Chain’s 2-Minute Pies Make Pizza a Faster-Food

May 20, 2013

For those willing to stop by his new fast-casual pizza eateries instead of having it delivered, Carlsbad-based restaurateur James Markham says he’s got “30 minutes or less” beat by a mile. His operating recipe calls for made-to-order pies in about two minutes.

Following a prior debut at the MGM Grand Hotel & Casino in Las Vegas, Markham’s Project Pie recently opened in Hillcrest, with more openings to follow later this year in Boulder, Colo., Washington, D.C., and New York City, among other markets.

The restaurants feature the company’s “artisanal,” made-to-order pizzas, with an array of meat, cheese and vegetable toppings from which customers can choose – similar to the way they would pick their burrito ingredients at a place like Chipotle Mexican Grill, as they walk along a service line.

Hot, Hot, Hot

Once toppings are added, the pizza heads to a custom-designed, 800-degree oven, where it is baked in less than two minutes, Markham said. The restaurants have a one-size, one-price policy – approximately $7.50 for a thin-crust, 12-inch pie with unlimited toppings – and also serve side items such as salads.

“What Chipotle does for burritos, that’s what we set out to do with this concept,” said Markham, a 20-year restaurant industry veteran who started out among the first franchisees of Cold Stone Creamery and later founded several popular pizza concepts over the years.

The 2,400-square-foot Hillcrest restaurant is at Fourth and University avenues, in the former site of Sambuca Italian Bistro, and designed in a style that Markham calls “vintage industrial.” Each location will employ approximately 25 people, and he said he is scouting more sites in San Diego County, including the North County base where he once started and later sold a five-restaurant chain called Knockout Pizza several years ago.

Based on the performance of the Las Vegas location, he said the new restaurants are on track to make approximately $1.4 million in sales per location in their first year. While the first 10 to 15 will be company owned, Markham’s firm has applied to franchise the concept in Michigan and other states, and has already lined up an operator for 25 restaurants in the Philippines.

The Goals: Fresh and Fast

Markham said his goals with the new eateries included offering time-strapped customers a healthier, faster alternative to restaurant chain pizza, especially during the workday. He also aimed for a fresher alternative to restaurants that serve pizza by the slice, but often after reheating pre-made pies.

“If you go into a place wanting a slice, and they don’t have exactly what you wanted, you end up picking something else you maybe didn’t want so much,” Markham said. “I wanted to have people avoid that situation, so they can order it exactly as they want it.”

Darren Tristano, executive vice president of restaurant industry consulting firm Technomic Inc., said the Carlsbad-based chain is among several pizza purveyors now involved in the upscaling of a traditional fast-food item – similar to the “better burger” trend of the past few years that has spawned several national competitors – with an eye toward fresher, healthier ingredients.

“It’s happening all over the country, and it’s the next big thing in that segment,” Tristano said.

Combining speed and quality has generally been a challenge in the Italian food category, Tristano noted, but evolving cooking technologies are increasingly allowing pizza to be served in fast-casual restaurant settings.

Drawing the Dinner Crowd?

He said the concept generally works best for the lunch crowd, and long-term challenges for this particular industry segment will include expanding its reach to the dinner hour, and to families and groups that still prefer delivery of large pies as a cost-efficient meal option.

Markham’s journey into the realm of custom-made pizzas has been busy but also somewhat restless over the past five years. After living for about a year in China, where he opened and operated a chain in Shanghai called New York Style Pizza, he returned to the U.S. in 2008 and started MOD Pizza – the letters stand for “made on demand” with several locations in the Seattle area. That venture was co-founded with Ally and Scott Svenson, founders of Seattle Coffee Co.

Markham eventually left MOD to design another fast-casual pizza concept, called Pieology, opening the first location in Fullerton in 2011. He sold his stake in that venture in early 2012, in order to develop Project Pie.

In his current company, he is joined by a team of experienced advisers and investors, including restaurant entrepreneur and investor Joel Tucker. Markham said he has made moves over the years – including breaking with established partners – in order to hone his vision of the fast-serve artisan pizza.

The process has been one of continuous trial and error – testing out numerous toppings, dough ingredients and cooking methods. “Project Pie is a culmination of learning from my own concepts,” he said.

Leave a Comment » | Fast Casual, Franchise Activity, Growth, Pizza | Permalink
Posted by bnoone

Hooters is chasing women — as customers

May 15, 2013

pictureHooters has always been known for tank top-wearing “girls.” Now, faced with declining sales, it’s wooing women — as customers.

The chain’s waitresses are as buxom as ever but its sales have “flattened out,” said Darren Tristano, executive vice president at research firm Technomic, Inc. Revenue peaked in 2007 at nearly $1 billion but had fallen to around $850 million last year, he estimated. (The privately-held company doesn’t release sales figures.) The brand recently announced an overhaul aimed at making Hooters more mainstream than man-cave, adding more salads to its menu, remodeling stores and rolling out a series of ads last week to tout the changes.

These efforts have only made the brand a little more popular, a new consumer survey shows.

According to market research firm YouGov’s BrandIndex, both men and women think slightly better of Hooters than they did prior to its overhaul, but men’s impression barely squeaked into positive territory, and women’s overall perception remained sharply negative. BrandIndex CEO Ted Marzilli said the small gains were encouraging for the brand, but “it’s not a brand that appeals to everyone.”

