‘The Founder’ Offers Nostalgia, Inspiration For A McDonald’s That’s Come A Ways Since ‘Super Size Me’

January 25, 2017

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http://www.forbes.com/sites/darrentristano/2017/01/20/the-founder-offers-nostalgia-and-inspiration-for-a-mcdonalds-thats-come-a-long-way-since-super-size-me/#58d92d12634f

I am proud to say that the late longtime McDonald’s CEO Ray Kroc and I were both born in Chicagoland in Oak Park and graduated from Oak Park and River Forest High School. But while Kroc spent his life building a global mega-burger brand, I’ve spent mine eating his burgers, French fries and drinking his shakes.

Kroc is legendary in the foodservice business. His passion, energy and determination fueled his competitive spirit and has served as an inspiration for many of today’s successful brands.

Today’s consumer may not understand the importance of fast food and its place in history. Kroc redefined the term convenience through the expansion of the McDonald brothers’ Speedee service system and gave Americans a consistent, affordable and fast option to dine away from home. The chain’s efficient systems in the back-of-house and focused customer service not only served billions but created millions of jobs. Through innovation and drive, this founder invested in a business that has stood the test of time.

This story, as told in the new movie The Founder, is a classic representation of the American dream as realized by an ambitious and aggressive salesman risking everything to invest in a blue sky idea. Choosing hard working franchisees and gaining the insight of a few smart people along the way, he was able to navigate obstacles that stood in the way of his success. The portrayal of Ray Kroc by Michael Keaton gives the audience a taste of his persistent, aggressive and ruthless tactics that allowed a businessman in the 1950s to achieve his goals and build a food service empire.

So how could the portrait of the company in this movie impact visits to McDonald’s restaurants? Will consumers leave the theater with their own renewed sense of personal ambition and strong sense of respect for an American institution or will they continue to see fast food giants in an increasingly negative light?

After spending the last 24 years doing research at food service consultancy Technomic, I believe the movie will meet with a favorable reaction from consumers. Younger generations who grew up with the brand will be able to better relate to the story and begin to emotionally connect to a brand they are familiar with but perhaps outgrew as they aged beyond happy meals, play places and fun characters like Grimace, The Hamburglar and Mayor McCheese. Millennial consumers who grew up eating at McDonald’s and often finding their first employment at there will reconnect with a brand that served them convenient breakfasts, café beverages and affordable dollar menu items. Older Gen X and Boomer generations will reminisce by finding their way back to McDonald’s for a nostalgic signature Big Mac or Quarter Pounder. They will remember the legendary jingle “two all-beef patties, special sauce, lettuce cheese, pickles, onions on a sesame seed bun” as they sink their teeth into a fresh Big Mac which can now be customized into three different sizes for any appetite.

It wasn’t that long ago that Super Size Me hit the big screen and outraged Americans. But since 2003, McDonald’s has dropped super sizing, focused on improving the quality of their ingredients, enhanced their supply chain practices supporting animal welfare and worked hard to maintain convenience, affordability and consistency across their 14,000-plus U.S. restaurants and global locations. Although this movie likely won’t have a significant effect on traffic to the stores, it’s more likely that moviegoers will consider McDonald’s a bit more in the short term and patronize a business that has been a pillar of our post-war culture.

I enjoyed the movie with my son and then we stopped in to our local McDonald’s for a couple of Big Macs and apple pies. McDonald’s has always been a part of my life and I don’t ever think the day will come that I won’t drive through or stop in for a fast food bite of nostalgia and some great family memories from my parents and with my children.

 


Top 3 Food Trends 2017: Why These Foods Should be in Your Diet?

January 13, 2017

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Copyright © 2017 MSTARSNEWS.COM All rights reserved
http://mstarsnews.musictimes.com/articles/117911/20170102/top-3-food-trends-2017-why-foods-diet.htm

Haircuts and clothes are not the only things going out of style each year. Food, of course, is no exception, though all predicted food trends 2017 may not usually take off. Both nutritionists and food experts saw through predictions about food trends 2017 and offer advice on which food should be included in your diet.

Food Trends 2017: Organic Food
There is no doubt that the new subsets of a broader food trend 2017 are the organic, antibiotic-free and hormone-free foods. According to The Sydney Morning Herald, consumers are now becoming more and more aware about what is really going on with their bodies, more especially with their kids’ bodies.

As a response to these needs, food chains and restaurants including Subway, Starbucks, and McDonald’s are starting to impose modifications on the way they source their eggs, meat and other ingredients. This is among the food trend 2017 that will continue throughout the year.

