Reuters reported this morning that the second bidder for CKE Restaurants, the parent of Carl's Jr. and Hardee's, is Apollo Managemet, a private equity firm with a stake in the Garden Fresh buffet chain. Reuters cited unidentified sources, and noted that Apollo neither confirmed nor denied its involvement.
Apollo has also been a lender to U.S. Foodservice, the restaurant distribution giant, and Kronos, a supplier of foodservice time-management technology.
The amount of the second bid was not disclosed in the Reuters report.
Showing posts with label Hardee's. Show all posts
Showing posts with label Hardee's. Show all posts
Thursday, April 8, 2010
Wednesday, April 7, 2010
Who is that masked bidder?
You have to wonder why the second company to tender a bid for Carl’s Jr. and Hardee’s is hell-bent on masking its identity. Suitor No. 1, after all, is all but hiring skywriters to tout its interest: “Thomas H. Lee wants to do burgers!”
So why the secrecy for would-be buyer No. 2? After thinking about it at length today, I’m convinced there are three possible answers:
1) The bidder is actually Bruce Wayne, who's thinking of the possible movie tie-ins. It’s always dicey when you live over a secret cave and have an alternate crime-fighting ego in the age of YouTube. Besides, Alfred’s not getting any younger, and he could spill the beans about the capes and all those nifty toys if reporters come a-calling.
2) The would-be buyer doesn’t want to drive up the price of CKE Restaurants, the chains' parent, by sparking a bidding war. That, in turn, could be the case if the acquisition is a strategic one. If the addition of those brands makes terrific sense for the suitor, the market might bet the second party would be willing to sweeten its offer.
So what companies fit that fit that bill?
How about Yum Brands? Burgers are a gaping hole in its franchise portfolio, and both Carl’s and Hardee’s have geographic room to grow.
Or how about an East Coast brand that could suddenly have a big presence in the West and Central West? That description could apply to a few brands, including Chick-fil-A. Then again, that’s not the type of operation to do something rash. But it would have the wherewithal.
3) This cloaked suitor doesn’t want to alarm its current employees, or possibly even its investors. It’d rather complete the deal before it needlessly worries key constituencies and creates a nightmare for itself.
But that sounds unlikely. So I’m putting my money on the likelihood that the challenger is a restaurant company who sees the two regional burger chains as good complements to its current holdings.
Then again, I had Kansas winning the NCAA championship.
So why the secrecy for would-be buyer No. 2? After thinking about it at length today, I’m convinced there are three possible answers:
1) The bidder is actually Bruce Wayne, who's thinking of the possible movie tie-ins. It’s always dicey when you live over a secret cave and have an alternate crime-fighting ego in the age of YouTube. Besides, Alfred’s not getting any younger, and he could spill the beans about the capes and all those nifty toys if reporters come a-calling.
2) The would-be buyer doesn’t want to drive up the price of CKE Restaurants, the chains' parent, by sparking a bidding war. That, in turn, could be the case if the acquisition is a strategic one. If the addition of those brands makes terrific sense for the suitor, the market might bet the second party would be willing to sweeten its offer.
So what companies fit that fit that bill?
How about Yum Brands? Burgers are a gaping hole in its franchise portfolio, and both Carl’s and Hardee’s have geographic room to grow.
Or how about an East Coast brand that could suddenly have a big presence in the West and Central West? That description could apply to a few brands, including Chick-fil-A. Then again, that’s not the type of operation to do something rash. But it would have the wherewithal.
3) This cloaked suitor doesn’t want to alarm its current employees, or possibly even its investors. It’d rather complete the deal before it needlessly worries key constituencies and creates a nightmare for itself.
But that sounds unlikely. So I’m putting my money on the likelihood that the challenger is a restaurant company who sees the two regional burger chains as good complements to its current holdings.
Then again, I had Kansas winning the NCAA championship.
Friday, March 12, 2010
Who should be buying Carl's Jr.
I’m sure the Vegas odds-makers are already taking action on who'll be the next owner of Carl’s Jr. and Hardee’s, the two main brands in the portfolio of CKE Restaurants. Thomas H. Lee is the favorite, with a deal already on the table to buy it for about $928 million, including debt. Then came word yesterday that Nelson Peltz, the bwana who deftly bagged Wendy’s in 2008, was giving CKE’s slightly bald radials a kick.
They may be the most likely buyers. I keep thinking about who might be the most appropriate buyer, from the standpoint of all parties concerned.It makes me wonder if the big casual-dining companies have the Poppers to reconsider their longstanding pledge never to veer out of that market.
It’s almost a reflex with concerns like Darden, Brinker and OSI (the parents of Red Lobster, Chili’s and Outback Steakhouse, respectively). Ask what new businesses might be a worthwhile acquisition or start-up and they’ll invariably conclude with, “…and of course it’d have to be something in casual dining, since that's where we want to stay.”
Meanwhile, they’re having their turnips mashed by quick-service and fast-casual concepts.
