Restaurant And Hospitality News - November 16, 2015
By Christine Kern, contributing writer
In news this week, Joe’s Crab Shack is the first national chain to test no-tipping; the Holiday Inn Newark Airport is leveraging real-time flight information to boost guest experiences; and the restaurant industry recruitment challenges are at their highest levels since 2006.
Joe’s Crab Shack Leads The Way In Dropping Tipping
In the wake of the announcement by Danny Meyer’s Union Square Hospitality Group and other trailblazers, national seafood chain Joe’s Crab Shack is eliminating tipping from restaurants in participating markets. The chain will raise server wages to $14 an hour, and will offset the rise with 12 to 15 percent price increases, according to Restaurant Business. The policy is being tested at 18 establishments, and could eventually be expanded nationwide, according to CNN. "We picked a broad range of locations with different nuances to see how it responds in each different area," Raymond Blanchette, president and CEO of Ignite Restaurant Group, which owns Joe's Crab Shack, told CNNMoney. "We wanted a random sampling that would be indicative of how a national rollout would be." Blanchette explained, “Ultimately people are paying less and hopefully we are delivering more value. It’s one of the reasons we are testing, to make sure people are judging the total experience and not just menu prices.” Blanchette anticipates that the move will actually serve to reduce overall labor costs and boost the chain’s bottom line.
Holiday Inn Newark Airport Providing Real-Time Flight Info To Guests
Today’s travelers are demanding more and more services tied to their travel plans. In light of this changing guest requirements, the 191-room Holiday Inn Newark Airport located across from Newark Liberty International, has installed the FlyteBoard airline information display by Flyte Systems to provide real-time flight information for its guests. The system provides low-cost property promotions, local events, and flight information. “Our property is directly adjacent to Newark International and nearly all our guests are coming from or going to the airport. That is why we installed the FlyteBoard flight information display, so guests can verify flight times without calling their airline or pulling up an app on their handheld,” said Vanessa Ng, sales representative for the Holiday Inn Newark Airport. “Guests often extend their stay when they see an all-night delay or cancellation. FlyteBoard is a valuable guest amenity for airport properties like ours that care about helping guests have a great stay.”
Because of its proximity to the airport, guests often spend their lengthy delay time in the hotel’s busy lounge until their flights are rescheduled. “Today’s guests are frequent flyers; ‘digital natives’ who are comfortable using technology to help make decisions,” said Scott Triphahn, Flyte Systems vice president. “A hotel’s FlyteBoard puts accurate travel information in their hands so they can navigate their own travel experience. National forecasters predict a challenging ‘El Niño’ winter travel season. This makes access to real-time airline arrivals and departures particularly important for hotel guests and staff.” Many hotels and resorts also use Flyte Systems’ applications to increase revenue with innovative marketing approaches for distressed travelers.
The People Report Workforce index Predicts Highest Recruiting Challenges Ever In Q4 2015
According to the latest People Report Workforce Index, 64 percent of participating companies planned to add hourly staff during Q4 2015, but market pressures on restaurant employment mean that recruiting will be at the most difficult level since 2006, when the measure was established. The report found that the recruiting difficulty rose sharply, from 78.6 to 88.9 in Q3, indicating that it is on the rise. The Workforce Index is produced by People Report, a division of TDn2K, and is based on surveys completed by human resources departments and recruiters across the restaurant industry. It measures pressures on employment levels, recruiting difficulty, vacancies, employment expectations, and turnover. “Recruiting difficulty is at the highest level we’ve seen since we started tracking it,” said Michael Harms, TDn2K executive director of operations.
“We’ve seen the labor pressures building over these past few quarters, and it’s really culminating in this difficulty of finding workers,” Harms told Nation's Restaurant News . “The recruiting difficulty numbers for almost every company are through the roof.” The predicted recruitment difficulties for Q4 are compounded by high vacancy rates and high turnover figures, according to Harms, who explained, “Pressures have increased to where today we are seeing sky-high turnover rates and increased demand for workers and a diminished hiring pool.”
“Looking further out,” he added, “it may be a necessity to make sure not only their compensation offerings are competitive but they may have to re-evaluate their entire employment proposition to make sure it’s aligned with the needs of the changing workforce.”