washington restaurant magazine september issue

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MEGA TRENDS ISSUE:

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September 2012 | 5

InsideFeatures16 Good food, good times, good health: Washington’s restaurants

show you can have it allFind out what Washington restaurateurs are doing to meet the needs of increasingly health-conscious diners. Are they taking steps that you could integrate into your own operation?

20 Washington escapes 2012 drought, but not its impactYou’ve seen lots of media coverage on how drought is affecting food supply across the country, but do you know what it means for Washington’s restaurant industry?

22 ERNWest is proud to serve the WRAThe WRA is pleased to welcome a new Retro claims management team on board. Get to know ERNWest and what they plan to do on your behalf.

www.warestaurant.org

On the coverWe already know that consumers have become more health-focused, a fact which plays into all of their lifestyle decisions. Is your restaurant prepared to help them make the choice easier? This issue of Washington Restaurant Magazine can help.

RESTAURANTW A S H I N G T O N

M A G A Z I N E

September 2012

MEGA TRENDS ISSUE:

HEALTHYDINING

Septemer_2012.indd 1 8/28/2012 3:05:16 PM

Other stories6 Healthy dining resources for restaurants and customers

7 News Briefs

9 Getting ahead of the game in the public health debate

10 WRA highlights 2012 state and legislative races

14 Healthy menu options

22 ERNWest is proud to serve the WRA

23 Focus on locally sourced products extends to the supply chain

24 The war on soda: Today New York, tomorrow the Northwest?

26 Calendar/New Members

28 Marketplace

30 Price healthy menu items strategically

16

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6 | www.warestaurant.org

EDITORIAL STAFFAnthony Anton, PublisherLex Nepomuceno, Executive EditorHeather Donahoe, Managing EditorShawn Sullivan, Contributing EditorSheryl Jackson, Research EditorLisa Ellefson, Art Director

WRA EXECUTIVE COMMITTEEJim Rowe, Vice ChairConsolidated RestaurantsBret Stewart, Immediate Past ChairCenter TwistRobert Bonina, Secretary/TreasurerWashington Athletic ClubNancy Swanger, WRAEF PresidentWSU

WRA EXECUTIVE TEAMAnthony AntonPresident and CEOTeran PetrinaVice PresidentBruce BeckettDirector of Government AffairsLex NepomucenoDirector of Communications & TechnologyLyle HildahlDirector of Education

Victoria OlsonDirector of Business DevelopmentSusan HoweDirector of Internal Operations

510 Plum St. SE, Ste. 200Olympia, WA 98501-1587T 360.956.7279 | F 360.357.9232www.warestaurant.com

Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

Reproduction of articles appearing in Washington Restaurant Magazine are authorized for personal use only, with credit given to Washington Restaurant Magazine and/or the Washington Restaurant Association.

Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, its Board of Directors, staff or members.

Products and services advertised in Washington Restaurant Magazine are not necessarily endorsed by the WRA, and do not necessarily reflect the opinions of the WRA, its Board of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO:Ken WellsAllied Relations Manager [email protected]

Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: [email protected],phone: 800.225.7166. Circulation: 6,310.

Healthy dining resources for restaurants and customersBy Lex Nepomuceno, Executive Editor

It’s no surprise that with rising health care costs, restaurants across the country have seen an increase in demand for healthy food options. Trends related to allergies, diabetes and heart disease have created an increasing focus on low-carb ingredients, gluten free options and low fat menu alternatives. Healthy dining options are no longer a “customer service”; it has become a profit generator and an important way to attract and retain customers.

To address the growing health trend, a number of online resources have popped up to assist restaurateurs and customers. The restaurant industry and other groups worked together on the creation of HealthyDiningFinder.com, which was partially funded by the US Centers of Disease Control. The site allows consumers to find healthy menu items at more than 70,000 participating restaurants across the United States. Establishments found in HealthyDiningFinder.com must meet the “Healthy Dining criteria,” which means accepted menu items must be reviewed by the site’s team of dieticians. Food items must “emphasize lean proteins, fruits, vegetables, whole grains and unsaturated fats and meet calorie, fat and saturated fat criteria.”

The Healthy Dining Finder website also includes other helpful resources such as “Ask our dieticians” and a robust search feature. Interested WRA members can go to HealthyDiningFinder.com and select the “Restaurant partners” section.

The restaurant industry has also worked extensively with public health and government officials, nutritional experts and other organizations regarding the ChooseMyPlate.gov website. The site provides practical information to individuals, health professionals, nutrition educators and the food industry to help consumers build healthier diets with resources and tools for dietary assessment, nutrition education and other user-friendly nutritional information.

The American Heart Association has put together the Dining Out Nutrition Center, which provides guidance on choosing a restaurant, ordering meals and tips by cuisine type. The online resource even provides guidance on “Deciphering the Menu” and “Eating Fast Food.” The site can be found at http://wra.cc/ahadining. Additionally, three organizations have partnered with the restaurant industry through the National Restaurant Association (NRA) to provide tools related to nutrition information about menu items. 1) MenuCalc provides nutrition-analysis software; 2) Healthy Dining Finder provides nutrition consultation and analysis with nutrition professionals and dietitians; and 3) Silliker provides lab, technical and information services to help restaurant operators plan and analyze menu options and comply with menu-labeling rules.

Finally, for restaurant operators interested in providing more healthy dining options, the NRA has put together a helpful guide, “Healthful Dining Tips: Suggestions for healthful menu options.” The guide is targeted at consumers, but provides some great direction on how restaurants can tailor their menus to promote healthy dining. The publication can be downloaded at http://wra.cc/healthful12.

Although many of the aforementioned sites target consumers, they provide valuable insights on what restaurants can do to better serve their customers’ increasing demand for healthy menu options. Be sure to check www.warestaruant.org for new resources as they are launched at the state and national levels.


September 2012 | 7

Primary Source of Information | News Briefs

WRA launches redesigned website and changes from “wrahome.com” to “warestaurant.org”

After Labor Day, the Washington Restaurant Association officially launched its newly redesigned website under the web address warestaurant.org. The old wrahome.com address will still continue to work, but will automatically redirect users to the new site.All of the content from the original site has been completely migrated over to the new site, which takes advantage of some significant technology advancements,

including HTML5 and Wordpress Multisite. The new site comes with a more robust and scalable user management system that allows for WRA members to use the same login to access different shopping carts and web assets.The new warestaurant.org website has been redesigned to help make it easier for members to find and easily use industry news and information. The site uses “responsive design” coding techniques to provide optimum experiences for mobile, desktop and tablet users.

For more information, contact [email protected]. To check out the new site, go to www.warestaurant.org.

