Give Me Money or I’ll Review: A Case of Restaurant Ransom

Posted on July 6, 2012 by Holly Patterson

Most business owners agree that online customer reviews are important, but how far would you go to protect your restaurant’s online reputation? A recent report issued by Fox News suggests that cases of cyber-extortion are on the rise in the foodservice industry. In most instances, criminals threaten to post negative reviews on sites like Yelp! and CitySearch if restaurant owners do not comply with their requests for money. Sonny Mayugba, owner of the Red Rabbit Kitchen and Bar, was recently the intended victim of this type of scam. One of his customers claimed that he had gotten food poisoning from the restaurant, telling Mayugba that he and his girlfriend would write a scathing review on Yelp! and turn him into the health department if Mayugba did not buy him a $100 gift card to a nearby upscale restaurant. When Mayugba did not fulfill the customer’s demand, the customer posted a review on Yelp!. Although the review was negative, it did not refer to the food poisoning, making Mayugba certain that the allegation was false.

If the customer had posted a scandalous review about the Red Rabbit Kitchen and Bar, how much would it have affected Mayugba’s business? It’s hard to say, but the 2012 Local Consumer Review Survey indicates that online reviews are playing a larger role in consumers’ decisions about which businesses they patronize. Conducted between January and March of this year, the survey asked 4,500 local consumers to answer 18 questions about how they use online reviews. According to the study, online reviews are just as effective as recommendations from friends and family: 72% of respondents said that they trust online reviews as much as personal recommendations. Furthermore, 58% of consumers in the study stated that they trust businesses with positive online reviews. Additionally, 52% of respondents indicated that they are more likely to use a local business if they have positive reviews. The impact of online reviews on businesses is expected to continue to strengthen as smartphone and tablet usage rises, driving more and more consumers to review sites.

What should you do if you are approached by a cyber-extortionist? Experts warn against rushing to file a lawsuit: negative press surrounding litigation could be more harmful than a salacious review. However, reviews with defamatory content intended to destroy your business should be addressed with legal action. Use your best judgment when reading reviews; if you believe the content within a review could deal a fatal blow to your business, contact your attorney.

Social media is a great tool for protecting your restaurant from the ill effects of negative reviews. Using your restaurant’s Facebook or Twitter account to discuss the situation and explain your side of the story shows that your restaurant is responsive to customer complaints and willing to work hard to make patrons happy. Launching a review campaign to solicit positive reviews from customers is also a great way to mitigate the damage from a negative review. 65% of consumers read between 2 to 10 reviews, so having more reviews available for them to read is beneficial.

Has your restaurant received negative reviews? How did you handle them?

Image courtesy of EV GRIEVE

From the White House to Waffle House: What the Affordable Care Act Means for Your Restaurant

Posted on July 3, 2012 by Holly Patterson

Last week, the Supreme Court voted to uphold the Affordable Care Act. At first glance, this legislation may seem completely unrelated to the foodservice industry. However, two of its provisions could have profound financial implications for restaurateurs, particularly those who own franchises.

Insurance Coverage

Beginning in 2014, restaurant owners with 50 or more full-time employees will be required by law to offer affordable health insurance to employees and their dependents. In this case, a full-time employee is anyone who works 30 or more hours per week. Additionally, the law also covers “full time equivalents”, which includes seasonal and part time employees, workers that make up a large percentage of the restaurant industry.

How does the law define “affordable”? Premiums for employees must not be more than 9.5% of his or her adjusted gross income for the lowest cost plan option. Also, employers must offer plans that cover at least 60% of the benefits.

Failure to comply with any portion of this law could result in a penalty of up to $2,000 per employee per month.

Menu Overhaul

The Affordable Care Act also requires restaurants with 20 or more locations in the United States to display nutritional information on menus. Already standard in some parts of the country, menu labeling is intended to help people eat healthier, thereby reducing healthcare costs associated with obesity-related illnesses. Restaurants will be required to list the calorie count of each menu item, as well as have information about sodium and cholesterol readily available for customers. Many restaurateurs will therefore have to redesign and reprint menus with this information, incurring additional operational costs.

Profit margins in the restaurant industry are often thin, leaving restaurateurs anxious and concerned about how the Affordable Care Act will affect their bottom lines. Industry groups such as the National Restaurant Association have already spoken out against the legislation, stating that the act will ultimately hurt the restaurant industry: “The unworkable law cannot stand as is. We need reform that addresses the increasing costs that our members are faced with each year. Restaurant owners are looking for solutions that will allow them to provide better health care coverage options for their team members, but they cannot be saddled with excessive costs and regulatory burdens that threaten their very business. We ask members of Congress to take action that helps the restaurant industry continue to create jobs and grow the national economy”, said Dawn Sweeny, President and CEO of the National Restaurant Association.

