The restaurant industry’s monthly same-store sales growth rate rose at an all-time-high in December, fueled by sharp gains in guest traffic and cooperative weather, according to the latest NRN-MillerPulse survey.

Industrywide same-store sales rose 5.4 percent in December, compared with a 2.9-percent increase the month prior, which is the largest increase in the survey’s history. The month capped off a relatively strong 2011 that saw same-store sales up 2.6 percent overall, leaving operators and analysts pleasantly surprised.

“December was a win across the board,” said Larry Miller, restaurant securities analyst at RBC Capital Markets in Atlanta and creator of the monthly MillerPulse surveys and research. “This could be the first sign of the rising tide that we’ve been waiting to see.”

MillerPulse, an operator survey exclusive to Nation’s Restaurant News, polled around 70 restaurant operators in January regarding December sales, profit trends, performance and outlooks. Respondents cover all regions of the country and represent the quick-service, casual-dining, fine-dining and fast-casual segments. Those surveyed in January represented restaurants that booked about 4 percent of industry sales.

Both the quick-service and full-service segments posted record-setting increases in same-store sales, the survey found. Sales at quick-service restaurants, which include both fast-food and fast-casual brands, rose 6.7 percent in December, compared with a 4-percent increase November. Sales for full-service restaurants, which include both fine-dining and casual-dining brands, increased 4.2 percent in December, compared with a 2-percent increase in the prior month.

The substantial sales increases were largely driven by guest traffic gains, which rose nearly 3 percent in December, compared to being relatively flat in November. Quick-service traffic jumped 4.2 percent in December, compared to just over a 1-percent increase in November, while full-service traffic rose 1.7 percent after seeing a 1.1-percent decline in November.

As a recruiter, I am always impressed by candidates who have questions of their own to ask-and I consistently receive feedback from hiring managers all over the country who feel the same way. The candidate who’s asked, “So, do you have any questions?” at the end of the interview better come up with something. One who answers, “No, I don’t think so,” is going to get a big negative mark against them in the hiring decision.

Companies want candidates who have critical thinking skills, as well as candidates who are knowledgeable and interested in the job. The questions you ask demonstrate these things. Not having questions of your own to ask sets you up as a candidate who’s passive, won’t work very hard, and isn’t all that interested in the job-even if you are.

General Questions:

What you are looking for in a candidate?

What qualities did the last person you hired have?

Why is this position open?

What was it that you think kept that person from being successful?

What are the tasks in this job that will make someone in this position successful?

How do I rank among the other candidates?

Can you tell me about the company’s culture/mission/philosophy?

What do you like best about working for this company?

What are the next steps?

When do you expect to make a decision?

Do you have any reason why you would not consider moving me forward during the (hiring) process?

Are there any other folks who will be interviewing me later?

What’s a typical day like?

What stops most employees from being successful?

Are there any more questions you have for me?

Do you see how my past experience translates well for this position?

Questions for sales jobs:

Which product line of yours is your lead line? (i.e. the one that everyone should buy)

Which product line should they probably not buy?

How does the travel program work?

The more research you do on the company and the job before your interview, the easier it will be to come up with questions to ask. Naturally, your questions will be more detailed and they will show that you have done your homework, and that’s a very impressive quality in a candidate. You’ll come across as a hard worker who’s also creative, insightful, and engaged.

The questions you ask will allow you to “get inside the hiring manager’s head,” so that you can tell what they’re really looking for, and what they want to hear, so that you’ll have a more successful interview.

Your questions also do the critical job of uncovering any issues the hiring manager might have with you, so that you can correct any problems before you leave.

Guest article from Matthew Warzel   There are reasons why recruiters or hiring managers do not call back some job seekers: blacklists! In today’s tough job market, desperate job seekers are pursuing what little jobs are available. Hiring managers have plenty of applicants to choose from, so they are justifiably selective and quick to record any negatives they discover.   If you are blacklisted, recruiters do not submit you to jobs today, even years from now. Even if you are not on an actual “list”, recruiters do remember if you left a bad impression. They also pass the word along to fellow recruiters, and they remember bad candidates even if they change companies.   Do’s and Don’ts  Recruiters never want to hire any of the 3 L’s: liars, losers and loners. Prove that you are none of those by following these tips:

•DO NOT lie about or exaggerate your experience. Outright lying about experience or skills that you do not have guarantees you a spot on the blacklist.

•DO NOT pit fellow recruiters against each other. Contrary to what you might think, it does not increase your chances of getting a job. You can work with more than one recruiter, but not ones at the same company, unless they are at different office locations (e.g., MJW Careers Wilmington and MJW Careers Raleigh).

•DO NOT mass distribute your resume. Applying to too many jobs with the same recruiter or company makes you look unfocused and creates unnecessary work for them. Make every job application a meaningful one.

