Restaurant And Hospitality News – June 22, 2015

By Christine Kern, contributing writer

In news this week, the NRA has opposed an FDA ban on all artificial trans fats, HTNG has introduced a Virtual Payment Cards Specification to ease the use of virtual credit cards, consumers are expecting more tech features from restaurants, and Schlotzsky’s is aiming to expand into breakfast and dinner options.

FDA Bans All Artificial Trans Fats In Foods, NRA Opposes Ban

The FDA has finalized a 2013 determination that partially hydrogenated oils ( PHOs) are no longer “Generally recognized as safe” (GRAS), stating that PHOs are not GRAS for use in human food.  “We made this determination based on the available scientific evidence and the findings of expert panels,” says Susan Mayne, Ph.D., Director of FDA’s Center for Food Safety and Applied Nutrition. “Studies show that diet and nutrition play a key role in preventing chronic health problems, such as cardiovascular disease and today’s action goes hand in hand with other FDA initiatives to improve the health of Americans, including updating the Nutrition Facts label,” she adds. The FDA is providing a three-year compliance period, allowing industry to gradually phase out the remaining uses over a three-year period, or seek food additive approval for those uses. “The FDA’s action on this major source of artificial trans fat demonstrates the agency’s commitment to the heart health of all Americans,” acting FDA commissioner Dr. Stephen Ostroff said in a statement. “This action is expected to reduce coronary heart disease and prevent thousands of fatal heart attacks every year.” While many restaurant chains have already eliminated artificial trans fats, including Subway, Burger King and McDonald’s, and Yum! Brands Inc. has committed to eliminating artificial trans fats this year smaller and independent operators may be having a harder time removing them from their food . The National Restaurant Association has opposed a complete ban of artificial trans fats, noting that restaurants have been moving away from their use voluntarily, and that it is “virtually impossible” to fully eliminate trans fats. “Providing patrons with safe, wholesome and enjoyable food is the restaurant industry’s top priority,” Joan McGlockton, vice president of food policy for the association, said in a statement Tuesday. “The National Restaurant Association’s members work diligently to offer choices that meet a variety of consumers’ preferences. Today’s announcement out of the FDA comes at a time when restaurateurs have largely reduced or eliminated partially hydrogenated oils from menu items.” McGlockton asserted, “As the restaurant and foodservice industry works to comply with FDA’s decision, we will continue to educate our members and encourage FDA to promptly review and respond to any food additive petitions regarding the use of low levels of (partially hydrogenated oils).”

Hotel Association Announces Virtual Payment Cards Specification To Ease Use of Virtual Credit Cards

Hotel Technology Next Generation (HTNG), a membership association that brings together hospitality companies and technology innovators to address industry challenges, has announced the release of the Virtual Payment Cards Specification, providing a standard mechanism for hotels to ease the acceptance of virtual credit cards.  As the use of virtual credit cards increases, hotels are facing challenges distinguishing virtual credit cards from traditional cards, an important distinction since different business rules apply to each type of card.  Designed to address the inefficiencies and confusion developing from this practice, which includes guest service issues and declined payments, the new Virtual Payment Cards Specification means that distributors will no longer have to send faxes or emails to hotels to communication the business rules for each payment.  The full HTNG Virtual Payment Cards Specification document is available here.

Survey Finds Customers Have Rising Tech Expectations From Restaurants

A recent report from Technomic Inc. has found that American consumers have rising expectations from restaurants when it comes to offering tech features, according to the Nation’s Restaurant News.  The survey also found that pizza chains are leading the industry in using cutting-edge technology.  The report concluded that tech features are crucial to industry success, and that the availability of technology will strongly influence the consumer’s restaurant selection process, especially among Millennials.  “Technology-friendly service in restaurants has become important to consumers broadly, and to Millennials and Generation Z customers, it’s essential,” said Colleen Rothman, manager of consumer insights for Technomic. “Consumers will continue to look to pizza chains and fast-casual brands for the latest and greatest digital platforms, but they also will expect all restaurants to integrate many technologies that have become a fact of daily life everywhere.” Domino’s ranked highest for tech features, followed by Papa John’s, Pollo Campero, Chick-fil-A, and Pinkberry in the top five spots. Ben & Jerry’s, The Habit Burger Grill, The Capital Grille, Starbucks, and Marco’s Pizza rounded out the top ten. And tracking loyalty points and rewards is the most important tech feature for consumers, particularly to Millennials, who also stressed the importance of online and mobile ordering.

Schlotzsky’s Expands Menu With Pasta and Breakfast Offerings

Schlotsky’s has unveiled the addition of four new oven-baked pasta dishes, three specialty ciabatta sandwiches, and a new gourmet pizza paired with their Italian chopped salad, according to QSR Magazine.  It is also testing breakfast offerings with Cinnabon, according to the Nation’s Restaurant News.  The pasta offerings are designed to bridge the lunch and dinner crowds, and chief marketing officer Mark Mears explained to the Nation’s Restaurant News that “We feel it’s important to satisfy what guests are looking for, and they are clearly looking for a heartier meal and something a bit more than a sandwich, chips, and a drink.  It’s important for us to offer a high quality, wholesome and hearty dinner item so they don’t have to go to a casual-dining restaurant.”  Mear explained, “We want to be seen as an all-day opportunity. [The breakfast pilot  has] been pretty much an ops test to see if we can do that right, and then we’ll put some marketing behind it to see how high is up,” Mears said. “It allows us to capitalize on our Cinnabon partnership with our sister company in Focus Brands. It gives us instant credibility in breakfast.” Mears said Schlotzsky’s is still in the process of testing breakfast. The new menu items are designed to help Schlotzsky’s break into the broader fare offerings.  “These Italian-inspired additions to our menu elevate what our guests already love about our brand – our high quality ingredients, fresh flavors and adventurous recipes. These hearty meals will provide our guests a way to make Schlotzsky’s part of their entire day, especially family dinner time,” Schlotzsky’s president Kelly Roddy told QSR Magazine.