Strategic Pizza Infrastructure Goes High-Tech

March 5, 2015

BN-HF942_0304_c_G_20150304135445http://blogs.wsj.com/cio/2015/03/04/strategic-pizza-infrastructure-goes-high-tech/?mod=wsj_ciohome_cioreport

Stuffed crust isn’t the only battle ground for Domino’s Pizza Inc. and Pizza Hut. The chains are promoting smartwatches, connected cars, retinal scanning and other interactive technology for order and delivery – and learning what works and what doesn’t in customer experience.

Ordering pizza is a time-honored proof of concept for new technology. The very first retail purchase on the Web was a Pizza Hut pizza, the company claims. Now it and Domino’s are experimenting with just how much change customers can tolerate as technology remakes the noble task of ordering a pepperoni pie. Domino’s, for example, lets customers order in Ford Fiestas with voice commands and on Pebble smartwatches with a touch interface. Pizza Hut lets gamers order through their Xbox and in the United Kingdom is testing retinal scanning technology that detects where a customer’s eyes rest on a digital menu board and adds toppings accordingly.

“Pizza companies are paving the path for technology in other kinds of restaurants,” says Darren Tristano, an analyst at Technomic Inc., a food industry consulting firm.

And both companies watch the tech moves of one another — and those of other retailers – closely. Domino’s CIO Kevin Vasconi says customers will jump to Pizza Hut or another competitor the moment an ordering system hiccups. “If you’re on Dominos.com and not having the best experience, it’s not hard for you to go to one of our competitors,” Mr. Vasconi says. “We want to not only have best experience in your car, but on your watch and in other venues, too.”

Pizza Hut is building an in-car ordering and payment system with Accenture and Visa Inc., which announced the project Monday at the Mobile World Congress in Barcelona. Testing is expected to start this spring. The system’s beacon technology can alert restaurant staff when the customer pulls into the parking lot, says Carol Clements, U.S. CIO for Pizza Hut, which accounted for $1.1 billion of the $13.3 billion in sales reported last year by parent company Yum Brands Inc.

Anticipating customer behavior influences where Pizza Hut invests, Ms. Clements says. Aside from drivers, IT is the fastest growing part of the business. Pizza Hut wants to add 100 people, including contractors, to its 160-member technology and digital staff, focusing on analytics talent and mobile developers to build out tablet and self-service kiosk apps. But not every new technology is ripe, she says, including wearable devices. “When you’re ordering a pizza, there’s a lot of information we need. Whether we can do that on a little, 2-inch by 2-inch watch in a way not frustrating for customers, we’ll continue to evaluate.”

At Domino’s, tech investments must pay off in sales, conversion rates or new-customer acquisition, Mr. Vasconi says. About half of its $2 billion in 2014 sales came from digital platforms and half of that was from mobile devices, he says. At 200 people, IT is one-third of the company’s corporate staff and they want to hire 50 or 60 more this year. Domino’s measures itself against Pizza Hut and other competitors, looking at website load time, number of steps to order and user-interface design. But Mr. Vasconi also studies innovators outside the pizza business, including Zappos.com and Uber. (He promises no surge pricing on pizza.)

A partnership with Ford Motor Co. to use the Sync AppLink connectivity system lets drivers in Fiestas, Mustangs and other cars order Domino’s with voice commands. But it’s not a high-traffic ordering vehicle, Mr. Vasconi says. ”Customers say it’s a great idea but they’re not going to use it every day.”

Still, it’s one more avenue for orders, and being everywhere can increase customer loyalty, Mr. Tristano says. “People want the ultimate convenience of being able to get what they want when they want it.”


Wings Fly Off the Menu

March 3, 2015

kensfeaturemarchRestaurant Hospitality
http://restaurant-hospitality.com/salad-solutions/wings-fly-menu
© 2015 Penton Business Media. All rights reserved.

The popularity of chicken wings is soaring across the country, fueled by an ever-increasing number of innovative sweet and spicy sauces developed by restaurateurs and manufacturers.

Statistics tell the tale. According to the National Chicken Council’s 2015 Wing Report, Americans were expected to have eaten 1.25 billion wings during Super Bowl XLIX alone. Another study conducted by online food-ordering firm, GrubHub Inc., disclosed that wings now rank as the top-selling takeout food ordered nationally, beating out traditional favorites like pizza and cheeseburgers for the year ended Sept. 29.

