To Our Valued Subscribers:

Here it is the beginning of March, our National Pastime is in spring training, the c-virus is wrecking some international travel, the stock market is “Correcting”, and we have primary elections going on in just about every state. Do you think March is coming in like a Lion?? One positive for us according to Technomic, Inc. is that the key economic indicator for our industry (Disposable Personal Income) is still strong and is likely to trend upward. Some good news for sure. Other good news is that employment is still at record highs and my colleagues and I have some great stealth candidates in equipment sales, HVAC, engineering, smallwares, supply chain management, product development etc. so if you have a need. Now. is the time to contact me or my American Recruiter Associates to find that extraordinary performer who can fill that void. As I stated earlier, MLB spring training is beginning and a recent article I read in RHR International suggested that all leaders of organizations should go through their own spring training and focus on making their teams better in the coming months. Here are a few tips provided by former Campbell Soup CEO Douglas Conant that may assist you in your planning:

·     Be Clear on What Matters: make sure everyone knows the goals

·     Put People First: believe in your employees

·     Incentivize Change: give credit where credit is due

These are just three of the many discussed and if you would like to go over the entire list or discuss some of these Stealth candidates we represent, give me a call and we can share. Enjoy the latest edition of American Recruiters Global Foodservice News and Spring Training.

Craig Wilson

President

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Industry Opportunities for 2020

People want to use restaurants. According to new data from the National Restaurant Association, heading into a new decade, pent-up demand for restaurants remains high. It’s also the 11th consecutive year of industry growth, and operators are interested in using all the tools at their disposal to stay top-of-mind with an evolving consumer base. The National Restaurant Association’s 2020 State of the Restaurant Industry Report highlights real-time trends and the data behind them. Based on its findings, here are 20 areas of opportunity for growth in 2020 — and beyond.

Source local ingredients. Seven in 10 restaurant operators say consumers are more interested in locally sourced menu items than they were two years ago. Add healthy options. Sixty-five percent of adults say they order more healthful options at restaurants than they did two years ago, and 85% of operators say they’ve noticed a shift in the amount of attention diners are paying to these options.

Think sustainably — and tell people! Plenty of operators engage in sustainable practices, fewer share this story. Three in four restaurant operators say consumers are more interested in environmentally sustainable menu items than they were two years ago, and over half of diners say they’re more likely to visit a restaurant that features them.

Hop on the plant-based trend. In a recent survey, more than 600 chefs ranked plant-based proteins high in menu and protein categories, indicating sustained interest from consumers and businesses. Mushrooms ranked especially high this year, too, whether blended into burgers or as stand-alone ingredients.

There’s opportunity in alcoholic beverages … Twenty-two percent of fast-casual operators believe alcoholic beverages will become more popular within their segment in 2020. Then there’s delivery potential: 56% of adults — including eight in 10 millennials (age 24-39) say they would be likely to order alcoholic beverages if they were offered as part of a food delivery order from a restaurant. (The ability to do this varies by jurisdiction.) … but plenty of interest in creative nonalcoholic and low alcohol-by-volume options, too. There’s much greater diversification and availability of nonalcoholic beverages, and a lot more research and development going into the category.

Offer more technology. Consumers are asking for it, and the majority want technology that reduces transaction friction and increases convenience — not the kind of tech that replaces humans. Don’t get distracted by the flashy new tech options. Fewer than a quarter of consumers say that tech like self-driving cars and delivery drones, or food-preparing robots are a good idea. Don’t overlook tech basics. Even with all the new technology on offer, the majority of consumers use it for the basics: checking the menu, location, hours, and reviews. Keep these updated across channels. Invest in off-premises. A majority of operators across industry segments see off-premises options — drive-thru, takeout, curb-side pickup and delivery — as the best opportunity for future growth, including 80% of quick service and fast-casual operators. Still, only about half of operators say they plan to devote more resources to expanding this side of their business in the next year.

Consider delivery. Overall, roughly half of restaurant operators say their restaurant offers delivery. Fast-casual operators were the most likely to say they offer a delivery option.

Offer easy additions to home-prepared meals. Three in four adults say they are more likely to stay at home and watch on-demand television and videos than they were two years ago. While this can cut down on foot traffic at restaurants, it’s also an opportunity to expand consumers’ at-home options. Fifty-eight percent of adults (including 69% of those ages 18-23) say they’re open to supplementing home-cooked meals with restaurant dishes.

Highlight value. A good deal never goes out of style, and consumers and operators agree that everyone appreciates value. Catch a customer’s attention: roughly 8 in 10 restaurant operators say consumers are more value-conscious than they were two years ago. Engage your customers, they want to hear from you. Nearly half of restaurant operators say their customers’ loyalty is more difficult to maintain than it was two years ago, but consumers want to stay involved. More than eight in 10 say they are more likely to visit a restaurant that offers a customer loyalty and reward program.

And keep talking to them! A strong majority of adults, including 91% of millennials (ages 24-39) say they’d try to take advantage of specials communicated via smartphone app.

Try something unexpected. The time is right for experimentation and creativity. Three in four adults say they would likely pay attention to variable pricing — that is, real-time price adjustments for specific times of the day or days of the week. Busy times mean higher pricing; prices drop during slower periods. Two-thirds of adults say they would be likely to take advantage of a house account, pre-paying a certain amount to receive a bonus amount added to their account.

Get involved. Nine in 10 restaurant operators make charitable donations in their communities. Consumers notice – especially the younger ones. Half of consumers say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. Among Gen Z adults (ages 18-23), this soars to 70%. Think differently across dayparts.

