Back to Fundamentals: Gas South

By Topher Jensen

Understanding the factors that impact natural gas prices

In 2021, the U.S. commercial sector consumed 3,263,722 million cubic feet (MMcf) of natural gas, with about 2% of that in Florida alone. The hospitality market relies on natural gas for heating, cooking and drying. It’s been the steady choice for businesses because it’s reliable and effective. But recent price increases have made natural gas management more complex than ever before.

It’s no secret that natural gas prices have been exceptionally volatile in 2022. It’s normal for prices to fluctuate, but the natural gas market hadn’t seen prices reach such spectacular highs since 2008. From 2017-2021, natural gas prices averaged below $3—but in early 2022, prices hit $8.14/MMBtu (according to the U.S. Energy Information Administration).

Fortunately, prices are forecasted to drop in the coming year. Still, as we’ve come to experience, nothing is set in stone. So, what factors influence natural gas prices, and is there any way to prepare for future volatility?

Let’s take a look at the fundamentals. Like most things bought and sold in high volume, it all comes down to Economics 101—supply and demand.

With demand, the weather usually plays the most significant role. People buy more natural gas when it’s cold out to help heat their homes and businesses. Typically, demand for natural gas is lowest from April to October and highest during what we call heating season—November through March. But other factors such as economic activity (which slowed during the COVID-19 pandemic) and the cost of competing energy sources play roles, too.

With supply, considerations include production levels, storage amount and the country’s import/export activity. The United States produces most of the natural gas that it consumes. From 2005-2019, production generally increased, which led to lower prices and less volatility. In the first half of this year, the U.S. produced 3.1MMcf of natural gas monthly, higher than last year.

Any gas that isn’t immediately sent to market is injected into storage facilities. From storage, the gas is either delivered to the customer or reserved for supply management and backup inventory. Some companies can also move gas in and out of storage through futures trading.

Current storage levels are below the five-year average, and the gap won’t close without consistently strong injection rates. Because of record-high temperatures and a shift away from coal-fired generation, natural gas consumption may increase in the electric power sector during the summer months. That could mean fewer than normal injections, lower storage volumes for winter and higher prices.

Finally, natural gas import and export activity affects domestic supply. Over the past three years, export capacity has increased by more than 40%. In the first half of 2022, the U.S. became the world’s largest LNG exporter (LNG stands for liquified natural gas, the state in which natural gas can be stored and shipped). This new distinction could be due to the war in Ukraine and limitations on Russian imports. And although LNG exports decreased when the Freeport LNG plant shut down operations, the company recently announced that they’d resume activity in early October.

Of course, these are just the basics. To truly make the most out of your natural gas consumption, it always helps to have experts on your side.

At Gas South, we provide many customers with dedicated account managers who understand the natural gas market and your business needs. We’re committed to finding creative ways to keep your costs down and your business running smoothly. To provide customers with additional information and insights, we release a monthly update on the natural gas market and conduct interactive webinars to dive deeper into the market forecast.

If you’re interested in working with Gas South to manage your natural gas needs, reach out to Director of Commercial Acquisitions Topher Jensen at Sales@GasSouth.com

National Food Safety Month Week 4: Executive Team

Create a culture of food safety in your organization

Last week we talked about the role of multi-unit restaurant managers in promoting food safety and how having a management system in place can help standardize food safety across all locations. This week, we turn our focus to restaurant executive teams and pose the question: have you prioritized food safety by incorporating it into your restaurant’s culture?

Company leadership has the responsibility of implementing a culture that emphasizes cleanliness, accountability, teamwork, and the importance of following recognized food safety systems and protocols. Let’s take a look at how this can be achieved.

Executive Leadership’s Role in Food Safety

Food safety goes far beyond passing health inspections and meeting regulatory requirements. Creating a comprehensive food safety culture that is embraced throughout your organization should be one of the primary goals of senior leadership. Through proactive, well-executed, systematic food safety, the entire industry becomes stronger.

Developing a Culture of Food Safety

There is no one size fits all paradigm for instituting an effective and sustainable food safety culture. While individual organizations may trek different paths toward fulfilling this mission, they share one uniform goal: keeping consumers safe.

Following active managerial control (AMC) principles, your food safety management system should strive to:

  • Recognize potential foodborne illness hazards in day-to-day operations
  • Define standard operating procedures for critical steps
  • Monitor the effectiveness of actions utilized to control hazards
  • Train employees to prevent hazards by following specific control procedures
  • Have certified food protection managers on staff

Chick-fil-A, a family-owned and privately held restaurant company, prides itself on living up to high food safety standards. Chick-fil-A food handlers wear color-specific gloves for various kitchen tasks to avoid cross-contamination. Staff members use disposable sanitizing wipes, rather than reusable cloth towels, to clean dining tables and customers in eating areas are provided with pre-moistened sanitizing hand wipes. As a ServSafe certification training partner, Chick-fil-A is a staunch believer that exemplary food safety procedures result in higher quality food and enhanced profit margin through prevention.

Learn more about how Chick-fil-A and other high-performing companies are prioritizing food safety as a part of workplace culture in our whitepaper, Developing a Culture of Food Safety.