Food Trends 2017: Savory Yogurt
With different variations available, savory yogurts are increasingly becoming popular according to Consumer Reports. Although they are often lower in calories, savory yogurts are in fact a good source of protein and calcium.

You can also make some twist with your savory yogurt. A blend of cucumbers and chopped tomatoes, a sprinkle of the Middle Eastern herb blend za’atar and pitted black olives will definitely make you a perfect bowl of savory yogurt. This blend can also be a great substitute for fatty sour-cream dips.

Food Trends 2017: Poke
A Hawaiian specialty spreading fast across the U.S., poke is made of fresh octopus or tuna, cubed and mixed with sesame oil, green onions and soy sauce. Poke is served over rice.

President of Technomic, Darren Tristano, explained that the specialty food will have its eventual shift from fine dining restaurants to niche restaurants. He believed that people will begin seeing more around the poke trend, which is considered among the hottest food trends 2017 by the National Restaurant Association.

According to the National Restaurant Association’s senior vice-president, Hudson Riehle, today’s menu trends are gradually shifting from ingredient-based items to concept-based ideas. This shift actually reflects consumers’ overall lifestyle philosophies, including environmental sustainability and nutrition.

 


Restaurants could get more expensive in 2017: here are 3 ways to save when you dine out

January 11, 2017

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By James Dennin
https://mic.com/articles/164756/restaurants-could-get-more-expensive-in-2017-here-are-3-ways-to-save-when-you-dine-out#.gIsHHUZAZ 

Time to break out Dad’s old cookbooks: Restaurants are likely to get more expensive in 2017.

For one, a wave of state-level minimum-wage hikes across the country could make labor more expensive — which could prompt restaurants to raise their prices by as much as 5% in 2017, Darren Tristano, CEO of food industry analysis firm Technomic, told CNBC.

That’s roughly double the typical inflation-driven annual hikes of 2-2.5%, he said.

What’s more, there are pressures beyond minimum wage laws pushing U.S. restaurants to pay workers more: The number of eateries has grown since 2009, according to Thrillist, while the number of immigrant restaurant workers has fallen. Those workers therefore have more bargaining power over pay.

If establishments then pass higher costs to patrons, the price of dining out could eat up even more of your paycheck.

Millennials in the United States already spend an average of $103 a month eating out, according to a 2016 survey from TD Bank. (If you live in an expensive city like New York or San Francisco, that figure might make you lol.)

Regardless of where you live, one obvious way to be thriftier this year is to cut down on big-spender nights full of surf and turf. But realistically, no matter how hard you try, you’ll inevitably end up dropping cash on date nights, celebratory toasts — and the unavoidable best friend’s birthday dinner.

So here are a few ways to treat yourself without breaking the bank.

1. Go out to lunch instead of dinner — and ditch dessert
Research shows restaurants face harsher competition for nighttime diners than they do during the day, which often prompts them to offer the same exact dishes for cheaper.

At Jean-Georges in New York City, for instance, the difference is stark: Three courses plus dessert will set you back $84 at lunchtime, while the same offering at dinner is $118.

Beyond that?

The easiest way to save money on a restaurant meal is to abstain from the little extras, like the fried appetizer or that delicious — but unnecessary — lava cake.

Indeed, one of the most effective ways to cut costs while eating out is eliminating dessert, Steve Dublanica, author of industry tell-all Waiter Rant told Real Simple.

That’s because many restaurants outsource dessert production to another bakery and then jack up the price. No point in paying premium for a frozen dessert, especially if there’s an ice-cream parlor or bakery on the way home.

2. BYOB, especially wine
Many personal finance guides recommend the extremely restrained practice of ordering a glass of water with your meal: Water, unlike other beverages, often comes with the meal gratis.

Seriously, don’t roll your eyes.

Industry journals actually recommend restaurants mark up booze between four and five times, depending on other costs and your desired profit margin.

That means that a middling $10 bottle of wine will set you back $40 or even $50 if you want to drink it in a restaurant.

Womp womp.

If washing down your steak with water seems a bit spartan, consider finding restaurants nearby that allow you to bring your own beverage.

OpenTable and FourSquare both have categories for these dining options, although corkage fees apply, usually between $10 and $20.

Still, at $15 for a five-liter box of Franzia — which works out to roughly $2.25 per traditional 750-milliliter bottle — will more than make up pulling the trigger on that third course.

Too much of a snob for that two-buck Chuck? Here are some cheap-but-not-horrifying options from $6 to $27.

3. Ditch brunch — it’s not worth it
Savvy industry types say clocking your meal in terms of total dollars and cents spent is the wrong way to go about it.

