Restaurant And Hospitality News – November 21, 2016
By Christine Kern, contributing writer
In news this week, McDonald’s is expanding its restaurant “Experience of the Future” to boost customer satisfaction, and all eyes are on the U.S. District Judge as he issues a ruling on the injunction for the new overtime regulations set to take effect on December 1.
McDonald’s Set To Roll Out Table Service And Mobile Ordering
McDonald’s has announced the expansion of the “Experience of the Future” model to more markets, introducing mobile ordering and table service options at U.S. restaurants. The fast food chain has been piloting the service at approximately 500 of its more than 14,000 domestic stores and is poised to roll out the service at more stores in Boston, Chicago, Sand Francisco, Seattle, and Washington, D.C. early next year.
The chain has already introduced the next-generation services in parts of Europe, Canada, and Australia, according to The Motley Fool, not only accelerating the ordering process and improving accuracy but also helping to lower labor costs and improve customer satisfaction rates.
Customers in these pilot stores place orders at the counter or kiosks and choose a seat to wait or their food to be brought out by employees. The change is improving customer satisfaction, McDonald’s representatives report. A complete rollout to all stores is a major investment in terms of remodeling and training, so it would take years to implement.
As the competition to bring in customers increases, the chain has been working to provide more incentive, including the introduction of an all-day breakfast menu and the recent announcement of a new Sriracha Big Mac, but customer visits in the U.S. remain flat, according to the company.
CEO Steve Easterbrook said that customers have become more demanding in terms of service for their dollars, and while going to McDonald’s is supposed to be fun, “the initial stages of it can be quite stressful.” The mobile ordering and table delivery service are designed to help make visits more convenient and enjoyable.
Stores that already have been remodeled to include the kiosks and table service will also prominently feature McCafe drinks and baked goods to attract the growing snack grown and better compete with places like Starbucks and Panera.
Judge Promises To Publish Ruling On New Overtime Regulations
New overtime regulations are scheduled to go into effect on December 1, 2016, but U.S. District Court Judge Mazzant has heard evidence challenging the regulations and has promised to issue a ruling that could affect their implementation, according to Ogletree Deakins. The ruling will be on a preliminary injunction related to a lawsuit filed by 21 states in September that challenges the Department of Labor’s new overtime rules, which more than double the salary threshold of eligibility for overtime pay.
Judge Mazzant said he hopes to issue his ruling on November 22. If the motion for a stay is denied, a hearing is scheduled for November 28, and could affect how or whether the overtime rules will be implemented as scheduled.
Lobbyists continue to work to overturn the expensive new regulations, which would make 4.2 million more workers nationwide eligible for overtime pay, including many in the restaurant and hospitality industries. Legislation designed to postpone the implementation of the new rules for six months was approved by the House of Representatives but stalled in the Senate, and President Barack Obama pledged to veto the bill if it reaches his desk.
There is also a Senate bill that calls for a slower phase-in of the salary threshold over the next five years, and would eliminate automatic increases in the salary threshold every three years. A modified companion bill also has been introduced in the House.
While President-elect Donald Trump has not specifically addressed the overtime rule shift, he has indicated support for a delay or protections for small business, and many in the industry hope that his background as a business man will weigh in their favor. And with the newly elected Republican-dominated Congress, there is new hope for revision or repeal of these new regulations.
“I think there’s a window of opportunity, and we are actively supporting and pushing hard for a legislative solution,” said Shannon Meade, director of labor, workforce policy and government affairs for the National Restaurant Association. “We’re staring down that Dec. 1 deadline and we are urging members to be in compliance. But we’re not giving up the fight.”
U.S. District Court Judge Amos L. Mazzant III was appointed by President Barack Obama, who originally called for the rule change, causing court experts to claim that it is unlikely the injunction will pass, according to the National Law Review.