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Restaurant Business magazine is the leading B2B magazine for South Africa's restaurant, hospitality and foodservice industry.
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Jackie Cameron: Her new culinary adventure
JUNE 2015
Who is killing the restaurant
industry?
CHEFS WHO
SHARE AWARD
How SA restaurant brands are rocking London
FIND IT ALL AT FOODBIZ
I
NOW IS THE WINTER OF
OUR DISCOUNT TENTS
PUBLISHER AND
EDITOR-IN-CHIEF
Hilary Ward
082 330 1981
CONTACT
PO Box 1346 Cresta 2118
Johannesburg
+27 011 782 8636
088 011 782 8636
www.rbmag.co.za
@restaurantbusinessmag
@resbizmag
DESIGN
The Urban Art Room
www.theurbanartroom.com
Restaurant Business TM
magazine is published by
Cimarron Media & Marke4ng
Co. Reg. 2011/101976/07
Copyright reserved
IF WE DIDN’T LAUGH WE WOULD
have to cry, and that would make
my mascara run…
We are all doing business in
troubling 4mes for South Africa.
Corrup4on scandals by day, load-
shedding by night and rising pric-
es at all other 4mes—how long
can this go on?
Renowned economist Adam
Smith is said to have said, “There
is a great deal of ruin in a nation,”
by which he meant that countries
can endure a lot of hardship with-
out collapsing completely. Our gov-
ernment seems determined to put
that maxim to the ultimate test.
And still, the sheer chutzpah
and resilience and dynamism of
the restaurant industry continue to
amaze me. Load-shedding is a
huge challenge for restaurants,
who face losing business and stock
if they don’t have a back-up plan,
and face extra energy costs if they
do. But many restaurants are grab-
bing the opportunity presented by
power outages, not wasting time
lamenting the reality that our
economy is taking a severe knock
thanks to the fiasco that is Eskom.
We do not forget however
that one too many challenges can
be the last straw for a struggling
business. When a restaurant fails it
means the end of someone’s
hopes and dreams, and has severe
financial consequences. In this is-
sue we introduce a column by
marketing guru, restaurant con-
sultant and funny guy, Mike Said,
who examines all the factors that
undermine the success of the res-
taurant business.
Of course, Shakespeare actu-
ally said, “now is the winter of
our discontent…” But somewhere
in the world another funny mar-
ke4ng guru used the line to sell
discount tents—and goodness
knows, we need as many laughs
as we can get.
Get our app!
4 restaurants
6 cover story
5 cooking with the
wonderbag
6 jackie cameron’s
new cooking school
8 how sa brands are
conquering London
12 technology and the
restaurant business
14 are you insured for
load-shedding?
16 mike said what?
18 chefs who share
ON THE COVER: Jackie Cameron
has launched her food and wine
training institute
restaurants
SANDWICH BARON HAS INTRODUCED its new Ban4ng-
friendly menu, prepared especially for the increasing num-
ber of customers who are following this low-carb, gluten-
free, high-fat lifestyle.
“With so many South Africans following this ea4ng
plan, we wanted to support them with a choice of appro-
priately cons4tuted dishes that are also delicious and sa4s-
fying,” says Sally J’ArleEe-Joy, Sandwich Baron’s franchisor.
The five new meal choices have been introduced at all
50 Sandwich Baron stores. Now on offer are: a Ban4ng
Breakfast Box comprising two boiled eggs, two rashers of
bacon, two cocktail pork sausages and two tomato slices at
R30; a Ban4ng Lunch Box made up of a roasted quarter
chicken served with avocado and sliced boiled eggs at R37;
500ml of leek-and-sweet potato soup at R27; a Ban4ng
omeleEe filled with cheese, avocado and bacon, with a
side salad dressed with balsamic vinegar and olive oil at
R47; and a 250g tub of chicken livers at R22.
ALTERNATIVE COOKING TECHNOLOGIES
are always welcome in the South African
context where access to energy is not al-
ways a given, and energy costs are high.
With its cosy shape and vibrant
shweshewe fabric, the Wonderbag doesn’t
look much like an oven – but it func4ons
much like a slow cooker, without needing
any energy source.