In response to growing consumer demand, the total number of operators offering wings increased nearly 6 percent between 2009 and 2011, according to Technomic Inc. in the research firm’s most recent Category Close-Up on wings.

The Technomic study also found the average number of wing sauce/flavor varieties offered by restaurants rose nearly 9 percent since 2009.

Operators are menuing a greater array of sauces and flavorings in response to consumers’ growing desire for choice, says Darren Tristano, executive vice president of Chicago-based Technomic, noting, “Variety is the spice of life.”

The trend toward customization, especially among Millennials, is helping to drive the proliferation of sauces and flavors. “People get bored. They want to be entertained,” says Tom Scalese, chief operating officer of East Coast Wings & Grill, which features 75 different flavors of sauces and rubs. “They want an experience and not the same one all of the time.”

Consumers also are becoming far more adventurous when it comes to the dining out experience. Another Technomic study showed more than half of consumers said they prefer spicy foods. “This is the first time that figure has been over 50 percent,” Tristano says.

According to Datassential, the fastest-growing wing flavors by menu penetration over the past four years are Sriracha, Parmesan and Garlic Parmesan, all of which grew by 100 percent or more. Other top wing flavors are mango, which grew by 80 percent; soy, 80 percent; habanero, 78 percent; hickory, 67 percent; Thai, 52 percent; chipotle, 43 percent; chili sauce and chipotle BBQ, 40 percent each; and bourbon, 36 percent.

In response to customer demand, chain operators have been making the most of nontraditional wing flavors over the past year. For example, Buffalo Wild Wings debuted Smoldering Santa Fe Wings with guajillo, chipotle and jalapeño peppers as an LTO in January, Datassential says. Other chain rollouts over the past year include Godfather’s Pizza with its Sweet Chili Sauced Wings; Mazzio’s, Lemon Pepper Wings; Tilted Kilt, Raspberry Chipotle Wings; Popeye’s Louisiana Kitchen, Ghost Pepper Sings; and Bahama Breeze, Rum and Coke Wings.

However, while chefs and manufacturers are pulling out all of the stops in their quest for innovative flavors, Datassential points out that traditional favorites like hot, Buffalo, barbecue, bleu cheese and ranch are still central to wing menus, as are mild and medium-style hot sauces.

In the meantime, foodservice operators are shaping their menus to provide a variety of wing options for their guests. East Coast Wings & Grill, a 33-unit polished casual-dining chain based in Winston-Salem, N.C., offers guests an extensive variety of wing options in addition to other selections like burgers, salads, chili, soups, sandwiches, quesadillas, wraps and ribs.

Wings, however, still comprise the bulk of East Coast Wings’ sales — in the neighborhood of 25 percent of the menu mix, Scalese says.

Helping to fuel wing sales is the chain’s epic variety of 75 sauces and rubs, which includes Sriracha Ranch, Honey Mustard, Teri Ginger Garlic, Parmesan Peppercorn, Kentucky Bourbon and Bacon Ranch. East Coast Wings also has been testing new flavors as LTOs like Apple Barbecue and Chipotle Habanero.

At the same time, patrons can further customize their wings by selecting one of nine different heat index variations, including mild, medium, hot, extra hot and inferno. Scalese says the chain offers more than 600 flavor combinations of wings.

All of East Coast Wings’ sauces are proprietary, he continues. And while many of those sauces are prepared to the chain’s specifications by a manufacturer, others are made fresh in-house daily. To help ensure consistency among the made-from-scratch sauces, locations are routinely monitored by secret shoppers and a field team, which pays a visit to each unit every month. “It’s important to maintain flavor and consistency,” Scalese says.

East Coast Wing expects to break the 40-unit mark in 2015, and perhaps even have 60 units by the end of 2016.

Atomic Wings, a 35-unit fast-casual wing and boneless tender specialist based in Montclair, N.J., is growing steadily as well, according to founder and chief executive Adam Lippin. But while Lippin says the brand features a dozen proprietary wing sauces, he says he sees no reason to add sauces or flavors simply to bolster the chain’s menu selection.

“People want a certain amount of choice, and we give them that choice without being ridiculous about it,” he says.

