Starbucks Introduces A New Breakfast Sandwich

Starbucks is making a move towards the what Bloomberg is calling a ‘meat strategy.’  Starbucks shops in Orlando and San Diego are testing more protein focused food items. Some of these items include options such as chicken and artichoke sandwiches or barbecue brisket sandwiches. Another protein lunch (or breakfast) option being tested in these cities is the prosciutto and mozzarella Pinwheels Bistro Box. Along these lines, Starbucks is introducing a new breakfast sandwich, the Double-Smoked Bacon, Cheddar & Egg sandwich. This Starbucks version of a BEC will be prepared on a croissant-type bun.

Starbuck’s chief strategy officer explained that Starbucks is “no longer a one-trick pony … that era has long passed.” To read more about Starbucks’ strategy to rely less heavily on coffee sales alone, click here

Shake Shack Expanding In Japan

Shake Shack raised $105 million in its initial public offering last month and now plans to push the expansion overseas. Shake Shack’s largest presence is in New York with fifteen shops, but also has other shops within the US and a few overseas including London, Istanbul, Moscow and Dubai. The burger chain plans to open ten more and grow to roughly 450 shops.

Shake Shack signed a licensing agreement with a Japanese company, Sazaby League Ltd., which has opened Starbucks coffee shops in Japan in the past. The goal will be to open ten Shake Shack shops in Japan by 2020. A Tokyo restaurant is expected by next year. The Japanese Shake Shack restaurants will have the same Shake Shack menus with the same burgers, shakes and crinkly fries and their infamous frozen custards. For more information on Shake Shack’s expansion overseas in Japan, click here. 

Milk & Hops Opening In The Village

Yang Gao, a Beijing immigrant in New York went from being a professional musician to opening a wine shop in Astoria, quite the change of industry for Yang!  He later opened two outposts of Astoria Bier & Cheese, a market-restaurant hybrid that sells domestic craft beer and international cheeses. The beers and cheeses are served in different styles and preparations across the long marble bar.

Astoria Bier & Cheese will now be moving to Manhattan and is scheduled to open by next week. While it will not be called ‘Astoria Bier & Cheese’ because of geographical reasons, the concept of a hybrid restaurant-market will remain the same. The menu will also be very similar including meat and cheese plates and sandwiches. The shop inside Milk & Hops will sell grab-and-go cheeses, cocktail bitters and cocktail mixes. The new location can be found at 779 Broadway near 9th St. For more information on the opening of Yang Gao’s Milk & Hops in the west village, click here

The Chocolate Expo In Garden City!

The Chocolate Expo is one of the largest chocolate events in the U.S., offering tastings & sales of chocolates, baked goods, specialty foods, gelato, cheeses and wines from roughly 50 local, regional and international vendors. The event will take place in Garden City, New Jersey on March 1st from 10AM-7PM at the Cradle of Aviation Museum. Aside from the combination of chocolate and food, the expo also has unique exhibits, performances, demonstrations and celebrity appearances.

For a list of the participating vendors at the March 1st Expo, click here. The Chocolate Expo supports local foods & farming and regularly invites farms to participate and encourage other vendors to use locally-sourced ingredients, whenever possible. For more information about the Chocolate Expo, visit their website here.

People, Process, Products

In October, we discussed the process of conceptualizing your foodservice enterprise by reviewing the market, location, and concept components and how they fit together. This month, we are discussing what’s next in the development process: planning profits, people, and processes. Similar to before, we will review these pieces individually and how they’re interconnected.

Plan for Profit: Business—any and every—exist to make money. If your foodservice enterprise isn’t planned to make penny, the chances of success and sustainability are slim. Thus, we have to start with the financials. Once you’ve determined your concept, market, and location, you must take a closer look at your budget.

Budgeting begins with determining the following:

  1. Capital Budget: based on the three pillars, you should be able to estimate the necessary capital required for construction and startup.
  2. Revenue: you will need to model the following:
    1. Product Prices: Based on your concept, market, and location, determine the range of prices you will charge for your products
    2. Number of Transactions per hour: you should take traffic count from similar concepts near your desired location to determine an estimated transaction count
    3. Product Sales: based on your traffic counts, estimate the sales of each product per transaction
    4. Average Check: use the prices, transactions, and sales to determine average check
  3. Recipe Costing: during menu development, it is absolutely necessary to cost your recipes to ensure that the product, price, and profit potential are aligned.
  4. Labor: this is the second piece of this puzzle, and is further discussed below.
  5. Expenses: Evaluate your location and concept to determine approximately what your expenses will be.

Plan your People: Next, it is important to determine what your labor needs will be. In a previous Enterprise Insight, we discussed labor costs at length. Just as in that discussion, it is important to plan ahead for your labor needs with an eye to costs, as per planning for profit.

Additionally, though, developing your talent pipeline has as much to do with culture as it does your profit and loss statement. When hiring for a new location—whether it’s the first or fifth—ensure that the team is going to fully embrace, embody, and deliver the brand and what your company stands for. Hire slowly and intentionally, and plan ahead for the needs of the organizational structure.

Plan your Processes: Equally as important as your people and profits is your process—you need to know how things will operate in order to maximize both people and profits. Thus, this piece needs to be considered at the same time as the previous two, because it is systemic.

For example, if you own a bakery, you need to understand how and when your baked goods will be restocked. This decision is both tied to and will drive the people and profit portions—not enough staff and you won’t be able to restock in a timely manner, and sales will suffer. Or, you might have too much staff, which can drive sales, but may overrun your labor budget.

All in all, this gives a snapshot of how the different components of the development process are interconnected.

Happy President’s Day From TPG!

images-3

NY Drinks NY: Trade and Media Preview

The New York Wine & Grape Foundation is a not-for-profit corporation promoting all wineries and grape-growers in New York State. The Foundation’s strategic goal is to have the New York grape and wine industry recognized as a world leader in quality, productivity, and social responsibility. New York ranks third in wine production nation-wide and the wine industry contributes $4.8 billion annually to the state’s economy.

The New York Wine & Grape Foundation organizes NY Drinks NY which celebrates wines from across the state during the month of March . The signature event of NY Drinks NY is the Grand Tasting at Astor Center, the largest annual collection of local wines from the Finger Lakes, Long Island, and beyond. The fourth annual Grand Tasting will take place on Tuesday, March 10 from 12 pm to 4 pm for trade and media; the event will be open to the public from 6 pm to 8 pm. For trade and media information, please contact: Kayt Mathers First Press Public Relations & Consulting kayt@firstpresspr.com 212-867-5516.

Astor Center, 399 Lafayette St

Follow

Get every new post delivered to your Inbox.

Join 615 other followers