•DO remain courteous and professional, even if your recruiter is not. They are dealing with tons of applicants, so do not take unreturned phone calls or missed interviews personally. Do not attack your recruiter for this behavior; it only leaves a bad impression of you.

•DO always be interview-ready. Every conversation with a recruiter is an interview, even a casual chat at a networking event. Always be discussing your qualifications. What you may consider harmless joking, might rub your recruiter the wrong way.

•DO clean up your online presence. Recruiters check LinkedIn, Facebook, Google, etc. Even if it is old, if it is inappropriate, get rid of it.

•DO communicate what job you are looking for. Having a good relationship with recruiters does not mean you have to accept every job they present. If you are not interested, say so; it saves everyone time.

•DO build relationships with recruiters. Always keep your job options open, whether you are employed or not. This means keeping in touch recruiters at all times.   More Turnoffs

•Forgetting or missing scheduled interviews

•Making a faux pas during an interview

•Handling rejection badly

•Rejecting an opportunity after extensive efforts by a recruiter to arrange it for you

•Taking a counteroffer from another company

•Demonstrating poor business skills

•Publicly criticizing other people or companies

•Failing a background check (in which you cannot re-apply for a certain time period)   Removing Your Name from a “Do Not Hire” List  Negative notations beside your name can seriously derail your job search. Unfortunately, it is also very hard to discover or remove a bad mark. With so many candidates today, recruiters and hiring managers are even less forgiving. Getting back on their good side requires some extra effort.   Finding Out

•Speak to key internal contacts and colleagues  •Ask a reference-checking service to find out if a previous boss made unfair remarks about you   Correcting the Situation

•Demonstrate your true reliability and professionalism

•Offer detailed information about candidates for a different job opening and conduct extra reference checks as a courtesy

•Treat them to lunch or coffee  •Request honest feedback about becoming a stronger candidate next time

•Review a background check used to reject you and remove inaccurate records

•Consider switching industries or locations   Article courtesy of the Recruiting Blogswap, a content exchange service sponsored by CollegeRecruiter.com, a leading site for college students looking for internships and recent graduates searching for entry level jobs and other career opportunities.

So what if you make a hiring mistake? Here’s how to beat analysis paralysis.
By April Joyner | Nov 1, 2011

Any job seeker knows from experience how much first impressions matter. In fact, they probably matter too much. A single interview, after all, rarely uncovers enough information to determine whether someone would be a good employee. To compensate for this shortcoming, many entrepreneurs follow the adage to hire slowly, fire fast. But hiring too slowly can be just as counterproductive as making a snap judgment, especially when entrepreneurs tack additional steps onto the interview process without clear objectives in mind.

Gary Jaffe, CEO of The Booksource, a St. Louis-based distributor of schoolbooks with 135 employees, made that mistake last fall when he began looking for a new sales director. The search ended up taking five months—two months longer than the contract period for the recruiter he enlisted. Each candidate was required to go through two personality assessments and about four hours’ worth of interviews, meeting with each of the company’s three managers. After sitting in on each interview, Jaffe privately questioned the candidates he found promising. His impressions of candidates would often start out positive but deteriorate as the interviews dragged on. “In the first two hours, I would have absolutely hired this person,” says Jaffe. “By lunch, he was questionable.”

There are many reasons entrepreneurs prolong the hiring process. For starters, adding employees at a small company is tricky. “Once you insert a new person into the mix, you change the team’s dynamics completely,” says Lanny Goodman, CEO of Management Technologies, an Albuquerque-based firm that trains entrepreneurs in management techniques. Previous hiring mistakes can also cause entrepreneurs to drag their feet: Because they second-guess their opinions, entrepreneurs add extra rounds of interviews and assessments.

That was the case for Jaffe. After firing two of the company’s executives, he had begun to doubt his ability to make good hiring decisions. “It’s so frustrating when you get it wrong,” says Jaffe. “It takes so much effort to fit this person, and you say, ‘Why is this not working?’ ” He was determined to get it right this time.

One of the most promising applicants for the sales director position was referred by a trusted source. Jaffe’s father, Sandy, who founded The Booksource and had been its CEO, had met the candidate in a business mentoring group. But despite the family recommendation, personality tests, and rounds of interviews, Jaffe was still unsure. So he invited the candidate out to dinner. After an evening of polite small talk and Southwestern cuisine, Jaffe finally made an offer.

But even after all that, Jaffe is again trying to fill the position. Less than three weeks after the sales director joined the company, Jaffe fired him.