Changing times lead to changing habits. Consumers want easy breakfast food and beverage options. Half of employed adults bring their lunch to work less frequently. Over half go out for an afternoon snack or beverage more frequently. And 61% of employed adults say they are more likely to pick up take-out food for dinner on the way home from work than they were two years ago.

Engage an emerging workforce … Employee turnover in hospitality is high, the highest level since 2007. Still, people view restaurant jobs favorably — 93% of all adults agree that the restaurant industry is a good place to get a first job and learn fundamental working skills. Roughly one in four restaurant job openings in 2019 were filled by people for whom it was the first regular job they have ever had, and the number of teenagers working in restaurants is gradually trending higher. … and recognize the opportunity for older adults. Older adults will represent a much larger proportion of the overall U.S. labor force in the years ahead, while the number of teens available for work will continue to shrink. The number of adults aged 65 and older in the labor force is expected to increase 6.1 million by 2028.

Be clear when communicating employee initiatives. Given high turnover in the industry, it’s always important for the employer to visibly communicate how they’re investing in the employee development and training. It’s much easier to retain an existing employee than find a new one. – Source: the National Restaurant Association.

Pesticide meets Environmental Protection Agency re-Approval

The Environmental Protection Agency in January ruled that a chemical manufactured for agricultural weed control is not a carcinogen and creates no risks to human health when used as directed. At the same time the agency has compelled further mitigation measures to ensure pesticide sprays target certain pests and curb glyphosate resistance in weeds. The E.P.A. last week re-approved glyphosate under the Federal Insecticide, Fungicide and Rodenticide Act, legislation first enacted in 1910. A 1996 amendment under the Food Quality Protection Act required all pesticides sold or distributed in the United States to undergo continuous review in order to assess and reduce risk as “changes in science, public policy and pesticide use practices will occur over time,” the agency said in its glyphosate decision. A 2006 registration review program established the periodic review frequency at 15 years. The reregistration decision was praised by U.S. agricultural leaders, including Zippy Duvall, president of the American Farm Bureau, who said it was “a win for sustainable agriculture. “Today’s decision means farmers can continue to use conservation tillage and no-till methods on their farms to conserve soil, preserve and increase nutrients, improve water quality, trap excess carbon in the soil and reduce greenhouse gas emissions,” he said. “That said, safety is our first priority and the science clearly shows that this tool is both safe and effective.” Sold commercially as Roundup, glyphosate was first registered for U.S. use in 1974 to control invasive weeds in agricultural production and residential landscaping. Producers less frequently have employed glyphosate as a desiccant to kill a crop to assist with dry-down just prior to harvest. The agency had re-examined glyphosate as part of a periodic review of pesticides to ensure each can perform as designed without unreasonable adverse effects to human health. In its Interim Registration Review Decision for Glyphosate released last week, the E.P.A. said “… there are no risks of concern to human health when glyphosate is used according to the label and that it is not a carcinogen …” The 36-page decision, available to the public by searching “glyphosate” at epa.gov, states both cancer and non-cancer effects were evaluated for glyphosate and its metabolites. In its decision, the agency concurred with the findings of numerous global bodies, including the Canadian Pest Management Regulatory Agency, the Australian Pesticide and Veterinary Medicines Authority, the European Food Safety Authority, and the German Federal Institute for Occupational Safety and Health. An earlier scientific review by the U.S. Department of Agriculture produced the same findings. The re-approval of glyphosate came with changes to labeling, requiring a “medium” droplet size when spraying glyphosate alone, and a “fine” droplet when applying glyphosate mixed in a tank with other pesticides. – Source: Food Business News.

Jimmy John’s Under Fire for Food Safety Practices

The Food and Drug Administration on Feb. 25 issued a warning letter to Jimmy John’s in connection with the Champaign, Ill.-based sandwich shop chain’s role in a string of recent outbreaks of E. coli and salmonella. Citing evidence from five outbreaks, including the most recent outbreak in Iowa during December 2019, the F.D.A. said Jimmy John’s franchised restaurants “engaged in a pattern of receiving and offering for sale adulterated fresh produce, specifically clover sprouts and cucumbers.” Data from the Iowa Department of Public Health show 22 people from Iowa were infected with the outbreak strain of E. coli O103 as of Jan. 7, and all 20 of the people interviewed in connection with the outbreak reported eating at one or more of 15 Jimmy John’s restaurants. Of the 20 people interviewed, 9 said they ate sprouts in the week before their illness. The F.D.A. also linked Jimmy John’s to outbreaks in 2018 in Illinois, Minnesota and Wisconsin; in 2014 in California, Michigan, Montana, Utah and Washington; in 2013 in Colorado; and in 2012 in 11 states. In total, the F.D.A. noted in the warning letter that outbreaks associated with Jimmy John’s spanned over the past seven years and affected at least 17 states, saying “the corporate-wide supplier control mechanisms you have in place for receiving fresh produce are inadequate.” The F.D.A. said it met with Jimmy John’s officials in May 2012, and during that meeting the sandwich chain’s officials said they would offer only clover sprouts and only source clover sprouts from (X) suppliers. “Since that corrective action, your firm has been implicated in three additional sprout-related outbreaks,” the F.D.A. said. “Documents from traceback investigations conducted by F.D.A., states and local partners demonstrate that in addition to (X) sprouts, Jimmy John’s restaurants are using multiple other sources of sprouts. “Although you stated that corrective actions were implemented following the 2019 and 2012 outbreaks, you have not provided F.D.A. with any information demonstrating long-term, sustainable corrections have been implemented throughout your organization to prevent this violation from recurring in the future. For example, providing F.D.A. with documentation of policies and practices demonstrating that you have made a corporate commitment to ensure produce covered by the Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption (Produce Safety Rule), Title 21 Code of Federal Regulations, Part 112 (21 CFR Part 112), specifically sprouts, and sourced by any Jimmy John’s restaurant will be procured from a farm or firm operating in compliance with the Produce Safety Rule, the Act, and, as applicable, the Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Foods (PC Rule), 21 CFR Part 117.” The F.D.A. has given Jimmy John’s 15 days to respond to its warning letter. Jimmy John’s has not responded to the letter but did note that in December it removed all sprouts from its restaurants until further notice. Source: Food Business News.

