Chef Dave Pasternack of B & B Hospitality Group’s Esca is partnering with LDV Hospitality (Scarpetta, American Cut) in an Italian fish restaurant venture. The restaurant will open in the old Promenade Des Anglais space. “I’m calling it Barchetta, which means small boat,” said Chef Pasternack. He continues, “It’s taken me 14 years, but I’m finally doing it.” Esca patrons need not worry, as Pasternack has no plans to leave.
Chipotle Profit Rises 30%
January 31, 2014 by Leave a Comment
Bloomberg News reports that Chipotle, the biggest gainer among restaurants in the Standard & Poor’s 500 Index last year, said fourth-quarter profit rose 30 percent as more customers visited its stores.
“It’s really marketing and advertising that’s driving traffic for them,” Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in an interview. “This is really impressive in light of what we’ve heard from other retailers, including Starbucks, who said December was a weak month.”
Blue Bottle Raises $25 Million for Expansion
January 30, 2014 by Leave a Comment
Thanks to the $25 million Blue Bottle just raised from investors, the Oakland-based coffee roasters will be launching several more locations on both coasts in the near future. The top-tier coffee company plans to “expand retail operations, improve internal training programs and further develop its quality control department.” A Boerum Hill location, bottled iced coffee and an improved sustainability quotient include just a few of the exciting ventures in store for Blue Bottle.
About.me founder and True Ventures (the company that invested $20 million dollars in Blue Bottle in 2012) investor Tony Conrad lauded visionary/Blue Bottle Founder James Freeman:
“What we saw and why we got involved is that James and his team are part of a handful of people who are founding a movement around coffee. It’s not just the very specific experience around the coffee Blue Bottle roasts, it’s everything they do from the way they source the product; supporting farmers in developing regions of the world to grow the purest, highest quality organic beans that promote sustainability; the way they choose store locations that often act as a vote of confidence for a developing neighborhood; and how they serve the product (what cup, what glass, what temperature, single origin beans versus blended bean mixes, espresso drinks only on premise….). They think through every detail to offer something beautiful in our daily lives—it’s a philosophy/approach that has led to a movement around the integrity of experience around coffee.”
President Obama Addresses Minimum Wage Debate in SOTU Speech
January 30, 2014 by Leave a Comment
Fast Casual reported on the need to increase the minimum wage and the solution to income inequality, addressed in President Obama’s State of the Union address this past Tuesday. The idea is that people who work full time should not have to support themselves and their families in poverty. President Obama noted that in the coming weeks, he will issue an executive order requiring federal contractors to pay their federally-funded employees “at least $10.10 and hour.” Currently, the federal rate is $7.25. That being said, President Obama acknowledged, “Americans understand that some people will earn more money than others and we don’t resent those who achieve incredible success.”
Some, however, argue that the minimum wage hike would actually hurt, not help.
The National Retail Federation’s CEO, Matthew Shay, said a minimum wage hike would create “minimum opportunities.”
“We welcome the president’s focus on the economy and jobs, but a minimum wage hike runs counter to that goal. Raising the minimum wage would place a new burden on employers at a time when national policy should be focused on removing barriers to job creation, not creating new regulations or mandates. It’s simple math — if the cost of hiring goes up, hiring goes down,” Shay explains.
He continues, “Fewer than 5 percent of hourly workers are paid the minimum wage. It’s really a starting wage that allows teen-agers or others with little job experience to enter the workforce. A mandated hike in labor costs would negatively impact businesses that employ people in entry-level jobs and ultimately hurt the people it is intended to help.”
Adjusting to Changing Landscape of Prepared Foods
January 29, 2014 by Leave a Comment
Supermarket News reports that retailers need to reposition their prepared foods line in order to stay afloat as demand for prepared meals spikes, according to a study by Acosta Sales & Marketing in Jacksonville, Florida. To be exact, 27% of shoppers go to supermarkets just to buy a prepared meal. The need to meet the “increasing desire for convenient, healthy and economical prepared meal solutions” is real. The study identifies three main considerations in the shifting supermarket shopping landscape:
- Millennials
- Convenience of buying meals out to eat at home
- Digital shopping
For operators interested in repositioning their aligning their prepared foods with the new face of the consumer market, the study suggests the following:
- Ensure adequate signage and promote prepared foods throughout the store.
- Offer value menu options and low-calorie versions of home-cooked favorites like pizza and macaroni and cheese.
- Offer ready-to-eat options that would typically take a long time to prepare at home, such as barbecued or slow-cooked foods.
- Offer a variety of ethnic meal options geared particularly to the Millennial consumer.
- Focus on add-on sales, since nearly half of shoppers studied said they purchased additional prepared items besides those they had planned to buy.
Starbucks Benefits From Transfer of Store Sales to Online Sales
January 29, 2014 by Leave a Comment
For the first time online traffic has surpassed foot traffic this past holiday season, according to Starbucks CEO/president and chairman Howard Schultz. A large majority of consumers also opted to purchase gift cards as opposed to gifting specific products.