As a restaurant owner, what can you do to prepare for the upcoming changes? Learn as much as you can about the new law. You can read the full version online here. Also, think about some ways that you can cut costs now. Are there alternative processes you can follow to save money on energy, water, or supplies? Staying informed and planning in advance could save you thousands once the law goes into effect.

Wacky and Weird Burgers

Posted on May 25, 2012 by Holly Patterson

One of the most quintessential American foods, burgers are a Memorial Day favorite and a summertime staple. From char-grilled to pan-fried, there are hundreds of ways to cook a burger and even more ways to top them. Take a look at these five restaurants offering some of the most wacky and weird burgers in America.

Elvis Burger – A salute to the King of Rock n Roll, the Elvis Burger at the Vortex Bar and Grill in Atlanta pays homage to Elvis’ favorite dish: fried peanut butter and banana sandwiches. Fried bananas, peanut butter, and bacon cover a half-pound patty for a sweet and salty twist on an American classic.

Krispy Kreme Burger – For those that have eaten a burger for breakfast, the Krispy Kreme burger may be a match made in heaven. Combining the flavors of one of America’s most popular breakfast treats with traditional burger fixings, the Krispy Kreme burger includes a beef patty, bacon, and cheese sandwiched between two deep-fried Krispy Kreme donuts. Rumored to have been created by singer Luther Vandross, the Krispy Kreme burger is now a fan favorite at the home of the Gateway Grizzles, Sauget, IL’s minor league baseball team.

Dee Snider Burger – Served by the Grill ‘Em All food truck in Los Angeles, the Dee Snider Burger is coined after the lead singer of Twisted Sister. As inventive as the band’s music, this seemingly unappetizing burger mixes peanut butter and jelly with bacon and Sriracha. Are you brave enough to try one?

Junior Columbian Burger – Dressed with Columbian flair, the Junior Columbian Burger in Orlando pairs a beef patty with lettuce, tomato, cheese, and onions, along with potato chips, garlic sauce, mayo, ketchup, pink sauce, and pineapple sauce. In addition to the standard single size, the burger also comes in double and triple patty versions for the most daring burger aficionados.

Dublin Burger – The Barley House Tavern in Concord, NH adds some Irish flair to a premium Angus beef patty with its Dublin Burger. Topped with whiskey gravy, creamy blue cheese, and crispy onions, the peppercorn charred patty is popular among locals and tourists alike.

What is the weirdest burger you ever ate?

Restaurant Spotlight: Delia’s Chicken Sausage Stand in Atlanta

Posted on May 10, 2012 by Holly Patterson

Restaurants are more than just places to eat. Cornerstones of the community, they often embody the spirit of the places and people around them. Delia’s Chicken Sausage Stand does just that. Nestled among a bevy of fast food restaurants along Moreland Avenue, Delia’s Chicken Sausage Stand captures the essence of the eclectic east Atlanta neighborhood in which it is located. The brainchild of veteran restaurateur Delia Champion, Delia’s Chicken Sausage Stand doesn’t take itself too seriously, much like the eccentric Little Five Points area just a few miles away.

How It Began

Well known among Atlanta’s restaurant community, Delia Champion made a name for herself when she opened the Flying Biscuit in the city’s Candler Park neighborhood nearly 20 years ago. The restaurant became one of Atlanta’s premier dining spots, developing a loyal local customer base and attracting out-of-towners with its down home southern style biscuits and apple butter.

A few years ago, Champion sold the Flying Biscuit to pursue something she was deeply passionate about: sausage. “I’ve always loved sausage. I grew up eating sausage and making sausage in the kitchen. It was almost like a lost art. I sold the Flying Biscuit and I had some time to think about what I wanted to do as I got old and gray. I thought that it would be fun to create a restaurant that had fewer moving pieces than a full service restaurant. I wanted to do just one thing, something I was really passionate about, and do that one thing well”, said Champion.

Champion had already had some success with sausage, selling it at local Kroger stores under the Southerland Farms brand. However, the experienced restaurateur admits that she was skeptical at first, especially considering that 90% of all new restaurants fail. To overcome her apprehensions, Champion asked friends and family for their opinions about the menu. Hosting a series of dinner parties, Champion served guests an array of creative sausage dishes. Many items on the restaurant’s menu (and their offbeat names) came from ideas culled from partygoers.

