LEADERSHIPAt Every Level Advocacy Education Outreach The National Restaurant Association and the National Restaurant Association Educational Foundation provide leader- ship on many fronts. We advocate poli- cy changes that aid the industry. We mobilize restaurateurs on grassroots issues and philanthropic initiatives. We provide tools to empower operators, advance employees and build our future workforce. We track economic trends that could influence the way our mem- bers do business. Whether you’re a deli owner or fine-dining operator, a family- restaurant proprietor, or a CEO, we work for you. TABLE OF CONTENTS Leading Our Members Forward . .5 Advocating Pro-Restaurant Policies . .7 Serving Our Communities . .11 Promoting the Restaurant Industry . .13 Helping Operators Manage Risk . .15 Empowering Our Workforce . .17 Nurturing Future Workers . .19 Advancing Diversity . .21 Bringing Industry Leaders Together . .23 Hennessy Program Turns 50 . .25 Leadership . .27-39 Photo Credits . .40 NRA Show® 2005 was one of the year’s highlights for the National Restaurant Association, attracting more than 73,000 attendees to Chicago. 2 Dear Colleague: We have never been more proud to be a part of this great industry. It’s been quite a year. Three months after we assumed chairmanship of the National Restaurant Association and National Restaurant Association Educational Foundation last May, Hurricane Katrina hit the Gulf Coast. Within six weeks, more than 17,000 restaurants from around the country, led by the National Restaurant Association, pulled together in an unprecedented grassroots effort that ultimately raised more than $12.5 million for the American Red Cross’s hurricane-relief efforts. The Dine for America effort is one example of how restaurateurs lead. The Association and its members also are front and center in critical national debates, fighting for immigration reform and solutions to rising health-care costs, abusive lawsuits and other issues. National media outlets have dubbed the Association, along with the U.S. Chamber of Commerce and four other national business organizations, as part of the so-called “Gang of Six,” in recognition of our industry’s impact on public policy. Restaurants lead in other ways too. Through programs like the NRAEF’s Leadership & Management Program; the new NRAEF ManageFirst ProgramTM for college, university and professional school students; our thriving ProStart® program for high school students; and our scholarships and mentoring initiatives, we help recruit, train and advance a diverse workforce of 12.5 million. This year the NRAEF unveiled its fourth edition of ServSafe®, our 30-year-old food-safety training and certification program. We consider this a tremendous achievement. Our leadership in this area has touched millions—not just the 300,000-plus foodservice professionals certified through ServSafe each year, but the millions of guests they have served. And in its inaugural year, the ServSafe AlcoholTM program has met with widespread acclaim and been adopted by industry-leading companies. Our strong partnership with our 53 state restaurant association partners makes it all possible. We have 53 extensions of our national effort across our country, and are truly “one” in support of our great industry. So when you talk about leadership at every level, we believe that the nation’s restaurateurs are a shining example. Our 925,000 restaurant locations are taking the lead in outreach, advocacy and education. We are proud of all we have accomplished in the past year and invite you to read more about it. Sincerely, Craig S. Miller, FMP Ferdinand E. Metz, CMC Chairman of the Board of Directors Chairman of the Board of Trustees National Restaurant Association National Restaurant Association Educational Foundation 3 LEADING OUR MEMBERS FORWARD Membership Climbs 70 Percent Since 2000 The National Restaurant Our benefits also include the all- Association is larger and more new Washington Report newsletter, influential than ever. which keeps members informed about public policy, legal, food We represented a record 375,000 T safety and other developments restaurant locations in 2005, 70 affecting their operations. percent more than we did in 2000. We’re growing because restaura- Keeping an eye on our presence in teurs recognize the value the Washington, D.C., the Association Association provides and our in 2005 launched an energetic Pat Anton, Bill Anton, strong portfolio of member capital campaign to ensure a solid Craig Miller benefits. future for one of our most impor- tant assets: the National Guided by a committee of restau- Restaurant Association headquar- rateurs, the Association unveiled National Restaurant ters building. The building is in the several new programs in the past Association membership heart of the nation’s capital, less increases 70 percent since year to help operators meet their than a half-mile from the White 2000 top business challenges. 