WRA members invited to special McKenna reception on September 25The Washington Restaurant Association will be holding the Rob McKenna Fundraising Reception on Tuesday, September 25 at El Gaucho Bellevue (450 108th Ave. NE, Bellevue, WA 98004) following a Government Affairs Committee meeting. The GAC meeting will take place from 1:30 – 3:30 p.m.; the McKenna reception will take place from 3:30 – 4:30 p.m. There is a suggested minimum contribution of $250 for the event. The Attorney General was endorsed by WRA in April. To RSVP, or for more information, contact [email protected], or call 360.956.7279.

Wage-and-hour lawsuits reach record numbers More than 7,000 wage-and-hour lawsuits were filed in federal courts during the year that ended March 31 — a record high, according to a national law firm’s analysis of court data from the Federal Judicial Center. The recent activity represents a huge jump over the roughly 1,500 FLSA suits filed in the 1993 reporting year, said the law firm. For the full article, go to http://wra.cc/wra081012a.

Seattle Times: ”The private sale of liquor in Washington is working”The privatization of liquor sales is working out better than expected nearly a year

after the passage of Initiative 1183, according to Seattle Times editorial columnist Bruce Ramsey.

“Before liquor privatization, state stores had a tested compliance rate of 94 percent, while private stores selling beer and wine had a rate in the 70s,” writes Ramsey. “But the liquor board has just tested the new retailers, and the compliance rate in July was 92 percent.”

To read the entire article, go to http://wra.cc/seatimes081512.

Low voter turnout for Washington’s primary election yields challenges and some takeawaysWashington State’s primary election to decide the top two candidates for November’s general election ballot was predicted to have a turnout into the high 40 percentile; that did not happen. The voter turnout was much lower than projected, making the primary’s results less of an indicator of general election performance than usual. The opportunity to vote for a presidential candidate and several high profile initiatives appearing on the November ballot may very well dramatically impact the amount of voters casting their ballots in November, meaning each candidate has to run a very competitive race from now to November to secure a victory. All this said, here are a few things we do know from Tuesday’s primary results… For the rest of this article, go to http://wra.cc/waprimary12.

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September 2012 | 9

Industry Outlook | WRA President & CEO

New York is banning over 16 ounce drinks.

Regulators are hosting national conventions on the topic of sodium in restaurants.

Cities in California ban toys in “unhealthy” kids’ meals.

Nineteen states or local jurisdictions and the federal government have required menu labeling in multi-unit restaurants.

The most frustrating thing about these recent headlines we have seen in the media is that not only do none of these proposed solutions help small business meet its challenges, but none them, in my opinion, will actually help the country turn around its obesity crisis. (As of 2011, one-third of U.S. citizens are obese.)

There is no doubt that similar headlines will greatly increase over the next five years unless the public begins believing there are, in fact, healthy choices in restaurants.

In the effort to jump start a pro-active vision, the WRA began work on a pilot project that combined many of the strengths of the association – cooperation, industry connections, ProStart and industry knowledge – into something that will actually work inside a restaurant.

This month we launched “Healthy Meals, Happy Kids” in South Pierce County. Saying we launched it this month really understates the two years worth of work and strategy that has gone into this unique project, but the brass tax of the concept is as follows.

In 2010, a partnership of health officials, MultiCare and the WRA education foundation began laying out a vision of how to get healthy kids’ meals into restaurants.

The hurdles were significant, but the biggest one was how to get kids to want to choose the healthy meals over their traditional favorites. Having a 10 year old myself, I can’t tell you how many frustrating moments I have had with my son convincing him to eat something that “looks weird” or is different. If it were up to him, he would eat nothing but hot dogs or macaroni and cheese.

In order to leap this hurdle, we needed to turn to kids. So in 2011, we asked the ProStart program at Lakes High School to develop creative healthy kids’ meals. We worked with

Getting ahead of the game in the public health debateBy Anthony Anton Anthony Anton,

president and CEO

surrounding elementary schools, which allowed their students to be our taste testers.

The ingenious one-day-chefs in our high school culinary program quickly improved upon the adults’ original plans. Creative entrées were not the key to leaping the hurdle of getting kids to choose healthy meals. Rather, is the magic formula was taking foods kids already like, and altering them to make them healthy, but still great tasting.

Around 60 kids in the class challenged each other to come up with healthy versions of chicken fingers, pizza, quesadillas and sliders with the assistance of a nutritionist from MultiCare and professional chefs. The elementary school students selected their favorites and we now had a four item healthy kids’ menu.

Farrelli’s Gourmet Wood Fire Pizza; The Ram Restaurant, in Lakewood; Carrs Restaurants and Burs Restaurant, all close to Lakes High School, agreed to carry the items in September.

The Tacoma News Tribune agreed to join the partnership and is donating thousands of dollars in advertising to promote these four restaurants and the program.

The program is being recognized nationally. The National Restaurant Association board has invited the kids to come to its meeting in Washington, D.C., to prepare their entrees for the group.

Results and lessons from the “Health Meals, Happy Kids” promotion will be organized, analyzed and carried forward with the hope of making a program that is portable to the other ProStart programs and communities around the state.

The hope is to create successes on several levels: � Finding a recipe so restaurants can SUCCESSFULLY carry healthy entrees for kids,

� Beginning to train the next generation of chefs to prepare food for health as well as taste,

� Connecting local industry with kids interested in the restaurant business, and

� Sending a strong message to the public that the restaurant industry is committed to finding solutions to the obesity crisis.

Perhaps the success for which I am most hopeful is that the WRA can meet its mission to “Help Our Members Succeed” by being proactive and laying out a positive path for restaurants, thus avoiding a negative public policy discussion altogether.


Legislative District 1SenateRosemary McAuliffe Dawn McCravey (R)

House(D)Derek Stanford (D) WRA EndorsedSandy Guinn (R)

Luis Moscoso (D)Mark T. Davies (NP)

Legislative District 2SenateRandi Becker (R) WRA EndorsedBruce L. Lachney (D)

HouseGary Alexander (R) WRA EndorsedGreg Hartman (D)

J.T. Wilcox (R) WRA Endorsed

Legislative District 3SenateAndy Billig (D) WRA EndorsedNancy McLaughlin (R)

HouseMarcus Riccelli (D)Tim Benn (D)

Timm OrmsbyDave White (R)

Legislative District 4SenateMike Padden (R) WRA Endorsed

HouseLarry Crouse (R) WRA Endorsed Matt Shea (R) WRA EndorsedAmy C. Biviano (D)

Legislative District 5SenateMark Mullet (D) WRA EndorsedBrad Toft (R)

HouseJay Rodne (R)

Chad Magendanz (R) WRA EndorsedDavid Spring (D)

Legislative District 6HouseKevin Parker (R) WRA Endorsed

Dennis Dellwo (D)Jeff Holy (R)