Do You Have a Culture of Food Safety in Your Organization?

How do you know if your organization is prioritizing food safety and fostering a culture of food safety throughout? Download our Score Your Organization worksheet to analyze your brand’s food safety culture and score your organization on essential food safety management principles. What you discover might surprise you.

The Role of Artificial Intelligence in Restaurants

The Role of Artificial Intelligence in Restaurants

by Michael L. Kasavana, Ph.D., CHTP, CFTP MSU/NAMA Professor, Emeritus IFBTA Education

Executive Summary

As prolonged wait times, production mistakes, supply chain challenges, and labor shortages continue, restaurants are turning to artificial intelligence (AI) to alleviate and correct problem areas. While the popular thought of AI in restaurants congers up images of kitchens staffed by trained robots, this by no means captures the realities of the technology. The most common ways AI is changing restaurant operations is by reducing human errors, containing escalating costs, enhancing production accuracy, adherence to safety standards, and redefining the customer experience. Restaurant operators can benefit from AI processes designed to increase capacity, advance forecasting precision, and accelerate production, while enabling growth. Additionally, AI-enabled machines and virtual assistants can be assigned to effectively conduct customer communications, reservations, and recommendations while providing adapted ordering.

The International Data Corporation (IDC), a global provider of information technology and publisher of the report, ‘AI Strategies View 2021 Survey’ identified the primary business objectives of AI as accelerating innovation, improving operational efficiency, and enhancing customer experiences.

Survey results basically established AI as the key to sustainable competitive advantage. Lightspeed analytics’ 2021 Global State of the Hospitality Industry Report’, projected the growth of AI in US restaurants at a steady pace for the foreseeable future. The study noted that at least fifty percent of operators were planning to implement some form of AI technology in the near term and revealed forty- seven percent of full-service restaurant (FSR) operators and thirty-seven percent of quick service restaurant (QSR) operators credited AI with the ability to streamline operations and help survive the pandemic.

AI can be divided into three main disciplines: machine learning, computer vision, and natural language processing. Machine learning involves mathematical algorithms that are capable of drawing conclusions from processed data, over time. For example, the ability to accurately forecast sales volumes based on historical observations. Computer vision involves acquiring high-level understanding based on digital images or videos. For example, developing visual authentication using facial recognition. Natural language processing is concerned with the interactions between computers and human language. For example, the process of transcribing voicemail into text. Suffice it to say, the restaurant industry is finding credible ways to apply artificial intelligence though insights and expectations gained via data processing.

AI Life Cycle

In the phData guidebook ‘How to Implement a Successful AI strategy’, the authors point to the stages of an AI project life cycle. The four project stages being: discovery, modeling, deployment, and monitoring.

Stage 1: Discovery – collecting relevant information that can guide strategic decisions is critical to a successful AI solution. Discovery centers on use-case situations. Subcategories include gathering, exploring, and understanding.

Stage 2: Modeling – operationalizing AI solutions require identifying infrastructure components that support a restaurant application. Subcategories include experimenting, model training, and validating.

Stage 3: Deployment – selecting the most appropriate AI and ML applications can be difficult given the increasing number of suppliers in the space. It is important to identify workable and feasible solutions. Subcategories include serve modeling and integrating.

Stage 4: Monitoring – probably is no restaurant that is completely prepared to pursue an AI initiative without experiencing gaps and oversights prior to reaching a fully deployable solution. Subcategories include logging, visualizing, and alerting.

AI Benefits

Artificial Intelligence combines multiple concepts of mathematics, statistics, physics, and computer science in a way that formulates a feasible solution. AI enables a computerized device to mimic human behavior and perform tasks that normally require human intellect. AI captures data from a surrounding environment and reacts to it in a way that enables multi-tasking with minimal resource displacement. AI applications include learning, reasoning, and perceiving using machine learning, computer vision, and natural language processing. The objective of AI is to drive business processes with creativity and innovation.

AI technology applied in restaurants can interact with customers, take orders, interface with point of sale (POS) systems, cycle production to service, and perform many other functions. A few of the broad benefits of applying AI in restaurants, include cutting costs, reducing errors, customizing orders, improving customer service, and identifying new customers:

  • Cost containment – AI technology can be used to automate repetitious tasks, such as taking reservations or entering orders into a POS terminal. Efficient order capture, forecasting, and job streamlining can result in less money being spent on operations, thereby leading to lower overall
  • Error reduction – human error is attributable to many things that can go wrong in a foodservice business. For example, a server might misunderstand a customer’s order, resulting in production of an incorrect menu Given AI order capture and placement is digital, there are fewer errors.
  • Customized orders – AI provides enhanced customer control during the ordering process thereby providing a platform for more personalized ordering.
  • Improved customer service – by embracing AI’s ability to perform specific tasks, employees are free to focus on providing exceptional customer service.
  • Identifying new customers – AI technology can improve marketing efforts that allow the development of customer profiles to identify new target markets. In addition, AI can help with retaining customers through remarketing efforts that incentivize repeat

AI Genres

AI can be divided into at least three distinct genres: 1- machine learning (ML), 2- computer vision (CV), and 3- natural language processing (NLP).

