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.


5 Reasons Burger King Wins with Tim Hortons Beyond the Tax Inversion

August 25, 2014

Print

Yesterday Burger King announced plans to acquire Canadian coffee-café chain Tim Hortons, which would enable the burger chain to relocate its headquarters to Canada. The move would lower its tax obligations, a fact the media has latched onto. But even without the so-called tax inversion, Burger King could win with the deal. Here’s how.

  1. Burger King continues to compete in the breakfast daypart, and coffee is essential to attracting patrons. Although Burger King has integrated Seattle’s Best coffee into its breakfast offering, replacing it with Tim Hortons’ premium-blend 100% Arabica bean could be a more financially advantageous opportunity on coffee purchasing.
  1. With increased emphasis on global brand growth, a combined Burger King/Tim Hortons provides strong growth opportunity through co-branding. Giving potential licensees the opportunity to offer a strong breakfast/lunch offering from Tim’s and lunch/dinner offering from Burger King maximizes rents and revenues.
  1. Competing with McDonald’s has become a challenge for larger brands. Since both Tim’s and Burger King compete with the global burger giant, Burger King should get a leg up in the competition. With greater opportunities to fine tune their Canadian operations, Tim’s knowledge of the market should support BK’s strategy and planning in Canada and create stronger competition with McDonald’s stores overall.
  1. Consumer loyalty and sentiment toward Burger King would likely improve with the Tim Hortons marriage. As the majority of Tim Hortons’ customers are brand fans, the strong emotional connection could carry over to Burger King with the new relationship. Emotional connections are important to younger Millennial consumer, and the connection could help strengthen brand perceptions.
  1. Out-of-the-bun thinking is becoming increasingly important to consumers. Menu innovation, limited-time offerings and the need to build what’s new and what’s next on the menu is important for consumers to maintain relevance to restaurant operators. The crossover of Tim Hortons’ and Burger King’s insight and development teams can provide some new perspective and ideally leverage staff experience and skills to support ongoing development programs.

Final Thoughts: Although this investment makes strong financial sense, the post-investment reality will be on leveraging synergies that exist and maximizing the relationship with new emphasis on overall brand growth objectives. How quickly each brand accepts the new realities and bands together culturally will determine the expected success.


Craft Soda Maker Cool Mountain is Hot

August 12, 2014

MONICA GINSBURG

Crain’s Chicago Business

(c) 2014 Crain Communications, Inc.

Untitled-1As a kid in the 1970s, Bill Daker recalls frequent outings to Lasser’s Beverages, a now-defunct soft-drink company on the North Side, where he and his brothers would swig a 32-ounce bottle of black cherry, blue raspberry or cream soda for 50 cents. Today, Mr. Daker is president of Cool Mountain Beverage Inc., a throwback line of neon-colored sodas he launched in 1997 with his brother John.

“The old pop-shop flavors, the glass bottles—it’s all memories of what we had when we were kids,” he says.

The kings of carbonated beverages may be suffering as consumers cut back on everything from Diet Coke and Diet Pepsi to Fanta and Mountain Dew. But for Des Plaines-based Cool Mountain and other little guys such as Jones Soda Co. of Seattle and New York’s Brooklyn Soda Works, these are the good old days.

 

Cool Mountain’s revenue is up 30 percent this year from 2013 and the company booked its first profit last year, though Mr. Daker declines to provide financial figures. Its soft drinks are available in 21 states, including Illinois since Aug. 1, and Canada, Britain and Singapore.

 

“The continuation of the artisan and crafted trend is moving into soda,” says Darren Tristano, executive vice president of Technomic Inc., a Chicago-based research company. “It’s like craft beer, where consumers, especially younger consumers, are willing to pay more for what they perceive as better quality and a bolder taste.”

 

The test, says Mr. Tristano, will be what happens when consumers get a thirst for something else. “Like most trends, there’s a short-term growth phase that gradually declines as consumers shift to something new,” he says. “Fifteen years ago, consumers traded up from Baskin-Robbins ice cream to Cold Stone Creamery, only to shift to frozen yogurt a few years later.”

 

Mr. Daker, 47, has survived one bust already. In 2003, as fuel prices spiked, 10 of Cool Mountain’s distributors went out of business, leaving him holding $150,000 in unpaid receivables. “It was our worst year,” he says. “It almost took me out. But by then I had so much money invested, I had to keep it going.”

 

PREMIUM PRICING

 

Cool Mountain’s sodas come in seven flavors—the top sellers are black cherry and strawberry. Like other craft bottlers, it uses 100 percent cane sugar and no high-fructose corn syrup. A 12-ounce bottle sells for $1.50. By comparison, Walgreens in mid-July was selling a six-pack of 16-ounce bottles of Coca-Cola for $2.50.