No matter how many times you interview candidates, there’s no way to accurately predict how well they will perform. Entrepreneurs who drag out the hiring process put off the ultimate test of a candidate: time on the job. Plus, as the months pass and pressure mounts to fill critical positions, entrepreneurs sometimes find themselves making the same hasty decisions they sought to avoid in the first place.
Treatment:

Set clear objectives for each stage of the interview process. Make sure follow-up interviews aren’t rehashing the same discussions from previous meetings.

Limit the number of people evaluating candidates. It’s wise to seek a second opinion, but involving more than two or three other managers can make it difficult to get a clear assessment.

Trust your instincts. As the hiring process drags on, you are more likely to ignore red flags.

“Unemployment discrimination” and the jobless
By: Elaine Quijano (CBS News)

Of the 14 million Americans currently unemployed, 6 million have been jobless for more than 6 months.

CBS News correspondent Elaine Quijano reports that many job seekers say being unemployed is being held against them.

Delores Barnes always goes job hunting armed with her dossier of documents, including her birth certificate.

Two years ago, she was laid off from her supervisor job with New York’s Children’s Services. Ever since, Barnes has been looking for work to support her and her nine-year-old daughter, Savianna “I can’t give up. I’m on a mission. I have a daughter, and she’s like, I have to be strong for her. I have to show her that you just don’t give up,” Barnes says.

Yet no amount of persistence can overcome the simple fact that some employers don’t want to hire the unemployed. In job posting after job posting, companies require that applicants “must be currently employed.”

“They have that perception that they are the dead weight, therefore they want the strong people who are currently employed,” says Robert Krzak, president of Gecko Hospitality.

Krzak says some companies won’t even consider unemployed job candidates.
“If there is a candidate out there who has been out there in the job market for six months or even a year or more than a year, a lot of companies are very suspect of that, because why aren’t they working?” Krzak says.

“It’s discriminatory and the fact that just because you don’t have a job you can’t compete for a job,” says Congresswoman Rosa DeLauro, D-Conn. DeLauro is sponsoring a bill aimed at stopping the practice.

“These are competent people. They have lost their job through no fault of their own,

Why shouldn’t they have an opportunity?” DeLauro says.
Barnes says the practice doesn’t make sense, hiring people who have jobs when so many don’t.

Barnes is now training to be a computer technician, and says she’ll keep pounding the pavement, even though with some companies she can’t even get her foot in the door.

“Who does she think she is?”

I’m sure that ran across your mind as you read my headline.

“We pay good money to agency recruiters! THEY should be asking the question…How to provide a great service to US!”
Believe me, we think about that all the time. Most of us are consumed by that question! We have attended dozens of motivational seminars, logged multiple webinars, and read countless books on how to provide a great value to our clients.

In spite of our earnest endeavors, however, frustration can develop in the Recruiter/Client relationship. Maybe you consider us over-enthusiastic. Or not enough. Maybe you hear from us every day. Then we disappear. Maybe it seems we aren’t acting with urgency. Maybe we ask “Why?” a little more than you’d like. You don’t want to completely sever the relationship with us, because the next candidate we provide could be your next hire! But we are doing things you consider perplexing.

I believe I can help you with that. I recently surveyed Third Party Contingency Recruiters with multiple agencies, in several markets, and across various disciplines…and I captured their thoughts on relationships with clients. It’s a glimpse into the world of the Agency Recruiter. It is my hope that reading a sampling of their answers below could only strengthen the bond between you and those you choose to work with.

It’s no secret that we Recruiters are handling multiple positions with multiple companies in a given time period. And it’s also no secret that some of our clients get the red carpet treatment, while others don’t. So I asked my Survey Group…”What motivates you to give certain clients 110%?” Surprisingly enough, the answer was *not* “the client who pays the best fee.” Instead…

-A client who views, and treats me as a partner, not a vendor or commodity.
-A client who works with me exclusively or as part of a very limited number of recruiting firms.
-A client who takes the time to get to know my background and qualifications.
-A client who listens to me when I say to them: “Just trust me. Even though this resume is not your ideal profile, I believe you need to interview this person.”
-A client who gives me repeat business…of course when I’ve earned it.
-A client with a consistent message…rather than changing their position regularly.
-A client who continues to communicate as they move our candidates through the interview stages, and provides honest feedback.

So I followed up with this question: How does a client fall into disfavor with you?

-When the client sends out mass emails to a dozen different recruiting firms with their needs list. It signals that I’m just a vendor to these companies, and not a partner in talent acquisition.
-When they only want to communicate via email, and never by phone. This doesn’t permit me to ask relevant questions about their projects and get a ready answer.
-When they take a pass on my candidates and will not explain why. I need this information so that I may redirect my search or narrow my focus.
-When they give me “urgent” job orders. Then they take several weeks to schedule interviews with my candidates. I worked extra hours to respond to this “urgent” need. What changed?
-When they give us a job order, interview our candidates, and decide to fill the position internally. We are willing to accept that our candidates may not have been as good as their internal. However, we also suspect we are being used to “comparison shop.” That’s not fair.
-When the client changes the criteria of the job order so many times, it feels like a moving target.