Machine learning takes AI to the next level. ML technology allows computers to not only retain   data but also to apply complex formulas to generate predictions about events or human behavior based on historical patterns. Machine learning is a field of inquiry devoted to understanding and building methods that leverage information to improve task performance. It is a part of artificial intelligence that is able to learn and adapt without following explicit instructions. ML relies on algorithms and statistical models to analyze and draw inferences from data patterns. Machine learning is used by platforms like YouTube TV, Netflix, and Spotify that suggest new content based on a user’s personal preferences. Similarly, restaurant AI applications can promote menu specials and upselling to candidate customers given ordering history.

Computer vision is an interdisciplinary scientific field that deals with how computers can gain understanding from digital images or video. Computer vision is a field of AI that enables systems to derive meaningful information from digital, visual inputs and, in turn, to take actions based on the information. Different types of computer vision include image segmentation, object detection, facial recognition, edge detection, pattern detection, image classification, and feature matching. The goal of CV is to enable computing devices to correctly identify an object or person and to take appropriate action.

Natural language processing (NLP) refers to the branch of AI that enables computers to understand text and spoken words in much the same way human beings do. NLP is concerned with programming computers to process and analyze large amounts of data. Apple’s Siri, Google’s Hey Google, Microsoft’s Cortana, and Amazon’s Alexa are examples of personal digital assistants (PDAs) capable of recognizing a user’s voice and applying AI in response to queries. Additionally, spell check, autocomplete, and spam filtering are examples of other NLP in action.

AI in Restaurants

With respect to restaurants, many AI solutions are intended to automate rote tasks or job functions. Equally important are related cost savings and marketing strategies. Note: the following twenty foodservice use cases are representative, but not assumed exhaustive.

Integrated Inventory and Purchasing–tracking historical inventory and purchasing data in search of trends leading to real-time recommendations

Demand Forecasting – menu item sales projections emanating from transactional data, bundling campaigns, digital marketing, cross-selling, and upselling.

Predictive Maintenance – embedded scheduling benchmarks enabling enhanced maintenance of operational and transactional procedures.

Task Automation – the reduction or elimination of repetitive tasks based on the redesign of functions through automated processes.

Virtual Assistant – customer use of smart device to search for restaurants, locate reviews, menus, and placing ordered and payment via a smart device.

Proactive Ordering – machine learning-based decision technology to predict what menu offerings are most likely to be preferred by customers.

Voice Recognition – phone answering technology capable of taking messages, booking reservations, building waitlists, and voice ordering with POS integration.

Facial Recognition — recognizes customer at the drive-thru, displays past orders, and allows for payment via face identification.

Order Clarity – AI platform capable of handling complex, multilingual, multi- accent, and multi-item conversational ordering.

Robotics – the role of robots performing hosting, production, and service processes in restaurants. Also, implementation of drone devices.

Loyalty Programming – monitoring and management of marketing strategies designed to encourage, reward, and incentivize business

Automated Marketing — AI tools available for digital marketing campaigns, emails and social media posts aimed at maximizing views and click-throughs.

Chatbots – similar to online chatbot adjustments can be made for restaurant assistance in handling guest queries and avoiding unanswered contacts.

Staff Scheduling — AI-enabled software can correlate staffing and sales data to determine trends and patterns in peak and slow time traffic requirements.

Self-Service Kiosks – devices that increase capacity and accelerate ordering, preparation, and payment while providing the power to control and customize.

Personalized Service – customer data collection from online ordering and digital marketing can lead to personalized services.

Waste Reduction — reducing food waste by fine tuning purchases to meet inventory needs and thereby avoiding expiration dates and excessive buying.

Customer-facing — conversational AI apps can greet customers, take orders, transfer orders to point of sale (POS) systems and perform related functions.

Optimized Delivery — AI can assist delivery drivers locate the most efficient routes, utilizing real- time map data, for multiple deliveries in a single trip

Delivery Tracking – enables awareness of progress by delivery services by allowing customers to view a tracking map with text message updates.

Industry Experiences

Briefly, Checkers & Rally’s found that an AI voice assistant had nearly one-hundred percent accuracy in taking drive-thru orders, all without staff intervention. Domino’s Pizza successfully uses drone delivery to deliver pizza orders, while Marco’s Pizza employed proprietary voice-to-text ordering using conversational AI. Cali-Burger employed Flippy the burger-flipping robot to prepare orders. The RoboBurger vending machine relies on a robo-chef platform to grill patties, toast buns, dispense condiments, plate the item, and deliver it piping hot in about six minutes. Chick-fil-A restaurants are testing AI-enabled self-driving autonomous vehicles for delivery. KFC and Wendy’s have both implemented smart kiosks to customize customer experiences and inter-activities.

In more detailed examples, the experiences of McDonalds, Sodexo, Coca-Cola, and Uber Eats represent important, and different, AI models for industry development.

McDonalds Example

McDonald’s created McD Tech Labs after its 2019 acquisition of Apprente, a voice technology firm, which in turn followed its earlier acquisition of Dynamic Yield, a firm that specialized in personalization and decision logic technology. In 2020, McDonald’s announced its Accelerating the Arches growth strategy, which included an emphasis on the 3 D’s: Digital, Delivery and Drive-Thru and integration with AI technologies. The Apprente technology, for example, uses AI to understand drive-thru orders in a way that would automate drive-thru lanes with the potential of replacing drive-thru staff members.