After all, that 32-ounce ribeye may be pricier than a sensible bowl of pasta, but the ribeye cost the restaurant a lot more money to buy in the first place — and the pasta is likely to be marked up way more than it’s worth.

There are other factors to consider when dining out.

If you’re in a steakhouse, your order may have benefitted from an aging cellar or other fancy treatment that makes the steak taste better than what you could make at home: So you are arguably getting decent value — and are wasting your cash on that sad “garden salad.”

This line of thinking holds that if you’re going to eat out at all, you might as well spend a little extra on the things that actually make a restaurant meal special as opposed to foods you can just make yourself.

On that score?

It might be time to break up with your most insufferable millennial pastime, brunch. The meal is replete with cheap foods like eggs and pancakes — both of which you can prepare far more inexpensively at home.

At the very least, it’s a good excuse to finally learn to make that bacon-and-egg breakfast poutine.

 


2017 Looking Bright for Restaurant Seafood Sales

January 10, 2017

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By Christine Blank, Contributing Editor
© 2016 Diversified Communications. All rights reserved.
http://www.seafoodsource.com/news/foodservice-retail/2017-looking-bright-for-restaurant-seafood-sales

Seafood restaurants – and those that serve seafood – are expected to perform well in both the United States and the United Kingdom in 2017.

“Right now, consumers should be in a pretty good place, with regard to the economy. All of the indicators, including unemployment, are trending positive,” Darren Tristano, president of foodservice research and consulting firm Technomic, told SeafoodSource.

As a result, spending at higher-end restaurants that serve seafood will rise, Tristano said. In addition to an increase in consumer spending, United States businesses will have increased expense accounts and take clients out to dinner more.

Restaurant chains like Ruth’s Chris, Fleming’s and other upscale chains are expected to perform well, according to Tristano.

“Steakhouses will continue to pick up, and seafood will do well in the steakhouse format,” he said.

In addition, “more polished casual restaurants” such as Bonefish Grill and Legal Sea Foods will also thrive, Tristano said.

In the U.K., eating seafood in restaurants is also expected to rise, as consumers dine out more and seek healthy, sustainable seafood. Over the last year, seafood servings in U.K. restaurants increased 2.3 percent to 979 million, as restaurant visits also grew 1.5 percent, according to NPD Group – Crest in the U.K.

The biggest trend affecting seafood served in restaurants is sustainability, Tristano said. The health, ethical and environmental attributes of meals are increasingly important to consumers, according to one of NPD Crest’s top five foodservice trends for 2017.

Sustainability is here to stay – and it will continue to increase [in importance to consumers],” Tristano said.

Consumers will continue to seek out seafood for its health benefits, according to Tristano.

However, because of the inherently higher price of seafood versus other proteins, restaurant operators need to offer a mix of seafood species at various price points to “raise the appeal of the protein.”

“For example, you can have Chilean sea bass at one end and tilapia at the other end. Or, in addition to Chilean sea bass, you can add in bluegill and other types of striped bass. You can get it down to an area that is more affordable and approachable for consumers,” Tristano said.

Seafood at restaurants is already becoming more approachable, thanks to fast-casual restaurants that are performing well, such as Luke’s Lobster and Rubio’s Coastal Grill. Even quick service seafood chains such as Captain D’s are performing well, according to Tristano.

The types of seafood dishes that will perform well in 2017 include sushi, sushi burritos, poke and calamari, “a product that is becoming more approachable,” Tristano said.

“Poke is taking off across the nation,” he added. “We are seeing a lot more poke bowls and concepts that are getting into raw ahi and salmon.”

Up-and-coming sushi burrito restaurants in the U.S. include Sushiritto in New York and San Francisco, Chicago-based Sushi Burrito and SeoulSpice in Washington, D.C.

Meanwhile, the other top NPD Crest trends for foodservice operators in 2017 are:

  • Restaurants must provide different delivery options (potentially use a delivery aggregator) to complement the traditional sit down format.
  • To maintain sales growth and consumer engagement, outlets must deliver a great experience, with a choice of quality meal options.
  • Consumers are interested in buying locally-sourced food. However, they will not accept lower quality.
  • Consumers like variety but they do enjoy their traditional favorites with a fresh twist.

McDonald’s Turnaround Fails to Get More Customers in Door

October 26, 2016

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Leslie Patton
Bloomberg
http://www.bloomberg.com/news/articles/2016-10-26/mcdonald-s-turnaround-fails-to-get-more-customers-in-the-door

McDonald’s Corp. has figured out how to capitalize on the popularity of its breakfast menu, stop a slide in same-store sales and cut corporate overhead. What it hasn’t figured out is how to get more customers into its restaurants.