Focus Brands Appoints Jim Holthouser as CEO

Focus Brands, parent to Auntie Anne’s, Carvel, Cinnabon, Jamba, Moe’s Southwest Grill, McAlister’s Deli and Schlotzsky’s, announced the appointment of Jim Holthouser as CEO on Thursday, effective immediately. Holthouser succeeds Steve DeSutter. Focus Brands is majority owned by affiliates of private-equity firm Roark Capital Group. “Focus Brands is an outstanding company, recognized globally for its iconic brands, and I am pleased to take on this role at such an exciting time in the company’s history,” said Holthouser in a news release. “I look forward to working with the Focus Brands team, franchisees, and suppliers to continue growing our leading foodservices concepts, enhancing our customers’ experience and delivering value to all of our partners.” Holthouser, below, comes to Focus from Hilton, where he spent more than 20 years. He most recently served as executive vice president, global brands, marketing and loyalty at Hilton Worldwide.  “Jim is a results-oriented leader with a demonstrated history of partnering with team members and franchisees to drive results,” said Steve Romaniello, Focus Brands board chairman, in a news release. “His track record of managing multi-branded portfolios and growing brands is impressive and gives us great confidence that he is ideally suited to lead Focus Brands in its next phase of growth. We thank Steve for his leadership and service over the past six years and look forward to welcoming Jim to the Focus Brands family.” DeSutter is retiring after serving as the Company’s CEO for nearly six years. Under DeSutter’s leadership, Focus bought Jamba Juice in 2018 for $200 million. “It has been a great pleasure to serve as CEO of Focus Brands over the past six years, and I am confident that the business is positioned for continued growth with Jim at the helm,” said. DeSutter in a news release. “I’ve had the opportunity to get to know Jim, and he has impressed me with his passion for the brands, hospitality and franchising. While it’s always bittersweet to close the door on one chapter, I am very much looking forward to continuing to watch the business grow from my seat in retirement.” Source: NRN.

Checkers & Rally’s Taps Allen for CEO

She joins the quick-service chain from Boston Market, where she was CEO. Before that, she was president of Jack in the Box. She held several positions at Denny’s Corp., including chief brand officer and chief marketing officer, and was CMO for Dunkin’ Donuts. She also brings experience in the C.P.G. industry, having previously worked for PepsiCo as vice-president of marketing and innovation and brand director for Lays, Doritos and Cheetos. She succeeds Rick Silva, who left the company after 13 years as CEO and president. “We are delighted that Frances will be leading Checkers & Rally’s through its next leg of growth,” said Kevin Mailender, a member of the company’s board of directors and partner at Oak Hill Capital. “She is an accomplished leader in the restaurant industry. Her wealth of experience with leading brands and impressive set of skills will be highly valuable to our business and its outstanding franchisees.” – Source: Food Business News.

Nelson to Lead Marketing at Dunkin’ Brands

Jill McVicar Nelson has been named vice-president of marketing strategy at Dunkin’ Brands Group, Inc. In her new role, she will lead a reorganized team responsible for brand marketing and planning as well as value and pricing strategies. Ms. Nelson previously was director of corporate strategy and chief of staff to the chief executive officer at Dunkin’ Brands. She has held a variety of roles since joining Dunkin’ in 2011, including strategic initiatives manager, senior pricing analyst and business analytics analyst. Before joining Dunkin’ she was a consultant at IBM Global Business Services. “We are combining our strategic, go-to-market functions into one team in order to accelerate the growth of Dunkin’ U.S. through a more integrated marketing approach, and I am delighted to announce the appointment of Jill as the vice-president to lead this group,” said David Hoffmann, c.e.o. at Dunkin’ Brands. “Jill has been intimately involved in the creation and execution of our Blueprint for Growth, the multi-year plan to transform the Dunkin’ U.S. business. She has consistently demonstrated a deep knowledge of the business, sound strategic vision, and has built strong relationships throughout the organization and franchisee community.” Ms. Nelson received a bachelor’s degree in public policy from Duke University and a master’s degree in business administration from The Tuck School of Business at Dartmouth. – Source: Food Business News.