Atomic Wings’ sauces include Thai Chili, Garlic Parmesan, Chipotle BBQ and Honey Mustard BBQ, as well as traditional mild, medium and hot sauces. Super hot sauces — Abusive, Nuclear and Suicidal — also are available, although Lippin says Medium ranks the most popular, followed by Hot and Mild.

While all of Atomic Wings’ sauces were developed in-house, most are now prepared for the chain by a manufacturer, with the exception of Abusive, Nuclear and Suicidal, which are customized in-house. In addition to offering wings in its restaurants, Atomic Wings also signed a licensing agreement with Fresh Direct. The Internet retailer merchandises one pound of branded Atomic Wings with Atomic Wings’ medium hot sauce for $8.99.

“I think the arrangement with Fresh Direct is a unique situation,” Lippin says. “And we’re getting the brand out there. It’s a very different market.”

Slim Chickens, a 17-unit fast-casual brand based in Fayetteville, Ark., also is spreading its wings, with plans to almost double its size in 2015. The Southern-flavored wing and tenders concept also offers wraps, salads, macaroni and cheese, fried sides like pickles and okra, and waffles topped with chicken tenders.

The chain, which was founded in 2003, offers a variety of wing sauces and is currently weighing the possibility of testing some LTOs. “We’re constantly looking at evolving the menu,” says director of operations Josh Austin. “We’re discussing adding some more flavors, but we don’t know which ones yet.”

Meanwhile, Slim Chickens offers seven flavors including four on the “Buffalo palette: mild, medium, hot and inferno. Also featured is Honey BBQ, Spicy BBQ, and Teriyaki.

Even though many regular customers tend to find their favorite flavors and stick with them over time, it is important for a restaurant to offer a variety of sauces, Austin says. “Some of our competitors only have one sauce,” he adds. “But our guests want to have a variety of flavors. I think that works best for us.”


Uno Chain Putting Pizza First Again

March 2, 2015

tlumacki_pizzeriauno_business375-001Pizza First ; Uno, once deemed the healthiest chain restaurant in America, ditches its nutritionist and goes back to its high-calorie roots to stand out from its rivals

By Taryn Luna Globe Correspondent
http://www.bostonglobe.com/business/2015/02/27/uno-chain-putting-pizza-first-again/Idbh31HEj5KahzIpPxZk7I/story.html
© 2015 The Boston Globe. Provided by ProQuest Information and Learning. All Rights Reserved.

Uno Pizzeria and Grill, the deep-dish pizza restaurant chain that switched years ago to a menu emphasizing pages of healthy food, is returning to its cheesy roots. Calorie counters beware.

In 2008, the West Roxbury company had happily embraced a new title, bestowed by Health magazine: healthiest restaurant chain in America.

Now Uno’s traditional fare — including its 2,300-calorie Chicago Classic individual pizza — is back near the front of the menu.

Said Dee Hadley, chief marketing officer at Uno:

“If you came into our restaurant and tried to find pizza on our menu, you would have had a hard time because we hid it in the back. It’s about going back to what made the brand great to begin with.”

Hadley and a new team of executives have spent more than $10 million to remodel dozens of restaurants and start a rebranding campaign. The goal is to emphasize Uno’s pizza heritage, a way to stand out in a waning casual dining business teeming with big competitors like Applebee’s, Chili’s, Ruby Tuesday, TGI Friday’s, and Red Robin.

Uno was founded in Chicago in 1943, serving thick-crust pizza that curved up the sides of its deep metal pan. The pizza was so unusual that the original owners, Ike Sewell and Ric Riccardo, gave away samples to entice people to try it, Chicago historian Tim Samuelson said.

It paid off, and the restaurant became wildly popular.

In 1979, a Boston restaurateur, Aaron Spencer, became the first franchisee and opened an Uno on Boylston Street. Spencer continued to expand the chain in Boston and beyond. Over time, Uno grew to more than 200 restaurants.

But the company began to distance itself from its pizza roots in the early 2000s. Like many other casual restaurant chains, it expanded the menu to appeal to as many customers as possible, said Darren Tristano, an executive vice president at the food industry research firm Technomic in Chicago.

In an increasingly health-conscious time, people weren’t flocking to Uno for pizza that often topped 1,700 calories for an individual serving. Every restaurant, from McDonald’s to Applebee’s, looked for ways to cut calories.

