Posted

The fast-casual is creating the Chipotle Creator Class, using TikTok to promote the program, with plans to “redefine the traditionally transactional relationship” between a brand and influencers . . . .

Chipotle is Rethinking its Relationship with Digital Influencers

Chipotle Mexican Grill, which has been an innovator in its use of TikTok for several years, announced Thursday it’s turning to the video-sharing platform to find an influencer to work with the chain on its digital strategy. With the launch of the inaugural Chipotle Creator Class, which includes viral stars and digital creators such as Newton Nguyen, Zack Fairhurst, Zahra, and Moneysigneric, the fast-casual said it seeks to “redefine the traditionally transactional relationship between creators and brands by taking a true creator-first approach that promotes collaboration and career growth,” according to a statement. Chipotle is running a TikTok contest through Monday, inviting superfans to submit creative videos about the chain. The one with the highest number of votes from Chipotle and the Creator Class will earn the 15th spot in the group. Up to three times a year, members of the group will meet with Chipotle to share concepts, ideas, and strategies about the future of the chain and the “creator economy,” Chipotle said. Participants are compensated for their time and can also earn 50 free entrees, a catered Chipotle party, exclusive Chipotle merchandise, a visit to the chain’s test kitchen in Irvine, Calif., a promo code for the influencer’s followers, and priority consideration for future paid sponsorship campaigns. “The Chipotle Creator Class is an entirely new approach to influencer relationships that focuses on rewarding, thanking, and empowering our biggest fans,” CMO Chris Brandt said in a statement. “We are committed to providing exclusive opportunities to our most influential superfans who have done so much to help grow our brand.” In 2019, Chipotle became the first major restaurant brand to harness the marketing power of TikTok, then a relatively new video-sharing social media platform. Chipotle has since run a number of marketing and engagement campaigns on the platform. And, in July, it became an early adopter of a new Tik Tok Resumes platform, which allows prospective employees to submit videos rather than just paper resumes. – Source: Restaurant Business.

How Chick-fil-A uses technology to innovate at the drive-thru . . . .

Senior Director of Service and Hospitality Khalilah Cooper on Learning from the Brand’s Operators

When the pandemic wiped out dine-in business early in 2020, Chick-fil-A didn’t require any big evolution with its service model, as it already relied heavily on drive-thru. But the company still invested in protecting its industry-best hospitality and creating a smooth drive-thru experience using technology. Khalilah Cooper, the brand’s senior director of service and hospitality, talks about how the company learned from its operators as it ensured a modern yet friendly drive-thru experience.

Join us in Denver Oct. 4-6 for CREATE: The Future of Foodservice, where Cooper will share more on Chick-fil-A’s digital strategy.

How did Chick-fil-A keep up its best-in-class hospitality as all business was directed to the drive-thru?

From the very beginning of the pandemic, we were in restaurants, boots on the ground trying to figure out in partnership with operators what were the things that they needed early on and how we could help them support their teams and very quickly get solutions out to help them pivot their business. We closed our dining rooms before that was even a requirement because we saw what was coming and we felt like we really wanted to be on the front end of this to make sure that we were creating a safe experience. We were very clear about it so that everybody could be singing off the same sheet of music, and that was to focus on safe service first. That’s something that has been consistent throughout this entire pandemic. All of our solutions, the response, it’s all been through the lens of making sure that we are serving in a safe way, that we are elevating all of our touchpoints to make sure that we were protecting team members and guests from COVID as best as we could. That was something that was paramount in bringing that hospitality to bear.

What are some things Chick-fil-A has learned about innovation in the past year and a half?

We’ve been innovating for years. Our operators are really great at this. They’re the ones who are working on solutions in their restaurants, tinkering even before we are seeing some types of opportunities or challenges across our entire system. And so we aim to learn from our operators, because they are on the front lines. They’re the ones solving those problems each and every day. Our technology is there to facilitate an interaction between people, and so if we can take tasks off of our team members to allow them to give that warm welcome or that genuine smile to a guest, those are the types of things that we’re looking to continue to lean into — whether that’s the Chick-fil-A One app, iPads in the drive-thru or other technologies that can really allow for team members to serve those guests with a high level of excellence.

How has technology evolved over the past year and a half throughout the system?

Everything has changed, so technology is just a piece of that and we’re trying to look at our business and our experience with fresh eyes, looking at what our guests expect now that they didn’t expect two years ago. We talk about how we have fast-forwarded five years from where we thought we might be in 2021. We’re doing some things and exploring things and guests are expecting experiences that we might not have seen come to fruition until 2024-2025. Everything has changed; how do we do things differently with a fresh perspective without losing those things that customers have come to know and love about their Chick-fil-A experience? – Source: NRN.

Tracy Skeans, who holds both chief operating officer and chief people officer roles at Yum Brands, provides insights during CREATE Digital Dive . . . .
Restaurant Worker of the Future Needs Heightened Digital and People Skills, Expert Says.

