WASHINGTON S RESTAURANTS BUILDING CAREERS SERVING OUR COMMUNITIES STRENGTHENING OUR ECONOMY SERVING WASHINGTON

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1 WASHINGTON S RESTAURANTS BUILDING CAREERS SERVING OUR COMMUNITIES STRENGTHENING OUR ECONOMY SERVING WASHINGTON

2 BUILDING CAREERS IN FIVE YEARS: 28% more women 30% more hispanics 77% more african americans opened restaurants. As the largest private sector employer in the state, the restaurant industry provides jobs to nearly 200,000 workers. Furthermore, for every $1 million in restaurant sales an additional 34 jobs are created for our economy. AMERICA S TRAINING GROUND The restaurant industry has long been known as the Nation s training ground and provides vital careers. Nearly half of all Americans have worked in the restaurant industry in their lives, one in four Americans got their first job experience in a restaurant and 80 percent of managers started as frontline employees. DIVERSITY One-quarter of eating- and drinking-place firms are owned by women, 15% by Asians, 8% by Hispanics and 4% by African-Americans. Eating-and-drinking places employ more minority managers than any other industry. Fifty-eight percent of first-line supervisors/managers of food preparation and service workers in 2008 were women, 14% were of Hispanic origin and 14% were African-American. VOCATIONAL TRAINING IN WASHINGTON S PUBLIC SCHOOLS The Washington Restaurant Association Education Foundation plays an integral role in supporting the public education system. The WRAEF supports 50 public high school culinary arts programs throughout the state with a nationally accredited curriculum program, ProStart. OAK HARBOR HIGH SCHOOL PROSTART STUDENTS INTERN IN A LOCAL RESTAURANT AND ASSIST WITH NEW MENU ITEMS AS PART OF THEIR SCHOOL- TO-CAREER TRAINING. ProStart prepares students for careers in the foodservice industry through academic and workplace experiences. Students receive classroom training and enter into paid internships with industry professionals. Additionally industry mentors build relationships with students and are possible future employers. Since 2000, the program has trained more than 7,000 high school students in Washington. * Data from the the National Restaurant Association 2010 Pocketbook

3 SERVING OUR COMMUNITIES Service comes naturally to restaurateurs, WITH nine out of 10 restaurants are involved in some type of charitable activity nationwide. Washington restaurateurs are no different. In fact, many of our restaurants have been recognized on a national level for their philanthropic endeavors and are responsible for programs that have been implemented throughout the country. Amy s on the Bay State Humanitarian and National Diversity Awards Amy Igloi Matsuno, owner of Amy s On The Bay IN Port Orchard, Wash., was named Washington s Cornerstone Humanitarian in 2009 because of her volunteer work with numerous charitable organizations, including the Special Olympics, Tip-a-Cop, Relay for Life and the Fred Hutchison Cancer Research Foundation. Amy was also recognized by the National Restaurant Association that same year with a Faces of Diversity American Dream Award. Amy Igloi Matsuno The American Dream Award honors individuals from diverse backgrounds who, through hard work and determination, have realized the American dream. The Inspiration Award honors restaurant companies that have exhibited leadership and vision as an advocate of diversity and inclusion. Ivar s Seafood Bar Restaurant Neighbor Award Ivar s, Seattle, Wash., was selected for the 2009 Restaurant Neighbor Award in the medium business category based on a significant record of giving, including the donation of roughly 50,000 cups of chowder and 1,500 meals monthly to Northwest Harvest s hunger relief program. Additionally, Ivar s has made generous monetary and in-kind donations to local community and non-profit organizations. Bob Donegan, owner of Ivar s, is a leader among his peers and in his community. Bob Donegan Canlis State and National Restaurant Neighbor Award In 2007 Canlis, Seattle, Wash., was recognized at both the state and national level for their philanthropic spirit of the restaurant industry and their inspiration to others to get involved in their communities. Both the Washington Restaurant and National Restaurant Association s awarded them the Restaurant Neighbor Award in the mid-size business category. Canlis raised $125,000 for the construction of a state-of-the art-office and kitchen for FareStart. FareStart is a unique non-profit organization dedicated to training and supporting individuals seeking to increase their quality of life by learning new skills in the foodservice industry. The restaurant donated food and staff to serve a three-course meal prepared in the FareStart kitchen. Canlis provided food and the time and expertise of its staff by hosting Guest-Chef Nights, thereby raising the much-needed funds for construction. Chris and Alice Canlis owners of Canlis accepting the Restaurant Neighbor Award at the NRA s Public Affairs Conference in Washington, D.C.

4 STRENGTHENING OUR ECONOMY Economics in a Small Business Small Businesses are the Cornerstones in Our Communities Washington s restaurants continually strengthen the state s economy. Our local and state governments depend on our revenue to support government services. Restaurants are vital to our economic health. Generate $647 million in annual tax revenue Have $12.2 billion in gross annual food, beverage and other sales Pay employees more than $3 billion each year Employ nearly 200,000 people Small businesses are the backbone of our economy and our communities. While restaurants may be the largest private sector employer in the state and second in the nation, they have tight margins and are often among the first to feel the impact of shifts in the economy. The Restaurant Dollar based on $500,000 in annual gross income Salaries, wages & benefits 36.3% $181,500 Cost of food & beverage 31.6% $158,000 Direct operating expenses 9.5% $47,500 Administrative expenses 8.8% $44,000 Restaurant occupancy costs 6.2% $31,000 Marketing, music & entertainment 1.3% $6,500 Repairs & maintenance 1.8% $9,000 Income BEFORE Taxes 4.5% $22,500 That is only $61.64 a day BEFORE taxes. *Data from the National Restaurant Association Operations Report. Eighty-one percent of restaurants are small businesses and employ fewer than 20 employees. 3% 1% 100+ employees employees 15% 27% employees employees 29% 5-9 employees 25% 1-4 employees Restaurants provide jobs and generate revenue for every county in Washington. *Data from the 2008 Compensation, Benefits and Menu Survey by People Report.

5 SERVING WASHINGTON RESTAURANT & CONSUMER TRENDS As American life has become more demanding, restaurants are no longer just the place to celebrate birthdays and anniversaries, they have become our families new dinner table. Trends in restaurants have changed with times as well. Consumer Trends 54 Percent of adults say they would be likely to use an restaurant delivery at their home or office if offered by a full service restaurant. 78 Percent of adults agree that going out to a restaurant with family or friends gives them an opportunity to socialize and is a better way to make use of their leisure time than cooking and cleaning up. 56 Percent of adults say they are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally friendly way. 70 Percent of adults say they are more likely to visit a restaurant that offers locally produced food items. 57 Percent of adults say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. *Data from the National Restaurant Association Pocket Factbook. Top 10 Restaurant Trends Locally grown produce Locally sourced meats and seafood Sustainability Bite-size/mini desserts Locally produced wine and beer Nutritionally balanced children s dishes Half-portion/smaller portion for a smaller price Farm/estate-branded ingredients Gluten-free/food allergy conscious Sustainable seafood *Data from the 2010 American Chef Federation and National Restaurant Association trend survey.