How is it possible that bacon sausages didn’t exist until he invented them?

September 26, 2016

2016-09-26_1045

By PETER FROST

http://www.chicagobusiness.com/article/20160922/ISSUE01/160929995/how-is-it-possible-that-bacon-sausages-didnt-exist-until-he-invented-them

On a whim in 2008, Lance Avery hopped a quick flight to Des Moines to check out the inaugural Blue Ribbon Bacon Festival, a small event that drew about 200 bacon enthusiasts to a local bar. He remembers seeing men dressed in bacon suits and others with pieces of bacon stuck to their faces and thinking, “These are my people.”

Avery is finding that “his people” are all over the place today. The Des Moines bacon festival? It was held earlier this year in the city’s convention center and hosted 14,000 fans from 42 states and seven countries. As for Avery, the former corporate chef now runs Big Fork Brands, a line of all-natural, antibiotic-free, naturally encased sausages made primarily with bacon that he introduced at the 2011 festival.

Big Fork Brands, which consists of Avery and a single sales manager, had total sales of about $500,000 in 2015 and is on pace to do about $800,000 in 2016 after landing placement in the refrigerated shelves of Whole Foods and Costco stores in Illinois over the past few months. Its annual run rate just surpassed $1 million in its most recent financial quarter. He thinks the Big Fork brand can be worth $15 million to $20 million by 2020.

“Right now, we have more leads than we can deal with,” says Avery, 41, who quit his day job as a food consultant in January to focus on Big Fork full time. “We’ve got to be smart and strategic about how we position the brand and where we go from here.”

Funded with about $300,000 of Avery’s own money plus a small bank loan (that was recently paid off), Big Fork is now distributed in about 15 states both at retail and through food-service channels. Available in eight varieties, including aged cheddar, maple and brown sugar, and best-seller hickory and applewood, Avery’s bacon sausages can be found in grocers such as Plum Market and restaurants like Tavern on Rush. They retail for $6.99 to $7.99 for a 12-ounce package of four links.

He’s now trying to take his startup to a national platform. To get there, Avery knows he’s going to need help. That may mean partnering with a bigger manufacturer that can use its sales teams and infrastructure to broaden Big Fork’s presence or a private-equity-style investor that can inject capital into the business to allow Avery to hire more staff to scale the business.

Darren Tristano, president of Chicago-based market research firm Technomic, says the product is innovative and has a chance to be a hit; but its appeal likely will be limited to a niche group of bacon fanatics. “It’s the type of product that appeals to a more affluent, craft-focused consumer who’s willing to pay more,” Tristano says. Big Fork is “very well-positioned for a bigger brand to come in, and purchase it and build it up.”


Will Novelty Foods Fix the Fast Food Slump?

August 15, 2016

1471036997485By Vera Gibbons
http://www.foxbusiness.com/features/2016/08/15/will-novelty-foods-fix-fast-food-slump.html 

Grilled hot dogs. Mac ‘n Cheetos. Beefy Frito burritos. Chicken rings. Hot dog-crusted pizza. The revival of old cult favorites like clear soda and chicken fries.

And now – the “Whopperrito.”

Yup, this burger/burrito hybrid goes national today following successful test debuts in Ohio, Pennsylvania and Texas.

What gives? Why are the fast food chains putting so many weird – if not repulsive – food gimmicks on their menus? “It’s about generating traffic,” says Darren Tristano, president of Technomic Inc., a food service research firm.

There’s been a pullback in the industry, you see. A slump. And everyone’s feeling it – from Shake Shack (SHAK) to Starbucks (SBUX) to McDonald’s (MCD).

“Things were going really well at the start of the year when all the economic indicators that would correlate to positive restaurant conditions were in a good place – gas prices were low, confidence was up, housing was settled – and then in April, the switch turned off even though the indicators were still in place.”

Why? Tristano says there isn’t one specific reason for the softness. “People are buying food from other places – supermarkets, convenience stores; they’re eating at home more; and then there’s the presidential election, which could be a trigger point. It’s really the most tangible explanation anyone can point to—political uncertainty.”

Regardless, consumers – especially those looking ahead and thinking about college obligations and other expenses – are watching their wallets, says economist, Arjun Chakravarti, Assistant Professor of Management and Marketing at the Stuart School of Business.

