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News in Review     Market Reports    Food Quiz     Industry Discussion

CIT failure would chill US restaurant operators
Starbucks unveils a new drink: Booze
McDonald's likes Leno for in-show Monopoly promo
Chef brings bees to Four Seasons
Luby's drops prices on 100 items
U.S. Retail and Food Services Sales Continue to Climb
Eat 'n Park files suit over smiley cookies
AZ governor signs bills allowing guns in restaurants
Restaurant grease fueling UT biofuels project
For Las Vegas Chefs, the Odds Grow Longer
Restaurants Burned by Deep Discounts
Yum! Brands sees profit jump 35 percent
R&I 2009 Top 400 Restaurants Chains
Cinnabon Names New President
Zaxby's Reports Growth in Sales
Chipotle First Restaurant Ever to Receive Platinum Level LEED(R) Certification
Swiss tax rules lure McDonald’s from UK
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Featured Article


The Keys to Keeping 'Em

By: Dr. Jerry Newman

So far we’ve viewed everything through the lenses of an employer. Whom should we hire and with what skills? How do we motivate them?

Applicants want to know what the job is going to be like. How hard will I have to work? How much will I get paid? Some questions get answered in the interview. Others aren’t answered until the job starts. And this is where the problems can begin.

I’ve spent considerable time thinking about and researching the employment contract from the employee’s perspective. I’ve concluded through research that store managers and their assistants have 13 rewards they can use to attract, retain, and motivate workers.

Over the next two columns I’d like to share some observations about these rewards. First, over time the relative importance of these rewards changes. Knowing this can help you design your reward structure to fit employee needs. Consider these trends across all employees and industries.

Compensation: There is a long-term trend toward more variable (commissions and bonuses) pay for all levels of employees. Even lower-level employees find 4 percent of their total compensation in the bonus category. Why? Because in good times employers don’t mind sharing the wealth. In bad times no bonus is paid.

Benefits: Historically this expensive reward (averaging 30 percent of payroll) has been an employer sinkhole. Money goes in with no obvious benefit! Lately though, companies like McDonald’s have been allocating more to key benefits (health and pension) to build a stable, mature workforce that is less likely to turnover.

Social Interaction: A neglected reward that companies are just beginning to explore. If you select crewmembers who get along with one another, actually like each other, coming to work is fun. Fun translates into lower turnover.

Job Security: The ping-pong ball of rewards is important when unemployment is high and less so in good times. Guess how it ranks these days! That’s good news for quick-serves because they prosper in bad times. This is a good time to find great crewmembers to groom for future management jobs.

Status/Recognition: Yum! Brands proudly announces it has a recognition culture. Every manager is trained in ways to use recognition to motivate workers. It’s an inexpensive way to build a loyal workforce. Unfortunately many companies preach agreement but never follow through at the store level.

Work Variety: Important to some employees, frightening to others. Never a top-rated reward for employees but very important to store managers because increased skills mean increased flexibility for job assignments.

Work Load: Hugely important in the quick-serve industry. Store managers chronically understaff then go to the same crewmembers (yes, the best ones!) to bail them out. It doesn’t take long to make this a negative reward for the overburdened.

Work Importance:...

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Notable Quotable


You can't build a strong corporation with a lot of committees and a board that has to be consulted every turn. You have to be able to make decisions on your own.

- Rupert Murdoch

Weekly Market Reports

View updated pricing and information each week on the website for the following food-commodity markets:

Beef, Veal & Lamb View Detail 
May US beef imports were 5% more than last year but the second smallest for the month this decade. The US dollar has depreciated some versus the Australian currency since May which could cause US beef imports to slow. Seasonal charts suggest the 90% beef trimmings market may trade north of $1.40 through August before turning downward. Beef demand remains fairly lackluster. Most of the beef markets continue to trade at relatively engaging levels. However, retailers may feature more beef in the coming months. June retail beef prices were the lowest in 13 months. Price USDA, FOB per pound.

Dairy View Detail 
Cooperatives Working Together announced another subsidized herd retirement issue that will contribute to dairy cow slaughter in September and October. At this point it?s unclear how many dairy cows will be removed due to the upcoming series. It?s possible that dairy cow slaughter could wane until the program gets started as farmers wait on the subsidy. The cheese markets remain relatively weak. Higher cheese prices are anticipated this fall. The butter market is moving upward. History indicates that additional modest butter price increases may be pending. Prices per pound, except Class I Cream (hundred weight), from USDA.

