. Keep your marketing promise and your brand will flourish. Break them and the effects will not soon be forgotten.

Adding locations takes a lot of work, but it is a great opportunity to build your brand and your customer base. Take a good hard look at your business and make the necessary changes in order to revitalize your look and message so that you can connect with your customers in a more focused and cohesive manner. Highlight your assets and fix your problem areas so that your brand flourishes in your new locations and continues to deliver what your customers fell in love with in the first place.

REMEMBERBe committed. Commit to your plan and stay focused.

Be consistent. Stay true to what has brought you success. Customers want to know that they will get the same product/service/experience each and every time.

Be patient. Every new location takes time to establish itself. Your efforts will pay off eventually.

Be persistent. Don’t be discouraged by setbacks. They aren’t neces-sarily failures. Whatever you are doing, if you are getting any kind of results, persevere.

Patti Hone is an award-winning consultant, speaker and president of As You Like It Marketing & Communications Inc. With over 20 years experience, Patti has been retained by companies across North America to bring their brands to life. You can contact her at [email protected]

18 Profile

Food & Beverage Specialty Group

You are an expert in your craft, take great pride in

your product and measure your success based on the

satisfaction of the consumer.

Partner with an advisory team that will develop innovative

solutions to improve cost management, maximize the

value of your product and design a progress based program

specific to your business.

The food and beverage sector is facing unprecedented

changes and business owners and managers need to

adapt to the new economic climate.

Obtain the information you need to prosper in today’s

challenging market and enjoy a personally managed

client relationship. From retail start-ups to large national

manufacturers, trust the advisors offering real industry

experience and in-depth knowledge.

This is a time when your advisory team makes a

real difference.

Fuller Landau LLP 151 Bloor Street West, 12th FloorToronto, ON M5S 1S4

(416) 645-6500www.fullerlandau.com

Mergers & Acquisitions

Due Diligence

Transactional Support

Capital Raise & Financing

Asset Based Lending

Restructuring & Insolvency

Business Advisory

Litigation Support

Succession Planning

Valuations

Wealth Management

Audit & Assurance

Tax Planning

P

Food & Beverage Specialty Group

You are an expert in your craft, take great pride in

your product and measure your success based on the

satisfaction of the consumer.

Partner with an advisory team that will develop innovative

solutions to improve cost management, maximize the

value of your product and design a progress based program

specific to your business.

The food and beverage sector is facing unprecedented

changes and business owners and managers need to

adapt to the new economic climate.

Obtain the information you need to prosper in today’s

challenging market and enjoy a personally managed

client relationship. From retail start-ups to large national

manufacturers, trust the advisors offering real industry

experience and in-depth knowledge.

This is a time when your advisory team makes a

real difference.

Fuller Landau LLP 151 Bloor Street West, 12th FloorToronto, ON M5S 1S4

(416) 645-6500www.fullerlandau.com

Mergers & Acquisitions

Due Diligence

Transactional Support

Capital Raise & Financing

Asset Based Lending

Restructuring & Insolvency

Business Advisory

Litigation Support

Succession Planning

Valuations

Wealth Management

Audit & Assurance

Tax Planning

T he food and beverage sector is facing unprecedented challenges. Business owners and their management teams need to employ creative strategies to prosper in the current

economic climate.

Business owners often find it difficult to step away from operating their business in order to spend time strategizing and positioning their business for the future. However, during these turbulent times, disciplined strategic planning becomes more important than ever and can help companies become stronger and more focused to weather the current economic storm.

Fluctuations in raw material costs, reduced consumer spending, trans-portation costs and foreign currency are posing significant challenges in terms of both short and long-term planning, as well as competitive positioning in the market. “The sector is facing a number of forces that will have an impact on every aspect of operations, from supply chain activities, to pricing, to securing financing,” says Wayne Gelb, partner at chartered accounting and business advisory firm, Fuller Landau.

“The price of raw materials and the cost of borrowing will continue to fluctuate, and the fluctuating dollar means that the cost of goods will become increasingly unpredictable.”

There are a number of strategic planning practices that can help. Here are some recommendations for staying ahead in uncertain times:

Continue to excel in the areas of quality and reputationBusinesses in the food and beverage sector are deeply impacted by the strength of their brand reputation. Protecting your brand should be a high priority and all business activities should be planned around this goal. Ensure that your company is consistently delivering on product promises and expectations by developing and monitoring key performance indicators that allow you to track success. These goals and their results should be communicated to all employees. Many successful companies allow their employees to share in the businesses success and solicit their input when developing strategies for opera-tional improvement if results are less than expected.

Strategic PlanningBy Wayne Gelb, CA

Staying close to and understanding your customer’s needs is paramount. Business owners must be proactive in understanding buy-ing trends, anticipating volume requirements and doing what it takes to ensure their customers are satisfied. It is only when you have the depth of understanding of your customer that you can identify new product or market opportunities. Ensuring you provide an exception-al level of customer service can also help to insulate you from the pricing and margin pressures while maintaining high levels of customer loyalty.