So then I became even bolder, and asked my Survey Group: “What one thing do you want a client to know…but are a little scared to tell them?”

-Don’t ask us for a discount without a reason. If you want a certain amount, or percentage off my going rate, be willing to agree to an exclusive. Or volume orders.
-We are inclined to give priority to clients who use us frequently and take our work seriously.
-If you ask for a dramatically reduced fee arrangement, and if I agree to it, you will not get the best talent in the market from me. The best candidates will be directed to clients who honor the work I do with a fair rate.
-There’s no reason not to return my messages. I am working for free out here, until I find the right candidate for you. The least you can do is return my calls.

I turned the tables on my Survey Group, by asking them to take some responsibility for client relationships that have gone awry. So I posed this question: “What one thing did you do to a client that you regret?

-Didn’t return their calls/messages quickly enough. They found another recruiter who did.
-Didn’t cover the search adequately, and the client found their candidate on their own.
-Didn’t respond with urgency. I thought I had the exclusive and all the time in the world.
-Didn’t replace candidates who had been eliminated from the search with more candidates. I thought I had my superstars the first time.
-Didn’t check in on my client after submitting four candidates. Just thought he/she could take it from there.
-Tried to read the client’s mind. I should have just called or emailed and asked the question.
-Wasn’t sensitive to the hiring authority’s schedule and demands. I kept calling him in the middle of the day when he was busiest and couldn’t concentrate. I should have asked which time of the day worked best, or set up a standing appointment.

People get fired every day. It’s not often when a Recruiter fires their Client, but it does happen! So I asked my Survey Group, “Have you ever fired a client, and why?”

-I caught my client in a mistruth more than once. I couldn’t trust them after that.
-The client was passing on my candidates. I found out a year later that they were called directly and hired outright.
-The client was looking for ways to avoid paying my invoice. Gave me a lot of excuses.
-The client waited a whole year to pay the invoice. We had to call collections.
-The client didn’t disclose to me that they had already known about my candidate. But they watched me go through the process, scheduling interviews, checking references, negotiating the package, without this disclosure. And in the end, I was told I would not be paid for the placement.
-Never making the hire. The client gave us multiple positions to fill. Lots of talking and talking. But no traction. No results.

I acknowledge that I have shone a light on very real and very raw observations and experiences of a sample group of Third Party Contingency Recruiters. And after reading this, you might be tempted to wave the white flag, retreat to the corporate office, and just do this recruiting thing yourself.

That was not the intention. You just got a rare glimpse into the world of the Agency Recruiter. Now you know how we tick, and how your behavior can affect our results. Therefore, I encourage you to continue to use our services, and remind yourself why you originally engaged us in your recruiting efforts. Your reasons will likely match the answers to my Survey Group’s final question: “What value do we provide our clients?”

-We give our clients their jobs back! When they are not screening, scheduling, checking references, networking, and asking for referrals, they are attending to the rest of their responsibilities. Let us do the footwork!
-During the recession, Human Resource Departments were decimated. But Recruiting real talent cannot stop. View us an extension of your HR Division!
-We provide industry (or market) specialization, and a network to go with it! What may take the client months to place…we might be able to accomplish within weeks.
-Empty positions cost a company money and customer loyalty! Rather than settling for someone that you could find in a short time…use a Recruiter to produce a larger selection of qualified and interested candidates.
-If the client is uncomfortable calling desirable employees from their competitors, reach out to me! I’ll do the calling!
-If the client is at the end of his/her rope…and if they’ve looked everywhere for the perfect candidate…
I might be the solution! I might be aware of the person for which you have been combing the earth!

By Dee Adams

If you’ve ever dreamed about starting your own business, you are not alone. There were almost 9 million self-employed workers in 2010, according to statistics compiled by Challenger, Gray, & Christmas. Each year, a percentage of the workforce trades in their 9-5 jobs for the entrepreneurial life, but some workers start a sideline business to supplement their salaries.

Business startup cuts across all socio-economic groups; from managers, executives, and professionals to blue collar workers. Success stories include:
•A Harvard graduate with a degree in mathematics and economics who left management consulting to pursue her passion for desserts. She started a bakery and Café, and began writing cookbooks.
•A Ph.D. in political science from University of Chicago who opened a motorcycle repair shop. He wrote a book about the value of working with one’s hands.
• A web designer and consultant fired from her job because of her personal blogging. She built a lucrative home-based empire with her mommy blog.
•A firefighter who invented better fire safety equipment for the consumer and industrial marketplace, and created a multimillion-dollar venture.

