Brisket Channel proves to be ultimate reality TV

August 27, 2014

Article by: David Phelps, Star Tribune

© 2014 Star Tribune

Remember the Brisket Channel on Duluth TV?

It was on for 13 hours and five minutes over the Memorial Day weekend.

It turned out to be quite a hit, once reruns made it to YouTube. Nearly 400,000 viewers tuned into the Internet version of the smoked brisket marathon developed for Arby’s by the Minneapolis ad agency Fallon.

So popular was the website that each unique visitor spent an average of 38 minutes on the site, watching a brisket slow cook in the same manner that Arby’s prepares brisket for its customers. It also helped that visitors had a chance to win one of $20,000 in prizes that included a 10-gallon hat, lasso and beef-scented candles.

“We were blown away by that,” said Matt Heath, Fallon creative director, of the viewership.

And the client was pleased. “Thirty-eight minutes is longer than a lot of TV shows,” said Jeff Baker, Arby’s senior brand experience director. “It was a great idea based on simplicity.”

Besides setting a Guinness record for the longest TV commercial, the brisket show and limited brisket sandwich offer set the stage for Arby’s new “we have the meats” advertising campaign that Fallon launched earlier this month.

Results for the fledging ad campaign so far are inconclusive. But Rocky Novak, Fallon’s managing director, said: “We’re seeing a lot of social media love.” Arby’s said it does not release sales figures. But when it first made the brisket sandwich limited-time-offer available in October of 2013, “we declared it the most successful [limited-time offer] in the brand’s 50-year history,’’ said a spokesman Wednesday.

Gone as Arby’s pitchman is Bo Dietl, the former New York City police detective who was the face and voice of Arby’s for nearly two years. To quote Dietl from a commercial for Arby’s fish sandwich, “Really?” Yeah, really.

In fact, the new Arby’s commercials are faceless. The only human element seen by viewers is of a person from the shoulders down wearing a chef’s jacket. A roast beef or turkey or corned beef sandwich is the star of the commercial.

“The LSR [limited service restaurant or fast food] industry is not hyper-focused on food. There are a lot of entertainment factors,” said Heath. “We wanted to see how close we could get to the food. We didn’t want to put a face in there. It’s about the finished product.”

Among the tag lines used for the new set of Arby’s commercials are “this is meatcraft,” “fear not the meats,” “meats crafted with a heavy hand” and “it will change you.”

“We feel like we have an incredible heritage of meats and that presenting them in a simple way was the best way,” Baker said in an interview earlier this week.

Brand overhaul

Arby’s new advertising campaign will be accompanied by a new branding campaign that the Atlanta-based company announced in June. The branding effort includes remodeled exteriors, revitalized interiors and staff training.

Based on some consumer testing, Arby’s message and image could use a little retooling.

According to the food industry consulting firm Technomic, sales and market share at Arby’s have declined in each of the last two years, placing the roast beef king a distant second behind Subway in the non-hamburger sandwich sector and ahead of a hard-charging Jimmy John’s.

“Arby’s is considered to be unique because its about roast beef, not hamburgers, not chicken. We’re talking about an older, nostalgic brand,” said Darren Tristano, executive vice president for Chicago-based Technomic. “Clearly there are some advertising opportunities and some innovative opportunities.”

Novak said the new Arby’s advertising campaign is all about what goes between a bun or two pieces of bread in the Arby’s kitchen.

“The main takeaway first and foremost is that this is about the meat that is put in the sandwich,” Novak said.

Tristano said Arby’s scores well with consumers on a number of metrics, including service, decor and “craveability.” But it doesn’t score so well on prices, healthy options and “advertising that makes me hungry.”

“By focusing on what differentiates you, that creates memorable and creative advertising,” Tristano said. “Freshness gives you a stronger feel of healthiness.”

And credit for a new Arby’s feel may come down to a Texas-smoked brisket that took 13 hours to cook and five minutes to carve.


