tag:blogger.com,1999:blog-78826803194274471112024-03-13T04:10:45.974-04:00Restaurant Reality CheckNews and Peter Romeo's views on the business behind the nation's favorite pastime.Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.comBlogger669125tag:blogger.com,1999:blog-7882680319427447111.post-43182854686050630382013-09-11T10:25:00.002-04:002013-09-11T10:25:32.675-04:00Never forgetting, as if we could
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<span style="font-size: 16.0pt;">Memories of 9/11 are fixed in
the public consciousness, though the exact recollections seem to be a function
of where and how someone witnessed the nightmare. Watching it outside our
windows, close enough to cough on the dust after we felt the rumble of a tower
collapsing, we at Restaurant Business had a Cinematic viewpoint. We knew that
friends and family had likely died, as had all the members of our industry who
worked in Windows on the World, the restaurant atop Tower One. We had just
featured pastry chef Heather Ho on our pages. We assumed, rightly, that she was
among the dead. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">I promised myself that I’d
never let a September 11 pass without writing about the horror and sorrow of
that day. Letting time desensitize the memory is like opening one of those souvenir
shops that peddle NYPD hats to tourists who want to see where a real-life “Die
Hard” scene unfolded.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">So forgive me if I take a
detour from talking about restaurants, a business that was scarred along with
everyone else 12 years ago. Today, I wanted to get personal, since the most
telling memories from 9/11 are the ones that affected us intimately.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">One of the most terrible
moments, for instance, was our inability to contact a staff member’s sister-in-law
who lived literally in the shadow of the Towers. Neither the woman’s husband
nor our co-worker could raise her on her mobile phone, and she wasn’t in the
apartment (the husband bulled his way back to check.) As the time passed, we on
the staff steeled ourselves for the likelihood that the woman was dead. I
remember rehearsing what I’d say to our colleague if her relative was indeed
dead. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">She would be found in a
hospital about three days later, recovering from a blow to the head. Failing
debris had knocked her out as she was walking the dog. The Golden Retriever was
found a few days afterward in a veterinarian’s office, being treated for its
own head injury.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">Then there were the fighter
planes that seemed to materialize in a flash over the skies—too quickly, many
of us thought, to be our own defense craft. People were hugging the exterior f
buildings in case those fears were justified. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">Outside our building was a
steady stream of people marching up from Ground Zero, covered in white powder,
gratefully accepting offers of water from fellow pedestrians. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">At the time, we were in a
news blackout because of our location. No phones, no TV, and internet service
that was too jammed with use to deliver any reports from the outside world. As
far as we knew, the attacks were still underway. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">My wife worked across the
street from Penn Station and down the road from the Empire State Building, two
obvious targets. Yet her office had managed to cadge a few pizzas from a shop
nearby, and food became something you had to consider. I managed to coax her
out of the building, ostensibly to get lunch, but no restaurant would serve us;
they were hoarding food, not knowing when the next delivery would come.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">So we camped in her office,
the uptown outpost of the Thompson financial information service. Much of its
operations were across the street from the World Trade Center towers. There was
no word about how those people had fared. But, as we munched on pizza, they
started showing up at the midtown office, saturated with dust, many crying.
They were received with the most heartfelt hugs I’ve ever witnessed, because
they were alive. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">Eight people never showed.
You’ll hear them remembered on today’s commemorations. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 16.0pt;">Because of Restaurant
Business’ proximity to Ground Zero, our offices were shut for the remainder of
the week. Before the National Guard soldiers would allow us inside, we figured
out a way to sneak into the building and send an abbreviated version of the
daily e-letter we published at the time.<span style="mso-spacerun: yes;">
</span>It consisted of an explanation as to why readers wouldn’t be getting a
transmission for awhile, and one three-paragraph story about how the New York
restaurant industry had already rallied to feed the rescue workers at Ground
Zero. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">We received about three dozen
e-mails, from as far away as Australia. All had the same message: “For God’s
sake, just be safe.”<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">Meanwhile, the discoveries
continued. Our managing editor was puzzled because he couldn’t reach a
boyfriend, a computer consultant who did a lot of work for financial firms. We
tried to take a positive view, speculating that the missing man was focused
24/7 on re-plugging customers’ computer systems back into the internet. Then
our M.E. checked the last e-mail he’d received from Roy. It’d been sent from
the guest log-in of Cantor Fitzgerald. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">You’ll hear Roy’s name read
at Ground Zero today, too.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">Similar experiences would continue
for months. The New York Times ran profiles of every victim. It wasn’t unusual
for the people in the office to hear from distant friends or high school
classmates who’d seen a profile on someone we’d known in common. Did I see that
Bob Baierwalter was one of the victims? How about Timmy Coughlin? Or Tom Langone?
You remember, he was that guy who went to high school with your sister? His
bother worked in the post office?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">But the surprises were
sometimes like a Disney movie. On 9/11, I figured that the victims would
certainly include Michael Lomonaco, the chef at Windows on the World, with whom
I’d had dinner at a Culinary Institute of America event. We were looking for a
house, and Michael had just found one in a New York suburb. He’d invited us to
come see the place and scope out his new town. Now, I figured, he was dead, the
result of showing up for work that day.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">But the news would emerge
that Michael stopped that day at an optician’s shop on one of the Tower’s
ground because his new glasses were ready. He escaped unscathed.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">There are so many
emotion-laden other memories from that time: People passing cell phones around
on the train, so ash-covered commuters whose batteries had died could let loved
ones know they were safe. Or the day months later when a few dozen mobile
phones, including mine, rang simultaneously on a crowded commuter train.<span style="mso-spacerun: yes;"> </span>Everyone on the train looked at each other,
fearing the worst. Sure enough, there was a new report of another airplane
hijacking; family was calling to let us know, and to see where we were. It was,
of course, a false report.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 16.0pt;">There’s no shortage of
memories, for all of us. Today, and for as long as we live, it’s incumbent on
us to recall those times so we, as an industry and a nation, never, ever
forget.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-42051964253722074802013-09-04T11:08:00.001-04:002013-09-04T11:08:18.117-04:00What restaurateurs could learn from The Home Depot
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<br />
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The co-founder of The Home Depot volunteered some
home-maintenance advice after my phone went dead three times during an
interview last week.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
“You have to pay your phone bill,” Bernie Marcus said with
obvious merriment when we reconnected. “Now you can do it online or through
e-mail. It’s really easy.”<o:p></o:p></div>
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<br /></div>
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So was interviewing one of the best-known entrepreneurs in
American retailing, even if I’m a restaurant writer who doesn’t know more about
The Home Depot than what I’ve experienced as a customer. Hearing Marcus recount
his late-‘70s vision for the category killer, I could’ve been listening to any
restaurateur reliving a start-up. Still, the details were different enough to
provide a unique perspective to chain builders in foodservice, which is why
we’ve booked Marcus as a keynote speaker at our Restaurant Leadership
Conference.<o:p></o:p></div>
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<br /></div>
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Consider, for instance, how Marcus and partner Art Blank
tried to differentiate The Home Depot through its style of service. They wanted
their associates on the floor to be teachers who could guide customers through
a project, not drones who’d merely fetch a product or take down orders to fill.