But, for many other would-be entrepreneurs finding the right startup is challenging.

Many issues may cloud the process, and certain questions asked and answered in the pre-planning stage can pinpoint conflicts and problems, and their solutions.

Here are several important questions:

Do you know how many aptitudes you possess?
Aptitudes are inborn natural talents and should not be confused with acquired skills. Each person has an average of six innate skills, some unused and some hidden.

While a percentage of the population may be able to determine their own aptitudes by self-assessment, most people are not aware of their full potential, according to writer Margaret Broadley. Over a 40 year period, Broadley documented the work of the Johnson O’Connor Research Foundation, a nonprofit organization specializing in the scientific research of human abilities.

What are your least favorite skills?
Create a checklist of work tasks that you dislike and have trouble executing.

What feels more comfortable, introverted or extroverted personality traits?
Make a checklist of your actual patterns of behavior in work and social interactions, not what you believe your traits are.

Note: Some people adapt their personalities in order to fit into social or working situations and may have an opposite personality from the traits that they often exhibit.

What is your motivation for choosing self-employment?
Using a single sentence, describe why you want to be your own boss.

What is your history with money?
Your money history includes your family’s relationship with financial issues, the messages you learned as a child, and your pattern of behavior and attitude toward money as an adult, which may be reflected in your current credit history.

Summarize your answer in two or three short sentences.

Socio-economic factors, like the state of the economy, the ability to borrow money, or to easily relocate have an impact on the number of people who pursue entrepreneurship each year, but many aspiring entrepreneurs ignore national economic trends in pursuit of their dreams. Those who succeed keep their risks low, and instinctively review their personal development homework beforehand.

What other issues are standing in your way?

How many of us have heard these famous last words at the end of a not-so-successful date? They remind me of Charlie Sheen’s character on Two And A Half Men. “I’ll Call You” was Charlie’s escape hatch which allowed him to quickly part company with his lady friends without a big confrontation. It was never genuine. Rather flip and dismissive. Which is why Job Seekers recoil when they hear the same words from a Professional Recruiter: “I’ll Call You.”

I understand the temptation to lump Recruiters in with the Charlie Sheens’ of the world. After all, today’s society has been conditioned to understand “I’ll Call You” to be the ultimate blow off. However, I can assure you, and the rest of today’s Job Seekers, that when we Recruiters say “I’ll Call You” we actually mean it! It may not be the next day or next week. But if your work history is strong, and your skill set relevant to our niche, we will eventually call you.

Most Agency Recruiters, like me, are driven by our clients’ immediate needs…critical positions which need to be filled ASAP by candidates who meet a very specific set of criteria. This explains why a highly-qualified Accountant will hear “I’ll Call You” when the Recruiter is working on filling Sales positions. Or why an accomplished Engineer will hear “I’ll Call You” when the Recruiter is handling several Chef openings. Or why the recent college grad will hear “I’ll Call You” when the Recruiter is seeking out CEO candidates. It doesn’t mean the Accountant’s or Engineer’s or College Graduate’s resumes were awful and that they “never find a job in this town again.” It simply boils down to timing.

I’ll admit we Recruiters see thousands of resumes a month. Even if we say “I’ll call you,” how do you, the Job Seeker, know that we won’t forget you three months from now? I’ve been asked by Job Seekers before:”Can I call you every week to stay in touch?” It’s a nice idea, really. But if I honored this request by the several hundred prospective candidates I’ve been in contact just in the last month, then you will legitimately be able to compare me to Charlie… *after* he lost his mind!
If you, the Job Seeker, wish to stay on a Recruiter’s radar for future opportunities, then you will benefit the most by supplying the following:

• an updated copy of your resume
• accurate salary history
• reasonable salary expectations
• markets for relocation
• list of tangible, measurable accomplishments
• aspirations for your next position
• three professional references
• an active cell number
• and a viable email address

A good Recruiter will enter every tidbit of this information into a profile he/she has created for you in their keyword-optimized database or tracking system. Between your resume and the above bullets, you have armed the Recruiter with the information needed to match you to upcoming positions. And when the right position matches up…then the magic happens. And unlike Charlie Sheen…the Recruiter actually calls! It may be in two weeks…two months…or two years. But the Recruiter calls.
Please don’t misunderstand. I do not mean that you, the Job Seeker, should completely drop out of sight after the initial phone screen with your Recruiter. I’ll confess that occasionally well-timed calls from active Job Seekers who want to update me on a new accomplishment or a changed email address, have been followed up with my query “By the way, may I run a new opportunity past you?” So in the end, the best way to treat “I’ll Call You” from a Recruiter is to view it as the beginning of a beautiful friendship. (Giving props to Bogey.) Not the dismissive end of a brief encounter. (Ala Charlie Sheen.) Your Recruiter likely wants to help. It’s just he/she may not be able to do so right now. But when that perfect project does come along with criteria that matches your background & skill set, then both you and the Recruiter will be…Winning!

