Brewer will be the next CEO at Walgreens, making her the only Black woman currently running a Fortune 500 company . . . .

Starbucks Chief Operating Officer Rosalind Brewer is Leaving the Company in February

Starbucks announced Tuesday the departure of its chief operating officer, Rosalind Brewer, at the end of February. Brewer will be taking up the helm as CEO of Walgreens, a role that will make her the only Black female chief executive of a Fortune 500 company. “Starbucks chief operating role responsibilities are being distributed to other members of the existing leadership team,”  Starbucks said in the company’s Q1 earnings released on Tuesday. The announcement of Brewer’s departure comes on the heels of Starbucks chief financial officer and executive vice president Patrick Grismer announcing his retirement earlier this month, effective Feb. 1. Grismer will be succeeded by senior vice president of finance, Americas, Rachel Ruggeri. “We are very excited for her and grateful for her many contributions over the years,” Starbucks CEO Kevin Johnson said during Tuesday’s earnings call. Starbucks’ financial results from the first quarter ended Dec. 27, 2020, saw a 5% drop in global same-store sales, driven by a significant decrease in comparable transactions. The company opened 278 net new stores in the first quarter of the year, ending the quarter with 32,938 stores globally. – Source: NRN.

Employees will get two hours of pay for each dose . . . .

Darden Will Pay Employees to Get Vaccinated

Olive Garden and LongHorn Steakhouse parent Darden Restaurants said Tuesday that hourly employees at company-run stores will be paid to receive the COVID-19 vaccine, according to the Orlando Sentinel. CEO Gene Lee said in a letter Tuesday that employees will receive two hours of pay for each dose, the outlet reported. The rate will be based on the workers’ earnings, including tips, in the past 13 weeks. The max rate is $20 per hour. Darden also owns Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Yard House, Bahama Breeze, and Eddie V’s. The company operated a combined 1,818 locations as of November 29. A Darden spokesman told the newspaper that the company is incentivizing because it didn’t want workers to use paid sick leave. Darden rolled out the sick leave program last March around the time the pandemic first started. Workers gain one hour of paid sick leave for every 30 hours worked. The rate is based on the employee’s 13-week average. “We recognize getting vaccinated is a personal decision that you alone can make,” Lee said in the letter. “While we will not require hourly team members to be vaccinated as a condition of employment, we strongly encourage you to consider getting vaccinated.” To receive the pay, employees will have to provide proof of vaccination to their managers. It’s expected that most of the vaccinations will occur outside of shifts. Lee noted in the letter that the company will provide scheduling flexibility for restaurant managers to get vaccinated, as well.  It’s unclear when the vaccine will become available for restaurant employees. As of Monday morning, 22.7 million doses of vaccine have been administered and 41.4 million have been distributed. Restaurant workers are in Phase 1c, which comes after frontline workers, teachers, grocery store workers, first responders, and people over 75 years old. The CDC estimated that more than 50 million are in Phase 1a and 1b. President Joe Biden has promised 100 million vaccinations in 100 days, and said the rate could reach 1.5 million doses per day. Biden believes the country can reach herd immunity by the summer. Darden is the first major restaurant company to incentivize workers to get vaccinated. Chipotle and Yum! Brands, owner of Pizza Hut, Taco Bell, and KFC, told CNBC they won’t mandate vaccinations. The outlet also reported that Starbucks, which is helping with the vaccine rollout in Washington State, has not made a decision on mandating vaccines for employees and customers. Domino’s said it has a team studying the issue. Other large brands like McDonald’s, Papa John’s, and Burger King parent Restaurant Business International haven’t provided a public stance. – Source: fsr.

In a bipartisan effort, a budget amendment meant to directly boost the restaurant industry was passed 90-10 in the Senate . . . .

The Senate Overwhelmingly Passed Restaurant Relief Budget Resolution Amendment.

The U.S. Senate overwhelmingly passed an amendment to the budget Thursday calling for direct relief to the restaurant industry in a 90-10 vote. The Restaurant Rescue Plan which was initially proposed in a bipartisan effort by Sen. Roger Wicker (R-Miss.) and Sen. Krysten Sinema (D-Ariz.), was based on the original RESTAURANTS Act that was put forth in June. “The Senate made it clear today: it’s time to save restaurants and bars,” Erika Polmar, executive director of the Independent Restaurant Coalition. “There is undeniable bipartisan support across the country for a dedicated restaurant relief fund. The Senate knows that the only way we can fully recover our economy is to ensure neighborhood restaurants and bars can survive and continue employing over 11 million people.” Republican Senators have added hundreds of other amendments to the proposed budget resolution put forth by Democrats earlier this week and are planning a “vote-a-rama” on the amendments, including an amendment with bipartisan support calling to lower the income threshold for receiving $1,400 stimulus checks from $75,000 to $50,000. Senate Minority Leader Mitch McConnell cited multiple issues with the budget resolution on the Senate floor Thursday afternoon, including the termination of the Keystone pipeline, and the “job-killing, one-size-fits-all minimum wage hike.” The budget resolution was filed jointly Tuesday by Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi and is meant to provide urgently needed funding for President Biden’s $1.9 trillion American Rescue Plan, which includes “a dedicated grant relief program for restaurants” totaling $25 billion. Senate Majority Leader Schumer’s office confirmed with both the National Restaurant Association and other media outlets that they intend to include $25 billion for the restaurant recovery fund when it is introduced in the reconciliation bill, though that has not officially been announced yet.  The Senate is not expected to finish voting on the budget and its added amendments until late Thursday into early Friday.  – Source: NRN.

The chain, seeing its margins squeezed by delivery, is trying to find the sweet spot between profitability and not driving customers away . . . .