The world’s biggest fast-food chain is facing its fourth straight year of U.S. traffic declines, according to internal company documents obtained by Bloomberg. The drop follows at least four consecutive years of customer gains.

“Growing guest counts is our main challenge,” said an e-mail recap of a September meeting among McDonald’s franchise leaders and company executives. “Over the past 12 months, we have been pretty flat.”

The only way to build a sustainable business is to show progress on three key areas: sales, guest counts and cash flow, the e-mail said. “And today we are making uneven progress.”

McDonald’s declined to comment on the notes summarizing the meeting with franchise leaders.

McDonald’s last week reported third-quarter earnings and revenue that topped estimates as results in markets abroad, such as the U.K. and Germany, helped results. The company’s division known as international lead markets boosted same-store sales by 3.3 percent. It wasn’t quite as rosy in the U.S., where sales increased just 1.3 percent.

McDonald’s has made progress in the U.S. since Chief Executive Officer Steve Easterbrook took over in March 2015, but there’s still work to be done. He’s revamped drive-thru ordering and improved food quality by getting rid of certain antibiotics from chicken and switching to real butter in Egg McMuffins. While the introduction of all-day breakfast and speedier kitchens have provided a bump, they may not be the long-term catalyst the chain needs.

The stock began climbing about a year ago after the breakfast expansion, gaining 26 percent in 2015. But the shares haven’t fared as well lately. Shares fell 1 percent to $111.54 at 9:57 a.m. in New York on Wednesday. The stock had lost 4.6 percent this year, through Tuesday’s close.

“McDonald’s has become less relevant to the younger generations,” said Darren Tristano, president at industry researcher Technomic in Chicago.

Three Areas
To lure more U.S. customers, the company is focused on three segments, according to the the document: diners who frequent the chain for breakfast and coffee, those who go primarily for lunch, and families and children.

“We’ve talked about our main focus being growing guest counts, certainly in the U.S.,” Chief Financial Officer Kevin Ozan said during a conference call last week.

Through the third quarter, McDonald’s comparable customer counts are down 0.1 percent this year, compared with a 3.1 drop in the same period in 2015, according to a company filing. The U.S. restaurant industry also is facing a broader slowdown as consumers dine out less due to the turbulent election season and cheaper grocery-store prices.

To better compete, restaurants are aggressively discounting fare with offers such as 50-cent corn dogs at Sonic and $1.49 chicken nuggets at Burger King. But those deals haven’t helped so far. Burger King owner Restaurant Brands International Inc. and drive-in chain Sonic Corp. this week reported disappointing U.S. sales in the latest quarter.

Last year, McDonald’s U.S. traffic declined 3 percent, following a 4.1 percent drop in 2014. Customer counts also fell in 2013, filings show. To reverse the trend, McDonald’s needs to stick to its core identity of convenience and affordability, while also improving ingredients, Tristano said.

“It’s hard to imagine they’re going to be able to compete with better burger and fast casual,” he said, referring to chains like Shake Shack Inc. and Panera Bread Co. “They have to operate within their customers’ perception of their brand.”


Why fast-food chains are making ‘increasingly outrageous’ creations to get you through the door

September 30, 2016

imrsBy Becky Krystal
The Washington Post
https://www.washingtonpost.com/news/going-out-guide/wp/2016/09/28/why-fast-food-restaurants-are-coming-up-with-increasingly-outrageous-ways-to-get-you-through-the-door/

Call them what you will. A sign of the apocalypse. Unabashed marketing ploys. The anti-kale. However you view the latest splashy fast-food innovations, know this: They’re probably not going anywhere. At least for now.

The latest of these creations to be foisted onto America: Pizza Hut’s Grilled Cheese Stuffed Crust Pizza, which features mozzarella and cheddar baked into a crust that’s topped with bread crumbs and melted butter. Close relatives of recent vintage include Burger King’s Whopperrito and Mac n’ Cheetos, KFC’s Double Down, Pizza Hut’s hot-dog-crust pies and Taco Bell’s Doritos Locos Tacos.

Such creations, often referred to as stunt foods or limited-time offers if they’re temporary, aren’t concocted in a vacuum, especially since they can take months or even years to develop. In the last few years, the trend has grown amid efforts to lure customers back into fast-food restaurants, as well as diners’ quest for novel items to share on social media.