375,000 House and two miles from Capitol 358,000 315,000 One is Restaurant Direct, a bank- Hill, where decisions made by 300,000 254,500 235,500 ing service for restaurant employ- Congress affect every restaurateur 220,000 ees. Launched in January 2006, in the country. the program gives Association members a free tool to attract 2000 2001 2002 2003 2004 2005 2006 and retain employees. Through the program, restaurant employees receive free checking accounts and savings on mortgages, home equity loans and credit lines. Restaurant Direct adds to a grow- ing list of member benefits, includ- ing the Association’s custom TakeCharge program. TakeCharge helps restaurateurs reduce the cost of credit-card processing and gen- erate more revenue, while giving customers more payment options. 5 ADVOCATING PRO-RESTAURANT POLICIES Restaurateurs Become Leading Force While our members handle day-to- advocates immigration reforms that day operational challenges, the would protect U.S. borders; help National Restaurant Association qualified undocumented immi- works to ensure restaurateurs have grants working in the United States Wa voice in Washington. The restau- obtain legal status; and increase rant industry’s priorities are to the number of international work- secure a business-friendly environ- ers eligible to enter the United ment and prevent burdensome laws States when American workers are and regulations. unavailable. The Association co- chairs the multi-employer Essential Craig Miller, Last September, the Association’s Worker Immigration Coalition, President George Bush leadership on public-policy issues which represents the interests drew Vice President Richard of thousands of employers who Cheney and U.S. Commerce advocate sensible changes to the Sen. John McCain, Secretary Carlos Gutierrez to the Xavier Teixido U.S. immigration system. Association’s 20th Public Affairs Conference. More than 650 politi- The Association also works to cally active restaurateurs attended make affordable health care more the lobbying event in the nation’s accessible to restaurateurs, who capital, which took place just a few cite rising health care costs as a weeks after hurricanes Katrina and top concern. The Association backs Rita devastated parts of the Gulf bills that would allow employers to Coast. Restaurateurs from 46 states join together in multi-state Small told lawmakers about the hurri- Business Health Plans, which canes’ toll on thousands of restau- would give smaller businesses rant businesses, helping to spur increased health-insurance buying Congress to pass the Katrina power. Association members Emergency Tax Relief Act of 2005 helped convince the House to pass and the Gulf Opportunity Zone bill. a Small Business Health Plans bill Signed by President George W. last summer and are pushing Bush, the laws contained hiring senators to pass the measure. incentives and tax relief for hurri- This year, restaurateurs and others cane-affected employers. in the food industry are pressing This year, immigration, legal, tax Congress to ratify legislation to and health-care reform remain protect restaurants and food manu- among the restaurant industry’s facturers and sellers from abusive Vice President Richard Cheney top priorities. The Association lawsuits that attempt to make food 7 sellers liable for customers’ weight MasterCard®, Visa® and other gain. Twenty-three states have banks of violating federal antitrust approved similar bills to prevent laws with certain hidden fees. state-level lawsuits. The federal Backed by research that shows 15 bill, which passed nearly three to percent to 40 percent of restaurant one in October in the House, is sales come from travelers and visi- gaining momentum and awaits tors, the Association continues its Senate action. The House also push for effective U.S. tourism poli- passed the Association-supported cies. Association President and Lawsuit Abuse Reduction Act, Paymon Raouf, Paul Hartgen, Chief Executive Officer Steven C. Sen. Harry Reid which would sanction attorneys Anderson was one of six tourism- who file frivolous suits. industry executives to attend a As mid-term elections approach, series of meetings last year with Ted Balestreri the National Restaurant officials from the State Department, Association Political Action Congress and the Department of Committee is working to elect a Homeland Security. Because of pro-restaurant majority to those efforts, Secretary of State Congress. The NRA-PAC in 2004 Condoleezza Rice and Homeland helped support 195 pro-restaurant Security Secretary Michael Chertoff candidates for House