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Dear Loyal Followers:
Happy 242nd Birthday America!! Hard to believe what we as a Nation have done in just that short amount of time being a Country. Regardless of your political beliefs, I believe, that as Americans we should celebrate our contributions this Fourth of July to making the world a better place. As we celebrate our birthday, I ask you all to remember, in thoughts and prayers, those who are currently serving or have served in the Armed Forces which allow us the freedom to celebrate in a manner we choose. Especially those who have made the ultimate sacrifice for all of us.
So, as you open the grill and eat one of the 150 Million Hot Dogs that will be eaten over the 4th of July holidays, enjoy our birthday party!! When you are finished with the party, take a moment and read the latest edition of American Recruiters Global Foodservice News. We haven’t been around as long as the country; however, it is an excellent source of keeping pace with the Foodservice Nation. I hope you all have a great and successful summer quarter and are safe with your firecrackers!!
President
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Brian Niccol new CEO at Chipotle

Chipotle Mexican Grill Inc. will shut up to 65 underperforming restaurants and revamp its marketing under Chief Executive Officer Brian Niccol, executives said in the chain’s Wednesday investor call on Wednesday, but few other details were given on what shareholders should expect under the new leadership. Chipotle’s share price has risen more than 80 percent since Niccol’s hiring was announced in February as the company focused on how the chain could raise online sales. Chipotle will add “in-app” delivery of its products to about 2,000 restaurants by the end of the year and launch a long-awaited loyalty program in 2019. Executives did not say whether fast-casual dining menu items such as quesadillas and nachos would be added to the menu, and they brushed aside a question about international plans, saying they would focus on “aggressive growth” in the United States. Shares fell about 3.0 percent to $443 in after-hours trade after few details were delivered on how the beleaguered burrito maker would innovate its business model and improve its digital service. “There are some key areas they really did not address, notably international strategy,” Maxim Group analyst Stephen Anderson said. “Also capital allocation, particularly in regard to share buybacks and potential discussion for a dividend. I still think it will happen but it is probably going to be about a year or two away,” Anderson said. Executives said costs from corporate restructuring would raise expenses between $115 million to $135 million, including about $50 million to $60 million in the second quarter. The chain will close 55 to 65 restaurants in the process. Chipotle also said it would launch a customer loyalty program in 2019 and is exploring offering $2 tacos with a drink as part of a proposed “happy hour”. The announced changes come as the troubled burrito chain seeks to recover after a rash of food safety lapses dragged on the brand. After outbreaks of E. coli, salmonella and norovirus were linked to its restaurants in 2015, the company’s share price plummeted as diners retreated and rival chains grew their numbers through wider offerings and clever promotions. While Chipotle made its name as a pioneer of “real” ingredients, critics of the fast-casual chain have complained that its menu offerings have grown stale. Niccol, the former chief of Yum Brands Inc’s Taco Bell who spearheaded the popular “Doritos Locos Tacos” and $1 Nacho Fries prior to joining Chipotle in March, is on track to bring some new flair to the chain’s menu. Earlier this month, the company announced it is testing five new items, including quesadillas and nachos, at its test kitchen in New York. Analysts and investors expect Niccol to steer the company in a more modern direction, including through technology improvements, menu expansion and potentially opening the brand up to franchising. Analysts on average expect Chipotle’s retail sales to grow 8.4 percent in 2018, following 15 percent growth in 2017 and a 13 percent drop in 2016, according to Thomson Reuters data. – Source: Reuters.

Tim Hortons to Upgrade Distribution System, Open New Warehouse

Tim Hortons will spend $100 million to revamp its distribution system and open two new Canadian warehouses, months after some franchisees were angered when supply deliveries from the company were delayed because of software upgrades. The fast-food giant said Wednesday that the upgrades will include a modernization of their current system, an expansion of an existing warehouse in Debart, N.S., and two new facilities in Calgary and Langley, B.C.— provinces that are currently served by smaller warehouses that process a lower volume of products. The changes are expected to be complete by 2020 and to create 150 jobs, while also streamlining restaurant operations to provide a uniform standard of service across the country. “This is part of establishing our long-term commitment to Canada,” said Tim Hortons President Alex Macedo. “This is building for the future, building for the level of growth we expect to have and making sure that those owners that are located in Alberta and B.C., which are towards the end of our distribution curve, have the same excellent service that anyone in Ontario or Quebec has.”

