QSR Chains Seeking New Image

Quick-service chains will be attempting to reinvent a fresher image for the New Year by dropping their reputation of serving ‘junk food.’ The masses have spoken, expressing an aversion to overly processed and reheated foods. Chains such as Taco Bell and McDonald’s will be rethinking their choice of ingredients by removing the amount of artificial preservatives in their foods. Greg Creed, CEO of Yum Brands (owners of Taco Bell, KFC and Pizza Hut) realizes that, “This demand for fresh and real is on the rise.”

Creed stated at an investor and analyst presentation last month that the company should begin to use less preservatives and be more transparent about their use of ingredients. The objective to re-market fast-food into anything other than will be challenging as it has forever been perceived as fattening, cheap and unhealthy. Packaged food and beverage companies have already begun to reformulate their products by removing chemical ingredients. The transformation from junk food to ‘real,’ ‘fresh’ or ‘healthy’ food will be a tricky one. To read a few examples of QSR chains that are making moves towards this challenging recasting of their brands, click here.

 

Rent Spike Forces Heartland Brewery To Close

It is sad to see such an integral part of the Union Square neighborhood closing. Heartland Brewery at 35 Union Square West opened in 1995, and as of yesterday was forced to close due to a large rent spike. Jon Bloostein also has four other brewery locations as well as Flatiron Hall, Houston Hall and Guy’s American Kitchen and Bar in Times Square, but there is something about this specific closing that makes it eerie for the restaurant scene in Union Square; if a high-profit brewery with a large turnover can’t make it, does that mean all restaurants are doomed?

Danny Meyer, who will be closing the epic Union Square Cafe at the end of this year, wrote that the rent had tripled for the 6,600 sq ft space. Rumors are that the other high-volume touristy spot in Union Square, Blue Water Grill, may also be facing the same fate. As for the Heartland Brewery, Bloostein said the rent spiked to $2 million for the full space, meaning $450 per square foot. According to a real estate broker who focuses mainly on spaces for the hospitality industry, the average asking rents in the Flatiron/Union Square area are on average $275 per square foot. This creates a very tricky atmosphere for traditional restaurants.

To read more about the closing of the iconic Heartland Brewery in Union Square, click here

Happy New Year!

Happy New Year!!  Wishing everyone a fantastic 2015.

new-year-2015

Best Wishes,

TaraPaige Group