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Top trends at the 2022 NACS Show

Food and beverage makers are zeroing in on snacking occasions to drive sales in the convenience channel. From mid-morning treats to the afternoon- pick-me-ups, new products geared toward key dayparts were trending at the 2022 NACS Show, presented by the National Association of Convenience Retailers.

Held Oct. 2-4 in Las Vegas, the event saw more than 1,200 exhibitors present the latest innovations for convenience stores, including packaged food and beverages and foodservice offerings.

The convenience retailing industry saw in-store sales increase to a record $277.9 billion in 2021, according to NACS State of the Industry data released this year. The industry grew in-store sales despite a decline in the number of convenience stores, which totaled approximately 150,000 at the start of 2022. Shoppers purchasing more items per trip contributed to sales gains, with the average convenience store basket growing 6% in 2021, offsetting a 7% decline in the number of in-store transactions over the past two years.

Beyond recovery from the pandemic, packaged foods in convenience stores are benefiting from consumers eating more small portions throughout the day, as opposed to a few large ones.

Hostess Brands is leveraging an occasion-based innovation model to reach more convenience store snackers. The company embarked on a “journey of discovery within the $90 billion snacking universe,” digging into all the different occasions in which shoppers consume sweet baked goods, said Christopher Balach, general manager of the Lenexa, Kan.-based snacks manufacturer.

Five areas of focus emerged from that research, he said during an interview with Food Business News at the 2022 NACS Show.

“The occasions where there is high overlap between growth potential and the role Hostess can play are morning sweet start, lunchbox, afternoon reward, afternoon sharing, and immediate consumption,” Mr. Balach said. “These occasions are growing faster than snacking in totality, and they’re growing faster than sweet baked goods, so they’re really ripe territories.”

Morning sweets, afternoon rewards, and immediate consumption present the biggest opportunities for sweet snacks in convenience stores, according to Hostess. The company’s Boost Jumbo Donettes align with the morning daypart. Launched earlier this year, the energizing donuts contain between 50 to 70 mg of caffeine and are available in chocolate mocha and caramel macchiato varieties.

On display at NACS were Hostess Bouncers, a new poppable take on the company’s baked snacks set to debut this fall. Available in three cream-filled versions, including Twinkies, Ding Dongs, and cinnamon Donettes, the bite-size confections cater to the afternoon reward occasion.

With 75% of the company’s donut business flowing through convenience stores, both products were designed with portability in mind.

“As we’re developing innovation for the convenience channel, we’re keenly aware of who that core shopper is,” Mr. Balach said. “It’s a young millennial male who often is in the store twice a day for a morning fuel trip and an afternoon treat. He’s eating on the way out of the store as he’s hopping in the car and going about his business. Donuts with the functional benefit of caffeine was a great way to start the year. Now, we’re hitting on afternoon snacking with an on-the-go treat that is low-mess and easy to consume with one hand.”

Also on display at NACS were morning-centric snacks from the Kellogg Co., Battle Creek, Mich. The company showcased RXBAR A.M., an extension of the RXBAR brand geared toward morning snack occasions.

“Late-morning snacking and early afternoon snacking are where we’re seeing strong growth in the c-store,” said Daniel DeMeyer, senior director of commercial strategy, small format, at Kellogg. “The core RXBAR products often are consumed as an afternoon snack, but we wanted to target the breakfast occasion as well. Even with work-from-home, the time between 10 a.m. and noon is a big opportunity.”

Launching in honey cinnamon and chocolate varieties, Kellogg’s RXBAR A.M. offerings contain many of the same ingredients as the brand’s core products, including egg whites and oats. One notable difference is the absence of dates.

“RXBAR is known for posting ingredients on the front of the package, but that can be both a plus and a minus,” Mr. DeMeyer said. “Dates are polarizing. One of the big reservations is that they’re too chewy, so we made these new bars a little crispier.”

Landing on convenience store shelves later this year are cinnamon roll-flavored Jumbo Snax from Kellogg, developed in partnership with Focus Brands-owned Cinnabon. The grain snacks are dusted with cinnamon and sugar and build off the success of Jumbo Apple Jax and Jumbo Froot Loops.

“The Jumbo format opens brands up to different occasions, taking them from the morning daypart into the afternoon daypart,” Mr. DeMeyer said. “We think this could be the best of the Jumbo items because of the partnership with Cinnabon. It’s the No. 5 brand among millennials with 94% brand awareness.”