Build strong supplier relationshipsBusinesses must be concerned not only with the effect of the economic slow-down on their own operations, but also the affect it is having on their suppliers. Since the success of your business is closely tied to the fortune of others, it is time to get closer to your suppliers in order to truly understand their financial security.

Consider scheduling quarterly meetings with key suppliers, reviewing items such as available payment term options, negotiating contracts to secure costing and the fine tuning of supply chain processes and logistics. You should also be paying attention to warning signs such as interruption of deliveries and stock-outs which could signify poor business health. The more you understand your supplier, the better able you will be to prepare and develop contingency strategies should a business failure occur.

Protect your business with a healthy cash flowThe lifeline of any business has always been strong, stable cash flow and this is now more important than ever. A healthy cash position provides stability and allows a company to take advantage of opportu-nities that are sure to arise, for example, acquisitions of competitors or distress buys from suppliers. Understanding your business cycles and cost structure is essential to ensure you are able to anticipate and plan for cash flow needs.

This analysis should begin with a review of working capital and the company’s ability to convert it into cash. Review the collections from key customers and consider offering or enhancing discounts to incen-tivize early payment if required. Review and track bad debts

and consider a full scale review of credit terms and conditions for all customers. Review inventory turnover for top SKU’s and ensure your purchasing patterns have been adjusted to reflect current demand conditions. Consider selling off excess inventory by offering promo-tions or discounts to customers.

“Accelerating cash flow forecasting to a monthly or a bi-weekly schedule and keeping on top of changing input costs and profit margins is a good place to start,” comments Gelb. “This will enable you to become more proactive in mitigating potential problems.” Ensure your company has a forecasting method which is continuously reviewed and updated is essential.

Businesses should also consider more creative options for freeing up cash and moving excess inventory or space through the use of modern-ized bartering systems. “A barter exchange acts as a currency by which businesses can trade their goods and services among each other, while conserving their cash flow, increasing their bottom line and increasing their market share.” comments David Holland, Vice President of Barter Network Ltd.

Bartering is a growing trend in the Canadian marketplace. It is a strategy that can increase market share through the acquisition of new customers, create meaningful value from underutilized assets and capacity, and also offsets your cash operating expenses.

Strategic Planning The basis of success

““The price of raw materials and the cost of borrowing will continue to fluctuate, and the fluctuating dollar means that the cost of goods will become increasingly unpredictable.

Profile 21

Be a good friend to your bank Since the banking crisis began last fall, a company’s ability to raise capital has become much more difficult and this trend is expected to continue in the near term. Traditional lenders are less focused on growing their loan portfolios and will tend to allocate the capital they have to proven, well established existing borrower relationships.

Be aware of the fact that banks are scrutinizing the information that you provide to them more carefully then ever before. Ensure you are proactive in sharing operating results and where results are not as strong as forecasted; be proactive in providing the bank with your strategies for mitigating the result of lost sales or decreased margins. This may include identifying potential lay-offs, plant closures or other methods of reducing fixed overhead. Giving your banker confidence that the management team has the operational know-how to navigate the company through challenging times will ensure that a strong rela-tionship is maintained.

Focus on talent retentionA business strategy is only as good as the people who execute it. Nurturing and protecting the human capital of your company is necessary to ensure success. Create a culture whereby star talent is identified and rewarded accordingly. Rewards should be given for measurable goals that are attained and all employees should have a clear understanding of their role and the expectations surrounding it.

Maintain overall employee relations through open lines of commu-nication. By nature, people want to be involved and are motivated when they perceive they are making a difference. Consider solicit-ing your team’s input in the creation of best practices for various departments and the development of enhanced internal standards such as customer service practices, improved departmental efficiencies and enhanced health and safety practices. This involvement will send the message that they are important to your team and to the overall success of the business.

With time, these simple actions will assist in delivering an improved product to your customers and improve the retention of your best people.

Leverage the relationship with your advisorsFeeling a bit overwhelmed at the prospect of creating or overhauling your strategic plan? Not sure how to develop a robust forecasting tool for your business? Your advisor can help guide you through these processes. Consider scheduling monthly or quarterly meetings with your key business advisors and solicit their advice on best practices for financial modeling and strategic planning. They should be proac-tive in providing your executive or senior management team with the information they need to stabilize operations and to prosper in today’s challenging market.

With careful strategic planning and a proactive approach, businesses can find ways to control costs, maintain customer loyalty, improve employee retention and sustain profitability.

Fuller Landau hosts a complimentary seminar series designed to share strategies on how businesses can thrive in today’s economic environment. For more information or to register, email Brenda Hajdu at [email protected].

22 Profile

P

Your Recipe for Success.