Stews, soups, curries, meats, desserts
and even festive drinks like mulled wine can
be prepared to perfection without the risk of
ending up eating dry chicken or burnt soup.
AKer doing the basic prepara4on for a
meal, and bringing it to the boil, simply
transfer the pot to the Wonderbag, where
the meal can be leK to cook unaEended
without any fire or safety hazards.
Chefs are also discovering the
Wonderbag. Chef Jacqui Rey, who owns
Food MaEers
Catering, says
that the
Wonderbag
is a great addi-
4on to any kitchen.
"I have been using a Wonderbag for
the past four years and I really love it from
an energy-saving point of view. You simply
cook your food for about 30 minutes be-
fore you put it into your Wonderbag and
then forget about it for a few hours.
“It is perfect for dishes that require
slow cooking, saves a fortune on gas and
electricity and you can't burn your food in
a Wonderbag. It is also mul4-func4onal, I
have even managed to make a delicious
chocolate malva pudding in it.”
Chef Jackie Cameron says: "The Won-
derbag is a wonderful tool to use when
you cook with a nostalgic slant. As my
cooking is all about memories I love to use
this slow-cooking process to produce
mouthwatering dishes like Wild Boar and
Bone Marrow or Guinea Fowl Puree and
Breast. It makes sense for the culinary
world to embrace cooking in this way. By
cooking in the Wonderbag you will use sig-
nificantly less electricity and gas.”
BAG IT
J JACKIE CAMERON’S SIGNATURE DISH IS
4reless crea4ve energy and innova4on.
Although just 30-something, Cameron has
won numerous culinary awards, held an en-
viable posi4on as head chef and published
her first cookbook, Jackie Cameron Cooks
at Home two years ago.
For the past 15 years Cameron says
has been working towards her ul4mate
goal—opening a school for aspiring chefs.
AKer seeking out many valuable experienc-
es and worthwhile challenges, she resigned
from her posi4on as head chef at the five-
star bou4que hotel HarQord House in the
KwaZulu-Natal Midlands in July last year,
and set about making that dream a reality.
“My focus now is on seeing growth
and development in others. I look forward
to sending out chefs who have confidence
in knowing that they have undergone cor-
rect training and have a holis4c under-
standing of this tough but extremely re-
warding industry,” she says.
A tough-but-fair taskmaster, Cameron
accepted only five students this year. “Of
all the applica4ons received they were the
ones that I believed would meet the chal-
lenges this industry presents,” she explains.
Graduates from Jackie Cameron School of
Food & Wine will be interna4onally accred-
ited – and, she believes, sought aKer. The
school can accommodate a maximum of 15
students and the dura4on of the course is
18 months.
Elaine Bosh off, Jackie Cameron, Jabu Ngwane and
with five aspiring chefs Cara Conway, Kate Cousins,
Emily Schmidt, Carla Schulze and Rai-Teree at the
new Jackie Cameron School of Food & Wine
RENOWNED SOUTH AFRICAN
CHEF AND COOKBOOK
AUTHOR JACKIE CAMERON HAS
OPENED HER NEW CULINARY
INSTITUTE, THE JACKIE CAMERON
SCHOOL OF FOOD & WINE IN
HILTON IN THE KWA-ZULU NATAL
THE SCHOOL THAT
JACKIE BUILT
L David Maich, UK director of Spur Cor-
pora4on, says: “All brands across the world
are tes4ng their models in London. If it
works here it will work anywhere.”
One South African food chain that has
led the charge in the UK is Nando’s. Creat-
ed in South Africa in 1987, Nando’s
launched its first restaurant in the UK in
1992. Two decades later has almost 400
branches on UK high streets.
Says Maich, “Nando’s is a tremendous
success because they have been flexible
and adapted the concept; not adopted a
rigid copy-and-paste brand standard.” He is
hoping to follow in Nando’s footsteps and
become another successful South African
LONDON IS A COSMOPOLITAN kaleido-
scope, with a restaurant scene to match. Its
high streets play like a round-the-world pit-
stop of cuisines, and increasingly woven
among them are African restaurants. CNN
correspondent Rosie Tomkins says South
African restaurants in par4cular are staking
their claim in the UK food market.