Wendy Gawlik CPC

By Michael Neece, Monster Contributing Writer

1. Confusing an Interview with an Interrogation
Most candidates expect to be interrogated. An interrogation occurs when one person asks all the questions and the other gives the answers. An interview is a business conversation in which both people ask and respond to questions. Candidates who expect to be interrogated avoid asking questions, leaving the interviewer in the role of reluctant interrogator.

2. Making a So-Called Weakness Seem Positive
Interviewers frequently ask candidates, “What are your weaknesses?” Conventional interview wisdom dictates that you highlight a weakness like “I’m a perfectionist,” and turn it into a positive. Interviewers are not impressed, because they’ve probably heard the same answer a hundred times. If you are asked this question, highlight a skill that you wish to improve upon and describe what you are doing to enhance your skill in this area. Interviewers don’t care what your weaknesses are. They want to see how you handle the question and what your answer indicates about you.

3. Failing to Ask Questions
Every interview concludes with the interviewer asking if you have any questions. The worst thing to say is that you have no questions. Having no questions prepared indicates you are not interested and not prepared. Interviewers are more impressed by the questions you ask than the selling points you try to make. Before each interview, make a list of five questions you will ask. “I think a good question is, ‘Can you tell me about your career?’” says Kent Kirch, director of global recruiting at Deloitte. “Everybody likes to talk about themselves, so you’re probably pretty safe asking that question.”

4. Researching the Company But Not Yourself
Candidates intellectually prepare by researching the company. Most job seekers do not research themselves by taking inventory of their experience, knowledge and skills. Formulating a list of accomplishments prepares you to immediately respond to any question about your experience. You must be prepared to discuss any part of your background. Creating your talent inventory refreshes your memory and helps you immediately remember experiences you would otherwise have forgotten during the interview.

5. Leaving Your Cellphone On
We may live in a wired, always-available society, but a ringing cellphone is not appropriate for an interview. Turn it off before you enter the company.

6. Waiting for a Call
Time is your enemy after the interview. After you send a thank-you letter to every interviewer, follow up a couple of days later with either a question or additional information. Try to contact the person who can hire you, and assume that everyone you met with has some say in the process. Additional information can be details about your talents, a recent competitor’s press release or industry trends. Your intention is to keep everyone’s memory of you fresh.

Zacks Equity Research, On Thursday July 28, 2011, 4:10 pm EDT

The restaurant industry is finally showing improvements and seems poised for long-term growth. Riding on the back of a slowly reviving U.S. economy and the consequent rise in comparable-store sales, restaurant operators have managed to post improved results in recent months. We expect restaurant companies to continue delivering better numbers in the upcoming quarter over the year-earlier period.

In second quarter 2011, most big names in the industry outperformed the Zacks Consensus estimates. More good news came from the NPD foodservice market research report, which stated that annual visits to restaurants are expected to increase by 8% over the next ten years.

A recent survey by the National Restaurant Association revealed that the Restaurant Performance Index (RPI), measuring the health and outlook on the U.S. restaurant industry, was 99.9 in May, down 1.0% from April. The slowdown in May was temporary.

For the first time in six months, the RPI stood below 100 in the month. The RPI run-rate in the last six months connotes improvements in same-store sales and customer traffic.

The Current Situation Index, which measures comparable-store sales, traffic counts, labor costs and capital expenditures in the restaurant industry was 99.2 in May, down 1.1% from April. The Expectations Index, which measures restaurant operators’ six-month outlook on the above indicators, stood at 100.6, down from 101.5 in the prior month. Restaurant operators’ capital spending plans are also on the rise, reaffirming their optimistic outlook on the industry.

Going Forward

Looking ahead, we see solid top-line trends. We believe well-positioned companies will drive above-average traffic trends and enjoy pricing power, leading to same-store sales increases in 2011. The economy is continuing to improve, albeit at a modestly lower rate, but a sluggish labor market, over-supply of restaurants in the industry, higher gasoline prices and food cost inflation may weigh on industry profitability.

Restaurants have been trying to win back cash-conscious guests by revamping promotions, offering discounts and focusing on value-for-meal menus. However, the tendency to offer discounts has been moderating. We remain cautiously optimistic over the near-to-medium term, with consumers continuing to look for value, distinct dining experiences, as well as convenience and enhanced menu deals in a gradually improving economic backdrop.