Around 2005, Uno began a campaign to cultivate a healthier image. The brand, which had already changed its name to Uno Chicago Grill from Pizzeria Uno, eliminated trans fats from the menu and listed ingredients and calories on touch-screen kiosks. The new menu featured pages of salads.

Uno hired a full-time nutritionist and started a nutrition advisory board, which included a cardiologist from Brigham and Women’s Hospital.

“Creating a menu with delicious health-conscious options is one of our priorities,” Frank W. Guidara, then Uno’s chief executive, said a few years into the process. In an April 2006 Boston Globe article, Guidara said sales were up almost 2 percent because of the changes.

But the menu changes turned Uno into another Applebee’s, with a broad range of dishes and no emphasis on anything, Tristano said. At one point, the menu stretched to 22 pages. The restaurant’s deep dish pizzas appeared on page 18.

“They really changed the menu and mimicked what other casual restaurants were doing,” Tristano said. “Today we’ve learned that menus are too big, and casual dining brands are too ubiquitous.”

Uno discovered that the hard way. The company faced heavy debt and declining sales during the recession, when people ate out less frequently. Uno suffered net losses of $22 million in 2009 and filed for bankruptcy protection the following year.

Now, a new team of executives is trying to move forward with more than a nod to the past. The main objective: Give customers what they want.

Hadley said that when she joined in May 2013, the company went back through consumer studies for the prior five years to understand what people liked about Uno. Not surprisingly, the answer was deep dish pizza.

“We’ve really made a commitment to send a message to our consumer base that we’re bringing back the soul of the brand that we’ve lost,” Hadley said.

The first step was to rename the restaurant Uno Pizzeria and Grill, followed by a redesign of the restaurants. About 40 of the chain’s 82 corporate-owned restaurants have been remodeled, starting last year, at a cost of $100,000 to $200,000 per eatery, Hadley said.

At an updated restaurant in Braintree, the yellow and white checkered tablecloths and Tiffany pendants that dangled from the ceiling have been replaced with wood tables and modern light fixtures. Construction crews removed a wall in the bar and took down glass partitions in the dining room for a more open-concept feel. The restaurant added a new bar top and high tables, doubling the size of the bar.

Daily specials are written on chalkboards, and simple art adorns the walls with phrases like “We owe it all to a man and his pan.”

Uno says the remodeling is starting to pay off. Updated restaurants have experienced a 10 percent sales growth, she said.

The timing isn’t ideal for a return to high-calorie pizza fare, however. The federal government will require chains to list calorie counts on their menus by the end of this year.

Some diners won’t care. But others may choose smaller portions or different dishes when they realize the high calorie count of a favorite item.

“The calories on the menu will be really an eye-opener to the consumer,” said Joan Salge Black, a professor in the nutrition program at Boston University.

While gluten-free and low-fat items haven’t disappeared from the Uno menu, the nutrition advisory board isn’t active, and Uno no longer employs a nutritionist.

“We want to make sure healthy choices are available, but if you’re looking for those things you’re not thinking about us,” Hadley said. “Strong brands have to stand for something that is different from the rest of the pack. Our heritage is deep dish pizza.”


Starting From Scratch With Better Coffee

February 25, 2015

Joan Verdon

https://global.factiva.com/du/article.aspx/?accessionno=WPATHN0020150220eb2k0005u&fcpil=en&napc=T&sa_from=&cat=a

Copyright 2015 Herald News (Woodland Park, NJ). Distributed by NewsBank, inc.

The food-services company Mascott has fed its growth by introducing other people’s restaurant and food franchise ideas to North Jersey. Now it wants to build a beverage and food concept from the ground up.

Hillside-based Mascott, which brought the first Smashburger and Noodles & Co. restaurants to Bergen and Passaic counties, is launching a coffee-shop business called Ground Connection that it hopes will become a home-grown New Jersey hit. The company opened the first Ground Connection last week at The Shops at Riverside in Hackensack and plans to open three more locations in Livingston and Jersey City in the spring and summer.

Just as Smashburger sizzled as the “better burger” trend exploded, Mascott Chief Executive Officer Scott Gillman is betting the “better coffee” movement will create demand for Ground Connection. The shops serve small-batch roasts, use specially sourced milk and flavorings, and buy its sandwich breads, salads and other foods from local suppliers.