Hooters’ PR agency declined to make a spokesperson available for comment, and messages left with the company’s chief marketing officer were not returned.

The Atlanta-based chain and founder of the unfortunately termed “breastaurant” trend is trying to keep its core customer — the guy for whom the chain’s signature wings are a secondary attraction to the scantily-clad wait staff — from defecting to newer competitors like Tilted Kilt or Twin Peaks, while at the same time appealing to their girlfriends or wives.

“Restaurants can increase their base if they can negate the ‘veto vote’… Women are the driving force on our everyday eating patterns,” said Harry Balzer, chief industry analyst at research firm NPD Group. “Traditionally, when you want to appeal to more women, you’re going to bring in issues that have to do with diet. It will be salads, things that are fresher.”

“The food had not kept pace over time,” CEO Terry Marks told Nation’s Restaurant News in August. “By broadening the menu and introducing items that are better for you, we can get both new people and lapsed guests who might have outgrown our core items.”

In January, Hooters debuted its first redesigned location, which the company said gives customers “a more open and brighter appearance,” thanks to higher ceilings and lighter colors.

“They’re moving it forward, but it’s a larger brand, so in order to move the needle, it’s going to take some time,” Tristano said.

“They developed a niche and by some standard were certainly successful in establishing that niche,” Marzilli said, but the chain’s focus on sex appeal has some inherent limitations. “There are some women who will say it’s a sexist theme or I dont like what the brand stands for.’”

In good economic times, that might not be an issue. But the recession pummeled the casual dining sector, and Hooters’ core customer, young men, have been disproportionately affected by unemployment.

“The overall casual dining space… has been undergoing a lot of turmoil over the last four to five years,” said John Gordon, principal and founder at restaurant consulting company Pacific Management Consulting Group. “Hooters had an even more difficult situation,” he said, because ownership turmoil distracted management from reinvesting in and reinventing what was becoming a dated brand.

NPD data found that Americans went out to eat, on average, 74 times last year. That’s the lowest number since the company began tracking it in 1984. “They’re appealing to a behavior that’s decreasing in this country,” Balzer said.

“The question is, mathematically… how do I keep my base while growing and attracting logical new users?” Gordon said. For Hooters’ management, the answer seems to be greater inclusivity.

But Tristano questioned whether catering to women is really in the brand’s best interest. “I think they need to stay true to their brand,” he said. “To try to make Hooters more female-oriented will move away from what has attracted men to the concept… It may be as harmful to target them as it is helpful to bring them in the doors.”

Leave a Comment » | 'breastaurant, Economy, Financial Activity, Franchise Activity, Marketing Initiatives, Menu, Menu Trends, Uncategorized, Wings | Permalink
Posted by bnoone

Double Trouble?

May 14, 2013

double-troubleTony Holmes had a problem: The drive thru at his high-traffic Chick-fil-A restaurant in Apex, North Carolina, was too crowded.

For nearly two years, he tried line busting with employees outside wearing headsets. Then he gave those employees handheld remote units to streamline ordering. Both methods helped alleviate the drive thru’s bottleneck, but there were other issues that technology and manpower couldn’t address.

So in November, Holmes installed a dual drive-thru lane.

“I recognized pretty early on from a volume standpoint that our drive thru had hit a lid, so to speak,” says Holmes, whose unit does an average 1,800 transactions a day. “We were at maximum capacity for lots of different reasons.”

The crowded, one-lane system was causing many customers to reach the dreaded turn-away point. “It’s an intuitive thing,” Holmes says. “People see that line and think, ‘I’m going to park and go inside,’ or ‘I’m going to go somewhere else.’”

A restaurant has a big problem if customers drive up and consider leaving, says Darren Tristano, executive vice president of Technomic, a restaurant consulting and research firm. “Every restaurant is marketing to get customers,” he says. “If you can’t manage them in an efficient manner, then you’ll lose that marketing effort, and you’re going to lose out on those customers. That is critically important to surviving today.”

Adam Noyes is the chief restaurant operations officer at Checkers/Rally’s. He says the chain is the biggest dual drive-thru concept in the country, with 85–90 percent of its locations featuring double drive thrus.

Noyes says that for operators who decide dual drive thrus are the best approach for their brand, it’s essential both lanes stay open during operating hours. “And if you’re going to have a double drive thru, you’ve got to have the technology, people systems, and training to be able to deliver on that experience,” he says. He adds that there is a learning curve for both staff and customers when installing dual drive thrus.

“When guests pull up to the passenger side [drive thru], that side is better designed for those with multiple guests, because you have to reach across,” Noyes says. “But that’s really the only negative. Our guests have learned that when you’re going to that side, it can be fun because they let the child pay and it’s a different experience. They turn that negative into a positive.”

Holmes’s parking lot isn’t backed up anymore, but he still has difficulties with the drive thru. His dual drive thru’s lanes each have a speaker box and menuboard, and merge into one lane up to the window, where guests pay for and receive their food. While his bottleneck used to be at the speaker box, it’s now at the window, an issue common with dual lanes that merge.