If there are restaurateurs still in business who don’t want their wait staff to
know the menu inside and out, I’ve yet to meet them. And if the server can
enhance the experience with recommendations or insights, isn’t that preferable,
if not ideal?<o:p></o:p></div>
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<br /></div>
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To continue reading, <a href="http://www.monkeydish.com/blogs/what-home-depot-can-teach-restaurateurs?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=Test%20-%20MonkeyDish%20Outbound%20B%2009-05-2013%20(1)&utm_content=&spMailingID=42488561&spUserID=MzQ1NjE3NjQ3NjYS1&spJobID=201740586&spReportId=MjAxNzQwNTg2S0">click here</a>.</div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-63020056602274696812013-08-28T10:49:00.002-04:002013-08-28T10:49:21.303-04:00Why I don't fear zombies
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<br />
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You may be surprised to learn the Centers for Disease
Control and Prevention has devoted a section of its website to preparing for a
zombie apocalypse.<span style="mso-spacerun: yes;"> </span>What a shovel-load of
nonsense. The real threats to mankind are the drooling, lurching restaurant
fanatics who suspend all reason in their relentless march toward whatever’s on
their to-die-for list. Consider, for instance, these developments of the past
week:<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]-->When Dominique Ansel Bakery temporarily doubled
its limit on Cronuts to four per customer, the CBS radio station in New York reported
the policy change as one of the day’s top news stories. </div>
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<br /></div>
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To keep reading, <a href="http://www.monkeydish.com/blogs/why-i-dont-fear-zombies">click here</a>. </div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-57997550596076885582013-07-23T18:14:00.002-04:002013-07-23T18:20:49.299-04:00News nuggets you might've missed today<br />
<b><span class="Apple-style-span" style="font-size: large;">Domino’s finds tech to be a market share gainer</span></b><br />
<div>
Who says discounting is the only way to snag pizza customers? Domino’s is learning that technology can also pull market share from competitors, especially mom-and-pops.<br />
<br />
“Our focus on technology and consumer access via digital ordering continues to give us an edge over our competition,” CEO Patrick Doyle explained to investors after revealing that the chain has updated its app for the new Windows Phone 8. <br />
<br /></div>
<div>
It’s an advantage “particularly versus the smaller players that continue to lag behind,” Doyle continued. “Even if the regionals catch up to the level of technology we currently offer, we're already several years ahead of them and expect to keep pushing to lead the industry on technological innovation.”<br />
<br /></div>
<div>
Doyle was asked how much of Domino’s business will come from digital ordering platforms in the future. “I certainly think that we'll see it above 50%,” he replied. “We've got 3 or 4 countries that are now at that level.”<br />
<br />
Doyle noted that most of the chain’s sales growth is coming today from the theft of competitors’ business rather than from growth of the whole pizza segment.<br />
<br />
<b><span class="Apple-style-span" style="font-size: large;">Oh, good: More on the royal birth…</span></b></div>
<div>
Restaurants can turn any high-profile event into a promotional opportunity, even the rare birth of a monarch. Consider, for instance, Dunkin’ Donuts’ introduction of a new Royal Munchkin today. There’s no edible crown, just pink, blue and white sprinkles.<br />
<br />
Meanwhile, sister chain Baskin-Robbins is stoking global elation over the arrival of the U.K.’s future king with the introduction of a Baby Shower Cake. The treats “help people celebrate the birth of the Duke and Duchess of Cambridge’s new son,” crows parent company Dunkin’ Brands. And if they generate a few extra bucks for franchisees, all hail the king.<br />
<br />
New York City’s Tea and Sympathy played off its British theme by breaking out the bubbly after the birth was announced. Patrons no doubt drank the hooch with a bent pinkie while muttering Brish-isms like, “I say, old chap…”<br />
<br />
<b><span class="Apple-style-span" style="font-size: large;">Wendy’s new burger is no piece of cake</span></b><br />
Adding the new Pretzel Bacon Cheeseburger wasn’t without its back-of-the-house challenges for Wendy’s, CEO Emil Brolick revealed to investors in a conference call today.<br />
<br />
“When you look at our operating system, I will tell you it's not easy handling things like Pretzel Bacon Cheeseburgers,” he explained. To build it, kitchen staffers use “a very, very high quality natural cheddar cheese.” Brolick didn’t say it, but cheddar is usually brittle. And because of the quality, Wendy’s version isn’t at the bottom of the pricing range.<br />
<br />
Ditto, presumably, for the smoky honey mustard that the chain uses just for that sandwich. And the bacon “is extremely hard to find out there, it's a center-cut bacon,” stressed Brolick.<br />
<br />
The result, he said, is one of Wendy’s most anticipated new products. “I would say you'd be hard-pressed to find this other than going to a quick casual restaurant,” Brolick noted. Yet, he observed several times, the price is more in the range of a traditional quick-service restaurant.</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-58918844032712229662013-07-19T11:25:00.002-04:002013-07-19T11:25:28.999-04:00Paying tribute to restaurant marketing's oldest timer
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<br />
<div class="MsoNormal">
People of a certain vintage tend to harbor special
appreciation for star performers of an advanced age. I, of course, wouldn’t
know about that, but I bet the coots in your business are all but jumping out
of their spats after seeing the Methuselah of restaurant marketing make another
comeback. Yes, McDonald’s Monopoly sweepstakes has been re-introduced this week
for its 26<sup>st</sup> annual appearance.<span style="mso-spacerun: yes;">
</span></div>
<div class="MsoNormal">
In promo years, that’s the equivalent of George Burns’
lifetime—added onto Jack LaLanne’s (youngsters: Ask your elders who those
whippersnappers were.)</div>
<div class="MsoNormal">
But it’s not sheer longevity, and undisputed effectiveness,
that makes the Monopoly sweepstakes worthy of its own wing in the Hall of Fame.
It survived a scandal some 13 years ago that makes Chicago politicians seem like
altar boys. The head of security for the game’s third-party administrator was
caught diverting big-dollar pieces to acquaintances.<span style="mso-spacerun: yes;"> </span>Yet Monopoly shook off the stigma and quickly
re-emerged as a consumer favorite.</div>
<div class="MsoNormal">
And what a favorite. Competitors routinely curse the promo,
and even McDonald’s franchisees cease their griping to praise the franchisor’s
program. It drives traffic and, equally important today, fosters the sort of
internet and social media buzz that translates into additional business.</div>
<div class="MsoNormal">
Consider the scale of the game. According to <a href="http://www.businessinsider.com/math-mcdonalds-monopoly-odds-probability-2013-7">the websiteBusinessInsider</a>, there were 602.5 billion game pieces in play. Keep in mind
that there are roughly 700 billion consumers (i.e., people) on the whole earth.
</div>
<div class="MsoNormal">
Indeed, you have to wonder: What’s better known today, the Monopoly
sweepstakes, or the board game that provided the theme?</div>
<div class="MsoNormal">
It’s a tribute to McDonald’s, and a reflection of its
awesome marketing might, that the sweepstakes is still going strong. For those
of us who are looking more and more like the little banker guy on the game
pieces, it’s especially awe-inspiring. </div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com1tag:blogger.com,1999:blog-7882680319427447111.post-48224339578646769492013-07-17T15:51:00.000-04:002013-07-17T15:51:06.805-04:00What were they thinking?