Gillman said he is trying to bring the coffee connoisseur experience found at some of the hot big-city artisanal coffee chains such as Blue Bottle Coffee, Stumptown Coffee Roasters and Intelligentsia Coffee to the suburbs, with prices and an atmosphere friendlier to suburban shoppers.

“There’s a huge movement into specialty coffee,” Gillman said. “It’s a better quality coffee. Often it’s handpicked. It’s relationship coffee,” he said, with the roasters developing a relationship with small farms.

Rather than trying to become a franchisee for an existing artisanal coffee brand, just as he did with burgers and Smashburger, this time Gillman decided to create his own response to a trend.

“I wanted to do what I thought would sell the best, and also what would sell the best in the suburbs,” he said. Brands like Blue Bottle, while it has millennials lining up and willing to wait for single-brewed cups, probably would be too expensive and too slow-paced to succeed with suburban mall shoppers. The Ground Connection’s prices are comparable to Starbucks’, at $1.75 for an 8-ounce cup and $2.75 for a 16-ounce, but are 50 cents to 75 cents lower than other specialty coffee brands.

Gillman and Mascott are entering the coffee field at a time when the competition is heating up, according to research firm IBISWorld, which noted in a report in December that the two biggest coffee chains, Starbucks and Dunkin’ Donuts, plan to open hundreds of stores over the next five years.

While the artisanal “better” coffee chains are growing their sales by more than 20 percent a year, big players such as Starbucks are hoping to cut into those sales by introducing their own better brands. Starbucks recently rolled out the Starbucks Reserve brand in some 500 of its more than 20,000 stores worldwide, and is selling the small-batch roasts through the mail to subscribers.

Gillman has a proven track record in the food-service industry and a reputation as one of the smartest franchise operators in New Jersey. His company owns an upscale restaurant in Jersey City, Markers, and has operated dozens of franchise restaurants over the past two decades, ranging from Popeye’s Chicken and Biscuits, Cinnabon, and Seattle’s Best Coffee, to more recently Smashburger and Noodles & Co.

Mascott opened the first Smashburger in New Jersey in 2010 in Glen Ridge and built the franchise into 14 locations, before selling them back to the Smashburger Corp., which wanted the high-performing stores in its corporate portfolio.

With the Ground Connection, “I wanted to do something that took everything I learned over 25 years,” and put his own stamp on a concept, Gillman said. He hired Casey Killo, a 21-year-old who already had a half-dozen years of barista experience, to train his baristas. Steve Parker, the corporate chef for Mascott, developed a breakfast and lunch menu that included muffins and pastries baked in a separate kitchen elsewhere in the mall, as well as soups, flatbread pizzas, sandwiches served heated, and salads.

The restaurant serves coffee from Toby’s Estate, a Brooklyn small-batch roaster. The lattes and cappuccinos use milk delivered fresh from Battenkill Valley Creamery in upstate New York, because it is richer than commercially available milk. Central Bakery in Hackensack supplies the sandwich breads, Gillman said. He estimated his start-up costs to open the Riverside location at $500,000.

Curtis Nassau, of Ripco Real Estate in Lyndhurst, which brokered the Riverside lease for Mascott, said Ripco “sees terrific growth potential” for the Ground Connection. Coffee, he said, “is a well-established, yet still expanding category in New Jersey retail.”

The Ground Connection was drawing a healthy lunch crowd on Thursday, and Gillman said the first week’s sales exceeded his expectations.

But success at Riverside could increase his risk from Starbucks, said Darren Tristano, executive vice president of food-industry research firm Technomics. “It isn’t just build them where Starbucks isn’t,” Tristano said. “Once you’ve built it, that kind of gives Starbucks a reason to build one there,” he said. “You’ve proven that the demand is there, and all they would do is come in and take your business away.”

But, Tristano said, there are customers looking for coffee shops that have more of an independent feel than Starbucks. “Although Starbucks fans are very loyal, there’s some really good opportunity to even go beyond that,” he said.