In breakfast wars

August 7, 2014

Taco Bells boldmarketing pays off with big sales

Maureen Morrison

(c) 2014 Crain Communications, Inc. All rights reserved.

IS TACO BELL’S BREAKFAST giving McDonald’s a wake-up call?

The Yum chain’s launch in late March went directly after McDonald’s with marketing that aggressively framed the Golden Arches as hopelessly outdated, and trumpeted Taco Bell as the next generation of fast-food breakfast. Its cheeky TV ads used real-life Ronald McDonalds proclaiming their love for Taco Bell’s morning fare.

The first clue to whether this audacious play is paying off came during Yum’s second-quarter earnings. Yum Brands CEO David Novak said breakfast comprised around 7% of sales in the quarter and that the company expects it will add anywhere from $70,000 to $120,000 in annual sales per restaurant.

Projecting sales using those numbers, Taco Bell could stand to reap an estimated $375 million to $641.5 million in first-year sales from breakfast.

“McDonald’s does more breakfast sales in the U.S. than Taco Bell does total sales globally,” said Darren Tristano, exec VP at Technomic. Even so, “McDonald’s has to pay attention,” he said.


7-Eleven Launches New Doritos Loaded

July 18, 2014

By 10 a.m. Wednesday, the day of its launch, 7-Eleven’s brand new Doritos Loaded product had at least one Crystal Lake fan.

Karen Black-Vetter went into 7-Eleven, 1024 McHenry Ave., Crystal Lake, intending to leave with the usual snacks. But then, she saw the bold red signs advertising Doritos Loaded.

At $1.99 and 360 calories for a pack of four, Doritos Loaded are warm triangular pan-fried snacks, filled with melted cheese and encrusted with the signature nacho cheese flavor.

“We read that sign, and I said, ‘We have to try that,’” Black-Vetter said, sitting in the car with out-of-town friend Leslie Phiscator.

7-Eleven Inc. on Tuesday announced the launch of the new product, which can be found exclusively at 5,500 7-Eleven stores nationwide as of Wednesday, corporate spokeswoman Margaret Chabris said.

The snack food comes hand-in-hand with a new tropical Mountain Dew flavor called Solar Flare.

While its appeal is meant to hit all “on-the-go folks,” Chabris said Doritos Loaded is expected to be especially popular among younger Americans who prefer snacking to full meals – specifically, millennials.

“We have found that more and more people are not sitting down for three square meals a day, but they want something filling and affordable,” she said, adding the information stems from corporate studies. “It seems like, particularly, millennials snack throughout the day, so this is a perfect snack item for them.”

According to a 2012 report from the NDP Group, a market research company that tracks consumer trends, more than half of all Americans – 53 percent – snack two to three times a day.

Darren Tristano, executive vice president of food industry consulting company Technomics Inc., said annual studies done by Technomics also have found today’s America to be more snack-inclined than years prior.

“The snacking trend we’ve seen … is consumers are grazing more now, which means they’re having less to eat with greater frequency,” Tristano said. “Instead of three square meals, we’ve started to see more late-night snacking … and snacking late-morning and mid-afternoon.”

As far as snacks go, however, a dietitian at Centegra Hospital – Woodstock and McHenry said 7-Eleven’s newest product probably isn’t the best choice as it’s heavy in sodium, containing 1,070 mg.

“Anything that is providing half a day’s worth of sodium and it’s just a snack,” Susannah Baldock said, “that would be the first sign to look at something healthier.”

Those who indulge in Doritos Loaded could be swayed simply because of brand familiarity, though.

Tristano said food trends are pointing toward the use of big-name brands to increase revenue opportunities.

“One of the trends we’ve seen has been the opportunity for branded food services to take very leverageable brands like Doritos and other snacks, and build them into food service products in restaurants, and now we’re seeing it more out of the convenience stores.”

Based on previous new-product rollouts, however, Tristano said the buzz will likely quiet down in time.

“Most products that 7-Eleven introduces tend to be on a short-term basis,” he explained. “They’ll probably see how it registers with customers.”