Washington Kapapiro is Chairman of
the Associa4on for African Owned Enter-
prises. He says, “For me what’s most ex-
ci4ng is the growth of what we call African
food. People are star4ng to iden4fy with
that brand.” With the brand comes the op-
portunity for chains to expand overseas
and London is seen as the golden 4cket.
If you can make it there, you can make it anywhere SOUTH AFRICAN RESTAURANTS ARE CONQUERING
ONE OF THE TOUGHEST MARKETS IN THE WORLD—
TAKING LONDON BY STORM, REPORTS CNN.
ALL BRANDS ACROSS THE WORLD ARE TESTING
THEIR MODELS IN LONDON. IF IT WORKS HERE IT
WILL WORK ANYWHERE.
CNN Marketplace Africa covers the macro trends
impacting the region and also focuses on the
continent's key industries and corporations. Each
week the show also interviews a major player from
the region's business community in its Face Time
segment. Seen here is Ritch Allison, CEO of Dom-
ino’s Pizza International.
chain plan4ng its flag on UK soil, with Spur.
“We're now positioning ourselves for the UK
market which is vibrant, cutting edge and
punchy. To me that this is the way to go.”
Spur already has six restaurants in the
UK, including one in Belfast, and one in
Dublin, with interna4onal headquarters in
Amsterdam.
South African ex-pats in the UK are
welcoming these food chains to London,
says Maich. “They are great, very loyal sup-
porters and great ambassadors, but we
have to think broadly; we have to think of
the UK customer profile and that's who
we're targe4ng across the board.”
Another South African company vying
for a posi4on in the UK market is The Meat
Co., which also adapted its South African
roots to suit the UK market. Johnny Tom-
azos, CEO of Food Fund Interna4onal (the
company which owns The Meat Co., and
several other brands) says: “Here at The
Meat Co. the African link is perhaps more
subtle. This is not about tribal art on the
walls, this is modern Africa, and the hall-
mark of the dining experience is the beef.
Kapapiro aEributes a uniquely African
can-do spirit to the success of South Afri-
can restaurant chains in the UK: “I think
that culture is the founda4on for a lot of
growth we've seen in the African business
sector.”
NANDO’S IS A TREMENDOUS SUCCESS IN LONDON
BECAUSE THEY HAVE BEEN FLEXIBLE AND ADAPTED
THE CONCEPT. IT’S NOT A RIGOROUS COPY-AND-
PASTE BRAND STANDARD THEY ADOPTED.
Spur’s family-friendly formula of ribs, steaks and
entertainment for the kids is transla+ng well in the
UK market.
By Hilary W
ard
I f (like us) you were born before 1980,
we’re really sorry to be the bearers of
bad news – but technology is trans-
forming the restaurant business and there
is just no way to avoid it. From social me-
dia to mobile POS and cashless payment
systems, all kinds of applica4ons are trans-
forming both the opera4ons and the mar-
ke4ng of restaurants.
We’ve had to get with the pro-
gramme too. You will no4ce, for example,
that Restaurant Business is now longer an
old-fashioned print magazine, but pro-
duced in a number of digital and online for-
mats. And isn’t it so much easier, beEer
and more convenient this way?
The good news is that once you
get your head around the technology (or
find a 12-year-old to manage it all for you),
it can do amazing things for your business.
For restaurant management systems,
talk to Pilot SoKware. They have some ex-
cellent mobile and other solu4ons, and are
really good at simplifying the tech talk so
that it all makes sense, as well as offering
training and aKer-sales support.
Social media marketing is essential –
Twitter, Facebook, Instagram, Pinterest and
online reviews are the spaces your custom-
ers are using to talk about you! Customers
are always on their phones these days—to
the extent that it is even affecting table ser-
vice! The Daily Mail UK reported recently
that diners are so busy tex4ng, talking,
blogging, taking photographs on their
smartphones and tablets, and trying to
DINERS ARE SO BUSY TEXTING,
TALKING, TAKING PHOTOS
AND TRYING TO CONNECT
TO THE WIFI THAT ONE
RESTAURATEUR CLAIMS
SERVICE HAS SLOWED DOWN
BY ALMOST AN HOUR!