They should consider the bold move of buying a quick-service brand and supercharging it with their casual know-how to create the ultimate fast-casual player—a contender genetically engineered to provide cloth-napkin-caliber service and food, with the value, speed and less-processed foods that have established concepts like Panera and Chipotle as the brands of choice among younger consumers. It’d be the veritable Mike Tyson of the sector.
Carl’s would be the perfect subject for the experiment. It’s been trash-talking for years that it offers a burger comparable to what patrons would find in a casual restaurant, for less than two-thirds of the price. To launch the Six Dollar Burger (it actually sells for under $4), the chain even set up a fake restaurant where patrons were charged $6 for the sandwich. Patrons paid without complaint.
Sure, the acquisition would put those casual-dining giants squarely in franchising, a realm where they’ve at most dabbled before, preferring to grow through corporate development and joint ventures. But their current business models aren’t exactly the envy of the business world. Becoming full-fledged franchisors would really open the valve on cash flow.
Meanwhile, the Carl’s and Hardee’s systems would greatly benefit from the training, research and awesome support services provided by the likes of Darden and Brinker.
It’s a deal casual-dining hunter and quick-service should pursue, especially when you consider that CKE might change hands for just over $1 billion. It’s a buyer’s market, to be sure.
They may be the most likely buyers. I keep thinking about who might be the most appropriate buyer, from the standpoint of all parties concerned.It makes me wonder if the big casual-dining companies have the Poppers to reconsider their longstanding pledge never to veer out of that market.
It’s almost a reflex with concerns like Darden, Brinker and OSI (the parents of Red Lobster, Chili’s and Outback Steakhouse, respectively). Ask what new businesses might be a worthwhile acquisition or start-up and they’ll invariably conclude with, “…and of course it’d have to be something in casual dining, since that's where we want to stay.”
Meanwhile, they’re having their turnips mashed by quick-service and fast-casual concepts.
They should consider the bold move of buying a quick-service brand and supercharging it with their casual know-how to create the ultimate fast-casual player—a contender genetically engineered to provide cloth-napkin-caliber service and food, with the value, speed and less-processed foods that have established concepts like Panera and Chipotle as the brands of choice among younger consumers. It’d be the veritable Mike Tyson of the sector.
Carl’s would be the perfect subject for the experiment. It’s been trash-talking for years that it offers a burger comparable to what patrons would find in a casual restaurant, for less than two-thirds of the price. To launch the Six Dollar Burger (it actually sells for under $4), the chain even set up a fake restaurant where patrons were charged $6 for the sandwich. Patrons paid without complaint.
Sure, the acquisition would put those casual-dining giants squarely in franchising, a realm where they’ve at most dabbled before, preferring to grow through corporate development and joint ventures. But their current business models aren’t exactly the envy of the business world. Becoming full-fledged franchisors would really open the valve on cash flow.
Meanwhile, the Carl’s and Hardee’s systems would greatly benefit from the training, research and awesome support services provided by the likes of Darden and Brinker.
It’s a deal casual-dining hunter and quick-service should pursue, especially when you consider that CKE might change hands for just over $1 billion. It’s a buyer’s market, to be sure.
Friday, March 5, 2010
Talk about your hot seats
They’re dead men walking—three longtime CEOs, all with unusual backgrounds for a restaurant official, all having served for considerable stretches in the corner office.
Each still has his job for the time being, with no indication they’re backing off the charge of captaining chains through the Great Recession. Yet for Dennis Mullen of Red Robin, Nelson Marchioli of Denny’s, and Andrew Puzder of Carl’s Jr. and Hardee’s, it’s just a matter of time until they’re sitting with an HR representative, going over their exit packages and stock options.
Each is the victim of a peculiar time warp. Two pronounced trends of the pre-Recession industry have popped back up like spring crocuses to undermine their tenure. Private equity firms are back on the prowl for restaurant bargains, and, suddenly, activist investors are barking orders again to the management of publicly owned chains, as Mullen and Marchioli can readily attest.
In Mullen’s case, the dissatisfied shareholders already have goaded his company to form the committee that will select the next CEO. Meanwhile, the company is publicly saying that it expects Mullen to continue serving as chief of the casual-dining chain until his contract expires in December—of 2012.
It’s like the warden coming to size up a condemned man’s bunk while the gallows is still being built, then asking if the guy can put in a few hours on the license-plate line the morning of his hanging.
But that’s hardly the only weirdness to the situations. On Feb. 26, CKE Restaurants announced that it’d agreed to be acquired by Thomas H. Lee Partners, the private-equity company that also owns a big stake in Dunkin’ Donuts. The announcement was immediately followed by speculation that the buyer would give Puzder the heave-ho because of the weak recent performance of CKE, particularly its Carl’s chain.