The changes build on an April upgrade the company made to its software and supply chain distribution processes, which caused temporarily delays in beverage, sanitation supply, reusable merchandise and take-home coffee shipments. The delays added tension to the already-strained relationship Tim Hortons and its parent company Restaurant Brands International has with at least half of its restaurant owners, who banded together last year to form the Great White North Franchisee Association. The two sides have tussled over everything from cost-cutting measures made in the wake of Ontario’s minimum wage hike to a class-action lawsuit over the company’s alleged improper use of a $700 million national advertising fund. The GWNFA has also vowed to protest outside of Tim Hortons’s Oakville headquarters after a prominent franchisee involved in the advertising fund lawsuit said he was told by the company that he would be denied a licence renewal for one of his two Ontario locations at the end of August. Macedo has promised to make amends with franchisees and crossed the country to meet with thousands of them in a bid to regain their trust. When asked whether he had met with GWNFA or was worried about them protesting outside headquarters, Macedo said only that he has had conversations with members of the company’s elected franchisee advisory board, which is separate from GWNFA. He said their discussions centered around future programs the company will roll out, which he previously teased could include a kids menu, delivery options and a loyalty program. He said so far the company’s plans are being met with “a ton of support” from franchisees. “I have admitted this before, I don’t think we have done a really good job communicating with the system in the last couple of years and I think the better we communicate and the more results we share, I think the more people we get on board with our plan,” he said. “Part of the business of franchising is not to agree on everything, but if we can all row the boat in the same direction, I think that goes a long way and I am pretty sure we are getting more people to row in the same direction we are rowing.” – Source: The Canadian Press.

Leon to Bring “Naturally Fast Food” to the U.S.

In the early august, consumers were losing faith in fast food, or at least that’s how John Vincent remembers it. Eric Schlosser had released his book “Fast Food Nation,” a damning look at the quick-service industry. At the same time, consumers were increasingly embracing the Mediterranean diet as a more-healthful alternative to burgers and fries. “There was a growing sense that fast food in general had gone a bit array in terms of not necessarily feeding the well-being of the individual,” he said. Vincent saw an opportunity for a different kind of chain serving “naturally fast food.” So he created the restaurant concept Leon and opened the first location in London in 2004. “I think there was a sense that maybe it was possible to provide the same fun and same flavor, the same cravable dishes” [as fast food], said Vincent, Leon’s co-founder and CEO. “But also match that with the joy and vitality of the Mediterranean diet.”

The brand was built around five principles: The food had to “taste incredibly good, be remarkably good for you, allow you to feel good after you eat it (because sometimes with fast food you don’t always feel great after you eat it), be affordable and kind to the planet,” Vincent said. Now, after much success in Europe, he’s venturing to the U.S. with plans to open a Leon in Washington, D.C., in late summer. But will American diners crave the brand’s grilled halloumi wrap and Moroccan meatballs the way they do in the U.K.? The menu will be the same as it is in Europe, at least at first. This includes breakfast of porridge pots and fair-trade, organic coffee. A lunch and dinner menu of “hot boxes” — cooked food in boxes — wraps and burgers, with Leon’s popular baked fries. To drink: juices, lemonade and Kefir smoothies, although many patrons take advantage of the free water, said Vincent. “We will try and replicate what we do there, but be very open to learning quickly,” he said. “So, I think that rather than second guessing it, and then looking back and going, ‘I wonder if we had tried the halloumi whether it would have worked.’ The better thing to do is set it all out and then say ‘Oh, that’s not working let’s change it.’ But we have to try showing them true Leon, and if there are some bits of true Leon that they would prefer not to have, we have to take those off.” In the U.S., Vincent imagines he’ll be competing more with fast-casual chains than quick-service chains, although he is adamant that his brand is fast food. Prices are a bit higher, though because “traditional fast food is stable through the supply chain it’s easy to freeze and manage.” LEON uses fresh local ingredients. “I think we’re going to be about 10- to 15-percent higher than McDonald’s,” he said. “But surely we’ll be cheaper than fast casual, as you can easily spend $14.” Leon’s average check in the U.K. is $7.50.

Since 2012, former Olive Garden president Brad Blum has also been an investor in the Leon concept. He also sits on Leon’s board. Blum and partner GP Investments Ltd. Recently formed a new entity, FoodFirst Global Restaurants, Inc. Blum is owner / partner, chairman and CEO of FoodFirst Global Restaurants, which acquired Brio Tuscan Grille and Bravo Cucina Italiana. GP Investments is also a lead investor in Leon. In the U.S., Vincent expects a challenge, but he’s always had big plans for his brand. From the start he wanted to recreate the future of fast food. “The idea that came into my head was the idea that if God did fast food,” he said. Mortals, at least, seemed to have approved of his brand. Today there are 52 company-owned and franchised Leon locations throughout the U.K. and Europe. “My real goal, yes, of course, I have to run a food company, is to be a good force of good,” he said, but as much as monetary value can measure success, each restaurant on average generates $38,000 in revenue per week, according to the company. The average McDonald’s in the U.S. generates roughly $51,352 per week, based on Estimated Sales Per Unit from Nation’s Restaurant News’ Top 200 data.  “I think we’ve got to the point where the model is attractive, the model works operationally, it works financially, so now I think we’re ready to bring it to America, which is obviously the home of fast food,” Vincent said. “It’s not the same country as the U.K. People have different attitudes, different experiences. People look at the world differently here. But we’re excited to see how it works and if we can make it work.” – Source: NRN.