Cheesecake Factory Starts Taking Reservations

The Cheesecake Factory has started accepting reservations on a limited basis at all 206 of its namesake restaurants in the United States, a move intended to ease customers’ frustration with long wait times, executives revealed to investors. In reporting financial results for the fourth quarter ended Dec. 31, the company’s first as the owner of Fox Restaurant Concepts (FRC), the officials said little about the other concepts that have been brought into its fold through the complicated deal. But they noted that North Italia, the Italian concept acquired from Fox in a distinct transaction, posted a same-store sales gain for the quarter of 4%. The Cheesecake brand generated a comp increase of 0.6%. They also disclosed that eight more restaurants will be opened in 2020 by FRC, a free-standing division that serves as an incubator for new concepts the parent company can then develop and operate through its Cheesecake business. Included in the planned FRC stores are more units of Flower Child, a fast casual specializing in unprocessed foods that promise to promote health. Also in the pipeline for 2020 are six more units of North Italia, which opened another restaurant during Q4, bringing the current tally to 22.CEO David Overton said the Cheesecake brand will continue to expand overseas through licensing agreements, in addition to developing six stores domestically. Some of the company’s home-grown diversifications shrank during the quarter. Cheesecake closed one of its two RockSugar Southeast Asian Kitchen polished-casual restaurants, in Oakbrook, Ill., and shuttered the Grand Lux Cafe in Austin, Texas. Neither was “meeting our expectations,” said CFO Matt Clark. Off-premise sales continued to surge for the Cheesecake brand during Q4, the executives said, noting that to-go and delivery orders now generate 17% of total restaurant revenues. Cheesecake’s off-premise business has provided an opportunity to test a number of marketing initiatives, said company President David Gordon. The experiments will also enable the chain to “further lean into convenience,” he added. The new reservations option came out of that experimentation, Gordon continued. He explained that Cheesecake restaurants are now setting aside a certain portion of their tables for guests who want to book a seat ahead of time and avoid the queue. Currently, the chain fills its tables and bar seats on a first come, first served basis. “At the same time, [we] let guests know that they can always walk in, so that they’re not under the impression that we’re only taking reservations,” Gordon said. “And they’re all available through Yelp. So we’re marketing that through Yelp. “We’re hoping this additional convenience will encourage guests who are more pressed for time to dine with us,” Gordon continued. “Based on the deliberate approach we’re taking, and the results of our initial test, we expect our guest throughput to be consistent.” Overall, the company posted numbers that reflect the impact of the North Italia and FRC acquisitions, which both closed on Oct. 2. Net income for Q4 increased threefold from a year ago, to $48.7 million, on revenues of $694 million, up 18.6%. – Source: Restaurant Business.

7-Eleven Quietly Grows a Restaurant Chain

7-Eleven is trying a new way of competing with traditional quick-service restaurants: shoehorning a Mexican restaurant inside its stores. The convenience store giant started installing units of Laredo Taco Company inside its retail outlets about a year ago. It’s now tinkering with a new c-store format known internally as the Evolution concept, which prominently features Laredo as part of the design’s expanded food and beverage options. Three Evolution-style 7-Elevens are currently open, with more expected to be developed across the country this year, according to CSP, a sister publication of Restaurant Business. Also included in the Evolution format is a section called The Cellar, featuring wines and craft beers for on-premise consumption as well as takeout. Patrons of Laredo can dine on-site in an indoor seating section as well as on a patio. Laredo, a proprietary brand, specializes in handmade tacos and other Mexican street foods, all made from scratch. 7-Eleven acquired it through a complicated $3.3 billion deal with Sunoco in 2018. Included in the purchase were about 1,000 units of Stripes, a regional c-store chain that featured a Laredo-branded counter inside its stores. The quick-service station drew a cult following with its handmade tacos and other Mexican street foods. About 500 Laredo stations were opened within Stripes’ Southwestern stores before the retailer became part of 7-Eleven. The deal swelled 7-Eleven’s U.S. presence to more than 9,000 stores. Licensing rights to operate 207 Stripes stores not included in the Sunoco deal were awarded last year to another regional chain, Cal’s Convenience. The arrangement also allows those retail outlets to sport a Laredo unit inside. 7-Eleven has been a leader in blurring the line between c-stores and traditional quick-service restaurants. Much of that retail-foodservice competition has come in the morning, when convenience is paramount for many consumers. The expansion of Laredo is a challenge for lunch and dinner business. Restaurant connections are part of Laredo’s DNA. Stripes and Laredo were formerly overseen by Steve DeSutter, a Burger King executive who left Stripes for the CEO’s job at Focus Brands in 2014. DeSutter retired last week from Focus, the parent of Auntie Anne’s and a number of other quick-service operations. 7-Eleven’s CEO is Joe DiPinto, who is also chairman of the board of Brinker International, the parent of the Chili’s Grill & Bar and Maggiano’s Little Italy restaurant chains. The new Evolution concept is described by 7-Eleven as a “real-time experiential testing grounds” for innovations. A number of them are aimed at helping the c-store chain in the battle for share of stomach. In addition to a Laredo restaurant, the stores feature freshly made baked goods, touchscreen-operated self-service hot drink dispensers and a cold treats bar featuring frozen yogurt and ice cream. – Source: Restaurant Business.

McDonald’s has an Answer to Wendy’s Breakfast: Free Egg McMuffins

With Wendy’s launching breakfast nationwide, McDonald’s is sending its top breakfast player, the Egg McMuffin, into battle. In a clear move to disrupt Wendy’s March 2 national breakfast launch, the Chicago-based quick service chain announced plans to give away the iconic breakfast sandwich on Monday. The company is declaring March 2 “National Egg McMuffin Day.”  “While we’re giving the Egg McMuffin its moment, we’re really honoring our breakfast fans who have woken up with McDonald’s breakfast for nearly 50 years. And we just thought, ‘hey, why not declare March 2 as National Egg McMuffin Day?’,” David Tovar, vice president of U.S. Communications, said in a statement. “We’re always looking for new ways to show our fans love and remind them, no matter where they might be, a great tasting and convenient breakfast is just around the corner for them at McDonald’s.” Participating restaurants will offer the free sandwich from 6 a.m. to 10:30 a.m. to consumers who download a coupon on the chain’s app. The freebie is not valid on delivery orders.  The price of an Egg McMuffin in Orange, Calif. is $3.69. The Egg McMuffin, a cracked Grade A egg, Canadian bacon and American cheese on a toasted English Muffin, was first introduced in 1971. Like many classic McDonald’s menu favorites, the “Eggs Benedict on-the-go” sandwich was created by an operator. It is largely credited for making the chain’s breakfast menu one of the most popular among fast food fans. Still, McDonald’s has been losing share at breakfast, and understands the importance of shoring up its morning menu.  The chain recently added regional favorites, Chicken McGriddles and the McChicken Biscuit, to the national breakfast menu. “Breakfast is the only daypart in the industry that’s seeing traffic growth. We have to win at breakfast,” McDonald’s CEO Chris Kempczinski said during the chain’s latest earnings call. Wendy’s morning grub menu features nine items arranged in three categories: Croissants, Biscuits and Classics. Prices for a la carte items range in price from $2.59 for an egg and cheese biscuit with choice of sausage or bacon to $4.29 for the Breakfast Baconator or the Maple Bacon Chicken Croissant. Combo prices range in price from $5.29 to $6.39. – Source: NRN.