Co-branded products

Kellogg wasn’t the only company showcasing Cinnabon-flavored snacks at the 2022 NACS Show. Chicago-based Conagra Brands is gearing up to introduce Snack Pack Cinnabon Pudding in January. Made with the same Makara cinnamon found in Cinnabon’s cinnamon rolls, it is one of several co-branded Snack Pack products launching early next year. Other upcoming launches include Snack Pack Fruity Pebbles Pudding, a collaboration between Conagra and Post Holdings, and Snack Pack Starburst All Pink Juicy Gels, developed in partnership with Mars, Inc.

A $300 million business and the No. 1 brand in the shelf stable pudding category, Snack Pack has benefited from licensing partnerships with brands across a range of categories, said Audrey Ingersoll, vice president, and general manager of sweet treats at Conagra. The company last year introduced Snack Pack Sour Patch Kids Juicy Gels in collaboration with Mondelez International.

“The candy-flavored treat is turning at the top of the category from a velocity standpoint, which shows the power of what co-branding can do,” Ms. Ingersoll said. “These products inject a ton of energy and modernity into the category.”

When it comes to consumer motivation, being exciting and experiential is a key driver for snack products, she added.

“A lot of the time, when you’re snacking, you aren’t actually hungry,” Ms. Ingersoll said. “You’re really just looking for something fun to eat.”

Co-branded flavors are driving growth across Conagra’s sunflower seeds business, too. The company is teaming up with Frank’s RedHot to introduce spicy hot sauce-flavored sunflower seeds under its David Seeds brand.

Data from Conagra show sales of flavored seeds are growing six times faster than original seeds. Co-branded flavors with licensed partners are outpacing overall category growth, with sales up 36% from last year.

Conagra’s seeds portfolio consists of the David Seeds and BiGS Seeds brands and recently surpassed $250 million in retail sales.

“When you think about David, it’s the original product, while BiGS has made a name for itself through licensing partnerships,” said Spencer Fivelson, vice president of snacks at Conagra.

He pointed to the brand’s newest flavor, Little Caesars Pepperoni Pizza, as an example. Other successful collaborations from BiGS include Taco Bell Taco Supreme seeds, Takis Fuego seeds, and Vlasic Dill Pickle seeds.

“These are powerful brand equities that consumers know and love, so when they see them in the store, it’s an instant impulse purchase,” Mr. Fivelson said. “David is an all-American brand, so we decided the biggest name in seeds should partner with the biggest name in hot sauce.”

Other co-branded products landing in convenience stores include spicy meat snacks from Link Snacks Inc., Minneapolis, featuring flavors from PepsiCo’s Frito-Lay portfolio. On display at NACS were Jack Link’s beef jerky in Doritos Spicy Sweet Chili and Flamin’ Hot flavors.

Philadelphia-based Frankford Candy and the Kraft Heinz Co. are teaming up to bring a lunchtime staple into the candy aisle with Gummy Lunchables Cracker Stackers and Gummy Lunchables Pepperoni Pizza Kit. The partnership also has seen Kraft Mac and Cheese and Oscar Mayer Hot Dogs receive the gummy treatment.

Gummy Lunchables offers a shareable and fruit-flavored reimagination of the original Lunchables products, said Molly Jacobson, director of business development at Frankford Candy. The cracker kit features eight gummy crackers and slices of gummy pepperoni, gummy ham, and gummy cheese. The pepperoni pizza kit includes gummy pizza crusts, cheese shreds, pepperoni slices, and one liquid pizza sauce packet.

“Consumers are increasingly interested in experiences with favorite food brands that they can share with family and friends, and gummy candy is on fire right now,” Ms. Jacobson said. “Lunchables is an iconic brand that was the first to allow people to build and eat a meal their own way. We think people will find that Gummy Lunchables are just as fun to play with as they are to indulge in.”  — Source: Food Business News.

 

 

Subway says its latest menu refresh is driving even more sales . . . .

The sandwich giant says its restaurants’ same-store sales rose 8.4% in the third quarter, with September particularly strong

Subway’s second straight menu overhaul is apparently paying more dividends.

The sandwich giant on Wednesday said that its same-store sales rose 8.4% in the third quarter, including a nearly 11% increase in the month of September when compared with the same period in 2021. The company cited strong performance from its “Subway Series,” a selection of a dozen new sandwiches that establish a new core menu for the company.