At the Crystal Lake store, owner and franchisee Katen Patel was optimistic about the future of Doritos Loaded.

“I think it targets our target customer; I think kids are going to love it,” Patel said, sporting an official Doritos Loaded T-shirt. “If it does what Doritos does for our chips brand, I think it’ll do really, really well.”

It only took one bite each before Black-Vetter and her friend, Phiscator, were nodding in approval to one another in the car.

“Oh yeah,” Black-Vetter said. “I’ll get this again.”


Franchise Chatter Names Emerging New Food Segment The Hottest Franchise Concept of 2014

May 22, 2014

By Brian Bixler
Franchise Chatter

During the last few years, a band of start-ups has been racing to become what some have called “the Chipotle of pizza,” seizing upon the fast-casual custom concept and mimicking the company’s model in hopes that they can do for pizza what Chipotle did for the burrito. With major names in franchising recognizing the potential in the fast-casual custom pizza segment and backing some of the brands financially, potential franchisees are seeing dollar signs in what has evolved into the hottest franchise concept of 2014—one that looks to have staying power, rather than being a passing fad.

That’s the conclusion drawn in a report from Franchise Chatter, an online information resource for franchisees. Published on franchisechatter.com, the new report looks at the latest developments and growth within the fast-casual custom pizza segment, which has been drawing increasing interest among investors as new brands look toward explosive expansion, spreading the concept across the country.

“There are now dozens of brands in this segment, which could become as popular as frozen yogurt franchises were a few years ago,” said Ambrosio Cantada, founder of Franchise Chatter. “As these companies gain market share, we know potential franchisees will want to read about the future of this segment of the pizza category, and which brands may end up on top. “

Since 2008, a growing number of companies has moved into the custom pizza segment by establishing fast-casual restaurants in which customers choose their ingredients—including the dough, sauce and toppings—along a service line. With pizzas being cooked in high-temperature ovens, the concept combines speed and customization that customers are looking for today, with a variety of healthy ingredients.

So many new brands are entering the market with none of them dominating yet that potential franchisees face the dilemma of striking while the iron’s hot (or, in this case, the oven) or sitting on the sidelines to see which brand will best capture market share.

Some brands are posting impressive annual sales volumes as high as $1.8 million at individual units, according to Technomic Executive Vice President Darren Tristano, who recently completed the Fast-Casual Pizza Cluster Report for the market research firm.

Even though Technomic’s year-end 2013 figures show Pie Five Pizza Co., Uncle Maddio’s and Your Pie leading some competitors in the number of units, each with 18, the landscape is about to change.

“I think right now the two brands that are at the forefront would be PizzaRev because of the investment of Buffalo Wild Wings and Blaze Pizza, which is expanding rapidly,” Tristano says. “They both have strong management and overall knowledge of the consumer market.”

The speed with which the dueling companies bring their concepts to additional markets will be key to determining their success, he added. Tristano expects the custom pizza segment to be especially popular with the noon crowd.

“Fast-casual pizza has emerged out of a white space that’s typically lunch time,” he said, adding that brands that offer comfortable environments and alcoholic beverages will also be able to pick up dinner and nighttime customers as well.

“We expect to see a lot of opportunity for growth in the next five to eight years,” Tristano said. “It will likely attract more franchisees and other investors to come into the market as it’s still in the very early stage.”

The Franchise Chatter report includes updates on specific brands it has identified for having the greatest growth potential over the next five years.

For more information, click on the Hottest Franchise Concept of 2014 banner at franchisechatter.com.

Brian Bixler is a freelance journalist and blogger who writes for several business-oriented websites, including Franchise Chatter, a membership site devoted to reviewing franchise earnings claims. By talking to executives of leading brands as well as some of the most successful franchisees across the country, Franchise Chatter reports on growing brands as well as those that might be struggling. The website also examines the profit potential of all the major brands with its FDD Talk feature.