Chas Hermann Named Chief Brand Officer of Noodles & Co.

Chas Hermann has been named chief brand officer of Noodles & Co., a fast-casual restaurant chain that specializes in globally inspired, pasta-based dishes. In his new role, Mr. Hermann will develop and execute the company’s marketing, menu and culinary strategy. Mr. Hermann was most recently principal at Chas Hermann Consulting, where he partnered with the leadership teams of such brands as Del Taco and Papa Murphy’s Pizza to aid in their business strategies. Before that, he was senior vice-president of marketing, operations and supply chain for The Coffee Bean & Tea Leaf, senior vice-president of retail marketing at Commerce Bank and vice-president of marketing for Starbucks. Earlier in his career, Mr. Hermann held marketing, merchandising and financial leadership positions at Universal Studios, The Walt Disney Co. and Paramount Pictures. “I am delighted to welcome Chas Hermann to the Noodles team,” said Dave Boennighausen, chief executive officer at Noodles & Co. “His vast experience and track record leading brand strategy across a wide variety of different growth companies coupled with his alignment to our strong core values will be a great asset as we continue to execute on our strategy to become one of the leaders in the fast-casual restaurant landscape.” — Source: Food Business News.

Mike Ellis Named Chief Development Officer of FoodFirst Global Restaurants

Newly formed restaurant company FoodFirst Global Restaurants has tapped another Darden Restaurants Inc. veteran for its executive team. Columbus, Ohio-based FoodFirst, which recently acquired Brio Tuscan Grille and Bravo Cucina Italiana brands, named Mike Ellis as chief development officer. Ellis previously worked at Orlando-based Darden as head of development for the multiconcept operator, whose portfolio of brands include Olive Garden and Seasons 52. Ellis also previously worked for BP Convenience Stores. Ellis will report directly to FoodFirst CEO Brad Blum, a longtime industry veteran and another former Darden executive. Blum served as president of Olive Garden from 1994 to 2002. “We are assembling a first-class team of leaders who are passionate about Good Food for the Planet,” Blum said in a statement. “Mike brings both experience and wisdom when dealing with all aspects of real estate to set up our restaurant teams and company for success. He will play an integral role in our go-forward plans to thoroughly reinvigorate and then expand Brio and Bravo. We welcome Mike to our new company as he focuses on each of our current 110 restaurants.” Ellis will execute the company’s real estate strategy and will work with Blum on restaurant remodels and growth strategy. Blum told Nation’s Restaurant News in May that the company plans to build new brands “from scratch” as well as look for brands to acquire.  “This is a great moment. I am so pleased to join the FoodFirst team,” Ellis said in a statement. “The company has a compelling vision and a strong team of professionals who are dedicated to making a difference in the industry. I am ready to roll up my sleeves to begin refreshing our brands and profitably growing our business.” Bravo Brio Restaurant Group went private earlier this year in a deal valued at about $100 million. The Columbus, Ohio-based company was acquired by Spice Private Equity Ltd., a division of Brazil-based investment firm GP Investments Ltd. FoodFirst Global Restaurants was created late last month as a partnership between Blum and GP Investments. – Source: NRN.

Rebecca Miller to senior VP of marketing at On The Border Mexican Grill & Cantina

Rebecca Miller has been promoted to senior vice-president of marketing at On The Border Mexican Grill & Cantina. She was most recently vice-president of marketing and digital experience for the company. In her new role, Ms. Miller will oversee all marketing initiatives for On The Border, as well as culinary innovation, guest relations and catering. She will report to Matt Hood, president and chief executive officer. “On The Border is a very special company,” Ms. Miller said. “I am honored by the opportunity to lead such a talented team as we work to revitalize, evolve and differentiate the brand and expand our leadership position in the industry.” Ms. Miller joined On The Border in 2016 as vice-president of marketing and was promoted to vice-president of marketing and digital experience in 2017. Before that, she spent nine years at Pizza Hut in marketing leadership roles of increasing responsibility, eventually becoming director of brand marketing in 2014. Ms. Miller began her career with JCPenney Company, Inc. in 2005 as associate marketing analyst of national advertising. “Rebecca brings a powerful combination of brand building skills and business acumen to On The Border,” Mr. Hood said. “Rebecca’s work-ethic, teamwork and consumer-centric focus have helped make On The Border a stronger company, and we are looking forward to the impact her leadership will continue to make on her team and the brand.” – Source: Food Business News.

Drayton Martin Joins Dunkin’ Brands, Inc.

