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News in Review
Market Reports
Food Quiz
Industry Discussion
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The Quick-Serve Creed
By: Roy Bergold
Understanding your core values can help guide your restaurant through hard times.
Since this is the July issue and we celebrate one of the most important holidays in our country’s history, a history built on a document summarizing the ideals and goals of our Founding Fathers, I thought it would be appropriate to take a shot at formulating a Quick-Serve Owner’s Creed. Something we can point to when our motives are in question or we just need to reassess the reasons we are doing something.
It’s particularly important in today’s business environment to write down what we believe in and try to live by. This is my attempt. Use it as a guide to do yours. Change it as you see fit. But be sure to communicate your creed to your people so they understand your motivations and goals.
My Crew. I believe they will do honest work for honest pay. They’re sincere, dedicated people who want me to succeed. They want to be treated fairly and with respect, no matter their position. They enjoy their job and like to interact with my customers. I owe most of my good fortune to them and will try to do what I can to help them.
My Food. I’m using the best ingredients I can afford, and I’m serving the hottest or coldest and tastiest menu that I can. I’m providing variety without trying to serve items I have no expertise in. My cooks are trained in their methodology in the best way I know how. “Fresh” is my key word. Nothing sits around longer than it should. My food is the best it can be.
My Company. I believe my licensing company is doing everything it can to help me to be successful and profitable. Its representatives listen to my ideas and use them. They’re totally sympathetic to my problems and try to help me resolve them. They rejoice in my victories and commiserate in my failures. I wouldn’t be where I am without their cooperation.
My Marketing. The way I market my store, both from major media and my own in-store activities, is the best I can do. My advertising is truthful and in no way misleading. And my promotions are simple, fun, and gratifying for my customers. My store looks colorful and attractive. People want to spend time in my restaurant...
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Sandwich every bit of criticism between two thick layers of praise.
- Mary Kay Ash
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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 .3% and was 6.1% less than the previous year. The beef markets remain relatively depressed, although Fourth of July Holiday feature activity is boosting interest for ground beef products. Ground beef forward negotiated sales last week for delivery in mid July and beyond were the 3rd largest for any week in the last 30 months. Thus, some upward pressure may be forthcoming on the ground beef and trimming markets. History suggests that top butt, loin and rib prices may move modestly higher during the first 2 weeks of July. Price USDA, FOB per pound.
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Dairy |
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The milk- feed price ratio in June was stable with May?s record low level suggesting the dairy farmer margins remained historically poor. Ongoing meager profitability is expected to cause milk production to trend well below 2008 levels this summer. The USDA is forecasting 3rd quarter 2009 milk output to be 2.4% less than the previous year. The CME cheese markets appear to be bottoming and modest cheese market increases are anticipated in the coming months. Relatively engaging butter prices could persist during July due to lethargic export demand. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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The June broiler- feed price ratio was even with May matching the lowest ratio during the past 8 months and suggesting that fairly poor chicken producer margins persisted. Chicken production cutbacks are projected to persevere. The USDA is forecasting summer US chicken output to be 4.6% less than last year and 1.2% smaller than 2007. The chicken breast markets appear to be turning upward. Seasonal charts suggest that additional modest chicken breast market increases may be pending. The June egg-feed price ratio was a record low indicating poor margins for table egg producers. There are reports that China has stopped chicken imports from the US. If true and longstanding, the action could be bearish for US dark meat chicken prices and bullish for chicken breast prices. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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May US Gulf of Mexico shrimp landings were 60% larger than a year ago and the 2nd largest for the month in the last 5 years. 2009 through May US Gulf shrimp landings were 51% more than the previous year. Most of the shrimp markets are expected to continue to trend below year ago levels this summer. Newfoundland snow crab fishing season is winding down. Moderately higher snow crab prices may be forthcoming. Prices for fresh product, unless noted, per pound from Fisheries Market News.
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Pork |
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The June 1st US total hog and pig inventory was 2% smaller than a year ago. The June 1st swine breeding herd was 2.7% smaller than 2008 and the least for any date in 4 years. The impact of fewer hogs on pork production may be mitigated in the coming months, however, as pig per litter yields may continue to trend notably above prior year levels. The pork markets remain fairly depressed due in a large part to slowed export sales. The sparerib market is trending lower. Last year, sparerib prices declined 15% during the next 2 weeks. Prices USDA, FOB per pound.
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Produce |
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Onion shipments remain deficient due to reduced acreage and harvest delays in various parts of the country. Onion supplies are anticipated to improve in the coming weeks. Cyclical charts indicate that the yellow onion markets could move downward as July progresses. Tomato shipments last week rose 40% due to the expanding harvests in California and the Southeast. Additional tomato market decreases are likely. The iceberg lettuce market is trending lower. Relatively steady iceberg lettuce prices are forecasted to persevere during the next month. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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The outlook for grain supplies and prices improved with the recent updated USDA acreage forecasts. The corn and wheat markets are being pressured downward. Prices USDA, FOB.
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Canned and Frozen Food |
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Tomato Products, Canned - According to the CLFP, the June 1st canned tomato inventory was .2% larger than last year. The markets remain firm. Prices per case (6/10) FOB, unless noted from ARA.
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Processed Fruits and Vegetables - Crop conditions in the Midwest are mostly favorable. Fairly steady processed vegetable prices are expected to endure. Prices FOB per case from ARA.
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Food Costs for Happy Hour
Community member Krwell writes...
Is there a standard food cost for Happy Hour appetizers? Right now my restaurant uses 65% but sometimes I think that is too high. So far I'm fine with it because most of the people who order the happy hour appetizers order some beers with it. But I'm looking for opinions. ...
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Food Service Contract Business
Community member Longhorn33 writes...
I have some questions to ask about the foodservice contract business. How long is the contract (how many years) with the business/school/etc? If a new contract service provider takes over, do they usually give the management jobs to the current managers or do they bring in their own people? ...
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How to generate lunch business?
Community member Chuck writes...
Ive got a fast casual place, No waiters, only about 20 seats with counter ordering.
I have been having a problem of boosting my lunch business. I have tried just about everything.
Bounce backs for lunch, Combo deals, BOGO, but nothing seems to work.
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Round and only one inch in diameter
I am an evergreen, a native of Brazil. I proudly rise up to 40 feet high. I grow in warm, subtropical, and cool tropical regions. I am harvested 5 to 6 times a year, as I have to be separated from the 1 to 4 inch spear shaped leaves protecting me. I am round and only one inch in diameter. My thick black, maroon or purple skin gives way to my white or pinkish translucent pulp. I grow out of the larger branches and directly from the trunk of the tree. Highly cultivated in Rio de Janeiro, I have also been seen occasionally in the United States and have even traveled as far as Australia. Often enjoyed fresh, we can also be used in fruit salads or as a garnish. I create succulent jams, jellies, juices and wines. My high sugar content makes a satisfying snack while providing ample amounts of vitamin C.
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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