Drivers of the Restaurant Industry

The U.S. restaurant industry consists of Quick Service Restaurants (QSR), Midscale Restaurants, Casual Dining, Non-Commercial and Fine Dining/Upscale restaurants.

In the midst of what is considered to be a moderate recovery, there are three potential drivers of net income growth for the restaurant industry: unit expansion, same-store sales, cost-containment efforts and marketing tools.

Unit Expansion: Emerging from a lackluster economy, most of the companies have accelerated their pace of restaurant openings. With the expected recovery in consumer confidence, companies are turning back to unit expansion, though not aggressively.

BJ’s Restaurants Inc. (NasdaqGS: BJRI – News) plans to open 12 to 13 restaurants in fiscal 2011 compared with 10 restaurants in fiscal 2010. In the long run, there still exists room to open at least 300 outlets. Chipotle Mexican Grill Inc. (NYSE: CMG – News) plans to open 135–145 new restaurants in 2011, maintaining a growth rate of 13%.

In fact, the companies are set to explore international markets. While Chipotle is primarily concentrating on European countries including U.K., Germany and France, Buffalo Wild Wings Inc. (NasdaqGS: BWLD – News) will expand its overseas footprint by opening more than 50 company-owned and franchised restaurants in Canada over the next 5 years. Another restaurant, P.F. Chang’s China Bistro Inc. (NasdaqGS: PFCB – News) has also eyed the Canadian market.

Darden Restaurants Inc. (NYSE: DRI – News) announced a formal area development agreement with Americana Group to spread its operations in the Middle East. Several food chains including Denny’s Corp. (NasdaqCM: DENN), Pollo Tropical of Carrols Restaurant (NasdaqGM: TAST – News) and Starbucks Corporation (NasdaqGS: SBUX – News) intend to tap the fast-growing Indian market.

McDonald’s Corp. (NYSE: MCD – News) and Yum! Brands Inc. (NYSE: YUM – News) already have considerable coverage in India. Companies like Yum! Brands and McDonald’s are aggressively expanding in China to capitalize on the fast-paced economic growth in Asia.

Same-Store Sales: The second driver consists of menu price increases and traffic counts. Restaurant operators reported positive same-store sales and customer traffic growth in recent months. Growth in menu price has accelerated, as per figures from the Bureau of Labor Statistics.

Cost-Containment Efforts: Some cost cuts have been achieved through integrated information systems, including point-of-sale, automated kitchen display, labor-scheduling and theoretical food cost systems.

Marketing Tools: Social media as a marketing tool has created ripples in the industry. As per National Restaurant Association, 8 out of 10 operators support the view that social media will become an important marketing tool in the future. Hence, they are likely to incorporate Facebook, online review sites, Twitter and blogs into their marketing mix over the next two years.

OPPORTUNITIES

With the economic outlook improving, the fortunes of a number of industry players have turned around. These companies promise long-term growth opportunities:

Buffalo Wild Wings (NasdaqGS: BWLD – News) offers investors one of the strongest growth stories in this space. Buffalo Wild Wings had also been able to consistently deliver positive comps during the height of market turmoil.

With consistent earnings and a healthy balance sheet, McDonald’s (NYSE: MCD – News) provides relative safety and moderate growth opportunities in the current scenario, as well as exposure to faster-growing international markets. McDonald’s U.S. comparable-store sales have been showing continued uptrend since the last few months on strong sales of beverage as well as core menu products.

Boasting a unique position in the hyper-competitive bar and grill segment, yet another stock, BJ’s Restaurants (NasdaqGS: BJRI – News) offers investors a strong growth story with a viable business strategy and debt-free balance sheet. The company delivered impressive second quarter results in terms of earnings per share and same-store sales growth.

Improved Californian Market

The core California market, which was badly hit by the recession resulted in a high rate of unemployment and weak consumer confidence, has started to turn around. We see plenty of growth opportunities in the California and Texas markets. BJ’s Restaurants and Red Robin Gourmet Burgers Inc. (NasdaqGS: RRGB – News) are expanding rapidly in California.

Job Growth in the Sector

The restaurant industry is the major contributor to job growth in the U.S. According to the National Restaurant Association, Texas and Florida will likely show the strongest job growth over the next 10 years.

Remodels and Menu Innovations Remain Key to Success

Additionally, restaurants are accessing different means to plug the problems of heightened competition in a somewhat over-supplied domestic market. Companies continue to reduce their energy consumption and are remodeling their restaurants to give an up-market feel. They are rolling out new, smaller prototypes to augment the perception of value and drive traffic thereby reducing construction and occupancy costs to enhance returns on capital.

While Darden has embarked on an extensive remodeling plan for its core brands like Olive Garden and Red Lobster to spur their same-store sales, Chipotle Mexican Grill is introducing typical Southeast Asian cuisine coupled with naturally raised food, for which it is well known.