The Restaurant Worker of the Future — and even now — is a digitally savvy individual with great people skills, says Tracy Skeans, chief operating officer, and chief people officer for restaurant giant Yum Brands Inc. Skeans, who took on the additional operations role in January at the Louisville, Ky.-based parent to Habit Burger Grill, KFC, Pizza Hut and Taco Bell, provided insights into how the fast-food giant views worker skill sets. “I think the restaurant job of the future will really exist at sort of the connection point between incredible people skills and the ability to leverage technology,” Skeans said during a CREATE Digital Dive Keynote hosted Thursday by Sam Oches, editorial director and editor in chief for Nation’s Restaurant News and Restaurant Hospitality. “Your talent in the restaurant is going to need to be technically savvy and they’re going to need to be able to still manage the complexity of our restaurants,” she said. Skeans said Yum, which has 1.5 million employees at 50,000 restaurants, said the COVID19 pandemic of the past 18 months has increased points of distribution in all the restaurants. “It used to be someone walked in and took out their food,” she said. “Well, now there’s a drive-thru now. Now there’s curbside. Now there are aggregators showing up. That makes added complexity for the worker in the restaurant.” Yum’s large scale has also allowed it to deploy new technology in isolated test markets. For example, KFC in Australia is testing in a few restaurants a curbside-lane-only format that allows customers to order, communicate a code when they drive up and the food is delivered. Skeans said Yum during the pandemic accelerated its investments in and rollout of technology tools to make the restaurant jobs easier and more fulfilling. “The future of the restaurant is going to be younger employees who’ve grown up in a digitally native way,” she said. “No one is going to sit and look at a binder to be trained anymore. They’re going to want an app on their phone that they can use as a coach. We’ve got one called HutBot [for Pizza Hut employees]. It’s literally like you’re carrying the manual right in your pocket on your smartphone. So they have to be technically savvy.” At the same time, restaurants are seeing the level of diversity in their locations changing and that is altering what employers teach workers, Skeans said. Training must address new challenges, she said, adding: “How do you teach people to work on teams that are wildly diverse? How do you teach them to get along? How do you teach them to manage through conflict? How do you teach them to set goals for their restaurant and meet them? “Those are people skills. Those are communication skills,” Skeans said. “I love the idea that the future restaurant worker comes to one of the Yum brands — comes to Taco Bell, KFC, Pizza Hut or Habit — and while they’re in our midst they’re growing their career.” Yum earlier this year committed to investing $100 million in ”Unlocking Opportunity” grants over five years to help counter inequality inside and outside the business, including about $6 million in Louisville, where the company is based. Skeans said Yum is dedicated to giving workers tools that will serve them well over the rest of their career. “Hopefully, they will stay in the restaurant industry and stay with us,” she said. “But even, if for some reason they shouldn’t, those skills of being able to communicate well, good teamwork, managing diverse teams, learning in a fast-paced-agile-nimble environment— those are transferable skills that I think would benefit them throughout their lifetime.” Source: NRN.

Paul Diver as Vice President of Marketing, Gregg Benvenuto as Vice President of Development & Franchising and Michael Chachula as Head of Digital . . . .

The Coffee Bean & Tea Leaf Company Adds Three Executives to its Senior Leadership Team

The Coffee Bean & Tea Leaf® company, one of the world’s leading roasters and retailers of specialty coffee and tea, announced today the addition of three new senior executives who will help scale the company, expand its omnichannel marketing presence and introduce the brand to consumers in both existing and new markets. The company has appointed Paul Diver as Vice President of Marketing, Gregg Benvenuto as Vice President of Development & Franchising, and Michael Chachula as Head of Digital. Collectively, the three executives bring decades of experience to The Coffee Bean & Tea Leaf® and strengthen the company’s leadership team as it enters its next phase of growth. All will report to Sanjiv Razdan, President of the Americas and India. “We are building a world-class team that will help us to accelerate our footprint and digital presence in the post-Covid era,” said Sanjiv Razdan, President of Americas and India, The Coffee Bean & Tea Leaf® company. “Today, speed and convenience are what consumers are looking for and we understand what our guests want and how they want to access it. Paul, Gregg, and Michael bring a proven track record of success to The Coffee Bean & Tea Leaf® with each having deep knowledge and expertise in their respective disciplines that will drive our expansion and ultimately give guests an even better and seamless experience across all touchpoints.” Diver brings more than three decades of marketing success gained in both restaurant and CPG businesses. He has delivered transformative sales, profit, and market share growth for Pizza Hut, Papa John’s, Nestlé, and Ferrero in the USA and Europe. He will lead all of The Coffee Bean & Tea Leaf® marketing initiatives with an emphasis on omnichannel transformation. Benvenuto is a 30+ year restaurant franchise development veteran who has successfully delivered hundreds of restaurant openings for IHOP, Papa Murphy’s Pizza, and Yum! Brands Taco Bell division.  Starting his career in operations, Benvenuto has vast market planning experience to provide growth in key markets. Chachula joins The Coffee Bean & Tea Leaf® as an award-winning digital innovator with a successful track record across multiple industry verticals in the hospitality and restaurant space. He will lead the company’s technology transformation. Most recently, he was the Executive Director, Head of IT for IHOP at DINE Brands. The Coffee Bean & Tea Leaf® is widely credited for driving high quality and innovation to the coffee and tea industry. The iconic coffee brand started the frozen coffee drink craze with the invention of The Original Ice Blended® drink and was also the first global coffee and tea retailer to offer cold brew tea. – Source: NRN.

Owners are eligible for $10,000 and workers up to $1,500 under proposed COVID Relief Fund-backed program . . . .

