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News in Review
Market Reports
Food Quiz
Industry Discussion
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Squeezing The Lemon
By: Joe Dunbar
Operators are working the monthly income statements searching for ways to generate more profit. Many operations are running just above or just below the break even point. Profit improvement efforts produce a huge impact at the break even point. A 1% drop in costs may be the difference between profit and loss.
Sales are tougher to come by this year. If you find you continue to break even once sales volume improves, its time to implement an aggressive cost cutting campaign. You can't afford to miss these opportunities to put money in the bank. A 1% rise in sales won't equal the profit produced by a 1% drop in costs. Every dollar of sales requires food and beverage to be served to guests. This cost of sales reduces the income produced by the gain in sales volume.
With guest counts down and average checks off, there may be a huge temptation to fill seats through huge discounts. This strategy risks losing profitable seats on a busy night. Discount lovers take seats which could have produced superior profits. Rather than offering discounts at every meal, you could offer busy night patrons a discount for a slow early week meal period...
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There is no class so pitiably wretched as that which possesses money and nothing else.
- Andrew Carnegie
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Advertisement
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Our goal for writing these articles is to give you, the operator, a better understanding of the current FDA Food Code.
Design & Construction of Equipment
Question: What characteristics do I need to look for when purchasing both food and refrigeration thermometers?
Answer: Food - The Metric Conversion Act of 1975 (amended 1988, 1996, and 2004, 15 USC 205a et seq) requires that all Federal government regulations use the Celsius scale for temperature measurement. The Fahrenheit scale is included in the Code for those jurisdictions using the Fahrenheit scale for temperature measurement. The small margin of error specified for thermometer accuracy is due to the lack of a large safety margin in the temperature requirements themselves. The accuracy specified for a particular food temperature measuring device is applicable to its entire range of use, that is, from refrigeration through cooking temperatures if the device is intended for such use.
Ambient Air and Water - A temperature measuring device used to measure the air temperature in a refrigeration unit is not required to be as accurate as a food thermometer because the unit's temperature fluctuates with repeated opening and closing of the door and because accuracy in measuring internal food temperatures is of more significance. The Celsius scale is the federally recognized scale based on The Metric Conversion Act of 1975...
Learn More in our Food Safety Section
For further information, contact your local, regional or state regulatory agency.
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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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The January 1st US cattle and calf inventory was 1.6% less than last year and the smallest for the date since 1959. The January 1st beef cow (2.4%), calf (1.2%) and beef replacement heifer (2.1%) herds were also smaller than the previous year. Annual beef production is anticipated to decline during the next few years. Beef buyers have been limiting purchases for immediate needs helping influence many beef markets downward. Technical charts suggest that most markets should bottom shortly. Prices per pound FOB from USDA.
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Dairy |
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The January 1st US milk replacement heifer inventory was .1% less than last year but the 2nd largest since 1986. The large milk replacement heifer inventory indicates that it may take a while to significantly reduce the milk cow herd and pressure milk prices upward. The CME cheese markets are edging higher as buyers begin to take advantage of the engaging price levels and build stocks. Any additional cheese market increases could be fairly modest over the next few weeks. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The January broiler feed price ratio model indicates that chicken producer profitability remained historically poor during the month. Chicken production cutbacks are expected to persist into at least the spring. Broiler egg sets last week were 9% less than the same week a year ago and the smallest total since early November. Existing chicken wing prices are at record highs. However, wing demand typically wanes in the coming weeks putting downward pressure on wing prices. Still, the aforementioned slowdown in output is likely to curb any pending wing market declines. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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Chile, a major salmon exporter, continues to be challenged with disease problems in their salmon farms. Thus, 2009 Chilean salmon output is forecasted to be down roughly 50% from before the outbreak occurred. Normally this would be bullish for the salmon markets but salmon demand has slowed due to the stressed US and world economies. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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Pork production last week rose 1.8% and was .6% larger than last year. The hog feed price ratio remained historically low in January indicating that hog farmer margins are poor. Tighter hog supplies are expected to influence hog prices higher this spring but any hog market increases will need to be supported by increases in the pork markets. Many of the pork markets, including hams and trimmings, typically move upward during February. The US is facing export challenges again with Russia. Prices per pound FOB from USDA.
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Produce |
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The lettuce markets continue to move lower due to mostly adequate supplies. Last week iceberg lettuce shipments rose 12% from the week prior and were 7% larger than the same week a year ago. Relatively favorable weather is forecasted in the chief lettuce growing areas which may cause fairly engaging lettuce prices to persist. Freezing temperatures are once again descending on Florida this week which could interrupt the tomato harvest and cause supply gaps later this spring. The tomato markets may firm some soon. The onion markets are relatively balanced. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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ADM, a major US ethanol producer, estimated this week that US ethanol output is running 21% under production capacity. Sluggish ethanol output is bearish for the corn market. 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 - According to the CLFP, the December 1st canned tomato product inventory was 1% larger than last year and a record. The canned tomato markets remain steady to firm however due to solid demand. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - Food service demand for most processed vegetable products has slowed. This could lead to some discounting in the coming months as processors don?t want to carry any expensive stocks into next year. Prices FOB per case from Supply and Market Report.
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Vietnamese Sandwiches
Community member Chef Kevin writes...
I have a very dear friend I call MOM, she is Vietnamese. She has adopted me as her own since I live so far away from my mother, she is in Ohio and I am here on Guam.
Any way, I have been devouring her Vietnamese Sandwiches for about 15 years now and am proud to say that I can eat 4 (8 inch sandwiches) in one sitting. I do not eat like a pig...
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Tough Times
Community member Henry writes...
Lets face it the food and beverage industry is taking its share of hits these days - rising costs in fuel, labor and product costs are taking there toll and causing many casual dining restaurants to call it quits. Impendent operators without the benefit of deep pockets are at a loss as to what they should do just to keep the bills paid let alone attempt to throw money at new ways to attract new guests to walk through the doors...
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Should we start accepting credit cards?
Community member Beth Food Write writes...
It is almost time for my annual foray into the real world of foodservice - aka the dreaded lenten fish fries are upon us.
Last night, about 10 of us who head up this met for our pre-event meeting. One of the questions came up was accepting credit cards. We run this fish fry for six weeks = every Friday during Lent. We serve...
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Delicate, Petite, Pretty and Succulent
I am delicate, petite, pretty and succulent. I grow in the cooler regions of the northern hemisphere. My European varieties derive from the species Rubus Idaeus while my American varieties come from Rubus Strigosa. I must be kept frigid and cold or I will rebel, perish, leak and stain. I was barely seen until the 18th century when I became popular on the dessert table, in fruit salad, served with peaches and cream, or pureed and used in jellies, sauces, sorbet and puddings. My family covers a rainbow of colors ranging from white through, yellow, orange, pink, red, purple and black. My Scottish cousins are the envy of the family. Due to the damp cool climate of Scotland they are reputedly the best of their kind in the world. I am high in fiber, a good source of vitamin C and contain traces calcium and vitamin A. Although a favorite on the dessert table, My association with discolored skin and nasty noises makes me an unpopular participant in a bikeathon or running race.
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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