Chipotle has Raised Prices on its Delivery Menu by 13%

Chipotle Mexican Grill has raised menu prices for delivery an average of 13%, chain executives told analysts during a Q4 earnings call this week. The move is in response to the runaway success of the chain’s delivery channel, which has eaten into its margins in recent months. Chipotle has seen “modest resistance thus far” from customers to the 13% price bump, CFO Jack Hartung said. CEO Brian Niccol said Chipotle is “testing a lot of different pricing levers.” “It’s an ongoing process,” Niccol said. “It’s a fluid process. And we’re not done working it.” Delivery currently makes up 25% of Chipotle’s business, a channel that has seen tremendous growth during the pandemic but one that comes at a high cost to the bottom line. So, Chipotle is looking at a number of ways to either make delivery more profitable or to drive customers to other ordering methods. The Newport Beach, Calif.-based chain is quickly expanding its order-ahead Chipotlanes, with plans to open them at more than 70% of new locations built this year. Of the 161 new stores opened last year, 100 included Chipotlanes. Stores with pickup lanes generate 10% more revenue than those without. Chipotle is also testing a curbside pick-up program at 29 restaurants in California. The 13% price increase for delivery essentially evens out the cost of delivery at the restaurant level, Hartung explained. The average cost of delivery, per restaurant, is $80,000 a year and 13% of a quarter of the chain’s sales also averages out to about $80,000, he said. But the margins become diluted as costs increase. “Now, we think there are things that we can do, other levers we can pull, other efficiencies we can file,” Hartung said. “We think, over time, we can offset that. But that’s just a math challenge that we’re dealing with.” For Q4, Chipotle saw restaurant-level margins of 19.5%, an increase of 30 basis points over the previous year. For the whole of 2020, Chipotle’s margins were 17.4%, a decrease of 310 basis points. The chain’s goal is to have margins at or above 25%, Niccol said. “I feel good about by the second half of the year, that we should be closing the gap,” Hartung said. “If not all the way, we’ll be knocking on the door on what the margin algorithm should be.” – Source: Restaurant Business.

A customer walks out of a KFC restaurant in Shanghai, China, on October 9, 2015. Yum Brands Inc., the owner of KFC and Pizza Hut, releases its first-quarter earnings results after the bell . . . .

Online Push Helps KFC Parent Yum Beat Revenue, Profit Estimates

Yum Brands Inc. beat quarterly estimates for revenue and profit on Thursday as online demand for tacos, pizzas, and fried chicken from Americans surged, helping cushion weak sales in certain markets due to renewed pandemic-related curbs. The COVID-19 pandemic has accelerated online orders and most U.S. fast-food chains, including Yum and its rival McDonald’s which invested early on in their e-commerce businesses, are reaping the benefits. “Digital has been such an important part of our resilience during the pandemic,” Chief Financial Officer Christopher Turner said on an earnings call. Digital sales for the KFC owner jumped 45% to a record high of $17 billion in 2020. KFC and Pizza Hut divisions posted same-store sales growth of 8% each in the United States, partly offsetting declines of at least 4% each in their international markets. Turner said Yum would invest more in its digital unit this year by controlling expenses in other areas, while Chief Executive Officer David Gibbs said dine-in sales would be a lesser part of its overall business. The company said renewed restrictions in Europe has caused a slowdown in international business from the fourth quarter, while its U.S. same-store sales strength has waned after jumping in the mid-teens in the first few weeks.  um’s fourth-quarter revenue rose about 3% to $1.74 billion, beating the Refinitiv IBES estimate of $1.72 billion. Excluding items, it earned $1.15 per share, compared with expectations of $1.01. Shares of Yum, which had risen about 8% last year, were trading flat in the morning session.  – Source: Reuters.

The bill follows Senate vote on a joint budget resolution to clear path for a larger COVID stimulus package . . . .

Bipartisan $120 Billion RESTAURANTS Act to Provide Long-Term Relief for Restaurants is Re-Introduced

Hours after the Senate voted overwhelmingly to pass an amendment to the proposed budget resolution to establish a dedicated restaurant relief fund, the $120 billion RESTAURANTS Act of 2021 was reintroduced to Congress Friday as a bipartisan, bicameral effort from Sens. Roger Wicker (R-Miss.) and Kyrsten Sinema (D-Ariz.), and Reps. Earl Blumenauer (D-Ore.) and Brian Fitzpatrick (R-Pa.). The re-upped legislation is modeled after the bill introduced last Congressional session (and passed by the House in October) and would create a $120 billion fund to provide relief for foodservice businesses with less than 20 units. Business operators would be able to apply for grants up to $10 million to cover expenses incurred during the pandemic, retroactive to Feb. 15, 2020, and would end eight months after being passed into law, according to the Independent Restaurant Coalition. “Ensuring the 11 million people employed by restaurants and bars can continue to earn a living is vital to rebuilding our economy after this pandemic,” Erika Polmar, executive director of the Independent Restaurant Coalition said in a statement. “The RESTAURANTS Act is a crucial step to putting millions of Americans back to work and stimulating the vast network of local businesses powered by restaurants and bars.” The reintroduced bill includes some changes from the last version and unifies previous bills from the Senate and House under a common language. One of the changes includes clarification of who is eligible for relief, which now includes franchise owners, the National Restaurant Association clarified.  “The unified RESTAURANTS Act of 2021 is a light at the end of a long, dark winter for an independent, chain, and franchise restaurants that have been most impacted by the pandemic,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said in a statement. “While many other industries have started to recover, the restaurant industry finished last year in a double-dip recession, and with 2.5 million fewer jobs. These grants will put even the hardest-hit restaurants on the path to economic survival.” The reintroduced RESTAURANTS Act is separate from the restaurant relief fund that was introduced in the budget resolution amendment proposed by senators Wicker and Sinema and passed by the Senate on Thursday. Although the language of that amendment did not propose a specific number, Senate Majority Leader Chuck Schumer’s office confirmed with both the National Restaurant Association and other media outlets that they intend to include $25 billion for the restaurant recovery fund when it is introduced in the reconciliation bill, though that has not officially been announced yet. Source: NRN.

