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Dear Loyal Followers:

 

Here it is a few days before the “Big Show” here in the Windy City and my American Recruiters Associates and I are looking forward to meeting many of you. For our clients, according to a recent CNN Money Report based on the latest US Bureau of Labor Statistics information, unemployment is at an ALL TIME low and American business cannot hire fast enough. In addition, for the first time in a long time, the number of workers quitting their jobs rose in March to the highest since 2001. Workers believe they can find better similar or higher-paying jobs elsewhere. Businesses report that they are having a difficult time in matching qualified workers to their open positions. The on-line companies supply candidates BUT not the ones needed by the businesses. If you are contemplating new hires in the next few months, NOW is the best time to meet with me or my Associates to plan a course of action. We can set meetings with Qualified Candidates during the show so you can meet face to face and eliminate the screening call. No better time than while you are here in Chicago. If you have not made an appointment, please call so we can set something up. The Show will be here before you know it. As you are traveling to get set up for the show, please enjoy the latest edition of the American Recruiters Global Foodservice News. The stories noted will keep you up to date with the industry happenings that will be discussed by your colleagues during the show. Have a safe trip and a GREAT SHOW, I look forward to seeing you.

 

Craig Wilson

President

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Ingersoll Rand, Mitsubishi Electric Corporation to Establish Joint Venture

Ingersoll-Rand plc and Mitsubishi Electric Corporation are pleased to announce they have entered into an agreement to establish a 50 percent-50 percent joint venture (JV) pending global antitrust review. The new joint venture will include marketing, sales and distribution of ductless and VRF heating and air conditioning systems through Ingersoll Rand’s Trane and American Standard commercial and residential channels, and existing Mitsubishi Electric distributors and representatives in the United States and select countries in Latin America. The systems sold by the joint venture will be highly efficient, variable-speed mini-split, multi-split, and VRF air conditioners and heat pumps for homes, light commercial and commercial applications.

The joint venture will distribute products with the Trane or American Standard brand and the Mitsubishi Electric corporate logo to Ingersoll Rand channels. The joint venture will also continue to serve Mitsubishi Electric US distributors and representatives with Mitsubishi Electric branded product. “We are pleased to enter into a new joint venture with Mitsubishi Electric US,” said David Regnery, executive vice president of Ingersoll Rand. “Together, our robust offering and ability to serve customers in the multi-billion dollar and growing ductless segment will be superior. The unique value of the joint venture is the pairing of premium systems, extensive distribution, deep technical, product and applications expertise, and allows us to leverage Ingersoll Rand’s vast service capability.” The joint venture will be a leading provider of ductless and VRF systems in the United States and select countries in Latin America. “Mitsubishi Electric is enthusiastic about establishing a strong and successful partnership with Ingersoll Rand,” said Keijiro Hora, president and CEO of Mitsubishi Electric US, Inc. “The strength of our brands, combined with our product expertise, industry knowledge and channel coverage will result in a superior offering for customers.” It will bring together Ingersoll Rand’s leadership in heating and air conditioning and its extensive Trane and American Standard residential and commercial distribution network with Mitsubishi Electric’s innovative and technologically advanced mini-split, multi-split, and VRF products, recognized brand and channel expertise. Pending favorable global antitrust reviews and customary closing conditions, the new joint venture is expected to be operational in the first half of 2018. A chief executive officer will be named from Mitsubishi Electric, a chief financial officer will be named from Ingersoll Rand, and the business will operate from headquarters in Suwanee, Georgia. Ingersoll Randand Mitsubishi Electric US, Inc., a subsidiary of Mitsubishi Electric Corporation, will have equal ownership. The financial terms of the deal were not disclosed and are not material. – Source: HVACR Business.

LG Air Conditioning Technologies Partners with Local VRF Lab

LG Electronics, together with Tarrant County College, announced the grand opening of the first Variable Refrigerant Technology (VRF) lab on the campus of Tarrant County College, located in the greater Ft. Worth, TX area. The LG-sponsored VRF lab – located in the Center of Excellence for Energy Technology– will serve as the key training facility for the college’s fast-growing HVAC program.  It will help provide the school’s building technology students along with local HVAC contractors access to an array of training courses to encourage hands-on experience and continuing education with LG’s flagship VRF technology.  LG’s VRF technology and home comfort solutions are making major inroads in the United States, where demand continues to grow for high-performance HVAC technology. LG air conditioning technologies are designed to minimize efficiency losses found in conventional HVAC systems as well as provide sustainable energy savings and low lifecycle costs. “Our support for the new Tarrant County College VRF lab underscores LG’s commitment to training and investing in the future of the industry – in this case educating students and current HVAC contractors alike on the benefits of the ultra-efficient VRF technology,” said Kevin McNamara, senior vice president and general manager, Air Conditioning Technologies, LG Electronics USA. “This cutting-edge tech lab will provide a brand new and unique experience to enable these individuals to install and service VRF systems for an array of projects – from residential to commercial.” Tarrant County College’s Department Chair for Building Technology Chris Noonan thanked LG and other project partners for making the newest addition to its HVAC program a success. “The new LG VRF lab showcases the highest level of state-of-the-art air conditioning technology, and we can’t wait for our HVAC students to get a closer look and hands-on experience.” As the technology provider for the lab, LG outfitted the space with a number of air conditioning products, including LG’s ultra-efficient single-phase 5-ton Multi VTM S heat recovery system, giving students and contractors the opportunity to sharpen their technical skills by interacting with functioning equipment. In addition to the classroom and hands-on learning experiences for the college, LG’s distributor AC Supply Co. holds frequent trainings for their contractor network at the academy. – Source: The ACHR News.
Rinnai Manufactures First North American Unit, Enters into Training Partnership

Tankless water heater manufacturer Rinnai America Corp. manufactured its first unit in the United States, just eight months after it announced plans to start manufacturing domestically. The first unit was a Rinnai HE+ Series, RL model, noncondensing, Wi-Fi-compatible tankless water heater. It will be commemorated in the lobby of the Rinnai America Mfg. facility in Griffin, Ga. “This initial unit from our temporary manufacturing location is the completion of the inaugural step on our path to establish the first major U.S. manufacturing site for tankless water heaters,” said Derrick Black, vice president of operations for Rinnai America Corp. “This location, in Spalding County, is the foundation for completing our Greenfield manufacturing and distribution site. By creating a manufacturing capability based on the belief that ‘Quality Is Our Destiny,’ we will surely be able to captivate customers.”

Rinnai previously announced its plans to build a North American manufacturing facility in Griffin, Ga. A new 300,000-sq.-ft. facility is currently being constructed with completion slated for 2020. Rinnai will produce both residential and commercial products at the new manufacturing site. In addition, Rinnai America announced July 2017 it would expand its North American headquarters by building a new two-story headquarters building and by launching a North America Innovation and Training Center. New Training Partnership. Rinnai is also announcing a training partnership with Georgia Quick Start and Southern Crescent Technical Colleege. A highly ranked workforce training program, Georgia Quick Start is providing customized training to support Rinnai’s manufacturing efforts in North America with an investment of $70 million. The Quick Start project focuses on training for the new assembly processes that will be implemented at the upcoming facility. “Rinnai’s vision is to enhance lives by changing the way water is heated,” said Frank Windsor, chief operating officer of Rinnai America Corp. “We have built our brand by providing the highest-quality products to the market. We firmly believe that quality is our destiny and as we expand our manufacturing capabilities, it is critical that we recruit top-tier talent and train all our team members to have that same focus on quality. Our partnership with Georgia Quick Start and Southern Crescent Technical College will help us to quickly train new employees and ensure that our quality standards are never compromised.” Quick Start will deliver training during the expansion and Southern Crescent Technical College will be Rinnai’s long-term partner available for ongoing training, providing a pipeline of qualified graduates to meet future workforce needs. – Source: Contractor Magazine.