As of December 2021, McDonald’s offers drive-thru service in more than 25,000 locations, including 95% of all US operations, representing 70% of sales in top markets. In addition to implementing drive-thru innovations like express pick-up, express drive-thru, and smaller on-the-go locations, McDonald’s is also looking to improve ordering and payment functions. Apprente technology has been described as a voice-based platform for complex, multilingual, multi-accent, and multi-item conversational ordering. McDonald’s hopes that using the solution’s natural language processing and machine learning capabilities have created a faster, simpler, and more accurate drive-thru order-taking process. Reported results include reducing the time it takes to serve drive-thru customers by thirty seconds with increased customer satisfaction. Accompanying such success if the fact that automated order-taking scores an 85% accuracy rating with close to 20% of orders requiring human intervention.

McDonalds is also focused on order prediction based on digitization embedded into smart digital displays. As part of its Accelerating the Arches effort to make the drive thru as efficient and convenient,

McDonald’s purchased Dynamic Yield to leverage its decision technology to add personalization and modernize the customer experience. Dynamic Yield is a machine-learning solution that captures customer purchases and links them to presentations on digital ordering displays. In other words, the application digitized the point-of-sale process. Tracking such variables as time of day, order selections, traffic velocity, item popularity, and weather conditions. As a result, McDonald’s can offer digital displays that suggest popular items by weather or specific day part. Measuring traffic can also lead to the displays suggesting faster-to-prepare items to alleviate drive-thru slowdowns. In late 2021, McDonalds sold Dynamic Yield to Mastercard, which plans to continue to work with the fast-food company. McDonalds has stated a preference for investing in the 3D’s: digital, delivery, and drive thru.

Sodexo Example

Sodexo is one of the largest foodservice contractors in the US and continues to focus attention on increasing the convenience of its offerings. By leveraging digital and technological innovation, the company is striving to gain a competitive advantage over its competitors on college campuses. Digital engagement by younger consumers and density have made college campuses a target for delivery innovation. As a result, the company will add virtual brands, ramen vending machines, and checkout-free grocery stores at several campuses. It will deploy three delivery-only virtual brands in partnership with Virtual Dining Concepts, which offers brands like MrBeast Burger, Mariah’s Cookies, and Buddy V’s Cake Slice, on a mobile app. Virtual brand meals will be delivered via robot. In addition, the company recently announced a partnership to bring 1,000 delivery robots to college campuses. Perceiving its customers as having three important concerns (convenience, choice, and quality) making innovation, digital, and social media promotions take on a unique role. An autonomous vending machine manufacturer is partnering with Sodexo to deploy ramen and udon noodle machines to several campuses. These machines will offer meals after campus dining halls close, bridging a common gap in university foodservice offerings. In addition, the company will offer Eat>NOW autonomous campus grocery stores to its high-tech vending and virtual dining concepts with robot delivery services. Sodexo’s new offerings and partnerships with delivery and restaurant tech companies highlight the blurring lines between institutional foodservice and changing restaurant offerings.

Coca-Cola Freestyle Example

Throughout its value chain, Coca-Cola creates and collects a significant quantity of data, including sourcing, production, distribution, sales, and consumer feedback. As a result, Coca-Cola is continuously faced with the challenge of effectively leveraging aggregated data. Coca-Cola Freestyle is an innovative fountain drink dispenser (released in 2008) that allows customers to combine beverages and flavors via an interactive touch-screen display. These fountain drink dispensers are popular, with more than 50,000 units in operation, dispensing 14 million beverages per day.

In order to use the Coca-Cola Freestyle mobile app, consumers need to register using an established social media account. Coca-Cola then applies AI to analyze the social media content of its customers, generating insights on where, when, and how its products are consumed. Based on the consumer behavior and demographics analysis, Coca-Cola can identify which products are popular in which geographic areas. Coca-Cola’s ability to leverage such detailed and comprehensive data provides ways to better serve its customers.

Coca-Cola can use the network of Freestyle machines to acquire a knowledge of how tastes and beverage preferences differ among its customers thanks to AI algorithms in its machines. The data is critical in determining when, where, and how to manufacture and sell new products. For example, collected data from these self-service machines, enabled Coca-Cola to uncover valuable information on client preferences. This research resulted in the launch of at least two new products: Sprite Lymonade and Orange Vanilla Coke. Freestyle machines continue to provide on-demand access to more than 200 sparkling and still beverages, including more than 117 low- and no-calorie options, as well as more than 100 unique variations exclusively offered through these dispensers.

Uber Eats

Uber Eats’ picked up ordering at various stadiums, piloting test autonomous delivery, launching voice ordering and expanding its vouchers program to general consumers to use at events like weddings, food ordering, or rides. Uber Eats is currently testing and implementing voice ordering, starting with English-language capabilities before bringing additional languages online. The service integrates with Google, allowing customers to say a phrase like “OK Google, order food from Sweetgreen,” which would trigger the Uber Eats app. When the app pulls up, the customer can place an order with the requested restaurant via voice. Google Assistant will confirm the order details, and the customer can change or submit the order hands-free through the app. Initially, the Uber Eats’ voice ordering function will be available only on Android devices with other devices launching in the future.

