Wednesday, April 5, 2017
WATCH: Slimmer Margins: Wage Increases and the Restaurant [Under 60 Seconds]
Restaurant workers advocacy groups have been waging a battle across the country to raise the minimum wage, and they're getting results. But at what cost to the restaurant industry itself? Weigh the pros and cons in under sixty seconds.
DID YOU KNOWs…
People Hate Probability
ESPN debuted a new feature during its MLB Opening Day broadcast which shows the team’s win probability in the bottom-right corner. The response to the feature was overwhelmingly negative on social media because it “diminishes the game’s excitement.”
The Snack Police
A professor at Rush University in Chicago designed a device to put in vending machines that forces users to wait an extra 25 seconds before releasing unhealthy snacks. Healthy snacks were able to be accessed immediately. The device actually caused most people to choose healthier options to avoid the 25-second wait; but still… Not cool.
MLB’s Banking on Luxury Tax
Now that MLB’s 2017 season has just begun, a total of six major league organizations will pay a luxury tax for exceeding the $195 million salary level. Take a look at this infographic that breaks down how the tax payments have drastically changed over the years.
RESTAURANTS PREPARE FOR WORKSITE RAIDS
Why it matters to you: are you ready for the shifts in immigration policy with your staff?
Many restaurants have seen the effects of the tougher stance on immigration brought on by the Trump administration. Restaurant operators across the country are preparing for an expected increase in document audits and potential “worksite raids.” Attorneys encourage employers to be prepared for review, many of which will target the restaurant industry for often providing work to undocumented workers. Roughly 13% of unauthorized immigrant workers in the United States occupy jobs in the restaurant industry.
As of now, there has yet to be any significant increase in worksite raids but many establishments have prepared accordingly. ICE officials have announced the arrest of 248 undocumented immigrants over two weeks in March but it’s unclear whether any worked in restaurants. Also to note, many of those investigations appear to have targeted criminals or those with prior deportation orders. Until the immigration policies have a set strategy, it is our job be prepared for any changes to come in the future.
PUZDER TALKS CHALLENGES
Why it matters to you: Andy Puzder discusses where he believes the industry is headed.
Recall in previous weeks we discussed how Andy Puzder withdrew from consideration as Labor Secretary and recently stepped down as CEO of CKE Restaurants. However, Puzder still has a pretty firm grasp on changes in the industry and spoke with CNBC about what he believes are the biggest challenges facing the restaurant industry. Some of these challenges refer to shifts in purchasing behaviors of millennials, from clothing to groceries which has now reached restaurants.
He notes that chains like Panera and Starbucks have incorporated mobile order and pay options to keep up with the demand. "You could see retail significantly changing over a five- or 10-year period, and the companies that can adjust to that will survive and the ones who can't will not." Puzder said he started to see a shift in consumer purchasing habits in June or July 2015 and is confident that will only continue in the next decade. The biggest challenge Puzder noted was to determine how to adjust to the different consumer purchasing trends and how they vary from generation.
YOU’RE IN MY HOUSE NOW
Why it matters to you: to be successful in the industry, you can’t let guests walk all over you.
Working in the restaurant industry requires a certain type of personality to succeed in the position. In a recent Munchies article, a server from an upscale Philadelphia restaurant discloses her experience of how her attitude directly contributed the respect earned from her guests. Among the anecdotes, the author offers tips on how to become a truly confident server and how to prevent obnoxious customers from walking all over you. In return, she found that a confident no BS attitude grew her tips over 20 percent in most cases.
Often working in the restaurant industry, we experience guests that are entitled and treat their servers poorly. One of the most important aspects of the article mentions how important it is to stand up for yourself while still maintaining a level of professionalism and a polite demeanor. Another key component to serving success refers to judging each table as to which level of service they are anticipating. Some guest may expect to be left alone while other may be tourists expecting more interaction with their server.