The sales represent a big win for the chain and come one year after its “Eat Fresh Refresh” helped it generate its strongest average unit volumes in eight years. On Wednesday, the Milford, Conn.-based company said its average unit volumes “consistently” exceeded weekly records established in 2012, when its $5 Footlong promotion fueled strong sales from hungry, value-focused consumers.

“The results from the Subway Series launch and the positive reaction from guests and franchisees demonstrates that our transformation strategy is working,” Trevor Haynes, president of Subway North America, said in a statement.

Same-store sales during the eight-week launch of the Subway Series rose 7.4%, the company said, when compared with the eight-week launch of 2021’s refresh.

But Subway’s numbers also highlight the continuing challenge for a certain percentage of its locations.

While Subway’s same-store sales rose 7.4% after the launch of the Subway Series, they rose “more than 12%” for the top 15,000 restaurants or 75% of the chain’s more than 20,000 locations.

That suggests that the bottom quartile continues to struggle, with same-store sales for those locations down 6.4%. Many of those locations are believed to be at locations such as Walmarts, on college campuses or in office parks and urban areas that continue to struggle with post-pandemic traffic challenges.

Office parks and downtown areas have been a particular problem for a number of chains as many people continue to work from home and overall commuting patterns have shifted.

Still, the overall growth represents a second straight year of sales growth for a group of restaurants that have long needed additional sales.

Subway’s average unit volume peaked in 2012 at $481,000. But its shift away from discounts and consumers’ shift toward other options resulted in several straight years of sales losses; unit volumes declined to a pre-pandemic low of $410,000 in 2017. The unit count fell along with it, from a peak of 27,000 U.S. restaurants in 2015 to just over 21,000 last year.

The company has sought to fix this problem for the past two years by upgrading its menu. Its initial refresh last year featured an upgraded procedure for breadmaking along with several improvements to ingredients. This year’s “Subway Series” sought to de-emphasize its reliance on customized sandwiches for its sales, which has often slowed ordering and given customers the ability to order items that diminish quality.

Customers order their sandwiches by name or number. Donna Curry, a multi-unit franchisee, said in a statement that its customers like the flexibility of the new ordering strategy, which has increased sales and traffic to its restaurants.

Last year’s refresh appeared to work. Average unit volumes were $434,000, the highest since 2014.

Subway in the coming months expects to make other changes, notably adding slicers to its restaurants to cut down on food costs while improving its perception of quality. That addition is expected to be in place by next summer.

The company has also found success in other ways, too, notably with a new “Footlong Pass” that sold out within hours. It is also introducing a new line of soups. – Source: Restaurant Business.

 

Domino’s Pizza reported mixed third-quarter results Thursday morning, Earnings per share missed Wall Street expectations . . . .

Domino’s Reports U.S. Same-Store Sales increase and stands by forecast for food costs Domino’s Pizza reported better-than-expected revenue for the third quarter and stood by its forecast for food costs, even though earnings fell short of estimates.

Shares of Domino’s were up 9% in morning trading.

In the U.S., the company said same-store sales rose 2% in the period. Domino’s had been struggling to meet the higher demand levels during the earlier days of the Covid-19 pandemic when people were hunkering down at home and order in more.

During its earnings call, Domino’s CEO Russell Weiner said the company will raise the price of its mix-and-match deal from $5.99 to $6.99 for carry-out purchases starting Oct. 17, after successfully hiking the price for the deal on deliveries.

“Our research showed we can do the same on the carry-out side,” Weiner said.

Toward the end of the third quarter, however, Weiner said Domino’s offered 20% discounts on that mix-and-match deal to signal solidarity with inflation-squeezed consumers.

The Ann Arbor, Michigan-based company also stood by its forecast for food cost inflation. In the previous quarter, the company had hiked its forecast for food costs to be up 13% to15% for the year.

Here’s how the pizza company performed compared with Wall Street estimates, according to Refinitiv:

Earnings per share: $2.79, adjusted vs. $2.97 expected.

Revenue: $1.07 billion vs. $1.06 billion expected.

Overseas, the company said same-store sales declined 1.8% in the third quarter when excluding the impact of foreign currency exchanges.