Holmes has increased staffing, not only to operate the drive thru, but also because traffic has increased inside the store. He says he doesn’t mind the extra staff. “What we’re able to do now is spend a little more time on service with guests, more than what we could before,” he says. “It changes the dynamic, but also gives you a better opportunity to serve guests.”

Noyes says extra staff when adding a second drive-thru lane can decrease the stress factor for all parties. “It gives the employees the opportunity to stop and be sure that they’re being friendly to the guests,” he says. “Sometimes when they’re doing so many things, they get overwhelmed and forget that hospitality piece.”

Cross-training staff is also imperative when operating a dual drive thru, Noyes says. “Being sure that an employee can easily slide over and help take an order or help bag an order, that’s another key piece so that you’re as efficient and productive as possible,” he says.

While there are a few negatives to the dual drive thru—including additional training, technology, and costs—it can be a boon to business if done correctly, Noyes says. “When guests pull up to our lot and see that they can choose between one lane or two, the perception is that it’s going to be a faster experience.”

For Holmes, a second drive-thru lane has produced tangible results. When his drive thru was a single lane, the maximum number of cars he could get through in a day was 123; with a second lane, that number has jumped to 143. In addition, revenue has increased 20 percent in two months, and his unit has moved up 150 spots in overall system rankings for the peak dayparts of lunch and dinner.

“From a volume standpoint, we’ve seen a good bump,” he says. “I was probably on a 7 percent increase for the year, and we [went] up 10–12 percent in November and December.”

While much of Checker’s/Rally’s business comes from dual drive thrus, Noyes says the option doesn’t work for every brand or location. To be more flexible, he says, the chain now offers franchisees a choice between dual-lane and traditional single-lane drive thrus.

“At the end of the day, it’s about convenience to the guests. How it’s delivered isn’t as critical,” Noyes says. Lately, new growth for the brand has been in urban centers such as New York City, where drive thrus aren’t possible—or even necessary.

“For us to get our brand in as many places where our guests want it, we need to be able to execute in many ways. Dual drive thrus are just one piece,” he says. “The question is, How do you grow your brand? There are many avenues to be able to do that.”

Leave a Comment » | Franchise Activity, Growth, Quick Service | Permalink
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C-stores Shape Up Their Health & Wellness Offerings

May 14, 2013

NATIONAL REPORT — It’s no secret that convenience stores have received a bad junk food wrap. Even First Lady Michelle Obama criticized the channel for not having anything healthy to offer. But that generalization is slowly changing as the health and wellness push moves further into the mainstream — impacting consumers all the way to the convenience retail sector.

“More consumers than ever before tell us that eating healthy and paying attention to nutrition is important,” said Darren Tristano, vice president of research at consulting firm Technomic Inc., which unveiled a new “Healthy Eating Consumer Trend Report” in January. This report showed that consumers’ perception of healthy food is changing as they become more health-conscious. The study also found that consumers strongly associate with contemporary definitions of health, but balance better-for-you food choices with occasional indulgences.

Tristano explained that more consumers are gravitating toward “health halo” claims, such as local, natural, organic, whole wheat and free range. For that reason, he advises retailers to “leverage the growing interest in the health halo by developing the kinds of menu offerings that can underscore health without detracting from taste perception.”

Recent research from Mintel also demonstrates the shift toward healthier eating. According to the market researcher, just over two-thirds of Americans are opting for healthier fare.

“Consumers are more aware than ever of their own nutritional deficits and what poor eating habits can do in terms of their long-term health,” said John Frank, Mintel’s category manager for CPG food and drink reports. “As a result, today’s consumers are seeking out healthy food with greater urgency. However, skeptical or confused consumers aren’t likely to pay a premium for healthier food.”

Smart convenience store retailers are monitoring these and other consumer health trends, with some taking a more proactive role and experimenting in-store where it makes sense. Among those making headlines recently:

  • 7-Eleven Inc. introduced a line of fresh foods and downsized some of its fare by creating portion-sized items. The goal is to have 20 percent of sales come from fresh foods in its U.S. and Canada stores, up from about 10 percent currently, according to a December New York Times report.

“We’re aspiring to be more of a food and beverage company, and that aligns with what the consumer now wants, which is more tasty, healthy, fresh food choices,” stated 7-Eleven President and CEO Joe DePinto. The c-store giant has reportedly put together a team of culinary and food science experts to study industry trends and develop new products.

  • More than a dozen convenience stores joined in a Kansas county’s efforts to reduce the community’s salt intake. Hy-Vee Convenience Store, Gas & Shop Convenience Store, Larry’s Shortstop and 10 local Kwik Shops in Shawnee County, Kan., agreed to display a standalone rack of healthy, low-sodium items (chosen and customized by a dietician) in a prominent spot in their stores. This health initiative was spearheaded by the commissioners in Shawnee County, which provided the racks, promotional signage, technical assistance and advertising.
  • C-store retailers in Brattleboro, Vt., joined the Healthy Retailers program, sponsored by the Brattleboro Area Prevention Coalition in collaboration with the Vermont Department of Health. In addition to discouraging tobacco and alcohol use among youth, the program resulted in vegetables, new fruit varieties, and ground beef and pork products from local farms being available for purchase at select convenience stores in the area.