Cintas is the industry expert, providing garments and accessories.Front-of-the-House

Once mostly behind the scenes, chefs and kitchen staff are more visible than ever with today’s open kitchens.• Uniforms for waitresses, waiters, bartenders, cocktail servers and more • Casual, formal, thematic, and custom uniforms

Back-of-the-House

Visible or not, Cintas uniforms, accessories, mats and other products promoteorder, hygiene and performance in the most important part of any restaurant.• Chefwear and food prep uniforms• Kitchen mats, anti-fatigue mats, soaps and sanitizers

With Cintas in the kitchen, you’ll be certain to send a positive message of credibility and professionalism.

For more information, contact Leslie Molin at 905.565.4841.

Best UniformSupplier

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Cintas Ad:Layout 1 2/13/09 8:52 AM Page 1

Retaining Your Competitive Edge

Retaining a competitive edge means more than keeping up on the latest décor and food trends. Your employ-ees—the face of your business—profoundly impact how

your business fares. Great staff will ensure your operation runs smoothly, bring about repeat business, and create positive word-of-mouth. On the other hand, employees who do not feel connect-ed to your operation will perform weakly and are likely to move on to a new establishment—but possibly not until after damaging your business’ reputation.

A certain amount of staff turnover is the norm in the tourism sec-tor, with a third of its workforce in the mobile 16 to 24 age demo-graphic and over half of its positions being seasonal. However, despite the current economic downturn, the tourism sector contin-ues to suffer from a shortage of labour in many areas across the country. This has meant an increase in the amount of turnover that owners and operators are seeing, and it is impacting the quality of service and the bottom line. The shortage means many operations are frequently in recruiting mode and service suffers from a lack of properly trained staff—or a lack of staff, period.

The cost of this turnover greatly impacts a business’ competitive-ness. Recruiting takes time, money, and energy. Expenses add up quickly when you consider the resources needed following the resignation or dismissal of an employee:

Administrative expenses related to the exit of an employee and •entry of a new hire Job advertising expenses•Management time involved in reviewing applications, inter-•viewing candidates and conducting reference checks Potential overtime costs for other staff while the position is •vacant Time and resources spent for orientation and training of the new •employee Supervisory disruption in orienting and training the new •employee Loss of productivity while the employee is on the learning •curve Errors that occur while the employee is learning•

*source: go2 HR Society

As some of these items indicate, the costs are not only finan-cial; besides disruptions and a loss of productivity, the morale at your operation takes a hit with each staff member who leaves. Turnover, even in moderation, will affect motivation, communica-tions, and confidence. Staff will not feel connected to a work-place where their colleagues come and go. They may not see their contributions as being important to the big picture and will not feel like part of a team. They will become stressed and resentful if they are required to take on additional responsibilities while positions go unfilled. The result will be further turnover, and if negative word-of-mouth gets out about working at your establish-ment, it will impact your attraction efforts as well. In addition, your customers will suffer from poor service, feel unwelcome, and not return—sharing their negative experience with others.

To limit turnover, nothing is as effective as investing in your employees. Employers of choice retain their people by providing a variety of incentives, such as good management practices, the adoption of new technology, providing opportunities for advance-ment, and accommodating work/life balance. One particularly successful way of investing in your staff is through training.

Numerous studies have indicated that employees value opportunities for continual learning and formal recognition from their employer. Employers are better able to retain quality staff by assisting them with expenses for furthering their formal education or in obtaining industry credentials or professional certification. By showing a willingness to invest in the professional develop-ment of their people, companies are reinforcing the principle that they value the needs of their staff. The reward for companies that embrace continual learning is staff who are not only better qualified and trained, but also more loyal and dedicated because their employer has tied their professional growth to the goals and ideals of the company.

By being proactive and supporting training and development on an ongoing basis, your employees will be able to work to their full potential and meet the changing demands of your customers. One of the first questions you need to ask is “has your business changed”? For example, if you’ve recently installed a point-of-sale program, upgraded your computer system, or introduced an

By The Canadian Tourism Human Resource Council

24 Profile

HELP WANTED

Retaining Your Competitive Edge

entirely new menu, training can make the transition easier for staff and customer alike. The best way to ensure employees are more accepting of change is to provide them with the assistance that allows them to succeed in the new environment.

Training may also come about not because of specific changes, but due to customer and staff feedback. Receiving complaints from customers or staff doesn’t necessarily indicate an employee is a lost cause and must go. Perhaps there is simply a deficiency that would be easily rectified with training. When errors or complaints are brought to your attention, analyze the problem to see if training might be a solution. You will get more buy-in from your employee if you engage them in identifying the specific skill deficiency and have them assist with the solution.