Denver Looks to Offer Restaurant Owners and Workers Grants

The Denver City Council is set to vote on a new grant program that could make city and county restaurant owners eligible for $10,000 and workers up to $1,500. The council will vote on a $1 million grant to the Colorado Restaurant Foundation, the philanthropic arm of the Colorado Restaurant Association, and $500,000 to the Colorado Event Alliance, with both pools financed with monies from the Federal COVID-19 Relief Fund. “The restaurant industry is Colorado is facing a severe labor shortage in the wake of the worst 18 months in living memory, with more than 91% of restaurants reporting in an August survey that they were struggling to hire enough staff,” said Laura Shunk, president of the Colorado Restaurant Foundation, in a statement. “In that same survey, more than 67% of restaurants reported struggling to retain their current employees, and nine out of 10 restaurants have raised wages or changed business practices since the pandemic to attract and retain more talent,” Shunk said. A CRA spokesperson said the restaurant association and the foundation were working with Denver Economic Development & Opportunity division on the new grant program, called “Denver Back to Work.” The city council was expected to vote on the proposal “within days,” she said. The association said the $10,000 grants could be used to offer hiring, retention or incentivize bonuses to attract and retain talent. “We hope that these grants will go a long way toward helping restaurants bring on more staff,” a spokesperson said. “It’s also important to note that the grants can be used for more than just hiring and retention. If workers need help paying for childcare, an underlying systemic issue that is affecting the labor shortage, these grants can be used toward those costs.” Shunk said the Denver Back to Work program specifies that eligible employers must be located in the city or county of Denver – although the employees benefiting from the grant program can live anywhere. The applicants don’t need to be members of the CRA or the Colorado Events Alliance. Employers are not allowed to hold grant money and must pay all directly to their employees, but the amount of each individual grant is at the employers’ discretion. “The CRF managed $3 million in Angel Relief Fund grants for more than 3,500 local restaurant workers during the 2020 pandemic, so we’re experienced in managing this type of grant program,” Shunk said. “Grants can be made out to workers in any amount, but assuming an average of $1,500 per grant, the ‘Denver Back to Work’ program will be able to serve 943 workers across 140 total local employers,” Shunk said. The Colorado Restaurant Foundation was founded in 1987 as the non-profit, philanthropic arm of the Colorado Restaurant Association. – Source: Restaurant Hospitality.

The median hourly wage in limited-service restaurants is $11 per hour; $15 per hour for line cooks . . . .

General Managers Make a Median Base Salary of $90,129 Including Bonuses, says Black Box Intelligence Report

The median hourly wage in limited-service restaurants was up 10% in the second quarter year-over-year, and up 6% among full-service line cooks, according to a Black Box Intelligence webinar. Hourly workers in limited-service restaurants made a median of $11 per hour in the second quarter, compared with $10.50 per hour during the first quarter this year, which at the time was a 4.1% increase year-over-year. Line cooks made an average of $15 per hour during the second quarter, up from $14.85 per hour during the first quarter. The data comes as part of a larger report released last month by Black Box looking at the industry’s labor crisis, which has caused turnover rates to climb significantly. Across the country, many restaurants have been able to open fully because they are having trouble finding staff, said Victor Fernandez, Black Box’s vice president of insights and knowledge. Turnover, which was already high before the pandemic started, is also costly. The per-person cost of a terminated employee is $14,689 for a general manager, $8,119 for a manager, and $1,869 for an hourly worker — with most of that cost going to training new workers. – Source: Restaurant Hospitality.

Customers can redeem their Taco Lover’s Pass until Nov. 24 at participating locations . . . .

Taco Bell is Testing a 30-day Pass for a Free Taco a Day in Tucson, Arizona Restaurants

The newest subscription service isn’t to stream TV shows or movies. It’s for Taco Bell’s tacos. Customers with the Taco Lover’s Pass can order one crunchy taco, soft taco, spicy potato soft taco or Doritos Locos taco per day for 30 days straight on the chain’s app. The cost of the pass ranges from $5 to $10 a month, depending on the location. The Yum Brands chain is testing the program across 17 locations in Tucson, Arizona from Sept. 9 to Nov. 24. Other restaurant chains have also launched similar subscription programs, with mixed success. Restaurant Brand International’s Burger King launched a coffee subscription for $5 a month in 2019 to help promote its breakfast menu but discontinued it several months later. Panera Bread, which is privately owned, launched its own version in 2020 that offered unlimited coffee and tea for $8.99 a month and the first three months free. Less than a year later, the program had nearly half a million paying subscribers. Like Burger King and Panera, Taco Bell is likely hoping to drive regular visits to its restaurants from customers, building habits during the 30-day period. Since one taco isn’t filling enough for most consumers, they might add more to their orders, too. The pass could encourage more consumers to download and use Taco Bell’s app as well. The chain launched a loyalty program through its app more than a year ago. Executives on Yum’s latest earnings call said that Taco Bell loyalty members spend 35% more on their visits compared with their spending habits before joining the program. Shares of Yum, which also owns KFC and Pizza Hut, have risen 18% this year, bringing its market value to $37.9 billion. – Source: CNBC.

 

Franchisees are racing toward a food-truck opportunity that opens accessibility to the classic brand . . . .