Subway Owners Take Stake in BurgerFuel

May 14, 2014

subwaylogopromoThe “better burger” niche is already crowded with domestic startups, but a new player from New Zealand, BurgerFuel, soon might break into the competition and onto the fast track to growth, helped by a partnership with Subway founders Fred DeLuca and Peter Buck.

According the The New York Times, DeLuca and Buck acquired a 10-percent stake in BurgerFuel in January through their investment company, Franchise Brands, which supports small and midsize concepts. BurgerFuel reportedly hopes to leverage this strategic alliance into expansion throughout the United States by selling franchises to operators of Subway, which is 100-percent franchised and has more than 25,500 restaurants in the United States.

Officials from Milford, Conn.-based Subway did not respond to inquiries for comment as of press time.

Darren Tristano, executive vice president of Chicago-based research firm Technomic Inc., noted that Subway’s growth in extremely nontraditional spaces — such as a church, a Goodwill training center and auto showrooms, to name a few recent openings — show franchisees’ willingness and demand to open restaurants.

Fellow industry expert Dennis Lombardi, executive vice president of Columbus, Ohio-based WD Partners, added that those Subway franchisees might be looking to open more units but, depending on where they are located, might not have the chance to grow as fast with more Subway locations as they could with a new concept, like BurgerFuel.

“It may not be about the 25,000-plus Subways [in the United States], but more about a franchisee’s home trade area, where it’s hard to expand your own franchise business and almost have to wait for somebody in the area to sell,” Lombardi said. “This gives the franchisees the opportunity to have a growth vehicle, and typically these kinds of new brands have a higher revenue potential relative to Subway’s.”

With BurgerFuel as a possible growth vehicle, Subway might have a way to enable its franchisees’ growth in more traditional spaces or make inroads with a slightly different customer base, Tristano said. He added that Subway’s tack of looking for a concept outside its segment — similar to Chipotle’s interests in ShopHouse Southeast Asian Kitchen and Pizzeria Locale, or Buffalo Wild Wings’ investment in PizzaRev — is likely the better option than taking its current offering and trying a more upscale take on it, as Taco Bell plans to do with U.S. Taco Co. and Urban Taproom.

“Subway is looking for growth potential, and it probably has more opportunities outside of the sandwich segment than within sandwich,” Tristano said. “They should look at something that could work in a co-branded way, like maybe with desserts. They still have so many franchisees that they could really leverage that base.”

Lombardi added that BurgerFuel’s possible entry to the United States “is not exactly coming in at the early stage of the better-burger trend.” In addition to muscling into a crowded segment, BurgerFuel would present completely new operations models or real estate needs to Subway franchisees, but “that’s not an overwhelming issue” to the better-performing operators in the system, he said.

“Subway is doing something nice for its franchisees by making this concept available to them,” Lombardi said. “But you’re not going to give a marginal operator the ability to expand into a second concept. If they want to grow, they’ll have to show Subway they are good at what they do.”

Both experts agreed that a possible expansion of BurgerFuel in the United States could be an intelligent long-term plan for Subway, and neither saw it as an indication that Subway’s growth could be slowing down in the United States.

“If you think about Subway’s royalty stream coming into its two owners, it’s crazy; you probably wouldn’t need to do anything else,” Tristano said. “But progressive brands always need to think about where the future is. There may be a day when people don’t believe Subway is the healthiest restaurant in the world, so Subway would need some bench strength and a way to hedge a little.”

Lombardi said that day is not really close to arriving.

“There are no real negatives in this, and I’m not surprised it’s happening,” he said. “Subway is still the golden goose for them. I just interpret this as another growth angle, an ‘and,’ not an ‘or.’”

As of May 13, Subway had 41,800 restaurants in 106 countries.


Does Taco Bell’s Fast-Casual Entry Have a Chance?

April 24, 2014

Taco Bell is following the lead of its YUM! sister brand KFC, which entered the fast-casual market last year. KFC Eleven features hand-crafted food—flatbreads, rice bowls and KFC Boneless Original Recipe Chicken—in a more contemporary environment.