Once you have assessed and prioritized the need for training, the next step is to plan and deliver the training. A number of factors will help determine how you approach your training needs. Budget is a constant concern for operators, so ensuring that you choose the right type of training for the right employees is of paramount importance. Another decision is whether training should be deliv-ered on-the-job or externally, and be managed by internal or exter-nal staff. Everyone learns in different ways, so solicit feedback from your employees on what type of training would best suit them and encourage them to research training options. Self-directed or on-the-job training, such as the nationally-available emerit training tools, may be the best route for some, while others may prefer a formal classroom setting at a local training or educational institution. Online training is a particularly flexible option, as it enables students to choose the best time to study, based upon the demands of work and home. Off-peak hours can become the ideal time for employees to work towards completing modules for training or certification. Some employees might prefer to study at home, and in such cases, businesses can work with their employ-ees to determine what compensation is possible for time spent completing training.

Training can be costly, so you will want to assess its impact. However, sometimes its effect cannot simply be translated into bottom line dollars and cents. You may need to review why you

sought training to begin with and whether your concerns have been remedied. If the training was on customer service, the end result may be fewer customer complaints and/or an increase in sales. Training on a new computer may net less errors or quicker processing. Be sure to carefully analyze the particulars of the training need, and make sure you engage the right type of training when designing your training plan.

While you may need training for specific purposes, incorporating training that develops your employee towards a long-term ca-reer goal can help promote greater job satisfaction—and a more satisfied employee is likely to stay longer and be more produc-tive. If you have a performance appraisal program, it should cover not only your employee’s immediate training needs, but also the development required to groom your employee towards a career goal. This can include assigning a special project where your em-ployee learns a new skill, taking on acting responsibilities during another’s absence, or cross-training. Also consider certification programs geared toward their goals. Tourism Human Resource Organizations offer national and regional programs for customer service, responsible beverage service, management training, coaching, and emerit Professional Certification. These widely-recognized programs will increase professionalism and show you are invested in maximizing your employees’ skills.

All of these areas of training and development can promote greater job satisfaction while lessening unwanted turnover. Companies that follow these practices build work environments where people thrive and feel valued. You can never underestimate the power of positive word of mouth that employers of choice seem to inspire in their employees. When people speak glowingly about their employer, they leave a lasting impression on their friends and acquaintances who may one day be the very people seeking your organization out as their preferred work environment.

The Canadian Tourism Human Resource Council is Funded by the Government of Canada’s Sector Council Program.

Profile 25

By The Canadian Tourism Human Resource Council

P

SolutionsI n a world like ours today where technology is ever changing,

staying on top of equipment and software trends can be very challenging. So how do you go about choosing a system that

will expand with you and keep advancing and exceeding your growing needs? These are very important factors in starting a business that is planning the ability to move from a single store environment to a mid range chain to franchising your concept. The cheapest route is not necessarily the right way to go. You will end up having to change sup-pliers, equipment and a costly retraining of your staff in your present locations. The right Technology will empower you to better manage and grow your business.

Here are some important factors in choosing the right POS & technology that will take you into the future.A company that has a long track record servicing the Food Service industry is key. They must have a phone support department, with the ability to access your sites remotely. This will offer on the spot diagnosis and fixes. Good quality Hardware designed for the Hospital-ity industry with expandable features. The software must be upgrad-able and easy to use. It should be a world wide software that can

address all types of languages, taxes, have the ability to adapt to Table service, Bars, Quick Service & Delivery.

Where will your next concept take you? You may be a successful table service establishment while your next venture is in a Food court. These two business models act very differently and cater to a different clientele. The Table Service location should have Fast Touch POS terminals with the ability to have wireless handhelds for serving patios and granting managers fast access to menu items, sales data and alerts. Kitchen and bar printers are used to receive the orders from the fixed stations or handhelds. An integrated high speed credit and debit network is vital. You should be authorizing in 2 seconds. A wonderful dining experience can be ruined by a long wait for the settling of a credit/debit transaction. The use of finger-print readers will limit unauthorized staff signing in or voiding transactions.

In the quick service environment high labour turn over and low computer literacy is common; so it is critical that your POS system require little training to operate. In this environment POS stations will communicate to a Kitchen Video Display not a printer. The KVDU should flash if orders have exceeded their prep time for manager

intervention. The orders should only be in the prep area for a short time so there is no need for a hard copy. You may also need to communicate to a drive thru order confirmation board.

Customer Rear LCD displays should have the option to run advertising; ad space is Golden in a Food Court. Remember custom-ers eat with their eyes and a fast dining experience is a happy returning customer! Always make sure what you choose is adaptable in different environments.

Growing the business means you can not be in all places at the same time. Hav-ing the ability to view your various sites through a DVR camera surveillance system is vital. The DVR should have the ability to capture text insertion so that if a bartender serves two martinis and turns around and

By Andrea Thomas

Solutions

Tusch Seating Inc. www.tuschseating.com

Work

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For all occasions Tusch Seating

Calgary(403) 508-6115Vancouver(604) 727-4009

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enters two coffees on the POS, the video will capture coffee, coffee. Furthermore, you should be able to view your location from home or office via the web and also through your cell phone. As the chain grows you should be viewing multi sites on one screen. Inventory is extremely important and the cameras are vital for making sure your inventory is not being given away or walking out the back door!