Suzanne Greco to Retire as Subway CEO

Suzanne Greco will be retiring as Subway CEO after three years, and the company has named brand development chief Trevor Haynes as interim CEO, the company said. The Milford, Conn.-based sandwich chain said Haynes, the Subway’s chief business development officer who joined the company in 2006 and serves on the brand’s executive leadership team, would work with Greco to assure a smooth transition. Greco’s retirement officially will be June 30, and she will continue as a senior adviser to the company, Subway said in a press release. Greco was named CEO in 2015 and, as sister of brand co-founder Fred Deluca, had worked with the brand since 1973. Prior to her role as CEO, she was part of the research and development team for more than two decades and was promoted to lead the group as vice president of operations and research and development in 2013. “Subway has been part of my life since I was 7 years old,” Greco said in a statement, “I love the brand and the company, and I always will, but it’s time for me to have more balance in my life. I feel very good about the strategic moves we’ve made in the last three years, and I have confidence in the future of the company.” – Source: NRN.

Former Dunkin’ Exec Named CEO at Cicis

Cicis took the interim tag off William Mitchell’s CEO title, the company announced May 8. Mitchell, the former president of Dunkin’ Brands International, held the position since January. “Bill has an outstanding track record as a leader of large franchise systems, improving operations, customer service and overall business growth,” said Arlon managing director Ben Fishman. “We have deep confidence that he will continue to strengthen and improve Cicis in meaningful ways for our strategic partners and most importantly, our guests.” In 2016, Arlon Group acquired Cicis, which was founded in Irving, Texas, in 1983. There are currently 430 restaurants in 31 states and Cicis said the chain has experienced positive sales growth and overall improvements in guest satisfaction and food quality since the purchase. At Dunkin’, Mitchell was responsible for nearly 8,500 Dunkin’ Donuts and Baskin-Robbins stores across 60-plus countries. Before, he was president of global operations at Papa John’s International. Mitchell also held a leadership role at AFC Enterprises (Popeyes Restaurants at the time), where he was responsible for business planning and operation of 1,400 franchise units. “This is a dynamic time to join the Cicis team because while the system has come far, there is still so much more we can do to become stronger operators, serve our guests better and grow the business,” Mitchell said in a statement. “My first area of focus is to get out in the field to meet our franchisees and listen to their ideas about improving how we do things at Cicis.” Mitchell now officially succeeds Darin Harris, who stepped down in January. – Source: QSR.

Former Jack in the Box President to Succeed George Michel

Boston Market has named Frances Allen, left, CEO, effective immediately, the rotisserie chain based in Golden, Colo., said. She replaces George Michel, who is retiring. Allen had been president of Jack in the Box since October 2014. Before that she was executive vice president and chief marketing officer of Denny’s. She also has worked at Dunkin’ Donuts, Sony Ericsson Mobile Communications, PepsiCo and Frito-Lay. “I am delighted to join the Boston Market team and lead this great company into its next chapter of strategic growth, brand building and culinary innovation,” Allen said in a press release announcing her appointment. “No other restaurant concept is more responsible for the rising popularity of rotisserie cooking and we see significant runway for further building the Boston Market brand. I am proud to lead a team whose top priority is serving high-quality, delicious, healthy and affordable home-style rotisserie meals to our guests.” Outgoing CEO Michel said it had been an honor “and the highlight of my career” to lead the chain of more than 450 locations in the United States. “Frances is both a strategic and operational leader, and I am confident that Boston Market will benefit greatly from her deep experience and expertise,” he said. Allen grew up in Basingstoke, England. She graduated from the University of Southampton in 1983 after studying math and actuarial sciences. She briefly served as an officer in the Royal Army Corps, having trained at the Royal Military Academy Sandhurst, before starting her career in advertising, first in London and then in Asia, before arriving in the United States. – Source: NRN.

Five Japanese Chains that Are Growing in the U.S.

The swift rise of ramen restaurants across the U.S. has inspired a new wave of Japanese concepts that are not focused on sushi. Sushi is now considered as much a part of the American culinary experience as pizza. Ramen restaurants can be found in most major cities. And now, a growing number of chains based in Asia are seeing opportunity in the U.S., saying diners are ready and willing to try new dishes from Japan. Asian flavors in general are popular: More than half of American consumers want to see more Asian-inspired dishes on U.S. restaurant menus, according to Datassential.

Here are five Japan-born or -inspired chains that are plotting growth across North America: Uncle Tetsu. Uncle Tetsu, based in Japan, specializes in ultra-light and fluffy cheesecake that is comparable to soufflé. The chain already has two locations in the U.S., in Hawaii and California, through a partnership with Panda Restaurant Group Inc. So popular is the chain that when a new location opens, long lines and wait times beyond an hour aren’t unusual. Panda Restaurant Group plans to expand Uncle Tetsu across the U.S. Uncle Tetsu was founded in 1985 by Tetsushi Mizokami and has more than 80 locations around the world.

Crackin’ Kitchen. The first mainland location of Crackin’ Kitchen opened in Pasadena, Calif., in March, featuring a Hawaiian spin on Cajun-style seafood cooked in a bag with various sauces. It’s the latest growth concept in the U.S. from Japanese conglomerate Toridoll Holdings Corp., which also operates the growing Marugame Udon concept, which has units in Los Angeles and San Francisco. The original Crackin’ Kitchen first opened in Waikiki, Hawaii, in 2015, and is part of a growing portfolio of brands that Toridoll plans to expand in the U.S. Toridoll, based in Japan, operates about 1,396 restaurants worldwide, including 994 units in Japan, across 20 concepts. The U.S. restaurants are operated by subsidiary Toridoll Dining California LLC, based in Irvine, Calif. The company was founded in 2006 and was initially called Dream Dining California LLC. Crackin’ Kitchen’s menu was developed by Takeshi Omae, who earned a Michelin star at the Tokyo restaurant Morimoto XEX, and who was a sous chef on “Iron Chef America.”

He also had a restaurant in Las Vegas called Japanese Cuisine by Omae. Rather than using authentically Cajun flavors, Omae’s sauces feature Hawaiian ingredients, said Taku Teramoto, director of operations for Toridoll Dining. A black sauce features Hawaiian cacao nibs and cracked black pepper; a red sauce is built on Hawaiian chilis; and a white sauce uses Maui onions, lemon and butter. Customers order seafood by the pound, including snow crab, shrimp, clams and mussels, with a choice of sauces. The bags are brought to the table, opened and spread out on wax tablecloths for diners to dig in with crackers, gloves and bibs, Teramoto said. Unlike the original location, the Pasadena restaurant also features Mussel Pots, allowing customers to choose from about 15 sauces. Toridoll plans to grow another fast-casual stir-fry concept called Wok to Walk, which has multiple locations in New York and is scheduled to open in Hawaii in early summer.

