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News in Review
Market Reports
Food Quiz
Industry Discussion
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And Then What Happened?
By: Roy Bergold
'Tis the time of the year when folks gather around the old conifer, or around the scarred kitchen table, or in the dining room after hours and tell stories.
Got an e-mail that asked me to relate some of the goofier things that happened in my 32-year career with McDonald'- deals gone sour, things that seemed goofy but worked, bizarre presentations, and other quirks. So, I thought this might be the time to unload. Sit back and just enjoy this one. I won't rail on you to do something, and I promise not to use the word "economy" even once (beyond this sentence). This one is for the holiday season.
I categorized the stories into Advertising, Promotion, and Operations, and I'll ignore chronology.
Let's start with Advertising:
Agency guy walks in and says that he knows Ronald is lonely. He should have a family, a wife, kids, aunts, uncles, grandparents, the works. And, they all should look exactly like Ronald. I told him that even with a zipper that long, Ronald couldn't have kids.
Another time I looked at some advertising from one of our new international countries. Beautiful pictures of a Big Mac-too beautiful. They had used Quarter Pounder patties. Darn thing was gorgeous, so I called them. They didn't see the problem. We serve Quarter Pounders, too. I still have one of those pictures. Speaking of Big Mac, several agencies tried to put a tomato on a Big Mac. One said it made it look prettier. Yes, it does.
Once we were really stuck for a new advertising campaign for Big Mac. Finally, a genius agency guy said, 'Let's tell them what the ingredients are." Well, that sounds boring until he chanted it to music:
"Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun." We ran the stores out of meat and buns the first weekend we ran it, with no promotion, just advertising.
There's also the time Ronald was faltering in the polls. We couldn't seem to come up with a new idea. So a new, hot agency was hired to come up with something. They did, all right, and gave me the first set of ulcers I had trying to keep our advertising on track. They made three Ronald commercials. The objective was to make him more appealing to older kids. They had him in a pool hall betting on the shots, in a disco with a drink glass in his hand, and on a golf course completely ignoring a kids' gallery. It was almost as bad as the Ronald I saw once in the South who sat on a flat bed trailer and as the kids filed by, he handed them a premium, and said, "Cheer, now git."
Then there was the market that decided to stop all marketing and save the money. You should have seen their sales, talk about the Dow.
Promotion:
I got a proposal from a 100-piece accordion band that wanted to tour every McDonald's. One...
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Whatever you fear most has no power.. it is your fear that has the power.
- Oprah Winfrey
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Advertisement
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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 demand is seasonally changing as retailers feature more end cuts for roasting during the winter. Thus beef chucks, briskets and rounds have moved higher in recent weeks. Conversely, beef middle meat items including ribeyes have mostly trended sharply lower. Beef middle meat prices could continue to trade at a discount to 2008 levels through the winter due to the economy. The beef trimming markets are tracking upward due in part to holiday shortened slaughter during the past few weeks. Prices per pound FOB from USDA.
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Dairy |
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The CME spot cheese markets have declined significantly during the past few weeks surprising sellers and buyers alike. With the CME cheese prices now below government price support levels, downside risk from here is thought to be nominal. Cheese producers are apparently taking advantage of the low priced milk and ramping up production in an effort to build inventories. However, the low priced milk is likely to lead to a further slowdown in milk output growth. The butter market is fairly steady. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The broiler feed cost ratio for 2008 was the lowest in the last 15 years which suggests extremely poor profitability for chicken producers. Of course, challenged chicken producer margins have been well documented and have led to significant production cutbacks. Chicken output in recent weeks has been trending more than 8% below the prior year levels. Still, there are signs that the chicken production slowdown is beginning to pressure chicken prices higher. Sub $1.20 chicken breast and sub $1.00 chicken wing prices may not be experienced again for the foreseeable future. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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The 2008/09 Bearing Sea snow crab quota is 7% less than the prior season. Bearing Sea snow crab fishing should progress in the coming weeks. Reports are that various major snow crab importing countries? inventories are large. This factor and generally weak seafood demand may be bearish for snow crab leg prices in the coming months. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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The December US hog and pig inventory was 2.2% less than the previous year. The December US swine breeding herd was 2.4% smaller than 2007 marking the largest decline by volume in 6 years. Pork production is forecasted to trend modestly below 2008 levels in the coming months. Some pork markets are rebounding as trade challenges are overcome with Mexico. History suggests that the recent jump in ham prices could be temporary. That being said, ham prices during the last 2 years tracked sharply higher during February. Prices per pound FOB from USDA.