Drayton Martin has joined Dunkin’ Brands, Inc. as vice-president of brand stewardship for Dunkin’ Donuts. In this role, she will lead the development and implementation of Dunkin’s brand messaging across all channels, including advertising, packaging, in-store and digital. Additionally, she will oversee the company’s internal brand marketing team and external creative agency partners. Ms. Martin was most recently executive director at advertising agency MullenLowe, where she directed campaigns for brands such as JetBlue, Century21 and Four Seasons Hotels & Resorts. In her 14 years with MullenLowe, she also held the roles of senior vice-president, group account director and account director. Before joining MullenLowe, Ms. Martin worked at a handful of other advertising agencies, including Holland Mark Advertising, Hill Holliday, PSK, Publicis and Bozell Worldwide. “Drayton has a long and successful track record in creating compelling creative work and leading strong teams that have helped transform leading global consumer companies,” said Tony Weisman, chief marketing officer for Dunkin’ Donuts U.S. “Her extensive experience makes her well positioned to lead and advance our creative vision and long-term strategic plans to drive engagement and excitement for the Dunkin’ Donuts brand and strengthen our position as the leading on-the-go, beverage-led brand.” – Source: Food Business News.

Red Lobster Announces Major Delivery Deal with DoorDash

Red Lobster is getting on the delivery boat. The casual-dinning leader announced Tuesday (June 26) an expanded partnership with DoorDash to bring its food to more than 300 locations across the U.S. and Canada by mid-July. Red Lobster said the platform would fully integrate into its current point-of-sale system. The move is another major off-premises investment for Red Lobster, which plans to bring delivery to more than 90 percent of its restaurants through DoorDash, GrubHub, Amazon Restaurants, and other providers. There are currently more than 700 Red Lobster locations. Red Lobster also plans to continue to enhance to-go offerings.

It recently launched online ordering nationwide and has established dedicated parking spots for take-out in many locations. Additionally, Red Lobster updated its packaging to help maintain the integrity of orders. Red Lobster is expanding the functionality of its My Red Lobster Rewards platform as well to include online ordering. The off-premises push is another part of an eventful 50th year in business for the iconic brand. Since becoming an independent company in 2014, Red Lobster has opened 22 new restaurants. The chain recently launched a new menu highlighting Tasting Plates, made some significant kitchen upgrades, including new equipment, like lobster & crab pots and sauté stations, and introduced fresh technology to ensure all components of each order finishes cooking at the same time. This $51 million investment in new equipment and back-of-house technology, Red Lobster says, allows the chain to improve the quality of its food and pace of meal. Back in January, Red Lobster announced its Seafood with Standards commitment. It promised to support best fishing and farming practices with eco-certifications in seafood sourcing around the world. Among the requirements: Traceable … to a known and trusted source; Sustainable … only sourced from trusted suppliers who follow industry best practices; Responsible … by following Total Allowable Catch (TAC) and other regulatory efforts that manage fish populations, such as fishing quotas, and avoiding serving at-risk species. Red Lobster took it to the next level May 15 when it partnered with The Monterey Bay Aquarium Seafood Watch Program. – Source: fsrmagazine.

Chick-fil-A Has the Most Satisfied Customer

The iconic chicken brand continues to rule the category. The latest results from the American Customer Satisfaction Index are in. From an overall perspective, it was a good year for quick service, as satisfaction upped 1.3 percent to an ACSI score of 80. The data, which also measures full-service brands, is based on interviews with 22,522 customers, chosen at random. They are asked to evaluate their recent experiences with the largest brands in terms of market share, plus an aggregate category consisting of “all other or smaller” restaurants. From there, the data goes into ACSI’s cause-and-effect econometric model, which estimates customer satisfaction as the result of the survey-measured inputs of customer expectations, perceptions of quality, and perceptions of value. The ACSI model, in turn, links customer satisfaction with the survey-measured outcomes of customer complaints and customer loyalty.

On to the results: Chick-fil-A once again led the field with a score of 87—its third straight year hitting the mark, which is the highest of any restaurant chain, full or limited service (Texas Roadhouse topped the sit-down category with an 82). Chick-fil-A, which has more than 2,200 restaurants in 47 states and Washington, D.C., reported over $9 billion in revenue in 2017, marking 50 consecutive years of sales growth. Some other notes to observe, Papa John’s and Pizza Hut are deadlocked while Domino’s is just behind. Papa Jonh’s comp sales fell 5.3 percent in the first quarter but the brand appears just fine when it comes to customer satisfaction. However, the brand slipped 2 percent to lose its spot as the top pizza chain. Pizza Hut, meanwhile, surged 5 percent after YUM! Brands poured $130 million into revitalizing the chain. Pizza Hut is on the upward swing, and broke a streak of five consecutive quarters of declining sales, and report comps gains of 1 percent to start fiscal 2018. In February Pizza Hut also became the official pizza of the NFL, taking over for Papa John’s. The jump in customer satisfaction mirrored KFC’s 7 percent 2016 hike that also came after a YUM! Brands revitalization investment. For Domino’s, domestic same-store rocketed 8.3 percent, year-over-year, in the first quarter. According to the data, Chipotle’s customer sentiment is still leveled out following its big dip in 2016 following the food-safety outbreak. But with financials on the rise, a new direction under former Taco Bell CEO Brian Niccol, and apparently new menu changes coming, perhaps the Mexican fast could be in line for a sizable boost next year. The four burger chains—Wendy’s, Burger King, Jack in the Box, and McDonald’s—have exhibited flat, or nearly flat, customer satisfaction over the past three years. “As in the full-service segment, these well-known names are focusing on attracting and holding a younger demographic through technology—from investing in automated kiosks to exploring mobile fast pass lanes,” the study said. “It will be interesting to see if such efforts will amp up customer satisfaction in the future.”