Junkichi Robata Izakaya. Junkichi, a new robata izakaya hybrid, is scheduled to open in April, in Seattle. The concept was developed by Bellevue, Wash.-based Plenty USA Inc., which is also a master franchisee of the Japan-based Hokkaido Ramen Santouka chain, with roughly 15 locations across the U.S. Junkichi will serve as both a robata concept with a menu built around foods grilled over carbon-charcoal binchotan, as well as a gastropub-like neighborhood izakaya with tapas-style dishes, cocktails, beer, wine and a wide selection of sake. If the concept does well, the group intends to franchise, said Edward Wintermyer, the restaurant’s manager. The 45- to 55-seat location has a fully open floor plan. “This is a very wide-open space, and at the counter-top to the kitchen will be chefs stationed at a sushi and sashimi station,” Wintermyer said. “At a robata station in the center of the room, we’ll have a roughly 10-foot display of fresh ingredients,” where the chef will grill. Selections might include locally-sourced ingredients like live scallops or oysters on the half shell; Wagyu beef; organic, free-range chicken and lamb; and sausages from Seattle’s Bavarian Meats, a popular local icon in Pike Place Market, Wintermyer said. Prices will be approachable, with tapas priced between $6 and $15, and full meals ranging from $12 to $35. The Seattle restaurant will feature an artificially intelligent robot named Sota who will sit on tabletops and interact with guests.

Go! Go! Curry. Another Japan-based chain, Go! Go! Curry debuted in the U.S. in 2007, near Times Square in New York. The chain now has six locations in New York City and one in Massachusetts. The company recently announced the expansion of franchise opportunities with a focus on the Northeast and Mid-Atlantic. Go! Go! Curry is known for curry in the style of Kanazawa, in Japan’s Ishikawa Prefecture, where founder Hirokazu Miyamori is from. The comfort- food dish traditionally includes a dark, thick curry sauce served over koshihikari rice with shredded cabbage and pork katsu, a deep-fried port cutlet. The name stems from the Japanese pronunciation of the word “five,” which sounds like “go,” and is inspired by former Japanese-American baseball player Hideki Matsui’s jersey number 55. Matsui is also from Kanazawa. The chain includes 70 locations in Japan. Tomoko Omori, president and CEO of Go! Go! Curry American Group LLC, sees Asian food on the rise in the U.S., but Japanese comfort foods like curry are an untapped subgenre. “Comfort food is universal and has wide appeal, which is why Japanese comfort food has been successful in translating across cultures,” Omori said in a press release. “In recent years, ramen has taken the U.S. by storm, while curry rice, a cult favorite in Japan alongside ramen, has remained under the radar. That said, it is only a matter of time before mainstream America catches onto the allure, and Go! Go! Curry is proud to be integral in its proliferation.”

“Bake Cheese Tart”. Bake Cheese Tart is scheduled to open this spring in San Francisco. Founded in Hokkaido, Japan, the bakery chain has 42 units throughout Asia. It is known for its dessert pastry with a crisp cookie crust and smooth cheese mousse filling with various flavors. The filling is described as cream-cheese-based with a balance of creaminess and tartness and a hint of salt. It can be eaten fresh at room temperature; cold, which gives it a denser texture; frozen, like an ice cream cake; or warmed in the oven. Limited-edition flavors, like chocolate and honey lemon, will be featured regularly. – Source: NRN.

Starbucks Reaches Settlement in Racial Bias Scandal

Following a racial discrimination scandal at a Starbucks in Philadelphia, the Seattle-based coffeehouse giant said it has reached a settlement with the two men involved in the incident. The agreement made with Donte Robinson and Rashon Nelson includes an undisclosed financial settlement, and an offer to pay for their undergraduate degrees at Arizona State University through the Starbucks College Achievement Plan. The settlement comes less than a month after both men, who are black, were arrested for trespassing while sitting in the cafe without making a purchase. In a joint statement, the men said: “We appreciate the opportunity to have meaningful discussions with Kevin Johnson and the group around the table to address hard issues. We all recognize the importance of communication about differences and solutions, and that we will be measured by our action not words.”

The city of Philadelphia also reached a settlement with two men that calls for Nelson and Robinson to receive $1 each. The payment is symbolic, and includes an agreement for the men not to pursue a lawsuit against the city or its employees, spokesman Mike Dunn told Nation’s Restaurant News. The city has also agreed to fund a $200,000 pilot program for city public high school students with aspirations of becoming entrepreneurs, Dunn said. Mayor Jim Kenney said he was pleased to prevent potential claims against the city. “This was an incident that evoked a lot of pain in our city, pain that would’ve resurfaced over and over again in protracted litigation, which presents significant legal risks and high financial and emotional costs for everyone involved,” Kenney said in a statement. Since the incident, CEO Kevin Johnson has been working furiously to restore confidence in the brand by apologizing in various national media interviews. He called the incident “reprehensible” and blamed local store practices that call for asking people who are not customers to leave the store. The manager at the café has also since left the company. On Wednesday, Johnson thanked Robinson and Nelson for “their willingness to reconcile.” “I welcome the opportunity to begin a relationship with them to share learnings and experiences,” he said in a statement. “And Starbucks will continue to take actions that stem from this incident to repair and reaffirm our values and vision for the kind of company we want to be.”  Starbucks said further details about the settlement will be provided in a mutually agreed public statement. Starbucks will be closing 8,000 company-owned stores in the afternoon of May 29 for a training meeting with nearly 175,000 employees. The educational program is designed to ensure Starbucks employees and customers feel safe and welcome, the company said. – Source: NRN.

A Better Chili’s Begins to Take Shape

Brinker International spent the first quarter strategizing its turnaround story. The second was about implementation. Now, it’s time for results. The parent company of Chili’s and Maggiano’s Little Italy said during a May 1 conference call that it “started to see momentum with significant changes in traffic” during the third quarter, a period that ended March 28. Brinker reported net income of $46.9 million, or $1.02 per share, compared with $42.4 million, or 86 cents per share, year-over-year. Revenue was $812.5 million, up from $810.6 million, and better than FactSet’s $807 million estimate. Brinker’s stock climbed nearly 3 percent to $44.87 in Tuesday trading and is up 12.2 percent year to date. Chili’s company-owned same-store sales dropped 0.4 percent, while U.S. franchise units fell 3.2 percent, and international declined 0.2 percent. Maggiano’s saw a 0.5 percent lift in comps. Notably, Chilis traffic slipped 2.1 percent. It fell 6.2 percent in the same quarter a year ago. Just two quarters ago it was down nearly 9 percent. For the fourth quarter of 2017, it declined 6.5 percent and was down 5.8 percent for the entire fiscal calendar, year-over-year, at company-operated units.

So Chili’s has made significant strides in this targeted metric, especially when you consider how broad the changes it needed to make were. Perhaps the biggest was a 40 percent reduction in the brand’s menu—an effort meant to optimize operations, speed up service, and allow Chili’s to focus on improving its core offerings. CEO Wyman Roberts said the moves are returning positive results. “We’re seeing sales and traffic improvements across both dayparts and we believe this momentum is sustainable because of the foundational work we’ve done to strengthen Chili’s overall value perception,” he said. “We’ve improved our menu, our atmosphere and we’re providing a faster, more consistent and convenient experience. All of this is having a positive impact on the value perception of Chili’s. And a strong value perception is critical in this very competitive environment.”