The introduction of small plates or individual appetizers by several chains such as California Pizza Kitchen, BJ’s Restaurants and Buffalo Wild Wings has already tasted success. Limited Time Offers are also on the rise following the success of Buffalo Wild Wings and Red Robin Gourmet Burgers.

Franchise-Driven Business Model

Most of the companies are transforming to more a franchise-centric model to reduce the volatility in earnings and increase cash flow generation. However, Panera Bread Co. (NasdaqGS: PNRA – News) is slightly more inclined toward company-owned unit openings, which speaks to the company’s fundamental strength and makes us optimistic on the stock.

Breakfast Menus a Key Driver

Breakfast has accounted for nearly 60% of the U.S. restaurant industry and remains a key driver of traffic growth in recent years. Over the past five years, morning meal traffic has increased at an average rate of 2% per year, while lunch visits were flat, and supper traffic declined 2% per year on average.

We can thereby conclude that growth potential remains mainly in the QSR markets. Leveraging the trend, The Wendy’s Company (NYSE: WEN – News) has expedited its breakfast menu in different markets. The company targets to have about 1,000 restaurants serving its new breakfast by the end of this year.

According to an analysis by NPD, which has a ten-year projection of foodservice trends based on aging, population growth and trend momentum, servings of breakfast sandwiches are projected to outpace the industry’s growth forecast. Annual servings per capita of breakfast sandwiches at foodservice are expected to jump from 11 in 2004 to 14 in 2019.

Currently, there are a number of stocks in the restaurant industry universe with a Zacks #2 Rank (short-term Buy rating). These include BJ’s Restaurants, Buffalo Wild Wings, Chipotle, Darden, McDonald’s.

WEAKNESSES

Higher Food and Gasoline Prices

Food costs account for about one-third of restaurant sales. Wholesale food prices have been on the rise this year. Prices of corn, wheat, coffee and other commodities have also trended up, mainly due to a decline in the U.S. and Russian production prospects, compelling many restaurants to raise prices on some of their products.

The companies are expecting industry-wide increases in commodity and energy costs for fiscal 2012 as well. Dairy and beef prices witnessed a steep rise on a year-over-year basis.

With more expensive food and a spike in gasoline prices, people will have less disposable income and will prefer to dine at home. In our opinion, most of the restaurants will try to safeguard their margins by passing the cost increases to consumers. While big and established chains like McDonald’s, Yum! and Starbucks will survive the price increases due to their broad customer base and larger economies of scale, smaller chains will feel the heat of rising commodity costs.

Steep Competition and Promotional Offers

Competition among casual dining restaurants is expected to remain fierce with respect to price, service, location and concept in order to drive traffic. The environment is still value-sensitive. High discount rates applied to menu prices in order to battle difficult economic conditions are resulting in price wars among competitor companies.

Hence, the failure of any promotional offer will put pressure on the company’s same-restaurant sales growth. Dishes featured in the Olive Garden promotion from February to May failed to be accretive to Darden’s growth, for instance.

Shutdown of Regional Restaurant Chains

A large number of independent U.S. restaurant units fell victims to the downturn, while chain restaurants did relatively better. Large national chains, which attract mainly higher-income visitors, are performing better than regional restaurants as upscale-customers are recovering faster than the lower-income group.

Lag in Traffic Growth Barring Fast Casual Restaurants

According to a recent NPD foodservice market research report, visits to the leading fast casual restaurant chains grew 17% over the last three years while the rest of the industry experienced its steepest traffic declines. However, fast casual unit availability increased 12% since 2007.

Visits to the leading fast casual restaurant chains like Chipotle and Panera were up 6% for the year ending December 2010 versus a year ago. This compares with a 1% decline in total industry visits for the same time period.

Given the lack of overall earnings catalysts, it is difficult to be enthusiastic about a number of restaurant stocks. There are still quite a few names that lack the earnings catalysts of their better positioned peers. These include Brinker International Inc. (NYSE: EAT – News), Yum!, The Cheesecake Factory Inc. (NasdaqGS: CAKE – News), Einstein Noah Restaurant Group Inc. (NasdaqGM: BAGL – News) and Domino’s Pizza Inc. (NYSE: DPZ – News), all of which retain the Zacks #3 Rank (short-term Hold). Jamba Inc. (NasdaqGM: JMBA – News) and Denny’s (NasdaqCM: DENN) retain the Zacks #4 Rank (short-term Sell).

Conclusion

The restaurant industry is not immune to uncertainties in the macro economy. Companies appear to be in a good position to take advantage of an improved economy as evident from their capital budgets. Easy comparisons from the prior year will likely place this year’s performance in a favorable light.

On the consumer front, while they were previously struggling