Sonja Hubbard, former NACS chairwoman and CEO of Texarkana, Texas-based E-Z Mart Stores Inc., is one convenience industry leader who has been vocal about her belief that the opportunity exists to make c-stores a more nutritious place for consumers to shop.

In 2010, Hubbard told Convenience Store News she was initially offended by the First Lady’s remarks about the lack of healthy food in c-stores, but then felt empowered to make some changes at her own chain. Now, two years later, she shared with CSNews that she thinks “c-stores are improving on the way we are promoting existing health and nutrition options, plus we are continually adding more items and trying to grow sales in the category.”

Minute Market in Oregon is another c-store operator adding and testing better-for-you items like string cheese, low-sodium sunflower seeds, fresh fruit and “healthier” drinks for kids. “As the industry changes, we are getting more options to choose from and bring in as our main distributor picks up these healthier products,” said Phyllis Simpler, Minute Market’s operations manager. “Over the last year, especially, a lot more products have been made available to us.”

Leave a Comment » | C-Stores/Retailer Meal Solutions, Eco Friendly, Health & Wellness, Local Foods, Menu Trends | Permalink
Posted by bnoone

B.Good Ready to Grow

April 30, 2013

getimage.aspxAll-natural burger chain’s first franchise location is set to open in Shrewsbury, and dozens more are slated for New England over the next five years

First conquer New England. Then the East Coast. And finally, the country.

The founders of b.good, a Boston chain of nine farm-to-table burger and fry joints, are launching an ambitious campaign to spread their feel-good fast food in two weeks with the opening of the company’s first franchise store in Shrewsbury.

“We set out wanting this business to be huge,” said cofounder Anthony Ackil. “We never wanted to open five restaurants. We never wanted 50. We want hundreds.”

Ackil and Jon Olinto, the company’s other founder, developed plans and found partners last year for 23 new franchise stores. The restaurants, along with 12 more corporate locations, are slated to pop up in Maine, New Hampshire, Rhode Island, Connecticut, and Massachusetts over the next five years.

The duo met long ago, in sixth grade at Dexter School in Brookline, and bonded over homemade meals cooked by Ackil’s late uncle. As adults, they shared a love of fast food — but not the post-consumption guilt it inspires.

Ackil and Olinto opened the first b.good nine years ago, serving all-natural burgers, fries, and salads. Now the chain’s restaurants feature wallboards identifying the farmers who raise the beef and cultivate the produce served at each location.

As the business grew in Greater Boston, Ackil and Olinto spent time dissecting every aspect of their menu, finances, and operations — down to the amount of potatoes an employee can cut in 15 minutes. The founders share these details with their franchisees and take a hands-on approach with the each store, believing the brand’s success relies on how these restaurants perform.

“We want to give our franchisees a road map to make money,” Ackil said. “It’s taken us a long time to get things right.”

John Freeley and his brother, David, owners of the Shrewsbury location, were drawn to b.good above other brands because of the owners’ attitude and the farm-to-table approach.

“One of the key factors was their involvement in the franchise,” Freeley said. “In most cases, you sign the deal and you’re on your own. That’s not the case with Jon and Anthony.”

B.good sold the New England franchise restaurants to four different investor groups in deals for four or five stores each. The Freeleys are on pace to open a store a year, like the other investors, for five years in Rhode Island and southern Massachusetts.

But one analyst questioned how b.good, which serves a niche market of health-conscious consumers, will perform on a national scale.

The company follows two different trends in the “fast casuals” restaurant category — farm-to-fork fare and better burgers, said Darren Tristano, an executive vice president at Technomic, a food industry research firm. That could be a problem.

A bleak national market for farm-to-fork fast casuals means b.good’s founders are either on the brink of something new, different, and ready to burst with growth or people just won’t buy it, he said.

“Only a minority of consumers want farm-to-table,” Tristano said. “Out of that minority there are those who aren’t willing to pay for it because the price is higher. Now you’re getting down to a small minority that want it and are willing to pay for it, and then there’s a small percentage that actually do it.”

And in the booming burger market, well-established brands are offering lower investment costs and yielding similar annual sales.

B.good’s owners said a franchise store requires an investment between $400,000 and $600,000 and is expected to generate annual sales of about $1.15 million.

Another strong, growing brand in the better burger business, Five Guys, has an entry cost of about $350,000 to $550,000 per store and produces annual sales of about $1.2 million.

“Franchisees, knowing the market for those other burger chains, will look at b.good and ask why the investment costs are higher,” Tristano said.

Olinto said the b.good restaurants require slightly more money upfront because of upgraded fixtures, furniture, and equipment that help drive home the farm-to-table theme.

“If you just come in and get a burger and fries and don’t learn about our concept or where your food comes from, we’ve failed in a sense,” he said.

B.good is also likely to see competition from other fast casuals such as Subway, Chipotle, and even Panera Bread, which also serve more affluent consumers who care about the food they put into their body.

Although franchise business growth is predicted to increase at a slightly slower rate this year — by 1.4 percent compared with 1.5 percent in 2012 — it is still ahead of other business sectors, according to an IHS Global Insight report released in December.