Hilton Foundation Gives $600K Grant to Help Train Underserved Youth for Jobs in Restaurants

Operators across the country know recruiting employees is a challenge, especially in this tight labor market. With the right training, underserved young adults — unemployed, not in school — can be set up to succeed in front- and back-of-house positions in everything from quickservice to tableservice operations. How do we connect employers with these potential employees? Conrad N. Hilton Founation presented the National Restaurany Association Educational Foundation with a $600,000 grant to implement and expand two of the Foundation’s hospitality-training programs to communities in Louisiana. The one-year grant will help the Foundation provide these young people, ages 16 to 24, with the restaurant job- and life-skill training they need to land an industry position. The programs, Resaurant Ready and the Hospitality Registered Apprenticeship, will be offered at two sites in New Orleans. Restaurant Ready partners with community-based organizations to provide training in six work-ready competency areas defined by the restaurant industry. The competencies are designed to help participants acquire the skills, discipline and confidence to start a job and stay employed. The Apprenticeship program enables new and current employees to earn while they learn. The program helps employees meet set competencies and advance into career positions through a combination of on-the-job experience and traditional classroom work. “We are thrilled to receive this grant,” says Rob Gifford, NRAEF president. “This initiative will help young people reach their full potential with good jobs and a chance for a better future; they’ll have opportunities to advance in our industry. The Hilton Foundation is dedicated to improving the lives of disadvantaged people, and we are proud to support this effort through our programs.” As part of the initiative, the Foundation will work with the Louisiana Restaurant Association Educational Foundation and local community-based organizations to deliver job-readiness training, entry-level employment and apprenticeship opportunities statewide. Participating community organizations include Café Reconcile, a nonprofit restaurant that provides paid-job training, and Liberty’s Kitchen, which operates two restaurants and a catering business and teaches skills and training to underserved youth. Both are located in New Orleans. The restaurant/ foodservice industry is a major economic driver in Louisiana:

There are 9,818 eating and drinking places in Louisiana.

In 2019, restaurant and foodservice jobs in Louisiana represented 11% of employment in the state. By 2029, restaurant and foodservice industry jobs in the state are projected to grow by 7%. One in 10 people in the state are restaurant industry employees. NRAEF Chairman Stan Harris said the grant would help the Foundation “build a direct hiring-pipeline from the community-based organizations conducting the training to employers who can hire these young adults as soon as they’re ready.” – Source: the National Restaurant Association Educational Foundation.