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<br />
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">This
has been a week of jaw-dropping restaurant blunders. Consider, for instance,
Wendy’s inadvertent lapse into pimp-speak during an otherwise routine promotion.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">Sure,
the mainstream fast-food chains have been going to extremes lately to snag
customers, but <a href="http://consumerist.com/2012/05/17/wendys-offer-of-a-small-hot-redhead-confuses-those-unaware-of-its-name-for-coffee/">the deal touted by Wendy’s </a>seemed really out there. Buy any
product, a coupon promised, and the chain would provide a hot little redhead,
completely free. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">To
be fair: The coupon actually read, SMALL HOT ORIGINAL REDHEAD, the key there
being the capital “R” in Redhead. That’s the shortened name of Wendy’s
proprietary coffee brand, Redhead Roasters. Still, it’s puzzling that no one
noted the suggestive wording.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">It’s
unlikely that McDonald’s will be snickering about its archrival’s misfire,
given the doh! move it logged almost simultaneously. Big Mac ended up with Egg
McMuffin on its face when <a href="http://live.wsj.com/video/mcdonalds-minimum-wage-gaffe-2013-07-17-12115725/C57B9FD5-483A-494A-82A3-EBB3B0849BB4.html#%21C57B9FD5-483A-494A-82A3-EBB3B0849BB4%20">The Wall Street Journal intercepted a worksheet</a> the
chain had distributed to its hourly workers as a financial planning guide. The
form was intended to help the crewmembers manage their dollars. Not dissimilar
to a P&L, it started with a space at the top where the user-employee would
list his or her monthly wages. So far, so good.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">But
by Line 2, McDonald’s looked insensitive. That was the space provided for the
employee to list the income from his or her second job. The chain was all but
conceding that a job at the Golden Arches wouldn’t be enough to live.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">It
was downhill from there. As examples of expenses, McDonald’s filled in such
figures on the form as mortgage or rent payments of $600, and healthcare
premiums of $20--or less than the employee contribution for McDonald’s own
plan, according to the WSJ. The report noted that the figures provided were
unrealistic and made McD’s seem out of touch with its employees’ financial
struggles.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">But
that PR stumble is nothing compared with the dunderheaded move of an Italian
independent in Winter Park, Fla.<span style="mso-spacerun: yes;">
</span>Unfortunately, it’s the whole restaurant industry that looks bad. The
place, Barducci’s, fired its whole staff—by text. The communication came on the
4<sup>th</sup> of July, and focused on the restaurant’s immediate closing. The
12 staffers had to infer that they were out of work. The rest of the world
heard about the cold-hearted in a flurry of news reports this week.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">A
quick <a href="http://www.huffingtonpost.com/2013/07/16/hops-restaurant_n_3601005.html">cut-off by one North Carolina restaurant</a> also worked against the industry
as a whole. According to local coverage that was soon picked up by the national
media, a Hops Grill in Charlotte surprised its customers by telling them
mid-meal that the place had to close. The guests were then given the check and
a take-out box.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">Just
to make the experience a little more memorable, the plug was pulled after cops
swarmed into the place at the request of management. Apparently there was
concern that customers might react badly to getting the heave-ho mid-bite.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman"; font-size: 16.0pt;">Hey,
everyone acts on a misconceived notion at one time or another. This just seems
to be the whole industry’s week. </span></div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-32073174850482850042013-07-01T11:54:00.001-04:002013-08-09T14:07:54.095-04:00The really big news<!--[if gte mso 9]><xml>
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<br />
<div class="MsoNormal">
Forget Edward Snowden, the Syrian revolution, Egypt’s
echo-revolution, or who’ll win “America’s Got Talent.” The big news last week
for anyone in this business has to be the closing of Brennan’s.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
There are few fine-dining landmarks that can rival it in fame
and distinction. Start with its role as a definer of New Orleans as a
world-class dining destination. Add its distinction as a leading proponent of
Creole cooking. Thicken the roux with a slew of distinctions, like developing
Bananas Foster, or serving a bread pudding that you could build a vacation
around. It’s reinvigorated itself more times than David Bowie, and must
consistently rank as one of New Orleans’ top tourist attractions.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Yet last week the sheriff’s office evicted management and
foreclosed on the place. Details are murky, in the style of any New Orleans
scandal, but it appears squabbling among the Brennans currently in charge cost
the 67-year-old place its lease, then its economic viability. Staffers who
showed up for work on Friday learned they no longer held some of the culinary
city’s most coveted service jobs.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Curiously, a few local news reports say the place has
already been scarfed up with another Brennan from a different branch of the
family. If those reports are true, New Orleans is fortunate indeed. Ralph
Brennan has his aunt Ella’s golden touch with restaurants, but a demeanor that
seems to dampen political infighting. It must be the accountant in him. He
knows how to create and run good restaurants, and his immaculate white hat can
only help in restoring luster to the Brennan’s name.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Still, the news was almost too bad to be true.<span style="mso-spacerun: yes;"> </span>The sun has set on icons like Locke-Ober in Boston, Tavern on
the Green in New York, and Chasen’s in West Hollywood. This week's casualty is a legend on another scale.</div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-41790184864115988062013-06-19T14:40:00.002-04:002013-06-19T14:40:27.447-04:00I want my pie
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<br />
<div class="MsoNormal">
The McDonald’s at JFK International Airport had an inventory
discrepancy after I recently ate there. If it reconciled sales of the
just-added Strawberry Pie with how many pies were still on hand at the end of
the day, the count would have been off by one. <span style="mso-spacerun: yes;"> </span>So would the tally of satisfied customers,
because I never got the pie—despite a wait of easily 30 minutes (hey, the
restaurant was by my gate.)</div>
<div class="MsoNormal">
The chain’s mounting service problems couldn’t have been on
starker display. Except, perhaps, for the snafu I witnessed three weeks later
at a unit almost in the shadows of the chain’s headquarters. </div>
<div class="MsoNormal">
Personal experiences are a shaky foundation for sweeping characterizations,
but the chain has acknowledged its service problems, though internally, not to
the public.<span style="mso-spacerun: yes;"> </span>Executives addressed the issue
in a webcast to franchisees earlier this year.</div>
<div class="MsoNormal">
According to reporters who saw the presentation materials,
the Golden Archers noted a climb in complaints about speed of service. </div>
<div class="MsoNormal">
Amen to that. It’s routine now to step away from the counter
and wait, and sometimes wait a long while, for your order, even if it’s nothing
out of the ordinary.</div>
<div class="MsoNormal">
The store in Oak Brook, where a fellow customer waited about
20 minutes for three ice cream cones, at about 3 in the afternoon, is printing
numbers on its receipts. Place your order, then pick up your food when the
number’s called.</div>
<div class="MsoNormal">
That’s a sign of plague. At the very least, use the
customer’s name, not a number. Talk about depersonalizing the customer.</div>
<div class="MsoNormal">
But the bigger issue is losing service speed when
convenience is your M.O. </div>
<div class="MsoNormal">
It’s a classic case of speed being sacrificed to add more
menu choices. The next rung down the ladder is losing quality to complexity.
McDonald’s should wise up and be sure that doesn’t happen to what is still the
service and quality standard of the quick-service market.</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com1tag:blogger.com,1999:blog-7882680319427447111.post-36387072763322284112013-06-17T23:54:00.005-04:002013-06-17T23:55:39.239-04:00Hottest food craze of 2013. For now.<style>
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</style> If you’re unfamiliar with a restaurant creation called the
Cronut, there’s probably not a bit of black clothing in your wardrobe. And
don’t embarrass yourself by asking youngsters on the staff if Daft Punk is sort
of like The Sex Pistols.<br />
<br />
<div class="MsoNormal">
You need to catch up with the times, man. The Cronut is the
strongest infatuation for New York foodies since the chocolate martini. It’s
also the most brilliant business innovation the industry has seen in some time.</div>
<div class="MsoNormal">
Imagine a light, flakey croissant in the shape of a
doughnut. Voila: <a href="http://dominiqueansel.com/cronut-101/">The Cronut.</a> So what’s the big deal? <span style="mso-spacerun: yes;"> </span>The New York purveyor, Dominique Ansel Bakery,
bakes only 200 of the delectables a day, then sells them for $5 each. </div>
<div class="MsoNormal">
People line up in the vain hope they’ll be graced with one.