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Taco Bell’s new fast-casual concept, U.S. Taco Co. and Urban Taproom, provides the chain an opportunity to move into fast casual while maintaining its identity and value positioning with existing customers in the quick-service segment. Many brands today are trying to shift toward a more upscale menu, food and atmosphere positioning, but this strategy can confuse loyal customers and make it difficult to stay true to the brand identity. Taco Bell’s strategy makes sense and supports its goal to increase sales from $7 to $14 billion in the U.S. market.

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So what are the challenges this new brand faces?

Competition: In addition to a strong independent Mexican restaurant market, today’s Mexican grill segment features strong category leaders like Chipotle Mexican Grill, Qdoba Mexican Grill and Moe’s Southwest Grill. And there are more than 50 other fast-casual chains competing for share of stomach, many of which are growing aggressively.

Also within the landscape are successful taco shops that are growing from regional roots in California and Texas like Fuzzy’s Taco Shop, Torchy’s Tacos and Chronic Tacos. The 2013 limited-service Mexican category totaled $18 billion in sales with more than 18,000 restaurants. With so many competitors in the space, finding room for U.S. Taco Co. will be a challenge for Taco Bell’s young “intrepreneurial” team.

Price: With price points per-person pegged at $11.50‒$12, many economically challenged consumers may not be able to afford to eat at U.S. Taco Co. on a frequent basis. Average fast-casual price points are still south of $10. And with average prices of fast-casual burritos in the $6‒$7 range, consumers will continue to see pound-for-pound value at Mexican grill concepts. Recent Technomic research with consumers indicated that the optimal price at fast casual for lunch was $7.60, with a high price threshold of about $10. At dinner, consumers indicated that $9 was the optimal price, with $12.50 providing the upper threshold limit. As a result, consumers will likely see this U.S. Taco Co. as a place to go for dinner, as its lunch prices are too high for many consumers on weekday occasions.

Menu: Many American consumers have come to expect high levels of “authenticity” around both Mexican and Southwest dishes, sides and beverages. The menu at U.S. Taco Co. will feature the following tacos:

  • The One Percenter, featuring fresh lobster in garlic butter with red cabbage slaw and pico de gallo on crispy fry bread.
  • The “Brotherly Love,” a nod to the Philly Cheesesteak, with carne asada steak, grilled peppers and onions, roasted poblano queso and cotija cheese (rather than Cheez Whiz), and fresh cilantro in a flour tortilla.
  • The “Winner Winner,” which features Southern-style fried chicken breast with “SOB,” or “South of the Border” gravy, roasted corn pico de gallo with fresh jalapenos, and fresh cilantro in a flour tortilla.

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And on the side, guests can get “papas fritas,” which resemble steak fries, coated with habanero dust and served with housemade dipping sauces such as ghost chile ketchup or roasted poblano crema. Guests can also order their fries loaded with taco ingredients sans tortilla as a “secret menu” option.

Taking a page out of Red Robin’s play book, the menu will include shakes spiked with beer, and the brand will eventually offer tap, can and bottled craft beer.

So how will consumers react?

Patience and education will be important to getting consumers to consider an even more Americanized version of a traditional, authentic Mexican taco. Replacing the American burger with a taco served with fries and a shake will be a new behavior for many Americans. Although this new offering will likely have great appeal for Millennial consumers age 21‒36, Gen X and Boomers will likely continue to lean toward more familiar and traditional meals. As innovation and thinking outside the box (or bun in this case) is essential for filling white space, this new format may be a bit ahead of its time.


Expect New Dishes at Your Favorite Casual-Dining Spots

April 21, 2014

getimage.aspx“The food, it is kind of incidental to everything else,” said Myers, dining recently in the cafe at Universal CityWalk.