Legislative District 7HouseShelly Short (R) WRA Endorsed

Joel Kretz (R) WRA EndorsedRobert (Bob) Wilson (R)

Legislative District 8HouseJay Clough (D)Brad Klippert (R) WRA Endorsed

Larry Haler(R) WRA EndorsedRichard Reuther (D)

Legislative District 9SenateMark G. Schoesler (R) WRA Endorsed

HouseSusan Fagan (R) WRA Endorsed

Joe Schmick (R) WRA Endorsed

Legislative District 10SenateBarbara Bailey (R)Mary Margaret Haugen (D) WRA Endorsed

HouseNorma Smith (R) WRA EndorsedAaron Simpson (D)

Dave Hayes (R) WRA EndorsedTom Riggs (D)

Legislative District 11SenateBob Hasegawa (D)Kristin Thompson (R) House Zack Hudgins (D)Jim Flynn

Steve Bergquist (D)Sarah Sanoy-Wright (R)

Legislative District 12SenateLinda Evans Parlette (R) WRA Endorsed

HouseCary Condotta (R) WRA EndorsedStan Morse (R)

Mike Armstrong (R) WRA EndorsedBrad Hawkins (R)

Legislative District 13HouseJudy Warnick (R) WRA Endorsed

Matt Manweller (R) WRA EndorsedKaj Selmann (D)

Washington Restaurant Association highlights 2012 state and legislative racesThis year, half of the Senate seats and all of the House seats are up for election. Last month, voters approved the following candidates to advance to the general election. Below are the legislative candidates that will appear on the ballot November 6 and the candidates WRA members endorsed for the primary election. WRA members will choose which candidates to endorse for the general election later this month.

September 2012 | 11

Legislative District 14SenateCurtis King (R) WRA Endorsed

HouseNorm Johnson (R) WRA EndorsedPaul Spencer (D)

Charles Ross (R) WRA Endorsed Mathew K.M. Tomaskin (D)

Legislative District 15HouseBruce Chandler (R) WRA Endorsed David V. Taylor (R) WRA EndorsedPablo Gonzalez (D)

Legislative District 16SenateMike Hewitt (R) WRA EndorsedScott Nettles (D)

HouseMaureen Walsh (R) WRA EndorsedMary Ruth Edwards (R)

Terry R. Nealey (R) WRA Endorsed

Legislative District 17SenateDon Benton (R) WRA EndorsedTim Probst (D)

HouseMonica Stonier (D)Julie Olson (R) WRA Endorsed Paul Harris (R) WRA EndorsedJim Gizzi (D)

Legislative District 18SenateAnn Rivers (R) WRA EndorsedRalph Schmidt (D)

HouseBrandon Vick (R) WRA Endorsed Adrian E. Cortes (D)

Liz Pike (R) WRA EndorsedDavid Shehorn (D)

Legislative District 19SenateBrian Hatfield (D) Rick Winsman (R) HouseDean Takko (D) WRA EndorsedDixie Kolditz (R)

Brian E. Blake (D) WRA EndorsedTim Sutinen (I)

Legislative District 20SenateDan Swecker (R) WRA Endorsed John E. Braun (R)

HouseRichard DeBolt (R) WRA Endorsed

Ed Orcutt (R) WRA EndorsedJohn Morgan (R)

Legislative District 21HouseMary Helen Roberts (D)

Marko Liias (D)Kevin Morrison (R)

Legislative District 22SenateKaren Fraser (D)

HouseChris Reykdal (D)Sam Hunt (D) WRA Endorsed

Legislative District 23SenateChristine Rolfes (D) Bret A. Treadwell (R)

HouseSherry V. Appleton (D)Tony Stephens (R)

Drew Hansen (D)James M. Olsen (R)

Legislative District 24SenateJim Hargrove (D) WRA Endorsed Larry Carter (I)

HouseKevin Van De Wege (D)Craig Durgan (NP)

Steve Tharinger (D)Steve Gale (R)

Legislative District 25SenateBruce Dammeier (R) WRA EndorsedEric Herde (D)

HouseDawn Morrell (D)Shelly Schlumpf (R) WRA Endorsed

Hans Zeiger (R) WRA Endorsed Bill Hilton (D)


Legislative District 26HouseJan Angel (R) WRA EndorsedKarin Ashabraner (D)

Larry Seaquist (D) WRA EndorsedDoug Richards (R)

Legislative District 27SenateJeannie Darneille (D) John R. (Jack) Connelly (D)

HouseLaurie Jinkins (D) Steven T. Cook (R)

Jake Fey (D) WRA EndorsedLauren Walker (D)

Legislative District 28SenateMike Carrell (R) WRA EndorsedYoshie Wong (D)

HouseSteve O’Ban (R) WRA EndorsedEric Choiniere (D)

Tami Green (D)Paul Wagemann (R) WRA Endorsed

Legislative District 29HouseDavid Sawyer (D)Terry Harder (R)

Steve Kirby (D) WRA Endorsed

Legislative District 30HouaeLinda Kochmar (R)Roger Flygare (D)

Katrina Asay (R) WRA EndorsedRoger Freeman (D)

Legislative District 31HouseCathy Dahlquist (R) WRA EndorsedBrian L. Gunn (D)

Christopher Hurst (D) WRA EndorsedLisa Connors (R)

Legislative District 32HouseCindy Ryu (D) WRA EndorsedRandy J. Hayden (R)

Ruth Kagi (D) WRA EndorsedRobert Reedy (R)

Legislative District 33HouseTina Orwall (D) WRA EndorsedWill Benge (R)

Dave Upthegrove (D)Martin Metz (R)

Legislative District 34HouseEileen L. Cody (D) WRA EndorsedWilliam Giammarese (D)

Joe Fitzgibbon (D)

Legislative District 35HouseKathy Haigh (D)Dan Griffey (R)

Drew C. MacEwen (R) WRA EndorsedLynda Ring-Erickson (D)

Legislative District 36HouseReuven Carlyle (D) WRA Endorsed Leslie Klein (R)

Gael Tarleton (D)Noel Christina Frame (D)

Legislative District 37HouseSharon Tomiko Santos (D) WRA Endorsed

Eric Pettigrew (D) WRA EndorsedTamra Smilanich (NP)

Legislative District 38HouseJohn McCoy (D) WRA EndorsedSam Wilson (R)

Mike Sells (D) WRA EndorsedMichael Casey (R)

Legislative District 39SenateKirk Pearson (R) WRA Endorsed Scott Olson (D)

HouseDan Kristiansen (R) WRA EndorsedLinda Wright (D)

Eleanor Walters (D)Elizabeth Scott (R)