It’s harder to get for die-hard New Yorkers than a rent-controlled two-bedroom.</div>
<div class="MsoNormal">
No doubt bakers and chefs are trying to concoct their own
versions as you read this. But they should be careful. The industry has seen
its share of flashes in the pastry pan. Consider these past skyrockets:</div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">The Chipwich:</b> Picture an ice cream sandwich made with oversized
chocolate chip cookies as the outer parts you hold. For a summer not long after
the Sex Pistols era, you had to buy one regularly from a fleet of Chipwich
sidewalk carts if you wanted any respect from fellow trendinistas. Then it was
gone as quickly as it started. But savvy marketers learned a lesson: If I
recall correctly, the Chipwich was outrageously expensive for street ice
cream—I think three or four bucks. It proved you could charge almost anything
for a product that was deemed trendy. It was also a harbinger of the trucks and
street food crazes.</div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Fresh-baked chocolate
chip cookies:</b> Around the same time, debates would erupt at the water cooler
over which purveyor had the best cookies: Famous Amos, David’s, or Mrs. Fields.
Again, you paid considerably more for that new batch of cookies, which had to
be fresh-baked, if not still hot, if you wanted the full effect. Hail the first
flush in modern times of the relatively small (and hence relatively guiltless)
indulgence, sold at a super-premium price.</div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Modern day s’mores:</b>
Not the old Girl Scout version, dripping with molten chocolate after the
marshmallow is melted over a campfire.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>These were much more of a stylized version,
usually offered in components that dessert eaters could prep at the table. </div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Krispy Kreme
doughnuts:</b> Yes, they’re still around. But their current popularity is a
step down from the craze they spawned in the 1990s when that Hot Now sign
flicked on. They were proof that an old standby can suddenly look chi-chi if
you put enough molten sugar on it.</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-76741021851545011092013-06-14T10:44:00.000-04:002013-06-14T10:44:12.502-04:00Divorce restaurant-style
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<br />
<div class="MsoNormal">
One of the downsides of my job is watching the very public divorce
of a chain and a top executive whose proven abilities have earned your respect
for years. Few of those breaks have been as painful to witness as Wednesday’s parting
of Cosi and its CEO for just a short stretch, Carin Stutz.</div>
<div class="MsoNormal">
It’s dismaying because of what Stutz gave up to take the
job—a shot at the loftiest posts of a multi-billion-dollar operation—but hardly
surprising. Reviving the one-time poster-concept for fast-casual made a
comeback of Vanilla Ice seem like a lay-up. The concept had been rushed into an
IPO before it was consistently profitable, and has wandered since. The
buildings are operational challenges, the menu is confusing, and opportunities
like selling a better cup of coffee have been squandered. Even the floor
doesn’t look or feel too good in many stores.</div>
<div class="MsoNormal">
A few weeks ago, <a href="http://www.monkeydish.com/ideas/articles/cosi-has-more-few-changes-oven">Stutz unveiled an ambitious and extremely detailedplan for invigorating sales and bolstering profits.</a> <span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">“After months of
practice and trial,” Stutz told shareholders at the time, “we finally figured
it out.”</span></div>
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Her remedies for reversing a sales and
profit slide extended to a new kitchen set-up for moving customers through the
Chipotle-like prep line faster and more smoothly. She also detailed plans to
offer a gluten-free bowl, and the adoption of more natural products, like a
chicken that actually cost less than the inferior-sounding version it will
replace. Clearly few aspects of the brand hadn’t been questioned, prompting
many to be tagged for tweaks, adjustments or complete overhaul.</span></div>
<div class="MsoNormal">
<span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">It was a long, long to-do list that
would clearly take time. But either the board didn’t want to wait, or Stutz
grew tired of mounting such a moon shot. In any case, it wasn’t a pleasant
ending. Divorce, modern-day restaurant style.</span></div>
<div class="MsoNormal">
The irony is how few people could boast of Stutz’s
qualifications assuming a rebuilt like that. She has grown up in the business,
rising through operations posts first in Wendy’s, then in Applebee’s. Many of
us pegged her as potentially the next CEO of Applebee’s. But then the chain was
sold to IHOP, and Stutz was considering new career paths.</div>
<div class="MsoNormal">
She was recruited by then Brinker International CEO Doug Brooks,
no operations slouch himself, basically to bring her into that organization. According
to the grapevine, Brooks told Stutz he wanted her in the organization, and here
were the jobs that were available at that time. </div>
<div class="MsoNormal">
First, Stutz facilitated the overseas expansion of Brinker’s
workhorse concept, Chili’s. Her later responsibilities were broadened so that
she apparently had more impact on domestic operations.</div>
<div class="MsoNormal">
Then came the jump to Cosi, where she’d have the chance to
run her own chain. </div>
<div class="MsoNormal">
Picking the aggrieved party in a situation like this isn’t
fair unless you have an impeccable mole inside corporate headquarters. I,
admittedly, do not. There’s also the reality that an exec’s strengths and a
chain’s immediate needs can slip out of sync. When the parent company is
public, as Cosi’s is, not much time can be provided to adjust the disparity.</div>
<div class="MsoNormal">
Hopefully neither party will regret the parting.<a href="http://www.blogger.com/null" name="_GoBack"></a></div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-33483900353215281232013-06-06T11:01:00.001-04:002013-06-06T11:01:16.320-04:00Forget the transvestite dwarfs in the trailer park
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<div class="MsoNormal">
If you’ve ever wanted to start a “Jerry Springer”-style show
for the restaurant industry, this is the week to do it. Insults and chairs will
be flying before you can say, “I caught my spouse cheating.”</div>
<div class="MsoNormal">
Consider the fisticuffs that would erupt with <a href="http://www.blogger.com/null" name="_GoBack"></a>these guests:</div>
<div class="MsoNormal">
--<b style="mso-bidi-font-weight: normal;">Chipotle Grill
founder and CEO Steve Ells and renowned chef David Chang</b>, who could
tag-team with another chef named Kyle Connaughton. Their tale, as reported in
the New York media, has more intrigue than a “Game of Thrones” episode, so
follow closely. </div>
<div class="MsoNormal">
Connaughton, a former protégé of British kitchen god Heston
Blumenthal, is suing Ells for reputation damage. The plaintiff contends that he
was fired by Ells for accusing the CEO of stealing intellectual capital from
Chang. </div>
<div class="MsoNormal">
According to press accounts of the suit, Ells had hired
Chang, the proprietor of Momofuku, to consult on a concept that would become
ShopHouse Southeast Asian Kitchen. Ells and Chang squabbled and split, but
Connaughton felt that Ells was still using Chang’s ideas, without letting the
chef know or paying him for the ideas. When Connaughton objected, he was
canned, according to the suit.</div>
<div class="MsoNormal">
Chang reportedly is not part of the legal action. But his
comments have suggested a lingering anger from the situation. So let the
furniture-flinging begin.</div>
<span style="font-size: 16.0pt;">--<b style="mso-bidi-font-weight: normal;">The
management of the New York Hilton and one of its higher maintenance guests. </b>Some
suggested props for the segment: A typical room service breakfast play, set
next to the grab-and-go choices that’ll have to suffice for an in-room
breakfast. The convention hotel is phasing out room service, figuring a food
shop can fill the need.<span style="mso-spacerun: yes;"> </span>We’re not
talking about a Red Roof Inn here; the Hilton’s room rates are high even by New
York standards. But the property sees no business value in delivering thirty or
forty dollar breakfasts to guests’ three or four hundred dollar rooms.</span><br />
<br />
<div class="MsoNormal">
--<b style="mso-bidi-font-weight: normal;">Taco Bell’s
marketing team and the co-founders of YouTube.</b> <span style="mso-spacerun: yes;"> </span>If a donnybrook erupts, expect other chain execs to fight
alongside Yum’s biggest brand. The industry is tired of contending with videos
that knuckleheaded employees or customers post on the site to gross out
customers. In this instance, an employee is licking a bunch of taco shells.