Chickpeas, buckwheat, almonds, and mung bean are among the key ingredients in better-for-you bakery mixes by TruEats Modern Baking Co., a new venture from father-and-son duo Surinder and Daven Kumar . . . .

Father-and-Son Duo Launches Modern Baking Company

The startup’s initial lineup features a pancake and waffle mix, a brownie mix, and a chocolate muffin and cake mix, along with a zero-calorie sweetener made from monk fruit and corn-based erythritol. The plant-based, diabetic-friendly products are gluten-free and contain no added sugars. Launched in January, TruEats is the culmination of a multi-generational journey to discover better health through simple foods. “My dad grew up in a small village in India where there were no doctors,” said Surinder Kumar, co-founder, and chief innovation officer at TruEats. “When he was 13, he went to visit a doctor and was diagnosed with diabetes. They told him he’d be lucky to make it to 30.”  Mr. Kumar’s father looked to the nutritional teachings of Ayurveda, an ancient medical system, to manage his condition. He followed a diet that included fresh vegetables and legumes like chickpeas, mung beans, and black lentils. The ancient wisdom worked, and he went on to live a healthy life to the age of 75. Following in his father’s footsteps, Mr. Kumar devoted his life to learning about nutrition. He studied at the National Dairy Research Institute in India and earned a Ph.D. in food science from The Ohio State University. “There are a lot of ancient writings about different pulses and grains, what they do and what kind of benefits they have,” he said. “When I got into science, I started asking, ‘What is the science behind this?’” That curiosity sparked a decades-long career developing products for major CPG companies. Mr. Kumar spent more than 40 years in senior-level R&D positions at companies including PepsiCo, Unilever, and Wrigley, where he helped launch hundreds of products with sales of several billion dollars. “I had a lot of fun working for all these companies, but there was always the question of who was really making the final decision,” he said. “It was years developing products but not knowing whether I’d be able to convert that into something that’s useful for consumers.” After retiring as chief innovation officer for Wrigley in 2008, Mr. Kumar set out to build his own company. His goal was to combine the ancient wisdom that inspired his father with modern science to create gluten-free, diabetic-friendly products without compromising on taste. He enlisted the help of his son, Daven, who brought experience as a food marketer for PepsiCo, Kellogg Co., and Mondelez. The two initially focused on plant-based meat alternatives but changed direction in early 2020, when the coronavirus (COVID-19) pandemic hit the United States. “We started figuring out how the pandemic would impact consumer behavior,” said Daven Kumar, co-founder, and chief marketing officer at TruEats. “I knew people would be staying home and baking more.” Expanding beyond meat alternatives was always part of the plan, and his father had already laid the groundwork for bakery mixes. “We thought we’d get the plant-based proteins going and come around to other categories when the time is right,’” Daven Kumar said. “Then the right time came speeding up to us, and the pieces fell together pretty quickly.” The ability to make and execute quick decisions is one of the biggest benefits that comes with founding a startup, he said. The biggest challenge is adjusting to a smaller set of resources. “There’s only so much both of us can do,” Daven Kumar said. “Surinder has been at the c-suite level for the last 40 years of his career. Now he’s in the kitchen with his lab coat. He’s back to what he was doing 50 years ago and doing all the hard grunt work.” That work is starting to pay off. TruEats’ bakery mixes and zero-calorie sweeteners are available direct-to-consumer online. Potential expansion into Amazon is on the horizon, followed by brick-and-mortar retail down the line. The Kumars also are eyeing opportunities in hospitals and health care facilities that run programs for diabetics and people with other dietary restrictions. “If we can build credibility that TruEats delivers on its promise, that gives us a lot of runway going forward to expand the business in new channels, other food forms, and different flavors,” Daven Kumar said.  – Source: Food Business News.

Maximizing marketing, committing to the core menu, and doubling down on digital, delivery and drive-thru are the key pillars of McDonald’s growth strategy in the year ahead . . . .