Legislative District 40SenateKevin Ranker (D) WRA EndorsedJohn Swapp (R)

HouseKristine Lytton (D)Brandon Robinson (R)

Jeff Morris (D) WRA EndorsedHoward A. Pellett (G)

Legislative District 41SenateSteve Litzow (R) WRA EndorsedMaureen Judge (D)

HouseMarcie Maxwell (D)Tim Eaves (R)

Judy Clibborn (D) WRA Endorsed

September 2012 | 13

Legislative District 42HouseJason Overstreet (R) WRA EndorsedNatalie McClendon (D)

Vincent Buys (R) WRA EndorsedMatthew Krogh (D)

Legislative District 43HouseJamie Pedersen (D) WRA Endorsed

Frank Chopp (D) WRA EndorsedKshama Sawant (NP)

Legislative District 44HouseHans Dunshee (D)Mark Harmsworth (R) WRA Endorsed

Mike Hope (R) WRA EndorsedMary McNaughton (D)

Legislative District 45Roger Goodman (D)Joel Hussey (R) WRA Endorsed Larry Springer (D) WRA EndorsedJim Thatcher (R)

Legislative District 46SenateDavid Frockt (D) WRA Endorsed

HouseGerry Pollet (D)Sylvester Cann (D) WRA Endorsed

Jessyn Farrell (D)Sarajane Siegfriedt (D)

Legislative District 47HouseMark Hargrove (R) WRA EndorsedBud Sizemore (D)

Pat Sullivan (D) WRA EndorsedAndy Massagli (R)

Legislative District 48HouseRoss Hunter (R) WRA EndorsedBill Hirt (R)

Cyrus Habib (D) WRA EndorsedHank Myers (R)

Legislative District 49SenateAnnette Cleveland (D) Eileen Qutub (R)

House Sharon Wylie (D) WRA EndorsedDebbie Peterson (R)

Jim Moeller (D) WRA EndorsedCarolyn Crain (R)

We encourage you to review this list for the candidates in your district who are endorsed by the WRA. We support those candidates who have demonstrated a keen understanding of business needs during their campaigns and/or previous time in office. Please don’t hesitate to contact your WRA GA team at 800.225.7166 if you have any questions.. And, most importantly, VOTE.

GovernorJay Inslee (D)Rob McKenna (R) WRA Endorsed Lt. GovernorBrad Owen (D) WRA EndorsedBill Finkbeiner (R) Secretary of State Kim Wyman (R)Kathleen Drew (D) State TreasurerJim McIntire (D)Sharon Hanek (R) State AuditorJames Watkins (R)Troy Kelley (D) Attorney GeneralBob Ferguson (D)Reagan Dunn (R) WRA Endorsed Commissioner of Public Lands Peter J. Goldmark (D)Clint Didier (R) Superintendent of Public InstructionRandy I. Dorn WRA Endorsed

Insurance CommissionerMike Kreidler (D)John R. Adams (R)


Providing healthy menu options for their guests is something all Washington restaurants want. According to WRA members when asked what percentage of their menu is considered to be a health food option, the breakout is shown to the right. For full service operators, of their total menu 32 percent is considered to be a healthy option, two points more than a previous survey.

Washington operators increased their focus on locally sourced or organically grown foods. This is more prevalent with full service restaurants where 61 percent have increased their focus compared to 23 percent of quick/limited operators.

Purchasing locally does have an affect on food costs. Eleven percent of full service operators stated their food costs increased by over 10 percent, 39 percent stated their food costs increased from between 0 to 11 percent and 46 percent stated there is no change.

These and other questions are asked in WRA’s biennium Compensation, Benefits and menu survey. Look for your chance to participate this fall!

23%

61%

Quick/ Limited Service

Full Service

29%

30%

30%

31%

31%

32%

32%

2008 2010

30%

32%

Full Service

46%

39%

11%

0% 10% 20% 30% 40% 50%

Stayed the same

Increased 0 to 10%

Increased over 10%

Full Service

Healthy menu optionsBy Sheryl Jackson, director of information services

Source: 2010 Compensation, Benefits and Menu Survey, Washington Restaurant Association.

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Good food, good times, good health: Washington’s restaurants show you can have it allBy Paul Schlienz, contributing writer


September 2012 | 17

Washington restaurants make it easier than ever to eat well.

From one end of Washington state to the other, fresh, organic, locally grown food is appearing in an ever-growing number of eating establishments. Additionally, there is rising awareness among restaurant industry professionals of the need for food that can be safely enjoyed by people with health conditions, such as diabetes and gluten intolerance. Local 360, in the heart of Seattle’s Belltown neighborhood, specializes in modern comfort food made from healthy, locally grown products, served in a warm, rustic atmosphere.

“We think what makes us special is what we stand for,” said Emily Taibl, spokesperson for Local 360. “We believe in our community and the importance of real food. That’s why, whenever possible, we source our raw ingredients, spirits, wine and beer from within a 360-mile radius. Local produce, meat and grains are more than mere vehicles for nutrients, but vital parts of the intricate system that supports our environment and the good folks who live here. We love the idea of what we eat coming fresh from the most humane sources in the Northwest.”

A few miles north, in Seattle’s Phinney Ridge neighborhood, is the Stumbling Goat Bistro. Calling itself “Seattle’s best kept secret,” the Stumbling Goat also relies on locally grown food.

“Local, organic and sustainable food practices do not harm the environment, are humane to animals, provide fair wages to farmers and support farming communities,” said Keri DeWoody and Angie Heyer, owners of the Stumbling Goat, in a joint statement. “By supporting our local farmers we keep the circle intact. Our investment in our

small and local farms is an investment in community. We invest in the farms, and the farms then turn around and invest into their own communities. But it’s more than that. By purchasing from our local growers, there is peace of mind knowing where your food comes from, how it was grown and the farmer who raised it. This way, we know the food we serve to our diners is free from toxic pesticides and is not genetically modified.”

And lest anyone thinks this trend toward food with healthy, locally grown ingredients is restricted to Seattle or the Puget Sound region, a look at Walla Walla’s Whitehouse-Crawford Restaurant – a fine dining option that offers a selection of retail cuisine with an international influence – would quickly dispel any such notions.

“Chef Jamie Guerin relies upon the influence of the farms and farmers we source from to influence what he creates on his seasonally-focused menus,” said Emily Riley, Whitehouse-Crawford’s general manager. “We source almost exclusively from our local small farms, even on occasion small organic gardens like my own. People appreciate quality and are willing to pay for it as long as they know it’s being prepared beautifully. You get what you pay for. You can tell the quality of our food is higher than it would be if it had been refrigerated and driven across the country. Our food is beautiful. It’s local and it hasn’t been out of the ground for very long.”