Grubhub added voice ordering through Amazon Alexa in 2017, but it doesn’t appear to be an Alexa skill anymore, according to Amazon’s website. Diners were able to use various Amazon devices to ask about the past three orders and reorder from their favorite restaurants. While DoorDash doesn’t currently support voice ordering. Its products do work with screen readers and other assistive technology, however.

Uber Eats’ is offering in-venue mobile ordering to select stadiums, allowing guests to order and pick up food or merchandise without waiting in line. Additionally, the app will be able to identify the stadium and provide a list of specific foods available. Uber Eats will also identify the proximity of each concession to the individual.

AI Disadvantages

From a cost-benefit perspective, AI solutions are not without disadvantages. Such things as expense, inflexibility, intimidation, not-productivity, and inelastic decisions should be considered. Briefly, these five items deserve consideration:

  • Expense – an application simulating intelligence can be complex and costly.
  • Inflexibility – solution becomes fixed, without innovation or creativity iterations.
  • Unemployment – potential loss of jobs can create a fear in workplace staffers.
  • Non-productivity – solutions may lead to unmotivated staff member performance.
  • Inelastic – AI algorithmic solutions lack ethics and morality capabilities.

Summary

Artificial intelligence has the potential to transform the restaurant business by unlocking powerful insights and predictions. It is important to note that without taking a strategic approach, most AI projects and initiatives are likely to fail to create value. While AI seems like a complex and inappropriate solution to many restaurants operating problems, it has been shown to present many beneficial outcomes. Industry practitioners foresee AI as having long-term applicability given its many characteristics and features. For example, AI predictive technology can be used to manage inventory, staffing, menu pricing, sales forecasting, and more. AI in restaurants is more than a trend; it’s likely the future of the industry as it can streamline operations, reduce costs, and improve profitability.

Full Article and Graphics Available Here

 

Florida Restaurant & Lodging Association Buyers Guide

The Florida Restaurant & Lodging Association (“FRLA”) has again partnered with Overland, KS-based Strategic Value Media, a leading nationwide provider of print and digital media solutions to the national, state and local trade and membership associations, to produce the 2022 edition of the FRLA Buyers’ Guide, the premier resource of relevant products and services for residential restaurant industry professionals. This will be the 8th year that the Guide will be produced.

A representative from Strategic Value Media may contact you by email or phone to inquire if you want to enhance your listing in the Buyer’s Guide. Please know this is a legitimate call and that SVM is partnering with FRLA to provide our members this resource for advertising your products and services.
Like the 2021 version, the 2022 edition of the Buyers’ Guide will feature updated and expanded company and product listings, in addition to other valuable information relating to the restaurant industry. The Buyers’ Guide provides users with an efficient way to browse for goods and services and offers restaurant, hotel and casino suppliers exceptional visibility by showcasing their products and services to a targeted, industry-specific buyer group.

The Buyers’ Guide is accessible through the FRLA website at frla.org and will be updated soon with new advertisements and information. To view the current Buyers’ Guide – click here. We encourage you to take advantage of this exceptional opportunity to highlight your products and services in the Buyers’ Guide.

To learn more about advertising your products or services in the Buyers’ Guide, please email frla-advertise@svmmedia.com.

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UHC Manager’s Tip of the Month: 988 is the new Suicide & Crisis Lifeline

Note: This piece focuses mainly on the topic of suicide, but the new hotline can be used for any mental health emergency. This topic may be sensitive for some readers.

Statistic:In 2020, an estimated 12.2 million American adults seriously thought about suicide, 3.2 million planned a suicide attempt, and 1.2 million attempted suicide.”1

Problem: Suicide and its associated stigmas exist in the hospitality industry just as they exist elsewhere. Those considering (or having considered or attempted) suicide are experiencing a tremendous amount of pain already (see “warning signs” below for reference), and the stigma surrounding their experiences can make their situation even more unbearable. Stigmas toward those who have thought about or attempted suicide can come in the form of unwanted assumptions, being perceived as fully intent on dying2, weak and unable to cope with problems, selfish, thoughtless, or attention-seeking3. This impacts many involved: “stigma toward suicide moves parallel to the problem of perceived stigma for both those who have attempted suicide and by [their] family members.”3 Surviving family and friends may also feel anger, guilt, symptoms of depression or anxiety, and even have thoughts of suicide themselves, making the issue of suicide far-reaching.1

Many people who feel conscious of this stigma have difficulty seeking help and even discussing their suicidal thoughts with their family and peers.2 This is a huge barrier to suicide prevention, not to mention how the stigma is experienced systemically within health care, insurance policies3, and employment2.