McDonald’s Management Lays Out 2021 Strategic Priorities

Christopher J. Kempczinski, president and chief executive officer of McDonald’s Corp., laid out the fast-food company’s priorities during a Jan. 28 conference call. “Our significant marketing investment remains a true growth driver,” he said. “We’re improving creative effectiveness and leaning into social and digital to drive customer engagement. Teams remain focused on the right balance of sales activation with the brand building as we work to optimize marketing returns.” The core menu items represent roughly 70% of food sales across McDonald’s top markets, driving growth and profitability even during a challenging year, Mr. Kempczinski said. Last year, the company introduced a bakery line in the United States, and it plans to improve its chicken sandwich offerings globally, he said. “What’s important is that our approach to our menu is thoughtful and judicious,” he said. “We’ve seen significant benefits with our streamlined menus and reduced complexity. New items must earn their place on the menu.” McDonald’s investments in digital, delivery, and drive-thru were the “difference maker” during the pandemic and are central to the company’s efforts to create a faster, easier, and better customer experience, he said. Digital sales exceeded $10 billion, or nearly 20% of systemwide sales, in 2020 across the top six markets. “We’re moving aggressively to bring My McDonald’s with mobile ordering, payment, delivery, rewards, and fun promotions like digital calendars to our customers as soon as possible,” Mr. Kempczinski said. “We’re on track to have elements of My McDonald’s across our top six markets by the end of 2021, featuring loyalty programs in several of those markets, including a US loyalty launch later in 2021.” Over the past four years, McDonald’s has expanded the number of restaurants offering delivery to nearly 30,000, he added. To improve drive-thru service times, the company has invested in staffing, positioning, and order assembly. “While each pillar will further extend our leadership, what’s especially powerful is the exponential impact when all three pillars come together,” Mr. Kempczinski said. “Famous orders platform in the US is a prime example. In the fourth quarter, we featured favorite menu items of Latin music icon J Balvin and classic holiday characters, including Santa Claus and the Grinch. With exclusive deals on our app, customers rediscovered iconic core menu items like Big Macs and Egg McMuffins and tried new items like cinnamon rolls.” The past year was among the most difficult McDonald’s has seen, he said, referring to the pandemic, economic downturn and societal challenges that occurred. Results for the quarter and year reflected sales declines in international markets as a result of COVID-19 resurgences and government restrictions that were partly offset by a stronger operating performance in the US market due to higher-sales-driven restaurant margins. The company also recorded higher selling, general and administrative expenses, higher restaurant closing costs, and lower gains on sales of restaurant businesses. McDonald’s net income for the full year ended Dec. 31, 2020, totaled $4.73 billion, equal to $6.31 per share on the common stock, down 21% from $6.03 billion, or $7.88, the year before. Revenues for the year tumbled 10% to $19.21 billion from $21.36 billion the prior year. Fourth-quarter income was $1.38 billion, equal to $1.84 per share, declining 12% from $1.57 billion, or $2.08, in the prior-year quarter. Quarterly revenues slid 2% to $5.31 billion from $5.43 billion the year-ago period. Global comparable sales declined 7.7% for the year and 1.3% for the fourth quarter. “While there were challenges across markets, some of our larger markets achieved positive comp sales for the full year, including the US, Japan, and Australia, and that was on top of strong momentum coming into 2020,” Mr. Kempczinski said. Comparable sales in the US market increased 5.5% for the fourth quarter, driven by growth across all major dayparts, said Kevin M. Ozan, executive vice president, and chief financial officer. “Dinner continued to be our leading daypart with strong sales of core items as customers keep coming back for familiar favorites,” Mr. Ozan said. Value deals and the return of the McRib contributed to momentum, he added. In the US, sales comps continue to be strong and are expected to be up high single digits with continued growth across all dayparts and assisted by consumers receiving government stimulus checks,” Mr. Ozan said.  – Source: Food Business News.

In a bipartisan effort, a budget amendment meant to directly boost the restaurant industry was passed 90-10 in the Senate . . . .

The Senate Overwhelmingly Passed Restaurant Relief Budget Resolution Amendment

The U.S. Senate overwhelmingly passed an amendment to the budget Thursday calling for direct relief to the restaurant industry in a 90-10 vote. The Restaurant Rescue Plan which was initially proposed in a bipartisan effort by Sen. Roger Wicker (R-Miss.) and Sen. Krysten Sinema (D-Ariz.), was based on the original RESTAURANTS Act that was put forth in June. “The Senate made it clear today: it’s time to save restaurants and bars,” Erika Polmar, executive director of the Independent Restaurant Coalition. “There is undeniable bipartisan support across the country for a dedicated restaurant relief fund. The Senate knows that the only way we can fully recover our economy is to ensure neighborhood restaurants and bars can survive and continue employing over 11 million people.” Republican Senators have added hundreds of other amendments to the proposed budget resolution put forth by Democrats earlier this week and are planning a “vote-a-rama” on the amendments, including an amendment with bipartisan support calling to lower the income threshold for receiving $1,400 stimulus checks from $75,000 to $50,000. Senate Minority Leader Mitch McConnell cited multiple issues with the budget resolution on the Senate floor Thursday afternoon, including the termination of the Keystone pipeline, and the “job-killing, one-size-fits-all minimum wage hike.” The budget resolution was filed jointly Tuesday by Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi and is meant to provide urgently needed funding for President Biden’s $1.9 trillion American Rescue Plan, which includes “a dedicated grant relief program for restaurants” totaling $25 billion. Senate Majority Leader Schumer’s office confirmed with both the National Restaurant Association and other media outlets that they intend to include $25 billion for the restaurant recovery fund when it is introduced in the reconciliation bill, though that has not officially been announced yet. The Senate is not expected to finish voting on the budget and its added amendments until late Thursday into early Friday.  – Source: NRN.

To boost sales during the pandemic, the founders of Dog Haus flooded the delivery apps with virtual restaurants that operate out of existing franchise kitchens. They’ve been so valuable that they’re here to stay . . . .

 This Restaurant Just Launched 8 New Brands. Sales Boomed.

When Dog Haus launched in 2010, its concept made a lot of sense…for the year 2010. Its mission was to elevate stadium food into a culinary masterwork, and it did so by selling dogs and sausages decorated with ingredients such as bacon, pastrami, caramelized onions, and arugula. The three founders, Hagop Giragossian, Quasim Riaz, and André Vener, dubbed their concept “craft casual,” and they built fun, large, airy venues to serve customers. Dog Haus has grown to 50-plus locations since franchising. But in the decade since much has changed with how Americans eat. People increasingly order food through Grubhub or Uber Eats. Dog Haus responded by expanding its reach through ghost kitchens — delivery-only facilities with no seating, parking, or signs. Then, when the pandemic hit, foot traffic dropped even more — and the ghost kitchens presented an intriguing opportunity. If Dog Haus could sell food without a dine-in location, why did its founders have to stick to just selling Dog Haus–branded food? Couldn’t they sell, well, anything? In March, the three Dog Haus founders put that question to the test by announcing an ambitious roster of brands: It’s called The Absolute Brands, and it consists of seven new QSR concepts (five are currently open and two more are in the works) that have no physical stores and operate out of existing Dog Haus locations. (After all, Dog Haus kitchens suddenly had excess capacity.) If a customer orders from any of these brands — such as Freiburger, Bad-Ass Breakfast Burritos, or the plant-based concept Plant B — they most likely won’t even know the food is made in a Dog Haus kitchen (unless they happen to drive over to pick it up). The three founders recently sat down with Entrepreneur — virtually, of course — to explain how The Absolute Brands works.