While the younger set (The 25-year old group without 401ks and exposure to the global markets) is more optimistic about the economy and therefore more inclined to spend (especially in light of slightly rising wages and lower gas prices), says Chakravarti, the reality is that purse strings are pretty tight right now. And they’re not expected to loosen them anytime soon.

In fact, restaurant sales, virtually flat, are expected to remain weak for the rest of the year, according to The NPD Group, an industry research firm.

Is this a warning sign for the economy? “A downturn in restaurant sales increases the likelihood of a recession, but the hope is that it’s counteracted/buffered by expectations for increases in business spending in the 3rd quarter,” says Chakravarti.

Fast food chains aren’t taking any chances. They’re responding by offering aggressive discounts that emphasize affordability, and unleashing innovative, zany mash-ups that are more profitable (Burger King’s “Whopperrito” will sell for $2.99; $4.99 when wrapped into a combo meal.).

Buzz marketing – a viral marketing technique that is focused on maximizing word-of-mouth potential largely on social media platforms – is the name of the game, says Dan Rene, senior vice president at LEVICK, A strategic communications firm. “Fast food chains are engaging customers by selling them an ‘experience’ and this is an ‘experience’ that customers want to be part of, and share—pictures, posts, you name it.”

“It doesn’t matter whether or not customers like the food or what it tastes like. If everyone’s talking about it and the hype results in more foot traffic for the fast food chain, it’s won.”


Eatery digests patrons’ feedback

June 6, 2016

Arkansas-based fast-casual restaurant chain Slim Chickens, known for its tenders and wings, is rolling out a chicken-breast sandwich for taste-testing.

Testing is underway at Slim Chickens’ three Fayetteville locations, its Rogers store, and in Broken Arrow, Okla., near Tulsa. The restaurant chain is offering cayenne ranch and buffalo chicken sandwiches in Northwest Arkansas and cayenne ranch and Cajun chicken versions of the sandwich in Oklahoma.

Customers who select the sandwich are asked for feedback in a survey that takes about a minute to complete. That information goes straight to a few select Slim Chicken executives. So far, customers’ feedback has already resulted in changes to one of the sandwiches. The process is expected to continue for the next several weeks.

“Early indicators are positive,” said Sam Rothschild, Slim Chickens’ chief operations officer. “This is why you test.”

While the chain has offered sandwiches in the past, this is the first one made with a whole, premium chicken breast. Rothschild described the test sandwiches as being made from high-quality chicken and “fully dressed” with Slim’s sauce, pickles, lettuce and onions.

“We want our sandwich to stand out,” he said.

Slim Chickens has 35 restaurants — 25 are company owned and 15 are franchise operations — in Arkansas, Texas, Oklahoma, Illinois, Nebraska, Kansas, Louisiana, Missouri and Tennessee, with 21 other stores under construction. With the new stores, Slim’s is expected to have more than 50 restaurants open by the end of the year. The company said it hopes to have 600 stores in the United States by 2024.

Slim Chickens competes in the fast-casual segment, where operations focus on an enhanced dining experience compared with fast-food operations. While they don’t have a wait staff, fast-casual restaurants typically deliver patrons their food after ordering.

According to information provided by Chicago-based Technomic Inc., a research and consulting firm focusing on food and food service, sales at limited-service chains among the top 500 U.S. restaurant chains grew 5.5 percent to $211 billion in 2015. Sales at limited service chicken restaurants was up 9 percent. Limited service chains include fast food and fast-casual concepts.

Sales in the fast-casual segment alone were up 11.5 percent, and unit growth was up 9.6 percent in 2015, according to the report.

Darren Tristano, president of Technomic, said that portability, in the form of a sandwich, is something that consumers are looking for, and that adding a sandwich helps fast-casual operations compete with more traditional fast food’s convenience factor.

“One hand on the wheel and the other on a sandwich,” he said.

He added that Slim Chickens’ efforts to test the sandwiches locally are wise.

“They are getting consumers to validate the quality of the product,” he said. “It’s what successful brands do but not what everybody does.”

Rothschild said the sandwich sells for $3.99 by itself or as part of a combo meal at $6.49. Slim Chickens’ lowest cost combo meal, pre-sandwiches, was $6.99. He said that puts the Slim Chickens’ sandwich and combo meal close to fast food on price.

