Soaring Beef Prices Drive Demand for Goat and Lamb

Goat is the most widely consumed meat everywhere except America.  The States have a poor perception of the farm animals, but that, fortunately, is changing, thanks to a rise in cattle prices.

Kevin Good, senior analyst at CattleFax, explained that beef costs are rising due to cattle herds being decimated after multiple years of drought that drove of feed prices.  Cattle farmers are rebuilding their herds, but the process takes up to three years, so prices are likely to stay high until 2016 or 2017.

For chefs, this means turning to alternatives, and goat is an exciting meat right now.  Stephanie Izard, chef of Girl and the Goat, won a James Beard Award for her cooking, which was basically dedicated to the animal.  Her menu includes goat liver mousse, goat carpaccio, and confit goat belly, to name a few items.  Similarly, Scott Conant, James Beard Award winner and founder of Scarpetta, has championed goat for years on his menu.

And this is a boon for guests and grocery shoppers.  Goat is lower in fat than chicken, but higher in protein than beef.  Lamb, which is already more widely consumed in the States than goat, is also seeing a rise in demand.  Multi-unit concepts are embracing the meat and using it in place of burgers.

To read more, click here.

Le District to Partially Open This Week

The giant French market, bakery, cafe, and restaurant, also known as the French Eataly, is set to be partially open this week in the Brookfield Place in Battery Park City.  Over the weekend, the Cafe District opened up to the public serving pastries, espresso, and candy.

Much to the delight of Francophiles around the city, this is also the first US location of the Paris-based candy store, La Cure Gourmande, which is now open inside the Cafe District.  Guests will have to wait until Wednesday, however, to get a taste of chef Jordi Valles’ brasserie cooking at Beauborg.  The final portion of the project, a 28-seat tasting menu restaurant called L’Appart will not open until May.

Le District has slowly been releasing details about the project to excite guests.  In case you missed any of the previous reports, here are the highlights:

The space is divided into four districts: cafe, restaurant, garden, and market.  While separate physically, guests will be able to interact with the spaces with some degree of cohesion; for example, guests can purchase a steak at the butcher and have it cooked on the grill before leaving.  Also, the salad bar will switch over to a chocolate mousse bar at 4:00p.m.  Inside the market, there’s a wine bar, rotisserie, fishmonger, bakery, and cheese shop.  In addition to the 30,000 square feet inside, Le District will also have 7,000 square feet of outdoor space, with 250 seats overlooking the Hudson.

To read more about Le District, click here.

Burger King Acquiring Canadian Coffee Chain Tim Hortons

Burger King announces on Tuesday that they are acquiring the Canadian coffee and doughnut chain Tim Hortons in an $11 billion dollar deal. The aim is to convert Tim Hortons into a major player in the breakfast business in and outside of Canada. The new company will become one of the fastest growing fast food chains globally according to Burger King’s executive chairman, Alex Behring. Tim Horton’s could help Burger King become a part of the coffee and breakfast market within the USA which are currently controlled by Starbucks, Dunkin’ Donuts and McDonald’s. CEO of Tim Horton’s, Marc Caira, has mentioned the chain plans to re-design the stores to include couches and fireplaces as part of the efforts to be more noticeable in the U.S. Both parties will benefit from the deal, as Caira states that Tim Hortons will “win much quicker” within the U.S with Burger King’s help.

The lack of brand recognition will cause a struggle for Tim Horton’s to establish a clientele, especially while Starbucks is expanding its breakfast offerings and TacoBell are launching a national breakfast menu. McDonald’s also has plans to amp up the marketing for their breakfast business. Hopefully the newly partnered companies of Burger King and Tim Hortons will be able to successfully compete. The chains will continue to run independently in the sense that whoppers will not be on Tim Hortons menus, neither will doughnuts be offered at Burger King. CEO of Burger King Daniel Schawrtz states, “There’s no plans to mix the products or do co-branding.”

The new company will have roughly $23 billion in sales and over 18,000 locations after the deal is complete early next year. To read more about the acquisition and implications, click here

 

 

American Chains To Expand In The U.K.