The company also said it sold 114 company-owned stores in Arizona and Utah to its franchisees for $41.1 million after the third quarter ended. It said it expects to record a gain from transactions in the fourth quarter as well as reduced costs from maintaining those locations.

For the quarter that ended Sept. 11, net income fell to $100.5 million, 0r $2.79 a share, from $120.4 million, or $3.24 a share a year ago. Domino’s attributed the drop primarily to a higher provision for income taxes and lower income from operations.

Domino’s has been hurt by rising costs and an ongoing shortage of delivery drivers that has dented sales. Shares of the Ann Arbor, Michigan-based company hit a 52-week low on Wednesday, trading at $299.41 per share. It traded as high as $567 within the last year.

Weiner warned of the macroeconomic environment during the earnings call, saying that the return of sit-down dining and inflation pressures may drive customers away from deliveries. Still, he noted that the company delivers around one out of every three pizzas in the U.S. today − similar to before the pandemic.  — CNBC.

 

Despite worsening pandemic conditions, 55 percent of loyalty customers grew their average check size more than the inflation of menu items.

Loyalty Programs Reach Record Levels in 2021 A growing number of casual-dining players recognize the importance of loyalty, no matter the size of their footprint.

IHOP, one of the largest full-service chains in the world, debuted the International Bank of Pancakes in March, allowing customers to redeem digital coins for exclusive rewards. Dine Brands, the parent of Applebee’s and IHOP, reported during its Q2 earnings call that after just four months, there were more than 2 million members, 30 percent of which were new to the chain. In April, the 52-unit Snooze, an A.M. Eatery rolled out a loyalty program of its own, entitled MySnooze Bennyfits. Customers have access to free meals, priority waitlist seating, special parties, and swag.

The “why” behind this trend is obvious. According to Paytronix’s 2022 Loyalty Report (data gathered from in-store and online transactions between January 2019 and December 2021), loyalty spending hit its highest level on record last year. Casual dining, fast casual, ice cream/snack/coffee, and Mexican/sandwich concepts each saw their best spend per guest of any year Paytronix has data. The programs lead to an 18-30 percent lift in visits and spending, and loyalty customers pay on average 6 percent more than non loyalty guests.

The top 2-3 percent of a total customer base makes up about 10 percent of loyalty consumers. These high-level guests spend two to three times more and account for 8 percent of total spending on average.

“The Paytronix Annual Loyalty Report shows that the potential of loyalty to build relationships between customers and their favorite brands has never been greater,” Lee Barnes, Paytronix’s chief data officer, said in a statement. “Between the ongoing generational shift and the critical importance of the top tier of 2-3 percent of guests, it has become increasingly clear that growing cadres of loyal customers are vital for the health of brands. And the loyalty members of convenience stores who visit daily show the potential of loyalty customers to visit more often.”

For full service specifically, restaurants saw an average of $328.88 spent per loyalty guest in 2021, which is a large jump from the $270.28 seen in 2020, and only a slight decrease from the $332.18 mark in 2019. The average number of visits per loyalty customer was 7.3 last year, compared to 6.7 and 8.2 in 2020 and 2019, respectively. Additionally, the average full-service loyalty member has become younger since pre-COVID. Baby boomers still account for the biggest segment, but their share sank by nearly 30 percent between 2019 and 2021. Gen X, older millennials (36-45), and younger millennials (26-35) saw drops between 2019 and 2020, but each saw a recovery in 2021. Gen Z (15-25) didn’t see any decline in membership across that timeframe.

Record-high inflation doesn’t seem to be having an impact either. Fifty-five percent of restaurant loyalty customers grew their average check size more than the price of the average item increased. Paytronix believes price jumps of more than 10 percent are the point that loyalty guests will no longer tolerate. For a frame of reference, restaurant menu prices jumped 8 percent in August year-over-year, the largest in 2022 thus far. Full-service meals rose 9 percent while quick-service menu prices soared 7.2 percent.

“The data collected through these programs—from member demographics to visit frequency to most popular menu items—is invaluable to any brand seeking to understand its guests better,” Paytronix said in its report. “This information can be leveraged to make strategic business decisions and market more effectively. It can also be interpreted with artificial intelligence to uncover hidden patterns and trends.” Source: FSR.

 

Murry’s Inc., a portfolio company of San Francisco-based private equity firm Encore Consumer Capital, has acquired Bake Crafters Food Co. Financial terms of the transaction were not disclosed . . . .