Taco Bell was quick to counter the fallout by declaring with assurance that
none of the shells made it to the production line. There was no apology for
hiring the sort of jack ass who regards pranks like those as the height of
hilarity.</div>
<div class="MsoNormal">
--<b style="mso-bidi-font-weight: normal;"><span style="color: black;">Hardee’s/Carl’s Jr. CEO Andy Puzder and McDonald’s CEO Don
Thompson.</span></b> Puzder, a lawyer by training, stars in a new guerilla
marketing campaign from Hardee’s and Carl’s parent, CKE Restaurants. In videos
posted on a website called <a href="http://relaimyourangus.com/">ReclaimYourAngus.com</a>, Puzder addresses McDonald’s
customers who might be upset by the Golden Arches’ elimination of
third-of-a-pound Angus burgers from the menu. Hardee’s and Carl’s Jr. haven’t
deprived Angus fans of their burgers, Puzder explains. For a limited time, the
chains will be selling their premium sandwiches at the same price that
McDonald’s formerly charged. </div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-86349956348106692082013-05-31T11:32:00.000-04:002013-05-31T11:32:52.120-04:00Meanwhile, in other weirdness...
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<br />
<div class="MsoNormal">
Did the industry sneak off to Colorado or Washington for a
few now-legal bong hits? How else could the business have brainstormed
jaw-droppers like these? </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Whoppers you can eat
hands-free:</b> The sandwich hasn't changed, but Burger King is encouraging
customers in some foreign markets to try <a href="http://eater.com/archives/2013/05/30/bk-hands-free.php">a new device that holds the Whopper </a>in
front of their mouths so they can take a bite without occupying their hands. If
Bob Dylan ate Whoppers on stage, this is the gizmo he’d use. It’s basically a
variation on his harmonica holder, with the Whopper situated where the mouth
harp would go. It smacks of a colossal put-on. But certainly it’s getting
attention.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Krusty Burgers to
become real<a href="" name="_GoBack"></a>:</b> A cameo on The Simpsons is still the
only current way to guzzle a Duff’s at Moe’s with Barney and Homer, but give it
some time. In the not-too-distant future, you won’t have to become a cartoon
character to banter with Moe, grab a donut from Lard Boy, or lunch on a Krusty
Burger. Orlando’s Universal Studios has announced that it’s <a href="https://media.universalorlando.com/PressRelease/detail.aspx?id=34669&ct=27752">expanding its Simpsons-themed attraction</a> into a veritable Springfield, complete with all the dining options
that any fan of the TV show would know. And, yes, there is buzz that Apu will
have a Kwik-E-Mart on the premises.</div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-8848329574038590652013-05-31T11:11:00.002-04:002013-05-31T11:11:25.787-04:00Tarnished Golden Arches?
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<br />
<div class="MsoNormal">
I’m worried about McDonald’s. The pronouncements and
decisions flowing out of headquarters in recent months have been real
head-scratchers, from the ouster of the ketchup-blooded Jan Fields to the
recent observation from CEO Don Thompson that Europeans control their weight
through walking. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The latter was an addendum to Thompson’s revelation that
he’s lost 20 pounds while still eating McDonald’s food everyday. If see a
connection between those two dots, let me know, because I’m shaky on the
relevance, and certainly the importance.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Then there was Thompson’s bombshell pronouncement that
salads, which currently account for 2 to 3 percent of McDonald’s sales, will
never be a major business driver. Huh? So why all that marketing and advertising
effort in recent years to change the impression that McDonald’s is all about
burgers, fries and shakes? Aren’t better-for-you products a major part of that
effort, and aren’t salads among the key new options?</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
That surprise followed Thompson’s dressing down by a
9-year-old at McDonald’s annual shareholder meeting. The cute little grade-schooler
implored the board to stop advertising to her, generating headlines that made
the chain sound as if it were kicking puppies. Many riffed on the idea that
Thompson was defending Ronald McDonald against a youngster who knew better than
to fall for a shill in clown’s clothing. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
That kerfuffle erupted after management signaled that it might
have to emphasize deals again to hold market share—right around the time it
introduced a new super-premium, highly priced wrap. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Thompson’s predecessor, Jim Skinner, ardently pursued a
turnaround and growth program called the Plan to Win. It’s familiar to just
about everyone within the chain, probably because it worked so well. Indeed,
it’s the sort of credo that should be studied in business schools. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Maybe it should be studied a little more in McDonald’s
headquarters. Perhaps every day.</div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-42175287377253596582013-05-21T17:43:00.001-04:002013-05-21T17:43:42.775-04:00Untold stories from the NRA show
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Zipping around the industry’s annual Woodstock, you may have
missed a few developments that added color to this year’s gathering. While feeling
is returning to your feet, here’s your chance to catch some of the unsung
moments from the National Restaurant Association’s annual convention:</div>
<div class="MsoNormal">
--One of the shuttle buses that haul attendees to McCormick
Place got lost en route, according to an eyewitness account from an impeccable
source. The driver drove around and around until he found McCormick, then got
lost again in the subterranean labyrinth where the buses unload, then hit the
streets again. The passengers finally demanded that the driver let them out so they
could walk the rest of the way.</div>
<div class="MsoNormal">
--This might’ve been the Year of the App—not because of what
was hawked on the show floor, but as a result of the new technology attendees
used to navigate Chicago and show-related parties. Show-goers (including this
intrepid blogger) used the new Hailo Taxi app as an alternate way of snagging a
cab.<span style="mso-spacerun: yes;"> </span>Sadly, a shortage of cabs is a
shortage of cabs, whether you’re whistling or punching a button on your smart
phone. Attendees of Groupon’s party at The Aviary were encouraged to download a
virtual-ticket app to get in, and attendees of Ecolab’s posh event were each
provided with a smart-phone-like device to bid in a silent auction benefitting
ProStart. Attendees keyed in an item’s number to learn the high bid at any point.