On the very same day, Puzder was named the 2010 winner of the Silver Plate Award for the quick-service sector. One of the industry’s most celebrated honor, the Silver Plate recognizes the executive who’s done the most outstanding job within his or her respective market segment. In short, Puzder was being named the best in his field on the same day the internet buzzed with certainty that he was about to feel a silvery axe.
Meanwhile, as one of nine Silver Plate winners, Puzder could still be named the industry’s operator of the year, the winner of the Gold Plate Award, in May. The voting for that honor was conducted earlier in February. So he could get a pink slip and a Gold Plate almost simultaneously.
Interestingly, all three of the marked executives hail from decidedly non-traditional backgrounds for restaurant chain leaders. Puzder, for instance, was a lawyer who came to the business after the holding company that owned Carl’s Jr. went out and added Hardee’s to its portfolio. Involvement on the legal side led to broader executive responsibilities and ultimately a top-level executive post.
Mullen started his career with PricewaterhouseCoopers, one of the nation’s largest accounting firms. He also logged time with Boston Chicken, serving as its CFO, as well as the brands that now constitute Eateries Inc. He’s been CEO of Red Robin for four-and-a-half years.
Marchioli is the only restaurant CEO to my knowledge who climbed to that post through purchasing and quality assurance, the nitty-gritty operations that are critical to a company’s viability, but seldom get any appreciation from outsiders. He was a bug hunter.
He may find himself grappling with a different sort of nuisance, at least from his standpoint. Two investment groups have demanded that they be given three seats on Denny’s board. In making that demand, the stakeholders provided a list of complaints about the company’s management, including its breakfast giveaway.
That program has been one of Marchioli’s most publicized undertakings. Some might say it’s one of the things he’ll be remembered for.
Each still has his job for the time being, with no indication they’re backing off the charge of captaining chains through the Great Recession. Yet for Dennis Mullen of Red Robin, Nelson Marchioli of Denny’s, and Andrew Puzder of Carl’s Jr. and Hardee’s, it’s just a matter of time until they’re sitting with an HR representative, going over their exit packages and stock options.
Each is the victim of a peculiar time warp. Two pronounced trends of the pre-Recession industry have popped back up like spring crocuses to undermine their tenure. Private equity firms are back on the prowl for restaurant bargains, and, suddenly, activist investors are barking orders again to the management of publicly owned chains, as Mullen and Marchioli can readily attest.
In Mullen’s case, the dissatisfied shareholders already have goaded his company to form the committee that will select the next CEO. Meanwhile, the company is publicly saying that it expects Mullen to continue serving as chief of the casual-dining chain until his contract expires in December—of 2012.
It’s like the warden coming to size up a condemned man’s bunk while the gallows is still being built, then asking if the guy can put in a few hours on the license-plate line the morning of his hanging.
But that’s hardly the only weirdness to the situations. On Feb. 26, CKE Restaurants announced that it’d agreed to be acquired by Thomas H. Lee Partners, the private-equity company that also owns a big stake in Dunkin’ Donuts. The announcement was immediately followed by speculation that the buyer would give Puzder the heave-ho because of the weak recent performance of CKE, particularly its Carl’s chain.
On the very same day, Puzder was named the 2010 winner of the Silver Plate Award for the quick-service sector. One of the industry’s most celebrated honor, the Silver Plate recognizes the executive who’s done the most outstanding job within his or her respective market segment. In short, Puzder was being named the best in his field on the same day the internet buzzed with certainty that he was about to feel a silvery axe.
Meanwhile, as one of nine Silver Plate winners, Puzder could still be named the industry’s operator of the year, the winner of the Gold Plate Award, in May. The voting for that honor was conducted earlier in February. So he could get a pink slip and a Gold Plate almost simultaneously.
Interestingly, all three of the marked executives hail from decidedly non-traditional backgrounds for restaurant chain leaders. Puzder, for instance, was a lawyer who came to the business after the holding company that owned Carl’s Jr. went out and added Hardee’s to its portfolio. Involvement on the legal side led to broader executive responsibilities and ultimately a top-level executive post.
Mullen started his career with PricewaterhouseCoopers, one of the nation’s largest accounting firms. He also logged time with Boston Chicken, serving as its CFO, as well as the brands that now constitute Eateries Inc. He’s been CEO of Red Robin for four-and-a-half years.
Marchioli is the only restaurant CEO to my knowledge who climbed to that post through purchasing and quality assurance, the nitty-gritty operations that are critical to a company’s viability, but seldom get any appreciation from outsiders. He was a bug hunter.
He may find himself grappling with a different sort of nuisance, at least from his standpoint. Two investment groups have demanded that they be given three seats on Denny’s board. In making that demand, the stakeholders provided a list of complaints about the company’s management, including its breakfast giveaway.
That program has been one of Marchioli’s most publicized undertakings. Some might say it’s one of the things he’ll be remembered for.
