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News in Review
Market Reports
Food Quiz
Industry Discussion
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The Path
By: Roy Bergold
It’s time to answer the many e-mails I’ve received concerning how to increase sales in your restaurants on an individual basis. Here’s the way I did local store marketing when I was in the trenches. (Some of this you have heard before and some you have practiced, but here it is in one place.)
Let’s make the assumption that your basics—quality, service, cleanliness, and value—are OK. If not, fix them quick. You can’t increase sales if it takes 30 minutes to get a clean fork, the place looks like a gym, and it takes two credit cards to pay the bill.
Are you ready for the secret? It’s called Path of Least Resistance, or POLR. Always think POLR. Look for the easiest way to raise sales. Harvest the tree from the bottom. Do it the smart way.
With POLR in mind, turn your attention to your current customers. After all, they already come to you. They will be easier to get one more visit from. But how? Talk to them, find out what they want.
Usually it’s rewards or excitement. Rewards could be anything from a free coffee once in a while to a frequent-dining club. Maybe they have never tried your breakfast; they only come for lunch. Maybe they only come during the week and never thought to come on the weekend. After all, we are creatures of habit. Give them a reason to amend their habits. A special timed promotion that’s good only on Saturday often works.
If it’s excitement they are after, again, go POLR. What’s the easiest thing to do? If you’re lucky enough to have national or regional promotions provided by your licensor, take full advantage of them. Don’t just put up the point-of-purchase signs and give out the premium. Get into it. You have a professional promotion, add the local aspect. If it’s pirates, turn the whole store into pirates. Go to the local theatre and borrow their pirate movie posters, lobby cards, and whatever else they have. While you’re at it, put together a cross promotion making their ticket good for something at your restaurant within one hour of the end of a movie. Give the crew a costume contest with a nice prize. Have a pirate coloring contest for the kids. Have a local history teacher give a talk about the history of pirates on Sunday afternoon.
Ask the crew what they would like to do. Your crew is a constant source of ideas. After all, they know the customers. They see them every day. “What can we do to get old Pete in one more time?”
The next easiest POLR is the store. Your restaurant is a huge sign that you can take advantage of. It is your package on the shelf. Make sure it is the most attractive one there. Spruce it up. A couple of potted plants can make a big difference. If you can, have an outside reader board talking about your latest marketing effort. Have a sign inside announcing the next promotion...
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"Success is not measured by what you do in relation to others, but success is measured by what you do in relation to what you could have done or been."
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View updated pricing and information each week on the website for the following food-commodity markets:
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Beef, Veal & Lamb |
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Beef production last week rose 2.7% and was 6.4% larger than a year ago. The USDA choice beef cutout may be topping although elevated price levels could endure over the next few weeks. Early April engaging beef prices spurred robust beef retail feature activity plans for May pressuring beef prices upward as April progressed. However, will consumers purchase the beef this month with the ongoing sluggish economy? May consumer habits could greatly impact beef supply and pricing patterns for the summer. Prices per pound FOB from USDA.
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Dairy |
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The April milk feed price ratio declined for the 7th consecutive month suggesting poor margins for milk farmers. In time, milk farmers should reduce the overall milk cow herd which will temper milk output growth further. Still, March (6.5%) and early April (1.1%) milk cow slaughter were less than a year ago. The butter market is edging upward and even higher prices may be impending. The current US butter price is roughly $.40 under the international market which should spur strong US exports. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The April broiler (chicken) feed price ratio was the lowest on record indicating depleted profits for chicken producers. This models proposal was confirmed earlier in the week as Tyson reported extremely poor margins for their chicken segment. Various chicken producers are reacting to waning profits by cutting chicken output plans. The 6 week moving average for broiler egg sets is 1.4% less than a year ago implying that chicken output could fall below 2007 levels as early as June. Existing chicken breast and wing prices may be the lowest we experience for some time to come. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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Newfoundland snow crab fishermen margins are reported to be poor due in part to rising fuel costs. Newfoundland snow crab fishing could be slowed in the coming weeks. Newfoundland snow crab landings are reported to have reached 8% of quota to date. The US snow crab leg market is moving lower. Reports of shrimp industry child labor violations in Southeast Asia are circulating and may be bearish for shrimp demand. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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The April hog feed price ratio declined from the prior month and was the lowest since December of 1998 suggesting historically poor margins for hog farmers. Modest swine breeding herd liquidation is likely progressing. March sow slaughter was 5.2% larger than a year ago. Declining pork packer margins could limit pork output this week which may be fairly bullish for the pork markets. But technical charts suggest that the pork cutout index may steady soon. Prices per pound FOB from USDA.