Solutions: Suicide and its stigmas may seem like daunting topics to tackle as a person in a leadership position, but there are simple ways to encourage prevention and shift the culture:

  • Promote connectedness in your workplace by thoughtfully communicating with your team.
  • Establish company policies or programs that make mental health support accessible, such as an employee assistance program, telehealth, or simply demonstrate that you are there to support and help your employees.
  • Be aware of warning signs:
    • talking about wanting to die, hurt oneself, being a burden, or feeling trapped or hopeless
    • withdrawing or feeling isolated
    • displaying extreme mood swings
    • increasing alcohol or drug use
    • acting severely anxious or agitated2,4
  • If concerned about a team member, sensitively ask questions such as:
    • “How are you coping with what’s been happening in your life?”
    • “Are you thinking about hurting yourself or dying?”
    • “It sounds like things are really rough right now, and I am concerned about you. Are you thinking about killing yourself?”2,4
  • Spread the word in the workplace about the new Suicide & Crisis Lifeline, 988, that connects people who are suicidal or in any other mental health crisis to a trained mental health professional.5

Sources:

  1. Centers for Disease Control and Prevention. Facts About Suicide. www.cdc.gov. Published January 21, 2021. https://www.cdc.gov/suicide/facts/index.html
  2. Breaking the Stigma about Suicide – Mental Health – Wellness and Health Promotion – Seattle University. www.seattleu.edu. https://www.seattleu.edu/wellness/mental/stigma/
  3. Carpiniello B, Pinna F. The Reciprocal Relationship between Suicidality and Stigma. Front Psychiatry. 2017;8:35. Published 2017 Mar 8. doi:10.3389/fpsyt.2017.00035
  4. Mayo Clinic Staff. Suicide: What to do when someone is suicidal. Mayo Clinic. Published 2018. https://www.mayoclinic.org/diseases-conditions/suicide/in-depth/suicide/art-20044707
  5. Chatterjee R. The new 988 mental health hotline is live. Here’s what to know. NPR. https://www.npr.org/sections/health-shots/2022/07/15/1111316589/988-suicide-hotline-number. Published July 16, 2022.

Cash Discount vs. Surcharge Program Myths

There is much confusion and misinformation regarding cash discount and surcharge programs.  Let’s dispel the myths.

What’s the difference?

Surcharge

A fee applied to a published price when paying with a card.

Published prices are the price paid with cash.

Cash Discount

A discount on a published price when paying in cash.

Published prices are the price paid with a card.

What’s the problem?

Merchants believe that by adding a service fee to all card transactions, they are offering a “cash discount program.”  However, these transactions are not excluded from Visa surcharge rules simply because the merchant declared that a service fee is added to all transactions and a discount is applied for cash sales. Adding any fee to a displayed price is a surcharge.

While it may sound like a minor difference, it’s actually very important in terms of legality and compliance with card brand rules.

When can an additional fee be added to published prices?

The ability to surcharge only applies to credit card purchases, and only under certain conditions. Surcharges cannot be applied to PIN-capable debit cards, even if the PIN is not. Being used for the transaction.

Simple Rules

Merchants can participate in a compliant surcharge program, but there are some rules and regulations to keep in mind.

  • Merchants must register with credit card brands before implementing a surcharge
  • Surcharge can only be applied to credit cards – debit cards, gift cards and prepaid cards are excluded
  • Surcharge should not exceed the merchant cost of acceptance, capped at 4%
  • Signage must disclose the surcharge at the point of entry and acceptance
  • Some states do not allow surcharge

Surcharge Solution

Heartland’s compliant credit surcharge program is available to clients in any state where permitted by law.*

  • Automates the addition of surcharge at checkout when appropriate
  • Complies with card brand rules – applying surcharge to regular posted price
  • Deposits sales proceeds and surcharge revenue the next day

Contact Jimmy Smith at Jimmy.Smith@e-hps.com to learn more.

*As of early 2021, only Colorado, Connecticut, Kansas, Massachusetts, Oklahoma, and Puerto Rico continue to prohibit surcharging.  Note that surcharging laws have been overturned by court decisions in several other states but are still on the books.

UHC’s July Manager’s Tip: “The Customer is Always Right”

Statistic: 41% of hospitality workers report that one of the most stressful elements of their job is feeling like the customer always has to be right1.

Problem: “The Customer is Always Right”, as a motto, is often used when referring to customer interactions that put employees in a difficult position. While customer satisfaction is valuable and necessary, it does not have to come at the expense of an employee’s morale and dignity. In one study, 74% of respondents had experienced verbal abuse from a customer, and 62% said they did not feel taken care of by the industry2. Managers have an opportunity to minimize the stress of a situation by showing they value and respect teammate perspectives and experiences while still making the customer feel heard.

Solutions: Let the team know that you have their backs and demonstrate your support for their success as well as the business’.

  • Acknowledge the stress of the job and discuss policies and protocols that employees can take advantage of to support their success, such as taking brief breaks and reaching out to managers for support.
  • Start by assuming best intent; give your teammate the benefit of the doubt and hear them out while still attending to the customer’s needs.
  • Stay positive while speaking with the customer and avoid using negative language related to your team member.
  • If applicable, be honest with the customer about staffing shortages or other challenges.

Sample Language …

To employee: “That sounds like a tough situation. Can you explain what happened from your end? I would be happy to think it through with you.”

To customer: “I apologize for the misunderstanding. Let’s find a solution to make things right,” or “I understand, and I appreciate your patience. We’re all doing the best we can under the circumstances.”