Friday, September 18, 2009
Andy Puzder's business geography lesson
The Midwesterner who heads the parent company of Carl’s Jr. and Hardee’s isn’t a fan of the West Coast, particularly Oregon and the concern’s home state of California. But it’s not personal, insists Andy Puzder. It’s business. The fast-food business.
“It depends on what state you are in,” he explained Thursday to financial analysts. Some are just easier than others for a restaurant chain to navigate these days, he explained.
Texas, for instance, is “more business friendly,” said Puzder, without explaining why. Not coincidentally, “we are targeting a large percentage of our growth in Texas,” he noted.
That rev-up in the Lone Star State will lessen the importance of California to the Carl’s Jr. burger chain, which was founded in the southern part of the state and still has the bulk of its units there. Puzder has remarked in the past that the state’s high unemployment, wheezing economy and taxing regulatory environment are a significant burden on Carl’s.
But at least it’s better than Oregon, he remarked. The state “has a higher minimum wage and a similar regulatory structure as California and also has a similar socialist type government,” he said, “so the business there actually can be as bad or worse than California. And I think their unemployment rate is higher.”
Arizona, said Puzder, is also a challenging market, partly because of the drop in tourism and “issues with immigration.”
In general, he said, “illegal immigrants leaving one state for another state will hurt the restaurant business in the state they leave, not because we can't employ them but where do you think those guys eat?”
In contrast to Carl's units in Oregon, stores in Washington State are doing fine, Puzder indicated. And Texas, where Carl’s now has some 25 stores?
“Texas is doing real well,” said Puzder.
“Meaningful geographical diversification in Texas should also improve our brands’ short and long-term prospects,” he noted.
Puzder came to CKE Restaurants, the parent of Carl’s Jr. and Hardee’s, via the latter brand, which is headquartered in St. Louis.
He was brought aboard as an attorney, but showed an aptitude and appreciation for the business.
But now, based outside Anaheim, he’s clearly not yet developed an affinity for its location.
“It depends on what state you are in,” he explained Thursday to financial analysts. Some are just easier than others for a restaurant chain to navigate these days, he explained.
Texas, for instance, is “more business friendly,” said Puzder, without explaining why. Not coincidentally, “we are targeting a large percentage of our growth in Texas,” he noted.
That rev-up in the Lone Star State will lessen the importance of California to the Carl’s Jr. burger chain, which was founded in the southern part of the state and still has the bulk of its units there. Puzder has remarked in the past that the state’s high unemployment, wheezing economy and taxing regulatory environment are a significant burden on Carl’s.
But at least it’s better than Oregon, he remarked. The state “has a higher minimum wage and a similar regulatory structure as California and also has a similar socialist type government,” he said, “so the business there actually can be as bad or worse than California. And I think their unemployment rate is higher.”
Arizona, said Puzder, is also a challenging market, partly because of the drop in tourism and “issues with immigration.”
In general, he said, “illegal immigrants leaving one state for another state will hurt the restaurant business in the state they leave, not because we can't employ them but where do you think those guys eat?”
In contrast to Carl's units in Oregon, stores in Washington State are doing fine, Puzder indicated. And Texas, where Carl’s now has some 25 stores?
“Texas is doing real well,” said Puzder.
“Meaningful geographical diversification in Texas should also improve our brands’ short and long-term prospects,” he noted.
Puzder came to CKE Restaurants, the parent of Carl’s Jr. and Hardee’s, via the latter brand, which is headquartered in St. Louis.
He was brought aboard as an attorney, but showed an aptitude and appreciation for the business.
But now, based outside Anaheim, he’s clearly not yet developed an affinity for its location.
Wednesday, August 5, 2009
Don't bogart that financial statement
This week's earnings reports are giving the restaurant industry a new riff for its all-night blues jam. And, man, it's a killer. If the business could find enough green shoots, its best shot at solace might be to smoke 'em.
Consider, for instance, the meltdown at the high end of the casual market. The comp sales figure provide the slide work on this one: Morton's, down 26.1%; Ruth's Chris, down 23%; McCormick & Schmick's, down 17.3%; Benihana, down 13.1%. Keep in mind that several of those big-ticket players have already armed themselves with steep discounts relative to their usual prices. There's just not enough expense-account and top-ticket tourism business to avert a sales plummet. Ruth's Chris, for instance, said a continuation of its comps trend would cost each store about $1 million a year in sales.
But that's casual dining, and the top drawer at that. Surely it's a different story for fast-food.
Sure enough, comps ebbed only a little more than a percentage point for company-run Jack in the Box restaurants, and the damage wasn't much worse for the burger concept's little sister of a brand, Qdoba.
But in analyzing the factors for the benefit of investors, Jack in the Box CEO Linda Lang acknowledged that breakfast, one of the areas of growth for the whole sector, had been weak.
"We also saw some fall-off in sales [of] side items, carbonated beverages, and shakes," added Lang. Throw coffee in there, and you have the key profit drivers of fast-food.