Murry’s Acquires Foodservice Baked Foods Provider Founded in 1989 and headquartered in McDonald, Tenn., Bake Crafters manufactures and distributes breakfast and other baked food products, primarily to the K-12 foodservice channel. The company’s products include pancake and waffle breakfast sandwiches, low-sodium bread, break bars, and french toast bites. According to the company, more than 420 million servings of its whole grain products were used in schools during the 2020-21 school year.

Murry’s, which Encore acquired in 2019, is based in Greenbelt, Md. The company makes frozen french toast sticks and bites that are sold into the private label retail and food service channels.

Jeff Ahlers was recently brought on board as chief executive officer of Murry’s. Prior to joining Murry’s in June, he was CEO of La Tortilla Factory in Santa Rosa, Calif. He also spent six years as president of ISB/Cottage Bakery at Ralcorp Holdings, and earlier he was a chief operating officer of Cottage Bakery. He spent many years as senior vice president of perishables at Safeway.

“I am pleased to bring Jeff on board to support the integration of Bake Crafters and the continued growth of Murry’s,” said Ira Mendelson, chairman of Encore. “Bake Crafters has been an important partner of Murry’s for over 15 years and I’m excited to see what we can accomplish working together.”

Kate Wallman, managing director of Encore Consumer Capital, added, “Bake Crafters represents a highly strategic acquisition for Murry’s. We’re excited to have completed this transaction and look forward to the next chapter of growth at Murry’s under Jeff’s leadership.”

Encore Consumer Capital has raised more than $600 million in equity capital and invested in over 35 companies in the consumer products sector. The private equity firm’s current and prior investments include food and beverage manufacturers and marketers (4505 Meats, Aidells Sausage Co., Ancient Harvest, Brownie Brittle, Full Sail Brewing, Lion Beverages, Mesa Foods, Murry’s, Navitas Organics, Tender Belly, Thanasi Foods, Van Law Foods), pet products companies (Open Farm Pet, ThunderWorks, Zuke’s) and personal care/beauty companies (Love Wellness, MyChelle Dermaceuticals, Supergoop!, tarte), and food distribution companies (Freshko Produce Services, Pint Size Hawaii, Tourtellot). The firm targets companies with between $10 million and $100 million in annual revenues. – Food Business News.

 

New Menu Items from Applebee’s, Krispy Kreme, and Burger King Spooky season is coming to menus across the United States as foodservice locations usher in the Halloween season. Applebee’s brought back two Halloween-themed cocktails, which are available for a suggested retail price of $6. “Getting in on the Halloween fun is just another reason for our guests to visit their neighborhood Applebee’s bar,” said Patrick Kirk, vice president of beverage innovation at Applebee’s. “With the return of our frighteningly delicious Spooky Sips, they can treat themselves to a wicked-good deal at Applebee’s. Hurry on in for a howlin’ good time.”

The Tipsy Zombie is made with Bacardi Superior, and the frozen Dracula’s Juice features both Patron Silver and Bacardi Superior.

Burger King is combining scary and spicy with the addition of the Ghost Pepper Whopper. The spicy burger features a grilled patty, spicy queso, jalapeño bacon, and ghost pepper cheese, piled on a toasted orange bun with black sesame seeds.

Krispy Kreme Inc. launched its “Krispy Skreme” donuts, which include four donuts celebrating the holiday. In the Krispy Skreme collection are the spooky spider donut, the scaredy cat donut, the boo batter donut and the neon orange sprinkle donut.

“When fans open the door on our haunted house custom box, they’ll ‘skreme’ with delight at all-new donuts that are perfect for celebrating everything that’s sweet about Halloween,” said Dave Skena, global chief brand officer for Krispy Skreme. Food BusinessNews.

 

The industry added 60,000 jobs last month but remains more than 500,000 jobs from its pre-pandemic levels. Wage growth increased, too . . . .

Restaurant Job Growth Picked Up in September

Job growth picked up at restaurants and bars last month as the industry continued its gradual employment recovery from the pandemic.

Food services and drinking places added 60,000 jobs in September and now employ 11.8 million people, according to new data from the U.S. Bureau of Labor Statistics released on Friday.

The industry remains more than 500,000 jobs short of where it was in February 2020, before the pandemic led restaurants and bars to cut employment by about 60%. While the broader economy has fully recovered from job losses from that era, restaurants and bars remain well below earlier levels.