Sources:

1Creating a Culture of Support in the Workplace: A Best Practices Resource for Managers in the Hospitality Industry – Active Minds

2One in Five Hospitality Workers Suffer from Work-Related Severe Mental Health Issues – RSPH (2019)

How to pick the right POS system for your bar

Bars, nightclubs, pubs, lounges, cafes, and bistros can all take advantage of the many features POS (point of sale) systems offer to streamline their processes and improve customer loyalty. Whether you’re running a sports bar or the latest hot spot, you need a platform for payment processing.

The best bar POS systems can do a lot more than just payment processing; they can be used in tablet form by your bartender and waitstaff to accept orders, they can open a bar tab for a customer who might want to order more drinks as the night goes on, they can help with inventory tracking in the back, they can integrate promotions such as happy hour deals as well as loyalty programs, and they can be used for bar management, customer management, and employee management. So getting a good POS system gives you an all-in-one, user-friendly solution that will make running your bar that much easier.

Whether you’re just looking to make the day-to-day operations of your bar a lot smoother or you are trying to grow your small business, a point of sale system can be invaluable. It can take a lot of the hassle away, leaving you free to focus on plans, strategies, innovations, and employee management.

What should you look for in a bar POS system?

There are many choices when it comes to bar POS systems, and the best choice for your business is one with maximum functionality and a reasonable price point. Of course, the fact is that each bar, lounge, café, or nightclub is different and offers different benefits to its customers. You may specialize in ambiance, in different types of drinks, in creating a cozy interior, or in offering cutting-edge music to your customers. But there is one thing that all bars and nightclubs have in common: they want to provide good service to their customers, and they want them to keep coming back night after night. In order to do this, there are certain features you might need from a good point of sale system.

Mobile POS systems improve the customer experience

For a full-service bar, you need POS software that is compatible with the iPads/tablets you provide to your bartender, waitstaff, or customers. These tablets are user-friendly and offer several functions. They help with menu management because they allow you to change your menu, depending on the ingredients you have available. They enable bartenders and waitstaff to accept orders from customers and prompt bartenders and waitstaff to mention your specials of the day to the customer. And they can also be used for payment processing right there and then, in the way that the customer prefers.

Although some people still like to pay for their drinks in cash, there are many who might prefer to just enter their card information into the iPads/tablets or use their smartphones to make a payment. This method is very similar to online ordering, and it shortens the time it takes customers to pay. They don’t have to wait for a bill, then provide a payment method, then wait for the waitstaff to come take it to the cash register and come back with change from the cash drawer or a card reader.

A mobile POS system is also beneficial to the waitstaff of a full-service bar because it prevents them from having to keep going back and forth to the cash register. They can focus all their efforts on making sure that the customer is happy rather than running around to complete a process that ought to be quick and easy.

POS systems offer fraud protection

Unfortunately, every business is vulnerable to fraud, and restaurants and bars are no different, as thieves may try to use stolen debit or credit cards to pay their bar tab. However, your POS software can provide some protection against this by allowing you to preauthorize cards before you open a bar tab. If the customer presents a card, your bartender can run it through the system to find out if it’s been reported lost or stolen, and the bar POS software will give you an answer in real-time. In such cases, the point of sale system will deny payment through that card even before a bar tab has been opened, which means that the customer will have to give you a different method of payment.

As a bar or nightclub owner, you want to make sure that your customer is happy, but you also want to make sure that you protect your small business against possible fraudsters. A bar POS software that does this in addition to ringing up sales will give you some peace of mind.

A POS system makes ordering easy

As we mentioned earlier, the best POS systems are mobile and hooked up to your waitstaff’s iPads/tablets. Most systems offer menu management, so you can vary the menu on the tablets so that it reflects your inventory. Your waitstaff will never again have to tell a customer that you don’t have a menu item listed on the menu.

In addition, the functionality of a POS system includes the capacity to keep an open bar tab. This is a convenience that many bars and lounges offer their customers. If you open a bar tab for the customer, that means that they just have to tell the waitstaff when they want another round of drinks. They don’t have to bring their credit card out every time. The waitstaff will be able to take their card at the beginning of the evening, start the bar tab, and return the card right away. At the end of the night, when the customer leaves, they can process the tab without even asking for the card again.

This method of tableside ordering makes things much more convenient for both the customer and the waitstaff. The customer doesn’t have to interrupt their conversation or their enjoyment of the music by going through the buying process all over again. And the waitstaff doesn’t have to disturb them to ask them to pay up.

A POS system also allows waitstaff to keep multiple tabs open at the same time, so even if all the customers at a table want to open a tab, your POS system can give you the capacity to do so in real-time.

Your POS system should enable you to track sales

At the end of the day (or the week, or the month) you want to be able to sit down and take stock of how well your small business is doing. This applies to any business, but it’s particularly important for bars and nightclubs that have just started because the first six months can make or break a small business.

A POS system can help you to track sales by creating sales reports that tell you exactly how much you’ve made in terms of sales, either on a daily, weekly, or monthly basis. If you prefer, you can get quarterly printouts as well. Additionally, your POS system can also give you a breakdown of how much of the money you made was on drinks and how much came from food.