They could enter a higher offer via the device, then learn if (or when) they
were out-bid.</div>
<div class="MsoNormal">
--The Council of Hotel and Restaurant Trainers (CHART) is
working with Technomic to benchmark industry training practices. National
Restaurant Association officials say Technomic is also assisting that
association in spotting new opportunities for “study groups,” the small gatherings
of executives with similar business interests or responsibilities (i.e., the
Marketing Executives Group, the Fast-Casual Council, the Pizzeria Industry
Council, etc.) One possibility mentioned: A group for officials of Asian
chains.</div>
<div class="MsoNormal">
--The show’s big draws, as reported to us: Any session on
the new healthcare law; Howard Schultz’s keynote presentation; Anthony
Bourdain; and, in a further continuation of a trend that has been building for
years, the smaller booths that showcased American regional ingredients and
organic choices. </div>
<div class="MsoNormal">
--Best quip heard at the show: The executive of a sandwich
chain was asked how his concept’s signature product differed from the bargain-priced
sandwich of the segment’s leader. There was a long pause. “Well,” he said, “we
use meat.”</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-87225383899817565802013-05-20T10:42:00.003-04:002013-05-20T10:42:45.786-04:00Big 'huh?' from the NRA show: 'We in the right place?'
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Regular attendees of the National Restaurant Association’s
annual convention could be forgiven for wondering if they’d descended on Chicago’s
McCormick Place during the wrong week this year.<span style="mso-spacerun: yes;"> </span>How else to explain all the talk about products
and management strategies that would’ve been dismissed a year or two ago as decidedly
on the fringe?</div>
<span style="font-family: "Times New Roman"; font-size: 16.0pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "MS 明朝"; mso-fareast-language: JA; mso-fareast-theme-font: minor-fareast;">Consider, for instance, how conversations with chain
executives on the show floor routinely brought a mention of their new hot
sellers: Kale and quinoa.</span><br />
<br />
<i><span style="font-family: "Times New Roman"; font-size: 16.0pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "MS 明朝"; mso-fareast-language: JA; mso-fareast-theme-font: minor-fareast;">To keep reading, <a href="http://www.monkeydish.com/blogs/big-huh-nra-show-are-we-right-place">click here</a>.</span></i>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-8110811292807660992013-05-18T00:01:00.002-04:002013-05-18T08:52:10.364-04:00The extreme is now the mainstream, if NRA conversations are a compass<style>
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Let us share the experiences of accommodating what were once health
extremists, because my world is fast becoming yours.<br />
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If you think seitan is a province of Cambodia, you’re
probably oblivious to the pain that has been mine for 27 blissful years. Being
married to a vegetarian who wouldn’t consider anything remotely indulgent,
never mind animal-sourced, I’ve had to navigate menus that would keep a permanent
thought bubble of bacon above your head. In reality, it means eating
replacements like bean burgers, tempeh, tofu-based meat replacements, and the
filet mignon of analogs, seitan. Olive oil is viewed as the equivalent of cake
frosting.<br />
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Based on the conversations I’ve had during minus-one days to
the National Restaurant Association’s annual convention, you should start
thinking about how you can offer the same sort of menu options. Twenty-four
hours before the official opening of the show, I’ve spent an inordinate amount
of networking time in discussions of meatless, salt-less, dairy-less, an utterly unprocessed (if not uncooked) options for mainstream menu items.<br />
<br />
Even when the conversation didn't stray into those zones, the talk repeatedly gravitated to concepts with a definite health halo, if not a foot in the health camp--chains like Zoes Kitchen, Veggie Grill,
LYFE Kitchen, and that non-restaurant that specializes in restaurant-caliber
fare, Whole Foods.<br />
<br />
Among the new hot sellers that chain executives said they're seeing: quinoa bowls, or salads and sides where sweet potatoes are key (and we're not talking fries here.)<br />
</div>
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I’ve met at least two suppliers who are attending the show
because they sell what were once fringe-products, but are on the cusp of going
mainstream. Think soy milk, natural soup bases, or alternative beverages to sip with your tempeh stir fry.<br />
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My conversation mates weren't people in ponytails and Birkenstocks;
these were mainstream restaurateurs who see their customers veering considerably
to the left, or foodservice vets who learned the business pitching mainstream
products abounding in sugar, salt or fat. Now they’re betting a career on opportunity
in the health market.<br />
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What were once fringe preferences for restaurants have by
all accounts gone mainstream, judging from the conversations of the last two
days. Tomorrow I’ll test that theory by seeing what health options I see on the
show floor.<br />
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Stay tuned. Stop by as you munch your seitan burger with
organic greens.</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-18876165550527762352013-05-13T10:40:00.000-04:002013-05-13T10:40:10.843-04:00Something fishy in chains' thinking
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According to the samplers hanging in your finer Mongolian
yurts, “If the herring stings when slapped across your face, don’t suggest a flounder.”
Actually, I made that up, but you can almost see the scale marks on the faces
of fast-food executives these days, so there’s some license to be taken.
Besides, all of them should be dispatched to Mongolia if they go ahead with
what they’re considering.</div>
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Their mackerel moments are the result of setbacks in the
efforts of virtually every large quick-service chain to upgrade the quality of
its food and operations. Consider the big product introductions of recent
months: A high-quality wrap for McDonald’s, a pulled-pork sandwich for Burger
King, a big-brand taco and chef-inspired entrees for Taco Bell. Wendy’s whole comeback
program is built on the promise of delivering food that’s at least a notch
above its competition. The goal is to entice consumers to higher-ticket items,
instead of having to provide change when the patron hands them two bucks for a
meal.</div>
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But now the bunch are wringing their hands and wondering if
they should revert to the Great Recession-era prices that desperation forced on
them in 2008. Taco Bell is widely reported to be working on a new dollar menu,
and Wendy’s is talking to investors about right pricing, which is nothing more
than discounting with a slight asterisk.</div>
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Reverting to those strategies is a bit fishy. We know now
that the two-percentage-point increase in employees’ FICA taxes was a
significant cut in consumers’ spending power. The psychological chill likely
did more damage. And the uncertainty that prevailed as the government dickered
over a budget was a veritable arctic blast. </div>
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We shouldn’t forget those factors and abandon a positive
strategy for the sake of what should at best be a break-glass-in- emergency
tactic.<span style="mso-spacerun: yes;"> </span>Reverting to deep discounting is
only going to delay the industry’s recovery. </div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-66292806524856971612013-05-09T17:10:00.002-04:002013-05-09T17:23:38.295-04:00Investors can be real bad-asses<!--[if gte mso 9]><xml>
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Back in our schoolyard days, the most effective bully was
the early bloomer who used his physical advantages for ill. In the arenas where
most of us play today, a head-thumper’s might is more likely a function of
money than muscle. Just look at what’s happening at Tim Hortons, a concept that
could teach McDonald’s a thing or two about market dominance, at least in
Timmy’s homeland of Canada.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
The company just announced that it will change CEOs for the
second time in roughly two years on July 1. Ostensibly the shift has been
coming since then-CEO Don Schroeder left headquarters in May 2011. Former CEO
Paul House dusted off his old business cards to fill the vacancy on an interim
basis until a permanent replacement was named this summer. <o:p></o:p></div>
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<br /></div>
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That timeframe has been accelerated; the board said
yesterday that it found the ideal hire in Marc Caira, previously president of
Nestle Professional, the company’s foodservice-supply operation. <o:p></o:p></div>
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<br /></div>
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It’s merely a coincidence that the earlier-than-expected
change came amid pressure from a major shareholder in Hortons, Highfields
Capital Management, to change the company’s direction. Highfields, which owns
about 4 percent of Hortons’ shares, wants the doughnut powerhouse to focus on
its Canadian operations, to the point of abandoning its expansion into the U.S.