Healthy kids

Healthy food options, however, are not the exclusive property of restaurants in the higher end market. Even many fast food restaurants, recognizing customer interest in healthy dining, now offer nutritional information on their products. Many family-oriented establishments also are developing healthier menu offerings that taste just as good and are still as filling as more traditional fare.

A good example of this trend is the Healthy Meals Happy Kids Project. Developed by Pierce County students in the Washington Restaurant Association Education Foundation’s (WRAEF) local ProStart culinary education program, the Healthy Meals Happy Kids Project took the choices you typically find on kids’ menus and created healthy alternatives, making those recipes in a way that children would still enjoy.

“They’re still the same items kids have come to know and expect from their favorite restaurants,” said Clayton Krueger, director of marketing and communications for Farrelli’s Wood Fire Pizza, a Parkland-based chain and a major supporter of the Healthy Meals program.

Once the ProStart students developed their menu, they


went to some local schools and test marketed their products. The children loved the new menu so much that the WRAEF partnered with several local restaurants to test the menu items with the public. Farrelli’s was one of the restaurants that signed on to the project immediately.

“Farrelli’s believes our business system’s success should help nourish our neighborhood and give back to the community,” said Krueger. “Childhood obesity is an issue. The Healthy Meals Happy Kids menu is a way to have some real impact on that problem and put ourselves out there in a positive way.” The impact of the Healthy Meals Happy Kids is easy to see at Farrelli’s. Along with more traditional fare, health conscious customers can order spaghetti, sandwiches and pizza made from whole wheat that is still delicious and satisfying.

Farrelli’s developed its whole wheat pizza crust with diabetics in mind.

“Several years back there was a diabetic boy who came to Farrelli’s with his parents,” Krueger said. “He asked us if there was anything he could eat that wouldn’t spike his blood sugar. He was a cute little boy, no more than three or four years old, asking us detailed questions about diabetes. The owner promised him, ‘We don’t have any pizza crust that won’t do that, but we will.’”

Now, with the advent of the Healthy Meals Happy Kids Project, there are multiple menu options for diabetics at Farrelli’s.

“We’re going to be doing a whole wheat chicken and cheese pizza,” said Krueger. “We developed 100 percent whole wheat crust. It’s really tasty and a whole lot better for your body. We’ve also got baked chicken strips, as opposed to fried. It’s a much healthier option.”

Although nutritional information is available for parents, Farrelli’s puts its emphasis on the great taste of its new menu items.

September 2012 | 19

“We’ve noticed that whenever we really try to push the healthy aspects of any of our products, people tend not to order them as much,” said Krueger. “I think the kids from ProStart were very wise to not really push the health aspect as much as the fact that these recipes are basically the same things kids are used to eating and love.”

Man with a mission

Taking the idea of healthy menus even further, Redmond’s Graces 5 is a fine dining restaurant with a unique offering of gluten-free, non-allergenic food made with low sugar and no cow’s milk, lactose or casein. Where possible, the ingredients are organic, local, sustainable and line-caught.

A distinctive feature of Graces 5 is that it offers both raw vegan and carnivore-friendly options, allowing people with different culinary goals to meet and eat together on the common ground of this cozy restaurant in a converted house on the northern edge of Downtown Redmond.

A former Microsoft employee, Tim Sharpe started Graces 5 after surviving two bouts with cancer. While on a strict, raw vegan diet that played an important role in his therapy, Sharpe realized there was no place where he could eat out and still follow his diet.

“I made all my food at home as a result,” said Sharpe.

As he delved further into the issue, he realized there was an untapped restaurant market for people with gluten intolerance, including those with celiac disease and members of the autistic community who benefit from a non-gluten, dairy-free diet.

For Sharpe, simply carving out a non-allergenic, gluten-free section of the grill within an existing restaurant was not a good option, given the potential for confusion and mistakes within the kitchen if separate gluten-free and non-gluten-free cooking ware were used.

“I then decided that if you took out all the allergen ingredients from the restaurant, you could make anything you wanted,” said Sharpe. “A lot of celiac kids come here to have birthday parties. I always tell them they can eat anything. The thing I like about our restaurant is how we can actually encourage people. We can be a place you can come that will not tempt you to cheat on your diet. Just let us know what your requirements are, and we’ll be glad to share with you how you can fit in and be comfortable at Graces 5.”

But don’t get the idea that just because Graces 5 has a special focus on serving the allergenic community that there is anything medical about its atmosphere. And its food is thoroughly hearty and satisfying.

“We’re the kind of place that would appeal to high-end business people and people with dates,” said Sharpe. “We just happen to use fresh ingredients. You’ll actually taste our food, but you won’t come out with a food coma from too much sugar, fat and breading. You’ll come and have a good time, leave and still feel like you can drive home.”

Sharpe sees so much demand for his kind of non-allergenic menu that he ultimately hopes to develop Graces 5 into a chain. Additionally, he envisions a program where wait staff who work at his restaurant could receive certification for the allergenic training they’ve received at Graces 5 and take that knowledge to other restaurants, including chains.

“If someone who’s gluten intolerant comes in to a chain restaurant, I would love to see the server to be able to have a real conversation with that person instead of just thinking, ‘Oh, you’re strange.’”

A growing demand

With a growing consumer demand for healthier eating options, Washington’s restaurateurs are stepping up to the plate in an unprecedented way, filling the needs of everyone from local food advocates to the allergenic community.

“People are concerned with quality food, and they will pursue it wherever they can find it,” said Riley, who believes this movement is particularly strong in the Northwest.Additionally, the tough economy may also be driving the trend.

“A lot of restaurants are trying to make changes to offer healthier choices from a variety of local sources,” said Taibl, of Local 360. “The turn in the economy has more people talking about how to put money back into Washington, and that makes us very happy. We always say, we’re not doing anything innovative or new, we’re just returning to a simpler way of procuring goods to support our community.”


Drought? What drought?

At first glance, Washingtonians might ask this question. After all, our state was spared the terrible drought affecting approximately 53.2 percent of the United States, according to the National Drought Mitigation Center.

“2012 is one of the greatest years for water we’ve had in a long time,” said John Stuhlmiller, director of government affairs with the Washington State Farm Bureau. “If you drive over Snoqualmie Pass, you’ll see Keechelus Lake is really full. Our part of the country stayed wet while most of the U.S. has been dry, especially the South and the Midwest.”

With topsoil at adequate or better levels on 80 percent of Washington’s farmlands, according to the U.S. Dept. of Agriculture (USDA), Washington’s top crops, including apples, wheat, hay, grapes and potatoes, are selling at higher than average prices.