At 88, order fulfillment remains the top-rated aspect of the quick-service experience for customers. Staff performance (85) and food quality (85) are on the rise as well. Speed of service is gaining momentum, too. Service speed rose 2 percent to 84. Beverage quality (84) and beverage variety (79) are lagging full service. Food variety was 81 and website satisfaction 82. ACSI said it believes millennials are shifting the industry landscape thanks to a demand for fresh, organic ingredients, as well as a desire for new ways to order and deliver food. “In response, restaurants are revamping menus and investing in new technology (for example, smartphone apps and automated kiosks), as well as adding curbside and third-party delivery services. During the past five years, restaurant revenue from deliveries increased by 20 percent as a growing number of consumers favor at-home dining,” the study said. – Source: QSR.

IHOP to IHOB: Will the New Marketing Strategy Work?

Three weeks after the International House of Pancakes (IHOP) launched a teaser campaign to call itself IHOB to draw diners to its burgers, marketing pundits are still debating the wisdom of the rebranding move. However, investors of Glendale, Calif.-based Dine Brands Global, Inc. — IHOP’s parent organization — should be happy to see their stock gaining 30% in that period to $80.  For nearly 60 years, IHOP has positioned itself as a breakfast destination for its pancakes. But it clearly saw hidden value in another, ignored item on its menu – its burgers – and with a single tweet, opened the doors to the lunch and dinner markets. IHOP’s tweet spawned a viral discussion on social media, drawing both praise for what many saw as a bold move, and criticism for what others saw as a flop.  According to experts at Wharton and the University of Maryland, IHOP could see big gains if it can invest in product improvement and ensure quality control at its 1,650 locations. It also has to find ways to overcome the declining popularity of sit-down casual food restaurants and compete more effectively with fast-casual and quick-service restaurant chains like Chipotle, Shake Shack and Five Guys Burgers, they said.  The Long View. Judging IHOP’s rebranding strategy calls for “a long term view,” according to Wharton marketing professor Americus Reed. Remember the [consumer] purchase funnel — awareness, consideration, evaluation, liking, intent to buy, actual purchase, and post-purchase loyalty,” he said. He cautioned against rushing to write off the campaign as a flop. “There are many second- and third- and fourth-order effects — word of mouth — that may create lagged sales.” In order to work out well, repositioning of brands takes “time, effort, and message discipline,” said Reed. “Target did not become ‘Tar-jay’ overnight. Hyundai did not become a higher cached brand overnight.” More immediately, the social media momentum IHOP has gained is of course a boon that money cannot often buy. “Just the sheer volume of talk about IHOP and IHOB is a fantastic win for that company,” said Wharton marketing lecturer Jason Riis. IHOP should find profit in the talk about it, even if what’s said is not always complimentary.

In the days before the “B” in IHOB was revealed to represent “burgers,” “it created all kinds of speculation, and the new social media environment thrives on that kind of thing,” Riis said. “They got people guessing, and lots of people making fun, but their campaign has been goofy and playful and lighthearted from the beginning. On the manipulation or playing with social media, they did that brilliantly. I don’t think there’s any way they could have predicted this level of success.” One worry for IHOP would be that the buzz in social media ends up becoming short-lived, according to Henry C. Boyd, clinical professor of marketing at the University of Maryland. “The buzz … is great for now. But what’s going to happen when all of the dust settles and we look up and say, ‘Well, what was that all about, and did it really move the needle as far as sales are concerned for the burgers?’”  Riis and Boyd discussed the IHOP campaign on the Knowledge@Wharton show. “People are talking about it, and social media accounts of competitors are weighing in, so there is a lot of earned media for IHOP,” Reed said. “The question is: Will all this hype trigger people wanting to try the IHOP burger offering that would not otherwise do so?” IHOP’s strategy may also include an attempt to get more people to come in during non-breakfast hours, promoting the idea that they could have pancakes for lunch or dinner or late night supper, he added. Another worry for IHOP is that it is getting into the more challenging part of the burger market. “A lot of the headwind they’re facing is that broad category of fast-casual where you can go in and just pick up a burger or a meal without table service that’s reasonably high quality,” said Riis. That category is growing, he added, and cited Chipotle and Shake Shack among the chains in that space. “Casual dining is where you sit down and order, and that category is declining – that’s where IHOP sits.”  That said, it does make sense for IHOP to make a bid to enter that market and compete with the entrenched brands there, Riis said. “They don’t have to win. They just need a basic level of parity [with the other brands] that gives people another reason to go in there.”