<o:p></o:p></div>
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<br /></div>
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And who’s been plotting that charge into the States? Paul
House. <o:p></o:p><br />
<br />
Did I mention that he'll leave Hortons in early July, or roughly in the timeframe when the company was expecting to name a permanent new CEO?</div>
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<br /></div>
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Highfields is the latest example of an investor
second-guessing how a company should be run. House has spent 21 years in the C
suite of Hortons, and also served as a director of the chain’s former parent,
Wendy’s.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
But Highfields is convinced it knows better. And it looks as
if it’s getting its way.<o:p></o:p></div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-52383879561107313952013-05-06T15:47:00.002-04:002013-05-06T15:47:21.152-04:00Concepts generating some New Age buzz<a href="http://www.monkeydish.com/blogs/concepts-generating-some-new-age-buzz">
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A hot new concept typically fosters considerable talk among
restaurateurs scouting for the next big thing—i.e., virtually anyone in the
business. But internet communications promise to change the dynamic, just as
social media and other forms of digital connection have altered the speed and
tone of the consumer grapevine. You no longer need to keep an ear to the ground
at industry events; a mouse in hand seems to work much better.</div>
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So what concepts are getting the hot word of mouse today?</div>
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Here are a few that we’ve seen snagging some attention
online: PDQ, PizzaRev, Red Door, Maison Keyser. Here are a few points about
each. </div>
<div class="MsoNormal">
<b>PDQ:</b> One of a growing number of acronym-named concepts (see
our story on LYFE Kichen), this one says its birth certificate actually reads People
Dedicated to Quality. It’s another fast-casual upstart that’s trying to
replicate within its sector what Chipotle did in Tex-Mex. PDQ’s specialty is
the chicken tender, offered with dipping sauces for the purist, or as a
sandwich or salad topping. Hand-cut fries and milkshakes are also pillars of
the menu, and there are a few off-beat signatures, like blueberry coleslaw.</div>
<div class="MsoNormal">
Although PDQ has been around for some 19 months, it’s been
snagging Kim Kardashian-league attention in recent weeks because of the company
it’s lately been keeping. The oft-praying Tim Tebow is the latest boldfaced
name to be connected with the chain, which could field a helluva touch football
team. Former QB Vinny Testaverde is also reported to be a backer. Tampa Bay
star Derrick Brooks is also among the celebs who are putting up money.</div>
<div class="MsoNormal">
The roster also includes several All-Stars from the chain
restaurant world, including Outback co-founders Bob Basham and Tim Gannon. Like
the early Outback, PDQ is growing through joint ventures rather than
franchising.</div>
<a href="http://www.monkeydish.com/blogs/concepts-generating-some-new-age-buzz">Keep reading...</a>Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com1tag:blogger.com,1999:blog-7882680319427447111.post-24284025682876954292013-04-24T02:08:00.003-04:002013-04-24T02:08:26.522-04:00The long shadow cast by Boston
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With the conference convening a week after the Boston
terrorist attacks, attendees and speakers touched on the crisis with obvious
emotion during casual talk and formal presentations. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Marketing consultant Linda Duke, for instance, used the
recent events as a touchstone in her presentation on crisis management. She
explained that she’d studied the situation to bring the audience “some tips
from the front line.”<o:p></o:p></div>
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<br /></div>
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Restaurateurs worry about crises like food-borne illnesses,
robberies or shootings, but now “unfortunately we have to add terrorism to the
list,” she said. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
For instance, in media footage of the scene on Boylston
Street where the bombs detonated, a Firehouse Subs sign could be spied on the
ground. A franchised store near the finish line evidently suffered damage,
though the unit was spared the glare of media attention in the non-stop
coverage that followed the blasts.<o:p></o:p></div>
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<br /></div>
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One of the questions posed to President George W. Bush also
referred to the bombings.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
In a roundtable discussion convened by the International
Franchise Association to address immigration reform, chain and association
executives acknowledged that the bombings could figure into negotiations on a
bill pending in Congress. The association favors the proposal, but would like
to raise the caps on how many job candidates would be allowed into the nation per
year.<o:p></o:p></div>
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<br /></div>
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“It would be a real shame if a single event like that would
ruin the wishes and dreams of so many people,” commented Don Fox, the CEO of
Firehouse Subs.<o:p></o:p></div>
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-17968080498416952862013-04-23T15:07:00.002-04:002013-04-23T15:07:56.445-04:00What you didn't know was happening at RLC<div class="MsoNormal">
While 1,700 restaurant leaders quietly listened to this
morning’s line-up of speakers at the Restaurant Leadership Conference, we at
the press table were frantic. A tweet from AP delivered the breaking news that two
bombs had detonated at the White House, injuring President Obama.<br />
</div>
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You probably know by now that the report was bogus; someone
had hacked the AP’s twitter account and pushed out the fake attention-getter.
The clarification came quickly, but not fast enough for those of us in the
back. Could this development be true? If so, we owed everyone in attendance a
heads-up on news of that import. So we scrambled to see what we could find,
scouring news sites and looking at other media’s tweets.<br />
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While we were jumping around the internet, AP regained control
of its Twitter account and gave the stand-down alert. But by that time, tweets
were starting to appear about the Wall Street crash that was triggered by the
fake report. Was that development true?<br />
</div>
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Fortunately, the media were abuzz over both developments by
then. But it was a drama that most attendees of RLC missed entirely. Not us at
the press table in the back. </div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-13462980255534133992013-04-22T22:57:00.002-04:002013-04-22T22:57:18.695-04:00Small plates from Day One of the Restaurant Leadership Conference
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It’s a little-known rule of physics: Put a group of
restaurant leaders in a room and you’ll get an unvarnished picture of the
business. Pull almost 1,800 of them together, as we did at the Restaurant
Leadership Conference, and you quickly learn what they see as the opportunities
and challenges, the hype and the real successes. </div>
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--When attendees talk about the areas where they hope to get
an education, the topics constantly mentioned are catering and gluten-free menu
options. </div>
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--Discussions about the gluten-free phenomenon sometimes
take a surprising turn: Do you crow about your wheat-free choices, or do you
make that a given across your menu? For instance, if you’re a sandwich chain,
do you switch all your breads to gluten-free variations? Does that make a more
powerful statement about your commitment to health? </div>
<div class="MsoNormal">
(To read the rest of this entry and sample more small plates from the RLC, <a href="http://www.monkeydish.com/blogs/small-plates-first-day-restaurant-leadership-conference">click here</a>.) </div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com0tag:blogger.com,1999:blog-7882680319427447111.post-46701318430810821392013-04-22T12:03:00.002-04:002013-04-22T12:03:32.624-04:00Wolves and sheep's clothing
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Sometimes a scorecard is the absolute worst way to know the
players. Take, for instance, the new restaurant association that announced its
formation last week in Washington, D.C. </div>
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It’s not a coincidence the organization was trumpeted into
existence a matter of blocks from where the National Restaurant Association was
holding its annual restaurateurs’ conference on government affairs. The new
group, RAISE, is positioning itself as the alternative to the NRA, the
industry’s most influential and active lobbying force. In RAISE’s birth
announcement, the alliance professes to speak for “small sustainable restaurant
owners,” a contrast in its eyes to what it characterizes as the large chains
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What could be wrong with that? Ditto for the mission
embodied in its name: Restaurants Advancing Industry Standards in Employment.