 

The brothers cooked up the business in 1995 after Mr. Daker was laid off as an electrician at Chicago-based Montgomery Ward & Co. They spent two years working with three private-label beverage companies to capture the flavors of their youth, financed with $150,000 from personal savings, family loans and credit cards. John, 48, left the business in 1999 and does maintenance work in Arizona. Another brother, Jim, 63, remains a minority owner.

 

In the early days, Mr. Daker admits, he had little knowledge of the beverage business and was blindsided when Jones Soda expanded just as the brothers were rolling out Cool Mountain. “From the start, we were competing for distributors and we were the runner-up to Jones,” he says. “The soda business is about volume, and the ones who have volume win the race.”

 

Better times came in 1999, when Mr. Daker stopped manufacturing Cool Mountain’s sodas with two Chicago co-packers and instead began to license its recipes to other manufacturers, which would either handle distribution or sell to other distributors.

 

Today Cool Mountain works primarily with Dr. Pepper Snapple Bottling Group Inc. in West Jefferson, North Carolina, and Real Soda Ltd. in Gardena, California. Mr. Daker’s largest customer, Ingels Markets Inc., a chain of 200 supermarkets in the Southeast, accounts for 10 to 15 percent of business.

 

That sales are growing at all in 2014 says something about Cool Mountain’s cachet. Total volume of carbonated soft drinks fell 3 percent in 2013, the ninth straight year of decline and the lowest since 1995, according to Beverage Digest LLC, an industry tracker in Bedford Hills, New York.

 

And while Cool Mountain just has begun selling in Illinois—it had been blocked by exclusivity clauses with some distributors—Mr. Daker launched another brand, Chicago Root Beer, here in 2011. It’s made in Chicago and sold in kegs. Chicago Root Beer makes up 20 percent of the company’s revenue, with a quarter-barrel selling for $45. Horseshoe Casino in Hammond, Indiana, is the largest customer.


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.


Healthy Hoagies Subbing In

August 6, 2014

getimageCanadians crave quality ingredients, ethnic twists on beloved meal of the masses, study suggests

Vancouver Sun

Copyright © 2014 Vancouver Sun

Almost everyone in Canada – a whopping 94 per cent of us – eats at least one sandwich a week, with 35 per cent eating a sandwich at least every other day.

But according to a new report by Technomic Inc. – a research and consulting firm focused on the food industry – healthy options are more important than ever.

The Canadian Sandwich Consumer Trend Report found today’s shoppers place more importance than ever on the quality of the sandwich, from the bread to the meat, cheese and condiments.

The majority of us say healthy sandwich options are a priority at lunch (57 per cent) and dinner (56 per cent).

And just 44 per cent say they’re satisfied with the “healthfulness of sandwiches away from home.” Which, in a way, is good news for all those café owners out there: there’s room for growth. “Operators need to focus on the quality of their sandwiches to help drive traffic and steal share,” Darren Tristano, executive vice-president of Technomic Inc., said in a release. “Certain concepts can emphasize sandwich quality and improve health perceptions at the same time through better-foryou sandwich claims, such as fresh, artisan or made-from-scratch.” A growing number of shoppers also say they like to try new or unique flavours on sandwiches: 27 per cent, up from 21 per cent in 2012.

 

HERE’S WHAT ELSE THE REPORT FOUND:

Canadians eat, on average, 3.3 sandwiches per week

35 per cent of Canadians eat a sandwich at least every other day

39 per cent of the sandwiches we eat are not made at home, but purchased elsewhere

60 per cent of the sandwiches we buy are takeout meals

48 per cent of us buy grab-andgo sandwiches

44 per cent would like healthier sides with our sandwiches

21 per cent of us – and 32 per cent of 25- to 34-year-olds – would like more ethnic sandwich options at restaurants

 

WHAT WE’RE EATING

Top 5 on the menu

Sandwich/wrap Appearances

Chicken 834

Veggie 406

Steak 204

Mixed protein 181

Pork 179

Source: Technomic MenuMonitor survey of 4,747 menu items in Q2 2014

 

How many of us order a sandwich away from home once a month or more for the following:

Our Top 3 lunch sandwiches

Burger: 23%

Sub/hoagie/hero: 19%

Deli: 10%

Our Top 4 dinner sandwiches

Burger: 32%

Sub/hoagie/hero: 22%

Chicken-breast sandwich: 7%

Deli: 7%

Fastest-growing condiments/sauces

Honey 55%

Tartar sauce 25%

Jam 22.2%

Caesar 20.3%

Tomato sauce 20%

Marinara 16.7%

Sauerkraut 15%

Pico de gallo 12.5%

Horseradish

mayonnaise 12.5%

Mango salsa 11.1%

Source: Technomic MenuMonitor survey of 2,058 menu items from Q2 2013 to Q2 2014


Juice Craze May Be Next to Tank, Analyst Says

July 22, 2014

As the demise of Crumbs Bake Shop, and its cupcake kingdom, roils the food industry, one analyst is already predicting the next hot trend that is likely to cool off: Juices.