“Potatoes are doing well and will continue be a good option for people to supplement some of the other crops that are harder hit by the drought,” said Ryan Holterhoff, director of marketing and industry affairs for the Washington State Potato Commission. “Speaking specifically for Washington state, we’re sitting in a wonderful position because we have access to irrigation over here in Eastern Washington and throughout the state where the potatoes are grown. We’re just fine and it’s business as usual.”

But don’t let the prosperity of Washington’s agricultural sector fool you. The drought, remote as it may seem from the Evergreen State, is affecting its farmers. In turn, this affects the prices restaurateurs and, ultimately, their customers pay for food products.

A sympathetic relationship

Washington’s wheat crop is doing well, but its prices are more tied to outside factors than many people realize.

“You think of corn and wheat as different products, and, indeed, they are,” said Scott Yates, communications director for the Washington Grain Commission. “They have different uses, but corn and wheat have this sympathetic relationship with one another because when the corn price gets high enough, the folks out there who feed animals, whether they be cattle, hogs or poultry, switch their rations

Washington escapes 2012 drought, but not its impact By Paul Schlienz, contributing writer

from corn to wheat. So when corn’s price gets high, wheat gets higher.”

A major crop in the Midwest, corn is among the chief casualties of the current drought. Because so many products ranging from feed corn to high fructose corn syrup use it as an ingredient, a corn shortage has massive impact on the prices of other agricultural products, like wheat.

“Seventy percent of our food products, in some format, are impacted by corn prices, which have tripled over the last few years,” said David Haberkorn, senior category manager

September 2012 | 21

with Food Services of America. “That’s directly related to the specific drought situation.”

The ripple effect of corn prices is tremendous. Consider the case of egg pricing.

“We had probably the largest jump in shell egg pricing I’ve dealt with in many years primarily because corn is a staple feed for chickens,” said Haberkorn. “What happens in cases like this is that a decision is made that the price of the feed going to the chickens will be recouped by the sale price of the eggs. You either do that or reduce the number of chickens, which, in that case, happens very rapidly

and lowers supply. Demand never changes, and you have increased pricing.”

Compounding the effects of the high cost of corn is the fact that 40 percent of all corn goes into producing ethanol fuel.

“That so much corn goes to ethanol is good for a certain segment of the growers,” said Yates. “If the 40 percent of the national corn supply that’s set aside for ethanol were suddenly freed up and put on the market as food, you’d see a big change. But politics being what it is, that’s not going to happen for now.”

What’s next?

So where does this all leave Washington’s restaurateurs? “Certainly, higher costs are going to be something that folks in the restaurant business will have to deal with,” said Yates. “For example, pizza restaurants that really depend on wheat to make their pies are going to see their costs go up because wheat is ground into flour and flour will cost more. They’re going to have to make the decision whether they tighten their belts a little more and ride it through this period or raise their prices a bit on their customers.”And don’t expect prices to correct themselves and begin to go down anytime soon.

“The crop reports are all gloom and doom at the moment,” said Haberkorn. “This situation could extend well into next year.”

The USDA estimated, on August 10, that 50 percent of the U.S. corn crop was in poor to very poor condition. In contrast, only 15 percent of the crop was poor to very poor one year ago.

Ominously, South America is also producing less corn, forcing buyers to turn to the U.S. corn supply, further driving up costs.

“If you try to save money in purchasing, you might save 3 to 5 percent,” said Haberkorn. “The food costs vary at the back end. The real profitability in restaurants is in the sale to the customers and the mark ups. When you talk about these major jumps in food prices, and you look at the actual effect on individual food costs, it’s not there. It’s in the sale of individual item food products. Stop worrying about the sky falling. Mark up and sell to your customers, keep your menus fresh and do things in a positive way.”


As the CEO of Employer Resources Northwest (ERNWest), I am excited to be the new workers’ compensation partner of the Washington Restaurant Association (WRA). Our role is to “be on your side” regarding workers’ compensation claims. We perform all of the hard work generally associated with managing claims, so you can focus on the performance of your businesses.

I started ERNWest in 1999, and with help from Greg Kabacy, our chief operating officer, and our team of talented employees, we have turned our company into one of the best-performing claims management companies in the state.

Our only focus is to help companies in Washington state manage their workers’ compensation programs. We have 34 employees in three locations. Our staff is comprised of 18 claims managers, four vocational/return-to-work managers, a nurse case manager, three safety professionals, five group/account managers, and one attorney.

We contracted with the WRA to provide claims management service, but our capabilities and expertise also include safety services, training, and management of L&I accounts. Our all encompassing safety and legal services can be purchased by WRA members at reduced hourly rates.

To provide service to WRA members, we have built a unit entirely dedicated to the WRA. If your company participates in the WRA’s Retrospective Rating program (Retro), not only do you have a dedicated claims manager, you have an entire team dedicated managing claims.

Our managers work toward the goal of helping your company avoid time loss payments on your claims. Costs accrued from time loss drives up your company’s workers’ compensation premiums and reduces your Retro refund. Utilizing this portion of ERNWest’s staff also avoids expensive private sector vocational rehabilitation assignments made by L&I that often end unsuccessfully.

If you are enrolled in the WRA’s Retro program, you will receive monthly workers’ compensation claim reports that keep you up to date on all open and/or active claims, and the costs associated with those claims. On more complex claims, your dedicated claims manager will write up a monthly action plan outlining what they are doing to resolve your claims. We can also generate many other types of reports designed to help your company manage its workers’ compensation claims.

We feel that sharing our vast knowledge of the workers’ compensation system in Washington is the best way to help our clients. WRA members can look forward to monthly emails containing tips on managing claims and industry-specific safety information.

ERNWest is developing a new website that includes a library of helpful forms and downloadable safety/training documents. WRA Retro participants will have free access to everything on this site. Live, in-person quarterly training is also provided at no additional charge to Retro participants in at least two locations, and 30-minute webinars including basic claims management techniques are presented monthly.

We also are adding industry-specific safety videos, in English and Spanish, to our website. This service will be available to WRA Retro members for a nominal charge. So, what do we need from you? There are a few necessary rules for effectively managing workers’ compensation, but ERNWest only needs you to focus on two of them: early reporting of workplace incidents, and on returning your injured employees to work as quickly as possible.

The sooner we find out about a claim, the sooner we can put our substantial resources into action. We want to control the cost of your claim—enforcing incident reporting in your workplace is also beneficial from both a human resources and safety perspective. Having an active return-to-work program is the single most important thing you can do to control your workers’ compensation costs.

Our claims managers and return-to-work managers are ready to help you in any way possible. To be truly effective, your company must get your employees back to the workplace. Remember, time loss payments are the single largest and most controllable cost driver of your company’s premiums.