Grounds for expansion; * $30.2 billion – annual U.S. coffee and snack-shop revenue, 2014; * $1.8 billion – profit, 2014; * 2.7 percent – annual growth rate, 2009-14; * 3.8 percent – projected annual growth rate, 2014-19; * 42.4 percent – market share of dominant player Starbucks; * 25.5 percent – market share of second-largest competitor, Dunkin’ Donuts; Source: IBISWorld Coffee & Snack Shops in the U.S., December 2014

 


February 18, 2015

barnies-centerpiece15-304xx3654-2448-42-0Anjali Fluker
http://www.bizjournals.com/orlando/print-edition/2015/02/13/coffee-culture-how-jonathan-smiga-s-company-plans.html
© 2015 American City Business Journals, Inc. All rights reserved.

Jonathan Smiga wasn’t sure quite what he was getting into when he took over the helm as president and CEO of the then-struggling Barnie’s Coffee & Tea Co. in 2010.

The Winter Park-based firm’s board had just fired founder Barnie “Phil” Jones Jr. after falling from 120 cafes in 15 states during the early 2000s to about 50. Sales also had declined to $5 million-$6 million from a peak of $67.3 million in 2005.

But rather than trying to compete with coffee giant Starbucks by opening new cafes in every trendy city, Smiga instead pared down the store count to just two — the original store on Park Avenue in Winter Park and one in downtown Orlando’s CityArts Factory — and put a heavier focus on branding and expanding its high-quality products that target socially and environmentally responsible consumers. The idea was to put the new Barnie’s CoffeeKitchen into the movement known as the third wave of coffee, where coffee is looked at as an artisanal culinary specialty from production to brewed cup, rather than a commodity.

The result: The company’s products now are available in grocery stores, convenience stores and specialty stores in 22 states. And 2014 was a breakout year for the new-and-improved Barnie’s, where revenue doubled and earnings were up by $2 million year-over-year.

Today, Barnie’s is in its 35th year and expects to see sales back up to about $20 million this year, up 50-80 percent from 2014.

“We’re breaking out from being that regional coffee shop in town,” Smiga told Orlando Business Journal in an exclusive interview. “We bring the nimbleness of a third wave of coffee company — from production to our talent to our intellectual property — married with a mature company which allows for us to take our business to a national scale.”

No pain, no gain

The first year Smiga was top executive at Barnie’s wasn’t easy. Stores had to shutter, employees were let go and revenue dropped by one-third.

And things appeared bleak when stores started to close because of what had happened in Barnie’s history: The company in 2006 sold off 56 shops mostly in malls, cutting sales nearly in half.

But Smiga said the Barnie’s team hunkered down and focused on building its intellectual property, brand and figuring out the best way to shed its former reputation. Rather than being known as the local Starbucks competitor, the firm wanted a more global reach by making its products the first thing people think of when they hear Barnie’s.

“We stayed in that zone a couple of years, but we were not dormant,” Smiga said. “We were figuring out the puzzle pieces.”

It all paid off, as last year the firm achieved positive cash flow without venture funding.

Much of the growth came from signing deals to sell its packaged products in large retail chains. And last year, Barnie’s relaunched its website to capitalize on the growing e-commerce industry with online sales, which today represents about 10 percent of the company’s sales. It has been known to draw buyers fro m as far away as Germany.

Java culture

Along with bringing an analytical look at the coffee business, Smiga also brought a change to the culture at Barnie’s CoffeeKitchen, according to Senior Vice President of Sales and Marketing Sonya Hardy, who has worked for the company for more than 20 years.

Barnie’s originated as a company that celebrated the purity of international coffees, but got away from that as it ventured into growing its store count.

“Smiga really got us to refocus on the coffee and getting us into the third wave of coffee movement,” Hardy said. “Then we were able to work that into the guest experience.”

Reining in growth

Now that the company is back on a growth trajectory, the difficult part is not falling into that same trap of trying to grow by opening a slew of new stores, Smiga said.

Though Barnie’s is looking at potential new stores in strategic areas in the Southeast, Midwest and Texas, Smiga said the focus still will be on Barnie’s coffee and tea products. The firm will continue to create new Barnie’s-branded packaged products, including a new cold-brewed bottled drink expected to hit the market later this year.

“We’re next going to focus internally on strategy in the small business sense,” he said. “When you’re underwater, you only want to get to the surface. You’re focused on surviving. But once you get to the surface, you can start making executive decisions.”

However, there’s still room to add stores, according to Darren Tristano, executive vice president of food industry research firm Technomic Inc.