Burger restaurants continue to pop up in the franchise industry, according to Alisa Harrison, a spokeswoman for the International Franchise Association. Overall, about 3,000 new restaurant franchises are forecast to open this year.

“We continually see new burger concepts because burgers and fries never go out of fashion,” she said. “It’s a concept that people like and if it can be replicated from one region to another, franchising is a great way to grow your business.”

Ackil and Olinto are confident they can stick to their restaurant concept of serving real food, which they define as knowing its source and the farmers who produce it.

The all-natural beef served in the nine corporate-owned b.good restaurants comes from Pineland Farms, a co-op of 270 sustainable farms located east of the Mississippi River and as far south as the Carolinas.

Pineland also supplies Whole Foods Market Inc., and Olinto said b.good is likely to pursue new markets that the supermarket company has entered because they share a similar customer base and need for local suppliers.

Tristano said it’s no surprise b.good found diners and investors in New England, but the brand will be tested in markets that don’t place as much importance on their food’s source.

“They’ll likely grow in the short term, but the long term is going to be a bigger question mark,” he said.

Leave a Comment » | Burger, Expansion Strategy, Fast Casual, Franchise Activity, Future Plans/Announcements, Growth, Health & Wellness, Ingredient, Menu Development/Innovation, Menu Trends, Price | Permalink
Posted by bnoone

McDonald’s Cites Drop in Popularity for End of Walnut Salad

April 29, 2013

With new products in the wings, McDonald’s is trimming less popular items from its menu.

The Oak Brook-based burger giant said Thursday that it plans to discontinue its fruit and walnut salad and Chicken Selects. It’s also mulling the fate of the Angus Third Pounder.

The decision comes at a time when McDonald’s has been grilled by investors about a dearth of new products as well as softening sales.

With a number of items set to debut nationally — among them a spicy McChicken sandwich and the Egg White Delight breakfast sandwich — the cuts likely reflect the company making room for them, and others slated for this year.

“We are always talking to our customers and make decisions regarding our menu — what to add and what to remove — on a case-by-case basis,” McDonald’s spokeswoman Danya Proud said in a statement.

Darren Tristano, executive vice president of Technomic, said that while the current cuts are more than McDonald’s usually makes to its menu, it’s also introducing new products faster.

“The need to streamline their menu has become increasingly important,” he said.

McDonald’s posted its first monthly same-store sales decline in more than nine years in October, which led to a slew of questions about how the golden arches would fare against resurgent competition from Wendy’s, Burger King, and Taco Bell as well as fast-casual players like Chipotle and Panera.

During the company’s fourth-quarter earnings call in January, McDonald’s CEO Don Thompson acknowledged “some softening and some slowing” in the business.

“A couple of things needed to be stronger,” he said. “We needed to have and execute — we had it, but execute a more robust menu pipeline for our consumers, and that’s across the board in beverages and beef offerings and chicken offerings.” This year, Thompson said, McDonald’s will have new products in each of those areas.

Speculation involving the removal of the fruit and walnut salad, launched in 2005, and Chicken Selects, introduced in 2004, has circulated for years. But removing the Angus burger, which is sold with a variety of toppings, and as the primary component of three snack wraps, would be a more significant departure for McDonald’s.

Launched in 2009 with great fanfare, the Angus burger had been through years of testing and was the company’s first premium burger since the Big N’ Tasty debuted in 2001. It was pulled in 2010.

Angus currently represents the high end of McDonald’s menu, selling for $4 or more, depending on the toppings. The Big Mac, for example, was selling for $3.69 at an Evanston McDonald’s on Thursday.

The Angus faces stiff competition not only from other burgers on the McDonald’s menu, including the Big Mac, Quarter Pounder, and the McDouble, which sells for $1 at most restaurants, but from the entire so-called better burger category, a subgenre of the fast-casual category specializing in never-frozen burgers made to order with a variety of toppings.

Tristano said that while the Angus could be “too premium for McDonald’s,” it also might not be the right burger to compete with these high-end rivals. “Angus may be too lean, not enough fat, not enough flavor to compete with the more indulgent burgers out there,” he said.

Leave a Comment » | Burger, Food, Franchise Activity, Future Plans/Announcements, Menu Development/Innovation, Menu Trends | Permalink
Posted by bnoone

Burger King Tries Again in France

April 25, 2013

BKFRANKFURT – Once a week, Vincent Bonnaire drives 15 miles from his office in Aix-en-Provence to Marseille airport in the south of France. He’s not catching a flight. He just wants his weekly Whopper fix.

Bonnaire, 28, an electrical equipment salesman, can once again enjoy his favorite burger in France. After a 15-year absence, during which rival McDonald’s captured almost half of the $12 billion French fast-food market, Burger King Worldwide returned to France in December. In the coming months, it plans to open its second outlet, off a motorway in Reims.

Burger King’s first French foray was haphazard, ending with a quiet retreat after shuttering 39 restaurants. This time, Burger King has hedged its bets, sharing costs with Italian restaurant operator Autogrill. At stake is one of McDonald’s biggest markets based on sales and profits.

To beat McDonald’s and European rival Quick, which have gobbled up the best locations and tailored their menus to French tastes, the Miami chain must emphasize the flame-grilled burgers that have won passionate fans, according to Michael Schaefer, an analyst at researcher Euromonitor International.