Leading up to our partnership with WRA and its members, we have already presented more than 30 live webinars about incident reporting and return-to-work. If you have any questions, or would like to take part in a future webinar, please contact David Swoish, the WRA’s account manager with ERNWest, at [email protected] or at 800.433.7601, ext. 809.

It is an honor to work for you, and I look forward to helping your restaurant succeed through our effective claims management. We are excited about this opportunity, and are always here to serve.

ERNWest is proud to serve the WRABy John Meier, CEO of ERNWest

September 2012 | 23

Chefs at full service restaurants and a few quick service eateries throughout Washington state are using natural, local and fresh products when constructing their menus. Establishments that change ingredients frequently base their choices on two key factors: the availability of fresh seasonal produce and the market price of protein.

Consumer demand for fresh, local products is steadily increasing, and suppliers are adapting. Smaller suppliers, such as Chukar Cherries, are seeing a significant increase in business. “Over the last five years there has been a steady increase,” said Pam Montgomery, Chukar Cherries president. “Percentage-wise, it has been about 300 percent.”

Chukar’s restaurant customers in Washington demand the freshest products, so the company retooled to minimize the time from farm to table. “Nothing is older than two weeks,” Pam said. “What is really fun about (sourcing locally) is connecting the food chain. You know who grows your food, who is making your food, and who is creating the dishes and presenting the food at your table.”

While sourcing local products and a commitment to sustainability is in the hearts and minds of consumers in Washington, companies like Chukar have noticed this trend does not translate well in states along the East Coast. “I have heard people from New York say, ‘I just don’t get that,’” Pam said. “New Yorkers are truly international, and so much of their food is imported, but here in Seattle is always local, local, local.”

Small butchers and delis, such as Uli’s Famous Sausage, are also reaping the rewards of consumer demand for sustainable and healthy dining options. “As a trained German Master butcher, I have always handmade pure quality sausages in small batches daily, to order, without added water or preservatives,” Uli’s Famous Sausage owner Ulrich Lengerberg said.

“Being the small local guy in the Pike Place Market community has helped me to make strong relationships with local chefs,

Focus on locally sourced products extends to the supply chainBy Shawn Sullivan

farmers, and foodies. Plus our sausage, made from local, humanely raised whole muscle meats, is the best in the Northwest, and has always been that way, for more than 10

years here in Seattle.”

Uli’s Famous Sausage has expanded to keep pace with demand, both in production and online presence in spite of limited delivery outside of Washington. “Our growth has been organic and local, without a big marketing budget and sales force,” Ulrich said. “Shipping freshly-made sausage too far would compromise the quality for our customers. Washington, Oregon and Idaho are about as far as we

go, while still making the best in the Northwest.”

Consumer demand for local, fresh and natural menu options from restaurants seems to be a localized trend. However, based on that demand, restaurants in Washington are forcing large suppliers to increase their portfolio of local products. Several restaurants are choosing to get a portion of their menu from smaller, independent operators such as Uli’s Sausage and Chukar Cherries.

Both Chukar Cherries and Uli’s Famous Sausage ship direct to restaurants, but distributors such as Sysco, FSA and US Foods continue to form relationships with other local suppliers. All three distributors have signed long-term contracts with several all natural product manufacturers, and plan to sign more as restaurant demand increases.

Seattle-based Alaskan Leader Seafoods has dedicated their entire business model to sustainability, and recently that commitment caught Ivar’s attention. As a result of their commitment to single-line fishing, limited processing and sustainability, they are now the exclusive cod supplier for every Ivar’s restaurant in the nation.

Whether restaurants use a large distributor, or contract with local suppliers, committing more of the menu to natural, healthier and local options will help tap into a larger customer base. As consumer demand in Washington continues to increase, restaurants, suppliers and farmers must find new ways to get ingredients to the table faster, with minimal processing and a focus on local production.


It can’t happen here.

Many Washington state restaurateurs might be tempted to think it’s of little concern to them when looking at New York Mayor Michael Bloomberg’s proposed ban on 16-ounce sodas served in restaurants. After all, New York is thousands of miles away, and we do things differently here in the Northwest, don’t we?

Unfortunately, such wishful thinking doesn’t cut it in the real world. If enacted, Bloomberg’s proposed ban will impact every restaurant in the United States. It will set a precedent and model for regulation that will inevitably be copied and modified by other governments. Ominously, it will open the door to ever more intrusive regulations on what restaurants can and cannot serve, all, of course, in the name of “good health.”

The current controversy began on May 30, when Bloomberg announced his aggressive plan to ban the sale of any cup or bottle of sweetened drink of more than 16 fluid ounces from sale by any food service establishment in New York City. The proposed ban would apply to restaurants, delis, ballpark concessions, movie theater food operations and sidewalk carts. Cup sizes for customer use at self-serve fountains would be limited to 16 ounces or less.

Businesses would face a $200 fine for noncompliance after a phase-in period of three months. Drinks with fewer than 25 calories per 8 ounce serving would be exempted as would diet sodas, dairy-based drinks, certain fruit juices and alcoholic beverages.

The New York Board of Health voted on June 12 to move forward with Bloomberg’s proposal. A well-attended public hearing, full of restaurateurs and other concerned citizens opposed to the ban, took place on July 24. Next, the board will vote on the ban on September 13. If approved, the regulation could go into effect as early as March 2013.

“At this point, we believe the board of health is predisposed

The war on soda: Today New York, tomorrow the Northwest? By Paul Schlienz

to passing the ban,” said Eliot Hoff, chief spokesman of the New Yorkers for Beverage Choices Coalition. “They are appointed by the mayor and generally follow his lead on these kinds of issues.”

Lawsuits and legislative action are likely to follow if the board approves the ban. Before this happens, however, the National Restaurant Association (NRA) in coalition with other likeminded organizations is working hard to defeat it.

“This is not about soda,” said Scott DeFife, the NRA’s executive vice president of policy and government affairs. “It is about an anti-competitive, discriminatory rule that attempts to limit restaurant operations and practices. It involves a variety of beverages and could even impact beverages that are exempt from the ban because the liability may force some operators to not sell

anything larger than 16 ounces.”

Already, politicians in other cities are showing interest in similar bans, proving that New York is merely the testing ground for this very bad idea. Cambridge, Mass., Mayor Henrietta Davis is spearheading a drive to bring a nearly identical ban on super-size sodas to her city. Will a city in Washington state be next to jump on this bandwagon?If Bloomberg’s soda policy becomes law, it puts the entire U.S. restaurant industry on a very dangerous, slippery slope. The possibilities are endless for further intrusive measures that could restrict everything and anything sold by restaurants. Strict portion controls, bans on soda refills, an end to all-you-can-eat buffets, prohibitions on self-serve fountains – this will all be likely on the agenda in the near future if Bloomberg’s soda restrictions are not stopped.Washington state’s restaurateurs cannot be complacent in the face of these intrusive, costly and discriminatory proposals. The WRA will continue to serve as the state’s primary source of information on this and other similar issues as they progress.