Making a mark in the highly competitive coffee house industry won’t be easy, but it is possible, he said. About 27,000 coffee houses in the U.S. generated $23.5 billion in sales last year, mostly dominated by mega-chain Starbucks and then Dunkin’ Donuts, Technomic reported. “Barnie’s focus has been more on retail, and they’ve been doing well with the restaurants or stores they currently have,” Tristano said. “They should have opportunities on the retail side as a smaller brand to continue to expand as profitability rises.”

Jonathan Smiga

Title: president and CEO, Barnie’s CoffeeKitchen

Age: 57

Background: Grew up in the food business in Sarasota and Palm Beach; was co-director of education at the Culinary Institute of America in Hyde Park, N.Y.; recruited by Darden Restaurants Inc. to oversee a turnaround for Olive Garden in the mid-1990s; was general manager of a Robert Mondavi Winery-oriented attraction at the 55-acre Disney’s California Adventure theme park in Disneyland Resort

Education: MBA, New York University; master’s in hotel administration, Cornell University

Projected 2015 revenue: $20 million

Employees: 60

Contact: barniescoffeekitchen.com

Barnie’s CoffeeKitchen cafes are no longer the only place to get a cup of your favorite java or tea. Here’s where else you can find your favorite flavors and brews:

On the web: Order any of Barnie’s products on the company’s website at http://bizj.us/1bp5gd or search for coffee and related products on Amazon.com.

In stores: Barnie’s can be found on the shelves in supermarkets and retail locations, including Publix Super Markets, Winn-Dixie, Sweetbay, H-E-B Grocery, Food Lion, Hannaford Supermarkets and Harveys.

In cafes: Two full-service cafes still exist, 118 S. Park Ave. in Winter Park and 29 S. Orange Ave. in downtown Orlando’s CityArts Factory.

Dr. Phillips Center for the Performing Arts: Two Barnie’s coffee bars can be found in downtown Orlando’s arts center.

New products

Some original products created by Barnie’s CoffeeKitchen:

CupUp: A single-cup brewing machine compatible capsule that holds 30 percent more coffee than other leading brands. Features a patent-pending channel design to create a particular extraction of flavor and aroma. Available in several of Barnie’s most popular flavors.

Brewsticks: Single-serve liquid instant coffee that comes in portable packets. Features 100 percent cold-brewed Arabica coffee soluble in hot, iced or bottled water.

Publix Premium Ice Cream: Publix-branded ice cream in Barnie’s CoffeeKitchen flavors, including Barnie’s Coffee and Santa’s White Christmas

Publix Premium Espresso Chip Frozen Yogurt: Barnie’s Santa’s White Christmas coffee-flavored frozen yogurt with chocolate espresso chips

Publix Premium Indulgent Yogurt: Barnie’s Santa’s White Christmas coffee-flavored yogurt with mocha chips

Sources: Barnie’s CoffeeKitchen, Publix Super Markets Inc.

By the numbers

Stats on Barnie’s CoffeeKitchen:

120: Total U.S. stores at its peak

60: Employees

22: States where you can buy its products in convenience, grocery and specialty stores

4: Barnie’s ice cream flavors you can get at Publix supermarkets

2: Remaining stores under the firm’s new business strategy


Hello Bistro Makes Move Into Suburbs

February 11, 2015

pictureTORY N. PARRISH
http://triblive.com/news/allegheny/7668597-74/bistro-casual-fast#axzz3RMiDidRy
Copyright 2015, Tribune-Review Publishing Co., All Rights Reserved.

Traditional family-restaurant chain Eat’n Park is expanding its foray into fast-casual dining with its first Hello Bistro location outside of Pittsburgh.

The company opened bistro locations in Oakland, South Side and Downtown since 2012 and this summer will open one in McCandless Crossing shopping center, said Kevin O’Connell, senior vice president of marketing for Homestead-based Eat’n Park Hospitality Group.

Industry experts say many restaurants chains are seeking to break into the growing fast-casual market — restaurants that typically do not provide full table service but offer a higher-level dining experience than fast-food restaurants.

The fast-casual market segment led restaurant industry growth in 2013, growing 11.3 percent, according to a 2014 report by Technomic Inc., a Chicago restaurant research firm. Meal prices typically range between $9 and $15, the firm said.