“We want people to come to us when they want chicken,” Rothschild said.


McDonald’s All-Day Breakfast Sparks a Fast Food Fight

May 9, 2016

by Leslie Patton

http://www.bloomberg.com/news/articles/2016-05-03/mcdonald-s-breakfast-push-sets-off-morning-scramble-in-fast-food

Fast-food joints aren’t hitting the snooze button anymore.

McDonald’s Corp.’s decision to start selling Egg McMuffins all day long last year — meant to help sales during lunch and dinner time — has boosted its morning business as well. That, in turn, has kicked off a scramble among its rivals to find new ways to combine eggs, potatoes and meat for a tasty breakfast.

The latest example is Burger King’s Egg-Normous breakfast burrito, which is being introduced in the U.S. on Tuesday. It’s stuffed with sausage, bacon, eggs, hash browns, cheddar and American cheese and served with picante sauce. The home of the Whopper, which still serves breakfast only during morning hours, also recently added a supreme breakfast hoagie and got rid of slower-selling English muffin sandwiches.

“We’ve invested more in breakfast,” Alex Macedo, head of Burger King North America, said in an interview. “The environment is very competitive.”

Along with adding and deleting items, Burger King tweaked its smaller egg burrito earlier this year, removing green and red peppers and replacing them with hash browns.

Skillet Bowls

Taco Bell revised its morning offerings in March to include $1 options such as skillet bowls and sausage flatbread quesadillas. Subway Restaurants just announced buy-one-get-one subs for the month of May. The catch: They have to be purchased before 9 a.m. And Dunkin’ Donuts revamped its menu boards to focus on all-day choices and started advertising $1.99 Coolatta drinks that are sold at all hours.

The changes come as more U.S. consumers grab eggs and coffee outside the home, according to a study by researcher GfK MRI published by EMarketer.com. Last year, more than 34 percent of Americans reported buying breakfast at fast-food restaurants, an increase from 32.8 percent in 2011. Meanwhile, fewer consumers said they’re dining out for lunch and snacks. Dinner increased less than 1 percent.

McDonald’s all-day breakfast in the U.S. has helped turn around its worst sales slump in more than a decade by drawing more customers throughout the day, including the morning. The plan is surpassing its goals.

Exceeding Expectations

“It’s still exceeding our expectations,” Chief Executive Officer Steve Easterbrook said on a conference call in April. “Whilst we clearly added incremental visits and incremental spend across rest of day, our breakfast business has also prospered.”

Items like Egg McMuffins and hash browns fueled a 5.4 percent U.S. same-store sales increase at McDonald’s in the first quarter. That’s stronger than the most recent quarterly gains posted by Burger King, Dunkin’ and Taco Bell.

“It’s helped drive success, which they haven’t seen for several years,” said Darren Tristano, president of industry researcher Technomic Inc.

After losing customers to McDonald’s all-day Egg McMuffins, Jack in the Box Inc. has been advertising a triple-cheese and hash-brown breakfast burrito. Same-store sales at company-owned Jack in the Box locations may be down as much as 3 percent in the recently ended quarter, the company said in Februar-1x-1y. The chain also is adjusting and improving other breakfast items, CEO Lenny Comma said during a conference in March.

Dunkin’ Donuts said last month that its new menu boards are helping drive breakfast-sandwich sales. It’s also focused on introducing mobile ordering and will start a 1,650-store test in metro New York in May to get customers their morning meals even faster. CEO Nigel Travis says McDonald’s push has actually helped Dunkin’ in the breakfast battle by highlighting that the doughnut chain has the same menu all day. Still, the change has increased competition for diners’ dollars.

“Clearly, the value war is pretty intense,” Travis said in an interview.