Auntie Anne’s Hits the Pavement and New Audiences Nationwide

Auntie Anne’s has long been a staple in malls and airports across the U.S. The smell of warm, salty pretzels enticed travelers and shoppers alike from the brand’s storefront and kiosk locations for more than 30 years. But what about the customers craving a doughy snack who aren’t traveling or strolling through the mall? Where do they go when they want an order of pretzel nuggets or a pretzel dog? They might just find themselves waiting in line at one of Auntie Anne’s food trucks. This latest iteration of the classic brand is popping up nationwide, and the excitement isn’t confined to customers. “Well, you know, the retail landscape has changed dramatically,” franchisee Linda Reed says when asked why she decided to open the first Auntie Anne’s food truck in California. “So, this was an opportunity to really go where the people are and to get to the places where there are lots of people and lots of things happening in Los Angeles.” Reed opened her first Auntie Anne’s location 28 years ago. The success of her debut unit, located in Glendale, California, led to the opening of several other stores across California. Before long, Reed oversaw nine locations and continued to introduce Californians to the world of pretzels. “People really didn’t know pretzels in California,” Reed says. “They’d come up and order a bagel and you have to kind of explain to some, it’s a pretzel.”

After decades of success operating traditional units, Reed says her youngest son began to push her toward the food truck model. After three years of hearing why she should go mobile, Reed pulled the trigger. “I finally said, OK, let’s try it,” Reed says. “So, he runs the food truck. And we’ve done so well with it.” The truck, primarily used for events, has brought in as much as $10,000 per day. “When we did the BTS concert at the Rose Bowl, we had 300 people in line for five hours straight,” Reed says. “A lot of them waited in line for an hour before the concert started for a pretzel.” Reed’s success with the mobile concept led to her opening the first Cinnabon food truck in 2020, another chain in the FOCUS Brands portfolio.

Auntie Anne’s mobile success hasn’t been limited to concerts at the Rose Bowl. Just ask Sam and Brian Hardesty, who operate multiple Auntie Anne’s trucks across Kentucky. Sam Hardesty worked as a middle school teacher before leaving education to open her own mobile unit with her husband, Brian. On top of the brand’s loyal following, what makes these models so successful is their ability to consistently introduce products to a new area, the Hardestys say. If one location they visit works well, great. If not, that’s OK, too, because they aren’t grounded (literally) to that spot.

Cinnabon isn’t letting Auntie Anne’s hog all the food truck fun.

“That’s really the perk of having a food truck,” Brian says. “With most brick-and-mortars, you see that they’re super busy for the first two or three months and then business dies down a little. The luxury of being a food truck is we’re the new person in the town wherever we go. We stagger our visits about every eight weeks or so, that way we’re always that new person coming in.” This approach has served the Hardestys well to date. With two food trucks already operating, they plan on opening several more to serve the various regions of the Bluegrass State. “We have our truck in Elizabethtown, and the Paducah truck,” Sam says. “The Paducah truck can actually hit five different states [Kentucky, Tennessee, Missouri, Illinois, Arkansas] because the five states are within a 100-mile-radius of each other. We haven’t decided where we want our third truck but maybe somewhere in the Middlesboro area so we can also serve Knoxville [Tennessee]. We would like to have both of those trucks operational within about 18 months.” Popping up across smaller cities and towns is a strategy Chris Coleman also employs. Coleman, who opened his Auntie Anne’s food truck at just 29 years old, says customers in small towns are excited at the prospect of having the truck set up shop in their area.

“I’ll make a Facebook post and let them know we’re there,” Coleman says. “We get like 200–300 shares and there will be a line from the time we open until the time we close. For them to see that food truck in their town is exciting for them. Our numbers are very good. I think they [small-town customers] spend more money when they visit us because they don’t know when we’ll be coming back.” Like the Hardestys, Coleman wants to grow his fleet. With a goal of five units in the next few years, Coleman offers advice for anyone thinking about getting into the food truck game. “It takes a lot of work,” Coleman says. “A lot of dedication and motivation. There are a lot of things to consider. But mostly it takes dedication and motivation.” The food truck business is not for the faint of heart. Linda Reed echoes Coleman’s sentiment, saying, “you have to recognize it’s a hard business because you’re basically starting over every time you go out, you have to break down, you got to set up again, you’ve got to restock.” Hard work aside, for Reed, partnering with Auntie Anne’s was about the dedication to the brand. “When I met the people and saw the passion they had for the brand,” Reed says, “every one that was associated with Auntie Anne’s had it and that passion is still there. That’s the main reason why I got involved.” – Source: QSR.

Yum Brands YUM 0.0%’ CEO David Gibbs believes his company and its four brands–KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill–is in a better position than most of its restaurant peers to contend with the current labor crisis . . . .

Yum Brands’ CEO: Culture Is What Will Get You Through a Tight Labor Market

That labor crisis, by the way, has yielded an all-time high quit rate for restaurant workers. It has also driven operators to hike their wages in response, and average pay in the industry is now above $15 an hour for the first time ever. But Yum’s advantage comes from its culture, Gibbs said during a presentation at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum. “The dollars matter, but everybody’s paying more now,” he said. “It’s the kinds of environments where friends refer friends that are the most successful … I like our position when it comes to attracting the best talent in the industry and staffing our stores because Yum is built on a people-first culture. It’s not just about paychecks; it’s about paychecks and pathways. Culture and talent and environment is where we have an advantage.” That said, Yum is “pulling out all the stops” to make sure restaurants are sufficiently staffed in this challenging environment, adding benefits like retention and referral bonuses. The company is also honed in on that “pathways” piece, even going so far as to acquire Heartstyles last year. The leadership development company offers hands-on training to help individuals with an objective of building “heart-led leaders” and elevating the customer experience.

Why are bakery workers who make Oreos, Ritz, and Chips Ahoy on strike?

How Matt & Steve’s builds one of North America’s fastest-growing marinated vegetable brands without outside investors?

