Restaurant And Hospitality News – March 14, 2016
By Christine Kern, contributing writer
In news this week, menu labeling enforcement sees a year delay; restaurants experienced anemic same-store growth in February; and Norwegian Cruise Line brings improved guest experience with tablet-ordering technology.
FDA Delays Enforcement Of Menu Labeling Requirements For At Least A Year
The U.S. Food and Drug Administration has officially pushed back the enforcement of new menu labeling rules in response to a delay included in a spending bill passed by Congress in December, according to the Nation’s Restaurant News. The Menu Labeling Final Rule: Food Labeling; Nutrition Labeling of Standard Menu Items in Restaurants and Similar Retail Food Establishments applies to restaurants and similar retail food establishments if they are part of a chain of 20 or more locations, doing business under the same name, offering for sale substantially the same menu items and offering for sale restaurant-type foods.
In a formal statement, Dr. Susan Mayne, Director, Center for Food Safety and Applied Nutrition, explained, “As a result of language in the omnibus appropriations bill enacted December 18, 2015 (Public Law 114-113 Consolidated Appropriations Act, 2016), FDA is delaying enforcement from December 1, 2016, to the date that is one year after it issues final, Level 1 guidance on menu labeling. The draft Level 1 guidance was issued on September 11, 2015, and FDA is considering all comments received and will issue the final guidance as soon as possible.”
Though no specific timeline has been established for the release of the Final Rule, an agency spokeswoman told the NRN that it’s expected to be published sometime this year. The labeling law has the backing of the restaurant industry, which had pushed for a single federal menu labeling standard to replace the mishmash of laws in states and localities across the country. The federal law also includes retailers that sell prepared food, which compete directly with restaurateurs.
February Saw Anemic Same-Store Sales Growth For Restaurants
Same-store sales grew just 0.4 percent in February, stoking fears of slowed consumer spending at restaurants, according to new data from TDn2K’s Black Box Intelligence through The Restaurant Industry Snapshot. The snapshot is based on weekly sales from more than 23,000 restaurant units and more than 120 brands, representing $57 billion dollars in annual revenue. Average growth rate for the past five months has been 0.1 percent, and sales were affected by several external factors, according to Victor Fernandez, executive director of insights and knowledge for TDn2K.
“On one hand, the 2015 Super Bowl was included in January’s numbers, while this year, the game was played a week later and fell within February’s results,” Fernandez explained. “This meant February’s restaurant sale-store sales were negatively impacted by the shift, since restaurant sales are hurt by this event.”
“On the other hand,” he continued, “Severe winter weather continued to be a factor during February. As an example, the third week of the month saw same-store sales growth over 6 percent boosted by regions in the eastern part of the country that experienced soft sales comparisons due to bad weather last year, and which posted sales growth rates above 14 percent for the week.”
Meanwhile, same-store traffic growth fell 1.3 percent in February, the best traffic performance since September 2015, while average check size grew just 1.8 percent, the lowest increase in nearly two years. The slowdown suggests that brands may be turning to price promotions to entice customers.
“With the winter winding down, we should begin to see the true trend in consumer spending,” said Joel Naroff, president of Naroff Economic Advisors and TDn2K economist. “Right now, consumption is decent but not great….With confidence in good shape despite the issues in the stock markets, it appears that consumer demand for all types of goods and services should start rising with the better weather. The expectation is that we will see a rebound in the March numbers and sales and traffic should be solid the remainder of the year.”
New Ordering System Improves Guest Experiences On The Norwegian Escape
Norwegian Cruise Line launched its new ship Norwegian Escape in December 2015, which is the first cruise ship to employ tablet technology in two branded restaurants on board. This new technology from Custom Business Solutions, puts control of the dining experience literally at its passengers’ fingertips, and represents the commitment to updating technology across Norwegian’s fleet, according to Cruise and Ferry.
“Norwegian Escape is Norwegian’s most advanced and luxurious cruise liner that leverages advanced technology throughout,” says Mark Kansley, senior vice president of hotel operations at Norwegian. “Using state-of-the-art technology in these restaurants is another way to improve our onboard guest experience.”
The District Brew House and Food Republic restaurants aboard Norwegian Escape both feature NorthStar Order Entry, the hospitality industry’s first omnichannel cloud-based iPad POS system, which allows diners to order directly from their table. The NorthStar system is also fully integrated into the ship’s billing system to validate the guest’s payment portfolio. It also can authenticate a guest’s age, ensuring that a purchase can include age-restricted alcohol. The iPads also have aluminum housing with an anti-bacterial coating and are equipped with a power pack system that keeps the iPads charged for extended periods of time. The NorthStar system is also used by full-service and fast-casual restaurants and at amusement parks across the US