When choosing a location for her new venture, Champion thought about where the locals already gathered. Located on Moreland Avenue, the Fish Supreme had been an Atlanta favorite for more than 30 years. Champion liked the idea of having a built-in customer base, so when the Fish Supreme closed, she quickly signed a lease on the tiny building. In addition to the building, Champion also acquired what she believes to be one of her most valuable assets, an outgoing and energetic woman named Laketha who had worked at the Fish Supreme for more than 12 years.

With a location and employees like Laketha by her side, Champion set out to recreate her success at the Flying Biscuit, vowing to make smarter choices than those she made when she was a budding restaurateur. “The first restaurant you open is kind of like your first child. All those moments are so magical. You don’t remember the days that went perfectly but you sure do remember the days that you stumbled and your challenges to fix it”, she said.

Reflecting on her first days at the Flying Biscuit, Champion recalls the struggles she faced, including having to shut down after a few hours every day for the first week because she ran out of biscuits. “When I started the Flying Biscuit I had no idea what I was doing. I hardly do now but then I really didn’t. The difference is now I know that I have a long way to go every single day to be as good as I can be and every meal as great as it can be. I think I did a better job opening this one honestly by just anticipating volume. I was able to put enough employees in place so I could recover faster by going to pick up what we needed almost every four hours”, she stated.

The Food

The menu at Delia’s Chicken Sausage Stand is truly a reflection of the community, which Champion says is focused on a healthy and environmentally-friendly lifestyle. Although her operational costs are higher, Champion made a conscious decision to offer only locally-sourced chicken because it is what she and her customers want to eat. “I made a choice that I wouldn’t have the standard in the restaurant industry for cost structure. For example, my food cost is higher because I chose to source my chicken differently. Even though I’m making it, it’s still higher. In the restaurant industry, a good model to follow is 30% food and 30% labor. I don’t get to follow that model here. My food and paper are very high, even down to the containers that I purchase because they are compostable, not just recyclable but compostable”, she reported.

Casual and fun, every item on the menu at Delia’s Chicken Sausage Stand is dripping with personality. With names like the Hot Mess, Sleazy Cheesy, and Mother Clucker, every dish features sausage in either link or patty form and fresh ingredients like homemade sauerkraut and Wild Heaven Cheese Sauce, made with beer from a local brewery.

One of the most unique and popular items on Delia’s Chicken Sausage Stand’s menu is the Double D Slider, a chicken sausage patty and cherry cream cheese sandwiched between two grilled Krispy Kreme donuts, another local favorite. “Our busiest window of time hour on hour is 1 o’clock in the morning through 3 o’clock in the morning every weekend. The Double D Slider is made for those late night drunken extravaganzas. The idea was a little bit like French toast, something sweet and something savory with the sausage”, Champion said.

In addition to slingers (link sausage on a hoagie bun) and sliders, Champion also added a salad to the menu. Like all of the other items on the menu, the salad’s dressing is prepared from scratch, using white balsamic vinegar and tomatoes and onions that she roasts in the restaurant’s oven after baking the sausage.

Success in the Restaurant Industry

In just a year, Delia’s Chicken Sausage Stand has become a favorite gathering spot for locals and tourists alike. Looking back upon the restaurant’s brief history, Champion credits its success to her employees rather than herself. “If your employees are inspired by the food that you serve and you ask them to participate in your business, they often have better ideas than you could ever come up with yourself. Every day I ask my employees to come to work and help my business excel. That’s my secret, really. It’s not me at all. I did not come from the privilege of a college education and I didn’t have a lot of money. What I had was faith and blind ambition, thinking I’ll just do what it takes and I’ll get it done. I got very lucky early on and I realized you can’t just get it done, you have to have people supporting you and the best employees. My job here every single day is to thank my employees and to ask how it’s going and is there a way to do better. It’s that simple, really”, she said.

For more information on Delia’s Chicken Sausage Stand, please visit http://www.thesausagestand.com.

The Instawares Restaurant Spotlight gives readers a glimpse into the life of a restaurant owner. From food to marketing, the Restaurant Spotlight chronicles what it takes to start, operate, and grow a successful foodservice business. If you are interested in participating in our next Restaurant Spotlight, contact us today.