Fresh cash injection into the last crumb shows why CPG should prioritize brand building in the age of DTC

“This can’t be overstated: The culture you create in the restaurant is first and foremost what is going to help you get through a tight labor environment,” Gibbs said. “Our franchisees that have better cultures and environments are the ones that are doing better.” Yum has been recognized for its award-winning, employee-focused learning experiences, and Heartstyles may very well help generate a more consistently positive restaurant environment once scaled across the company’s massive, 50,000-unit global system. Notably, Heartstyles joins a growing roster of acquisition targets for Yum, most of which are technology startups. In the past several months alone, for example, Yum has acquired AI company Kvantum, marketing and omnichannel solution company Tictuk Technologies, and order management solution company Dragontail Systems. The timing of these acquisitions has been beneficial to say the least. Such technologies were ramping up prior to the COVID-19 pandemic, but the industry shutdown forced an acceleration of digital behaviors and off-premise business, which made the table stakes. For Yum, that meant surpassing $20 billion in digital sales over a 12-month period. “I don’t think we ever imagined we’d be there this quickly, but that’s what this environment has done,” Gibbs said. “All of the technology we’ve been investing in is all paying great dividends for us.” The company isn’t likely done making such investments. Gibbs said one of Yum’s biggest advantages is its ability to both scale and share learnings across its giant footprint. The company is leveraging those abilities to ensure it provides customers, employees, and franchisees with the best technology solutions. “If you’re interacting with Yum, you should have the best-in-class experience with our technology,” Gibbs said. “We can do that because we can afford to buy up some of these smaller companies that have great technology–competitive-advantage-technology–and then scale it in our system. We make the economics work in a way that our franchisees get the best solutions at the lowest cost. I imagine we’ll do more [acquisitions] because of the economics and the battle that’s going to be more and more fought over who has the best technology solution in the restaurant space.” Gibbs also doesn’t rule out acquiring another restaurant brand down the road. Yum’s last such purchase came when it added The Habit in Early 2020. The mergers and acquisitions market has ramped up significantly since then with no end to the momentum in sight. For now, however, the focus is on its current brands’ growth, including KFC and Pizza Hut getting back to net new unit growth in the U.S., Taco Bell stretching its legs internationally and The Habit moving out of California and into international markets. “The Habit, in many ways, was dipping our toe in the water without making a massive investment,” Gibbs said. “Everything there, despite the crazy environment, has worked well. I imagine there will be other Habit-like deals down the road, but we’re in no rush. We have so much growth ahead of us with the brands we have today and if we don’t do any other acquisitions, we’re still going to be a much larger company in the future than we are today.” – Source: Forbes.

What’s on the menu for the 2021 – 2022 school year . . . .

SmartSummit: Schools Grapple with Supply Chain Issues and other Challenges as New Year Begins

The pandemic has forced schools to adapt in countless ways, including reinventing meal programs to ensure students have access to nutritious food whether they are learning from the classroom or the kitchen table. Last school year, as teachers transitioned to online instruction, school foodservice operators just as quickly shifted to serving grab-and-go meals and even delivering meals to students’ homes. As the 2021-22 school year begins, many schools are resuming in-person instruction and foodservice directors are facing new challenges brought on by supply chain disruptions that make menu planning difficult. Two school nutrition experts spoke about the lessons learned during the 2020-21 school year and the challenges that lie ahead during SmartBrief’s Aug. 24 SmartSummit,

Applying lessons learned in SY 2020-21

Although schools implemented offsite meal options quickly after the pandemic forced schools to close last year, the shift took a major toll on meal participation. Many issues stemmed from breakdowns in communication, with both schools and families unsure of where to turn for the latest information. Having district leaders be part of the conversation early on is key to making sure meal plans run smoothly, said Dr. Katie Wilson, executive director of the Urban School Food Alliance, a nonprofit with 16 member districts across the US. Even heading into this school year, there are many schools and districts that aren’t sure how they’ll be serving meals this year, which could point to a need for more communication, Wilson said. Almost 66% of those who attended the webinar said their school or district will return to in-person meal service for the 2021-22 school year, while 3.6% said they will offer grab-and-go or delivery, 16.2% will offer a hybrid model and 14.4% are unsure, according to a live poll conducted during the event. Wilson also pointed out the importance of schools communicating with families, and the issues that can arise when schools rely solely on the internet for communication, since not every family has reliable internet access. “How else do you get communication out to all these parents? Some of the things we’ve learned were: First of all, community partnerships were absolutely essential. We needed partnerships and community groups that spoke a variety of languages…We needed to partner with the food banks and the local religious organizations and the places where people trusted the leadership as to what the information could be,” she said. In addition to direct internet communications and community partnerships, Wilson said schools can use signs, flyers, text messaging, and even social media. “We had a district that did a TikTok video,” she said. Finding out which methods of communication work best can help lay the groundwork that will make any emergency meal plan transitions run more smoothly in the future. “We have a lot to learn, and I hope that we all sit down in the end and write a plan,” Wilson said.  “We need an emergency pandemic plan for the next time that this happens so we can feed people across this country in a much more efficient way.”