It sounds exhausting to launch multiple restaurants during a pandemic. How were you able to do it so quickly?

Giragossian: We began testing The Absolute Brands back in January, before COVID. At first, we thought we’d just run them from the ghost kitchens, but when the pandemic happened, we thought they could be a lifeline for franchisees. The brands weren’t fully ready to launch at the time, but we thought that if the franchisees were down, we could figure it out as we go. And they jumped at the opportunity.

But how? Is it really that easy to run eight restaurants from one kitchen?

G: It’s been fairly seamless, actually. We started with just three concepts, and we’ve been rolling out the others since. These concepts require no vendors, no new kitchen equipment, and zero capital expenditure from franchisees. As far as products go, we only added two or three things — like a tortilla, for example, to wrap the burritos. We changed some of the packaging so we’re not sending out everything with Dog Haus branding, but aside from that, everything is consistent with what franchisees were already doing.

Instead of launching new restaurants, why not just add more items to your existing Dog Haus menu? Wouldn’t that be easier?

Riaz: People aren’t necessarily searching by the brand on the delivery service providers [DSPs]. They’re searching for what they want to eat.

Vener: For example, if you walk into a Dog Haus, you’ll see on the menu board that in addition to dogs and sausages, we have burgers, a chicken sandwich, and plant-based products. But if you’re craving a chicken sandwich and you go to a DSP, you might scroll over Dog Haus. You might type in “chicken sandwich,” and we won’t show up high on the queue. So we pulled out our chicken sandwich, Bad Mutha Clucka, and added some of the LTOs we’ve created — like chicken wings for March Madness and the Super Bowl. Now we have a brand called Bad Mutha Clucka, and when people search for “chicken,” it pops up first.

G: Plus, multiple brands allow our franchisees to be flexible. They can turn these virtual concepts on and off as needed to fill out day parts.

Wait — you can just turn off a restaurant?

R: That’s the beauty of this. If somebody wants to turn off Bad-Ass Breakfast Burritos during a high-volume time of the day when they need more grill space for burgers, they can do that.

V: And when a brand is turned off, it’s gone from the DSP platform. It doesn’t say “closed.” It just doesn’t show up in the search.

It’s notable that some of The Absolute Brands are in direct competition with each other. The obvious example is Bad-Ass Breakfast Burritos and Huevos Dias, which are both breakfast concepts. How concerned are you with the success of any of these brands on an individual level?

R: I’d rather have us compete with us than compete with somebody else. Effectively what we’ve done is allow our operators to run eight different restaurants within the same four walls. So they’ve got a leg up on the competition.

V: As long as we’re collecting dollars to fill up the total sales for the day, we don’t care if one brand is 25 percent and another is 10 percent. If there comes a point down the line where eight brands just aren’t working for some reason, we could either fold some of the items from one into another or cancel it and create an entirely new brand. We could close something overnight and launch something new the next day.

There’s a potential for confusion with multiple brands operating under one roof. Someone could order from Plant B, and when they type in the address, their GPS takes them to Dog Haus. Has that been an issue?

R: Sure, sometimes drivers are confused when they come in for pickup, but they learn. It’s important for us to have The Absolute Brands live in a virtual space. Dog Haus will always be our first priority, and we don’t want to have all the other brands’ signage on the windows or doors.

V: That confusion can also create some excitement. When our fans order from Bad-Ass Breakfast Burritos and pull into Dog Haus, they’re like, “Wait — are you guys doing burritos now?” Once we explain that it’s delivery only, they go off telling their friends about it.

I’m sure it’s hard to compare pre-and post-pandemic numbers, but what can you say about The Absolute Brands’ success?

V: At least 25 percent of our sales are coming from The Absolute Brands right now, and our same-store sales from Q3 are up double digits over 2019. And that’s despite most of our dining rooms being shut down.

G: I don’t think we’re embarrassed to say this, but one of our restaurants has been struggling since it opened two years ago. We didn’t know why. It has a great operator and a great location, in Chicago’s Lincoln Park. But at the end of 2019, the franchisee was like, “I don’t think I’m going to make it.” Then the pandemic hit, and he started serving The Absolute Brands. Since then, he has tripled his sales. So maybe Dog Haus wasn’t going to survive in Lincoln Park, but Bad Mutha Clucka and Bad-Ass Breakfast Burritos do really well.

V: The Lincoln Park location went from being in the bottom three stores to the top three. Now that franchisee is in talks to expand his territory.

Have you discussed what will happen if one of these brands turns out to be a huge hit? Would you turn it into its own franchise?

G: We’d love that problem. We’re either going to be able to peel off some of these concepts and do them on their own or just let them solve for the fact that not everything works in every location.  – Source: Entrepreneur.

SANITATION

COVID-19 and Meat and Poultry Processing

A team of Kansas State University researchers is using a $1 million grant from the US Department of Agriculture – and an additional grant from the State of Kansas – to study how to effectively control the spread of SARS-CoV-2, the virus that causes COVID-19, in the nation’s meat and poultry processing facilities. The study, “Translating SARS-CoV-2 Research Into Practical Solutions For The Meat And Poultry Processing Industry,” seeks to protect meat plant workers and their surrounding communities from the spread of COVID-19. It involves researchers from K-State’s College of Veterinary Medicine and College of Agriculture. As part of the study, $330,000 from the State of Kansas National Bio and Agro-Defense Facility Transition Fund will be used for research in K-State’s Biosecurity Research Institute, or BRI, at Pat Roberts Hall. The BRI is a high-containment research facility. A key objective of the project will be verifying the effectiveness of many of the approved cleaners and sanitizers for inactivating SARS-CoV-2 during plant processing and sanitation operations. “Nationally and internationally, many facilities that produce meat and poultry products have been temporarily closed because of COVID-19 outbreaks,” said A. Sally Davis, an assistant professor of experimental pathology in the College of Veterinary Medicine and project director of the K-State grant. “This has put a major strain on food production, limiting the amount of meat and poultry on grocery store shelves and disrupting food and feed supply chains across the globe.