Jack's solution: Discount deeper. The chain recently added a head-turner called the Big Deal, a cheeseburger, taco, fries and a drink, for $2.99. And, says Lang, "We currently have additional value-priced product or promotions in test elsewhere in our system." She described them as "margin neutral or margin friendly," without revealing specifics.
BurgerBusiness, Scott Hume's site devoted to all things burgers, noted in a recent posting that $2.99 is the new $5, the rockbottom threshold where everyone wanted to be earlier this year. As he pointed out, White Castle and Sonic are already offering meals at that price level.
Even Hardee's, a proponent of heft, is dabbling with bargain-priced snacks, vis-a-vis its new biscuit holes.
Product giveaways have become a routine way for chains to flycast for more customers. But if an everyday meal costs a mere $2.99, will that hook stay as irresistible? Or might "cheap" become irreversibly associated in the public's mind with "quick-service"?
I don't know, but I bet we're going to find out.
Consider, for instance, the meltdown at the high end of the casual market. The comp sales figure provide the slide work on this one: Morton's, down 26.1%; Ruth's Chris, down 23%; McCormick & Schmick's, down 17.3%; Benihana, down 13.1%. Keep in mind that several of those big-ticket players have already armed themselves with steep discounts relative to their usual prices. There's just not enough expense-account and top-ticket tourism business to avert a sales plummet. Ruth's Chris, for instance, said a continuation of its comps trend would cost each store about $1 million a year in sales.
But that's casual dining, and the top drawer at that. Surely it's a different story for fast-food.
Sure enough, comps ebbed only a little more than a percentage point for company-run Jack in the Box restaurants, and the damage wasn't much worse for the burger concept's little sister of a brand, Qdoba.
But in analyzing the factors for the benefit of investors, Jack in the Box CEO Linda Lang acknowledged that breakfast, one of the areas of growth for the whole sector, had been weak.
"We also saw some fall-off in sales [of] side items, carbonated beverages, and shakes," added Lang. Throw coffee in there, and you have the key profit drivers of fast-food.
Jack's solution: Discount deeper. The chain recently added a head-turner called the Big Deal, a cheeseburger, taco, fries and a drink, for $2.99. And, says Lang, "We currently have additional value-priced product or promotions in test elsewhere in our system." She described them as "margin neutral or margin friendly," without revealing specifics.
BurgerBusiness, Scott Hume's site devoted to all things burgers, noted in a recent posting that $2.99 is the new $5, the rockbottom threshold where everyone wanted to be earlier this year. As he pointed out, White Castle and Sonic are already offering meals at that price level.
Even Hardee's, a proponent of heft, is dabbling with bargain-priced snacks, vis-a-vis its new biscuit holes.
Product giveaways have become a routine way for chains to flycast for more customers. But if an everyday meal costs a mere $2.99, will that hook stay as irresistible? Or might "cheap" become irreversibly associated in the public's mind with "quick-service"?
I don't know, but I bet we're going to find out.
Monday, August 3, 2009
The newest jolt on quick-service menus
McDonald's isn't convinced that energy drinks would make a good addition to its beverage mix. Indeed, it's betting the public will more readily embrace liquid snacks like frappes or smoothies, or thirst quenchers like flavored waters.
But that hasn't stopped three of its quick-service rivals from taking the plunge. Carl's Jr. and its brother in burgers, Hardee's, jointly announced today that they're adding Monster-brand energy drinks to the menus of all stores starting this month. The statement noted how popular the jolt in a can has become among young people. "You can’t walk down the street without seeing a young guy holding a can of Monster," remarked Andrew Puzder, CEO of the chains' parent, CKE Restaurants.
CKE's decision to start selling cans of Monster follows the introduction last month of a proprietary energy-drink brand for Krystal, the regional square-burger specialist. Krystal not only decided to market its own drink, called Blitz, but to offer it in fountain form. Patrons can either have it served over ice, or "frozen," like a slush.
They're clearly seeing opportunity where McDonald's reads at best a possibility. "The jury is still out relative to energy-based drinks," McDonald's USA president Don Thompson reportedly remarked after the company's annual shareholders meeting.
What seems to be missing from the deliberations is how the public will perceive the chains' addition of the highly caffeinated and often heavily sweetened drinks, which are clearly aimed in part at high-schoolers and older teens. Some watchdogs are going to equate the sales push with peddling espresso to children. There very well could be a backlash.
But first, watch for other chains to follow the leads of Carl's, Hardee's and Krystal.
But that hasn't stopped three of its quick-service rivals from taking the plunge. Carl's Jr. and its brother in burgers, Hardee's, jointly announced today that they're adding Monster-brand energy drinks to the menus of all stores starting this month. The statement noted how popular the jolt in a can has become among young people. "You can’t walk down the street without seeing a young guy holding a can of Monster," remarked Andrew Puzder, CEO of the chains' parent, CKE Restaurants.
