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   Volume 8, Issue 37     September 21, 2007 
Weekly News in Review
Max & Erma's triples loss in 3Q, considers sale
Max & Erma's Restaurants Inc. said it is considering selling the chain as it reported its losses in the latest quarter more than tripled.
Read Article    Browse All NewsSource: Pittsburgh Business Times
Woman Suing Restaurant Over Restroom Peepholes
It sent shock waves in late September of last year. Police said employees were climbing above the women’s restroom and watching them through peepholes.
Read Article    Browse All NewsSource: Gray Television Group, Inc.
Burger waste to power buildings
Buildings such as hospitals and theatres are to be powered by waste from McDonald's restaurants.
Read Article    Browse All NewsSource: BBC
Globalization Gone Wild: Hooters Opens in China
When the first Hooters location opened in Clearwater, Fla., in 1983, few could ever have predicted that more than two decades later this down-home, beer-and-wing joint with its scantily clad, well-endowed servers would grow to become a symbol of America, let alone an international sensation.
Read Article    Browse All NewsSource: ABC News
The Big Mac turns 40, museum hams it up for anniversary
The Big Mac, arguably McDonald's most famous sandwich, was first served by its founder Jim Delligatti 40 years ago.
Read Article    Browse All NewsSource: USA Today
Darden's Q1 a good one
Darden Restaurants Inc. announced Tuesday it rang up larger profits and more revenue than projected.
Read Article    Browse All NewsSource: Orlando Business Journal
Wendy's wigs out with new ads
Walk into one of Wendy's 5,900 North America locations this week, and you may think you've walked into a Wendy's commercial.
Read Article    Browse All NewsSource: USA Today
Wendy's Potential Buyers Are Lining Up
More than a dozen parties have signed confidentiality agreements and expressed interest in participating in the sale process for Wendy's International Inc., according to a person familiar with the situation.
Read Article    Browse All NewsSource: Wall Street Journal

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Please Talk to Me
By Roy Bergold

LAST MONTH, WE TALKED ABOUT CUSTOMER SATISFACTION. SINCE THEN it occurred to me that you can't satisfy customers unless you know what you need to do. And, you can't find that out unless you are communicating with your customers. So, this month we are going to cover communication, all kinds of communication.

To start, I want to tell you about the days before voicemail and email. Really, there used to be such days. And, do you know how we conducted business way back then? We killed trees. We had briefcases full of paper, reports, recommendations, memos, and little pink message slips. And, do you know how we dealt with all this paper? I'm about to tell you.

Early in my career, my boss instructed me on how McDonald's wanted me to deal with communication. Every phone message was to be answered in no more than 24 hours. Every memo was to be responded to in 24 hours. No piece of paper was to be handled twice. Read it, and do something about it immediately. No voicemail or email, and, somehow we did it. We set aside one or two hours a day for phone messages and mail. By the way, if Ray Kroc found a phone message on your desk that was older than one day, you were in real trouble. No french fries for a week.

Now, let's fast forward to today.

Why is it that I can't get anyone to talk to me? I call a company to buy something, complain about something, or heaven forbid, to compliment them. I get a computer menu. It takes me through nine choices, none of which bear any resemblance to what I need to talk about. And then there is silence. Never-ending silence. I don't have any idea what to do. So, I push zero for an operator, and the system hangs up on me. (By the way, have you ever heard a menu with a choice to compliment the company?) First solution: All menus should start by giving me the choice to talk to someone. Second solution: If I get voicemail and someone doesn't return the call in one day, I should get a coupon for something from the company. That'll show 'em.

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View updated pricing and information each week on the website for the following food-commodity markets:

