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Cool Stuff From the NRA Show

We are having a great time at the NRA Show in Chicago.

Below is a picture of the booth with the food service robot.  The cost is 25K, and it can be trained to do one function. It was cool and just imagine where this tech will be in a couple of years.

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Below is a picture of me on the left, Keith Jones, Executive Chef for Honey Smoked Salmon in the middle and Erik Tversland my business partner at OpsAnalitica.  I worked for Keith in 1994 and 95 at the Metropolitan Club in Denver.  He is one of the coolest guys I’ve ever worked for in the industry.  Wonderful to see him.

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Below is a video of a new Budweiser merchandising cooler.  It projects the images from the bottom of the door. It is WiFi connected and will even alert a repair person if it breaks down.  Apparently in a market test it increased sales by 11%.

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Dozens sickened at banquet

So probably not the best banquet to have a foodborne illness outbreak at considering the attendees. With 100 of the 250 attendees being lawyers and law students this is not going to go away anytime soon.

This article from Philly.com will be forever and will pop up decades from now if you Google search “foodborne illness Philly” (I just searched and a version of this article shows up as number 5). There are social media and Yelp! reviews that are out there as well, but there are ways to get those “expunged” if you will, but news articles don’t go away.

Although it appears from the article (copied below) that the restaurant providing the food has a track record of violations with the health department. The health department legally can’t publically talk much about the restaurant other than posting the publicly available information, but the lawyers and law students aren’t holding any punches.

It doesn’t appear that this restaurant is practicing a due care approach to their health and sanitation standards and it could wind up costing them their business this time. More and more data and apps are available to consumers to check on restaurant scores etc. Now more than ever, restaurateurs need to make sure that they are running safe operations. There is so much competition that most can’t afford to bear the cost of the brand damage that results from this type of press.

There are tools available that are simple to implement that can help drive accountability and prove to health inspectors that you are taking a due care approach to health and sanitation. It’s worth investing some time investigating what’s available. It could wind up saving your brand.

I have copied the full article below:

In one of the largest outbreaks of suspected foodborne illness in Philadelphia, nearly 100 lawyers and law students were sickened last month after attending a banquet celebrating the Lunar New Year in Chinatown.

But even though the restaurant has a history of food-safety problems stretching back several years, the city Health Department says it cannot publicly discuss details of its investigation, citing a 1955 state law.

That law hasn’t silenced the outbreak’s victims.

About 250 people attended the feast Feb. 27 at Joy Tsin Lau, the venerable dim sum restaurant at 10th and Race Streets. Dozens of the diners reported that they felt the first symptoms two mornings later.

Chi Mabel Chan, who has owned Joy Tsin Lau for more than 30 years, denied that the diners had suffered food poisoning from the banquet.

“It was not a problem with my restaurant,” she said, theorizing that chilly weather or festivities at a karaoke bar after the dinner might be to blame.

“Maybe they got cold or drank too much,” she said of the victims.

The eight-course dinner – well-documented on social media – was a fund-raiser for a group of Temple University law students, the Asian Pacific American Law Student Association.

“This was the worst case of food poisoning I’ve ever witnessed,” Antima Chakraborty, a Philadelphia assistant district attorney, wrote on Yelp, a restaurant review site. “Many individuals had to go to the ER.”

City inspection reports show that Joy Tsin Lau has long had a problem maintaining food-safety standards.

Just 17 days before the banquet, a Health Department sanitarian was at Joy Tsin Lau to check back on an earlier problem. In a report dated Feb. 10, Kyria Weng wrote “that current management practices have allowed unacceptable public health or food-safety conditions.”

An Inquirer analysis of city inspection reports found that the average eat-in restaurant in Philadelphia last year had 2.3 risk factors for foodborne illness, the more serious of the two main categories defined by the Food and Drug Administration.

Weng cited Joy Tsin Lau for five such risk factors. Several of those – dumplings held at a bacteria-friendly 57 degrees, and a lack of soap and paper towels in the employee restroom – were noted as repeat violations. Weng also found nine lesser violations, called “lack of good retail practices.”