Dealing with supply chain disruptions

Another major hurdle for schools this year is supply chain issues, which are making it difficult to find many food items that schools rely on. Some distributors are scaling back their school foodservice business and dropping deliveries to schools, according to recent reports. Foodservice supply chains are feeling pressure across the board due to shortages of workers and truck drivers. For suppliers that work with both schools and restaurants, the latter is a bigger business driver for most suppliers since restaurants give them a higher profit margin and consistently buy the same things from month to month. By comparison, schools have to place orders a year in advance, and the tangled web of regulations for school meals requires a wide range of specific products that suppliers can’t sell to other customers if a school order falls through. These issues are nothing new, but the pandemic shed a light on them by forcing suppliers to make choices about which clients they could continue to serve. “I really think that the pandemic has shown that we are not good to do business with,” Wilson said. Almost 64% of those who attended the webinar said supply chain issues are a major concern for them this year, while 29.6% said they are somewhat of a concern and 6.5% said they are a minor concern. No one who participated in the live audience poll said supply chain issues were of no concern. Boston Public Schools, which serves 54,000 students, recently received just 30 days notice that its longtime produce supplier would be closing, said Laura Benavidez, the district’s executive director for food and nutrition services. Benavidez said she was able to find another supplier, but it was a scramble with the school year fast approaching, and her initial requests for proposals went unanswered. Prices for food items have risen by as much as 30%, and pressure on the supply chain is forcing some manufacturers to discontinue certain products. All of these factors require schools to be more flexible in the way they plan meals and order food, but that will make a change from the top-down, Benavidez and Wilson agreed. Wilson said the Urban School Food Alliance has a few projects going where “we are really looking to redevelop a new federal business plan” around school food procurement. New rules that allow for more flexibility in the way schools plan meals and purchase food would empower schools to be more “proactive instead of reactive to whatever is happening around us,” Benavidez said. In the meantime, Benavidez said she is relying on creative solutions from her staff to ensure that schools will be ready to serve students this fall. “I have to give credit — I have an amazing team that just has all these ideas of where we can go, what we can do, who we can work with,” she said. “There hasn’t been a shortage of people willing to help or people willing to share their ideas.”

Leveling the playing field for the future with universal meals

Just as the pandemic exacerbated existing problems with how schools purchase food, it also brought increased attention to the issue of food insecurity and the need for permanent universal meals, the panelists said. Extended child nutrition waivers from the USDA will allow schools to continue serving free meals to all students through the end of the 2021-22 school year, but the need for nutritious meals provided at no cost is something that would continue to benefit students after the pandemic is over. In Boston, students in public schools qualify for meals at no cost through the Community Eligibility Program, but this process has to be renewed every four years. While the CEP gave Benavidez the peace of mind that BPS would immediately be able to provide free meals for students during the pandemic regardless of additional waivers, she said re-applying every four years is a burden she would like to see lifted. Wilson agreed, pointing out that CEP is a step in the right direction, but the “school district still has to pick up the remaining cost, it isn’t universal.” Continuing to fight for a federal program that is truly universal and makes school meals “just part of the school day,” is essential to taking the burden off of schools, but even more so to take the burden off of students, Wilson said. “We have a very wealthy country with the safest, most plentiful food supply in the world. And yet when we walk through a school door we tell a child, ‘we have to know your family income before you get food…This is ludicrous that we’ve done this and we haven’t been able to figure this out,” she said. Current household income requirements for students to be eligible for free or reduced-price school meals exclude many students who are food insecure, and the system has created a stigma around participation in free meal programs that causes even eligible students to not participate, Wilson said. Many students are self-conscious about being seen by their peers in a free lunch line, fearing they’ll be judged, she said, citing a report from feeding America. “Why do we put this stigma on kids and keep talking about ‘poor schools’? Let’s talk about good education. Let’s talk about…the fact that nutrition is important in all of our lives.” – Source: ProChef SmartBrief /SNA Smart Brief.

Five Maggiano’s stores are scheduled to receive an upgraded layout, signage, furniture and décor . . . .

