Seasonal Food Offerings to Boost Sales

August 29, 2014 by Leave a Comment

Let the pumpkin-flavored products begin! Beginning this week many chains are rolling out their seasonal pumpkin-flavored treats. McDonald’s will be offering their pumpkin-spiced latte beginning Labor Day, and Starbucks will roll out their PSL the following day. The pumpkin craze has increased over the past few years which has shown an increase in the demand for this seasonal treat. According to Nielsen, In 2013 pumpkin-flavored sales in the U.S increased 14%. This extra demand allowed for an 11% price mark up on pumpkin-flavored products according to the US Department of Agriculture.

Dunkin’ Donuts is also using the seasonal food offering as a strategic way to boost sales by introducing pumpkin coffees, muffins and of course doughnuts. Aside from the 200 million PSL Starbucks sold last year across its 11,700 U.S locations, it is also offering pumpkin scones, pumpkin cream cheese muffins, and pumpkin-flavored instant latte drinks. For this coming season, Dunkin’ is introducing a pumpkin creme brûlée coffee and Baskin-Robbins is rolling out a pumpkin-cheesecake flavored ice cream.

Coffee, doughnut and ice-cream chains are not the only ones to take part in this seasonal craze, packaged-food companies are also taking part. Quaker brand will be offering a pumpkin spiced instant oatmeal for the fall and General Mills Inc (GIS) will also be rolling out seasonal pumpkin-flavored products including Pillsbury cinnamon rolls, Yoplait yogurt and Betty Crocker cookie mix. Even Purina is jumping in on the action! Purina stated last month that they had introduced a salmon, egg and pumpkin blend of dry dog food.

To read more about how seasonal food offerings are key to boosting sales, click here

Filed Under: Global Market Buzz, Trending Now Tagged With:

Burger King Acquiring Canadian Coffee Chain Tim Hortons

August 28, 2014 by Leave a Comment

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

 

 

Filed Under: Global Market Buzz, Operations Tagged With: , ,

New Competition for Shake Shack from Beijing

August 1, 2014 by Leave a Comment

Uncle Sam Fast Food, a Bejing-based hamburger chain has signed a lease to open its first U.S. restaurant location. The fast food hamburger joint is set to open in a 5,600 square-foot space on Fifth Avenue in the NoMad neighborhood which just so happens to be located in between McDonald’s and Shake Shack and in the near vicinity of a Wendy’s and Smashburger. Uncle Sam Fast Food’s goal is to prepare the best Chinese-American burger and is meant to compete at the same level as Shake Shack.

The American-Chinese burger chain is owned by Bai Zhiming, a Beijing entrepreneur whose company registered US trademarks for the names Uncle Sam’s Famous American Burger and Uncle Sam’s earlier in the year. The reason the chain landed on a location between 31st and 32nd streets as opposed to Times Square or the West Village (where they also considered opening) was due to a high traffic volume from tourists and office workers.

The previous occupant of the space was deli Café Feastro which opened in 2009 and has been closed since November. Whilst challenging the likes of Shake Shack or McDonald’s may seem tricky and difficult, Uncle Sam Fast Food may still prove to operate better than the previous tenant in the space. Dennir Karr, a Newmark Grubb Knight Frank broker who represented the Beijing-based hamburger chain in the deal along with NGKF’s Jonathan Krivine and Jessica Tu of CJ Net Inc. states that, “they have additional restaurants in China and they’re using this somewhat as a laboratory for reaching customers.”

To read more about the opening of Uncle Sam fast Food in NoMad, click here

Filed Under: Openings Tagged With: ,

José Andres to Break Into Fast Food Scene

February 26, 2014 by Leave a Comment

José Andres revealed to Vanity Fair about his plans to enter the fast-food industry in the coming year and a half.

“Maybe I shouldn’t tell you . . . I’m not going to tell you why, but, I’ve been saying for a while that more and more chefs, we need to be [better at] influencing how to feed the many. We only feed the few. I don’t mean only on hunger issues, which I love to see the food community very involved in, solving the hunger and obesity issues in America and overseas, but I believe there’s an opportunity for chefs to have more of a say in how we’re going to feed the vast majority of this planet. You achieve that through the fast-food restaurants. I guarantee you that in the next 10 to 20 years we are going to see more and more fast-food restaurants lead by chefs.”

