Restaurant Association of Maryland Blog

Follow-up: Challenging Times Create Innovative New Strategies

For the 100 plus that attended the keynote titled "Mid-Atlantic Region: Challenging Times Create Innovative New Strategies" this past Wednesday at the Baltimore Convention Center we wanted to provide you with the PowerPoint that was used in the presentation.

The Presentation: Download MarylandRestaurantAssnMidAtlanticFoodBevLodgEXPO100209A

As part of the engaging discussion, the National Restaurant Association’s Senior Vice President of Research and Knowledge Group, B. Hudson Riehle opened with an insightful overview of the region’s economy as well as upcoming trends and expectations for the local food service industry in the coming months and years.  This was followed by three industry leaders and what they are doing in their own businesses.

Thank you to:

B. Hudson Riehle, National Restaurant Association

Michael Sternberg, Enovo Restaurant Ventures, LLC;

Bob Barry, The Greene Sports Bar & Grille;

Jim Wordsworth, J.R.’s Stockyards Inn

A special thanks to our sponsor AdvantEdge Services

Restaurant Sales Drop Slightly for January - August 2009

The sales tax figures were released early this week from the Comptroller of Maryland and it looks like sales for Maryland restaurants for the most part are down -$7,158,755 or - .12%.  This was a $14,000,0000 swing from the prior ytd report.  The sales numbers compare sales in restaurants from January 2009 - August 2009 versus the same period last year.  The county with the greatest increase in percentage over prior year is Charles County where sales are up $14,518,783 or 10.23%.  The biggest decline in percentage is in again Garrett County where sales are down $3,430,050 or -12.91%. The county with the biggest increase in sales is Prince George's with a $27,411,450 improvement over PY same time period or a percentage increase of 4.15%.  The county with the largest decline in sales is Baltimore City with a drop of $23,413,150 or -3.49%

Here is the rest of the story:  Download YTD January - August 2009 verus PY

Notes:  The state includes DC in their figures.  These are companies in DC that do business in Maryland. Misc would be all the other states that do business in Maryland.

The sales tax figures were released early this week from the Comptroller of Maryland and it looks like sales for Maryland restaurants for the most part are down -$7,158,755 or - .12%.  This was a $14,000,0000 swing from the prior ytd report.  The sales numbers compare sales in restaurants from January 2009 - August 2009 versus the same period last year.  The county with the greatest increase in percentage over prior year is Charles County where sales are up $14,518,783 or 10.23%.  The biggest decline in percentage is in again Garrett County where sales are down $3,430,050 or -12.91%. The county with the biggest increase in sales is Prince George's with a $27,411,450 improvement over PY same time period or a percentage increase of 4.15%.  The county with the largest decline in sales is Baltimore City with a drop of $23,413,150 or -3.49%

Here is the rest of the story:  Download YTD January - August 2009 verus PY

Notes:  The state includes DC in their figures.  These are companies in DC that do business in Maryland. Misc would be all the other states that do business in Maryland.

The sales tax figures were released early this week from the Comptroller of Maryland and it looks like sales for Maryland restaurants for the most part are down -$7,158,755 or - .12%.  This was a $14,000,0000 swing from the prior ytd report.  The sales numbers compare sales in restaurants from January 2009 - August 2009 versus the same period last year.  The county with the greatest increase in percentage over prior year is Charles County where sales are up $14,518,783 or 10.23%.  The biggest decline in percentage is in again Garrett County where sales are down $3,430,050 or -12.91%. The county with the biggest increase in sales is Prince George's with a $27,411,450 improvement over PY same time period or a percentage increase of 4.15%.  The county with the largest decline in sales is Baltimore City with a drop of $23,413,150 or -3.49%

Here is the rest of the story:  Download YTD January - August 2009 verus PY

Notes:  The state includes DC in their figures.  These are companies in DC that do business in Maryland. Misc would be all the other states that do business in Maryland.

Secretary Christian Johansson Opens the 2009 Mid-Atlantic EXPO

Earlier today Christian Johansson, the Secretary of Maryland's Department of Business & Economic Development, welcomed exhibitors and attendees to the 2009 Mid-Atlantic Food, Beverage, and Lodging EXPO. 

From his opening remarks:  'Welcome to the 2009 Mid-Atlantic Food, Beverage, and Lodging EXPO. With over 9,600 restaurant locations in Maryland employing over 174,000 great people Maryland restaurants are the cornerstone of the economy, of rewarding career opportunities, and of community involvement.  Even in these tough economic times restaurant sales in Maryland for the 1st half of 2009 versus last year are up slightly...a testament to their ability to quickly adjust by continuing to provide a great value for their consumer.  So remember to dine out at your favorite local restaurant...you deserve it! Enjoy the show!"

The EXPO is at the Baltimore Convention Center and is sponsored by the Restaurant Association of Maryland. The annual trade show is the largest in the Mid-Atlantic region, attracting thousands of attendees and hundreds of exhibitors from New York to Florida. This year the Restaurant Association of Maryland was joined by the Virginia Hospitality & Travel Association and the Restaurant Association of Metropolitan Washington, DC.