“They have the name recognition, that weird cult following in France,” Schaefer said. “That’s kind of half the battle. The best thing for Burger King right now is to keep it simple and focus on things people know.”

Another failure in France could sour investors on Burger King’s shares, which have advanced about 20 percent from the company’s opening share price on its June 20 return to the New York Stock Exchange, after owner 3G Capital completed a merger with a company co-founded by activist investor William Ackman. The stock has outpaced both McDonald’s and the Standard & Poor’s 500 index since then, bolstered by an international push that has taken the chain into places as far-flung as Siberia and Peru.

A setback in France “would be a very big blow for the organization and for the brand,” said Darren Tristano, executive vice president at researcher Technomic Inc. in Chicago.

Burger King is saying little about its plans in France, where the fast-food market will grow 17 percent by 2016, Euromonitor predicts. Autogrill provides expertise “in the travel sector,” according to emails from Leo Leon, Burger King’s general manager for Europe, the Middle East and Africa. Autogrill, based in Novara, Italy, runs restaurants – including more than 140 Burger Kings – in airports, railway stations and roadsides on four continents.

The Autogrill pact allows Burger King to test the waters without big upfront investments, said Jerome Hamrit, head of the consumer and retail practice at A.T. Kearney in France.

Burger King may benefit from its beef-heavy menu, a contrast to that of McDonald’s, often called “McDo” in France, which has increased its offerings of fare such as salads, fruit and pastries. Burger King should focus on the basics such as its Double Whopper, said Suzanne Stahlie, managing director at consultants FutureBrand in Paris.

“We can go to McDonald’s to eat ice cream or have a coffee,” she said. “People go to Burger King for the American burger.”

Waits can stretch to 45 minutes or more during lunch at the Marseille airport location.

Leave a Comment » | Burger, Economy, Expansion Strategy, Experience, Franchise Activity, Future Plans/Announcements, Growth | Permalink
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Casual Dining Now on Resort Menus

April 24, 2013

665371The Four Seasons Resort Scottsdale recently opened a whimsical, comfort-food restaurant with a soda fountain, shuffleboard table and regional American specialties such as chicken-fried buffalo with buttermilk mash.

The venue, Proof, is a radical departure in dining at the AAA Five Diamond property and a first for the luxury hotel chain. It’s also an example of a casual dining trend taking hold at luxury resorts Valley-wide.

“We realized that our guests wanted a restaurant where they could eat in their T-shirt and shorts. It’s not that formal dining is gone completely but rather that the demand is increasing for approachable foods at approachable prices in a family-friendly setting,” Executive Chef Jesse Hansen said of the new restaurant.

After a five-year struggle to fill seats and make fancy dining rooms profitable, many resorts are moving their high-end restaurants down-market or adding informal dining options alongside them.

Economics and lifestyle are driving the move away from starched white tablecloths and china to wood tables and pottery, from four-course dinners to shared plates, according to industry experts.

Diners no longer have an appetite or pocketbook for $100 Kobe beef patties topped with foie gras.

Instead, today’s business and leisure diner wants the price to be as good as the food.

“The consumer mind-set is toward value, and resorts are getting the message,” said Darren Tristano, executive vice president of Technomic Inc., a Chicago-based market-research firm for the food-service industry. “They know that diners perceive the traditional resort restaurants as expensive and formal, so they are opening ones that are cheaper and more casual.”

Experts estimate that diners can cut a dinner tab almost in half by eating at a casual resort eatery. The lower prices especially appeal to guests who stay several nights and have little desire or money to dine nightly at the first-class restaurant.

The resort trend dovetails with an industrywide boom in casual dining. According to market researcher NPD Group, casual dining will continue to outpace all other sectors through 2019.

Along with saving money, business and leisure diners at resorts have less interest than their grandparents in suiting up for multiple courses in formal dining rooms.

At Montelucia Resort and Spa in Paradise Valley, Executive Chef Michael Cairns recently opened Centro Lounge, a Southwestern-inspired bistro that meets an ambitious guest wish list: fresh, locally inspired food; small plates to share; entrees under $20; Wi-Fi access; and a light, bright, unpretentious space in which to enjoy a meal.

“People want technology in the dining room so they can check e-mail, watch TV or chat on the phone while eating,” Cairns said. “We blew up the old model of resort dining and brought in the new.”

The changes work for Francis Miller and her husband. The Lancaster, Pa., couple spend weeks every winter at the resort at the base of Camelback Mountain.

“We like that we have a casual, bright and light restaurant to grab something to eat,” Miller said. “Guests watch sports, the food channel. It’s a nice addition to have on the property.”

Resorts also are banking that the hipper, casual eateries will prevent guests from spending their dining dollars elsewhere while enticing locals to the resort for a meal. The new casual model is midway between the rank-and-file coffee shop and formal dining room, replicas of innovative, one-of-a-kind, chef-owned eateries.

“Food is a critical part of a resort’s overall profits, so it’s important they keep guests on site for as many meals as possible,” said Kristen Jarnagin, vice president of communications for the Arizona Lodging and Tourism Association.