Roy Rogers Relaunches Growth Effort

Jeremy Biser recalls growing up in Western Maryland, where going to Roy Rogers was a treat. Biser is now executive vice president of the 52-year-old Western-themed brand, which oversaw nearly 650 restaurants at its peak back in the late 1980s. The company began 2020 with 48 units—24 company-owned and 24 franchised—but Biser believes there’s an opportunity over time to reach back into the hundreds. “People have a love for the Roy Rogers brand,” Biser says. “Everywhere I go, people tell me stories about experiences they’ve had at Roy Rogers at one point in their life. I want to be able to bring that back to people.” The Frederick, Maryland-based chain was founded in 1968, and is named after a popular Western star in the mid-20th century. By 1990, Marriott sold off Roy Rogers when their hotel division faced financial woes, and Imasco, then the parent of Hardee’s, snapped it up in an attempt to transform the brand into Hardee’s units to break ground in the Northeast. That conversion attempt fell flat, and by the mid-90s Hardee’s had sold about 110 units to Boston Chicken/Market in the Philadelphia area, 150 units in New York and New Jersey to Burger King and Wendy’s, and 182 restaurants to McDonald’s. In the late 90s, Hardee’s was sold to CKE (Carl Karcher Enterprises), the parent company of Carl’s Jr. Jim Plamondon and his brother, Pete Plamondon Jr., joined Roy Rogers after Hardee’s acquired the brand. They bought their father Pete Plamondon Sr.’s operating company, Plamondon Enterprises Inc., which he had established to run his franchises, in 1998. The pair acquired the Roy Rogers trademark and rights to franchise the concept from Imasco in 2002. When the Plamondon brothers officially took control of Roy Rogers, the unit count had dropped into the 40s. Biser says the Plamondon brothers did a good job of growing company stores, but they needed help expanding the franchise side of the business. When Biser began his tenure in 2018, he took a step back for about 90 days and completed a full needs-assessment of everything—supply chain, marketing, people, operations, organizational structure, brand positioning, and partnerships. He posed multiple questions, such as how can corporate strengthen the brand and how does it relaunch the chain in a manner that addresses brand relevance and promotes growth through franchising. A three-year strategic plan was put in place, guided by four pillars—quality people, quality products, quality experiences, and quality business. Development was paused for 18 months while the team worked on various foundational initiatives. During this process, Roy Rogers appointed industry veterans, launched with DoorDash, introduced a new store design, worked with SiteZeus to map territories, enhanced its signature menu items, and created an online store for its fan base—known as Royalists—to purchase branded gear. So far, the results have been favorable. Roy Rogers experienced three years of negative transaction growth and slightly positive comps. In 2019, those numbers flattened and in the first period of this fiscal year (Roy Rogers has 13 periods in its fiscal calendar) the chain surpassed transaction benchmarks and saw the best comp sales period since Biser joined the company. The brand operates in Maryland, Virginia, West Virginia, New York, New Jersey, and Pennsylvania. Two franchised stores are in the pipeline for the brand’s largest franchisee, HMSHost. Another company-operated store is in its final lease negotiation stage. But the main goal in 2020 is to sign two to three multi-unit development agreements targeting Maryland, Virginia, Delaware, and Pennsylvania; areas further South and West will come later, as well. “I’d say the last 18 months was about gearing up for the future,” Biser says. “Now it’s transitioning to actually signing the people that will grow with us and building that pipeline up. This year is really all about recruiting. So then next year and beyond, the net development pipeline will start expanding.” Going forward, each new store will feature Roy Roger’s new store design. Biser explained that it was divided into two components—improving operations and enhancing the customer experience. When it came to operations, the team focused on optimizing the drive-thru and back-of-the-house layout to reduce steps and increase speed of service. On the consumer side, Roy Rogers hired an outside design firm to elevate brand relevance. As part of the process, the team redefined its consumer base and worked with the design firm to input modifications that appealed to those guests. Outside the building, Roy Rogers added stacked-stone towers to the main entrance and drive-thru. The brand also added a description of its food as a sub logo to raise awareness among new customers. There’s a new color scheme, lighting fixtures, digital menu boards, artwork, flooring, furniture, seating arrangements, and a panel describing the company’s history. Two test stores were remodeled last year. This year, three company-owned locations and one franchised unit will undergo the remodel. Biser anticipates the entire chain will be remodeled in the next five years. Biser attributes DoorDash as being a driver of growth, as well. It started with a five-store test in March 2019 to ensure operational efficiency. In June 2019, it expanded to 21 stores; off-premises grew up to 3 percent of sales. “When you only have 48 locations, unless you’re in our real core area, you have to drive a good amount to get to one of our stores, past a lot of competitors,” Biser says. “So DoorDash was a way for us to increase accessibility. … There’s a lot of debate around how of much that is incremental. We believe a good amount of it is. I don’t think in the industry as a whole that the number of occasions of consumers shopping at [quick-service restaurants] through any channel is necessarily growing at that pace, but I think for us, it was a way for us to increase market share. So I do believe it’s incremental for us.” Source: QSR.

Papa John’s Sees Gains in Comparable Store Sales Growth

Executives of Papa John’s International, Inc. in fiscal 2020 expect strong earnings per share companywide and continued improvement in North American comparable store sales growth, but in late February the coronavirus appeared to have affected the company’s stock price negatively. The coronavirus has affected 210 restaurants in China, which has the company anticipating a negative impact of 50 to 100 basis points, said Robert M. Lynch, president and chief executive officer, in a Feb. 26 earnings call to discuss fiscal-year financial results. CNBC reported Papa John’s temporarily closed 50 franchised stores in China because of the coronavirus. The company’s stock price on the Nasdaq closed at $61.51 per share on Feb. 26, which compared with a close of $67.35 on Feb. 25. The coronavirus outbreak comes as Papa John’s is showing continued improvement in sales and earnings following a turbulent 2018. That year founder John Schnattner resigned after admitting to using a racial slur in a conference call. Papa John’s in the fiscal year ended Dec. 29, 2019, sustained a loss attributable to common shareholders of $7,633,000, which compared with net income of $2,474,000, or 8c per share on the common stock, in fiscal 2018. Preferred stock dividends and accretion accounted for a loss of $12,499,000 in fiscal 2019. Total revenue in fiscal 2019 declined 2.6% to $1,619,248,000 from $1,662,871,000. In the fourth quarter, the loss attributable to common shareholders was $5,612,000, which compared with a loss of $12,868,000 in the fourth quarter of the previous year. Fourth-quarter total revenue increased 5% to $417,514,000 from $397,566,000. In North America, fourth-quarter comparable store sales increased 3.5%, which compared with a decline of 8.1% in the previous year’s fourth quarter. Papa John’s in 2020 expects e.p.s. of 60c to 90c and adjusted e.p.s of $1.35 to $1.55, which would compare with adjusted e.p.s. of $1.17 in fiscal year 2019. In North America, comparable store sales are expected to increase in the range of 2.5% to 5% in 2020. “The midpoint of this range would represent our best performance in North America since 2015,” Mr. Lynch said in the Feb. 26 earnings call. “We expect international comp sales to grow between 1.5% and 4%, as we see strong growth globally, somewhat mitigated by the impacts of coronavirus in China.” In North America, comparable store sales dropped 2.2% for the year, which was still an improvement from a decline of 7.3% in fiscal 2018. Internationally, comparable store sales increased 1.1% for the fiscal year, which compared with a decline of 1.6% in the previous fiscal year. Mr. Lynch said the pizza chain’s new Garlic Parmesan Crust performed well in the fourth quarter. “We fundamentally believe that increasing awareness of our product quality with our dough as the star of the show is the key to our success,” he said. “Many of our customers and prospective customers still don’t know that our original dough is always fresh, never frozen, made with six simple ingredients, and that it contains no artificial colors or flavors. People have never cared more about what goes into their food, and with our product, we have a right to win now more than ever.” Papadias Italian flatbread-style sandwiches are also new additions to the menu. “We are focused on delivering innovation that does not negatively impact our operations, and the way we’re doing that is we’re developing these innovations with core ingredients,” Mr. Lynch said. “Papadias doesn’t use one new ingredient. So our supply chain doesn’t change. How we hold things on the line doesn’t change.” Papa John’s has a target goal of launching a new item about every two months in 2020, he said. – Source: Food Business News.