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Produce |
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The Huron lettuce harvest is anticipated to wind down this week putting the supply onus on the Salinas California area. Lettuce weights from Salinas have been light. In addition, acreage is anticipated to be down compared to 2007. Both of these factors could push lettuce prices modestly upward during the next week. The Texas onion harvest is progressing and shipments are expected to remain adequate through May. Currently, Texas accounts for roughly 50% of the US onion supply. The tomato markets are fairly steady but the chief harvest areas will transition north soon. Prices shipping point unless noted (terminal) FOB from USDA
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Oil and Grains |
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The food versus fuel debate is heating up regarding the US ethanol industrys building use of grain corn. The grain markets are expected to remain volatile. Prices per pound (oils) or bushel (grains) FOB from USDA.
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Canned and Frozen Food |
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Tomato Products, Canned - Midwestern tomato transplanting is behind due to challenging weather and field conditions. Some modest market advancement is noted below and additional prices increases may be forthcoming. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - Most markets are advancing due to relatively tight supply levels. Various order restrictions are in place for canned vegetable products. Steady to higher processed vegetable prices are expected this summer. Prices FOB per case from Supply and Market Report.
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Fryer Shortening savings
I thought I would share with everyone something. I will admit that up until recently we have not been very good about straining our fryers. We are always short handed and it is such a crap job we would often just use it until it was smoking and then change it out without ever straining. I'm a little embarrassed to admit this, but it's true.
Well, I can no longer afford this. It's getting too costly. I have begun straining it religiously everyday. Our fryers don't get a lot of use. Before we started straining the oil would last about 3 days. Now with straining it everyday I am approaching close to 2 weeks with this batch.
This is going to save me a lot of money.
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Friends and Family
How do you handle friends and family that continually think they should get a special deal?
What is it with these people?
Do they think I pay less for the food I feed to them?
If that's the case, I should start taking it from the garbage can. I did an hors doeuvre party last weekend for people who say the are our "friends". They couldn't tell us for certain how many people...cause invitation was word of mouth. They said about 100. It was more like 150. Didn't want dinner. Just appetizers and drinks. Heres the kicker. Just do it like you did Johnny's party!!? Johnnys party was 14 months ago. So I am in the hot seat. If I put out just a few of this and a few of that....and they scarf it down..I look like I don't know how to feed that many people...that many being unklnown. Since I know these "friends"-I know that people..from all walks of life..all income levels..etc. So..I put out quesadillas, wings, meatballs, bruschetta, deviled eggs, crackers and cheese, veg platter and fried veggies. Plus all the chips, pretzles etc. It should have been about $1400 for 100 people. I knew we would have an exceptional bar. I charged $800 for the food. Now these people who wanted no input and gave me nothing to go by..are complaining. I know it is my fault for not pricing it for them ahead of time. Now they are asking for some money back!!! We now can be certain that these are not friends. Part of me wants to send them the menu with the items circled and the price it should have been for the # of people they had along with a copy of what I actually charged. If I don't refund some money..then it will go around this small town like wildfire. My long term answer to this is I just won't take these friends and family parties anymore. I am so mad I could spit nails.
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The Greatest Stink When Dried
Despite our lack of importance as a source of nutrition, we contribute to the enjoyment of what you eat in a big way. We are the fragrant leaves of any various annual or perennial plants that grow in temperate zones and do not have woody stems. We come fresh, dried, or freeze-dried. We emit the greatest stink when we are dried, but being that we are shriveled up and dead, that pungency fades fast. We add scent, flavor, and color to such a degree that certain foods can not exist without us. My flavor comes from essential oils stored in leaves, stems, or flowers. These flavors are released through heat or processing. We have a popular club in France. We are essential in soup, stock, tomato sauce, pesto, pickles, tea, oils, and butters. We can be blended, infused, roasted, used as a plate garnish or a decoration on cakes. We are used everyday in all seasons. One of use even dresses up like a Christmas tree for the holidays. We aid in digestion and can help keep your breath fresh. Our medical uses are vast, including aid with sleeping, relieving sinus congestion, calming upset stomachs as well as helping to contribute to emotional stability and heightened sexual sensitivity. Our lure is tremendous and our popularity is always growing. From chefs to pharmacists, from fragrance manufacturers to healers, from Babylonian clay tablets to sophisticated infusions we will someday take over the world! Oh yeah, we also taste good.
What am I?
The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.
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