Poultry View Detail 
Chicken exports during May were 10.5%, or 74.5 million pounds, less than the same month in 2008. Trade with Russia during the month was 74.3 million pounds smaller than a year ago. Typically a downward trending US dollar would be bullish for US chicken exports. However, US leg quarter prices have turned lower during the past week which suggests exports may be waning. The chicken breast markets have moved lower during the last week as well. Charts indicate that additional boneless skinless chicken breast declines may be pending over the next few weeks but that the market could turn higher in August. June US retail chicken prices were the 2nd highest on record which is bearish for domestic chicken demand. Prices USDA, FOB per pound except eggs (dozen).

Seafood View Detail 
May US shell on (1.9%) and total (7.2%) shrimp imports were both better than the same month a year ago. The dollar has depreciated somewhat since May, however, which could cause shrimp imports to moderate this summer. The shrimp markets are mixed. May US salmon filet/steak imports were less than 2008 due in a large part to production challenges in Chile. Elevated salmon prices may endure into September. Prices for fresh product, unless noted, per pound from Fisheries Market News.

Pork View Detail 
May US pork exports were 37% less than last year and the smallest in 17 months due to the H1N1 flu induced trade restrictions that occurred this spring. May US ham exports were 14% smaller than 2008. Many of the pork markets are being pressured upward due to a slowdown in pork production. Additional modest market increases may be coming. The USDA pork cutout, an index of pork cut prices, is currently trading near $60 a hundredweight. The USDA pork cutout has not traded above $62 since October of last year. Prices USDA, FOB per pound.

Produce View Detail 
The yellow onion markets are moving lower. History suggests that additional yellow onion market declines are likely in the coming weeks. However, onion prices could remain close to last year?s relatively elevated levels during August. US summer total onion acreage is forecasted by the USDA to be .5% less than last year and the smallest since at least 1996. 2009 US fall potato acreage is forecasted to be .3% larger than a year ago but the 2nd smallest since 1951. Idaho potato acreage is projected to rise 5% this year but still be the 2nd smallest in the last 23 years. Prices USDA FOB shipping point unless noted (terminal).

Oil and Grains View Detail 
Favorable grain crop conditions continue which may lead to solid harvest yields in the coming months. Corn and soybean prices could remain below year ago levels. Prices USDA, FOB.

Canned and Frozen Food View Detail 
Tomato Products, Canned - The USDA is forecasting the 2009 US contracted tomato for canning harvest at 13.9 million tons, a record high. The markets are firm. Prices per case (6/10) FOB, unless noted from ARA.

Processed Fruits and Vegetables - The 2009 green pea for processing harvest is forecasted to be 2.6% smaller than last year. The markets are relatively steady. Prices FOB per case from ARA.

Discussion Forums

Fruit for Fries Substitution?

Community member ByronO writes...

Does anyone offer a fruit substitution for the side options on the lunch menu. If so do you charge in addition for it?

I am considering offering it on the side on the menu. Currently we just get requests which we honor, but since the fruit is more expensive I was thinking about offering fruit as an upgrade on the menu for $1.50.

 

...

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Managing partner vs. GM?

Community member Jaceeblob writes...

The company I work for is moving toward Managing Partners instead of GMs. There will be a buy-in for me and a base salary decrease but a bigger share of the profits. Has anyone experinced this transition or worked in a managing partnership environment? What are the major pros and cons? Thanks!

 

...

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Help, what to do with deli

Community member LittleDeli writes...

Hi all, I'm at wits end trying to decide what to do with my catering business. Business is not going very well with gas prices and orders are going slower. I can't seem to keep up with the rent/lease. I'm having to decide if I need to call it quits or move my business home. I was wondering if anyone had catering business experience from home.. and what kind of permits or laws or requirements do I need to meet to have catering from home.

Any information it greatly appreciated.

...

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Food Quiz

My delicate branch yields the head of Medusa

In the poo of the sham, in the paste of the tooth,
I've slept with King Tut and helped increase youth.

My sweet can't be beat, I' sugar times fifty,
I allow retained water so thirst won't become thee.

Low my delicate branch yields the head of Medusa,
With rootlets and taproots tangled to seduce ya.

My skin is dark brown, my flesh yellow gold,
I help reduce phlegm and remedy your cold.

I'm the master of healing, a medical wonder
But don't use to much or the ground you'll be under

Only rarely in candy, it's most often a fake
I put head on your beer, and will flavor your cake.

With all of this wonder the one thing I don't know
Is why my greatest use is in products tobacco?


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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