Changing long-held perceptions among patrons is also an “uphill battle” for IHOP, said Boyd. “When you say IHOP, most people think pancakes,” he explained. “When it’s time for breakfast, I go IHOP. When it’s time for burgers, I go to In-N-Out Burger, or Shake Shack or Zinburger or some other establishment along those lines.”  Any meaningful impact on IHOP’s sales “is not going to happen unless there has been some kind of substantial change in the product,” said Riis. “All good rebranding programs, brand refreshes and rebrands start with a fundamental and also symbolic change in the product.”  Boyd said IHOP has to serve up burgers that compare well with competition, or else it could lose customer patronage. “That is the real concern,” he added. “It becomes a bit of a risky campaign where you’re saying, ‘We’re willing to change our name from pancakes to burgers and yet we didn’t live up to expectations.’” In order to avoid that situation, “the big stumbling block is quality control,” he added. It may be relatively easier to produce “a gourmet hamburger” at a few locations, but replicating that across a chain of 1,650 stores would be tough, he said. “Maybe now that they’ve got enough momentum, they can start to put their marketing dollars into product development and find ways to get a better, more consistent burger than they’ve had in the past, and find ways to compete better on a product basis with some of these successful chains,” said Riis. Reed noted that the company is trying to position its burgers as better than those of Wendy’s, McDonalds and Burger King, “but not quite a gourmet offering as Shake Shack or Five Guys or Bobby’s Burger Palace.”  Understanding IHOP’s Strategy. IHOP needed to do something to address declines in casual dining restaurants, pancake consumption and in revenues at its own chains, Riis said. Dine Brands Global, which also owns the Applebee’s chain, posted losses of $330 million for 2017 on sales of $605 million that were a big drop from $681 million in 2015. The company expects IHOP revenues to stay flat or grow 3% at most in 2018, but it has to contend with longer-term trends that aren’t exactly helpful. Riis noted that “pancakes are all about carbs, and the low-carb diets are up.” And for a chain that counts on families with kids, it isn’t promising when “people aren’t having kids as much as they were in previous [years].” IHOP’s “Ultimate Steak Burger” is priced at $6.95, with unlimited fries. Rees found that pricing policy smart. In their “mental accounting, people may attribute the cost to endless fries.” He said it might be a smart idea to offer unlimited fries because margins on those may be small in any case, like with unlimited refills in sodas, and “there are only so many servings of fries a single person can eat, anyway.” The $6.95 price also sets higher expectations of quality on par with a Five Guys, so that it is not seen to be in the same space as quick-service restaurants like Wendy’s, Burger King and McDonald’s, he added. “Of course, now IHOP has to deliver on that value proposition in terms of how consumers perceive the actual quality of their burgers.” Riis noted that a handful of others have attempted rebranding, such as Pizza Hut calling itself Pasta Hut a decade ago. With IHOP, “it really was a fundamental play on the name, and the part that they got right was creating a little bit of suspense and a teaser,” he said.  According to Riis, rebranding generally brings positive results. “Brands have to do some amount of refreshing on a regular basis to slightly change the meaning or tinker with what it is that consumers are coming in for and having new offerings,” he said. He recalled a case study about Red Lobster he wrote along with Harvard professor David E. Bell about a decade ago when the brand underwent a relaunch.  Riis recalled that at the time he did that study, Red Lobster was battling declining sales and negative customer satisfaction levels. The company changed its logo, changed the interiors at its restaurants, “but most fundamentally they improved the product,” he said. It brought in a new grilling system at all of its 800 locations, retrained its chefs and prepped its servers to pitch the menu to diners in a new way. “Those are big and expensive changes to make. But you have to get those in place before you start talking about it,” he added.  The experts agreed that IHOP’s core business of pancakes would stay unaffected if it fails to capitalize on the current social media buzz. At best, the chain’s patrons might shrug off the burger experiment as unwise, they felt. “They will be lauded for trying something different” and loyal IHOP customers will continue visiting its restaurants, Reed said.  “It’s not like the pancake narrative has been lost,” Riis said. “Lots of the social media discussions [about IHOP] still revolve around how great or how lousy the pancakes are, but a lot of people are having nostalgic feelings for the chain. And that’s all money in the bank, at least short term.” – Source: Knowledge@Wharton.