The company shifted to a traffic-based strategy to let these upgrades speak for themselves, which includes investing in burgers, ribs, fajitas, and margaritas, instead of its former promotional-based message that chased deal-focused customers. Chili’s announced it was nixing LTOs last April. “Our focus is getting people into the restaurant and letting them experience the improvements that have been made and we’re seeing that across pretty much all the markets,” he said. The digital story unfolding at Chili’s is a compelling one as well. Online ordering is live across the system. It boosted more than 30 percent in the third quarter, Roberts said, and continues to climb. To-go business upped to more than 11 percent of total sales. Roberts said Chili’s plans to devote eve more resources to work on its off-premise business. Delivery accounts for a very small part of this equation for Chili’s, although it’s been a Maggiano’s staple for close to a decade now. Online and curbside are currently driving the growth for Chili’s. But that could eventually change. “There are a lot of tests out there with a lot of third-party providers as well as a new group of really smart people within the organization kind of tasked with evaluating that,” Roberts said of delivery.

Chili’s also exited American Express Co.’s Plenti Rewards program in the quarter. Customer feedback, the company said, proved the program too complex. Brinker is rerouting focus to its My Chili’s Rewards platform. “With the Plenti program going away, we have that opportunity to assess kind of where do we want to go next. We have the My Chili’s Rewards program. And while it was a points-based program in the past, we’ve decided to not get into a points-based program,” Roberts said, adding that Chili’s will focus on growing the database first. “We’re kind of in a recruitment mode, and there’s a little bit of investment involved in that. But we are absolutely convinced that the future of marketing is going to be led by digital and we want to be on the forefront of that as well as other technology,” he said. Chili’s broad changes include a new store design. The company started construction on its reimaging program, which it hopes to refresh 250 restaurants in fiscal 2019. Joe Taylor, Brinker’s chief financial officer, said Chili’s expects a mid-single-digital lift from the program. The cost is going to run between $200,000–$250,000 per restaurant. Roberts said the goal is about putting “the brand in a more relevant light.” “All the work we’ve done really over the last almost year and a half, as we’ve worked with different versions of this reimage, puts a bigger focus on the bar, but more importantly, opens up the restaurant to be the kind of space that is more relevant for today’s consumers. I think it creates more energy,” he said. “And you’ve got a brand that’s unbelievably strong, but it’s 43 years old,” Roberts added. “So, you’ve got to continue to remind people that we’re investing to keep it relevant for today’s consumers.” This was also the quarter Brinker dialed up its marketing efforts. Chili’s hit the air to “remind people about our lunch combo offering,” Roberts said, a move that drove “several percentage points of improvement in lunch traffic.” Chili’s followed with its 3 for $10 promotion and a $5 margarita platform with a new innovation every month. Roberts said the marketing strategy has been impactful thus far. “We hadn’t really gone out there with that message for a while. And then getting more specific in the promotional aspects as well as in some of the direct marketing aspects has helped move that business significantly and is a major reason why we’ve seen the momentum we’ve talked about here from kind of where we were December, January to where we sit in March and April,” Roberts said.

Cost of sales, as a percent of company sales, increased compared to the prior year due to food investments into beef and chicken and promotional activities, Brinker said. These investments were partially offset by increased menu pricing. Chili’s opened two domestic and eight international units in the quarter to bring its total to 1,254 U.S. stores and 380 international restaurants. There are 52 Maggiano’s. Brinker announced that it secured it first partner in China, and the operator will cover the Shanghai region. “Our core strategy to improve our quality, consistency and value is working well for us across our entire business. We’re confident we can sustain this momentum. We are energized by the work that teams are engaged in and we’re excited about the continued investments in opportunities ahead,” Roberts said. – Source: FSRMagazine.

Quick Service Puts Focus Back on Value

Remember the value wars of a few years ago, when quick-service chains tried to one-up each other with lower and lower priced offerings? Then, when it turned out those offerings only appealed to value-seeking consumers with zero brand loyalty, many chains pulled back on the strategy, and, well, it didn’t go well. Now, the value wars are back and performing way better than before, according to a new study from market research firm The NPD Group. “They moved away from value and it hurt them,” said NPD analyst Bonnie Riggs. “They needed to refocus on value.”

Among the quick-service chains that have re-focused on value is McDonald’s, which earlier this year began offering new value-menu choices priced at $1, $2 and $3. Similarly, in December 2017, shortly after McDonald’s said it would add new value items in January, Taco Bell doubled down on value offerings, adding seven new items to its Cravings Menu, including $1 Nacho Fries. And Jack in the Box launched “Value Done Jack’s Way,” with offerings priced at $1 and $2, as well as meal combos priced at $3 and $4. “To have that kind of variety and uniqueness is very appealing to consumers,” Riggs said of Taco Bell’s now 20-item value menu. The concern about value offerings has always been that they entice consumers to order from the value menu. However, in an analysis of the new value-menu offerings from these three chains during the month of January, NPD found that on average, 72 percent of consumers purchasing from the value menu also purchased from the regular menu. Sixteen percent ordered from the value menu alone, and 12 percent ordered value items with other value items. “The initial hope was to get new and lapsed users visiting again because of the value proposition, but that didn’t happen,” Riggs said. “Instead, heavier users and families with kids took advantage of the value menu.”

Additionally, Checkout Tracking data, which is transaction information drawn directly from consumers’ actual purchase receipts, shows that on average, the value-menu buyers’ visit rates were higher than that of non-value-menu buyers. While their average party checks were less than non-buyers, their frequency of visits resulted in higher overall spend for the month than non-buyers. Average visit frequency to the three chains for the month of January was three visits for value-menu buyers, compared with 1.6 for non-value-menu buyers. The average party check for value menu buyers was $8.81, compared with $8.34 for non-value-menu buyers. “It was a successful pricing strategy for these three brands,” Riggs said. “Chains need a value proposition to stay competitive with these offers.” Taco Bell offered insight into the chain’s newest value offering, and Checkers and Rally’s shared how the brands are stepping into the latest round of “the value skirmish.”

Taco Bell keeps innovation rolling. Yum! Brands Inc.’s quick-service Mexican chain has been offering menu items for $1 or less since it first opened in 1962. Taco Bell continues to have success with value items when other brands have failed in large part by constantly introducing ingenious items that customers crave, at prices they feel good about paying. What sets Taco Bell’s value menu apart from competitors is the chain’s abundant offerings for every meal of the day, featuring different proteins and vegetarian options; flexibility within the menu; and continued dedication to innovating to create craveable items at low prices, a spokesperson said. In January, Taco Bell launched a Nacho Fries LTO that was its most successful launch ever, outdoing earlier hit Doritos Locos Taco. The success translated into more than 53 million orders of Nacho Fries in the first five weeks following its debut. The value train will keep speeding along at Taco Bell. The chain plans to bring back Nacho Fries this summer and, in addition to its mainstay value menu, introduce a total of 20 new national and test menu items before the year is out. So far, 10 of those items have been added, including $1 Stackers, $1 Grande Burritos and a $1 Cheesy Crunch Melt.