Maggiano’s Mixes Tradition and Evolution in New Remodeling Initiative

Maggiano’s Little Italy was founded 30 years ago by Lettuce Entertain You’s Richard Melman, and since that time, the chain has not only won awards but has been praised for its atmosphere in the dining and banquet rooms. Brand President Steve Provost says the company convinced itself that it was the rare, timeless restaurant concept. While Maggiano’s needed to spend large funds to upkeep their 15,000 -to 20,000-square-foot buildings, the chain didn’t think it needed to update them because it represented a moment in time for the Italian immigrant and the tradition of coming to America. From the research that predates Provost’s tenure, Maggiano’s found those moments to be rich and memorable for the baby boomer generation who is drawn to the likeness of Frank Sinatra and the Rat Pack. However, Gen X, Millennials, and Gen Z customers feel less connected, and the company knew it needed to bridge that gap. The chain proceeded to enlist the help of Harrison, a global design consulting firm that’s done work for several restaurants, including Mellow Mushroom, Fogo de Chão, Velvet Taco, and Slim Chickens. “That’s the first time there really was a discussion, and the challenge to the Harrison team began with how do you hold onto the past while connecting to these future generations?” Provost says. The final result is a prototype that provides an engaging and cinematic atmosphere, mixing legacy features like black and white photography, red check tablecloths, round Capone booths, and warm wood, with updated features like sculptural light fixtures, specialty finishes, and book-matched marble. Five Maggiano’s stores in Oakbrook and Skokie, Illinois, Plano, Texas, Tampa, Florida, and Denver are scheduled to receive the upgraded layout, signage, furniture, and décor. Harrison’s ideation process began with brand strategy sessions and orientation tours that included interviews with staff and guests, all of which gave the firm a better understanding of what Maggiano’s needs to move forward. Several aspects—from large to small—were covered in these discussions, says Harrison’s lead designer Rachael Armstrong. For instance, through market research, Harrison and Maggiano’s realized it was best to keep wood paneling instead of stripping it out. Then there were items like the photos of the Rat Pack and Sinatra. Both are classic, but they don’t quite resonate with today’s consumers. The question, “Who is this generation’s Frank Sinatra,” is a big question, but Harrison responded with a simple answer, “us.” What the company means is that society is now in a social media age where first and foremost, people tell the world about themselves. That’s why remodels will have user-generated photography and even an Instagram wall. “We are blessed with people having events that they talk about the rest of their lives—baptisms and rehearsal dinners, birthday parties within our walls,” Provost says. “In this modern age, those are replicated on thousands of photographs that are then shared on Instagram or Facebook, and it turns out those are extremely compelling photographs. More compelling to this generation than even a celebrity.” Provost says the most pronounced difference will be for banquet guests, who want servers to make them feel special, but also wish for an environment in which they can look back on Instagram and be proud of the event. The president praises Harrison’s ability to take what’s now a “masculine, dark old Italian” atmosphere and make it more appropriate for today’s wedding planner. In the dining room, the executive believes customers will be most impressed by the subtle modernization in the artwork and music. Armstrong describes it as little “moments of realization.” “At first it might sound like it’s just your standard big band. Just your big band music that you’re used to hearing, but then there’s that moment of realization of, ‘Oh my gosh, that’s actually the Killer’s song being done in a big band way,’” she says. Maggiano’s will also use remodels as an opportunity to streamline its carryout program. To the point that guests spend about as much time picking up their food as they would a McDonald’s drive-thru. The brand is annualizing roughly $2 million in off-premises sales, which is essentially the equivalent of a Popeyes or Panda Express. Brinker International, Maggiano’s parent company, recently rolled out the virtual concept Maggiano’s Classics, which is now in more than 250 restaurants. The company expects the off-premises only brand to be in 900 restaurants by the end of next June. “To be able to do that with scratch-made food, but the convenience of McDonald’s, that’s our vision for the parking lot,” Provost says. “Like in Oakbrook, we’re enlarging and moving the carryout area to accommodate that. So there are three different benefits for three different guests who use us differently.” The exterior of Maggiano’s restaurants will receive just as much attention. None of the chain’s 52 locations, which are largely based in malls, have the same prototypical design, so Harrison’s approach differed depending on location. In Oakbrook, the restaurant has a Georgian influence, while Tampa has more of a Spanish/Mediterranean feel. Oakbrook will have a darker color palette because the architecture style historically can handle it. In Tampa, it’s a much lighter, Floridian look; no dark elements other than a few accents on the iron railing and light fixtures. “Each of them has the same components but they have just done it in a different way and we dial up or dial down depending on what the architecture or the environment actually looks like,” says Sarah Jenkinson, Harrison’s director of design. Provost says remodeling candidates were selected based on age. Not necessarily to modernize the buildings, but more because Maggiano’s prefers to put earlier investments into stores that have been open longer. With this strategy, he thinks the chain can make the most profound impact. The other key factor is that two-thirds of stores are inside malls, and all but two are leased from major landlords like Simon Property Group and Brookfield Properties. Provost knows that coming out of the pandemic, there were lines out the door of clients and partners asking for rent relief or shutting down restaurants. Maggiano’s was fortunate to be linked with Chili’s, which quickly returned to positive sales and launched the $170 million virtual brands It’s Just Wings. Because of that, Maggiano’s was able to wait, and now it’s asking landlords to consider splitting costs, given the size of the buildings. “I think frankly they like the fact that a restaurant partner is confident enough about the future to spend half a million to a million dollars in one location,” Provost says. “And they’re willing to share it. Now that’s not going to happen in every location and so we’re developing different approaches depending on the amount you want to spend, but that approach is why we’re going to Oakbrook first. It’s why we are working on our Tampa location, Denver location because frankly, we had willing landlords who are willing to partner with us in the investment.” The first stores to receive the remodel will be Oakbrook and Plano, which should be done sometime before Thanksgiving. The company expects to remodel eight to 10 locations each fiscal year. Provost says it’s a daunting task, but as word spreads about these remodels, the chain is finding more landlords willing to make the investment. Armstrong notes that it’s easy in design to veer off, but Harrison kept focus by remembering one aspect—the guest remains at the heart of the experience. The main goal is to attract those who grew up on the brand and ensure they’re establishing new memories with their own families. “Because there are so many different guest types for Maggiano’s, there’s also a lot of different guest responses that we’re trying to evoke from the tiny little ‘Oh my gosh, I can’t believe they thought of that to the big wow moments of ‘this is amazing’ and Maggiano’s is definitely the place we need to be for our event,” Armstrong says. – Source: fsr magazine.

Darden Restaurants is helping Feeding America . . . .

Darden Restaurants Provides $2 Million Grant to Feeding America

Darden Restaurants is helping Feeding America add refrigerated trucks for 10 member food banks to support mobile pantry programs and food distribution in communities with the highest need. Through a $2 million grant from the Darden Restaurants, Inc. Foundation, and support from partners Penske Truck Leasing and Lineage Logistics, each food bank will receive a 26-foot vehicle that can transport 12,000 pounds of food at a time and $26,000 to use for food and other needs.

Food banks receiving this gift include:

Community Food Bank of Central Alabama in Birmingham, Ala.