The mission of the Department of Business and Economic Development is to create, attract and retain jobs while promoting the state’s vibrant culture and history.

The Agency's one-stop economic development shop strives to attract new businesses, stimulate private investment and create jobs, encourage the expansion and retention of existing companies and provide businesses in Maryland with workforce training and financial assistance. The Department promotes the State's many economic advantages and markets local products and services at home and abroad to spur economic development, international trade and tourism. Because they are major economic generators, the arts, film production and sports are also supported by our Agency.

Restaurant Industry Tracking Survey Results for Maryland

Thank you to those that participated in last month's "Restaurant Industry Tracking Survey."

Maryland restaurant operators reported same-store sales and traffic results similar to the national average in August. Nineteen percent of Maryland respondents reported higher same-store sales in August, while 59 percent reported a sales decline. On the national level, 17 percent of operators reported a sales gain in August, while 68 percent reported lower sales.

For a copy of the Maryland Summary:  Download Maryland-Sep2009

The more restaurants that participate the better the results will be.  Find out how by contacting your Restaurant Association of Maryland.

Mid-Atlantic Region: Challenging Times Create Innovative New Strategies

On Wednesday, October 7th at 2:00pm at the Baltimore Convention Center restaurant operators from Maryland, Virginia and Washington, DC will share with attendees their own challenges as well as the innovative strategies that have helped them thrive in the mid-Atlantic region! 

As part of this engaging discussion, the National Restaurant Association’s Senior Vice President of Research and Knowledge Group, B. Hudson Riehle will open with an insightful overview of the region’s economy as well as upcoming trends and expectations for the local food service industry in the coming months and years.

Keynote Speaker: B. Hudson Riehle, National Restaurant Association

Panelists:

Michael Sternberg, Enovo Restaurant Ventures, LLC;

Bob Barry, The Greene Sports Bar & Grille;

Jim Wordsworth, J.R.’s Stockyards Inn

This discussion has over 200 people signed up.

Submit your comments and questions to the panelists in advance!

Restaurant Sales Remain Up Slightly for January - July 2009

The sales tax figures were released early this week from the Comptroller of Maryland and it looks like sales for Maryland restaurants for the most part are up $7,025,700 or .14%.  The sales numbers compare sales in restaurants from January 2009 - July 2009 versus the same period last year.  The county with the greatest increase in percentage over prior year is Queen Anne's County where sales are up $4,128,067 or 9.44%.  The biggest decline in percentage is in Garrett County where sales are down $2,299,133 or -10.46%. 

Here is the rest of the story:  Download January - July vs PY

Notes:  The state includes DC in their figures.  These are companies in DC that do business in Maryland. Misc would be all the other states that do business in Maryland. 

Maryland Hotel & Lodging Association Invites RAM Members to Legal Seminar

Join the Maryland Hotel & Lodging Association as their member guest as Professor Stephen Barth explores changes and trends in hospitality law such as swimming pool liabilities;  PCI compliance for lodging facilities; food and beverage issues facing operators;  your responsibilities when faced with an invasion of "Cimex Lectularius" (aka "bed bugs) and more! Coffee and light refreshments will be served. Stephen Barth, PhD, J.D. is the author of Hospitality Law and co-author of Restaurant Law Basics, is an attorney, the founder of HospitalityLawyer.com and the annual Hospitality Law Conference series. As a professor at the Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, he teaches courses in hospitality law and leadership. He has over twenty-five years of experience in hospitality operations, including line positions, management, and ownership.

Where:Annapolis Marriott Waterfront
When: Friday, September 25th from 9:00am - 10:00am Registration opens at 8:30am
Cost: RAM Members $15

How do I register?  Call 410-974-4472

Hartgen Attends Reception for Secretary Johansson

The president of the Restaurant Association Maryland, Paul Hartgen, had a chance to catch up with Christian Johansson, the Secretary of Maryland's Department of Business & Economic Development, about the Maryland restaurant industry at a reception at the new Silo Point Condominiums. 

"It is important for the Secretary to have a good understanding of the role this industry plays in the Maryland economy," said Hartgen. " With over 174,000 great employees, 9,600 location and sales of $9 Billion Maryland Restaurants are truly an asset."

Hartgen also talked about Maryland Tourism and the Governor's Small Business Task Force with Hannah Byron, Assistant Secretary.

Johansson joined DBED from Continental Equity, a private equity firm in Baltimore, where as Managing Director he focused on investing in diverse-owned companies and teams. Prior to that, Johansson served as President and CEO of the Economic Alliance of Greater Baltimore, a public-private partnership that markets Central Maryland for new investment. He has also served as Senior Consultant for Sag Harbor Group in New York, and is Co-founder of inka.net, a customer relationship management enterprise software company, and Dola Health Systems, an international health care firm.