Other mandatory features should include integrated customer loyalty programs, gift cards, house accounts, and integrated draft and liquor control systems for up to the minute spot checks.

Opening a restaurant in the 21st century is more challenging than it has ever been before. Custom-ers in today’s fast paced world rely on the internet as their primary source of information. They expect to be able to find a restaurant’s web-site, hours and driving directions, place a reservation, sign-up for an e-club and purchase a gift certificate - all in a few easy clicks. On-line ordering should also be seamlessly integrated into the restaurant’s POS system.

Your enterprise solution should allow you compre-hensive scheduled multi-store polling of all data available at all stores. This data can be messaged to alert key principal in the organization. Web enabled report generation is designed for key employees to keep their finger on the pulse. At the same time this allows for time sensitive menus to be sent to store location for consistency.

Choosing the right POS System from the start is vital to growth and success.

By Andrea Thomas

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Andrea Thomas is the head of Sales and Marketing for Teletec Systems Inc. She is the second generation in the company and has 25 years experience in the POS business. Andrea has an extensive background in both single store and multi store chain development environments. She can be reached at [email protected].

By David Gargaro

Coffee is a common element among almost all foodservice operations. And there is good reason for this fact. It is quite evident that coffee is a very popular beverage among

Canadian consumers. After all, there are coffee-focused establish-ments everywhere—from high-end cafés and corner coffee shops to nationwide franchises. As a result, restaurateurs must stay on top of coffee trends (as they do for food and beverage trends).

Coffee by the numbersThe statistics tell the true story. According to a study by the Coffee Association of Canada, more than 63% of Canadians over the age of 18 drink coffee every day, and 81% of Canadians drink coffee occasionally. This makes coffee the most popular beverage choice among adult Canadians. It is also important to note that 16% of all coffee (or one in every six cups of coffee) is consumed or purchased at an eating establishment.

Now consider the financial side of selling coffee. Suppose that you purchase one kilogram of organic French roast coffee for $40 (based on the cost of an actual bag of coffee from a Canadian coffee roasting company). One kilogram of coffee will produce about 120 cups of cof-fee. If you charge only $2.00 for a cup of coffee (which is quite modest for most restaurants), that’s a return of $240, or a profit of $200 (less sugar, milk, cream, etc.). Now you may have a better understanding of why coffee is so important to your restaurant’s bottom line.

Making a great cup of coffeeSammy Piccolo, currently running Caffé Artigiano, is one of Canada’s most prominent baristas. He is on the front line of coffee trends, and recognizes them when they occur. He is also well qualified in what it takes to make and serve a quality cup of coffee. “There is nothing worse than going to a restaurant that has horrible coffee. Unfortu-nately, that’s what most fine dining restaurants serve,” said Piccolo. “Customers often remember the last thing they receive, so if they end the meal with a horrible cup of coffee, it could ruin the memory of a great appetizer or main course.”

As a restaurateur, you are very familiar with what it takes to serve a quality dish—fresh ingredients, proper cooking technique, impeccable service. If you are going to stay on top of the latest coffee trends, then you first need to pay close attention to coffee basics:

The two main types of coffee beans are Arabica and Robusta, •and both come in several varieties (usually identified by country of origin or region). There are different methods of roasting coffee beans (e.g., French, •Vienna, Italian, American), and each results in different flavours and aromas.There are different types of grinds (coarse, medium, smooth), •resulting in different strengths. Each type of grind matches different types of brewing machines. A cup of coffee is 98% water, so water quality is key to coffee •quality. Always use freshly drawn cold water, preferably filtered through an activated carbon filter. The most common coffee style is drip-style (regular brewed) cof-•fee. Espresso, cappuccino, and caffe latte are also very popular.

offee is a common element among almost all foodservice offee is a common element among almost all foodservice The two main types of coffee beans are Arabica and Robusta, •

From the GROUND UPBy David GargaroBy David Gargaro

CCoffee is a common element among almost all foodservice offee is a common element among almost all foodservice offee is a common element among almost all foodservice offee is a common element among almost all foodservice The two main types of coffee beans are Arabica and Robusta, •

From the GROUND UP

28 Profile

Knowledge is key to providing your customers with a great cup of coffee. Know your customers to understand what they want in a cup of coffee, and stay on top of the latest coffee trends. “If you want to improve your coffee offerings, go to the best cafés in the city and see what coffee they are using,” advised Piccolo. “Call their coffee roaster to see if they offer training if you buy their coffee. If not, buy their coffee and try to get the café to train you, or look for an accomplished consultant. Try to use a local roaster with a good solid reputation. Also, hold your staff accountable to serve the best possible coffee.”