Research is necessary to understand why SARS-CoV-2 is such a problem in meat and poultry processing environments and how we can mitigate the problem.” Ms. Davis said infections with SARS-CoV-2 are primarily thought to occur by exposure to infectious micro-droplets in the air and contaminated surfaces. “We are investigating the conditions within the meat and poultry processing environments, such as low temperatures, relative humidity, increased air movement, and workers being in close proximity to one another, to help identify areas and surfaces that are at high risk for contamination and spread of infectious SARS-CoV-2.” The team will evaluate potential sources of exposure and determine the amount and the longevity of infectious virus that is present during and after meat processing and packaging activities. The team seeks to identify, develop, validate and deliver practical cleaning and disinfection strategies, plus develop mathematical models to predict and reduce the risk of SARS-CoV-2 exposure in meat and poultry processing facilities. Joining Ms. Davis on the research team are food safety faculty from K-State’s Food Science Institute, including Randall Phebus, co-project director and professor of animal sciences and industry, and Jeanette Thurston, director of the Food Science Institute and co-investigator on the project. The project also will rely on input from an industry advisory board. “Our advisory board will be regularly updated on research progress,” Ms. Thurston said. “We will communicate with them in real-time to make sure we are on the right track with our research and recommendations, and ensure that our findings are rapidly deployed across the processing sector.”

The industry advisory board is composed of senior-level directors of food safety and plant operations at Hormel Foods, Smithfield Foods, National Beef Packing Company, Cargill Protein North America, JBS USA, Wayne Farms, Jennie-O Turkey Store, Tyson Fresh Meats, and Costco Wholesale. Bonnie Rush, dean of K-State’s College of Veterinary Medicine, said K-State, known as the “Silicon Valley of biodefense,” is the ideal place to conduct this vital research. “This is an advantageous collaboration between the College of Veterinary Medicine and College of Agriculture,” she said. “It combines our expertise in the study of viruses, our high-containment research facility in the BRI, and our national experts in food safety.” Ernie Minton, dean of the College of Agriculture and director of K-State Research and Extension, said COVID-19 has hit the agricultural industry and its workers hard. “We certainly felt the impact when COVID-19 hit our meat processing plants in Kansas and across the nation this spring,” Mr. Minton said. “In April, nearly 5,000 workers in U.S. processing plants became infected, causing plant closures, a backlog of animals waiting to go to market, higher feed costs, lower market prices, and a scarcity of meat and poultry in some areas. It’s a tremendous privilege to receive USDA support and work with a team of top academic and industry leaders to find solutions to help us avoid this type of problem in the future.”

Collaborating with the K-State team are co-project directors from the University of Georgia poultry science department, Harsha Thippareddi, and Manpreet Singh, who will provide extensive poultry experience and industry connections and lead the grant’s industry outreach efforts. Valentina Trinetta and Sara Gragg, food safety faculty from the Food Science Institute, are co-project directors. Co-investigator Anke Richter, a public health-focused operation research specialist at the Naval Postgraduate School, will lead the risk assessment driven by mathematical modeling. Co-investigators Yunjeong Kim and Erin Schirtzinger in the K-State College of Veterinary Medicine and the Food Science Institute’s Daniel Vega round out the project team.

Food Safety Top of Mind for the US, other Consumers

According to a new study from the Beijing-based Mars Global Food Safety Center that surveyed more than 1,750 people in the US, UK, and China, more than half of respondents (52%) feel that food safety is a top-three global issue – and 77% think it’s a top 10 global issue. Food insecurity has only been exacerbated by COVID-19, and 73% of respondents believe the novel coronavirus will impact the viability of the global supply chain and 71% believe it will have an impact on global access to food.  These consumers think about food safety and security as much as climate change (39%) and pollution (38%). “New food safety threats, like those posed by COVID-19, are constantly emerging through a combination of factors including global warming, increased globalization of trade, as well as changes in agriculture practices and food production,” said David Crean, Mars’ chief science officer and vice president of corporate R&D. “We believe everyone has a right to safe food and it’s also our responsibility to share our knowledge — 82% of survey respondents expressed their desire to learn more — expertise and tools to enable safe food for all.”  — Source: Food Safety Monitor.

National Restaurant Association and NRAEF Announce Board of Directors

The National Restaurant Association and the National Restaurant Association Educational Foundation (NRAEF) announced their 2021 board officers and directors. Brian Casey, president of Oak Hill Tavern and the Company Picnic Company, will serve as chair of the National Restaurant Association Board of Directors, and Susan Adzick, president of McLane Foodservice, Inc., will serve as chair of the National Restaurant Association Educational Foundation Board of Trustees.

“The restaurant and foodservice industry was hardest-hit by the pandemic. Brian’s experience as an independent restaurant operator and Susan’s experience leading a foodservice supply company brings together key perspectives from across the industry as we look forward towards recovery,” says Tom Bené, President and CEO of the National Restaurant Association and CEO of the Educational Foundation.