Johansson received a BA from Brown University and an MBA from Harvard Business School. He currently serves on the Board of Directors for Hippodrome Foundation, Inc. as well as the BB&T Metro Area Advisory Board, the Greater Baltimore Committee Leadership Program, and the President's Board of Visitors of the University of Maryland Baltimore County. Johansson was a member of President Obama's Executive Committee for Urban and Metropolitan Policy during the Presidential campaign and served as an advisor to President Obama's transition team. He also served as co-chair of the O'Malley-Brown Transition Committee for DBED in 2006.

Restaurant Association Tracking State of the Industry in Maryland

In an effort to track how our industry is doing in these tough economic times and provide you with important benchmark information, the Restaurant Association of Maryland (RAM) and the National Restaurant Association (NRA) have teamed up to gather information through a short monthly survey.

The survey takes less than 10 minutes to complete, and all participants receive a report containing the detailed results each month, broken out by industry segment and other characteristics.  If enough Maryland Restaurants operators respond  (A minimum of 25), we will also be able to generate Maryland-specific data each month.  After you complete the first survey, each monthly survey after that will be emailed to you automatically, along with the monthly reports.  All survey responses are anonymous and strictly confidential.  To complete the survey, please go to: http://restaurant.org/research/survey/survey.htm 

25 out of 9,600 locations....seems like we should be able to do this.

We'd like to thank Bruce Grindy, Vice President and Chief Economist at the National Restaurants Association for helping us with this.    Bruce is a leading analyst of economic trends affecting the restaurant industry, he brings years of professional expertise and industry knowledge to the field of restaurant economics.

 

FAQ's from the National Restaurant Association

Last week we were asked what kind of questions the library staff at the National Restaurant Association answer on the member hot line...well here is what we got back.

Frequently Asked Questions:

Q: What is the annual employee turnover rate for fast food restaurants?
A: According to our latest Restaurant Industry Operations Report (2007/2008), it is 33% for salaried employees and 113% for hourly employees.

Q: How can I assess how the economic downturn is affecting restaurants?
A: We do a monthly Restaurant Performance Index that tracks the health of, and outlook for, the U.S. restaurant industry. It is done at the end of each month and the press release for it can be found at www.restaurant.org/pressroom. The release contains a link for the full report.

Q: What has the sales trend been for restaurants over the last ten years?
A: In our annual Restaurant Industry Forecast we track detailed sales for the last five years, and as well as general sales growth since 1971. (NB: For members, we would send them these charts or the entire Forecast, which is free to members.)

Q: What are current restaurant sales?
A: Our latest projections for 2009 put this number at $566 billion.

Q: How many restaurants are there in the United States?
A: Our latest projections for 2009 put it at 945,000 locations.         

Q: How many fast food restaurants are there in the United States?
A: The linked files contain the latest data from BLS:  Download U.S. Establishments - All Segments   Download State Establishments - 1990-2008

Q: I'm starting out in the restaurant industry and need to do a business plan. Do you have a guide for how I go about doing this?
A: There are a number of books on constructing a restaurant business plan which you can find on amazon.com. You may also want to look at restaurantowner.com, which is produced by the people who publish Restaurant Startup & Growth magazine. They have a restaurant business plan template available for a fee.

Q: I’m hiring a general manager.  Do you have a job description I can use?
A: There are job descriptions available in our Model Position Description publication.  (NB: We will send members descriptions for free.)

Q: What is the current minimum wage? How do I calculate the tip credit?
A:  The current federal minimum wage is $7.25 per hour.  However, individual states may have higher minimum wages.  The federal tipped employee wage is $2.13 as long as the employee will receive tips that add up to a $7.25 per hour minimum.  You can find out more at www.dol.gov/esa/whd/flsa/. 
Some states have a minimum wage higher than the federal government’s.  There is a chart on our website that gives that information.  You can find it in the “Members Only” section at http://www.restaurant.org/pdfs/government/2009_minimum_wage_increases_mw_cw.pdf?CFID=163678255&CFTOKEN=67686157

Q: What are average square foot costs for restaurants?
A: That can be found in the Restaurant Industry Operations Report.

Q: What is the restaurant share of the food dollar?
A: According to our Industry Fact Sheet, restaurants account for 48% of the food industry dollar.

Q: What is the per capita spending on food away from home?
A:  In 2007, it was $1,067. (from Restaurant Spending 2007)

Q: Is tapas still popular in restaurants?
A: We did a survey of chefs to find current food trends.  You can find it on our website.

Q: How dangerous is it to work in a restaurant?
A: According to the most recent Bureau of Labor Statistics, there were 4.1 nonfatal occupational injuries per 100 in 2007.  By contrast, the total for all private industries was 4.2.  So, eating and drinking places are safer than many other industries.

If you have a question (and you are a member of the Restaurant Association of Maryland), you can call 1-800-424-5156 and ask for the library.  You'll need your member number.