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Produce |
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Central Florida tomato output has remained relatively strong due to mostly ideal weather which has helped compensate for a late start to the Southwest Florida tomato harvest. The tomato markets are depressed and could remain so if favorable weather continues. Recent cold temperatures have limited the lettuce harvest. However, lettuce production is anticipated to improve during the next few weeks or so. The Idaho potato markets are fairly steady. History suggests that mostly higher Idaho potato prices could be forthcoming for the next several months. Prices shipping point unless noted (terminal) FOB from USDA
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Oil and Grains |
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Many grain markets have moved notably higher recently due in part to crop challenges in South America. Still, the current grain prices may ration some forward demand. 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 - Whole peeled and diced tomato supplies are reported to be relatively limited while manufactured product stocks are mostly adequate. Elevated canned tomato prices are anticipated to persist. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - With grain prices rising as of late, it is less likely that vegetable processors will be able to negotiate lower raw product contracts for the upcoming crop. The processed vegetable markets remain firm. Prices FOB per case from Supply and Market Report.
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Coffee, anyone?
Community member nowIamone writes...
I have found a little place in town that has peaked my interest; it was operating as a coffee house/ sandwich shop. It was only open for a year, decor is nice, but not totally practical. They opened at 9:00am, our area bustles at 5:00 am, for seven months a year. The owners, with no food service experience, no hands on time; they have lost a ton of money and simply closed the doors. They are very hard to get info...
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Distributor label or national brand
Community member Longtime FS Guy writes...
I was wondering what the folks within the forum think about the subjuct of using the distributor labeled products versus using a national branded item.
What the the group see as the pro's and con's?
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How to turn down gift certificate sales?
Community member Jeff16 writes...
My restaurant is probably going to be closing within a month, but we haven't and are not going to announce it. How can we tactfully turn down a customer who wants to buy a gift certificate without saying that we are closing? ...
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"Hard to Get" is my favorite game!
I am the reigning queen member of the Guttiferaceae family and am actually referred to as "Queen of the Tropical Fruits." I grow at my own leisure, which is usually a timely fashion, and I am difficult to propagate, even down right persnickety. I am famous for playing hard to get, yet the few that are graced with my presence find me on a small tropical tree cultivated in parts of Vietnam, Thailand, Cambodia, Sri Lanka, and the Philippines. My thick vibrant skin is strikingly handsome. I share the same purplish red skin color as a pomegranate, but I am far more beautiful, both inside and out. My insides are segmented into small pulpy white to ivory sections. My pulp is delicate, yet powerfully sweet and juicy. My exotic flavor has been described as a mixture of pineapple, apricot, orange and grape. Taste me and I will practically melt in your mouth. My pulp can be pureed and used as a topping for ice cream, sherbet or tossed in a fruit salad. Most take delight in scooping me right out of my chilled skin. In Indonesia, lucky for them, I am actually abundant, and I am often used in recipes for pickles and vinegar. If you are blessed with fashion sense, you may be wearing my eye catching color on your belt, shoes, wallet or gloves because my skin contains tannins, used for dying certain materials. I contain potassium and vitamin C as well as traces of iron and niacin. If my name were broken down you would find the name of another member of the fruit family, but believe me there is no relation.
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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