Vice-Chair Lance Trenary, president and CEO of Golden Corral Corporation, and Treasurer Scott Redler, co-founder, and chief operating officer of Freddy’s Frozen Custard and Steakburgers, will lead the Association’s board. Other Foundation officers include Vice Chair Kent Walrack, executive vice president, chief strategy officer of Lyons Magnus, and Treasurer Emily Williams Knight, Ed.D., president and CEO of the Texas Restaurant Association and the Texas Restaurant Association Education Foundation. Each of the officers will serve a one-year term. The following is the list of 2021 board officers for the National Restaurant Association and the Educational Foundation:

National Restaurant Association

Chair: Brian E. Casey is president and owner of North Kingstown, R.I.-based Oak Hill Tavern and the Company Picnic Company. A 35-year hospitality industry veteran and lifelong resident of Rhode Island, he has deep roots in his local community. He was chairman of the Rhode Island Hospitality Association, and in 2013 named their Restaurateur of the Year and Caterer of the Year in 2008. A graduate of Rhode Island College, he earned a Bachelor of Science in political science. Vice-Chair: Lance Trenary is president and CEO of Golden Corral Corporation, where he has held virtually every leadership role during his 35-year career progression. Trenary also serves as a trustee for the NRAEF and as a member of the Women’s Foodservice Forum CEO Advisory Council. Additionally, he serves as board chair of Camp Corral, a nonprofit summer camp for children of fallen or disabled military service members. Trenary attended Mississippi State University; Harvard Business School, where he completed the Advanced Management Program; and the University of North Carolina, where he completed the Executive Management Education Program. Treasurer: Scott Redler is co-founder and COO of Freddy’s Frozen Custard & Steakburgers. Redler’s knowledge of restaurant ownership and operations has made him a sought-out professional in the industry. He’s a member of the board of the Kansas State University Hospitality Management program and the Butler County Community College (BCCC) Hospitality Board, where he and his wife Betsy also started a scholarship fund for hospitality students. Redler’s commitment to the industry has been recognized with the IFMA Silver Plate Award, the Fran Jabara Entrepreneurship Hall of Fame, and Kansas Restauranteur of the Year, among others.

The National Restaurant Association also added several new members to the board. The newly elected directors include:

Germán González – CEO, Tzuco Chicago

Simon Kim – Proprietor, Cote Korean Steakhouse

Bob Luz – President & CEO, Massachusetts Restaurant Association National Restaurant Association

Educational Foundation

Chair: Susan Adzick is president of McLane Foodservice, Inc. She is active in the foodservice industry, she serves as a National Restaurant Association board member, on the Restaurant Leadership Conference Advisory Council, and served on the Women’s Foodservice Forum (WFF) Board of Directors as chair in 2018.  She started her foodservice career with PepsiCo Food Systems. She received her undergraduate and postgraduate degrees from Vanderbilt University in Nashville. Vice-Chair: Kent Walrack is a 36-year veteran of the food service business and currently serves as executive vice president and chief strategy officer of Lyons Magnus. Lyons Magnus is a privately held company based in Fresno, Calif., whose core business is manufacturing and marketing fruit and flavor-related products to the foodservice, dairy, and contract packing industries. He also served on the executive board as past chair of the International Foodservice Manufacturers Association (IFMA). He graduated from Boise State University with a Bachelor of Science degree in business administration with an emphasis in marketing. Treasurer: Emily Williams Knight, Ed.D. is president and CEO of the Texas Restaurant Association and the Texas Restaurant Association Education Foundation. Knight’s career includes serving as President of Kendall College, a leader in hospitality and culinary arts education. She has led student recruitment for two of the top five hospitality schools in the world and has partnered with private equity firms, associations, and the U.S. government to build veteran and opportunity youth training and certification programs. Knight holds a Doctorate in Higher Education Leadership from Walden University; a Master of Science in Management from Troy University in Alabama; a B.S. in Hospitality Administration from Boston University; and an A.S. in Hotel and Restaurant Administration from Newbury College.

In addition to naming its new board officers, the Educational Foundation also introduced its new board members. They include:

Dr. Walter Bumphus – President & CEO, American Association of Community Colleges

David Dittenber – CEO, Downtown Restaurant Investments

Carrie Leishman – President & CEO, Delaware Restaurant Association
Source: fsr.

The chain rolled out alcohol, dinner options, and a new kid’s menu. And has more in the works . . . .

Cracker Barrel’s Revitalized Menu Marries Tradition and Innovation

Cracker Barrel’s culture is rooted in heritage, but that doesn’t mean tradition can’t be reimagined. The commitment to innovation was on full display in 2020 as the 663-unit brand released a revamped dinner menu, diversified its family meal deals, and introduced alcohol for the first time in its 51-year history. Cammie Spillyards-Schaefer, vice president of culinary and menu strategy, says Cracker Barrel is always listening to consumers, examining the macro environment, understanding competitors, and taking notice of inspirational chefs at independents. The chain keeps an eye on all those matters, and then develops products. Once all the checkpoints are met at the home office, the food heads toward an operational test where operators get their hands on new offerings, test them and receive feedback from guests. That process is exactly how alcohol made its way to Cracker Barrel. Consumers said they wanted options for beer and wine, especially on weekend dinner occasions. Spillyards-Schaefer says the chain is also aware guests may sometimes dine at another restaurant simply because they don’t have alcoholic offerings. So with the new program, a veto vote is eliminated, and guests are provided with an enhanced experience. CEO Sandy Cochran said in December alcohol proved to be incremental in Q1 and mixed 1 percent. At that point, the program was offered in 250 stores, but Cracker Barrel projects it will roll out to roughly 600 by the end of the fiscal calendar. Wine options include Gambino Sparkling Wine, Sutter Home Moscato, Sutter Home Chardonnay, Sutter Home Merlot, and Sutter Home Cabernet Sauvignon, while the beer menu features Budweiser, Bud Light, Miller Lite, Pabst Blue Ribbon, Angry Orchard Cider, and Twisted Tea. The favorite so far has been the Orange and Strawberry Mimosa, which customers have been drinking all day, not just the morning daypart. “I think because people eat breakfast with us all day, and that’s a really important part of our brand, they might be eating pancakes at dinner, but the idea of combining those with a mimosa is delicious, right?” Spillyards-Schaefer says. “The other thing we’ll see is they might be eating Southern Fried Chicken, and what’s better than champagne and fried chicken? And so they’ll have an Orange Mimosa with a Southern Fried Chicken, and we know that our guests like that little cup of sweet, indulgent kind of drink. And so that seems to be fitting the bill for them.” The introduction of alcohol coincided with an evolution of the dinner menu that called for simplicity and innovation. For example, Cracker Barrel previously had a larger and smaller portion size for its Chicken and Dumplings—one with two sides, and the other with three sides. Spillyards-Schaefer says it was difficult for customers to understand the difference and for cooks to remember correct portion sizes. So the brand aligned portion sizes and gave customers a choice of either two or three sides. “Something that sounds as simple as that actually eases execution tremendously in our back-of-house,” Spillyards-Schaefer says. “…