Overall, the economy added 263,000 jobs in September and the unemployment rate inched down to 3.5%. Put it another way, restaurants added about one in every four jobs last month.

The job growth was stronger than many economists expected and is likely to keep the U.S. Federal Reserve raising interest rates at an aggressive level. It will also continue to put pressure on labor costs, which will likely worsen inflation.

Wage growth among nonsupervisory workers at leisure and hospitality companies rose 0.3% last month from August. Over the past year, wages in the industry have risen 8%, according to federal data.

The job growth at restaurants and bars has come as more operators report an easier time getting workers. Several executives in recent earnings calls suggested they were more likely to be fully staffed. Red Robin said that it was more than 90% staffed at the end of the second quarter, up from 82% three months earlier, according to a transcript of the company’s August earnings call on the financial services site Sentieo.

“We were essentially fully staffed at our GM position, which can only lead to further restaurant staffing improvement because these two things are highly correlated,” outgoing CEO Paul Murphy told analysts, according to Sentieo. – Source: Restaurant Business.

 

With enhanced off-premises programs now in place, there’s ample opportunity at hand…

Why Restaurants Could Score Big with Holiday Takeout this Year The holiday season has never been a blockbuster for foodservice the way it is for retailers, but operational shifts from the past two years could change that, at least incrementally. Covid forced operators to refine—or in some cases, create—off-premises systems. That legwork has already yielded fresh revenue streams, which could grow even more at restaurants offering special holiday carryout options.

“A lot of the ideas came because of the pandemic. And as restaurants, we learned very quickly that we’re not bulletproof and had to change up a lot of our models,” says chef Thomas Harvey, owner of the eponymous restaurant/market in Falls Church, Virginia.

Last year, the chef struck out on his own after four years at Tuskie’s Restaurant Group, whose properties range from café fare and pizza to upscale, farm-to-table dining. This past March, Harvey’s made its debut. For the first month, it operated as a fast-casual, but guests’ appetite for dine-in led to a full-service transition. Still, the retail arm remained an integral part of Harvey’s business model and now, with the holidays approaching, it’s adding a new layer to its off-premises program. Not only is the restaurant putting together special holiday baskets featuring wine, beer, meats, cheeses, and more, but it’s also cooking ready-to-serve sides.

“For the holidays, we’re going to bulk up our production,” Harvey says. “I’m going to make big batches of sides that people can buy from our location, things like stuffing and green bean casserole, mashed potatoes, big stocks of gravy—just classic and traditional sides with a little bit of a twist.” For example, the sausage stuffing features house-made brioche while the sweet potato mash incorporates porter beer.

As a small independent, Harvey’s has the benefit of flexibility and local clientele, but larger brands can also get in on the holiday action.

Unlike some chains in the elevated casual space, Maggiano’s already had takeout systems in place. Since the Great Recession, the restaurant has offered a “Buy One, Take One” promo in which dine-in orders from a selection of classic pastas include a second order to take home for $5. “Historically we have always performed well in carryout during the holidays because our food travels extremely well, is perfectly packaged and insulated, and is the same food quality that guests have come to expect from Maggiano’s,” says director of marketing Cami Lehmann. She adds that such orders increased at the height of the pandemic; now, the long-term goal is to grow the channel by enhancing off-premises execution, increasing the number of menu options, and ramping up marketing efforts.

In addition to offering its standard catering and delivery services during the holidays, Maggiano’s will also sell special carryout packages with large portions of popular items, like Mom’s Lasagna, Fettuccine Alfredo, chicken entrées, as well as salad and dessert, during the two weeks leading up to December 24. Then, the brand will transition to a similar package for New Year’s, with elevated mains like beef medallions and salmon paired with sparkling wine.

The larger portions were informed, in part, by the pandemic.

“We now have broadened our categories and packages to focus on family meal dining or smaller parties. We also offer wine and beer to-go (where legal) so that we can truly be a one-stop shop for dinner,” Lehmann says.

Both Maggiano’s and Harvey’s have the advantage of offering dishes that hold up well in transit and during reheating. For fine dining, however, carryout was always more of a challenge. That’s why D.C.’s Knightsbridge Restaurant Group traditionally poured its off-premises energy into its more casual concepts, like Bindaas (Indian street fare) and Sababa (modern Israeli cuisine).