Coffee equipmentThe equipment is very important to the coffee-making process. You cannot make or serve good coffee without the proper tools. Choosing the right machine for your particular foodservice establishment is part of the process. There are a number of issues to consider:

Determine the size of the beverages you will be serving, as well •as how many will be produced per hour (during peak and non-peak times). This will help to determine the size and type of equipment you need.The equipment has to fit your budget. A high-end restaurant may •decide to spend more on equipment that is aesthetically pleasing. Higher price does not always mean higher quality.Pay attention to product quality and service. Check the supplier’s •references. Test the equipment yourself. Make sure that the supplier offers training in the use of the equipment and provides an adequate level of service (e.g., loaner units, parts are immediately available).

Deciding on what type of machine to purchase is often a matter of personal preference, as well as the nature of the business. Some restaurateurs may prefer the aesthetics of a manual/traditional coffee machine. It requires more training to operate the equipment, so they may hire a barista. Other establishments that rely on part-time help may opt for automatic equipment, which requires less training and knowledge to operate.

Saverio Cosenza, Technical Advisor with Saeco Ontario (supplier of Italian-made, professional-grade coffee machines), believes that the trend is moving back toward manual/traditional machines. “The past couple of years, the trend was leaning toward a fully automatic machine. However, people are starting to go back to basics and choosing the manual/traditional machine again. Most people in the coffee industry will tell you that manual/traditional machines will give you optimum results.”

The next trends in coffeeCoffee connoisseurs are becoming more fastidious about the qual-ity of the coffee they drink. They pay particular attention to the specific flavours of coffee beans from different parts of the world. This is why single-origin coffee is a growing trend among coffee drinkers. “Single-origin coffees are going to become very popular,” explained Piccolo. “Single-source coffee comes from a specific location or grow-ing region, like Colombia or Kenya. However, single-origin coffee comes from one specific estate or plantation with a specific growing region or country. Much like fine wines, single-origin coffees have very specific flavours, tastes, and aromas.”

Pairing specific coffees with specific foods (primarily desserts) is a growing coffee trend. Just as sommeliers have been suggesting wine and food pairings, baristas are now helping their customers to pair specific coffees and desserts. Different coffees have different acidity levels, flavours and aromas, so it makes sense to combine them with complementary foods. For example, Hawaiian Kona coffee pairs well with coffee cake, while Colombian coffee pairs well with carrot cake.

Piccolo added, “Chocolate and coffee work very well together. The flavours and aromas can be quite complementary. Pairing single-origin coffees with single-origin chocolate [chocolate made from beans from one region or estate] can create very interesting taste combinations.”

““Customers often remember the last thing they receive, so if they end the meal with a horrible cup of coffee, it could ruin the memory of a great appetizer or main course.

Knowledge is key to providing your customers with a great cup of

From the GROUND UP

Profile 29

Aroma SE100 Compact Approximately 150 coffees / Hr.

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13 L Boiler

Coffee-based franchises have helped to expand the palates of coffee consumers, and are often on the front line of the latest trends. More recently, flavoured coffees have become all the rage. James Zanet, VP Sales of Gerhards Importers Canada (distributor of Monin syrups), agrees that flavoured coffees are on the rise. “Certain flavours are mainstays, such as vanilla, chocolate, and hazelnut. However, many coffee houses are adding seasonal and holiday flavours, like peppermint candy,” said Zanet. “I also see a lot of growth in sugar-free flavoured coffees, since people are becoming more concerned about their health. There is also a growing trend toward natural flavours and organic offerings, such as agave or green tea.”

Another growing trend involves roasting and grinding the coffee beans in-house. There is increasing interest in freshness and home-grown ingredients, which has spread to other areas of the foodservice industry—including coffee. Cosenza said, “I’m a firm believer in freshly roasted coffee to guarantee quality and freshness. Over the last couple of years, many cafés have implemented roasting their own coffee with great success. The other alternative is buying freshly roasted coffee from a local roaster, which will save time.”

There is also the added benefit of being able to serve custom and house blends that cannot be found anywhere else. Piccolo added, “More restaurants and cafés will turn to serving custom blends, if they have not already done so. Offering a house blend is a great way to differenti-ate your coffee. Just make sure that you go with a great local roaster with a solid reputation.”

““If you want to improve your coffee offerings, go to the best cafés in the city and see what coffee they are using.

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Cintas Chem Ad:Layout 1 2/13/09 8:51 AM Page 1

T here is a tremendous “Back to Basics” movement happening in bars and restaurants across the

nation as operators realize that staying profit-able in an increasingly challenging economic environment requires an arsenal of weapons, including great food, great beverages, great marketing all working towards the same goal. Staying on top of the trends and up to speed with current lingo is another way to make sure that your ideas are portrayed as fresh and original. It seems like with each chang-ing season, we embrace a new catch phrase; from corkage to gastropub, fusion cooking to bottle service, deconstructions, bitters, go-ing green, antioxidants, probiotics and now molecular mixology. Bartenders are no longer bartenders, they are mixologists; and yester-day’s mixologists, the people who really took the craft seriously, need a way to differenti-ate themselves from the mainstream. Many of these mixologists followed in the foot-steps of our culinary brethren, we have finally arrived at the latest buzzword and title for those who are truly committed to beverage excellence...Bar Chef.