In the U.K. as in America, health and lifestyle restaurant and fast casual concepts are becoming increasingly popular. The demand for innovation is high in both countries as the customer is mainly concerned with convenience, customization and movability. The fast casual segment in the UK had a year-over-year sales growth of 8.3% in 2013, and a five-year sales growth of 12.6% according to Technomic’s Top 100 U.K. Chain Restaurant Report.

Some fast casual concepts in the USA also operate in the U.K. such as Nando’s, the portuguese grilled chicken piri piri concept, and Pret A Manger, the healthy sandwich chain who is also currently the second largest fast casual operator in the U.K. Pret’s customers are very loyal because they appreciate the healthy recipes and preservative-free ingredients that are sourced fresh daily. In 2013, the 270 Pret A Manger stores generated £391 million. Of the Top 100, the fastest growing U.K. fast casual chain is Patisserie Valerie. The patisserie’s units grew by 24% in 2013 and sales increased 25% to £53 million. The concept is a patisserie/café that is known for their handmade celebration cakes, sandwiches, pastries and gelato. The design differs from restaurant to restaurant but the general decor theme is influenced by the 1950’s and some outposts have outdoor seating available.

A few American chains are considering expanding their unit counts in the U.K. such as Shake Shack, Smashburger and Five Guys Burgers and Fries; all budget chains whose main competitor in the U.K. would be Gourmet Burger Kitchen. The concept consists of made-to-order gourmet hamburgers that use only high quality ingredients. Total sales in 2013 for Gourmet Burger Kitchen were at  £46 million. Over the next years Technomic predicts that sales and unit growth for the segment will continue to grow and will perhaps promote an implementation of more global foods and advanced technologies.

To read more about the fast casual segment in the U.K. and America, click here

Chick-fil-A Revamping Coffee Offerings

As Chick-fil-A grows their breakfast business they have decided it was time to upgrade their coffee brew. David Farmer, Vice President of Product Strategy and Development for Chick-fil-A states that the chain’s diners, “might put up with our coffee, but that’s a limiting factor in growing our breakfast business.” Breakfast is currently the fastest growing day part in the QSR food business and having a great cup of coffee is crucial to be considered a top player.

Yesterday Chick-fil-A announced that they would be substituting their current brew for a new specialty-grade coffee from a supplier that shares its revenue with farmers called Thrive. Chick-fil-A will also add a breakfast staple to their menu, iced coffee, which will also draw in afternoon traffic. The chain has also given new instructions to their restaurants to brew smaller pots of coffee so the taste will be fresher. For the past year Chick-fil-A has been developing their coffee program in Philadelphia, Nashville and Phoenix where coffee sales increased by 35 percent; the expectation of this new coffee program in stores is that it will double current coffee sales.

To read more about the new specialty brew coffee items on the Chick-fil-A menu, click here

OpenTable Brings Mobile Payment Services Nationwide

OpenTable, acquired by Priceline for $2.6 billion this past June,  will begin to expand the mobile payment service nationwide in the next coming months. This new feature, which was launched as a trial earlier this year in San Francisco, will allow users to book their reservations and then pay for their meals all through the OpenTable iPhone app. According to the company the app allows the user to connect it with a credit card without having to scan or use bar codes in the process; making it very streamlined and user friendly. Having started to roll out mobile payments in New York (about 45 restaurants to date), OpenTable expects to extend the service to 20 additional cities in the USA.

Eliminating the often annoying process of waiting for the check by paying via mobile app should lead to a faster turnover which in turn will drive revenue. OpenTable will not be charging an extra fee for using mobile payments. An OpenTable spokesperson also commented that the ability to pay with the app will encourage trends in tip and check-size. There are other companies that have also adopted mobile payment services such as PayPal and Cover. Senior Analyst Joran McKee states that, “OpenTable’s prospects look particularly promising, as it has relationships with 31,000 restaurants from its reservation service that it can tap into.”