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pre-emptive, progressive and voluntary reform of the practices that rile one of
the private sector’s largest employers?</div>
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But check out who formed RAISE. It’s the latest initiative
of the Restaurant Opportunities Center, a New York-based group that stresses
that it’s not a union, even though it certainly looks and sounds like one.
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Instead of focusing on organizating, as old-line labor
groups do, ROC conducts what it attests is unbiased research about the plight
of restaurant employees. Seldom are the findings a bouquet of roses for the
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Now, with the launch of RAISE, ROC is claiming to represent
a new breed of restaurant owners and operators as well. That’s what it’s saying
on its scorecard. And it stresses that it already has 100 restaurants enrolled as
members. </div>
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But whose interests is a non-union union really going to
serve?</div>
Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com1tag:blogger.com,1999:blog-7882680319427447111.post-13939662873942614542013-04-10T15:57:00.001-04:002013-04-10T15:57:56.044-04:00Why restaurants should be afraid. Very afraid.
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At a staff meeting last summer, a Restaurant Business
colleague suggested the editorial staff be institutionalized for running <a href="http://www.monkeydish.com/menu-innovation/articles/c-store-vs-qsr">astory about the threat posed to restaurants by c-stores</a>. “Yeah, I’m really going to take my wife to a
c-store instead of a restaurant,” he sniffed.<o:p></o:p></div>
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He’s since been eviscerated and pickled, after being forced
to watch a “Love Boat” marathon until he cracked. But, sitting here at the
National Association of Convenience Stores’ annual State of the Industry
Summit, I’m wondering if we can kick drag him out for a few more kicks and
insults.</div>
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<o:p></o:p></div>
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There’s no doubt that c-stores are looking for a profit
generator to compensate for the declining contribution from cigarette sales. Foods that consumers might’ve otherwise
purchased from a restaurant are looking pretty good as that substitute.<o:p></o:p></div>
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Already, foodservice is the second highest contributor to a
c-store’s gross profits, at 27.5%, surpassed only by tobacco. But it’s growth vector for ready-to-eat foods that
should have restaurateurs visiting the beer and wine sections of their local
c-stores. Foodservice sales on a per-c-store basis jumped 8.7% in 2012, to
15.8% of total intake, or just over $24,000 per week. <o:p></o:p></div>
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Glenn Plumby, vice president of operations for the Speedway
c-store chain, put that growth in perspective by showing the 2012 same-store sales
gains for the major quick-service restaurant chains. “No one in that category
is up as much as we are,” he noted.<o:p></o:p></div>
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I, as presumably the lone representative of restaurants at
the conference, tried to choke back the sobs when Plumby sketched out the
near-term opportunity for retailers. If you divided the c-store business into
10 performance brackets, from leaders to laggards, the discrepancy in
foodservice sales is a slap to the forehead. C-stores in the top decile take in
an average of $46,142 in foodservice sales per month. That’s about four times
the sales of the players at the bottom of the ranking.<o:p></o:p></div>
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Plumby’s message: Anyone outside the industry’s leadership
has a great opportunity to raise their foodservice sales—presumably by just
doing a better job.<o:p></o:p></div>
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If those players can convince cigarette or lottery-ticket
buyers to pop for a hot dog or taco, “we have significant growth,” said Plumby.
“We need to keep growing foodservice at a fast pace.”<o:p></o:p></div>
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That message was echoed by Kevin Smartt, CEO of Kwik Chek
Food Stores: “If you sell pizza, benchmark against Pizza Hut. If you sell a
burger, benchmark yourself against the best burger franchise out there. That’s
how we’re going to raise foodservice revenues.”<o:p></o:p></div>
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Other State of the Industry tidbits that should interest
restaurateurs:<o:p></o:p></div>
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--The heightened competition from c-stores may spread to
supermarkets and other retailers you might not associate with ready-to-eat
food. Todd Hale, SVP of consumer and shopper insights for Nielsen, warned that
mainstream brick-and-mortar stores are going to lose a significantly share of
sales to Amazon. To replace that lost business, they’ll likely turn to
foodservice, Hale predicted.<o:p></o:p></div>
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--Quick-service restaurants grudgingly acknowledge c-stores’
leadership in selling cups of coffee. But NACS’ data showed that frozen and
chilled fountain drinks are where c-stores are seeing their growth. You have to
wonder, are QSRs being left behind in that emerging market?<o:p></o:p></div>
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--Sales of “alternative beverages” are galloping. Proceeds
jumped nearly 30% in the last three years, according to the NACS figures.<o:p></o:p></div>
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--The turnover rate for non-managerial personnel in the
fourth quartile of c-stores is 81.7%. Most QSR chains can only dream of having
a turnover that low for hourly employees.<o:p></o:p></div>
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--<o:p></o:p></div>
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<!--EndFragment-->
<!--EndFragment-->Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com2tag:blogger.com,1999:blog-7882680319427447111.post-19627306752458708062013-04-08T17:13:00.002-04:002013-04-08T17:16:56.832-04:00A bone to pick with KFC's newestGather ‘round, youngsters, and learn about the long-ago day when restaurant chains would all but hold a parade and declare a national holiday when they added a menu item. There was none of this special-for-a-weekend stuff. The unveiling of an item like Chicken McNuggets or the McDLT was a blockbuster event. Ditto for the extension into a new style of pizza, or the addition of a new variety of taco. <br /><br />
Imagine the hoopla that was mustered when a big brand changed its core product. No wonder some of the most-talked about introductions of the last two decades came from a player that had to change its name to accommodate a major rollout. KFC (nee Kentucky Fried Chicken) clearly ruled the roost on shoot-the-moon changes.<br /><br />
We forget today about products like the Colonel’s Rotisserie Gold (a 1990s non-fried chicken), Oven Roasted Twister (more recent non-fried chicken), Tender Roast (still more non-fried), Kentucky Grilled Chicken (ditto), Hot Wings (freezer-to-fryer wings that showed blood marks because of being frozen), Skinless, and Chicken Little chicken sliders, to name just a few.<br /><br />
Now comes considerable hoopla for yet another alternative to the chain’s mainstay product: Boneless fried chicken, or what sounds like supersized chicken fingers or nuggets. This from a chain that prompted the industry to coin a clumsy bit of jargon—bone-in chicken—to label the sector that KFC largely cultivated and long dominated (the fried chicken sector is now dominated, by of all concepts, McDonald’s, courtesy of its various nuggets and bites.)<br /><br />
KFC’s publicity machine is chugging at full bore for the Friday introduction, which, like so many earlier rollouts, is being hailed as a turning point for a chain that’s clearly had its challenges.<br /><br />
Maybe this will be indeed be a game-changer. KFC’s parent, Yum! Brands, has hit gold with recent products for its other restaurant holdings. Consider the new Doritos tacos added at Taco Bell. Or think back to the pasta dishes that Pizza Hut added a few years ago. Management thought the pasta line would eventually generate an additional billion dollars in sales, and I for one believed them. The promised value and convenience seemed perfectly attuned to the times.<br /><br />
But management soon spoke with far more reserve about the pastas, just as KFC toned down the bluster about Kentucky Grilled Chicken (which, by the way, was roasted, not grilled. But, hey, that’s marketing.)<br /><br />
Will boneless chicken be the long awaited silver bullet? Maybe. But until time proves if market evaluations were on the money, I’d counsel the brand not to think of changing its name to KBC. Peter Romeohttp://www.blogger.com/profile/07180004898051387237noreply@blogger.com1