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News in Review
Market Reports
Food Quiz
Industry Discussion
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What Else Can I Do?
By: Roy Bergold
10 things you should consider to improve sales.
I am bleary eyed from reading everything I can lay my hands on having to do with “What else can I do?”
I have read every expert I can find to try to help you guys out of this mess. I threw it all into a big pot and distilled out what seems to be the consensus of the best thinking out there, 10 things you can consider.
You’re saying that you need more sales and profit. The consumer needs to be prodded out of his home and into your restaurant. Here’s probably my last word on the topic, my take on what the experts are saying.
Experiment and Innovate. Seems to be No. 1 on the hit parade. Now, how can you argue with this? In the early days of McDonald’s, management kept stressing the importance of constantly looking for new ways of doing things, from french fry scoops to commercial production and food photography. At one point, I even had what was called a mistake budget.
Try things, make mistakes, just don’t make the same one twice. And, perhaps even more importantly, don’t make mistakes just to look like you’re innovating, like messing with the branding or adding products you have no business selling. That isn’t innovation. It’s just poorly thought-out action.
I was telling old war stories with some quick-service buddies yesterday. One guy who worked for a large pizza company told about how one of their delivery guys thought he could save money by not taking his free pizza dinner on the company. Customers were calling and complaining that their pizza was missing a slice. Yep, he was taking a slice and pushing the pie together to look like it was all there. That is not innovation.
Innovation is also detail-oriented. The Arizona Republic ran a picture of Jamie McMurray celebrating his victory at the Pepsi 400 clearly drinking a bottle of Coca-Cola. This is also not innovation.
Go after Kids. Ray Kroc said that if you had $1 to spend on marketing, spend it on kids. Why? Because they can’t get to your restaurant by themselves and they eat a lot. Mom and/or Dad has to bring them. At least have a kid’s menu with something special, and make it a value meal. Mom will appreciate that. Don’t forget the placemat with the puzzles and the crayons. And, for heaven’s sake, get the kid’s food out right away. A full mouth trumps a full tantrum.
Teens and Young Adults. Invite them in. In the early days, we were really scared of teens at McDonald’s. There were horror stories of transmissions being changed in our parking lots and counter people feeding their friends for free. Plus, they had no money.
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"The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries."
- Winston Churchill
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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 February 1st US cattle on feed inventory was 5.7% less than last year. Cattle placements into feedlots during January were 4% more than 2008. The March 1st near slaughter ready cattle inventory is projected to be 9% less than the 3 year average for the month. Fairly limited live cattle supplies are expected to cause beef production to remain below year ago levels this spring. Existing beef demand is lethargic helping depress beef prices. Still, aggressive retail beef featuring may occur once the weather warms. Prices per pound FOB from USDA.
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Dairy |
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January US milk production was .8% more than the same month a year ago due to a .5% larger milk cow herd and a .3% gain in milk per cow yields. However, the January milk cow herd declined by 14,000 head from December which is the 3rd largest monthly reduction in the last 5 years. US milk farmers are expected to continue to shrink the dairy cow herd in the coming months. Eventually milk output is anticipated to trend below 2008 levels which could be very bullish for the US dairy markets. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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Chicken production continues to trend well below prior year levels. The 6 week moving average for broiler egg sets is 7% less than last year but egg sets for last week were the largest since August. Chicken producer profitability has improved due to the recent decline in feed prices. This could cause chicken output cutbacks to moderate as the spring progresses assuming that feed prices don?t move higher. Some upward pressure is still expected on the chicken breast markets in the coming weeks. The wing markets may move lower. January 31st chicken breast (7%), wing (26%) and leg quarter (19%) stocks were all less than the previous year. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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The Lenten Season is upon us which usually brings a boost to seafood demand. Thus, some seafood markets may move higher during the late winter and early spring. However, any pending market increases are likely to be modest due to the challenged economy. January US Gulf of Mexico shrimp landings were the largest for the month since 2006. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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Pork output last week declined 1.1% but was .7% larger than the previous year. The pork markets are mostly trending downward due in a large part to lackluster demand. Historical charts do indicate, however, that downside risk from here for many markets may be nominal. Thus, it could be an opportune time to visit pork contracts especially for bellies and hams. January 31st pork belly (4%) and ham (8%) cold storage inventories were less than last year. January rib (21%) and trimming (6%) holdings were more than 2008. Prices per pound FOB from USDA.
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Produce |
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Avocado shipments last week declined 8%. Avocado supplies could remain limited during the next month or so which may pressure the avocado market higher. Last year the avocado market rose 9% during the next 3 weeks. The tomato markets are moving upward. Any additional tomato market gains may be modest. There continue to be water concerns in California due to an ongoing drought. The California state water reserve is reported to be at 60% of normal. Water restrictions for farmers are likely to intensify which may impact forthcoming vegetable plantings. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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Protein and dairy feeders continue to struggle with margins due to poor demand for their products and inflated feed costs. Could be bearish for the grain markets. 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 markets remain steady. If food service canned tomato demand suffers in the coming months some modest discounting may occur. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - January 31st frozen green bean (16%), cob corn (10%) and green pea (17%) stocks were all notably larger than the previous year. January frozen cut corn holdings were 3% less than 2008. The markets are mostly steady. Prices FOB per case from Supply and Market Report.
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Rebranding. Fine Dining to Casual?
Community member Robbin writes...
Help! I have a upscale casual bistro/wine bar in a small resort town on the Chesapeake Bay in VA. I have $30+ check av. However given the present state of the economy and my segment (fine dining) of the market shrinking, I am considering rebranding. I can't stay the same, it's a slow and painful death. Should I take what...
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Cost cutting in tough economic times
Community member NewJack writes...
I've been reading a few articles online recently on ways to cut cost during tough economic times. There are articles that range from being more green and energy efficient, to be training for higher employee retention. I was wondering if members here have implemented anything that has been working for them that they would like to share. ...
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Management Labor Ratio
Community member Linda B writes...
I have always looked at labor as a whole - all management and employees together.
Now, i want to look at management separately for budget purposes. Can someone tell me what percentage salaried management should be of total sales? Or, is there another way to look at it?
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I'm Really Cool to Look at
I am a native of southwestern Africa representing the cucumber family. Introduced to New Zealand in 1930 and cultivated there for decorative purposes, my popularity began to rise. I am about four inches long, two inches wide and weigh between one half pound and one pound. I have a spiky, brilliant, gold/orange skin with emerald green flesh and edible seeds. I offer up a unique combination of banana, watermelon, mango, pineapple, and cucumber flavors. Often my insides are aborted and my stunning shell is halved and used as a vessel for salads, slaws, or desserts. Sometimes just my top is lopped off, again my innards are gutted and I become a glass for exotic drinks. My strained liquid is an excellent substitute for vinegar, or with a bit of added sugar a great thirst quencher. My pulp is often added to sauces, soups, salads, sorbet, yogurts, or just eaten out of hand. I am rich in vitamin C and I also contain iron and potassium. Mostly I’m just really cool to look at and I don’t bite
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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