10 Nuggets For $1.49? Here’s Why Fast Food Is Ridiculously Cheap Right Now

April 1, 2016

Venessa Wong
Buzzfeed News
Feb 29, 2016
http://www.buzzfeed.com/venessawong/why-fast-food-is-ridiculously-cheap-right-now#.gnYqPoN15

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The country’s largest fast food chains have been showering customers with deals after years of losing out to newer, higher-end chains. And now, in a battle for customers who remain loyal to old-school fast food, the big chains are engaged in a brutal price war.
Fast food companies have always targeted lower-income consumers. What’s different now is that these customers are expected to benefit from lower gas prices, falling unemployment, and rising minimum wages, according to research by investment bank Cowen and Company. And as low-income consumers find more money in their wallets, commodity prices are no longer shooting upward as they did in recent years.
As “forecasts for key restaurant commodities including beef, chicken, pork, dairy and wheat are in-line to below long term averages,” restaurants are particularly eager now to take advantage of the lower costs to boost traffic to stores, said Cowen’s report.
McDonald’s announced that starting Feb. 29, customers could pick two of four “iconic menu items” — a Big Mac, a 10-piece order of Chicken McNuggets, Filet-O-Fish or a Quarter Pounder with Cheese — for $5. This deal replaces the even lower-priced McPick 2 deal launched in January, in which customers could get two items — McChicken, McDouble, mozzarella sticks, or small french fries — for $2.
Meanwhile, Wendy’s has been offering a four for $4 deal. Value monger Burger King has an even cheaper five for $4 promotion, as well as an ongoing two for $5 sandwich deal, and 10 chicken nuggets for $1.49. Even Pizza Hut has a $5 “flavor menu.”
“All the major chains have jumped on the dollar pricing in an effort to maintain share against competitors,” said Darren Tristano, president at restaurant consultancy Technomic.


Yum! Brands keeping headquarters in Louisville, moving executives to Texas

March 1, 2016

Caitlin Bowling
INsider Louisville
February 24, 2016
http://insiderlouisville.com/business/yum-headquarters-louisville-moving-heads/

With Yum! Brands Inc. relocating five key C-suite executives to Plano, Texas, Louisville may become a show headquarters for the restaurant conglomerate, while employees in Texas are the ones actually steering the ship.

Yum Brands Inc. is headquartered at 1900 Colonel Sanders Lane. | Courtesy of Yum! Brands

Yum Brands Inc. is headquartered at 1900 Colonel Sanders Lane. | Courtesy of Yum! Brands

“Whenever you move your C-level team … in effect you are moving your headquarters because that is where your heads are,” said Darren Tristano, president at Technomic, a Chicago-based restaurant industry research firm.

Business First previously reported that Yum CEO Greg Creed, chief public affairs and global nutrition officer Jonathan Blum, chief legal officer Marc Kesselman, chief people officer Tracy Skeans, and a yet-to-be-named CFO will move to Plano, where Yum’s global operations team and its subsidiary Pizza Hut are located.

Yum’s former CFO Pat Grismer resigned effective Feb. 19, Insider Louisville previously reported.

The company is adamant that Louisville is and will remain Yum’s home. Virginia Ferguson, a spokeswoman for Yum, told IL that none of its nearly 1,000 Yum and KFC U.S. employees are moving to Texas.

“We are proud to be here,” Ferguson said.

IL was scheduled to interview Blum this afternoon about the impending move; however, a few minutes before the appointment, IL was told he was suddenly pulled away and would be unavailable for comment. Ferguson forwarded along statements from Yum explaining the decision.

Creed and the other four executives “will be highly mobile, traveling to many of our international markets and offices throughout the year, including Louisville for 1-2 weeks each month,” Ferguson said in an emailed statement. “Given the global nature of our business, which has transformed over the years, the YUM executive team’s office will be in Plano, but they will retain an office in Louisville.”

She also noted that Yum has based its international operations in Texas since 1997, when the company spun-off from PepsiCo.

It makes sense that the company’s leaders would want to be close to its overseas operations, Tristano said. “Today, a lot of the growth restaurant companies are seeing takes place outside our borders.”

Texas also is home to a number of other restaurant chains and restaurant-related businesses, including Pie Five Pizza, Dickey’s Barbecue Pit, Romano’s Macaroni Grill and Apex Restaurant Group.

“Dallas is considered a very big restaurant town,” Tristano said, noting that many industry events and restaurant innovation happens there. It also is warm, has a large population and is somewhat centrally located.

While Louisville city leaders often tout the city’s location and its proximity to other places, the truth is one of the few ways to get a direct flight is to be a box the United Parcel Service is shipping.