Red Robin Puts 3 – Year Timetable on Addition of Donatos Pizza

Red Robin Gourmet Burgers CEO Paul Murphy cracked open the casual chain’s playbook Tuesday to reveal the next steps in the burger concept’s turnaround plan, including the rollout of Donatos-brand pizza to its 550 units within three years. The introduction will cost the company and its franchisees about $91 million all told, or roughly $165,000 per store, according to CFO Lynn Schweinfurth. The addition of Donatos pies, currently in about 25 units, has boosted both delivery and dine-in business, the executives said. They said the pies have become a popular shared appetizer as well. Other next steps include a rationalization of Red Robin’s burger-heavy menu. Murphy said a streamlining of the bill of fare should bolster food quality while cutting ticket times and thereby boosting throughput, a key problem for the chain last year. During the fourth quarter, transactions dropped 3.4%. The chain eked out a 1.3% rise in same-store sales through a 4.7% increase in the average tab per customer, with 1.8% coming from a decrease in discounting. Price cutting will not be a major strategic pillar of the updated comeback plan, Murphy indicated. He also mentioned the need to keep Red Robin’s marketing aligned with what customers indicated are its key attractions. Previously, the brand had touted bargain prices and special deals. “Yet in research, guests told us it was moments of connection that activated their use of Red Robin, not just price,” said Murphy, who joined the chain as CEO in October. “When we corrected this messaging misalignment, Red Robin scored as one of the top two brands for search engagement volume across all casual dining.” He explained that the chain conducted extensive research during Q4 about the brand’s perception. According to Murphy, the data showed that consumers valued “the flavor of Americana” provided by Red Robin’s burger-centric menu; the family-friendly and “playful” atmosphere of the stores; the ability to share items such as fries, offered in unlimited supplies, and, in test markets, the Donatos pizzas; and service that provides “the gift of time” by adjusting to how long guests want their stays to last. “Importantly, these are all actionable items which we are emphasizing to our general managers and field leadership,” Murphy said, without revealing many particulars. He was similarly mum on the specifics of what he said would be a new service model adapted by the brand this year. He did divulge that a key component will be a shift to tablets for servers. A new Red Robin prototype is currently under development, with a planned unveiling in 2021, Murphy said. The initiative that drew plentiful questions from financial analysts was the partnership with Donatos, a Midwestern cult favorite known for pizzas whose topping extends to the very edge of the crust. The Columbus, Ohio-based brand has about 160 brand-name pizzerias in operation within 10 states. Officials of that chain have described the arrangement with Red Robin as a way of expanding the brand’s market scope without an investment in brick-and-mortar—in essence, turning Red Robin units into ghost kitchens for the pizza specialist. Murphy revealed last month that the current 25-unit test of the partnership would be expanded to 100 stores this year. Tuesday marked the first time the chain indicated its plans to go systemwide with the co-branding. The initial test units saw a 3.5% increase in transactions, he noted. Schweinfurth described the gains as “highly incremental.” The test began last summer. The arrangement is a multiyear licensing agreement that Schweinfurth likened to a conventional franchise deal. Overall, Red Robin narrowed its losses in Q4 to $7.7 million, compared with a net deficit of $10.6 million in the year-ago quarter. Revenues for the quarter totaled $302.9 million, a 1.2% decline. – Source: Restaurant Business.

How are Restaurants Keeping up with Sustainability Trends?

From the addition of plant-based menu options to local sourcing and sustainable takeout packaging, restaurants have been tackling sustainability issues with gusto — and the industry as a whole is taking its role as steward of sustainability seriously. “Faced with constantly evolving challenges including production methods, sourcing and waste management, chefs are striving to improve their practices,” Gwendal Poullennec, international director of the Michelin Guide, told the Drinks Business. As such, Michelin has added a new green clover symbol to its guides to shine a light on the sustainability efforts and initiatives being undertaken by restaurants. “Often, these initiatives combine the best of the knowledge of our predecessors with the creativity and innovation of chefs who are never short of ideas,” Poullennec said. “The ambition of our approach is to amplify the scope of the good and ingenious practices of chefs by putting them in the spotlight.” While chefs are indeed taking notice of these efforts, customers are also keeping an eye on what restaurants are doing to promote sustainable operations. According to a recent Barclays report, “Sustainability is increasingly more relevant as consumers, especially Millennials and Gen Z, have become more aware of the damage that food production has caused to the planet.”

Here are a few examples of these sustainability practices in action.

Taking care of waste. Perhaps the most important step restaurants can take when keeping an eye toward sustainability is having a plan for food waste. The practice ranked high in this year’s What’s Hot 2020 from the National Restaurant Association, and the group offered several steps restaurants can take to get closer to zero waste.According to the association, measuring waste, organizing walk-in coolers, considering reducing portion sizes and utilizing leftover parts and pieces of other food items (think vegetable trimmings and day-old bread) can all help restaurants on their path to zero waste.

Plant-based menu options. While putting plant-based foods on the menu is nothing new, restaurants are adding the items in spades in hopes of gaining more customers that put a premium on sustainability. Starbucks for example, plans to roll out more plant-based menu items as part of its far-reaching commitment “to be a resource-positive company, aspiring to give more than it takes from the planet.” Similarly, a bevy of quickserve chains, including Denny’s, McDonald’s and Qdoba, among many others, have recently rolled out plant-based items with the help of companies like Beyond Meat and Impossible Foods.