How technology is transforming
the restaurant business, and how
to get a piece of the action
connect to the Wi-Fi, that
they don’t have 4me to actu-
ally look at the menu and
order, or eat their food when
it arrives. One New York
restaurateur tracked his restau-
rant’s CCTV footage and claimed that this
has slowed service 4mes down by almost
an hour in a decade!
There is no escaping it though. You
have to be there as a business and as a
brand—to have a presence on social media
and online restaurant guides, so you can
respond and take advantage of the oppor-
tuni4es that abound to get feet through the
doors, bums on seats and build goodwill
and brand awareness.
If it’s all new to you, consider employ-
ing a social media manager, or at least tak-
ing a social media course. An excellent
place to start is UCT’s Get Smarter online
short courses. They have both social media
courses for small businesses and restaurant
management courses!
Recently, when staff at a KFC store
in Braamfontein were filmed on a
smartphone hosing down chicken
pieces on a concrete floor, the
story quickly went viral on social
media, only to be picked up the
mainstream media both here and
overseas. As they say, ‘The Internet
is forever.’ Not engaging in social
media is not an option—you can’t
stop people posting about your res-
taurant, from their smartphones, or
on their blogs. It used to be that
you only had to worry about what
an influential food critic was writing
about you in the newspaper once
a week. Now everyone with a
Twitter account is a food critic. The
good news is that social media
can really work for you too. It’s the
new word-of-mouth and the trick is
to make sure that what people are
saying about you is mostly good.
T THE WORST FEARS OF SOUTH AFRICAN
business owners of a repeat of the 2008
blackouts are being realised, with billions
of rand in poten4al economic growth being
wiped out every month as widespread
power outages affect the country.
Load shedding currently tops the list
of insurance nightmares keeping business
owners awake at night. But it may not be a
nightmare that businesses can insure
against.
Persistent load shedding is the num-
ber one insurance nightmare for compa-
nies and individuals, because most policies
simply do not cover the consequen4al
damages that could arise from a power
cut.
A power cut is a foreseeable event
and insurance is designed for events that
are not planned. Load shedding is, unfortu-
nately, predictable and therefore managea-
ble. The onus of risk mi4ga4on therefore
lies on the business owner rather than on
the Insurer.
Fully 90% of claims are not likely to
be covered in the event of a power cut, as
coverage would generally apply up to a
limited amount where power surges or
spikes cause damage to equipment, like
servers or printers.
S4ll, business interrup4on insurance
is being taken out on the mistaken belief
that they are covered for consequen4al
losses, when in fact this type of insurance
only covers perilous events such as wind,
snow, fire, or an explosion as the underly-
ing cause.
There has been an increase in re-
quests for this type of insurance and we
are trying to educate clients that it may
not be the solu4on to load shedding prob-
lems.
HAVING A ROMANTIC CANDLE-LIT DINNER IS NOT AS
MUCH FUN AS IT USED TO BE. LOAD-SHEDDING NOW
POSES A SIGNIFICANT RISK TO RESTAURANTS,
WHO STAND TO LOSE PEAK-HOUR BUSINESS,
AS WELL AS STOCK. BUT DON’T ASSUME THAT YOUR
INSURANCE WILL COVER THESE RISKS,
WARNS BRIAN VERPOORT OF STANDARD BANK
THE LOAD-SHEDDING INSURANCE RISK
C CRIME THRILLERS ARE ALL THE RAVE right
now, and although I am no James PaEerson
or Lincoln Child, the slow but painful death
of the South African Restaurant Industry
makes for some preEy interes4ng reading.
“Death?” you ask. Am I not being a
liEle too drama4c, a liEle too severe…? I
think not! Restaurants are closing down
weekly and those that are able to survive
are doing so against great odds. Of course
there are the excep4ons to the rule.