The Louisville International Airport has fewer than 20 nonstop flights to cities in the United States. The Dallas/Fort Worth International Airport is a major transportation hub; it has nearly 50 nonstop flights to international cities and countless more within the continental United States.

“There is no way to overlook that,” said Nat Irvin, the Strickler executive in residence and professor of management at the University of Louisville College of Business. “We can get to the airport in 20 minutes from any place in the city, but part of the downside is you can’t get to any place directly.”

And Dallas is closer to China — where Yum will spin-off its operations this year — offering a nonstop flight to Beijing. Although Yum China will technically operate as its own company, Yum leaders will no doubt be keeping a close eye on how the company is faring in China’s sometimes volatile market.

Already, Yum executives spend a good portion of their year abroad, according to the company.

“I think what (the move) represents is the importance of face-to-face communications when you are developing strategy,” Irvin said. “You like to see them; you like to hear them; you like to be close to them.”

The only factor in Yum’s decision, according to Ferguson, was the fact that the company’s global operations offices are in Texas

“Our business is a global business, and it makes sense,” she said.

Tristano said he wouldn’t be surprised if Yum moved more jobs to Texas in the future, but the company also has good reason to remain in Louisville. If the company said it planned to move its headquarters but keep jobs in Louisville, it could end up with a retention problem.

“It would make sense for them to continue to have that (Louisville) location regardless of what they call it,” he said. “This is a less disruptive strategy for them.”

With its name plastered around the city (see KFC Yum! Center), Irvin said he is confident Yum will continue to maintain a large presence in Louisville.

“I think Yum is fully ensconced in this community. The company has a very broad footprint in this community, and I think the heart still remains right there,” Irvin said. “I think what they have made is a decision for the company. I don’t think it’s a detriment to the community — a good idea for them, not necessarily a bad idea for us.”

Still, the decision by Yum is an unusual one.

Tristano could not think of any comparable examples, except possibly Tim Horton’s and Burger King. However, the quandary over where to headquarter those two restaurant chains is the result of their merger back in 2014. As of now, Tim Horton’s base of operations remains in Canada, while Burger King resides in the United States.

Overall, Tristano said he thinks Yum is making good decisions to focus more globally and try to appeal to younger generations.

“They seem to be moving in the right direction strategically.”


Cage-free eggs could boost Bloomin’ Brands’ bottom line

February 29, 2016

Ashley Gurbal Kritzer
Tampa Bay Business Journal
Feb 23, 2016
http://www.bizjournals.com/tampabay/blog/morning-edition/2016/02/cagefree-eggs-could-boost-bloomin-brands-bottom.html

Don’t count the cage-free eggs before they’re hatched, but Bloomin’ Brands Inc.’s latest supplier decision could boost its bottom line.outback-ft-myers-evening-750xx1800-1013-0-104

Tampa-based Bloomin’ (NASDAQ: BLMN) said Monday that it will transition to 100 percent cage-free eggs in its restaurants by 2025. Bloomin’ is the parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar.

“Our guests expect us to source and purchase wholesome ingredients responsibly,” Juan Guerrero, chief global supply chain officer, said in a statement. “We are working with our suppliers to ensure we meet or exceed this deadline.”

Committing to cage-free eggs is a popular move in the restaurant industry. In September, McDonald’s Corp. (NYSE: MCD) said it would shift to cage-free eggs, as is Dunkin’ Donuts (NASDAQ: DNKN) and Taco Bell, which is owned by Yum! Brands Inc. (NYSE: YUM).

Bloomin’ operates close to 1,500 restaurants throughout 48 states, Puerto Rico, Guam and 22 countries.

The cage-free move, Bloomin’ said, “reaffirms the company’s commitment to the humane treatment and handling of animals” — and that’s important to consumers, according to Technomic Inc., a Chicago-based food industry research and consulting firm.

“Cage-free is particularly important right now,” Darren Tristano, Technomic president, wrote in a Feb. 2 blog post. “Forty seven percent of consumers said they are more likely to order dishes made from cage-free eggs or poultry during breakfast dine-out occasions.”

“The preference ties into health and wellness concerns from consumers,” Tristano said.

“Consumers are increasingly concerned about transparency — what’s in their food and where it came from,” he wrote, “and operators and suppliers are feeling the heat.”