The long run of good times for Arizona resort restaurants began stalling in 2008. That April, Mary Elaine’s, for 20 years a showcase of luxury fine dining with decadent touches like purse stools, closed. The Phoenician replaced the restaurant with a partnership with superstar chef and international entrepreneur Jean-Georges Vongerichten for J&G Steakhouse.

Shortly after, two other high-end Valley resorts shuttered their decades-old, fine-dining rooms in favor of celebrity-chef spinoffs. The Marquesa at the Fairmont Scottsdale Princess turned into Bourbon Steak, a Michael Mina steak house; while the Chaparral at the Marriott Camelback Inn turned into BLT Steak, a Laurent Tourondel concept.

Diners view steak houses as a more casual alternative to the old-school, stuffier resort restaurants and a popular draw to business travelers dining on company expense accounts, hospitality-industry experts said.

But is casual resort here to stay? Predictions range from yes to passing fad.

Chefs such as Cairns are certain the days of dark leather, starched tablecloths and French continental fare are over forever. Yet Jarnagin believes formal dining, like most cyclical trends, eventually will return.

“Everything comes full circle, and when the good times roll, people will want that truly special meal that only a high-end hotel at a resort can offer,” Jarnagin said.

Despite the growing popularity of casual dining, properties such as the Sheraton Wild Horse Pass and Resort have no plans to shutter or offer lower-tier alternatives to their upscale, showcase restaurants.

“Kai is part of our resort’s identity and a way we share the Native American culture, history and legacy,” said Stephanie Sanstead, spokeswoman for the Gila River Reservation resort. “Kai is here to stay no matter what happens at other resorts.”

Leave a Comment » | Casual Dining, Economy, Hotel, Price, Technology | Permalink
Posted by bnoone

McLent? Fish Hits Fast Food Menus for Holidays

April 23, 2013

fishIf you suspect there’s something fishy going on at your favorite fast-food joint, you’re probably right. The countdown to Easter is on, and that means everyone from McDonald’s to Quiznos is cashing in on the Catholic tradition of skipping red meat in favor of fish during Lent. This year, several chains have created new menu options for customers during this, the holiest of seafood seasons.

Darren Tristano, executive vice president of food service research and consulting firm, Technomic, told Nation’s Restaurant News that most restaurant chains should consider having some kind of fish or non-meat option for people observing Lent in order to prevent a loss of traffic during the season. Many chains are taking that advice and running with it this year.

McDonald’s, the largest of the fast-food chains, introduced a new item this year in addition to its popular Filet-O-Fish sandwich. Its snack-size Fish McBites are a guilt-free option for believers as well as those concerned with the environment, as they have been certified 100 percent sustainably sourced from the Marine Stewardship Council. The packaging for the Fish McBites, as well as the Filet-O-Fish sandwich, carries the council’s blue “eco-label.”

Other chains are also picking up on the trend of disclosing the sources of fish items on their menus. This season, Wendy’s is promoting its Premium Fish Fillet by advertising its 100 percent North Pacific cod origins. And Culver’s, a Midwestern fast-food chain, is selling a seasonal Northwoods Walleye sandwich.

“That’s part of the overall trend to improve perceptions of food and ingredients through marketing,” Tristano said, “so certain regions get called out. Marketers have enhanced perceptions with the way they’ve described menu items for years. Is it more appealing during Lent? Probably.”

Other chains that are getting creative with their Lenten offerings this year include Quiznos, which is promoting its Lobster and Seafood Salad sub, and Carl’s Jr. and Hardee’s, whose brand-new Charbroiled Atlantic Cod Fish sandwich has arrived right on time for the seafood season.

Leave a Comment » | Advertising, Fast Food, Food, Franchise Activity, Lenten Offerings, Marketing Initiatives, Menu Development/Innovation, Menu Trends | Permalink
Posted by bnoone

NAPICS ’13: Is ‘Better Pizza’ the Next Fast Casual Category?

April 22, 2013

pizzaPizza is rapidly moving toward a fast casual format, said Darren Tristano, executive vice president of market research firm Technomic, during his keynote address Sunday at the North American Pizza and Ice Cream Show in Columbus, Ohio, where he also discussed frozen dessert trends.

“We’re starting to see a ‘better pizza’ category (similar to the ‘better-burger’ category created by Five Guys, Smashburger, etc.). These pizzas are made in 3 minutes and they’re made to order and this is really an area pizza hasn’t seen before, but it’s what consumers want,” he said. “This will be very strong especially at lunchtime.”

Consumers are driving the emergence of “better pizza,” artisan and gourmet concepts as they demand more bang for their buck.

“Value-conscious consumers are making judgments about pizza based on what they’re actually getting,” Tristano said. “Quality is more important than ever.”

Tristano outlined other emerging menu trends in the pizza segment, including a bigger focus on chicken as a topping, particularly as barbecue chicken and buffalo chicken offerings. Not only is chicken more cost effective as the price of beef rises, it is also adaptable.

He also said more pizzerias are experimenting with seafood toppings such as shrimp.

“Fresh toppings” requests have risen 6 percent since 2010. Diners also want a large quantity of toppings and cheese, a variety of toppings from which to choose, and new and innovative toppings.