That’s the word from Darren Tristano, executive vice president of restaurant research company Technomic.

In a blog this week, food guru Tristano wrote that juice concepts, while “all the rage today,” are at risk of over-saturation and too much competition. The Westfield Garden State Plaza in Paramus is now home to Jamba Juice and Freshu Grill and Juice Bar.

“With health and wellness getting more play from affluent and millennial consumers, it’s clear the cold-pressed juice concepts will be pushing hard to expand,” Tristano wrote.

“Even though these concepts have price points over $10 in major markets like Los Angeles and New York, it’s clear that Hollywood-starlet impact on our country with juice cleanses is evident. Juice specialists will likely expand quickly as the fad continues but the trend will settle into concepts that represent reasonable prices for the mainstream consumer.”

He predicted that big brands such as Starbucks’ Evolution Juice and Juice It Up will have an edge in this competition.

“But ultimately, the ‘craze’ will settle down and many restaurants will likely see declines in sales that make it difficult to continue their operations,” Tristano wrote.


Crumbs Bakery Chain Closes Up Shop

July 21, 2014

When Crumbs, the New York City-based chain that built its business around cupcakes, shuttered several dozen of its remaining locations on Monday, it seemed like an abrupt ending for a company that opened a decade ago to ride the wave of popularity of the sugary treat sparked by the TV series Sex and The City.

But Crumbs’ rise and fall isn’t surprising when considering the company’s dependence on a fad. In fact, it’s the latest cautionary tale for one-item restaurants and other chains that devote their entire menus to variations of a single product.

- Krispy Kreme, for instance, expanded rapidly in large part on the cult-like following of its doughnuts. But sales started declining and the company ended up closing locations. Last year, restaurant industry researcher Technomic said Krispy Kreme had 249 locations, down from 338 a decade ago. The chain has broadened its menu more recently.

- A similar fate befell Mrs. Fields, which is known for its cookies. The chain has suffered in part because of the ubiquity of places that sell cookies, and it was down to 230 stores last year, from 438 a decade ago.

- TCBY had 355 stores last year, down from 1,413 a decade ago. Part of the chain’s problem is the competition, given the proliferation of frozen yogurt places.

Companies that only offer one item can fall victim to a number of risks. For one, trendy products tend to attract competition from big and small players that want to jump on the bandwagon. For instance, Starbucks and Cold Stone Creamery have been trying to capitalize on the cupcake trend with cake pops and ice cream cupcakes, respectively.

Being beholden to a single item also makes companies more susceptible to customers’ whims and changing tastes. There’s always a new fad. Frozen yogurt. Chopped salads. Freshly squeezed juices. Entrepreneurs may be eager to open stores selling these products, but there’s always the danger that fickle customers will move on to the next thing.

“A cupcake shop today can’t survive on just cupcakes,” said Darren Tristano, a Technomic analyst.

To combat the risks, many chains diversify their menus. And several have prospered by moving beyond their flagship products.

Dunkin’ Donuts, for instance, has been pushing aggressively into specialty drinks and sandwiches, with a focus on boosting sales after its morning rush hour. And Starbucks has introduced a range of new foods and drinks in its cafes, including premium bottled juices and salad boxes. The coffee chain even plans to expand wine and beer offering in evenings to as many as 1,000 locations over the next several years.

Magnolia, another popular New York City cupcake shop, is credited for sparking the cupcake craze after it was featured in Sex and the City.

The chain, which opened in 1996, has endured while many of the cupcake shops that opened up in its wake – including Crumbs – focused on just cupcakes. That’s in part because Magnolia, which now has 7 locations, offers a variety of desserts, including cakes, pies, cookies, brownies and banana pudding.

Sara Gramling, Magnolia’s spokeswoman, said the company is learning about the dangers of focusing too heavily on one product, as well as expanding too quickly.

“We’ll be mindful of those lessons,” she said.

Still, some chains manage to persevere by carving out a niche where there aren’t many competitors; Auntie Anne’s and Cinnabon have expanded locations over the years.

As for Crumbs, the company noted in a statement late Monday that it was evaluating its “limited remaining options.” That will include a Chapter 7 bankruptcy filing.


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