Sustainable packaging. Eco-friendly packaging topped the National Restaurant Association’s 2020 forecast. According to the report, increased off-premise meal consumption and local regulations are guiding restaurants toward packing takeout food using more sustainable packaging.

Companies like Bio-Plus Earth Kraft, Be Green Packaging and World Centric are touting greener packaging opyions, including a fiber-based coffee cup lid, a 100% recycled cardboard paper takeout box and even multi-compartment, plant-based Bento boxes.

Hyper-local sourcing. Sourcing ingredients from local vendors is about as sustainable as it gets. The practice not only piques the interest of customers, but it also helps support local artisans and farmers while also reducing waste. Butcher Barr in North Carolina, which started as a family farm-turned-butcher shop, now operates two hybrid butcher shop and restaurant concepts and utilizes the whole animal in order to maximize yield and value, owner Casey McKissick told Eater. “The business model has been an exercise in stubbornness in trying to figure out how to create a sustainable business centered around whole-animal butchery and utilization,” McKissick said. “By taking responsibility for the ‘whole beast,’ we are preserving the craft of butchery and helping farmers continue to farm.” – Source: SmartBrief

Reset the Table Initiative Aims to Advance Gender Equality in the Foodservice Industry

For many of the 102 million people who tuned in to the Super Bowl this past weekend, the game probably didn’t seem much different than those in years past. However, anyone who attended the game and marked the occasion with a meal at the stadium was part of a moment that made Super Bowl history —  for the first time ever, a woman was head chef of the big game. Dayannay De La Cruz oversaw the menus for the 167 suites, 25 concession stands and seven restaurants in Miami’s Hard Rock Stadium. Leading a staff of more than 2,500 to present her Miami-inspired menus gave De La Cruz the kind of opportunity and exposure that is often hard to come by for women in foodservice. About one in five professional chefs are women, but representation of women chefs in the media is disproportionately lower. Far too often, women in foodservice are passed over for development opportunities and promotions in favor of their male counterparts, and they get paid 28.3% less, according to a 2016 study from Glassdoor. Fortunately, the past few years have given rise to a number of programs and initiatives aimed at leveling the playing field. Grubhub partnered with Women Chefs & Restaurateurs to launch RestaurantHer,com in 2018, which features a national database of eateries owned or run by women. That same year, James Beard Award-winning chef Edward Lee started the LEE Initiative which connects novice women chefs with established professionals for training and support. Two years prior, in 2016, advertising agency The Food Group launched Reset the Table as part of the Common Ground initiative, which includes the agency’s parent company, WPP. The project has continued to grow since then, debuting a refreshed website and an email newsletter in 2020. “As a communications agency, we believe our strongest contribution is our voice,” said Pam Bevilacque, SVP of client services and strategy at The Food Group. “We created this inclusive destination as a platform to provide women in our industry equal access to, and opportunities for, media exposure. Fueled with original and curated content, the platform brings together stories that are insightful and, we hope, inspiring. We highlight equality issues facing the foodservice industry and share ways to overcome them through profiles and peer experiences, as well as expert advice.” Gender inequality in the foodservice industry stems from many causes — from lack of advancement due to financing, leadership and networking opportunities, to healthcare and paid parental leave. Women are twice as likely as men to sacrifice their career for family, a survey conducted by Reset the Table and Datassential found. More than three-quarters (77%) of survey participants said they believe the choices women have to make to balance work and family are a main reason why women earn less overall. To help combat the challenges women face in the workplace and foster growth, Reset the Table compiles resources such as job listings, events and information on the National Restaurant Association’s ServSafe Workplace program and the Family Medical Leave Act. A series of interviews highlight women in foodservice, such as chef Dominique Crenn and Jen Pelka, owner of the all-women led and funded champagne bar, The Riddler. The industry spotlight series takes a wider focus than just chefs and restaurateurs to share insights from women in fields including food media and tech. “We also wanted to feature women in non-traditional foodservice roles to show that not every foodservice job puts you behind the line or on the restaurant floor. There are many very successful women in our industry who aren’t in traditional chef roles,” Bevilacque said. “We want to share those successes and hopefully inspire new paths our audience may not have been aware of before.” – Source: SmartBrief.

Burger King Debuts a French Fry Fandwich and Wendy’s isn’t Impressed

Take thee meatless Whopper. It turned heads and left taste buds curious. Now Burger King has introduced the Chip Butty, a patty-less sandwich with french fries, mayo and ketchup wedged in between two buns. The inspiration behind the new sandwich came from a happy “culinary accident” with one of the chain’s chefs, according to a message Burger King New Zealand posted to its Facebook page earlier this month. With that accident, in came the idea for the Chip Butty and Chip Butty with bacon. It’s only available to New Zealand customers right now for $2 ($1.27 USD), and it’s unclear if it will make its way to other markets in the future. While this concept is new to Burger King, the patty-less sandwich isn’t a new one. Chip Buttys have been around for years and are commonly found at fish and chip shops across the United Kingdom and Ireland. Ingredients include mayonnaise, ketchup, cheese, hot sauce and malt vinegar, depending on your preference. The good people of social media ate up Burger King’s concept, flooding Twitter with opinions and comments. Some skeptical, others intrigued. But perhaps the most notable reaction came from none other than one of Burger King’s rivals. Wendy’s wasted little time throwing shade, tweeting, “When literally anything would be better on a bun than their beef.” And the insults didn’t stop there. As more people replied to the Twitter thread, Wendy’s popped back in the conversation to deliver some more jabs. Burger King hasn’t responded yet to all the commentary.

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