Now it seems like each release is wackier than the last. “Like clickbait, the concepts are so unbelievable, so shocking, so Onion-headline-esque that they work,” said Sophie Egan, author of “Devoured,” an exploration of the modern American diet. “They’re irresistible.”

The wave of headline-grabbing fast-food items has its roots in the recession, when the industry entered a slow-down period that lasted through 2014. “A lot of these companies were trying anything to get customers back” during that time, said Sam Oches, the editorial director of Food News Media.

Ask observers and analysts what particular promotion was the turning point in paving the way for successors, and you’re likely to get one of two answers: KFC’s Double Down, a bacon, cheese and Colonel Sauce sandwich that used fried chicken fillets as a bun, and Taco Bell’s Doritos Locos Tacos. (Not surprisingly, both chains are part of the same parent company, Yum! Brands, along with Pizza Hut.)

Launched in 2012, Taco Bell’s Doritos-taco mashup took two years to develop. The fast-food chain sold 100 million units in the first 10 weeks and surpassed the $1 billion sales mark the following year. “The Doritos Locos Taco was a pivotal moment in our brand’s innovation journey,” said Rob Poestch, Taco Bell’s director of public affairs and engagement.

Coming next year: The Naked Chicken Chalupa with a fried chicken shell.

Why do they do it?
Despite the effort these foods take to develop, most aren’t intended to be sustainable as long-term menu additions. “It’s almost never about making money off the product,” said Darren Tristano, president of the food industry analysis firm Technomic.

In fact, the bestselling items at fast-food restaurants tend not to be the wacky mashups, but the classic offerings — Taco Bell’s standard tacos and burritos, for example.

The point of the limited-time offers, as Taco Bell’s head of social insights, Ben Miller, told the Atlantic, is “getting people in the door.” Tristano also said it’s about taking money away from competitors and making companies seem innovative and appealing.

So why do companies need to invent excuses for you to come in? The main reason is competition, and not just from their immediate fast-food brethren. Fast-casual restaurants such as Cava Grill, Chipotle and &pizza have moved in on the fast-food market and are growing at a faster rate, said Elizabeth Friend, a Euromonitor International strategy analyst. From 2014 to 2015, fast-casual brands grew at a rate of 10.2 percent, compared to 3.1 percent for the rest of the fast establishments.

Years ago, a diner’s only option for getting food quickly was the local drive-through. Now, “It’s really easy to get food quickly with minimal effort,” Friend said, pointing to such delivery apps as UberEats and GrubHub in addition to grocery stores with hot bars and prepared food offerings.

“Convenience is a very strong factor,” Tristano said. And if fast food isn’t as convenient as other options, then brands have got to think of something else.

A crazy fast-food item might be the only nudge a diner needs to walk into a Taco Bell or Burger King. If they’ve seen news coverage or a post on social media, the restaurant might later be at the top of their mind when they’re trying to decide where to go.

Why does it work?
No doubt the visuals are especially compelling and share-worthy, which says as much about consumers as it does about the brands hawking them. “The vast majority of us, we don’t have a lot of exciting things that happen to us” on a daily basis, said Brian Wansink, author of “Slim by Design” and the director of Cornell University’s Food and Brand Lab.

By trying one of these flashy foods and photographing them, people are showing that they’re willing to try something new. And like most food photography, those social media-friendly images are aspirational. They aren’t usually representative of our diet, a cultural disconnect that Wansink, in a study of historic paintings, has shown goes back well before the advent of fast food and the Internet, let alone cameras.

The whole experience suggests that consumers are full of contradictions. We make an effort to eat well but still want to reject the health-food guilt, at least once in a while. “We want to feel that we’ve treated ourselves. We want to feel that we’ve experienced new life experiences, and food is part of that,” Egan said.

Diners are also downright curious to know what something new tastes like, which may be more human nature than food culture. “You just can’t help yourself,” she said.

So what’s next for stunt foods?

As long as people keep paying attention to them and talking about them, the short term expectation is that they’ll become “increasingly outrageous,” Technomic’s Tristano said.

In the long-term, though, the “the tide of consumer empowerment” (see: nutrition labels, the fight against GMOs, etc.) is turning, and people may begin to call these foods out as, well, stunts.

The feeling is that “it will no longer be smart business to rely on stunts, and instead [companies will] start to take more of the cues from what these fast-casual chains are doing,” Egan said, referring to fast-casual’s more customized meals, upscale decor and values regarding the environment, sourcing, health and social issues.

r they might try stunts of a different sort.

After all, Pizza Hut did recently reveal a turntable pizza box.


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

September 26, 2016

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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.”