Beef, Veal & Lamb View Detail
Assuming no legislative intervention, the US will recommence cattle imports from Canada over the age of 30 months which have been banned since the May 2003 discovery of a BSE infected cow in Alberta. Restrictions will temper over 30 month cattle imports next year. Still, Canadian over 30 cows could add .2% to overall beef production and 2.5% to cow slaughter which may bring a slight boost to beef grind and trimming supplies. Beef packers are anticipated to curtail production at times this fall due to poor margins and a lesser supply of market ready cattle in an attempt to heighten beef prices. Prices per pound FOB from USDA.
Dairy View Detail
August US milk production was 3.4% larger than last year due to a .6% increase in the size of the milk cow herd and a 2.8% rise in milk per cow yields. Milk farmers continue to expand the milk cow herd in response to inflated milk prices and solid profits. Since April, a net of 46,000 head of milk cows has been added to the herd, the biggest increase for the time period on record. Solid milk production gains are anticipated in the coming months which may bring modest relief to inflated dairy prices. Prices per pound, except Class I Cream (hundred weight), from USDA.
Poultry View Detail
Chicken suppliers continue to expand production as the 6 week moving averages for both broiler egg sets (2%) and chick placements (1.8%) are trending above year ago levels. Add to the equation an estimated 1% increase in bird weights and 4th quarter chicken output is projected to track nearly 3% above 2006 levels. However, record high feed costs for chicken producers could lead to various output cutbacks in 2008. Chicken wing prices may be pressured lower next month. The 3 year average decline for the jumbo cut chicken wing market during the next 5 weeks is 16.7%. Prices per pound except eggs (dozen) FOB from USDA.
Seafood View Detail
August US Gulf of Mexico shrimp landings were 22% less than last year and 8.1% lower than the 5 year average for the month. 2007 US shrimp landings through August were 5.8% smaller than 2006. Fairly adequate shrimp supplies are anticipated to persist however due to continued solid imports. The appreciated Canadian dollar is expected to put financial pressure on Canadian seafood suppliers during the fall. Prices for fresh product, unless noted per pound from Fisheries Market News.
Pork View Detail
Pork production last week was 3.6% larger than the previous year. The advent of the circovirus vaccine appears to be extremely successful as hog output since the spring has been trending significantly higher than a year ago. Strong pork production growth (4.4%) is forecasted this fall which should be bearish for the pork markets. The 3 year median decline for the USDA weekly pork cutout average is 7.3% during the next 5 weeks. Prices per pound FOB from USDA.
Produce View Detail
The Idaho potato harvest is progressing putting downward pressure on many of the potato markets. Seasonal charts suggest that the number 2 Idaho potato market could see additional decreases in the coming weeks while the rest of the potato markets should bottom soon. Last year, the number 2 Idaho potato market declined 25% during the next 10 weeks. The tomato markets continue to trade at relatively engaging levels with adequate supplies. However, the tomato markets could become volatile during the early fall as the chief eastern harvest areas transition south. Prices shipping point unless noted (terminal) FOB from USDA
Oil and Grains View Detail
The 2007/08 Australian wheat harvest forecast was cut this week to 15.5 million metric tons, 28% less than the 5 year average. Seasonal pressure could occur on the wheat markets this fall but wheat prices should remain well above 2006 levels. Prices per pound (oils) or bushel (grains) FOB from USDA.
Canned and Frozen Food View Detail
Tomato Products, Canned - The California tomato for canning harvest is projected to reach 10.38 million tons by the end of this week well ahead of prior year averages. The canned tomato markets may be influenced lower this fall. Price per case (6/10) FOB from Supply and Market Report.
Processed Fruits and Vegetables - Both 2007 corn for canning (8.3%) and freezing (5.2%) production are forecasted to decline from last year with the corn for canning output estimate the lowest in over 12 years. The processed corn markets are firm. Prices FOB per case from Supply and Market Report.

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Worst well known restaurant?
What's been your biggest well known restaurant disappointment. Was it the food or service or both?

Managing a seasonal business
I would like your thoughts on managing a restaurant where the business is mostly seasonal. Where I am, it's so hard to survive the slow seasons, and then turn around and staff up for the crush. So many restaurants have failed here over the years, it's discouraging. Yet I know there are restaurants that do it, what's the difference?

Was in Montana recently and many places are importing workers from Eastern Europe.

Would love to hear specific strategies for succeeding in a seasonal environment.

Thanks as always for the insights.

We've been raised hard, not soft

We've been raised hard, not soft. From years on the ground our skin has grown tough, not thin. You have one narrow window of opportunity to eat us, but you'll be robbing the cradle. Some desperate folk steal our unripe, 3 to 4-inch children. Can you imagine! Our roots are thick, tough and ancient. People in Africa call some of us "woo lo gwa". Our exact origins are a mystery. It's a toss up between Africa and South America, or perhaps we were old enough to have originated on Pangeia. Either way our seeds arrived from one continent to the other via ocean currents. We were cultivated in North America over 8,000 years ago and in South America/Africa over 12,000 years ago. But today we can be found growing all over the world, some of us in trees but most of us on vines. We are fruits believe it or not, and we produce flowers that are white. We come in all sizes, shapes and colors, with lumps, bumps, knobs, protrusions, warts, and grooves. With all these complexion problems we are still admired for our beauty, or perhaps our extreme ugliness. We have so many shapes that we have developed numerous functional uses. For soup, we can be the soup, the ladle, the bowl or all three. Some of us are shaped like basketballs, but we don't bounce, so don't try. Others of us look like bananas but you can't bite into them raw, and they don't peel. Our Canteen cousin is aptly named as it can be used to carry water. Many family members are shaped like a Club, and some are carved into breadbaskets. We also come in a Nine-Gallon size, my largest form. Some of us are called Apple, but not of your eye. Some of us are called snake, but we won't slither by. We may not be as high in potassium and carotene as some of our relatives, but we are still a good source of fiber. We have small amounts of calcium, magnesium and a bit of iron and zinc. When ripe we have fair amounts of vitamin C and folic acid.

What am I?

Coconut
Pumpkin
Gourd
Squash


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