Checkers and Rally’s hone in on dayparts. While other brands are flexing their innovation muscles, 920-unit Checkers and Rally’s is exercising value-menu customizability and the snack occasion. “We target the frequent category user. What they want more than anything is great, craveable food for not a lot of money,” said Terri Snyder, chief marketing officer and senior vice president of Checkers and Rally’s. “We’re trying to be relevant at every price point, meal occasion.” For example, rather than offering the flexibility to choose the size of a drink at a value price, the chain is offering flexibility on the size of a burger, which can be ordered with one, two or three patties. With Checkers’ and Rally’s afternoon snack traffic almost as busy as lunch, and 22 percent of business occurring during the late-night occasion, the chain is offering more savory and sweet options to meet consumer cravings during those hours, including its new Italian Island Slushies. “You can win by stepping into these value wars — and we are — but you can also win for the snacking occasions,” Snyder said.  – Source: NRN.
Los Angeles, Sacramento Markets Join Trial Program

After a trial run of its beer delivery test in Phoenix, Pizza Hut said it is expanding the program to 100 locations in Arizona and California. The company is offering delivery of two packs and six packs of beer, ranging in price from between $3 and $4.50 for two packs and $5.99 and $10.99 for six packs. Six beer options are available: Budweiser, Bud Light, Blue Moon, Coors Light, Miller High Life and Shock Top. Pizza Hut, a division of Louisville-based Yum Brands, rolled out the beer delivery test in the Phoenix area late last year with three beer varieties. Starting this month, delivery has also been added at more Arizona locations including restaurants in Tucson, Glendale, Prescott, and Winslow. In California, beer delivery is now available at participating restaurants in Los Angeles, Bakersfield, Fresno, Riverside, Sacramento, Santa Barbara and Santa Clara, the company said. In Southern California, restaurants in Anaheim, Huntington Beach and Redding will be adding beer delivery later this month. Pizza Hut said free delivery will be offered in some Arizona markets when customers purchase select six-packs of beer. In a previous interview with Nation’s Restaurant News, Pizza Hut said it intends to expand the beer delivery program quickly in 2018.  Roughly 1,700 of Pizza Hut’s nearly 7,500 domestic locations already have liquor licenses. Pizza Hut operates over 16,700 restaurants in more than 100 countries. The company previously said it is also considering adding wine delivery, but did not provide additional details on that rollout. Beer delivery is not a new move for restaurant chains. Several casual-dining brands are testing or considering similar programs, including Huntington Beach, Calif.-based BJ’s Restaurants, Minneapolis-based Buffalo Wild Wings and Dallas-based TGI Fridays. Last week during its first quarter earnings call, Yum CEO Greg Creed said Pizza Hut remains in a turnaround phase. Same-store sales increased 1 percent for the quarter, compared with a 3-percent drop the previous year.  To improve sales, Pizza Hut must become “hot, fast and reliable” for the customer, Creed said. – Source: NRN.

This Strategy Helps Restaurants Reduce Turnover and Boost Service

The restaurant industry accounts for a whopping 10 percent of the entire U. S. workforce. With its 14.7 million employees nationwide, the sector is projected to add another 1.6 million jobs within the next 10 years, according to National Restaurant Association. Yet, while the forecast is promising, the industry remains more vulnerable to high turnover rates than many of its counterparts. And with national unemployment rate at around 4.1 percent, it’s worth considering how restaurant operators can better address the perennial challenge of attracting and retaining a solid workforce. “With unemployment being so low, the competition to hire and retain top talent is as aggressive as it’s ever been,” says David Eha, director of national accounts for Restaurant Technologies, a foodservice industry leader in kitchen automation services. “People have been talking a great deal about how guest experience is the next competitive battleground, and companies recognize they can’t win at this game if they’re constantly turning over employees.” In other words, restaurants will not succeed in delivering an optimal guest experience if their workers are on the prowl for better opportunities. Reducing the risk of injury in the workplace is one of the most important ways employers can instill a sense of loyalty in their staff, not to mention reduce the potential for costly workers’ compensation claims. An oil management system can reduce the risk of back injuries and burns, while non-slip shoes can prevent slips and falls. A strong fire safety program can help ensure staff is prepared while minimizing danger. Of course, there are a number of other simple and cost-effective ways restaurant operators can keep their teams satisfied, including employee recognition and involvement in operational decisions. Whether wait staff are recognized through an “employee of the month” program or line cooks are honored at franchisee conferences. “Nothing makes an employee feel more valued than soliciting their input or ideas on ways to make the business more efficient,” Eha says. “Empowering employees to create a more efficient workplace doesn’t just positively impact the bottom line, it eliminates non-value-added tasks employees dread and allows them to focus on more important jobs tasks, letting them become more creative in their work. This can ultimately lead to better satisfaction and reduced turnover.” Additionally, restaurant operators can reduce turnover by incentivizing employees through awards, such as gift cards or cash prizes. Some companies award employees for longevity, encouraging them to stay by offering added vacation time, one-time bonuses, or even automatic raises after specified durations. Lastly, Eha encourages employers to invest in their team’s future. “Pay for classes, seminars, or online education opportunities,” he says. “These investments will improve their skills—which of course will improve your business—and it shows a commitment to their future with the company.” Ultimately, such investments represent a relatively small price to pay given that turnover can cost employers as much as $5,800 per person in recruitment, selection, and training, according to Cornell University’s research Center for Hospitality Research. With the industry’s projected growth and increased competition for labor over the next decade, restaurant operators would be wise to take the long view in terms of investing in their workforce, as the old industry adage will become even more salient: if you hire great people and take care of them, they will take care of the customer. – Source: FSRMagazine

Menu-Labeling Laws Go Into Effect

May 7 marked the official start date for the oft-delayed menu-labeling laws. It took nearly a decade, but at last restaurants and other away-from-home food retailers are being required by federal obligation to include calorie counts on menus and signage. The rule applies to “any restaurant or retailer serving food for away-from-home consumption with more than 20 locations “doing business under the same name … and offering for sale substantially the same menu items” will be required to label their menus and signage with calorie counts, says the FDA website. Operators must also provide additional nutritional information to customers upon requests.

The National Restaurant Association lauded the move. “This is a welcome development for both the restaurant industry and consumers, and we are pleased that our efforts to preserve the May 7 compliance date were successful,” said Cicely Simpson, executive vice president at the National Restaurant Association, in a statement. “By setting a clear standard, this rule provides the necessary guidance and expectations for America’s restaurants to follow in order to continue delivering a high quality experience and customer service to everyone who walks through our doors, as well as the transparency our customers demand. We applaud Food and Drug Administration Commissioner Scott Gottlieb and the Trump Administration for working with the National Restaurant Association to push this policy across the finish line.” The rules were originally set to take hold in 2015. In May 2017, President Donald Trump’s FDA announced that the compliance date was being extended from May 5 to May 7, 2018. “We are taking this action to enable us to consider how we might further reduce the regulatory burden or increase flexibility while continuing to achieve our regulatory objectives, in keeping with the Administration’s policies,” the FDA said in a statement at the time.

The ObamaCare rule was initially issued in December 2014 and moved back twice under former President Barack Obama’s administration. It was first proposed as a federal labeling requirement by the NRA and other chains in 2008. How the FDA will monitor these rules is still to be determined. What they do achieve, however, is uniformity that was lacking before—and confusing to operators. In one example, New York City hit the breaks in August after reaching an agreement with the FDA regarding the impending enforcement of the controversial menu-labeling law. New York City agreed to delay its rollout of the rules until a federal regulation from the FDA is completed. The city originally said it would enforce the rules against retailers and restaurants starting August 21, well ahead of the FDA’s planned May 2018 compliance date. The FDA filed court papers in New York City to support action sought by the Food Marketing Institute, the National Restaurant Association, National Association of Convenience Stores, and the New York Association of Convenience Stores. Concepts that don’t fall into the traditional service format, like buffets and delis, have different rules to follow.