CKE's decision to start selling cans of Monster follows the introduction last month of a proprietary energy-drink brand for Krystal, the regional square-burger specialist. Krystal not only decided to market its own drink, called Blitz, but to offer it in fountain form. Patrons can either have it served over ice, or "frozen," like a slush.
They're clearly seeing opportunity where McDonald's reads at best a possibility. "The jury is still out relative to energy-based drinks," McDonald's USA president Don Thompson reportedly remarked after the company's annual shareholders meeting.
What seems to be missing from the deliberations is how the public will perceive the chains' addition of the highly caffeinated and often heavily sweetened drinks, which are clearly aimed in part at high-schoolers and older teens. Some watchdogs are going to equate the sales push with peddling espresso to children. There very well could be a backlash.
But first, watch for other chains to follow the leads of Carl's, Hardee's and Krystal.
Monday, June 8, 2009
Give me 12 episodes, babe
Just when I was about to hang up the tuba, the industry sends word it could use my cover of "Enter Sandman”. What else could you make of the news that Pizza Hut is launching an in-store entertainment network?
The disclosure of Hut TV follows indications that McDonald’s, Hardee’s, Arby's and Wendy's, among others, are also installing proprietary entertainment networks for patrons to watch as they munch their fries. The trade is going on the air. Instead of placing fast-food products in TV shows, some brands are placing TV shows in fast food.
Which leads me to why I’m suggesting you pick a card, any card. I don’t know if you’ve seen any television recently, but clearly there’s not a deep pool of programming from which the established networks can draw. If Rob Blagojovich’s wife is being cast in a primetime show, “Paint Drying: The Mini Series” might already be in storyboards on some cable exec’s desk. My flaming baton work may finally get the showcase it deserves. Heck, the other guy from Wham! might end up a star. This could be the best news Vanilla Ice ever got.
Of course, there’s some concern about how my art will be received in a quick-service venue. I don’t know about you, but the last thing I need is more streaming entertainment. If Fast Food TV catches on, it’ll fill in that five-minute gap when I’m disconnected from computer screen, Twitter feeds, cell-phone calls, radio, television, land line and iPod. Whew. No more of that mind-numbing boredom of thinking without distraction. Or, even worse, relative silence.
The chains are betting the media-saturated will appreciate not having to struggle through a disruption in sensory input. They’re also counting on unique programming to provide a point of distinction, like a new sandwich or a head-turning bargain. Pizza Hut, for instance, reportedly views Hut TV as an integral part of recasting the brand as a cooler, more contemporary concept called The Hut.
It’s a bold wager. Done wrong, the entertainment could be seen as an annoyance, or the sort of background din that’s disparaged as elevator music. And picking programming is clearly dicey. Need I mention "Cop Rock," a musical police show that was backed by Stephen Bochco and NBC? Or the Fox Network's "The Tick," starring a regular from "Seinfeld"? If that's how the industry's luminaries can stumble, imagine what an upstart network could do.
But what do I know? I was sure my kazoo rendition of “Umbrella” would chart.
The disclosure of Hut TV follows indications that McDonald’s, Hardee’s, Arby's and Wendy's, among others, are also installing proprietary entertainment networks for patrons to watch as they munch their fries. The trade is going on the air. Instead of placing fast-food products in TV shows, some brands are placing TV shows in fast food.
Which leads me to why I’m suggesting you pick a card, any card. I don’t know if you’ve seen any television recently, but clearly there’s not a deep pool of programming from which the established networks can draw. If Rob Blagojovich’s wife is being cast in a primetime show, “Paint Drying: The Mini Series” might already be in storyboards on some cable exec’s desk. My flaming baton work may finally get the showcase it deserves. Heck, the other guy from Wham! might end up a star. This could be the best news Vanilla Ice ever got.
Of course, there’s some concern about how my art will be received in a quick-service venue. I don’t know about you, but the last thing I need is more streaming entertainment. If Fast Food TV catches on, it’ll fill in that five-minute gap when I’m disconnected from computer screen, Twitter feeds, cell-phone calls, radio, television, land line and iPod. Whew. No more of that mind-numbing boredom of thinking without distraction. Or, even worse, relative silence.
The chains are betting the media-saturated will appreciate not having to struggle through a disruption in sensory input. They’re also counting on unique programming to provide a point of distinction, like a new sandwich or a head-turning bargain. Pizza Hut, for instance, reportedly views Hut TV as an integral part of recasting the brand as a cooler, more contemporary concept called The Hut.
It’s a bold wager. Done wrong, the entertainment could be seen as an annoyance, or the sort of background din that’s disparaged as elevator music. And picking programming is clearly dicey. Need I mention "Cop Rock," a musical police show that was backed by Stephen Bochco and NBC? Or the Fox Network's "The Tick," starring a regular from "Seinfeld"? If that's how the industry's luminaries can stumble, imagine what an upstart network could do.
But what do I know? I was sure my kazoo rendition of “Umbrella” would chart.