The hallmarks of a good Bar Chef are their commitment to fresh, hand crafted ingredients and infusions, and consistent experimentation. Fresh ingredients make great cocktails. While pop guns and towers are certainly convenient, their cost effective-ness days are numbered. Post mix syrup, is

made up of 80%-90% corn syrup, and with global demand for ethanol (a corn based alternative fuel) continues to rise at an un-precedented rate, the days of fountain soda are numbered. With cost effectiveness in question and real quality benefits to using fresh squeezed juices, the choice is really simple. If you need more convincing, find a local bar chef and compare your fluorescent green amaretto sour to their version made with fresh lime, simple syrup, bitters and egg white. There is no comparison.

There is also another massive trend toward the use of bitters in the cocktail bar. If you don’t know what bitters are, don’t worry you’re not alone. Bitters are and alcoholic ingredient created with herbs and citrus used to flavour cocktails or as a digestif. Pre-pro-hibition, bitters were an essential ingredient in most cocktails, and while aromatic bitters are commonplace in Europe and US, Canada has certainly been slow to catch on to this trend. Logically the presence of bitters in a well made cocktail makes plenty of sense. Your tongue has sweet, sour, salty, and bitter receptors. If a drink has sweet and sour com-ponents, it hits two receptors and gives you a sensory experience. If you include salty, as in the case of a Bloody Caesar, or Mar-garita, a more intense sensory experience occurs. Finally if you add Bitters, you now have a sensory experience that hits virtually every part of the palate and the taste experi-

ence is heightened to a new sensory level. Angostura bitters are certainly the most available bitters, Peychauds has more of a red fruit taste, while Fee Brothers, Stir-rings and Regan’s also make a wide range of bitters for cocktail applications.

Of course balance in any cocktail is essential. A good bar chef will tip a straw to test a cock-tail before serving it to make sure it’s properly constructed and balanced. If a drink is too sweet or sour, finite adjustments are made before the drink is served. Although few peo-ple would complain about a drink that had too much alcohol in it, operators feel the pinch of over pouring or “spillage” at month end. Some bars choose elaborate liquor control systems, costing thousands of dollars which can manage the dispensing of spirits and li-queurs, but limit the bartender’s ability to add small amounts of an ingredient to a cocktail. Most establishments use free pouring spouts and shot glasses or jigger measures, but in the hands of an inexperienced bartender, these can be the least accurate methods of cocktail creation. With most establishments running average liquor cost between 19 and 21 percent, it’s amazing how the smallest oversights can alter these goals, essentially pouring your profits down the drain. There are literally dozens of pour spouts available, at very least make sure that you have only one kind of pour spout on your entire bar, rather than a mashup of different styles and colours.

The Bar Prophet on Spirits

32 Profile

The Bar Prophet on Spirits

Too often bars will buy based on what is urgent and available rather than what will do the best job. Saving a buck or two now, may end up costing many more dollars down the road. Tried tested and true is the metal Spill Stop 285-50 pourer which can be found for less than two dollars per spout. If your bar dispenses on average 100 well brand ounces per day, and loses an eighth of an ounce due to leakage or overpour, the loss at year end is $23800! If you have 100 bottles behind your bar, a $200 investment in quality pour spouts will pay 119:1 return on your investment!

There has been a tremendous buzz in the bar-tending world for the past year regarding the term “Molecular Mixology.” While the name itself can be a little intimidating, Molecular Mixology can be distilled down into one fun-damental distinction. It is simply the process of changing the state of a liquid into a solid or gas. Eben Freeman of New York City’s Tailor, is leading the curve, and his drinks are serv-ing as a benchmark to bartenders wishing to jump aboard the molecular bandwagon. Freeman created the Mojito of the future for Bacardi with the use of culinary techniques like blanching, and ingredients like Xantham Gum and Liquid Nitrogen to alter liquids into suspended solids. The alteration of texture is quickly becoming one of the most common ways that molecular mixologists are adding the shock and awe into their cocktails, and taking new twists on old classics.

Spherification is a technique originally created by Ferran Adrià of El Bulli Restau-rant in Spain, is being used by bartenders to create tiny spheres of flavour to incorporate into a drink. Have you ever heard the phrase ‘cocktail caviar’, or ‘cocktail ravioli’’ Here’s one of the ways it’s done. To start, your fla-vour, whether it be a complete cocktail or a juice puree is mixed with Sodium Alginate, a gum used to increase the viscosity of the mix-ture. From here, the mixture is dropped into a calcium chloride and water bath, which gels, or forms a ‘skin’ on the outside of your mix-ture. The gel is then rinsed with water, and it’s ready to consume. The outside remains firm, but the inside of your gel remains liquid, providing a burst of flavour when consumed. Foams, mists and brulés are among other mo-lecular techniques being used by Bar Chefs to raise eyebrows and cheque averages. The bottom line is that broad execution of molecular mixology may not be practical in your bar, but having one drink with a hand made foam top or caviar sidecar, might just create the buzz you’ve been looking for.