Here is a rundown of what the rules entail: Restaurant and retail chains will be required to list calorie counts for individual foods and beverages as well as combo meals next to the name or price of the item. Where self-service foods are offered, such as at salad bars and buffets, calories must be shown on signs near foods. Restaurants must also post that more complete nutrition information is available upon request. This information must cover: Total calories; Calories from fat; Total fat; Saturated fat; Trans fat; Cholesterol; Sodium; Total carbohydrates; Fiber; Sugars; Protein. Nutritional facts must also be substantiated in labs to prove that they are accurate. Menus and menu boards must also provide context by stating that it is recommended that adults consume 2,000 calories a day, but that individual calorie needs vary, says the FDA’s website. For restaurants that serve children, the following statement is acceptable: “1,200 to 1,400 calories a day is used for general nutrition advice for children ages 4 to 8 years and 1,400 to 2,000 calories a day for children ages 9 to 13 years, but calorie needs vary.” Who Must Follow the Rule? Any restaurant or retailer serving food for away-from-home consumption with more than 20 locations “doing business under the same name … and offering for sale substantially the same menu items” will be required to label their menus and signage with calorie counts, says the FDA website. This includes franchises that operate with the same name as other franchises or parent companies. The rule also applies to most categories of foodservice: tems served at full-service and quick-service restaurants, bakeries, and coffee shops, including foods from drive-thru windows. Items available for delivery or take-out; Self-serve options, including buffets and salad bars; Alcoholic beverages that are listed on menus; Foods served in entertainment venues, such as movie theaters and stadiums; Certain grocery and convenience store items. In addition, when multiple varieties of foods or meals are available, the calories for each variety must be listed. If more than two choices are available, calories must be represented as a range, such as 150-300 calories. Combo meals with multiple choices will also have to label calorie counts for two items as above or as a range when there are three or more options. Are There Exceptions to What Must be Posted? Only items that are regularly available are covered under the rule, so daily specials and limited-time offers are not required to be listed if they are available for fewer than 90 days. Condiments are also not required to have calorie counts listed, nor are custom orders. In addition, foods sold in some segments do not have to be labeled: Foods that are intended for more than one person and are sold at deli counters; Bottles of liquor that are stored or displayed behind a bar; Food served from food trucks, airplanes, or trains. Items served at schools that are part of the USDA’s school feeding programs. – Source: QSR.

How Sports Stadiums are Upping Their Foodservice Game

With three of the nation’s four prominent professional sports leagues in action, the May calendar is abuzz with action. The National Basketball Association and National Hockey League playoffs remain in full swing, while Major League Baseball has hit the one-month mark in its summer-long grind to the Fall Classic. Fans are pouring into stadiums from coast to coast and partaking in treasured rituals rooted in team, civic, and familial pride. But amid that energy, fans are enjoying something else beyond the competition: an increasingly dynamic foodservice environment that’s invigorating a once-mundane element of game day.

For decades, stadium concessionaires largely existed to feed the masses. They dispensed hot dogs and pizza, cotton candy and nachos, beer, soda, and packaged goods. Game-day foodservice stood a utilitarian experience and a secondary consideration to the competitive action. Those days, however, have evaporated alongside baseball’s three-inning save and basketball’s low-post game. Across all four professional leagues and in cities dotting North America, stadium foodservice has become something far more diverse and daring. Stadiums are now employing executive chefs, roaming mixologists, and pastry artisans; leaning on new technologies to provide in-seat delivery and to power kitchens; creating environments that drive convenience and social interaction; and serving inventive, locally inspired cuisine more often associated with upscale restaurants than bleachers. For Chris Bigelow, who has been involved with stadium foodservice for more than 40 years, including the last 30 as a consultant to arenas looking to elevate their foodservice game, the winds began shifting about a generation ago when stadiums began adding club levels. In developing a premium strata of seating, Bigelow contends, stadiums began targeting premium foodservice to match. Suddenly, steaks and sushi appeared alongside hot dogs, and imported Italian wine alongside Old Style beer. And as foodie culture intensified over the last decade, the pace only accelerated. “You can still get hot dogs, beer, and nachos because that’s what’s associated with the ballgame, but there’s so much more available now to create a more engaging, special experience for fans,” Bigelow says.

At the same time, new stadiums emerged with hospitality baked into the design. Thinking beyond a bowl with a playing surface in the middle, many team owners, stadium designers, and their foodservice partners rallied around the total fan experience, which included elevated food and beverage. That prompted partnerships with James Beard Award–winning chefs, food hall–like environments, clever culinary promotions, and black tie–caliber service. “When you start thinking about how you can make it better to be at the game, you can strike gold,” says Diana Evans, vice president of marketing at Centerplate, a stadium hospitality provider whose portfolio includes noteworthy spots such as Safeco Field in Seattle and the Smoothie King Center in New Orleans. And the evolution continues to chug along. One of the more notable trends in the broader restaurant industry of late has been the marriage of celebrity chefs with the quick-service model. It was inevitable, Bigelow says, that this rising trend would flow into stadiums and arenas. “It’s rare that a stadium will start a foodservice trend, but it will certainly emulate one,” he says. Seattle’s Safeco Field, for instance, features culinary concoctions from award-winning chef Ethan Stowell, while Michael Mina–crafted dishes are available at Levi’s Stadium, home of the San Francisco 49ers. Hungry to further represent their city’s unique culinary flair, stadiums have also partnered with heralded local concepts. Both Chicago baseball stadiums, for instance, serve Italian beef sandwiches from Buona, an established Windy City staple, while Citizens Bank Park in Philadelphia serves Philly cheesesteaks from Campo’s and Tony Luke’s. “We started going hyperlocal as a counter to the sameness out there,” Centerplate’s Evans says. “When you walk into a New Orleans Saints game, you’ll see the expected core items, but also some unique options singular to New Orleans that you won’t find in Denver, Miami, or Indianapolis.” That can also lead to some creative offerings characteristic of the local scene. Playing to Seattle’s sophisticated beer market, Safeco Field hosts the wildly popular “Firkin Fridays” with local brewers. In Boston, Fenway Park recently debuted Crème Brûlée French Toast, a house-made pastry cream and chocolate ganache with Vermont maple syrup and Fenway Farm’s strawberry sauce.

On another novel culinary front, Aramark has experimented with bringing fans into the R&D process with its pop-up-style Launch Test Kitchens outfitted with state-of-the-art equipment and digital signage. At Launch stands, which are now present in six U.S. venues, Aramark tests menu concepts and gathers real-time feedback from guests with the most successful programs rolled into permanent operations. In years past, much of a stadium’s culinary creativity or operational capacity was largely limited by infrastructure. Increasingly, however, new stadiums have unveiled high-powered kitchens with hoods, grills, and fryers, while older stadiums have incorporated ventless hoods to bring cooking capabilities to once-ignored stadium corners. Not only have stadiums supported more robust concessions spaces, but they’ve also invested in more of them. Bigelow says old stadiums might have had one cashier for every 1,000 fans; today, that ratio is trending toward one-to-100. Concourse spaces that might have typically been reserved for customer service or first aid are being replaced by concessions. By increasing points of service, stadiums boost convenience and speed for fans, while often capturing higher sales, as well. “A 25 percent increase in concession sales at a new stadium is not all that unusual given the added points of service alone,” Bigelow says. In addition to the fixed concession spaces, stadiums continue embracing mobility, giving a modern-day spin to the old-time hawker. Last year, Aramark debuted its Sip & Soar cocktail concept. Modeled after airline carts, Sip & Soar features bartenders who move throughout the stadium and concoct craft cocktails. Aramark also developed a Tuk Tuk program, outfitting three-wheeled electric vehicles with different concepts, including a cookie and ice cream concept called Jane Dough. “These types of innovations allow us to move with fans,” says Danielle Lazor, vice president of design and development at Aramark’s Sports & Entertainment division, which caters to some 100 million fans each year across more than 30 professional sports arenas. – Source: QSR.