But that was an improvement over Weng’s Dec. 22 visit, when she cited the restaurant for seven risk factors for foodborne illness (including a chicken held at unsafe temperatures) and 13 lesser violations.

Back in 2010, the city Health Department filed suit against Joy Tsin Lau after deeming it a “public nuisance” and issued a cease-and-desist order for “failure to ensure that public-health standards for a safe and sanitary operation . . . are being maintained.”

City legal officials did not respond to questions asking if the city ever acted on the order or if the restaurant ever was forced to close.

David S. Haase, a Center City lawyer, said he began to feel nauseated about 30 hours after the banquet. Contrary to Chan’s theory, he said he was warmly dressed and did not go to the karaoke bar.

A combination of nonstop puking and explosive diarrhea kept him bedridden for four days.

“It was freaking terrible,” Haase said. “I’d crawl back into bed and curl up into a ball, moaning like a child with the cramps.”

Organizers, in a post-banquet e-mail to attendees, said multiple guests had sought medical attention.

Thursday, nearly four weeks after the banquet, Health Department spokesman Jeff Moran would say only that a “food source” had been identified for the outbreak.

“We are not permitted, by law, to publicly release the findings of outbreak investigations,” Moran said.

He cited the Pennsylvania Disease Prevention and Control Law of 1955, which prohibits health authorities from disclosing reports or records of diseases. Though the law primarily addresses patients with venereal diseases and tuberculosis, its confidentiality clause keeps secret the details of all health investigations.

Most states have similar laws, according to Scott Burris, the codirector at Temple University’s Center for Health Law, Policy, and Practice.

“It’s pretty typical,” Burris said. “Pennsylvania is not an outlier.”

Investigators need some secrecy to collect sensitive information, he said, but the laws may go too far when it comes to alerting the public of potential threats.

“That’s a price we pay,” Burris said of secrecy laws. “It’s probably worth working on our privacy laws to see if we can find an approach that lowers that price.”

But there is no law silencing the sickened.

“If you enjoy being on your back for the 48 hours post-dinner writhing in pain, burning up, and exploding out of all orifices, then this is the restaurant for you,” wrote Jack Jiang, a University of Pennsylvania researcher who attended the banquet with his girlfriend.

In an e-mail to a reporter, Jiang said he had been bedridden for three days and suffered lingering effects through the end of the week.

Haase, who missed his daughter’s championship track meet due to the illness, said he had contacted a Health Department coordinator, who told him the outbreak was likely brought on by norovirus.

Norovirus, the most common cause of foodborne illness, sickens about 20 million people a year in the United States, according to the Centers for Disease Control and Prevention. The pathogen is often spread by contact with an infected person or by ingesting food or water contaminated by fecal matter. Acute gastroenteritis strikes usually between 24 and 48 hours after exposure to norovirus.

Caroline Johnson, director of the city’s division of disease control, said she couldn’t talk specifics, but in general said the goal of investigations “is to find out what happened, correct that problem, and move on.”

As for the secrecy, she said, “We don’t want to drive underground the facts we want to uncover.”

Her agency told Haase about the norovirus because “we feel that by telling them, they won’t need to have the wrong antibiotic prescribed to them or have unnecessary testing. It’s the right medical thing to do. I wouldn’t withhold information from them because it might have medical significance to their situation.”

Foodborne illness outbreaks in Philadelphia are relatively uncommon – about 10 a year – and when they do occur, they usually strike fewer than 20 people, Johnson said.

“They’re not always as impressive as this one,” she said.

“These foodborne outbreaks can happen to the finest of restaurants and it doesn’t necessarily mean that the restaurant did anything wrong,” Johnson said.

None of the lawyers or the Temple group said they were planning to sue Joy Tsin Lau. They have two years before the statute of limitations runs out.

Haase, whose law firm sponsors a table at the banquet each year, said he would continue attending under one condition.

“It will have to be at a different place,” he said.

In the meantime, Haase said he won’t collect the two raffle prizes he won at this year’s banquet: two dim sum dinners at Joy Tsin Lau.