Tuesday, March 31, 2009
Way better than Padma
I don't know why Hardee's is bothering with yet another racing-themed marketing push when it's already using the gold standard against which all other racing commercials will be forever judged. Indeed, I can't understand why this campaign (I think we're up to episode six) isn't getting more attention. Check it out:
Monday, February 23, 2009
A news round-up
The start of the business week brought the usual flood of news reports from the restaurant industry. Most are merely in-box cloggers, but here are a few worth noting:
A huge I.O.U. for the business: The restaurant industry has a serious debt problem, according to a story posted today by USA Today. The article notes that 20 restaurant and retail companies are on S&P’s list of concerns that are struggling to keep up with their debt-service payments. And it quotes Thomas Reuters as saying that public restaurant companies on average owe 83 cents for every $1 of shareholders’ equity.
Simpler permitting for Gotham: New York City willstreamline the processes that typically delay the opening of a local restaurant or other small business, City Council speaker Christine Quinn promised yesterday. She specifically cited such time-saving steps as having necessary pre-opening inspections conducted on the same day, rather than arranging separate appointments with each agency.
There's no better price: The Quiznos sandwich chain announced it will give away 1 million sub sandwiches “as part of its effort to offer better prices for a better world.” The offer is in addition to the franchised chain’s promotional contest to award free subs for a year to a “hometown hero” nominated by visitors to a new website, www.millionsubs.com.
Even Chipotle's giving it away: Subscribers to the Arizona Republic found a collapsed brown paper bag slipped into yesterday's edition. It entitles them to a free burrito at Chipotle, a chain you wouldn't expect to be in need of that sort of traffic help these days.
Alabama restaurants to go dry: Restaurants in Alabama’s Shelby and Houston Counties will likely have to cease selling alcohol on Sundays because of a change in policy by state regulators and the apparent unwillingness of lawmakers to address the situation. Liquor licenses for the two jurisdictions allow establishments to sell alcohol only Monday through Saturday. But most got around that stipulation by also obtaining a permit to operate as a supper club on Sunday. Now state authorities say they’ll not honor the club license, and county lawmakers aren’t rallying to the industry’s defense.
Hey, Elliott Ness is dead: Meanwhile, Pennsylvania’s Cumberland and Perry Counties are reconsidering Prohibition. Some 25 towns there reportedly forbid or severely limit alcohol sales. Apparently there’s still some bad blood about permitting the direct election of senators and giving women the vote.
Size does matter: Carl’s Jr. is offering a 42-oz. soda in a Rob Dyrdek-themed “collector’s cup” as part of its tie-in with the pro skateboarder and reality TV star. The bucket-sized, reusable cup is free with the purchase of a large (?) drink or a combo meal.
Size does matter II: Concept sibling Hardee’s is making a pitch for big eaters with the rollout of new breakfast sandwiches made with Texas toast. The oversized bread holds egg, cheese and breakfast meats, and sells for about $1.69 a la carte or $3.69 in a combo.
A huge I.O.U. for the business: The restaurant industry has a serious debt problem, according to a story posted today by USA Today. The article notes that 20 restaurant and retail companies are on S&P’s list of concerns that are struggling to keep up with their debt-service payments. And it quotes Thomas Reuters as saying that public restaurant companies on average owe 83 cents for every $1 of shareholders’ equity.
Simpler permitting for Gotham: New York City willstreamline the processes that typically delay the opening of a local restaurant or other small business, City Council speaker Christine Quinn promised yesterday. She specifically cited such time-saving steps as having necessary pre-opening inspections conducted on the same day, rather than arranging separate appointments with each agency.
There's no better price: The Quiznos sandwich chain announced it will give away 1 million sub sandwiches “as part of its effort to offer better prices for a better world.” The offer is in addition to the franchised chain’s promotional contest to award free subs for a year to a “hometown hero” nominated by visitors to a new website, www.millionsubs.com.
Even Chipotle's giving it away: Subscribers to the Arizona Republic found a collapsed brown paper bag slipped into yesterday's edition. It entitles them to a free burrito at Chipotle, a chain you wouldn't expect to be in need of that sort of traffic help these days.
Alabama restaurants to go dry: Restaurants in Alabama’s Shelby and Houston Counties will likely have to cease selling alcohol on Sundays because of a change in policy by state regulators and the apparent unwillingness of lawmakers to address the situation. Liquor licenses for the two jurisdictions allow establishments to sell alcohol only Monday through Saturday. But most got around that stipulation by also obtaining a permit to operate as a supper club on Sunday. Now state authorities say they’ll not honor the club license, and county lawmakers aren’t rallying to the industry’s defense.
Hey, Elliott Ness is dead: Meanwhile, Pennsylvania’s Cumberland and Perry Counties are reconsidering Prohibition. Some 25 towns there reportedly forbid or severely limit alcohol sales. Apparently there’s still some bad blood about permitting the direct election of senators and giving women the vote.