Finally, while the economy has taken the front seat, the environmental movement is at the definitely fresh in public conscience, more and more bars are making an effort to go green with their daily business prac-tices. I’m sure you’ve heard all the popular catch phases, like “renewable energy,” “neu-tral carbon footprint” and the uber popular

“green is the new black.” So what does this have to do with operating my restaurant or bar you ask?

It starts with the understanding that operat-ing a sustainable bar or restaurant is easier than you think, not to mention the opportu-nities to both save money and increase mar-gins. Making each business decision with the environment in mind is rewarding in many ways; socially, economically and environmen-tally. When you look at your business’ carbon footprint it gets broken down into two parts, a primary and secondary footprint. The primary footprint is the sum of the direct carbon diox-ide emissions of burning of fossil fuels, like energy consumption by furnaces and waters heaters, and transportation, like automobiles to get to work. The secondary footprint is the sum of indirect emissions associated with the manufacture, shipping and breakdown of all products, services and food that your business consumes.

First of all, it’s important to identify the difference between a green cocktail and the absurdity of the healthy cocktail. Green cock-tails are made from ingredients produced by environmentally conscious manufacturers, sometimes using organic methodology or ingredients. This doesn’t make drinking alco-hol healthy... after all cocktails are supposed to be a little bit naughty anyways.

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Fresh, seasonal, local and sustainable are really just a part of a much larger picture, that involves every business decision you make, from the light bulbs you choose, (there are now dimmable Compact Fluo-rescent Light bulbs which use up to 75% less energy and can create ambiance) to the cleaning products you use, and how you separate your waste. Here are some things you might consider when develop-ing your next menu or considering a new supplier.

Local means supporting business within 100kms, making a decision against importing bottled water from the other side of the world when the largest supply of clean fresh water on the planet is at your door-step. Developing relationships with the folks at your local farmers market can inspire on both culinary and beverage fronts.

Seasonal ingredients is about using peaches on your menu when peaches are in season locally, not when peaches are in season in Argentina. When your chef is making Peach Cobbler, your bartenders, who should be thinking about themselves as Bar Chefs, should be making Peach Daiquiris, or peach Mojitos.

Sustainable do your ingredients come in heavy plastic vac-pacs or is your supplier looking towards more environmentally sensitive packag-ing? Are the producers mindful of the effects their current businesses will have on future generations?

Fresh goes hand in hand with local. Locally produced and consumed goods don’t have to have the same number of hormones or additives, leading to healthier end products, not to mention a smorgasbord of other environmental side effects which result from the use of preser-vatives to ship your peaches in from Madagascar.

Going the sustainable route is not the easiest, but it is becoming increasingly accessible. Businesses that make the commitment can expect to be rewarded with a loyal clientele. The feel good “X” factor of supporting a green business is something that will have your clients talking to their friends, and your commitment to excellence will bring them back again and again in larger numbers. Fresh, local, seasonal, sustainable can no longer be looked at as options, but rather as the business decisions that make our restaurants and bars sustainable businesses as we move into a new economic environment.

As operators, managers, and staff, we have the ultimate power to choose what is offered for sale, how it is offered for sale, and how we’re going to clean it up. While many of us diligently separate food waste, from recyclables and garbage at home, few of us pursue these socially responsible actions with the same vigour when we’re work-ing in the hospitality industry. I’ve been guilty of it myself and I’m sure you can relate to the feeling that you should recycle an empty water bottle but when no recycling bin is present, it ends up in the trash. While many of us want to recycle, few of us have taken proactive steps towards putting a recycling / food waste program in place.

All trends considered, when all is said and done, it’s important that we don’t lose site of what’s important. While surviving in the short term may be urgent and important, long term success is assured by a commitment to providing a great product at a fair price, keeping in mind that mother nature deserves our attention regardless of what’s going on with the economy. The truth is that respecting the planet and making money do not have to be mutually exclusive. After all, we don’t really need to “Save the Environment,” it was fine before we were here, and it’ll heal itself after we’re gone. We really need to save ourselves.

Gavin MacMillan is a master mixologist and beverage consultant, and is the Director of Operations at Bartender One. He is an award winning flair bartender, bestselling author, and widely regarded as one of Canada’s leading authorities on cocktails and mixology.

All trends considered, when all is said and done, it’s important that we don’t lose site of what’s important. While surviving in the short term may be urgent and important, long term success is assured by

we don’t really need to “Save the Environment,” it was fine before we were here, and it’ll heal itself after we’re gone. We really need to save ourselves.

34 Profile

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At Teletec Systems Inc. we know restaurants and we know POS.We know an efficient kitchen is key to the success of your business…and an efficient POS System is key to the success of yourkitchen. With a Restaurant Manager POS System from Teletec you’ll get the tools you need to keep your kitchen humming, including:

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