Fast Casual reports that Starbucks processed more than 40 million new card activations valued at more than $610 million in the U.S. and Canada during Q1. This included 2-plus million new activations per day in the period immediately leading up to Christmas, and $1.4 billion of card loads globally, Schultz said.
Starbucks is not only benefitting from the transfer of store sales to online sales, but also the gain of new customers who purchased gift cards. Most of of the gift card recipients were first-time Starbucks purchasers, thereby strengthening opportunities for brand loyalty.
Financial Reflections for the New Year
January 28, 2014 by Leave a Comment
The start of a new year is typically a time for reflection, new perspective and a sense of excitement about what lies ahead. For many of us, it is also the end of our fiscal year— a time to close any outstanding items, prepare annual statements, and evaluate both our financial history and future strategic goals. For many operators, this becomes a daunting task that can be burdened further by unreliable and inconsistent financial information. For those who have dependable financial records available to them, it is often difficult to tie this information back to specific business operations. While financial statements are frequently prepared by third-party affiliates, there is rarely any context, interpretation or explanation accompanying them. Owners and management teams are in turn, left to fend for themselves.
Detailed statements and the right financial analysis can offer extremely valuable insight into key business drivers as well as areas for operational improvement and growth. It is essential to have the ability to compare and benchmark against historical periods as well as relevant industry standards. Beyond analyzing past information, operators often have no predictability and little foresight into future months or quarters.
At TaraPaige Group, we understand the powerful insight detailed financial records and analysis can provide. In our own work, we consistently rely on and implement the following building blocks to help our clients achieve financial success:
- A robust accounting management system that is customized and fitted to your business
- Accurate and timely recording of sales and vendor transactions
- Standardized reports and materials with relevant operating and financial metrics to be monitored on an ongoing basis
- Detailed operating budget that focuses on revenue drivers, expense breakdown and payroll
- Weekly and monthly performance tracking against operating budget to unlock opportunities for improvement and growth
- Long term financial that accurately reflects company’s growth strategy
Whether your business is in early stages of development or positioned for near-term growth, there’s no time like the present to evaluate your current financial operations. It’s the start of a new year, which calls for a fresh perspective and the right tools to tackle your strategic and financial goals. At TaraPaige, our goal is to create the optimal financial and operating foundation for our clients’ long-term profitability and success. For more information on how we partner with clients, please visit www.tarapaige.com.
Happy Reporting…TaraPaige Group.
Wine Direct Shipments Skyrocket as Average Price Per Bottle Decreases
January 28, 2014 by Leave a Comment
Winery-to-consumer direct shipments have exceeded the overall growth of the American wine retail sector dramatically, increasing to $1.57 Billion in 2013. According to reports based on millions of transactions in 2013 from ShipCompliant and Wines & Vines, the average price per bottle shipped has decreased for the first time since first being tracked in 2010. The newly-released, downloadable annual winery-to consumer shipping report gives detailed insights on the where, how, and when of winery shipments; furthermore, it predicts the future of winery to consumer shipping over a ten-year pipeline.
Notable report findings include:
- In 2013 the volume of shipments increased 9.3% to 3.47 million cases, while total sales of winery-to-consumer shipments increased 7.7% to $1.57 Billion
- 2013 was the first year that the average price per bottle of wine dropped from the prior year and rested at $37.78
- Shipments from Napa Valley represented nearly 50% of the total value of the channel
- Sonoma County and Oregon experienced explosive growth in direct shipments in 2013
- Shipments of Pinot Noir continue to increase across the country
- With only modest assumptions concerning growth, the direct to consumer shipping could grow to $3.2 billion in ten years.
Organic Avenue to Open Vegan Grab-and-Go Concept
January 27, 2014 by 1 Comment
In an attempt to surpass the competition, Organic Avenue is launching a vegan grab-and-go concept, slated for a spring opening. The vegan-raw-organic chain will introduce a variety of breakfast and lunch options to make it easier for New Yorkers to include healthy meal options throughout their day. “Our goal is to become the definitive destination for organic breakfast, lunch and cold-pressed juices, which gives us endless possibilities for expansion in key metropolitan markets around the country,” explained Martin Bates, Organic Avenue’s CEO and former chief executive of Pret A Manger. According to the New York Post, “the 10-store chain is also set to launch six stores this year, beginning in February with a 1300 square foot space at 640 Broadway in the East Village. Similarly sized locations at 5 Bryant Park, and 254 Park Ave. South will follow in April.”
Russ & Daughters Café to Open Mid-March
January 27, 2014 by Leave a Comment
After a century of churning some of the city’s best caviar, smoked fish, herring and bagels, Russ & Daughters will be opening Russ & Daughters Café, slated for a mid-March opening at 187 Orchard Street. Stay tuned to learn more about the exciting new venture.
paigepapers.com 