Snacks are having a moment and food makers cashing in

February 26, 2016

Samantha Bomkamp
Chicago Tribune
February 22, 2016
http://www.chicagotribune.com/business/ct-snacking-boom-0223-biz-20160219-story.html

The market for snacks, sold at Walgreens and other retailers, is growing rapidly, analysts say, and manufacturers are working to cash in on the popularity. (E. Jason Wambsgans / Chicago Tribune)

The market for snacks, sold at Walgreens and other retailers, is growing rapidly, analysts say, and manufacturers are working to cash in on the popularity. (E. Jason Wambsgans / Chicago Tribune)

Three squares are so passe. Snacking is having a moment, and — you’re driving it.

You could be a 25-year-old Instagram-loving foodie, who shares daily updates of your homemade mini-meals and trendy restaurant tapas. Or a 33-year-old budding entrepreneur, who opts for smoothies and meal replacement bars because you don’t have time to shop, but have no time for junk food, either. Or a 41-year-old father, who indulges in a daily Starbucks run with co-workers. Or a 65-year-old retiree who isn’t up to preparing dinner anymore and opts for a bowl of popcorn or ice cream instead.

Consumers are driving food industry players — manufacturers and restaurants — to introduce items that satisfy a rapidly growing appetite for smaller meals that can be consumed on the run, even though it may not be the healthiest way to10 eat. Whether the fear of calories posted on restaurant menu boards is causing us to order smaller meals or hectic schedules are driving us to this new kind of eating, major food companies have caught on in a big way.

“The tradition of a piece of fruit or a handful of nuts as a snack — those are still there, but overall the definition of a snack has dramatically changed,” said Technomic President Darren Tristano.

Snacks spell big opportunity for food companies because they tend to be more expensive than traditional meal components. And one look around a grocery store shows that retailers like their potential too, as snacks get more prominent space on shelves, with some healthier fare being stocked in the produce department.

At cereal powerhouse Kellogg, whose brands include Pringles, Cheez-It, Keebler and TownHouse crackers, snacks have gone from 20 percent of its business in 2000 to almost 50 percent today.

This year, the company expects brands that have been struggling, like Kashi and Special K, to lead the growth. Both saw strong sales in the early 2000s, but fell out of favor when consumers steered away from “diet food,” Kellogg CEO John Bryant said on a conference call last week.

The brands have been revamped, and boxes include buzzwords like “nourish” instead of “diet,” and Kellogg is focusing the brands on hand-held forms, instead of just cereal by the bowl. “The expectation of consumers in the snack market has changed,” he said.

But Kellogg also expects brands like Pringles and Cheez-Its will be strong, and it is hurrying to develop more single-serve packages for its snacks so they become a grab-and-go item in a convenience or drug store.

At Hormel, whose meat brands including Jenni-O and Spam, it’s Wholly Guacamole that’s stealing the show, particularly in single-serve containers, according to CEO Jeff Ettinger. Hormel also recently introduced Skippy PB Bites with either a crunchy peanut butter or pretzel core.

Oak Brook-based TreeHouse Foods used to count beverages as its biggest category, but a 2014 acquisition propelled its snacks category to No. 1, and it now says it’s the largest private-label trail mix maker in the U.S.

Even health care companies are entering the snack market.

Abbott Laboratories, maker of Pedialyte, Ensure and Similac formula, earlier this month launched a line of snack bars called Curate aimed at adults seeking healthier alternatives to chips or cookies.

And last month, Chicago-based Hillshire Brands introduced a line of snacks aimed squarely at the young Instagram-addicted foodie, launched at a VIP event in New York with a former “Top Chef” contestant and Bravo’s Andy Cohen. The snacks include chicken bites with sauces like mango habanero and spicy chipotle and “small plates” of salame, cheese and crackers.

“Consumers are shifting away from this traditional snacking definition to include a more expanded variety of options to satisfy a more sophisticated food palate,” said Jeff Caswell, vice president and general manager of Hillshire Snacking. “This evolving definition is being spearheaded by millennials. … They have a passion for food exploration and like to try new flavors and push boundaries.”

He said sales of the new line have exceeded expectations.

Millennials, the largest segment of the U.S. population, are driving the snacking industry to create more fresh, healthy and protein-packed options, but other generations are partaking as well. People tend to snack more as they age, in part because older adults don’t have young families to cook for, said Darren Seifer, an NPD Group food and beverage analyst. The biggest snackers are those 55 to 64, NPD’s research shows.