Dudson Joins Arc Cardinal in Historic Partnership

Arc Cardinal and Dudson will announce a sales, marketing and distribution partnership in the North American market at the National Restaurant Association Show on May 19th to 22nd in Chicago. Two of the leading tableware manufacturers will now work in tandem to bring a complete tabletop package of the highest quality glassware, ceramic dinnerware and flatware to the hospitality industry. Both companies have a long history devoted to quality craftsmanship, innovation and sustainability. Dudson was founded in 1800 in Stoke-on-Trent, England. A leader in the ceramic sector, Dudson will contribute nine generations of expertise in producing stylish, yet remarkably durable dinnerware to the joint partnership thus offering chefs greater variety and the flexibility of customization.  Arc, the worldwide tabletop leader, was established in 1825 in Arques, Pas-de-Calais, France where the headquarters are still located. It is the leading manufacturer of crystal and glassware worldwide. Arc Cardinal is its North American subsidiary and currently commercializes Arcoroc and Chef & Sommelier brands. Dudson dinnerware is categorized into four main ranges; Evo, Harvest, Fine China and Finest Vitrified Tableware all of which carry a Lifetime Edge Chip Warranty.  Together they combine a variety of leading edge design, textures, shapes and sizes. This diversity in dinnerware easily complements the wide selection of chic, yet long-lasting tabletop for which Arc Cardinal is known, such as the Chef & Sommelier Sequence Collection made of resilient Krysta crystalline glass and barware designed by leading mixologists. “We are delighted to welcome Dudson to the Arc Cardinal portfolio. We think of our partnership as unique and unparalleled; two long-established manufacturers, each with an unrivalled pedigree, joining together to form an even stronger union,” says Alexandre Bollengier, president of Arc Cardinal. “Dudson’s focus on hospitality dinnerware gives us the ability to bring emerging trends to the market quickly” “Dudson is delighted to join in this historic partnership with Arc Cardinal,” says Max Dudson, CEO of Dudson. “Our common heritage and commitment to quality and sustainability make this a perfect fit. We’re looking forward to our combined presence in North America”. – Source: Total Food Service.

Creating a Periodic Equipment Cleaning Program

When bakers think of sanitation as a “must do,” they think of routine cleaning initiated when a plant stops a production run or does a product changeover. However, there are areas of equipment and a facility that are not accessible during routine cleaning. Hard-to-reach and other at-risk locations not normally exposed need to be scheduled for cleaning through a periodic equipment cleaning (PEC) program. There have been lengthy articles written on the need for PEC to control microbial or allergen risks. In most cases, microbial risk is perceived to be lower in baked or fried goods. While this is true for some products in this category, others have been recalled because they were contaminated with Listeria monocytogenes or Salmonella. There is another risk beyond microbial or allergens that can be controlled with a PEC program. It is microbial infestation in equipment harborage spots or cavities prior to or after the kill step of an oven or a fryer. The accumulation of dry ingredients or product fines, a supportive growth temperature and a period of weeks or months between deep cleaning of the equipment provide ideal conditions for insect growth from egg to adult stages. Some parts that need to be disassembled for periodic cleaning to prevent microbial and pest issues are guards on conveyors and other equipment, panels, assembly-creating cavities inside equipment, wire ways and wire bundles, and electrical boxes and control panels. Be curious and look for places where product and soil can accumulate. The intent is to take a proactive approach to prevent food quality or safety issues. PEC activities should be added to the master sanitation schedule. Include some of the more difficult tasks on an annual schedule to take advantage of available time to get the work done while not competing with maintenance of other plant activities. All downtime takes advanced planning. PEC activities can also be coordinated with preventive maintenance or other activities to minimize the number and length of downtime events. It is important to establish a frequency for each PEC task. For micro-sensitive products, use indicator swabs to determine frequency based on micro counts. To prevent infestation, look for product buildups before they can occur. The frequency will be facility- and equipment-dependent and can be decided by taking the equipment apart and noting soil buildup. After a month passes, assess the equipment again and adjust the frequency accordingly. If buildups are minimal or nonexistent, frequency can be reduced until the final frequency is established. During disassembly, take notes and pictures of the equipment to document observations, and begin drafting a cleaning procedure to ensure the task is performed as intended over time. The pictures will also help compare findings as the frequency of PEC tasks are adjusted to establish a baseline. Detailed or deep-cleaning activities are typically performed periodically, so it is important to establish what will be disassembled, how many resources will be needed and how to track the process to ensure completion and avoid potential food safety or quality issues. A similar concept is periodic infrastructure cleaning (PIC) that involves the scheduling of non-routine tasks such as duct cleaning, vent cleaning, lockers and more. PIC, PEC and routine cleaning tasks should be included as part of sanitation standard operating procedures and the master sanitation schedule. In addition to routine sanitation, PIC and PEC programs reduce both microbial and insect-related foreign material risk to your products. – Source: Food Business News.

Avoiding Accidental Allergens

In the processing and packaging areas of baking and snack facilities, allergen-containing dust has been identified as a potential cross-contamination point. It’s also a common observation that’s made during many audits, including those by Global Food Safety Initiative inspectors and others. Specifically, the concern is that the contamination of non-allergenic foods by airborne dust and aerosols could contaminate products on an adjacent line due to general air movement, static electricity or by the use of compressed air to clean equipment. To determine if this is a risk in your bakery or snack facility, you need to use a hazard analysis tool to verify whether the potential for dust cross-contamination exists and requires preventive control as defined by the Food Safety Modernization Act (FSMA). This concern dates back to the January 2013 proposed FSMA rule: “Proposed §117.135(d)(2)(i) would require that food allergen controls include those procedures, processes and practices employed for ensuring protection of food from cross-contact, including during storage and use. Examples of such controls include procedures for separating ingredients and finished products that contain allergens from those that do not contain allergens, and procedures for separating foods that contain different allergens. Such controls are essential to prevent the inadvertent incorporation of an allergen into a product for which it is not an ingredient.” Examples of such procedures for controlling food allergens include procedures that provide physical barriers; eliminate or minimize the formation of dust, aerosols or splashes; conduct manufacturing and processing of foods in different parts of a facility; emphasize separation in time, such as by production sequencing or by cleaning equipment between production runs; emphasize storage and handling appropriate to reduce the potential for cross-contact; and control the movement of tools and personnel that might carry allergens when the same production lines are used for both foods that contain allergens and foods that do not, or when the same production lines are used for foods that contain different allergens.