P.F. Chang’s Opens First Restaurant in China

P.F. Chang’s, the full-service Asian restaurant industry leader known for its Farm to Wok food philosophy where every dish is made from scratch every day in every restaurant, announced the opening of its first restaurant in China at the No1 Mall on the iconic Nanjing Road in Shanghai. P.F. Chang’s currently owns and operates more than 300 restaurants in 23 countries and territories. “We’re thrilled to bring P.F. Chang’s to China,” says Michael Osanloo, P.F. Chang’s CEO. “We have been very successful in 23 other countries and are confident our unique Asian-inspired offerings will resonate with the sophisticated Chinese consumer. Our food is made fresh, from scratch every day in every P.F. Chang’s restaurant around the world. We’re honored to offer this unique experience to Shanghainese consumers and travelers to this amazing city.” The upscale casual restaurant maintains its focus on guest comfort, warm hospitality and attentive, personable service. The a-la-carte menu offers a variety of handcrafted signature dishes prepared using only the freshest ingredients such as The Original Chang’s Chicken Lettuce Wraps, Mongolian Beef, The Original Dynamite Shrimp, Honey Chicken and Pancake, Grilled Asian Steak, Chengdu Spiced Lamb, Salt and Pepper Fish and Chips, Hokkien Street Noodles and red Cooked Pork and Beans among others. P.F. Chang’s plans to open six to eight restaurants in the U.S., and an additional 12-15 restaurants globally in 2018. – Source: fsrmagazine.

Social Media Platforms Demonstrating their Potential in the Foodservice Industry

The power of social media platforms like Facebook, LinkedIn, Twitter and others to connect friends, family and colleagues is well established. But as the media develop, food and beverage industry executives are learning more about the influence and usefulness of the data being generated. The information being communicated has the potential to alter consumer perceptions of foods, brands and companies as well as serving as a rapid response mechanism when public health events occur. Data provided by The Nielsen Co. show that social media platforms have grown quickly, with nearly 4 of 5 active Internet users employing the technology. Fifty-five per cent of U.S. adults have more than one social networking profile, and they spend far more time communicating using blogs and social networks than via e-mail. The influence of social media is expected to grow further as mobile technologies such as smart phones and tablet devices surpass personal computers as the leading method of accessing the Internet.

For most companies, social media represent marketing opportunities. They allow companies to engage with customers on a more personal level and to interact. These interactions give marketers the opportunity to analyze and divide consumer groups in ways that were once considered not cost effective. The interaction among users is just one area where the impact of social media is being felt. Earlier this year The Hartman Group, a market research firm, surveyed social media users to gain understanding of how the technology affects consumer perceptions of foods. The survey results show almost half of consumers learn about food and beverages via social networking sites, and 40% learn about food via web sites, apps and blogs. The study organizers said social media had helped transform the process of learning to prepare and cook food from an activity that involves a few trusted sources, such as family and friends, to one that is impacted by the concept of “crowd-sourcing,” which involves the opinions of many.

The process is also circular, because numerous times after a consumer decides to buy, prepare and eat a food after being influenced by social media, they then communicate their experiences using the same technology. The Hartman study also found that during an eating or drinking occasion nearly one-third of Americans use social media. Among the Millennial demographic, which comprises people between the ages of 18 and 32, the share using social media while eating or drinking rises to 47%. But the power of social media is not just limited to interactions and opinions. Public health authorities are learning that by reviewing large swaths of Internet data they may be able to more proactively react to public health crises. Called “infodemiology,” which relates to the use of Internet data to identify disease clusters, public health authorities posit that if they were reviewing Internet search traffic and social media during the E. coli outbreak related to sprouts in Germany and the cantaloupe event associated with Listeria in the United States this past year they may have been able to more proactively react to the crises. When consumers are reacting to an outbreak of a foodborne illness they tend to first do Internet searches about their symptoms before visiting a medical professional. These consumers also may communicate through social media that they are not feeling well. By reviewing these data public health authorities have the ability to see illness clusters form before consumers begin visiting their doctors. This, in turn, gives them the ability to alert public health officials in identified regions that an illness may be emerging. As the already amazing pace of personal electronic innovation quickens, new uses for social media and the data being generated will be identified. While it may be impossible to identify which new applications and platforms may succeed, there is little doubt the influence of social media will continue to grow and impact the food and beverage industry in ways that could not have even been imagined a few years ago. – Source: Food Business News.

