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News in Review
Market Reports
Food Quiz
Industry Discussion
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Enough Already
By: Roy Bergold
Smart operators should be forward-thinking, innovative, and optimistic.
If you remember last month’s column, I said I was done with, “What do I do to get sales in bad times?” And I am. I don’t know about you, but I am tired of all the gloom and doom.
I have an idea: Let’s all be optimistic. Let’s believe it will all come back and start looking at what we can do to be ready for the surge of business we will have when it does. Look at things from the inside out.
Can’t you just see all those smiling faces across the counter, waving their money, and chanting your menu? And I bet you can’t wait to rehire that off-duty policeman to direct traffic in the drive thru. The first sign will be when McDonald’s starts running “You Deserve a Break Today,” referring to the crew, not the customer.
So let’s get started. And I’m not suggesting you do everything, but maybe something strikes you as making sense for your store. I’ve done a lot more reading for you, and I have some experts’ thoughts and some of my own to share.
Now that you have the time, you can study your menu and get rid of the unprofitable and low-sales items that are just clogging up the works and making it difficult to serve the customer efficiently. With lower sales, it will be easier to identify these puppies too. That’s one off the list of Honey Do’s.
Take advantage of the job losses recently and go looking for new employees who will be a great asset to the restaurant when those sales come back. The available pool has never been bigger or more qualified.
Stop the gimmicks. I bet you’ve been using coupons, BOGOs, premiums, games, and discounting. How about just great advertising?
When McDonald’s first ran the “Two All Beef Patties” song, there was no promotion attached, just real people saying the seven ingredients of the sandwich and having fun. The first weekend it aired, we practically ran the stores out of meat and buns.
Challenge your marketing people to come up with great advertising for when the sales return. Then you can let your crew do its job and not waste time explaining those intelligence-quotient–busting promotion rules that the Supreme Court can’t interpret. Just make sure the copy is in simple English and has a strong call to action. Don’t be afraid to ask for the order.
Another perk of the down economy: Construction costs are down. Six months ago you couldn’t beg a construction guy to talk to you. Return your calls? Yeah, right! Today, they have signs on their trucks advertising a free house if you buy the windows and doors. If you have thought about capital improvements...
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Obviously everyone wants to be successful, but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world
- Sergey Brin
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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 declined 2.5% and was .5% less than last year. A late snow storm caused some packing plants to shut down late last week which is partly behind the decline in output. Beef production may continue to be restricted due to poor beef packer margins. Spring beef demand should pick up soon but may be less than usual due to the struggling US economy. We may get some notable market spikes in key beef grilling items this spring due to feature activity but any spikes are likely to be short lived. Prices per pound FOB from USDA.
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Dairy |
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The March milk- feed price ratio was historically low suggesting that poor milk farmer profitability continues. The CWT, a milk farmer organization, has announced another subsidized dairy cow herd retirement program which could cause milk production to fall below 2008 levels this summer. The butter market has weakened some now that Easter orders have been filled. Butter prices could remain relatively engaging to buyers this month. The cheese markets may move modestly higher this spring. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The March broiler-feed price ratio suggests that chicken farmer margins during the month were better than last year but still were historically poor. Thus chicken production cutbacks are anticipated to persevere into the summer. The chicken wing markets are seasonally weakening. History suggests that the jumbo cut wing market may have another $.12 or so of downside risk from here. Probably to the dismay of chicken producers, the chicken breast markets appear to be weakening as well. The Georgia Dock chicken breast market may continue to trade around $1.40 for the next few weeks. Liquid egg prices may move upward later in 2009. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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Alaska Bearing Sea snow crab fishing will be winding down soon. To date roughly 93% of the snow crab quota has been landed. Landings are well above previous year levels for the beginning of April. Canadian snow crab fishing will be getting underway soon. The snow crab leg market is steady. The whole salmon market is trending lower. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
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The March 1st US hog and pig (2.7%) and swine breeding (3.1%) herds were both smaller than last year. The March swine breeding inventory declined by 71k from December marking the largest reduction for the time period in 9 years. The surprise of the USDA report was the 3% increase in pigs per litter that occurred which, if the trend persists, could greatly mitigate the pork production declines compared to 2008 in the coming months. The pork belly market typically begins an upward course in mid April that carries into June. Prices per pound FOB from USDA.
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Produce |
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The principal lettuce harvest region is transitioning to Huron California. Water restrictions have limited plantings this year in the Huron area which is partly behind the increases in the lettuce markets experienced during the last week. Lettuce supplies could be somewhat erratic during the next few weeks which could cause the lettuce markets to be volatile. Still, lackluster demand should temper any additional lettuce market increases. The chief lettuce harvest area will shift again to Salinas later this month. The tomato markets may remain inflated during the next week. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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The USDA is forecasting 2009/10 soybean crop acreage to be a record high but less than the trade anticipated. Soybean product markets may move upward this spring. 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 - California tomato growers have negotiated with canners an $80 per ton raw product base price, 14% higher than last year. Higher canned tomato product prices are likely this summer. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - The processed vegetable markets are steady with some discounting occurring. Higher canned fruit and vegetable prices are expected this fall. Prices FOB per case from Supply and Market Report.
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Restaurant planning help
Community member TheCheese writes...
I need to write a Human Resource plan (organization structure) for an upcoming restaurant. I am also going to need to describe the responsibilities of each major position in the restaurant.
First of all, how would I go about writing a Human Resources plan?
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A Raw Deal
Community member muse 4 you writes...
I just opened my little cafe and I have an item on my menu that the fitness trainer in the gym is telling my customers NOT to order....I have an Uber Smoothie on the menu. It is plain low fat yogurt, fruit of choice, honey and a raw egg plus either juice or milk.
When I was a kid my favorite place to go was...
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Funny things you notice when you visit other foodservice places
Community member NewJack writes...
What are some funny things that you notice when you visit other food places?
The other day I saw a server sanitize tables with Orange force instead of Quat Sanitizer and I tried to explain to her that Orange force isn't foodgrade standard and cannot be used on surfaces that food is served.
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The Gift of the Gods
A member of the large rose family, Homer called me “the gift of the gods.” I have been cultivated for over three thousand years and held in high esteem by the Greeks, Romans and Chinese. Today my largest production comes from China, Italy, the United States, and Russia. I have several hundred varieties, a result of the cross breeding done in the 17th and 18th centuries. We are very thin-skinned as a group but quite colorful with a range of colors including yellow, brown, red and green. Whatever the skin color my flesh is always white or cream-colored and finely textured. My core is small with about 8 to 12 small seeds. My starch converts to sugar best after I am picked, and I ripen beautifully outside the cooler in a paper bag. I am rich in fiber as well as potassium and copper. Best eaten out of hand, I can be poached, juiced, or dipped. I am used in salads, sorbets, cheese platters, marinades, and stuffing. Contrary to my name, I am allowed to go out alone.
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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