The Food Allergy Research and Resource Program (FARRP) has viewed dust cross-contamination in plants as a low risk. As a result, a baker’s primary focus should be on high-risk areas that include scheduling of product runs, controls during manufacturing (separate tools, GMPs, sequencing), effective cleaning between production runs, rework controls, and storage of allergen-­containing ingredients. Given the level of interest in potential dust cross-contamination based on FSMA — and with dust being cited as a risk in audits — collaboration was initiated with multiple companies, FARRP and myself to conduct trials of a method to measure dust contamination from adjacent lines. Time spent on this project was pro bono by FARRP, which tested the many samples, and me. The goal of this exercise was to provide a science-based hazard analysis to evaluate risk. Up to this point, personal opinions on dust drove control decisions and audit comments. The resulting method allows collection and analytical analysis to make science-based decisions. Known by FARRP as the “Stout Method,” it has been presented to and applauded by the FARRP board. The approach used in the test method is to ­scientifically measure the allergen dust generated by a processing, transfer, packaging or cleaning process. It also analyzes the impact to an adjacent open process, exposed contact surface or tools, which if exposed, could allow allergens to be incorporated into a product not formulated with that allergen. Companies that volunteered to participate in these studies were concerned with potential allergen dust cross-contamination from adjacent line operations (processing, transfer packaging or cleaning). One study focused on cross-contamination by adjacent lines at multiple exposure points from process to packaging. Another targeted batch processes with intermittent exposure and concerns with adjacent line cleaning. In the first model, multiple points where product was exposed were measured. This is referred to as the “continuous processing” scenario. The second scenario involved a single point of exposure in a mixing vessel with a hatch cover, which was open for a set time when dust could enter the open mixer. Referred to as a “batch scale” scenario, this method is an excellent tool for measuring impact of adjacent line cleaning but only if air pressure is not used in the cleaning process. Using compressed air for cleaning an allergen line when an adjacent line is operating can propel heavy dust and particulates onto adjacent lines. The Stout Method is based on the placement of multiple petri dishes next to the potential “allergen receiving line” to measure dust over multiple time periods while also measuring the exposure area, depth, weight and speed of the product. The residue in the petri dish is analyzed for allergen residue by FARRP. All of this information is inserted into a formula developed by FARRP and provides a mathematical calculation of potential ­allergen cross-contamination. In summary, this method yields a complete hazard analysis of the potential for allergen dust cross-­contamination as recommended by FSMA rules. Once this information is created, it can provide insight about the risk of dust cross-contamination and whether a preventive control is needed. And if such a control is ­indeed needed, then the processing plant may have to provide separation between adjacent lines to control dust movement from one area to another. – Source: Food Business News.

Sanitation Strategies: Keep it Simple

During a Christmas past, one of my daughters received a knitting kit with several rolls of yarn and needles accompanied with knitting directions. This daughter was actually quite intrigued by the thought of making herself an attractive scarf for the approaching cold, windy months in Chicago.

Shortly after opening, she began reading the directions but looked irritated and puzzled by them. A few weeks later, I was working with a customer who had ordered a new production line. The customer specified labeling certain products without the “may contain” statement if they didn’t contain allergens but were made in a facility that worked with allergenic ingredients in other products. This required the baker to perform an allergen clean following each line changeover.

The first question for me was where to start? How about giving good directions for cleaning with clear guidance and communicating them during training sessions using effective techniques?

I thought of my daughter, her knitting directions, her puzzled look and the frustration poor directions caused. Cleaning any production line is a difficult chore, but cleaning it to an allergen-free level is a difficult chore times five. This is especially true for a bakery line that has a large footprint and hard-to-clean processes and equipment such as mixers, lane dividers, bucket elevators, ovens, conveyors and packaging conveyors. Additionally, there is environmental cleaning that needs to occur to ensure the prevention of cross contamination. Unlabeled nut ingredients make up about 95% of allergic reactions with consumers and are the most life-threatening, so perfection in cleaning is critical.

The first step with this sanitation challenge is to define the sweet spot — the combination of cleaning methods and tools to ensure a scientifically valid, effective and efficient cleaning process. In this case, it would require wet cleaning, dry cleaning and most likely a modification of both on some equipment. Assembled into a fully descriptive document, this is called a Sanitation Standard Operating Procedure (SSOP). An SSOP is an accurate, clear and detailed standard process for the effective cleaning of each unit of food processing equipment (e.g. mixers and scales) and infrastructure (e.g. walls and floor drains).

An effective SSOP is created using systematic, repeatable cleaning principles. It must be validated initially for effectiveness, and then the results are verified with each use to prove the SSOP was followed. The SSOP must be well-documented as the legal record of cleaning. A well-written binder of SSOPs is the foundation for every effective and efficient sustainable sanitation program. It helps with planning a cleaning event and predicts the time needed to clean, the number of people required, and tools, utilities and total downtime involved for sanitation, maintenance, pre-op and so forth. A plan and procedure are needed to train employees effectively. If a plant needs to be clean, it starts with SSOPs so the cleaning process can be both effective and efficient. The goal of the cleaning is to transition a plant from a soiled state to a clean state and thus enable production to start. As we do this, experience tells us there are no varied levels of clean. When asked if the plant is clean, we should never say, “Well, almost, except for …” This is unacceptable. Clean is clean, and there is no in-between. If your company and plant are going to win every day for food safety, the facility needs to be clean — period. Well-defined SSOPs and employees who understand and execute them perfectly pave the way for food safety.

When creating an effective and efficient SSOP, it’s important to keep a few key points in mind. Determine your end goal. What are you trying to accomplish? In this situation, it is to remove product residue, any flavor residues and all allergenic proteins to a non-detectable level as measured by an allergen test kit specific for the allergens of concern. Determine the most effective and efficient method for cleaning. The optimal way to begin is from scratch, using best industry practices. Observe practices and behaviors during cleaning. Look at methods used on an existing line during cleaning of a similar process and product to understand practices. This will give you an understanding of how it is currently done and the level of effectiveness and efficiency. Engage sanitation employees in the process because they know everyday challenges. Find out what works well to solve current problems. Talk to the maintenance and personnel safety departments. What are their concerns with the methods used, watch-outs and hazards related to this task? Have there been any recordable personnel safety accidents? Ensure all company and regulatory requirements are met. At times, facilities are good at incorporating plant and corporate policies into programs; however, regulatory requirements can get overlooked. Things like using approved sanitation or maintenance chemicals of the correct pH or monitoring the BOD of wastewater discharges can help avoid issues later on. Once you have completed preparations, you are ready to work on writing the SSOP.

When writing the SSOP, know your audience. Visual aids can help shorten it and speed learning. A picture is worth 1,000 words. Re-read the SSOP as you write it to ensure it is understandable, and see if you could follow it. Explain scientific details simply so non-scientists can understand them. Keep it in accord with your audience’s capability. If poorly explained, it won’t be understood, and if not understood, it will not be used. The last tip is something we should practice routinely: Don’t assume you can leave out a small and obvious step or instruction. If it needs to happen, include the obvious. If not, although obvious, some may not know enough to include it, while others may follow the SSOP to the “T” and not include the obvious. In the end, you should have an SSOP for every cleaning task in your binder along with an index.

While this may seem daunting, I would encourage you to set a goal for completion and take it one step at a time. Your sanitation department may have diligent workers, but without the proper SSOPs and training, they may be working hard but cleaning ineffectively. It is like the old days when driving to a new location. You could take a map and call ahead for directions and, more often than not, still get lost. GPS units changed that, and well-thought-out SSOPs can avoid procedural errors. AOn the day after Christmas, my daughter was still pleased with her knitting gift but not with her knitting progress. As an accomplished learner, she figured out a solution through a YouTube video, which provided short but good directions. In a short lesson, she was on her way to perfect stitches for her scarf. It’s all about good directions and clear guidance communicated effectively, whether learning to knit or cleaning a bakery. In both cases, good direction and guidance saves time and frustration and makes for good attire and safe food. – Food Business News.

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