Restaurant And Hospitality News – July 20, 2015
By Christine Kern, contributing writer
In news this week, a reminder that the hospitality industry cannot ignore the EMV deadline; the FDA delays implementation of the menu labelling requirement; the latest guest satisfaction survey shows all-time high numbers; and P.F. Changs launches a new digital only loyalty program for diners.
Hospitality Industry Needs To Be Prepared For EMV Deadline
This article from The PointofSale News advises hospitality operators not be caught unprepared by the new mandatory EMV chip and Pin compliance that goes into effect on October 1, 2015. TISSL’s Stuart Coetzee provided an overview of the new payment security standards and offered advice for being prepared. Currently, 29.74 of card-present transactions globally now meet the EMV standard, with percentages as high as 96.33 percent in Europe and as low as 0.03 percent in the U.S. To date, approximately 120 million Americans have now received an EMV chip card – a number that should swell to nearly 600 million by the end of 2015. And, as Coetzee points out, hospitality operators will feel the EMV impact just as much as retailers, and thus need to be prepared. The liability shift means that liability moves to the least secure point in the case of fraud or compromise, which in most cases will be the point-of-sale. Hospitality operators will also need to demonstrate that they meet PCI standards, which strive to reduce card fraud by ensuring the security of card data in both card-present and card-not-present scenarios. Coetzee explains, “Hospitality operators need to review and secure all points of entry for card data. This includes online food ordering and accommodation reservation, as well as face-to-face payment of checks. Not only is this good practice to reduce fraud but it also limits the scope of any PCI audit and potential exposure to financial penalty, saving operators cost, resources, and brand damage.”
FDA Delays Implementation of Menu Labeling Requirement
The FDA has announced a delay in the implementation of menu labeling, pushing the deadline to December 2016 and giving restaurants a welcome respite. Citing the need for the agency to provide more clarification on the rules and opposition from supermarkets, the U.S. Food and Drug Administration agreed to delay the rule’s implementation for one year. The agency explained in its statement, “Since the FDA issued the menu labeling final rule on December 1, 2014, the agency has had extensive dialogue with chain restaurants, covered grocery stores and other covered businesses, and answered numerous questions on how the rule can be implemented in specific situations. Industry, trade and other associations, including the grocery industry, have asked for an additional year to comply with the menu labeling final rule, beyond the original December 2015 compliance date. The FDA agrees additional time is necessary for the agency to provide further clarifying guidance to help facilitate efficient compliance across all covered businesses and for covered establishments to come into compliance with the final rule. The FDA is extending the compliance date for the menu labeling rule to December 1, 2016, for those covered by the rule.” As part of the announcement, the FDA also said that it would provide educational and technical assistance to support nationwide compliance, as well as releasing a draft guidance document in August 2015 to address some of the most frequently asked questions about the rule.
Hotel Guest Satisfaction At All-Time High, Study Shows
Hotel guest satisfaction has reached all-time high levels, according to the latest J.D. Power 2015 North America Hotel Guest Satisfaction Index Study. The study, now in its 19th year, found that the number of guests experiencing problems during their stay has also dropped significantly, signaling good news for hoteliers. Using a 1,000 point scale, the study examined seven factors in each segment, including reservation; check-in/out; guest room; food and beverage; hotel services; hotel facilities; and costs and fees. This year’s overall satisfaction rate reached 804, 20 points higher than that of 2014, and the first time it has surpassed 800. There was also a 20 percent reduction from 2014 in the number of guests who reported issues during their stay, representing the lowest figures since 2006. And staff interactions were a determining factor in mitigating problems, the study revealed. “Hotels that proactively meet guest needs have the ability to create a positive guest experience,” said Rick Garlick, global travel and hospitality practice lead at J.D. Power. “While service recovery is extremely important in the hotel industry, it’s most effective when the entire guest experience is a positive one. Hotel staff members need to maintain a proper balance between proactively addressing needs and responding to problems effectively. Doing so can help guests feel good about their selection of the hotel brand and increase the likelihood they will return for another stay or recommend it to others.”
P.F. Chang’s Introduces New “Preferred” Digital Loyalty Program
P.F. Chang’s China Bistro Inc. has announced that it launched a “fully digital customer loyalty program” that promises to simplify rewards for frequent diners. Users can sign up for the new “P.F. Chang Preferred” program via text message or online, and reward points accrue via the diner’s connected phone number. It works at approximately 210 sites. “P.F. Chang’s Preferred is entirely online, so there are no membership cards to keep track of or remember – members simply provide their phone number at the register to earn points,” according to a company statement. “We’ve simplified our rewards and sweetened the benefits to celebrate our most loyal guests,” Jim Umberger, P.F. Chang’s vice president of interactive and loyalty marketing, explained. “Now our guests will have the opportunity to earn and experience members-only perks simply for enjoying their favorite fresh, handcrafted P.F. Chang’s dishes.” The perks include invitations to tasting events and special birthday promotions.