Staying vigilant and informed is essential as the restaurant industry faces this threat.

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Visit www.warestaurant.org/calendar for a full list of events.

TrainingSept. 4 ServSafe®, Seattle

Sept. 10 ServSafe®, Kent

Sept. 18 Allergy Certification

Sept. 20 ServSafe®, Tacoma

Oct. 2 ServSafe®, Seattle

Oct. 15 ServSafe®, Everett

Oct. 23 Allergy Certification

Nov. 1 ServSafe®, Spokane

MeetingsSept. 4 Executive Committee Meeting

Sept. 5 Seattle Restaurant Alliance Meeting

Sept. 11 Spokane Chapter Meeting

Sept. 18 Finance Committee Meeting

Sept. 25 Board Development Conference Call

Sept. 25 GAC Meeting

INDUSTRY CALENDARTraining | Meetings | Events | SEPTEMBER/OCTOBER

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Curry Corner, Lacey

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Hillside Quickie, Seattle

Ikonos Real Greek Souvlaki, Gig Harbor

Long Haul Cafe, Mount Vernon

McClain’s Pizzeria, Spokane

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Sol Food Bar & Grill, Everett

Viking Bar & Grill, Spokane

Washington Cafe & Bakery, Concrete

Ynot Sports Pub & Grub, Everett

Oct. 2 HIHIT Meeting

Oct. 2 Executive Committee Meeting

Oct. 3 Seattle Restaurant Alliance Meeting

Oct. 9 Spokane Chapter Meeting

Oct. 16 MSC Board Meeting

Oct. 23 Finance Committee Meeting

Oct. 30 WRA Fall Board Meeting

Oct. 31 Education Foundation Board Meeting

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Exhibit 1

Total Gross Profit is $3,645.00 ($4918.00 - $1273.00)

Item Name # Sold Price$ Total Sales Item Cost Total Cost Cost% Item G.P.$

Nachos 124 $7.95 $985.80 $2.50 $310.00 31.45% $5.45Chicken strips 176 $5.95 $1,047.20 $1.75 $308.00 29.41% $4.20French Fries 400 $3.50 $1,400.00 $0.70 $280.00 20.00% $2.80Taquitos 300 $4.95 $1,485.00 $1.25 $375.00 25.25% $3.70

Appetizer Totals 1,000 $4,918.00 $1,273.00 25.88%

Exhibit 2Item Name # Sold Price$ Total Sales Item Cost Total Cost Cost% Item G.P.$

Nachos 0 $7.95 $0.00 $2.50 $0.00 0.00% $5.45Chicken strips 176 $5.95 $1,047.20 $1.75 $308.00 29.41% $4.20French Fries 400 $3.95 $1,580.00 $0.70 $280.00 17.72% $3.25Taquitos 300 $4.95 $1,485.00 $1.25 $375.00 25.25% $3.70Beef Kabobs 124 $7.95 $985.80 $2.98 $369.52 37.48% $4.97

Appetizer Totals 1,000 $5,098.00 $1,332.52 26.14%

Total Group Profit is $3,765.48 ($4,986.20 - $1,332.52)

Price Healthy Menu Items StrategicallyBy Rick Braa, CHAE

Ask the Expert | Restaurant Profit Coach

A: According to the National Restaurant Association, most consumers are reluctant to pay more for healthy items on a menu. Based on the research of Port Washington, N.Y.-based firm NPD Group, fast food consumers are more willing to pay for healthy choices than full service diners, and younger guests expect to pay more than older guests. NPD claims consumers define healthy options as having fresh, quality ingredients, a choice of portion size, balanced food groups and grilled items. Bonnie Riggs, research lead, further states, “Price must not be a barrier to entry. If you put healthy items on your menu, you have to be really careful how you price them.” To be clear, every item on a menu must be priced carefully not just healthful items. If your menu is perceived as inexpensive and you add healthy choices priced at $3.00 more than everything else on the menu it’s obviously going to appear out of line. The goal is to strategically price your menu to blend healthier items.

Start by studying menu mix on a weekly basis. This is a widely ignored habit, but it leads to understanding guest preferences and dining habits. Study the sale of items at breakfast, lunch, happy hour and dinner. Understand better than anyone else what your guests love to eat at your restaurant and how much they like to spend.

Build a habit of eliminating the bottom 10% of menu items sold every six months at a minimum. If an item doesn’t sell well, get it off the menu; it’s chewing up menu real estate, creating waste and confusing brand messaging. Cutting the bottom 10% opens up a migration pattern to healthier choices without a risky overhaul of your concept. The idea is to offer the consumer the choice to eat healthier without sacrificing flavor or killing your budget.

Q: There has been a push in the restaurant industry to increase the number of healthy items on menus; how do I go about pricing these new menu items when I add them?

Once the bottom 10 percent of menu items are removed, begin to place healthier choices on your menu. Isolate that 10 percent by using your specials sheet to experiment with healthier choices during the six months you’re evaluating your menu. Insist every special be presented at each table verbally, and make sure it’s done well. This reinforces guest perception regarding the choice to eat healthier at your establishment and it gives you the opportunity to understand pricing sensitivities. To determine pricing, cost out your recipe, and look at the cost of each of your offerings on your current menu. This is done most effectively by using a spreadsheet that will list price, cost, velocity and margin of each item (see Exhibit 1). Focus on the margin contribution of new items and don’t get too heavily influenced by the cost percentage. Percentages are good guidelines but profitability is most important.

Balance all the factors of healthy items including portion size and grilled items. Keep portion sizes to the appropriate size and cost. Using proper menu engineering techniques will allow you to adjust portions and pricing up or down. Consider the hidden cost of labor in designing your pricing as well. Simply prepared items will often use fewer labor dollars. You can use higher sellers to offset increased cost of goods on new items if

necessary. Consider the following example: nachos are the lowest seller in Exhibit 1. French fries are the best. You want to add simply grilled tenderloin beef kabobs, but they cost more. If you keep the same price point of the nachos and assume the same sales volume, margin will decrease due to an increase in cost. To offset the cost of the healthier item, increase the price of higher volume items. In this case increase the fries to $3.95 from $3.50. Look at the impact in Exhibit 2. The food cost percentage increased from 25.88% to 26.14% but the amount of gross profit increased from $3,645.00 to

$3,765.48. This example creates a win-win—healthier menu option, same selling price and increased profit.

Increasing the number of healthy items on your menu in the future is not an option; it is an expectation. To maximize your profitability, use all the data you can and base your approach on proper menu engineering techniques.

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