Some New York restaurants that are adding OpenTable’s mobile payments services are Agave, Café Luxembourg, Il Buco, Le Cirque, Ruby Foos and The Odeon. To read more about OpenTable’s mobile payment services roll out, click here

Menu Tweaks For Healthier Dining

Picking the healthiest options from a restaurant menu can often involve a good deal of scrutinizing. As the popularity of dining out has risen so too has the obesity epidemic; Americans receive over a third of their calories from meals prepared outside of their homes.  Unfortunately for restaurants, high margin foods are usually not the healthiest choices, so it would be smart to start selling higher margin healthy dishes, but how do you get the guest to order these foods?

A Cornell University professor of food marketing, Brian Wansink, believes that by tweaking menus, restaurants can find a way to satisfy the needs of  the guests, operators and physicians! According to Wansink’s study published by the International Journal of Hospitality Management , here are a dew ways to redesign menus to entice the guest to order healthier options:

  • Using color highlights, creative fonts and graphics to bring focus to the vegetables and whole grains. Descriptives such as “Chef’s Recommendation” or “Traditional Favorite,” have been shown to increase consumption by 28 percent.
  • Avoid using the label “healthy”—in food psychology, the guest mentality is that if they wanted to go healthy they would have opted for a different establishment that specializes in that domain.
  • People naturally scan menus like they do editorials, so by placing the healthier dishes in the four corners of the menu they will attract more attention.
  • Place the healthy food options at the tops and bottoms of columns—these items sell 25 percent more.
  • Rename the dishes by adding on a few adjectives. For example, “Succulent Italian Seafood Fillet,”will sell 28% more than “seafood salad.”
  • Whole dollar figures ($10) create the illusion that items are cheaper than if there is a decimal value ($10.00) . If possible, it is also recommended to remove the dollar sign completely so guests are not thinking about how much they will have to pay but rather what they are going to be consuming.

Wansink believes altering a menu can help to “shift attention, enhance taste expectations  and increase perception of value” to get people to make healthier eating choices.  To read more and check out a visual diagram he created, click here

 

Protecting Restaurant Intellectual Property

With the rise of digital and social media platforms being used for advertising, it is crucial for restaurants owners to protect their rightful intellectual property. It takes a great deal of creativity to grow a business, so the National Restaurant Association has come up with seven ways to protect this intellectual property in order to strengthen the restaurant brand and help to avert competitors.

  1. Names: It is recommended to consider names that won’t be difficult to protect. For instance, naming a restaurant after a family name will be difficult as chances are it already exists, however an arbitrary yet distinctive name with unspecified value will be easier to trademark; a little trademark research could come in handy. For local restaurants it is advisable to choose names that do not resemble those of competitors in the slightest, and for nationwide restaurant chains it is important to note that a strong trademark with a federal registration is obligatory.
  2. Menus:  Signature dishes should come with creative signature names as well. Opt for special names rather than non-specific descriptives.  Unique names can be protected as trademarks and help to build value for the restaurant. If the restaurant menu incorporates  illustrations, images, or photographs in a creative manner, these elements can also be protected and trademarked. By doing so, if a restaurant owner stumbles upon another restaurant that has copied the menu layout or names, he or she can use copyright law to stop the infringement.
  3. Recipes: Just as non-disclosures and non-competes are included in employee contracts, the actual restaurant recipes should also be protected. Not having protected recipes could result in the loss of a trade secret. Patent protection for unique and distinctive recipes is also highly recommended.
  4. Back-of-house: Many QSR have patented their methods of doing business such as their assembly lines for food preparation and even food-frying methods! .
  5. Take-home items: Signature products that are sold in restaurants  such as coffee, preserves, spices or condiments, apparel and dish ware for in-home use should seek trademark protection .  in expanded classes of goods as you are extending your brand beyond the confines of the restaurant.
  6. Décor:  Restaurant floor plans, layout and interior/exterior décor can be protected so long as it’s unique. Certain common layout/décor combinations cannot be protected, such as chianti bottled candles and red and white checkered linens in Italian restaurants, but if an operator consistently employs the same combination of unique and distinctive elements it can be protected.
  7. Websites and social media: Web pages can be protected under copyright law, as can it’s content such as the photographs and layout arrangements. Social media outlets should be consistent with themes similar to the website. The thing to look out for in the web sphere is to ensure that the content is not in violation of advertising laws as this can actually weaken the owner’s intellectual property.