Size does matter: Carl’s Jr. is offering a 42-oz. soda in a Rob Dyrdek-themed “collector’s cup” as part of its tie-in with the pro skateboarder and reality TV star. The bucket-sized, reusable cup is free with the purchase of a large (?) drink or a combo meal.
Size does matter II: Concept sibling Hardee’s is making a pitch for big eaters with the rollout of new breakfast sandwiches made with Texas toast. The oversized bread holds egg, cheese and breakfast meats, and sells for about $1.69 a la carte or $3.69 in a combo.
Thursday, February 5, 2009
New menu-item roundup
A few leads have leaked out about the next round of chain menu additions. Here’s a sampling as of early this afternoon:
--Carl’s Jr. may be bringing back its chili dog, judging from a few non-committal posts on Twitter.
--Burger King plans to add a thicker burger, called the Steakhouse XT (the “XT” apparently stands for “extra thick.”
--KFC will roll out its value menu next week. What it touts as a game changer, the addition of chicken that’s supposedly grilled (it’s actually flash-baked on a plate that imparts grill marks) is slated for April.
--Dairy Queen will introduce its value menu next month.
--O’Charley’s will introduce several new brunch items when it changes menus later this month.
--Hardee’s is pushing an “authentic” Chicken Parmesan sandwich.
--Carl’s Jr. may be bringing back its chili dog, judging from a few non-committal posts on Twitter.
--Burger King plans to add a thicker burger, called the Steakhouse XT (the “XT” apparently stands for “extra thick.”
--KFC will roll out its value menu next week. What it touts as a game changer, the addition of chicken that’s supposedly grilled (it’s actually flash-baked on a plate that imparts grill marks) is slated for April.
--Dairy Queen will introduce its value menu next month.
--O’Charley’s will introduce several new brunch items when it changes menus later this month.
--Hardee’s is pushing an “authentic” Chicken Parmesan sandwich.
Friday, January 30, 2009
Fast-food zen: Think small for bigger checks
The big burger chains are going small so their tabs can grow larger. Let me explain, Grasshopper.
With Jack in the Box joining Burger King, McDonald’s and Hardee’s in experimenting with mini-burgers, already a staple in casual dining, the era of what McDonald’s calls the “fourth tier” may be the upon us. Value menus bring in the bargain hunters. Premium offers are targeted at those sports who might spring for something special, like BK’s premium-priced Angry Whopper. Sandwiched between those pricing strata are the chain’s workhorse options, like burgers and chicken sandwiches.
Now comes the fourth tier of sliders, as (we) aficionados call the mini-burgers. Last year, with the phenomenal success of its Snack Wraps, McDonald’s demonstrated that deal shoppers would pop for a few cents more if the trade-up landed an even better bargain than the cheap eats on the dollar menu.
The mini sandwiches, which are often sold in packs, carry that strategy a step farther. McDonald’s Snack Wraps and the knock-offs that followed were all priced around $1.29. Burger King has priced its BK Burger Shots at $1.49, for a pack of two.
Jack in the Box is similarly selling its new Mini Sirloin Burgers in a three-pack.
McDonald’s Little Tasters are apparently sold one at a time. But they feature such premium touches as being served on a mini-ciabatta roll. The chain hasn’t revealed the pricing to those of us on this side of the pond.
Meanwhile, you have to wonder when Wendy’s will fire up a slider experiment of its own. The chain is certainly no stranger to minis. In the late 1980s, it tested a 2-oz. option called the Hot ‘n Junior. Might we see a reprise?
With Jack in the Box joining Burger King, McDonald’s and Hardee’s in experimenting with mini-burgers, already a staple in casual dining, the era of what McDonald’s calls the “fourth tier” may be the upon us. Value menus bring in the bargain hunters. Premium offers are targeted at those sports who might spring for something special, like BK’s premium-priced Angry Whopper. Sandwiched between those pricing strata are the chain’s workhorse options, like burgers and chicken sandwiches.
Now comes the fourth tier of sliders, as (we) aficionados call the mini-burgers. Last year, with the phenomenal success of its Snack Wraps, McDonald’s demonstrated that deal shoppers would pop for a few cents more if the trade-up landed an even better bargain than the cheap eats on the dollar menu.
The mini sandwiches, which are often sold in packs, carry that strategy a step farther. McDonald’s Snack Wraps and the knock-offs that followed were all priced around $1.29. Burger King has priced its BK Burger Shots at $1.49, for a pack of two.
Jack in the Box is similarly selling its new Mini Sirloin Burgers in a three-pack.
McDonald’s Little Tasters are apparently sold one at a time. But they feature such premium touches as being served on a mini-ciabatta roll. The chain hasn’t revealed the pricing to those of us on this side of the pond.
Meanwhile, you have to wonder when Wendy’s will fire up a slider experiment of its own. The chain is certainly no stranger to minis. In the late 1980s, it tested a 2-oz. option called the Hot ‘n Junior. Might we see a reprise?
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