New Range of Foodservice Packaging Options

Market-leading fresh food packaging manufacturer, LINPAC, is extending its food service offer by launching a comprehensive range of rigid rPET solutions for the sector. This complements the current LINPAC portfolio of EPS Hotpacs, catering trays, plates and bowls. The new range will allow customers to purchase a variety of food service packaging options from a single supplier. The complete offering now comprises hinged-lid and film lidded rigid rPET solutions for prepared fresh food such as sandwiches, salads, sushi and bakery. The launch includes LINPAC solutions New Leaf®, Pyramid Packs, Bol and event platters and all products will be available to order from stock. Throughout 2017, LINPAC plans to add exciting innovative new formats and designs to meet the demands of the food service market. Mark Durston, market development manager at LINPAC, commented: “Perfect for our loyal distributors, and their customers in the hotel, restaurant and catering industries, the new LINPAC range can be hand or machine packed at its on-sale location. Designed to deliver flexibility, with the ease of ordering from one supplier, LINPAC has an extremely comprehensive offer.” A key advantage of the range in today’s food service market is that each lightweight, crystal-clear solution is manufactured using high levels of post-consumer recyclate, which has been super-cleaned in-house by LINPAC to ensure compliance with all food safety regulations. The launch demonstrates the company’s commitment to creating a closed-loop recycling process and allows food service customers to contribute to a circular economy by utilizing sustainable fresh food packaging solutions. Mr Durston continues: “We’re pleased to deliver our innovative, functional and sustainable LINPAC solutions to the food service market. We look forward to introducing exciting new additions later this year.” – Source: LINPAC.com.

“Global, Secure, Connected”: Thanks to a new brand image, KNX is gaining ground in all its target markets

The completely revamped corporate identity plays to the strengths of the world’s gold standard for building automation. The home of intelligent building automation has received a fresh coat of paint: effective immediately, KNX is rolling out its global triumph with a completely modernized corporate identity (CI), which puts new emphasis on the KNX slogan: “Global, Secure, Connected”. As the world leader and gold standard when it comes to open technology in building automation, KNX is now able to better communicate its brand and reach an even broader target market thanks to its new look & feel which can be seen, for instance, on the website (www.knx.org), on flyers and all KNX publications. Increasing importance of smart homes “Although the intelligent networking of commercial premises has always been par for the course, when it comes to new builds, there has been a significant increase in smart home technology. KNX, with its wide-range of offerings, plays an important role in this industry as well. This being true, the new CI allows us to bring ourselves in line with the daily requirements of our system integrators, building site managers, architects and building managers” says Franz Kammerl, president of the KNX Association.

Even clearer the rebranding highlights the clear strengths of KNX: The ability to improve peoples’ lives by simplifying highly complex technologies. “Less technology, more clarity” is the resulting ethos of the communications strategy at KNX, which should help the company to continue to develop its world-leading, gold standard in open technology. The new CI will make the many benefits and the guiding principles of KNX even clearer and more accessible to a broader target market, thereby also increasing awareness of KNX certified products. KNX as the global face of building automation “Global, Secure, Connected: These are the core principles that make up KNX as a global face of building automation and which are now better conveyed by the new corporate identity” concluded the KNX president at the launch of the new CI. –Source: AutomatedBuildings.com.

AHR Expo Returns to Atlanta for the First Time Since 2001

The AHR Expo will return to Atlanta for the first time since 2001 for its 2019 Show at the Georgia World Congress Center. HVACR accounts for billions of dollars in revenue and is a key economic driver for the state of Georgia, with U.S. Department of Labor projections indicating it will see nearly 20 percent growth in the coming years. With this booming HVACR market, the region is a top location to host the next AHR Expo. We are thrilled to be back in this great city for the first time in 17 years. Atlanta, particularly the Georgia World Congress Center, is a hub for some of the country’s largest trade shows — a list that, for 2019, includes AHR. We are excited to be back in this region and to invite professionals from all over the world to experience its energy and pace.

The AHR Expo brings more than 60,000 attendees an exclusive opportunity to be at the forefront of experiencing and adopting the latest industry applications and products, as well as the chance to learn about emerging technologies before they are mainstream. Over 2,100 companies exhibit from 35 represented countries, making the three-day Show an opportunity to network with enough potential business partners to build out an entire year’s business prospects. We receive consistent feedback at each Show that AHR is the place for best-in-class education of industry trends and practices, as well as a source for professionals to network with other people in the business of all titles and trades. Every year we see returning exhibitors and attendees who have been with us for years, as well as companies launching into business. It’s an exciting place to convene with the best in practice and it really gives an accurate snapshot of what’s going on in the industry. “The AHR Expo is the heartbeat of the industry. Everybody that’s anybody is here, either exhibiting or attending,” said Kevin Bergin, director of Aspen Pumps Inc. at the 2018 Show. “We come to the Show to check the pulse of the industry, and to get an opportunity to build relationships with new and existing customers in the U.S. This Show lets us see how people are thinking about the year ahead. Based on the [2018 Show], we’re seeing a lot of confidence, and in our product category, the industry is still growing and that’s a big opportunity for us in the U.S.” Atlanta is home to many popular tourism attractions to be seen outside of the Show, including the World of Coca-Cola, Centennial Olympic Park and the world-famous Georgia Aquarium.

The 2019 AHR Expo’s return to Atlanta presents an exciting opportunity for professionals from all over the world to visit the Southeast region and to experience it first-hand. – Automated buildings .com.

Thank you for reading The Global Foodservice E-newsletter from American Recruiters!

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