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News in Review
Market Reports
Food Quiz
Industry Discussion
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Reputation on the Internet
By: Steve Weiss
In January, QSR explored the business concerns of a dozen influential industry executives as they headed into the New Year. One of the more prominent findings of the study was the considerable concern expressed over what to do about marketing. Tight budgets, increased accountability, weakening sales, and an ever-growing plethora of marketing platforms seemed to provide the perfect storm for strategic stupefaction and tactical confusion.
Thanks to modern-day technology, marketers must invest their efforts in not one, but two disparate and difficult consumer worlds. The first of these is the more familiar world of external reality serviced by traditional presentational media (i.e., television, radio, print, billboards, movies, event sponsorships, PR), relying upon variations of a classic "pile it high and point to it" approach. The second world is the hugely interior and interactive universe of Web-based media, where the customer-driven rules of marketing engagement are often as different as the Cineplex is from YouTube, and stadium sports are from World of Warcraft.
As recently reported in this space, it might be that television is far from a dying medium, but the Internet has also taken some mighty steps away from the cradle. Today the best research that money can buy tells us that the younger demographics who are the industry's best customers spend about an equal amount of daily time watching the tube and being on the computer, and heaven help those of us in marketing who fail to get the difference.
At this moment a lot of the discussion about the unique and evolving influence of the Web is centering on the expanding notion of searches and specifically on the tactics of search engine optimization (SEO). Industry sources report that the top five Web search engines (Google, Yahoo, Microsoft, AOL, Ask) handle somewhere in excess of 10 billion searches per month. Not to put too fine a point on it, but the general aim of SEO is to get my Web site listed as high in the search returns as possible, and is based upon the search engines' guarded exploratory algorithms. These algorithms factor in such things as site content, the use of keywords, embedded links to other reputable Web sites, and, increasingly, anticipation of prior search behavior.
None of this might make a great difference to quick-service executives, who after all are not attempting (with the exception of heavy home delivery outfits like the pizza chains) to sell much of their product online. Even considering that the No. 1 local area search on the Internet is "restaurants," there is still a tendency in the quick-service industry to view the Internet as an information source and brand-building medium rather than as a marketplace. People who want to know McDonald's calorie counts or to see if Chipotle has a store in the area, for example, simply go to the parent company sites, and for the rest there...
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"The true measure of a man's wealth is in the things he can afford not to buy."
Ralph Waldo Emerson
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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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Most of the beef markets are turning lower now that we have entered into the mid-summer sluggish demand period. The 5 year average choice beef cutout market decline during the next 2 weeks is 7% which suggests the index will fall to roughly $161- still historically inflated. Most of the price depreciation in the next few weeks could occur in the beef middle meat markets while beef grinds and trimmings may be supported by retail feature activity. June retail beef prices were 3% more than last year and a record high. Prices per pound FOB from USDA.
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Dairy |
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May US butter exports were more than 6 times larger than the prior year. At 20 million pounds the May butter export increase was virtually even with the domestic output increase for the month. Current US butter prices are $.40 under the international market. US butter exports should remain strong. History suggests the butter market could modestly strengthen over the next 2 weeks. May US cheese exports were 30% more than 2007. The CME cheese markets typically trend upward in August. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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May US chicken exports were 60% larger than last year. Despite record leg quarter prices, current US chicken exports are reported to be strong. Inflated chicken leg quarter prices are anticipated to persevere through the summer. The chicken breast markets have turned seasonally downward. Additional modest chicken breast market declines could occur over the next few weeks before the breast markets move higher. Broiler egg sets last week were 3.5% less than a year ago. Chicken output cutbacks could add upward pressure to the markets later this summer. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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Total May US shrimp imports were 3.8% larger than last year. Still, the increase was due to a rise in processed shrimp trade. May imports of ?shell on? shrimp were actually 3% less than 2007. The shrimp markets are firm due in part to a devalued US dollar and slowed US Gulf of Mexico shrimp landings. Inflated shrimp prices may persist. 2008 through May US salmon filet/steak imports were 5% less than 2007. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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May US pork exports remained strong with trade 96% larger than a year ago. 2008 through May US pork exports were 59.6% bigger than the previous year. Solid exports may continue to support pork prices in the coming months. Rising exports to Mexico are influencing the ham market higher. Cyclical charts indicate that the ham market could climb an additional 15% during the next 4 weeks before prices begin to stabilize. Prices per pound FOB from USDA.