POS systems for bars can also create reports that offer drink-by-drink breakdowns as well. This can be really useful to a bar owner because then you can try and promote the popular drinks and food items even more. Or you can introduce new items that are similar to those items and see if they take off. In this way, having a sales report can help you with business decisions and show you where your business needs to focus.

Your POS system should help you with inventory management

Inventory tracking is important for bar owners so that the bar always has supplies on hand for the most popular drinks. A POS can help you do this as well by maintaining a database of everything that you usually keep in the back. It may take some time to set up this database, but once you have it, all you have to do is mark off how much you have available of each item.

Staff members can update inventory too. So anytime they see that inventory items are running low, they can make a note of it, thus preventing you from running out of those items completely. And you can set up your POS to prompt you to buy the items you need if they are running low.

A POS helps you run promotions and loyalty programs

Businesses can attract new customers by running promotions. Most bars have a happy hour where they offer drinks at discounted prices. This might attract customers who don’t mind taking a chance on a new place as long as the drinks don’t cost too much. And if those customers find that they like the bar, they might return during regular hours as well. Often, people who come in during happy hour end up staying longer too.

The best POS systems will automatically change prices during happy hour or other sales and change them back again after happy hour is over. Once you set them up to do this, you don’t have to worry about it on a day-to-day basis.

There are also other types of loyalty programs that businesses run. For example, you might offer free food and drinks to regular customers after they’ve purchased a certain amount already. Some loyalty programs at nightclubs allow members to skip the line that forms outside and walk in without having to wait. Customers who are members of a loyalty program can also take advantage of coat checks and bottle service.

Gift cards are also a great way to entice new customers. If one of your regular customers gives a friend a gift card, that friend might end up becoming a regular too. And a good POS system will help you to load the money/points on a gift card and apply them when the customer uses it.

Should you run a bar without a POS system?

Obviously, there were bars long before there were POS systems. So it’s not completely impossible to run a bar without investing in a POS system, but it does put a lot of pressure on employees who not only have to make sure that customers get their orders but also keep track of the money coming in and money going out. An employee who is overtaxed is likely to make a lot of mistakes, which is clearly bad for your business.

Without a POS system, you also miss out on all the add-ons we’ve discussed, especially the management tools. You’ll have to do your inventory management manually, which means that there is greater scope for human error. You’ll also have to keep track of all the open tabs. If you or your waitstaff forget about even one open tab, that’s going to mean a loss for your bar.

Plus, it becomes more difficult to figure out exactly what direction your business is going to take in the near future when you don’t have access to sales reports from your POS system. Sure, you can sit down and calculate all your sales before making business decisions, but this is a lengthy procedure and wastes a lot of time, which could be better spent doing something else.

So it might be possible to run a bar without a POS system, but it’s certainly a lot more difficult. Instead, it makes sense to invest in a good POS system like Heartland, which gives you all the above benefits and more. It’s easy to train your employees to use the system, and you get to pick and choose the features that you want to use. Heartland’s POS systems offer very reasonable monthly fees and substantial value to bar owners.

Ready to get a POS system in place at your bar? 

Heartland is the point of sale, payments, and payroll solution of choice for small businesses that need human-centered technology to sell more, keep customers coming back, and spend less time in the back office. More than 750,000 businesses trust Heartland to guide them through market changes and technology challenges, so they can stay competitive and focus on building remarkable businesses instead of managing the daily grind. Learn more at heartland.us

June Manager’s Tip of the Month from UHG

Welcome to Manager’s Tip of the Month! Each month we’ll spotlight an issue that is felt by employees in the hospitality industry. Then, we’ll provide insight on how managers and employers can address the issue and help build a positive workplace culture.

June: Equitable break policies

Statistic: 66% of hospitality workers surveyed report that offering consistent breaks for all employees would be a meaningful strategy to support their mental health1.

Problem: Due to the nature of hospitality work, employees often find it challenging to be positive and productive for long periods of time without breaks. Across all position levels, people may feel dejected, resentful, and exhausted if there is no time to step away. While it can be difficult to offer breaks consistently in hospitality work, the effort is worthwhile: “…breaks can reduce or prevent stress, help to maintain performance throughout the day… help to reset your mood… and [a break] increases levels of energy at work and decreases exhaustion”2.

Solutions:

Ideal Scenario: Show your team you care by providing clear guidance on when and how everyone, not only smokers, can take short breaks throughout the day.

  • Ensure all employees have access to breaks with clear protocols that ensure breaks are covered and communicated.
  • If possible, a manager can offer to take on duties for a few minutes when someone needs a quick break to cool down or breathe. That can make a world of difference.

Next Best Scenario: Things can get hectic at work. Maybe you’re short-staffed on a busy day, or there are other factors that make ensuring breaks seem impossible.

  • Be transparent with your team: clearly communicate your support and your effort to provide breaks even if you are unable to do so. This will demonstrate respect and care for the well-being of your team.

Sources:

1Creating a Culture of Support in the Workplace: A Best Practices Resource for Managers in the Hospitality Industry – Active Minds

2Foundation for Success: The Importance of Taking Breaks – The Wellbeing Thesis