But more snacking doesn’t always mean hitting the vending machine for a bag of M&Ms. Americans are eating fewer sweet snacks, choosing to save them for an evening indulgence, Seifer said. Their consumption fell about 5 percent in the past decade, compared with savory snacks like chips and beef jerky, which grew by 7 percent in the same period. Meanwhile, so-called “better-for-you” snacks like yogurt and cottage cheese cups have grown 25 percent.

“We start off the day with the best of intentions and then about 8 p.m., after you put the kids to bed, we’re allowing ourselves a bit of indulgence,” he said.

Deerfield-based Oreo maker Mondelez has seen both sides of America’s snacking obsession. Spurred by slowing sales of sweet snacks, it introduced Oreo thins to cater to those who want a healthier version. Mondelez, which also makes Ritz crackers, Cadbury chocolate, Sour Patch Kids and Honey Maid graham crackers, says it’s also focusing on smaller sizes for its brands to cater to snackers.

The company already derives 85 percent of its sales from snacks, up 10 percent from a year ago, and it sees a great deal of growth potential this year.

“Why do we like snacks so much? Quite simply, because of their growth potential. Snacking is a $1.2 trillion market, and it’s growing everywhere around the world,” said Mondelez CEO Irene Rosenfeld at a conference last week.

Smaller, more frequent meals may appeal to many Americans, but they’re not necessarily the healthiest option.

“Snacking or frequent eating tends to be less satisfying to your brain,” said Georgie Fear, a registered dietician and author of “Lean Habits For Lifelong Weight Loss.” “It’s hard to feel like we’ve eaten if we’ve just unwrapped a bar.”

In general, frequent snacks lead to “more dishes, more calories, and they’ve also hampered people’s decision-making abilities” because people can use snacks as an emotional crutch, Fear added.

There is a place for healthy snacking, Fear said, but she recommends sticking to options like whole fruit and yogurt. “Many people have gone out of their way to shift to smaller, more frequent meals. And then they (get more information) and think, ‘I’ve been washing that much Tupperware and it’s working against me?’ “


Is Chipotle really America’s ’emotionally abusive boyfriend?’

February 25, 2016

Grace E. Cutler
FoxNews.com
February 18, 2016
http://www.foxnews.com/leisure/2016/02/18/chipotle-survival-part-joke/

 

Chipotle has been the brunt of jokes and hit by lawsuits, but some experts are predicting positive growth figures as early as the end of the year. (AP)

Chipotle has been the brunt of jokes and hit by lawsuits, but some experts are predicting positive growth figures as early as the end of the year. (AP)

On Sunday, TV host and comedian John Oliver skewered Chipotle over its food safety problems.

The host of HBO’s “Last Week Tonight,” called Chipotle “America’s preferred over-the-counter laxative.”

He ran down a list of Chipotle’s problems over the past months, including E. Coli, salmonella and norovirus outbreaks. He also had a mock promo showing mice scurrying over food and cited a fake report about a live bird living in a Florida Chipotle as recently as January.

About America’s continued love of the chain, Oliver quips:

“They know it’s bad and they want it even more: Chipotle is now officially America’s emotionally abusive boyfriend.”

“That’s harsh,” Darren Tristano, president of Technomic, a Chicago-based food research firm said about Oliver’s comment. “They shouldn’t be left off the hook, but they deserve the chance to really get back on track.”

Over the weeks, Chipotle has been the target of jokes and critics alike –and rightly so.

The Food and Drug Administration reports 55 people were infected with E. Coli alone across the U.S., which resulted in 21 reported hospitalizations. The chain is now the focus of a criminal investigation by the FDA and it has been slapped with a slew of lawsuits. The latest one –this week–is from a shareholder suing Chipotle, alleging the fast food chain made false and misleading statements about its business to investors.

Chipotle isn’t the only food supplier to have a major outbreak of food-poisoning. In the 1993, Jack in the Box had an E.Coli crisis stemming from undercooked beef patties. More recently, Blue Bell ice cream experienced a listeria outbreak, which forced the tubs off of store shelves. Both companies were able to fix their problems and turn their image around.