Banquet Menu

Full menu for Temple APALSA’s 8th Annual Lunar Banquet, Feb. 27, at Joy Tsin Lau:

Chicken sweet corn soup

Walnut shrimp

Stir-fry beef celery

Peking duck

Spare ribs

Deep-fried fish Hunan

Veg fried rice

Veg spring rolls

Sautéed string beans

Black bean eggplant

Braised bean curd

5-spice bean curd bean sprouts

Kung pao vegetables

Lo mein

Chinese vegetable with hearts of greens in light gravy

Fresh oranges

Fortune cookies

Tea

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Restaurant Tech Restocked For Tomorrow And Beyond

Here’s a great article from TechCrunch on technology in the restaurant industry. A major focus of this article is on POS systems. Mobile POS systems are moving in on long time dominant systems such as Aloha and MICROS. It seems that mobile POS is the future. Either having guests swipe their own cards at the table or servers carrying tablets with them and swiping at the table will streamline the checking out process. The deli in the building that I office out of has moved to Square and they love it. They say it’s cheaper and they don’t need all the equipment that other payment processors require. The mobile solutions are preaching, rightfully so, simplicity, efficiency, and convenience.

The article also goes on discuss mobile payments which seems to be catching on across most of retail. As mobile security gets better I see this becoming more and more the norm. The “mobile wallet” is the next logical step for the mobile phone.

What are you doing as far as technology in your operations? Do you see these solutions in your business if they aren’t already? If not, why?

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Here’s the full article:

A recent article in TechCrunch characterized nascent upstarts in the restaurant industry as wide-eyed idealists with little reality of the harsh, high-touch operating environment in which they operate. Having worked in the tech, food and health worlds for most of my career, I believe the article misrepresented the significant progress being made across the industry. On almost every front within hospitality — be it point of sale, loyalty, delivery or sourcing — change is in the air.

Point of Sale Systems Are Shifting Rapidly

For all the talk of the Aloha and MICROS point of sale (POS) systems dominanting in restaurants, a bevy of newcomers have been making inroads. Square, with its slick reader and now retail POS terminal, carries the most gravitas among the mobile POS companies for good reason: it inks deals with large retailers: Starbucks in 2012, then Whole Foods, Uniqlo and Godiva in 2014. Granted, none of these establishments switched over an entire store to Square, but these relationships suggest large retailers will embrace new technology.

Square isn’t alone in this space, either. Longtime ecommerce site Shopify launched its own POS system in 2013, bridging together digital and in-store selling in ways old-line providers can’t match. Even venerable POS provider NCR has dipped its toes into the market. Adil Consulting, a merchant POS consultancy, found 52% of small merchants now use a mobile POS for the majority of their payment processing, a huge change from even a couple of years prior.

Mobile POS upstarts are also eyeing the market leaders with more sophisticated products. POS startup Revel (which recently raised a $100 million Series C round) and ShopKeep aim at the heart of Aloha and MICROS by combining deep business analytics with mobile-based front-of-the-house systems. Alex Konrad of Forbes reported Revel’s growth rate at 250 percent year-over-year in February 2014.

If you want a historical parallel for the mobile POS market, consider the arrival of Japanese cars into America back in the 1970s. Toyota and Honda targeted the low end of the market, but within a generation, they delivered Lexus and Acura into the U.S. market, upending the staid American luxury brands like Cadillac and Lincoln. Substitute MICROS and Aloha for Cadillac and Lincoln and you can get an idea of what’s coming for the biggest POS names.

Mobile Payments Are Coming to Restaurants

For high-end retail, which acts as a harbinger of things to come, mobile payments have already arrived. Starbucks, an early mover in this space, reported 14 percent of its U.S. transactions were completed using its mobile app in 2014. But it’s not just the big players; even small merchants that represent the long tail of the industry are adopting new technology.

I spoke at length with Andrew Cove, co-founder of the Cover for this article. Long considered one of those ‘Why hasn’t anyone done this already?’ mobile opportunities, Cover brings mobile payments and check splitting into the high-end restaurant market. Built around creating a seamless payment transaction for users — think Uber, Cove said — Cover also delivers flat-fee transactions and 24-hour payment disbursement to restaurants. Cove said the product has already reached over 150 restaurants in NYC, San Francisco and Salt Lake City.

