Restaurant And Hospitality News – March 3, 2015
By Christine Kern, contributing writer
In news this week, the NRA reports continued optimism in the restaurant industry, McDonald’s is offering a promotion that includes free SMS messaging, and the latest STR data shows U.S. Hotel occupancy rates up 0.4 percent. Also, Ford Fry’s and Hershey Entertainment & Resorts both implement learning resource tools to help keep employees happy and well-trained.
NRA Reports Continued Industry Optimism
According to QSR Magazine, the National Restaurant Association’s (NRA) Restaurant Performance Index (RPI) remained elevated in January, demonstrated continued optimism in the industry. The RPI tracks the health of and outlook for the U.S. Restaurant industry, and saw January as the fourth consecutive month that scored at 102 or higher. January also marked the 23rd consecutive month that the RPI was over 100, signifying expansion in the index of key industry indicators. “A solid majority of restaurant operators reported higher same-store sales and customer traffic in January, which helped keep the RPI well into positive territory,” says Hudson Riehle, senior vice president of the Research and Knowledge Group for the NRA. “In addition, nearly six in 10 operators expect their business to improve in the next six months, with plans for capital expenditures also continuing at a high level.” These facts mark heightened optimism for the industry for the coming months.
McDonalds Offers Free SMS Messaging With Food Purchases
A new promotion in the Philippines has McDonald’s and Smart using mobile data as currency, according to a press release. With every value meal upgraded with fries or a sundae, customers are receiving a coupon that is good for a day of unlimited text and unlimited access to mobile chat applications. "McDonald’s has always provided the best value to its customer by serving great tasting food at affordable prices in a friendly restaurant environment. With this new partnership with Smart, we are able to give our customers even more value with FREE Super Messaging 10, allowing them to stay connected with their loved ones even outside our restaurants,” said McDonald's Senior Vice President for Marketing, Margot Torres. It is unclear whether the promotion will be offered in the United States.
STR: U.S. Hotel Occupancy Rates Rose 0.4% Year Over Year In February
According to Hotel News Now, the STR results for U.S. occupancy for the week ending February 21 are in, and the news is positive. In year-over-year measurements, all three key performance measurements saw increases during the week of February 15-21, 2015, according to data from STR, Inc. Occupancy rose 0.4 percent to 64.0 percent; average daily rate increased 5.7 percent to $117.60; and revenue per available room for the week rose 6.2 percent to $75.26. The data for the week may be viewed here.
Ford Fry’s Develops Its Own In-House Training Institute To Keep Good Workers
In an effort to keep good workers from looking for other opportunities in the increasingly competitive job market, Ford Fry’s restaurants have developed its own in-house “university” and challenged its employees at all levels to attend classes in culinary, beverage, and management techniques, according to Restaurant Hospitality. C.O. O. Toby Franklin explained that the program “came out of necessity more than anything else. If you look at restaurant turnover nationally, in 2013 it averaged about 63 percent. Our attrition rate was 43 percent. Our goal is to reduce it to below 20 percent, but how do you get there?” As a result of the in-house training, Franklin estimates, some 70 individuals have been promoted to management roles. "That’s the success, in my mind,” Franklin says. “If you can create that kind of culture, growth and development, you start to debunk some of those (turnover) myths.”
Hershey Entertainment & Resorts to Create Dynamic Learning Environment with Infor
Hershey Entertainment & Resorts (HE&R)has partnered with Infor to provide employees with flexible training via an online human resources solution, according to a press release. The Infor Learning Management system will help Hershey Resorts unify training initiatives and facilitate mobile and online delivery. The new training program will help to ensure a consistent, superior level of service for all guests throughout the resorts. "We plan to utilize Infor Learning Management not only as a means for delivery, but also as the catalyst to create a company culture around training with dynamic options to meet the needs of every learner," said Derek Mongelli, assistant director of training and development, HE&R.