Hello Bistro has a salad bar with 55 toppings, but employees prepare the salads according to customer requests, similar to food-ordering at fast-casual restaurants Chipotle and Qdoba Mexican Grill.

The bistro will offer pre-made salads, hamburgers and french fries, which employees will take to seated diners’ tables, O’Connell said.

Eat’n Park, founded as a car hop in 1949, has 70 family-dining restaurants in Pennsylvania, Ohio and West Virginia. Its bistro concept is designed to go into urban areas that can’t accommodate a full-service restaurant, O’Connell said.

McCandless Crossing, a $100 million development off McKnight Road, has a movie theater, banks, hotels, offices, townhouses, and other restaurants. Panera Broad opened there in January, its first Pittsburgh-area site with a drive-through. A Trader Joe’s grocery store is slated to open in March.

Eat’n Park’s market research found that millennials have grown up with Subway, Starbucks and even their mothers catering to their specialized food tastes, O’Connell said: “They want to have some control over what (they’re) eating.”

Growth opportunities for family-style dining have been limited because the segment is mature and has declined for more than a decade, said Darren Tristano, executive vice president at Technomic.

“The best opportunity is to create a fast-casual concept built off of the pillars of either food, service or the history of the brand,” Tristano said.

IHOP and Denny’s recently entered the fast-casual segment with IHOP Express and Denny’s Fresh Express.

Eat’n Park included popular menu items — hamburgers and the salad bar — for its bistro, O’Connell said.

But its broad menu may create challenges, Tristano said.

“To the extent they can leverage products that have been successful in full-service, it creates a more convenient and affordable dining experience,” he said.


Asian Cuisine: The Fastest Growing Food in the World

February 10, 2015

Roberto A. Ferdman Washington Post
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/03/the-fastest-growing-food-in-the-world/
Copyright (c) 2015 The Hamilton Spectator.

WASHINGTON — In a matter of only 15 years, Asian cuisine has gone from being a niche food obsession to one of the most popular around the world.imrs

Global sales at Asian fast-food restaurants have grown by nearly 500 per cent since 1999, the fastest growth seen in any fast-food category around the world, according to data from market research firm Euromonitor. Fast food here is defined as any restaurant that gets less than half its sales from sit-down meals.

Asian food has grown by roughly the same amount as the next four fast-food categories – Middle Eastern, Chicken, Pizza, and Latin – combined.

The world’s fast growing appetite for Asian food has a lot to do with both population growth and economic development on the continent. Demand has soared in China, where GDP per capita has increased more than ten fold since 2000, and also in Vietnam, Thailand and Malaysia.

Asian food has also benefited from the emigration of Asians to other parts of the world, where people then fall in love with cuisines they might not have encountered otherwise. The United States, where the number of Asian immigrants has grown immensely, is perhaps the best example. Americans, especially younger ones, are deeply enamoured with Asian food (and hot sauce, for that matter).

“They’re looking for bolder and spicier flavours, and something different,” Darren Tristano, executive vice-president of Technomic, a restaurant-research firm, told QSR Magazine.

Sales at Asian fast-food restaurants have grown by 135 per cent since 1999, well outpacing the growth seen in any other segment.

Fast-food sales only tell part of the story, but they’re arguably one of the best indicators of global food trends.

Asian food in particular is unique in that the vast majority of fast-food restaurants that serve cuisine from the region, whether it’s Chinese, Thai, Vietnamese or Malaysian, aren’t chains but independent, small restaurants. Globally, only about 10 per cent of sales at Asian fast-food restaurants come from chains. The remaining 90 per cent (which amounts to more than $135 billion annually) comes from mom and pop restaurants.

In the United States, the story is a bit different, but no less striking. Roughly half of all sales at Asian fast-food restaurants came from chains in 2014. The viability of that model points to a certain level of demand. U.S. chains like Panda Express, which reached nearly $2 billion in sales last year, have proven that there’s a mass-market interest in Chinese food. Even Chipotle has responded to the demand with Shophouse, a fast-casual Thai noodle restaurant.

Asian food is so coveted that even restaurants that are centred on cuisines that aren’t remotely Asian – such as burgers, fried chicken and sandwiches – are increasingly offering Asian-inspired options. There are at least 550 items sold at fast-food restaurants around the United States with either Asian names or an overt Asian influence, according to market research firm Mintel.


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