Education News

Food service establishments have noticed a dramatic increase in the number of patrons suffering with food allergies in recent years. Food service operators are going to great lengths to keep consumers safe. The Food Allergy & Anaphylaxis Alliance Network (FAAN) urges food service establishments to have a food allergy management plan and training for employees. Managers should conduct food allergy training and review of the restaurant’s food allergy management plan periodically to be sure that both new hires and existing employees are properly prepared.

• Restaurants should be able to supply, upon request, a list of ingredients for a menu item.

• During hours of operation, a restaurant should have at least one person on duty, ideally the manager, who can handle questions and special requests from guests with food allergies. Other staff members should know who that individual is and should direct questions about food allergies to that person.

• Employees should understand how cross-contact can occur. Keep in mind that improper garnishing or handling of a dish can contaminate an otherwise safe meal.

• If a mistake occurs with the special order, the only acceptable way to correct the situation is to have the kitchen staff discard the incorrect order and remake it.

• If a guest is having an allergic reaction, call 911 and get medical help immediately!

Provided by the National Restaurant Association 

Payment cards are a commonly used form of payment at most restaurants. If understood and managed correctly, your payment-card processing can add to greater profits with reasonable costs.

Here is what you need to know about processing payments made with a card.

1. Monitor interchange rate increases and undisclosed fee mark-ups

Interchange fees are imposed by the card brands such as Visa® and MasterCard® for the passing of financial transactional information among your restaurant, your payments processor, the card brands and the banks that issue the payment cards.

Card brands typically adjust interchange fees and rate categories in April and October of each year. When rates increase, many processors mark them up to enhance their own revenueundefinedoften without disclosure. Watch for these extra mark-ups and negotiate them with your processors.

To find out what you're really paying in card processing fees, use the National Restaurant Association’s Card Processing Rate Calculator.

2. Ensure you get fee reductions too

Some fees adjusted by card brands include reductions in certain transaction categories. While many processors pass along fee decreases to restaurateurs, not all receive them. Know that you can negotiate terms with your card processor to make sure that you do.

3. Determine if the middlemen are worth it

As soon as a restaurant customer swipes a payment card, as many as 12 additional entities can take a cut from that one transaction. Just a few of these middlemen might be an independent contractor, an accounting firm, a non-processing bank and the network software provider. Some restaurateurs do not allow these extra sources to be involved. Identify any middlemen and pay for them only if they’re adding value.

4. Examine unexplained surcharges, bill-backs and tiers

Many card processors and middlemen include undisclosed fees that are often classified as “surcharges.” They are pure profit with no value. They are also debited from your account well after the date of transaction with little or no explanation. Known as “bill-backs” or “enhancements,” these mark-ups make rates appear lower than they are.

Some card processors use pricing tiers to enhance their profits as well. Remain observant of this pricing, and discuss it with your card processor if needed.

5. Encrypt your customers’ cardholder data and use a segregated network for card processing

Keep your customers’ dataundefinedand your businessundefinedfree from risk. Customers’ payment-card data must be encrypted all the way from the swipe to being received by the card brand. Payment data must also travel on a secured network that is separate from any public wireless networks you may offer in your establishment. Insist on state-of-the-art security from your card processor, and don’t pay unnecessary fees for it.

6. Maintain basic data security standards

Work closely with the company that installs your payment terminals and software to ensure you are changing any default passwords and keeping both your hardware and software up to date. Also be sure to adhere to PCI Data Security Standards and complete an appropriate self-assessment questionnaire; this will reduce your cost of PCI compliance and risk of being noncompliant.

7. Apply real-time fraud and transaction monitoring

Thieves work hard to find ways to steal from restaurants and other merchants. Credit- and debit-card fraud costs American businesses billions of dollars annually. Real-time fraud and transaction monitoring is vital to your success.

To detect and prevent fraud, have controls for analyzing transaction patterns and types in real time, identify suspicious activity and act to counter it swiftly. Assess any particular risks to you and your customers. Your payment processor can assist you.

8. Make sure you have 24/7 support

Because so many of your customers use debit and credit cards, any problem that prevents or delays transactions at your point of sale can be catastrophic. Beyond your issues with revenue, your customers might leave dissatisfied. Be sure that your card processor offers live support all day every day.

By mastering the details of processing, you can ensure that payment cards remain a reliable and increasing source of profit for your restaurant. 

Most independent restaurants calculate their food cost only once a month, but virtually all of the major chains calculate theirs each week.

According to industry averages, chain restaurants ‑ before corporate expenses ‑ are two to three times as profitable as independent restaurants. While weekly food costing isn't the entire reason for that profitability, it's part of it.

To accurately calculate your cost weekly, you'll need to take inventory weekly as well. The only method for computing accurate cost of sales is to take physical inventories and then calculate the value of inventory on hand. Many operators erroneously believe that what they spend on food and beverage purchases is their cost of sales. While this may be true in the long run, for specific-period analysis it is inaccurate.

The correct formula for calculating cost of sales for each category is this: Beginning Inventory plus Purchases minus Ending Inventory equals Cost of Sales.

Taking weekly inventories doesn't mean you have to spend half the night to do it. Here are a few tips to help you take inventory quickly. Properly applied, these principals will help you to be more accurate and should reduce the time spent counting your food inventory to under two hours.

Get organized. It is virtually impossible to take an accurate inventory when the stock room or walk-in is in disarray. Be sure all store rooms, shelves and refrigeration units are organized and clean. Product should be easy to see and count. Labels should be used for hard to identify product. Don't put items in incorrectly marked boxes or containers.

Count it on Sunday. Most restaurants are open seven days a week. A natural tracking period is from Monday to Sunday. Also, inventory levels will be at their lowest on Sunday evening. If you are closed Sunday, then count it on Saturday evening or early Monday morning.

Separate your inventory into groups. Group your inventory into cost categories, such as meat, seafood, produce, dairy, grocery, etc. This will make it easy for cost calculations and help to organize your inventory. Grouping your inventory also makes it easier to zero in on cost control problems.

Arrange items in shelf order. Some managers advocate arranging items on the inventory sheets in the order they count the inventory. If you are using an order guide, arrange your spreadsheet to match that of the order guide. You can then record your counts on the order guide and transfer them to the spreadsheet for calculating the total value.

Use two people for taking inventory. One counts and the other records; the one recording is also an extra pair of eyes so nothing is overlooked. Also, be sure to use a pencil to encourage correcting mistakes.

'Paint' your restaurant. Always conduct inventories by starting at one end of the building and counting everything in a contiguous order. This practice will help ensure nothing gets skipped. Jumping from one area of the restaurant to another and back again will almost certainly cause you to miss something. It is much easier to flip to the proper page several times for a particular item rather than try to visit all of the places that item may be stored.

Keep counted areas off limits. Some kitchen managers like to get a head start on the inventory counting process. This approach is fine as long as counted product isn't subsequently sold that same day. Once you have counted an area, make sure nobody removes or adds product to that area. For instance, maybe you have already counted the freezer, but later find out that the cooks need another case of frozen hamburger patties you have already counted. Be sure you adjust your count before putting them into production. That case will end up in an area you have not yet counted and thus will end up being double counted.