Tips for a Successful Mother’s Day at Your Restaurant

Posted on May 8, 2012 by Holly Patterson

Tips for a Successful Mother’s Day at Your Restaurant

With Mother’s Day less than week away, restaurants across the country are gearing up for the most popular day of the year to dine out. Make the most of Mother’s Day at your restaurant by following these simple tips:

Think Beyond Brunch – When it comes to Mother’s Day, brunch is the meal that comes to mind the most. However, only 24% of diners go out for brunch to celebrate Mom’s big day. Dinner is the most popular meal, with 58% of diners opting for a midday meal out, followed by lunch at 32%. Prepare for the lunch and dinner rush by having extra food, supplies, and staff members on hand during the afternoon and evening hours.

Keep It Kid Friendly – According to research from the National Restaurant Association, 66% of people that eat out on Mother’s Day bring their children along. Keeping kids comfortable and entertained is a must, so make sure you have enough highchairs, booster seats, and crayons available. Consider updating your kids’ menu activity packs to focus on Mom: instead of standard coloring and activity pages, give every child a blank card that they can color and write a special message for Mom while they wait for their meals.

Make It Special – Almost 20% of those who dine out on Mother’s Day think that Mother’s Day specials are important. Provide moms with something different on Mother’s Day by creating special menu items or offering discounts for mothers. Alternatively, show your appreciation by giving a small gift (flower, candy, etc.) to each mother that dines at your restaurant on Mother’s Day.

Don’t Forget About Gift Cards – Nearly 20% of mothers say gift cards are their preferred gift. Bring diners back after the Mother’s Day holiday by offering gift cards. Giving customers a small discount on gift cards the week before mother’s day not only gives them a convenient and affordable last-minute gift option, but can also generate incremental revenue for your business when the gift cards are redeemed by bringing in customers who may not normally dine at your restaurant.

Cinco de Mayo Fun Facts: History of the Margarita

Posted on May 4, 2012 by Holly Patterson

History of the Margarita from Instawares.com Made from a blend of tequila, Cointreau or Triple Sec, and fresh lime juice, margaritas are the most popular cocktails in the United States, accounting for 18% of all mixed drink sales. Americans consume more than 185,000 margaritas per hour, making the United States the number one tequila market in the world.

Just like your memory after having one too many, the origin of the margarita remains unclear. Although many have claimed to be the creator of the famed drink, no one knows for sure just who concocted the world’s first. Take a look at these popular stories about the birth of the margarita and decide for yourself.

Tijuana – 1938

According to Mexican legend, the margarita was born in Tijuana at the Rancho La Gloria restaurant in 1938. Carlos “Danny” Herrera created the drink for customer Marjorie King, an aspiring actress who was allergic to all hard alcohol except for tequila. Instead of serving her an overpowering tequila shot, Herrera created a tasty drink that blended the salt and lime flavors from traditional tequila shots into an iced beverage, naming the drink after his customer.

Ensenada – 1941

Southern Californians think that the margarita was first invented at the acclaimed Hussong’s Cantina in Ensenada. In October 1941, bartender Don Carlos Orozco served a mixture of tequila, Damiana, and lime over ice in a salt-rimmed glass to a woman who visited the bar often. Although the identity of the woman remains a mystery, many believe that she was either Margarita Henkel, daughter of the German ambassador to Mexico, or actress and dancer Rita Hayworth, whose real name was Margarita Carmen Cansino.

Acapulco – 1948

While vacationing with her husband and friends in Acapulco in December 1948, Dallas socialite Margaret “Margarita” Sames decided to create a new drink for her guests to enjoy at the pool. “After all, a person can only drink so many beers or so many Bloody Marys or screwdrivers or whatever. I wanted to make up a new drink”, Sames told the San Antonio News-Express in 1994.

Sames first combined her favorite liquor, tequila, with Cointreau, an orange-based liqueur from France, inventing a cocktail that was not initially appealing to her guests. “I was pushed into the swimming pool quite a few times because some of those first drinks were so bad”, she said. After much experimentation, Sames finally found the perfect blend for her drink, a mix of tequila, Cointreau, and lime juice served in a salted rim glass. Dubbed “Margarita’s drink”, the recipe for the margarita quickly spread across the country via Sames’ friends, including actors Lana Turner and John Wayne, Hotel Bel-Air owner Joseph Drown, Tail O’Clock owner Shelton McHenry, and famed hotelier Nick Hilton.

Galveston – 1948

Texans staked their claim to the margarita in 1948, when head bartender Santos Cruz was said to have created the drink at the Balinese Room in Galveston. Cruz reportedly concocted the drink for singer Peggy Lee, calling it Margarita, the Spanish translation of Lee’s name.