East Texas Food Bank in Tyler, Texas

Feeding the Gulf Coast in Theodore, Ala.

Feeding Northeast Florida in Jacksonville, Fla.

Feeding Tampa Bay in Tampa, Fla.

Food Bank of North Alabama in Huntsville, Ala.

Food Bank of Northeast Louisiana in Monroe, La.

Forgotten Harvest in Detroit, Mich.

Mississippi Food Network in Jackson, Miss.

Tarrant Area Food Bank in Fort Worth, Texas

“Feeding people is what we do, but the hard reality is that there are still too many families in communities we serve who struggle to put a meal on the table,” says Gene Lee, Chairman, and CEO of Darden Restaurants. “We’re uniquely positioned to help, and by leveraging our scale and relationships with partners like Penske Truck Leasing and Lineage Logistics, we’re proud to do our part to help get food into the hands of people who need it.”

The Need Because of the pandemic, 60 million people sought support from food banks, food pantries, and other private food assistance programs in 2020 — an increase of 50% from 2019. Rates of food insecurity are higher among people of color. According to data from the U.S. Department of Agriculture, when compared to White individuals, Black individuals were 3.2 times more likely and Latino individuals were 2.5 times more likely to experience food insecurity in 2020. In addition, the pandemic has created challenges for charitable food distribution. Feeding America helped identify food banks serving communities of color with disproportionately high levels of food insecurity to receive a truck to help increase their mobile food pantry capacity. “Millions of families continue to face impossible decisions — like choosing to put food on the table or pay their rent,” said Claire Babineaux-Fontenot, CEO of Feeding America. “Food banks are focused on improving people’s access to food, particularly in communities of color where people are inordinately impacted by food insecurity. Refrigerated trucks help make that possible. We are grateful to Darden, Penske, and Lineage for providing vehicles to member food banks, helping them to distribute more food safely to people who need us most.”

Responding to the Need Darden and the Darden Foundation have been partners with Feeding America for more than 10 years. This donation marks the latest effort in Darden’s ongoing commitment to help fight hunger, and it follows one earlier this year that provided five refrigerated trucks for food banks located in Columbus, Ga.; Memphis, Tenn.; Orlando, Fla.; San Antonio, Texas; and Shreveport, La. Within their first four months, these vehicles enabled more than 300 mobile food pantries that distributed more than 8.7 million meals in their communities. The $2 million grant also provides financial support for the Feeding America network of food banks in communities served by Darden’s restaurants. Since 2017, the Darden Foundation has provided more than $10 million to support Feeding America member food banks across all 50 states. These efforts go hand-in-hand with Darden’s Harvest program. Every Darden restaurant collects surplus, wholesome food that is not served to guests and prepares it for donation to local nonprofit partners. Since its inception, more than 127 million pounds of food — totaling more than 106 million meals — have been donated through the Harvest program. – Source: fsr magazine.

The struggling fast-casual pizza chain, which has closed all but 12 locations, is now owned by the parent of Little Big Burgers and others . . . .

PIZZAREV Acquired for $1.1M by Amergent Hospitality

Struggling fast-casual chain PizzaRev has been sold to multi-concept operator Amergent Hospitality Group for $1.1 million, the company announced. Five years ago, PizzaRev had 44 locations. It has since closed all but 12 units—three company-owned stores and nine franchised locations. Amergent purchased them for $100,000 in cash and a secured convertible promissory note for $1 million, according to Securities and Exchange Commission documents. As part of the deal, former PizzaRev parent Pie Squared Pizza deposited $2 million in escrow for Amergent to use as working capital during its first year as owner. Matthew Avila, who has served as PizzaRev’s director of corporate operations since 2014, will lead the brand, Amergent said in a statement. Amergent President Fred Glick said it expected this acquisition to lead the way to buy more pizza chains.  “By entering the pizza space via this initial acquisition, Amergent will have the ability to identify additional pizza concepts to acquire and operate,” Glick said in a statement. “We anticipate numerous synergies including improved franchisee support, shared information technology, supply chain efficiencies, improved sales and marketing, research and development, complementary geographies and customers, and enhanced employee opportunity.” In 2014, Buffalo Wild Wings invested in PizzaRev when it had just three locations. But the wing chain sold PizzaRev three years later to Chicago-based Cleveland Avenue, a venture capital firm headed by former McDonald’s CEO Don Thompson. PizzaRev had more than 50 restaurants at the time, and 200 under development. By 2019, then-Southern California-based PizzaRev had 32 locations, according to Restaurant Business sister firm, Technomic. Just before and during the height of the pandemic, the customizable pizza concept closed more than half of its total units, dwindling to 13 locations last year. Its sales fell more than 54% from 2019 to 2020, according to Technomic, the worst of all of the country’s major fast-casual pizza brands—most all of which saw major sales declines during the period. “We expect this acquisition to be immediately accretive and lay the groundwork for additional future like opportunities, some already in process,” Amergent CEO Mike Pruitt said in a statement. “We continue to focus on assets whose value can be unlocked inside of our public platform, which will result in greater scale and synergies.” Before acquiring PizzaRev, Charlotte, N.C.-based Amergent had 37 restaurants, made up of 28 company-owned and nine franchised locations of brands including Little Big Burger, Burgers Grilled Right and American Burger Company. Amergent also owns one Hooters location and an Owls Nest gaming unit.  — Source: Restaurant Business.

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

Leave a Reply