Article

Part II: NRA outlines industry imperatives

The association's new strategic plan tackles issues from food safety to profitability and sustainability.

September 20, 2009

"We can do a lot to make this industry more sustainable," Sweeney said. "If we help the environment and it helps the individual, that can have an impact on the bottom line as well."

Living near fast food locations increases the risk of obesity.

Cars idling at drive-thrus create pollution.

Tax on soft drinks could fund health care reform.

Judging by the headlines, the industry just can't get a break these days. The National Restaurant Association is all too aware of these and other challenges operators face daily. That's why the organization is increasing its efforts to lead the solution on health, environmental and governmental issues.

The NRA's new five-year strategic plan includes four imperatives to improve how restaurants deal with these issues. The association's intent is to drive change not only within the organization but also within the industry. Last week, FastCasual.com addressed the plan's Jobs and Careers imperative. Today, we take a look at the remaining three: food and healthy living; sustainability and social responsibility; and profitability and entrepreneurship.

Food and Healthy Living

The NRA wants to be involved in the food chain from "farm to fork" to meet the growing demands of safety and nutrition. Its goals in this imperative include:

Increasing food safety and security in the restaurant industry
Increasing restaurant nutrition information, availability and consumer awareness
Improving public perceptions of the restaurant industry relating to food and healthy living

The association has long focused on food safety, from its ServSafe certification products to its lobbying for tighter regulations governing the food chain. But there is still more to do in those areas and others, said Dawn Sweeney, the association's president and CEO.

For example, the association needs to lobby for legislation that meets consumer demands in areas like nutritional issues, including obesity and sodium content, she said. It also needs to be part of the public dialogue on such topics, meeting with groups such as the American Heart Association.

The association also needs to better tell the story of its efforts to promote healthy lifestyles, Sweeney said. The NRA already has taken some steps in this area, such as its sponsorship of HealthyDiningFinder.com, a site that lists member restaurants' better-for-you options and offers tips on nutrition.

While the NRA is doing what it can move the industry forward, operators also need to do their part. Many restaurants, especially in the fast casual segment, offer a variety of better-for-you menu items, enough for inclusion on the Healthy Dining Finder Web site. Sweeney said the goal is for every restaurant in the country to be listed.

Sustainability and Social Responsibility

With this imperative, the association is calling on the industry "to meet the opportunity of sustainability and philanthropy head on," according the NRA's strategic plan. The goals include:

Improving efficiency of water and energy usage and adopting other sustainable practices in the restaurant industry
Increasing public awareness of charitable activities by the restaurant industry
Improving public perceptions of the restaurant industry relating to sustainable practices and social responsibility

Some fast casuals are already taking such steps. Companies from Burgerville to Chipotle to Pizza Fusion have either incorporated sustainable practices into their operations or constructed Leadership in Energy and Environmental Design certified buildings.

Profitability and Entrepreneurship

The industry operates on some of the tightest margins in business, and any change in the tax burden can have significant consequences. This imperative focuses on reducing some of that burden. It also seeks to encourage more people to become restaurateurs. The goals of this imperative include:

Increasing restaurant industry profitability
Improving the success rate for new and established restaurant operators
Improving public perception of the restaurant industry relating to entrepreneurship and opportunity

The NRA has always worked to help operators improve their margins by lobbying Congress on a variety of issues and tax laws. Its focus now, Sweeney said, is to make clear to legislators how tight the industry's margins are and how operators are hurt by the increasing number of regulations. And operators can help the NRA's effort by working with their state association.

Sweeney said she recognizes the industry's diversity of segments and categories. However, along with its immense size, that diversity is not only a challenge but also a strength. That size, and the industry's economic contributions, allow the association to accomplish more as it works to address its issues.

As the NRA works to execute its strategic plan — realigning its staff, hiring new talent, revamping its Web site and working with the state associations — Sweeney said she continues to see evidence that the association is on track. The association's priorities may evolve as the strategic plan is implemented, but it's clear the NRA has identified the right imperatives.

"There's not a single issue that hasn't had a place in this plan," she said. "I remain confident the plan is right."