There’s never been a more important time than COVID—and all of the challenges that it brings—to keep a high level of execution in our restaurants.” Cracker Barrel also removed low-performing items across the menu to make room for new dinner offerings that guests would enjoy even more, like the Chicken Pot Pie, Maple Bacon Grilled Chicken, Country Fried Pork Chops, Pot Roast Supper, and Barrel-Cut Sugar Ham.  Spillyards-Schaefer says COVID did slow Cracker Barrel’s major launch of the revamped dinner menu, but she adds it pushed the brand to streamline the process and bring innovation to the market faster than it ever has before. It’s a new strategy Cracker Barrel will maintain coming out of the pandemic. “Chicken Pot Pie had a really great guest response, both in sales performance, but also in how they loved the item,” Spillyards-Schaefer says. “It’s just one of those natural fits for Cracker Barrel—it looks beautiful on TV, it eats really well, and people absolutely loved it. And that barrel cut ham, it’s an inch thick, 24-ounce ham steak, and so that thing going through the dining room is pretty impressive, and it’s one of those eye catchers.” Being a family-oriented restaurant, Cracker Barrel made sure not to exclude children from the innovation. The company’s new Kid’s Menu comprises Mini Confetti Pancakes, Lil’ Barrel Cheeseburgers, Dirt Cup Dessert, and a Milk n’ Cookies Straw. Spillyards-Schaefer says the standouts have been the pancakes—filled with fruity cereal and served with syrup and butter— and the Dirt Cup, which mixes layers of chocolate pudding with chocolate cookie crumbles and gummy worms. To test those products, Cracker Barrel brought both parents and children into qualitative focus groups. The brand learned kids enjoy interactive and captivating presentations. As a result, kids are provided with smaller, user-friendly utensils, and pancake syrup is served in ramekins so little guests can dip their food. The chain balanced their research with the wishes of parents. Milk is the best example; parents want their kids to drink milk, so to entice the kids, Cracker Barrel created a milk straw that has cookies and cream flavor beads in it. “You can’t can’t wear your feelings on your sleeve when you talk to kids about what they like and don’t like right,” Spillyards-Schaefer says. “They’re super honest. But it was really fun to watch them actually eat the food and talk about the food.”

Cracker Barrel’s menu transformation extended beyond the four walls as well. For years, the brand was known for its large, Heat n’ Serve meals offered during the holidays. Those typically serve eight to 10 guests, but with COVID infiltrating the U.S., the brand knew it needed to help consumers in smaller gatherings. So Cracker Barrel introduced new meals that serve up to six guests, such as the Thanksgiving Heat n’ Serve Family Dinner that includes turkey breast, dressing, gravy, cranberry relish, rolls, and two sides. Along with a variety of serving sizes, Cracker Barrel is also moving forward with a wider range of proteins in its family meal deal program. The chain tested a Prime Rib Heat n’ Serve a meal that feeds four to six people. Spillyards-Schaefer says the product was “extremely popular” and that it’ll likely be part of a holiday offer sometime soon. “Sometimes we need completely new innovation and the Prime Rib Heat n’ Serve is a great example of that,” Spillyards-Schaefer says. “That’s not available in our stores. Cracker Barrel is all about traditions, and what’s more traditional at a holiday than prime rib? So for us to be able to deliver a great item like that, that’s only off-premise was a really fantastic thing that drove business and drove sales and we think drove incrementality to the holiday occasion, which is fantastic.” Spillyards-Schaefer says the restaurant will finish rolling out its new dinner menu later this year. There’s one final phase that will involve taking Cracker Barrel favorites like the Hash Brown Casserole, Southern Fried Chicken, and Mac and Cheese and inserting a “little twist.” Those items are currently in development and will be tested and sent to the market shortly after. Additionally, Cracker Barrel is investing in catering occasions by testing Meatloaf Sliders, which is meatloaf with cheese, grilled onions, and caramelized ketchup on a bun. It’s served with a side of cobbler. Spillyards-Schaefer says consumers can always expect Cracker Barrel to meet their needs. She recalls working as a chef in fine dining early in her career where she touched a couple of restaurants. Now she’s touching guests at more than 600 stores across the country, and the experience couldn’t be more rewarding.

“I love this brand,” Spillyards-Schaefer says. “I genuinely love what Cracker Barrel brings to the table and the experience that we give—developing food that meets our guest’s needs, but still delights them in new ways because they still want the things they’ve been enjoying in Cracker Barrel for 50 years. But they also want new things. And so being able to balance that and bring that to market for this brand is truly a joy.”  — Source: fsr.

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