Hard Rock is seeking to change that attitude with a major menu makeover, one of many that casual-dining chains are doing to keep up in a competitive industry. Olive Garden, Smokey Bones and Tony Roma’s are among those trying to offer a better bill of fare to woo diners with increasingly sophisticated palates.

“People are more food savvy because of social networking,” Hard Rock’s executive chef Russell Booth said. “They’re expecting great food with flavor, with punch.”

A musical museum of sorts, Hard Rock is themed to the extreme. But the company said it wants to make what diners taste as much a reason to visit as what they see and hear. So it conducted a soup-to-nuts analysis that spanned 15 months and solicited opinions from more than 3,000 customers.

Thirty dishes and drinks are new. Almost as many other items have different ingredients and preparation methods.

Results range from a new chicken arugula salad to adult beverages with trendy additions such as bacon and salted caramel. Hard Rock replaced queso on its nachos with two layers of mixed cheeses and added toppings such as smoked beef brisket. Other changes are more subtle, such as new brioche burger buns to replace potato ones.

Still, Hard Rock hasn’t strayed too far from its roots: heaping portions of typical casual-dining chow.

Tony Roma’s took a more radical approach with a rebranding experiment in Orlando. It essentially gutted its old menu, keeping its signature ribs but switching out almost everything else for trendier fare such as pulled pork tacos and fish with couscous.

That’s risky, however, and unusual, experts say.

“It’s about balancing what is familiar — old favorites, signature items, with items that are new,” said Darren Tristano, executive vice president of restaurant-research firm Technomic.

Experts say casual-dining restaurants are reinventing menus to fight a trend of declining traffic and sales. But other types of restaurants are making changes, too. Atlanta-based Chick-fil-A recently introduced grilled-chicken dishes marinated in sea salt, lemon, garlic and herbs and cooked on a new kind of grill meant to create the flavor of a backyard barbecue.

Such changes aren’t always a recipe for success.

In late 2012, Red Lobster added more-affordable meals and many others that didn’t feature fish. Sales at the seafood chain owned by Orlando-based Darden Restaurants have declined sharply since, diving 8.7 percent in its most recent quarter.

At Olive Garden, also owned by Darden, one lesson learned from Red Lobster is that “you can’t forget that there’s something for everyone on this menu,” said Jay Spenchian, the Italian chain’s executive vice president of marketing. “You have to have those messages to different audiences going simultaneously.”

Olive Garden recently debuted more than 20 new tapas-style dishes meant to attract younger consumers. Grilled chicken with broth and vegetables appears on the lighter-fare section aimed at health-conscious diners. Several $9.99 pasta and sauce combinations are meant to appeal to customers on a budget.

To lure people with more adventurous tastes, Olive Garden added dishes with pesto and spicy diavolo sauces, which the chain had previously shied away from for fear of alienating core customers.

“We can’t be afraid when we put something on the menu [that] some people aren’t going to like it,” Spenchian said. “Before, we were a little enamored with trying to get everyone to like something a little bit.”

One of Olive Garden’s competitors, Tampa-based Carrabba’s Italian Grill, also recently added 15 new dishes for less than $15.

At Orlando-based Smokey Bones, Chief Executive Officer Chris Artinian said the goal of recent menu changes is to emphasize freshness. More sides and sauces are homemade. The restaurants are buying brisket with more fat and smoking it longer — 14 hours — for more tender meat and richer flavor. New items, meanwhile, include fried pickles, additional chicken-wing sauces and a margarita with Pop Rocks on the rim.

At the restaurants, some foods have disappeared — and not just to make room for new ones.

The overall number of items at Tony Roma’s dropped from 62 to 51 after the chain already dropped about 30 others a year and a half ago. Smokey Bones and Hard Rock both ended up with slightly fewer items than before.

Spenchian said Olive Garden’s menu is about the same size but a few things could be deleted in the near future to make operations less complex.

That, too, is a common theme in the industry now.

At Smokey Bones, Artinian said, part of the revamp was “ensuring our menu has enough variety but also small enough that we do everything great.”


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