In response to the interviewer confirming Andres’ interest in exploring the fast food industry, Andres reasoned, “It would be right. Let me ask you: Who do you prefer, a clown organizing your menu—with all due respect to Mr. McDonald—or a chef? I do believe it’s a very simple answer.”

 

Filed Under: Global Market Buzz, Heard on The Street Tagged With:

Poultry and Pork Prices Expected to Fall in 2014

November 14, 2013 by 2 Comments

Poultry and pork prices are expected to fall 5-9% and 4-13% next year, respectively. The decrease in chicken breast meat prices could result in cheaper menus at fast casual and fast food retailers including McDonald’s, who recently abolished the Dollar Menu. The price of pork reached a record high this year, so the dramatic price cut will come as a relief. Bloomberg News attributes the price decrease of poultry to the 20% decrease in the price of corn, a dietary staple for chickens. On the contrary, beef costs will most likely not decrease until mid-2015 at the earliest, according to a report by purchasing co-op SpenDifference LLC.

Here are some tips for controlling costs:

  • Because of the predicted drop in wheat prices, look at breads and identify savings.
  • Both canola and soy oil are forecast to increase in 2014. If possible, take coverage at today’s levels to add price protection.
  • Take coverage in the front half of 2014 to protect from seasonal increases in the back half of the year for cheese.
  • Draft a food-cost purchasing forecast to identify areas of savings and potential cost increases.
Filed Under: Global Market Buzz Tagged With: , , , , ,

McDonald’s Nixes Dollar Menu

November 4, 2013 by Leave a Comment

In recent times, McDonald’s once very successful Dollar Menu has been hurting business. McDonald’s CEO Don Thompson explained the benefits of the new “Dollar Menu & More,” explaining that the menu “gives customers a value ladder of sorts, so that based upon their discretionary spending, they have multiple offers at McDonald’s.”

In conclusion, $1 items will remain, but the focus has shifted to $2 and $5 items. Many wonder why the “Dollar Menu & More” isn’t just called “the menu”.

Filed Under: Global Market Buzz Tagged With: , ,

Global Brand Simplicity

November 2, 2013 by Leave a Comment

Less is more.

New York-based global branding firm, Siegel + Gale, concluded the seemingly obvious, according to their 2013 Global Brand Simplicity Index. The firm found that when consumers perceive a business as simple, they’re more likely to return or spend money there.

Noteworthy findings:

  • 30% of people are willing to pay more for simplified experiences.
  • Restaurant customers in the U.S. would pay up to 4% more if the dining-out experience was simpler
  • 75% of consumers are more likely to recommend a brand that provides simpler experiences and communications.

Currently, McDonald’s, KFC and Pizza Hut are among the frontrunners for most-simplified restaurant experiences as perceived by consumers.

Filed Under: Global Market Buzz, Trending Now Tagged With: , ,

Food for Thought: Chipotle’s Partnership with Huffington Post

October 30, 2013 by Leave a Comment

Two days ago Huffington Post launched Food for Thought, Chipotle’s latest brand marketing strategy. Food for Thought is a HuffPost section dedicated to promoting awareness about healthful habits and sustainability practices. Contributing writers from all walks of life including doctors, lawyers and food authors discuss everything from food legislation to finding seasonal produce. This strategic move on Chipotle’s behalf is timely considering the recent shift of priorities since McDonald’s was its major investor. Now more than ever Chipotle is making efforts to be an industry leader in sustainable, GMO-free fast food chains.

Mark Crumpacker, Chipotle’s Chief Marketing Officer, writes that “people are more aware than ever of the impact that food has on people, animals and the environment.”

Through this partnership, Chipotle hopes to change customers’ perceptions of them as the burrito joint that’s owned by McDonald’s, to the Mexican fast food chain that genuinely cares about the sourcing of its ingredients and our affect on the environment.

Filed Under: Local Market Buzz, Trending Now Tagged With: , , ,
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