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Produce |
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Inflated grain prices have pulled some acreage away from fresh vegetables this summer. Total US summer major fresh vegetable acreage is forecasted to be 5.6% less than last year. Both summer head lettuce (8.8%) and tomato (5.5%) harvested acreage are projected to be smaller than 2007. Declining acreage may lead to increased volatility in the produce markets. Summer US onion acreage is estimated to be 6.8% smaller than 2007. The onion markets are mostly moving higher due in part to a delayed Northwestern US crop. But lower onion prices may be forthcoming. Prices shipping point unless noted (terminal) FOB from USDA
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Oil and Grains |
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The US spring wheat crop has been hurt recently by dry weather. Fairly limited spring wheat stocks and relatively elevated spring wheat prices are expected to endure. 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 - The California tomato harvest is progressing with output expected to reach 946 thousand tons by the end of the week which would be modestly below historical averages. The markets are firm. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - The 2008 green pea for processing harvest is winding down with production estimated by the USDA to be 2.1% less than a year ago. The processed vegetable markets remain relatively firm. Prices FOB per case from Supply and Market Report.
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Par cooking limits
Community member ramis writes...
I am looking to speed up the order time i my kitchen because well, it
takes about 3-4 minutes too long. this is ok with one order, but when
we get 5-6 groups at the same time, we get a little backed up. Granted
it takes about 20 minutes to catch up, but for guests dining in, 15-20
seems like a long time. I was considering par cooking everything. Right now we cook burgers/chicken on the char-grill to order, and
stir-fry chicken/beef for Asian dishes also from a raw state. ...
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Small Restaurant w/ Gift Shop?
Community member sktevis writes...
Are any of you familiar with small-town restaurants that have
gift/antique shops? It's not particularly appealing to me, but I'm
wondering if it's beneficial--financially or just because it gives
customers something to do while they're waiting, etc. ? Any thoughts? ...
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I have everything to learn!
Community member madrinkian1 writes...
I am very new to this business and have a lot of questions which I hope
you can answer. I have an idea for a restaurant which I think would be
very successful, however I don't have any experience in the field.
Don't worry, I'm not looking for a 'rich quick' plan so I'm taking this
extremely slowly. I want to research and learn as much as I can from
people who have real experience in opening a restaurant. I also am well
aware of the amount of hard work that is required but want to assure
everyone...
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A Freaky, Yet Cool Orange
I am an orange of the navel variety. I am a freak, a limb sport if you will a genetic mutation. Nobody grafted me; I simply appeared as a different limb on a regular navel tree growing in Venezuela. Even today, I am considered genetically unstable, and often called a chimera. I've been partying with some bloods and mandarins lately, and you wanna talk unstable? Anyway, here's what makes me cool. First, I often have variegated leaves, which is pretty neat compared to the bland old green leaves of a regular orange tree. But my internal color is what gives me star quality. Not bloody red, but pink, salmon pink, similar to a Star Ruby Grapefruit. In the USA I grow best in California although I was first domestically cloned in Florida groves, I lacked the rich flavor and the bright color my western crop provided. Finally, my flavor can not be beat. If you a re lucky enough to find me, peel me and you to will thrill to my wonderfully distinctive, rich, sweetness. Sometimes described as the "tutti-frutti orange", I am available late fall through winter. Grab me while I'm stable, cause you never know what I'll turn into next!
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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