But Chipotle’s marketing has centered on the idea that it makes a high quality food. These outbreaks, and Chipotle’s problems in tracing the source, puts that question.

As way help its tarnished image, Chipotle earlier this month closed more than 2,000 locations to get employees up to speed on changes to its food safety measures. It also announced a $10 million investment in local farmers that supply ingredients to the food company. To help build some media buzz around these efforts, chains gave away free burritos.

The give-away was “clearly part of a much larger plan to rebuild trust with the customers,” Bruce Hennes, managing partner of Hennes Communications, a crisis communications firm based in Cleveland, told the Cleveland Plain Dealer.

Just how long it will take for the company turn around public opinion is still unclear, but some experts are predicting positive growth figures as early as the end of the year.

Is that’s hard to believe? Tristano says not really, given the “overwhelming” loyalty they have with some customer groups, especially the 18-35 male demographic.

“Our research indicates that American consumers are very forgiving with restaurant brands they are loyal to and have developed both an affinity and frequency with,” said Tristano.

So is Chipotle America’s “emotionally abusive boyfriend?” Sounds like for some, it’s more like a relationship on the mend.


Fazoli’s closes only Las Vegas restaurant

February 24, 2016
Jennifer Robison
Las Vegas Review-Journal
February 17, 2016
http://www.reviewjournal.com/business/fazolis-closes-only-las-vegas-restaurant

1004922526_fazolis_021716_3.jpgThere’ll be no more free breadsticks on North Town Center Drive.

Italian fast-food franchise Fazoli’s has quietly closed its lone Las Vegas eatery. The restaurant, behind the 7-Eleven at Town Center and Covington Cross in Summerlin, shut Feb. 8, 15 years to the day after its 2001 debut.

The closure defies broader market trends, as big, national chains including Chick-fil-A and Cracker Barrel prepare market launches for late 2016 and early 2017.

“Las Vegas is definitely a growth market,” said Darren Tristano, president of Chicago-based restaurant consultant Technomic.

So why did operators shutter Fazoli’s?

Company spokeswoman Janet Ritter deferred to the franchisee, Las Vegas-based Glencoe Management, and Glencoe Management didn’t return phone calls. The company’s website said it owns 21 local Burger Kings, including one at 1280 Town Center Drive, next to the former Fazoli’s.

But Ritter said Fazoli’s, a Kentucky chain with 217 U.S. locations mostly in the Midwest and South, “would like to have a presence in Las Vegas, and we are seeking franchisees to open units in the Las Vegas area.”

The Fazoli’s closure capped a market foray that never really picked up steam.

Ritter said she had no information on number or dates of operation of prior local stores, but at least two other Fazoli’s franchises — one on Ft. Apache Road near Rhodes Ranch and another on Eastern Avenue in Silverado Ranch — opened after 2001 and closed years ago.

The 28-year-old company had as many as 300 U.S. restaurants before it began pruning locations in the recession. Each restaurant typically employs 30 to 40 people, Ritter said.

Competition has hurt Fazoli’s, Tristano said.

The U.S. market is saturated with chains, including Panera Bread and Noodles & Co., that serve pasta and pizza. Plus, Fazoli’s straddles a blurry line between fast food and the more upscale fast-casual segment, which includes operators such as Chipotle and Au Bon Pain.

“That’s not a terrible place to be. The problem is, you’re lumped in to some extent with fast food because of the drive-thru and the price points, but the quality is not at the level of a fast-casual restaurant,” Tristano said. “That’s not to say it’s not good quality, but there are so many concepts with customized, prepared-to-order food.”

It didn’t help that Fazoli’s had just a handful of local stores. A franchise needs 20 to 25 locations in a big market to build loyalty and brand awareness, Tristano said.

Still, Fazoli’s seems to have righted its ship: The company said in December that same-store sales were up in 65 of the prior 68 months, including a 3.1 percent jump year over year in November. It opened 10 new franchises in 2014 and 2015.

And restaurant operators continue to salivate over the Southern Nevada market, Tristano said.

“Las Vegas has the demographics and growth that many chain brands are looking for,” he said. “Not all of the markets in the United States are growing, but you’re seeing housing development and population growth there, and that’s a big deal. Chains tend to be prioritizing growth markets.”