The NRA has provided this helpful information to help out whether you are starting a new restaurant, opening a second location, or developing a franchise. Using intellectual property law to set your brand apart from others in an industry that is so competitive is a smart move. To read more about these seven steps, click here

 

Burger King’s New Menu Strategy

Over the past year Burger King has attempted to change its menu not by creating new items that require new ingredients, but rather by creating new items that use ingredients that already exist on hand in the kitchen. Burger King has said that this approach to menu innovation is working in their favor; Daniel Schwartz, Burger King Chief Executive Officer has stated that the third consecutive quarter of growth was “driven by our strategy of launching fewer, more impactful products and by the continued popularity of our core offerings.”

In the last quarter Burger King launched five new items, less than it has in past quarters, which were all essentially versions of existing burgers with small adjustments. For instance, the new Chicken Big King is a Big King with a chicken patty that replace the beef patty. Similarly, the new BBQ Bacon Whopper is essentially a Whopper that has bacon and sauce added to it, and the Extra Long BBQ Cheeseburger utilizes the same hoagie bun that is currently used for the chicken sandwich and inserts two beef patties, cheese, BBQ sauce and onion rings.

In the past Burger King has launched seasonal new items which caused complications in the kitchen, which led to this more modest menu innovation strategy. McDonald’s is also attempting to simplify the menu in order to increase speed and efficiency at its restaurant locations. The ordering and execution will be more streamlined with simpler menu items that do not require too many ingredients or a complicated time-consuming assembly process. Burger King’s President for North America, Alexandre Macedo, has stated that this new menu strategy that tweaks original menu items without adding new products or ingredients will enable the company to focus spending in certain high-impact areas and will also allow Burger King to be more consistent across the board in its marketing efforts.

To read more about Burger King’s menu strategy, click here

Growing Off-Premise Profitability Through Technology

 

Erle Dardick has been in the catering business for fifteen years and is known as the expert when it comes to helping multi-unit restaurants create successful catering revenue channels. Erle also founded a software, MonkeyMedia Software, that provides catering solutions to multi-unit restaurant operators.  The use of online and mobile ordering technology is the strongest sales and marketing tool to grow a business. Research shows that the average ticket is 30% higher on online ordering platforms than it is in-stores. In order to have a successful online ordering platform that is quick, easy and efficient in order to meet customers’ demands, a solid strategy must be put in place to promote the platform. Below are Erle Dardicks’s five marketing methods to promote an online catering platform:

1. Make your platform user friendly. The online and mobile ordering platforms should be very customer friendly and intuitive. It should be set up in a way that satisfies the needs of the customer in a user-friendly manner.

2. Determine the best way to drive frequency. Promotional offers and/or discounts on group orders over are a good way to increase ordering frequency. Rewards and loyalty programs are also a great tool to promote the online platform.

3. Drive in-store traffic to your online and mobile ordering platforms. Good signage in-stores that promote the catering program and online/mobile ordering platforms will increase awareness. Staff should also be trained to redirect callers who call in to place an order from the store to the online/mobile ordering platform (they could also offer a promotional code for a first time use of the service).

4. Reward first-time users.  Incentivizing first-time users of the online/mobile ordering platforms is of utmost importance. Research shows that consumers find it easier to redeem coupons and promotions online or through mobile devices, and will do so when prompted. This means that restaurant operators have an increased opportunity to promote their off-premise program through promotional offers that will drive online and mobile ordering, increasing sales as a result. The follow-up with these first-time users will prove useful as it is an opportunity to gather important information about their experience.

 

5. Follow-up about the customer experience. Feedback about the online and mobile ordering process and experience is important because it allows you to discover what customers like and what they believe has some room for improvement. It is as important to really ask the correct questions; ie. Were there any concerns after placing an order? Was everything to their satisfaction?

 

To read more about the way the proper technology tools can grow off-premise profitability, click here