Consumers are also seeking out more premium ingredients than they were in recent years.

“They want more health-halo descriptors such as all-natural, locally-sourced, healthier components like whole wheat crusts, organic, artisan, gluten-free,” Tristano said. “This is good news because it means they’re willing to spend more.”

Other pizza menu trends include:

  • Ethnic toppings moving into the mainstream, such as Papa Murphy’s Thai Chicken deLite.
  • Artisan and upscale; pushed into the mainstream by Domino’s artisan line. “This allows you to sell pizza at a higher price point,” Tristano said.
  • Pizza providing a platform for other comfort foods, such as meatloaf pizza and mac and cheese pizza.
  • Breafast. Some pizza chains, such as Chicago-based Rosati’s, are offering morning options to add sales. “This also gives them an opportunity to innovate and will add value to the bottom line,” Tristano said.
  • Gluten-free is still growing fast. Chuck E. Cheese mainstreamed gluten-free last year, allowing groups to easier choose where to eat if one person is on a gluten-free diet.
  • Combo meals have emerged, particularly from Pizza Hut with its Big Dinner Box. “They generate value and put that value in front of the consumer,” Tristano said.
  • Restaurant to retail. Donato’s and Noble Roman’s are two examples of brands that have added a take-and-bake line for grocery stores.
  • Adult beverage. Tristano said there is a shift toward brewpubs and craft beer. Adding these options to the menu provides a “big opportunity to attract younger consumers with a high-margin item.”

Off the menu, consumers want pizza available from a convenient location, good-tasting pizza and pizza at a value.

“Convenience is the primary traffic driver, but it won’t provide a strong edge if you don’t have a better-tasting pizza,” Tristano said.

What about dessert?

The frozen dessert space has gotten increasingly crowded within the past 10 years and competition has flattened sales since 2010, Tristano said.

Although the Recession has ended, consumers remain cautious with their spending. However, according to Tristano, they feel better about their own situations and fewer consumers admit they’re struggling.

“The better news is consumers are more optimistic about 2013, by about 4 percent more than they were last year at this time,” he said.

Consumers’ primary concerns are gas prices (27 percent), grocery costs (26 percent), and their own financial health (26 percent).

“Grocery prices are rising faster than restaurant prices, so for consumers, restaurants are now actually a better value,” Tristano said.

While consumers are more optimistic for the New Year, operators have the opposite mentality. The big concern is commodity prices.

“Fifty-four percent (of operators) said they will raise their prices this year. They don’t want to, but most will have to,” Tristano said. He added that all eyes will be on McDonald’s. As the chain bumps its value offerings from $1 to $1.29, it makes other brands more comfortable to inch up prices as well.

Tristano also pointed out that while sales are rebounding from the economic fallout, they’re still well below pre-Recession levels. For example, the restaurant industry as a whole experienced 13.5 percent growth in 2007 versus 3.6 percent expected for 2013.

“It will likely take until 2020 to achieve 2007 levels,” Tristano said. “But we’re headed in a positive direction and that is better than a decline.”

Concepts and Consumer Trends

For the dessert segment as a whole, nothing is more popular than frozen yogurt. Pinkberry kicked off a high-end influx of these concepts in 2005, and was eventually joined by self-service and lower price-point brands such as Orange Leaf.

Also on trend and poised to grow are old-fashioned ice cream parlor concepts (such as Oberweis) and Pino Gelato, as well as international concepts finding their way stateside, like Costa Rica’s POPS.

“Many of these provide authenticity, which is what people want,” Tristano said. Other trends include:

  • Broadening menus to add winter weather business; for example Cold Stone Creamery’s cupcakes and novelties lineup. Also, adding complementary offerings such as crepes to go with a gelato, provides more chances to sell during any season.
  • The acceleration of breakfast offerings, such as Greek yogurt with fruit.
  • Smoothies and other specialty beverages. “They offer portability, and they can benefit from the lifestyle-oriented marketing people want now,” Tristano said.
  • Catering. Ben & Jerry’s is now offering catering, as is Cold Stone. “They said, ‘if you’re not going to come to us, we will come to you,’ and it’s a great option for business events, charity events, etc.,” Tristano said.
  • Super premium. “Raising the indulgence factor and playing with flavor innovation adds an element of sophistication,” Tristano said, pointing to Columbus-based Jeni’s Splendid Ice Cream as an example.
  • Healthy promoted as a lifestyle.
  • Letting consumers control expenditures; for example, frozen yogurt concepts, like Menchie’s, that allow guests to mix, weigh and pay.
  • Community outreach. Yogurtland is a good example of providing philanthropic opportunities for its guests. “It won’t necessarily build sales, but it builds an emotional connection for guests and that makes them feel good. It also builds brand awareness,” Tristano said.

“Ultimately what operators need to keep in mind is consumers indulge when they go out to eat — they can eat healthy at home. But they want to have healthful options when they are out because it gives them more control over their decisions,” Tristano concluded. “Frozen dessert concepts need to be broadening their options to serve more occasions and differentiate.”

Leave a Comment » | Fast Casual, Flavor, Growth, Health & Wellness, Ingredient, Menu Development/Innovation, Menu Trends, Pizza, Price | Permalink
Posted by bnoone

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