Like all good crime writers, let me
begin by introducing our lead character…
the vic4m! The restaurant industry has al-
ways been a difficult industry and there are
a number of factors that unsuspec4ng en-
trants are oKen not aware of. For one thing
it is a factory… You need to turn raw materi-
al into finished goods in liEle or no 4me at
all. Secondly it is retail with a twist, your cli-
ents then sample the product in front of
you and not once they have arrived home
and thirdly they are only expected to pay
for their purchase AFTER they have enjoyed
it. Combine these factors with a few others
like cash, alcohol and ego and you quickly
realise why an owners visit to any table is
so fraught with danger.
Mike Said is a marketer, public speaker, commi.ed dad and part-
+me adrenaline junkie. Today, his company MikeSaidWhat? ad-
vises clients on branding, strategy, market development, custom-
er service and social media. His ability to impart knowledge in a
humorous and down-to-earth manner has made him a sought-
a2er speaker at corporate func+ons and conferences. Visit
www.mikesaidwhat.co.za or email [email protected].
Who is killing the restaurant industry?: Part 1
RESTAURANT PROFITABILITY, OR RETENTION, IS AT AN ALL-TIME LOW. IN THE
PAST A RESTAURANT OWNER COULD EXPECT TO RETAIN 18%-24% OF HIS
TURNOVER (EBIT) THIS FIGURE IS NOW DOWN TO BETWEEN 7%-14%… SOME-
THING ON PAR WITH WHAT THE WAITERS ARE EARNING IN TIPS AND OFTEN
LESS THAN THE LANDLORD IS RECEIVING IN RENT!
Despite these challenges it remained an aErac4ve
and seemingly lucra4ve pursuit because profit margins
were acceptable to high IF you could manage your busi-
ness properly.
Alas all that has changed over the past several years.
Restaurant profitability, or RETENTION as it is oKen re-
ferred to in the restaurant industry is at an all 4me low.
Whereas in the past a restaurant owner could expect to
retain 18%-24% of his turnover (EBIT) this figure is now
down to between 7%-14%… something on par with what
the waiters are earning in 4ps and oKen less than the
landlord is receiving in rent!
There are a number of key factors that have contrib-
uted to this. First and foremost is considerably slower
than an4cipated growth, and the impact of this is a mas-
sive increase in the rental to turnover ra4o that should
ideally be si^ng at 11% or less. (I shall delve into this a
liEle further in Part 2: The Suspects – Landlords.)
Secondly increased input costs as food prices climb
and a budget conscious clientele con4nue to put pressure
on restaurants NOT to increase their prices. (I shall delve
into this a liEle further in Part 3: The Suspects – Suppliers
and Part 4: The Suspects – Customers).
But it would be untoward of me not men4on the
owners, franchisers and other industry players that are
contribu4ng to the decline either through total apathy
and neglect or in some cases sheer stupidity.
So the picture is a NOT preEy one and the casual4es
are moun4ng… Who is to blame and what can be done
about it? Watch this space for details…
T The Chefs Who Share charity event this
year includes a wonderful opportunity for
restaurants to put forward their most tal-
ented and promising young chefs to win a
place working with the country’s culinary
elite at the gala dinner in September.
The aim of the CWS: Young Chef
Award is to iden4fy and nurture talented
young chefs. The 14 chefs they will be
working with count among South Africa’s
culinary elite, and will be role models and
mentors for the emerging kitchen stars.
It will offer a once-in-a-life4me oppor-
tunity for South Africa’s younger genera4on
of chefs to work alongside their culinary
idols and gain exposure to a high-profile
audience. One young chef will also win an
incredible trip to Europe.
On the night of the gala dinner, the
chefs work in seven teams of two, with a
sommelier, with each duo crea4ng a unique
four-course menu for 36 guests.
Chefs between from 18 to 29 years old
working in a position ranging from demi chef
to junior sous chef qualify to enter. To enter,
up-and-coming chefs have until July 15 to
create an innovative canapé that will be
served together with a glass of Champagne
as a culinary highlight of the evening.
In August, a panel of top chefs and ex-
perienced foodies, will join Africa on a
Plate producer Lentswe Bhengu to judge
the canapés submiEed and select seven
young chefs as compe44on finalists, who
will win a spot in the event kitchen.
Africa on a Plate producer Lentswe Bhengu
New Chefs Who Share opportunity for young chefs