And let’s not forget what Apple Pay may do in this area. Payment industry guru Mike Dudascalculated almost 1 percent of Whole Foods transactions are happening with Apple Pay. Sure, that’s a tiny part of the retailer’s overall sales, but, if true, it represents phenomenal growth of a new technology no one had even heard of six months ago.

A Food Service Sourcing Revolution in the Making

Long dominated by Sysco and US Food, even the purveyor system — with its 10 mile wide moat to market entry — is at the dawn of a new age. Another innovative startup, Sourcery, allows chefs to manage disparate food suppliers from a central dashboard, streamlining payments and invoicing.

Ashwin Mudaliar, head of business development at Sourcery, spoke to me about Sourcery’s operations. A molecular biologist with a passion for food system reform, Mudaliar describes Sourcery as a commerce platform for the modern commercial kitchen. Restaurants bring their purveyor network into Sourcery’s orbit and they weave their technology across each restaurant’s web of suppliers.

The result of reducing friction for food sourcing may ripple through the supply chain, a long-term goal highlighted by Mudaliar. It encourages more restaurants to source widely, pulling restaurants away from the broadliner model embodied by Sysco. While it’s very early, technology like Sourcery has the potential to increase the diversity of local food options available at every restaurant.

Delivery and the Broader Food Industry VC Presence

GrubHub and Seamless dominate the restaurant delivery market, but that doesn’t mean innovation is out of reach here, either. Instacart, the grocery delivery service launched only back in 2012, is reportedly raising $100 million at a heady $2 billion valuation. Other upstarts like the more local-flavored grocery delivery services (Good Eggs on the West Coast and Relay Foods in the Mid-Atlantic) raised $21 million and $8.25 million in their last funding rounds, respectively.

There’s also a host of tangentially related food-tech startups that align spiritually with the restaurant industry and the broader food movement. VC funding in the food vertical has been on a steadily increasing trajectory for at least the last five years, touching all corners of the industry.

The DC-based organic salad chain SweetGreen raised $22 million in 2014 to promote expansion. West coast competitor Lyfe Kitchen boosted its reserves by at least $21 million in 2014, according to an SEC filing. Revolution Foods, the firm trying to remake school lunches, raised $30 million in 2014. And Hampton Creek, the food company replacing animal products with unique plant-based substitutes, managed to get its Just Mayo product into over 20,000 stores in just the last 12 months, according to Danielle Gould’sFoodTechConnect.

Solutions to the uniquely complex problems facing the restaurant and food industries will require still more innovation than what has been discussed here. Discovery, nutrition information, loyalty, distribution and food waste represent just a few of the frontiers that await intrepid entrepreneurs. But no matter what dimension of this industry you look at, it’s hard not to see the seeds of change blowing in this venture capital-fueled wind.

Twenty-Five Percent of Diners Say Tech Options Factor into Restaurant Choice

The first part of this article from Hospitality Technology summarizes the National Restaurant Association’s 2015 forecast which boasts good news for the industry this year. We’ve already talked about that and are very excited for what’s to come.

What I found interesting was the latter part of the article discussing consumer trends and their demand for technology. They still want and like the personal aspect of eating out, but most want some technology to make the ordering process more efficient and convenient. Interesting stat from the article: 8 of 10 don’t eat out as much as they’d like to. So you have to wonder how do we get them to eat out more?

Check out the full article here. 

2015 Restaurant Industry Forecast Released

The National Restaurant Association has released it’s 2015 industry forecast and it’s looking pretty good. Here are a couple of highlights:

  • Estimated industry sales of $709.2 billion
  • Estimated to hit 1,000,000 locations in the US
  • Estimated to employ 14 million people

The biggest challenges will be rising food costs and more competition in the labor market as more jobs become available across industries.

Click here to read the full article from the Missouri Restaurant Association or view the quick 3 minute video summary from restaurant.org below.

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