But as the pandemic dragged on, Knightsbridge founder and CEO Ashok Bajaj observed an uptick in demand for fine dining fare from three- and four-star restaurants.

“During the last couple of years, people ordered food from Modena, which is an Italian restaurant, La Bise, our French restaurant, and Annabelle, which is a modern American restaurant,” he says.

Last December, Modena offered a three-course meal with options like marinated burrata, spice-crusted duck breast, and panetone for $75 per person. La Bise, which had only recently supplanted longstanding D.C. institution, The Oval Room, created its own version, with French-inspired dishes like winter squash soup, beef tartare, and a cheese plate with fresh honeycomb. The year before, Annabelle served a Christmas feast that included one locally sourced protein (prime rib, rack of lamb, or cured-on-site baked ham), five sides, and a Bûche de Noël or a cookie dessert, with portions for two people ($175) all the way up to six ($365).

Bajaj says the rules of off-premises carryout—at the holidays or any other time of year—are simple. “You’ve got to come up with a menu that travels well; that’s No. 1. And, No. 2, if the food needs to be reheated or [requires] something, give directions,” he says. “I think most restaurateurs and chefs already know how to do that.”

While Bajaj says Knightsbridge will continue with its carryout options, he hopes dine-in business will surpass off-premises this year.

As for Harvey, he sees the upcoming holiday season as a way to drive home the restaurant’s selection of market goods and carryout offerings.

“With this being our first holiday season, the goal is to push this market and side concept and really bring more of an awareness to the kinds of things we can do and make that a bigger part of our game plan going forward,” he says.  – Source: FSR.

 

The burger chain is debuting its new brand positioning with a “You Rule” tagline while giving a new take on its old “Have It Your Way” jingle. The burger chain is debuting its new brand positioning with a “You Rule” tagline while giving a new take on its old “Have It Your Way” jingle . . . .

Burger King Dusts off an Old Jingle and Reveals a New Tagline

Burger King’s modern brand position involves a new tagline and an old jingle.

The Miami-based burger chain on Thursday revealed a new tagline, “You Rule,” that will be the central element in its new brand positioning.

At the same time, the company released ads that feature a new take on its popular “Have It Your Way” jingle from its 1970s-era commercials.

The campaign is part of Burger King’s “Reclaim the Flame” plan, a strategy bolstered with a $400 million investment by the parent company, which includes $150 million in marketing and digital investments.

The company’s sales have fallen behind its competitors over the past four years. It is making investments in marketing, along with investments to help operators remodel restaurants, in a bid to reverse those trends.

The tagline “You Rule” is “about celebrating everyday royalty,” the company said, noting that customers are “at the forefront of everything the brand does.”

Burger King also hopes to tap into its historic brand equity with that jingle, which boasted about the company’s willingness to customize burgers based on consumer demands—something rival McDonald’s could not do at the time.

Burger King’s new creative agency, OKRP, developed the new campaign along with Burger King. “It embodies our purpose, embraces individuality, and elevates Have It Your Way, something our brand has always been known for, beyond pure customization,” Tom Curtis, president of Burger King North America, said in a statement.

Burger King’s “You Rule” campaign will roll out nationwide beginning Oct. 10. – Source: Restaurant Business.

 

Nancy Kruse: This month’s look at restaurant menu trends examines the popularity of the plant-based beverage, which also shines in more sophisticated items like cakes . . . .

Horchata Follows Churros Onto Restaurant Menus

Following on the heels of restaurateurs’ warm embrace of churros comes horchata, and it turns out that the two have more in common than simply their rising popularity on menus. Both were introduced to Spain by the Moors centuries ago, after which they made their way to Latin American countries. Each is easy to like and demonstrates a surprisingly broad menu bandwidth.

Churros, deep-fried treats finished with sugar and cinnamon, are popping up not only in sweet items but also in savory applications and in beverages, both alcoholic and non-. Horchata, a plant-based beverage whose formulation varies by country, is following suit. Most American diners are learning to love the Mexican variety, in which rice and water are combined, soaked overnight, and then strained to remove particulates. As with churros, the finishing touches are typically cinnamon and sugar, though many recipes add vanilla, some include almonds and others call for milk to enhance creaminess.

According to RB’s sister company Technomic, the beverage has enjoyed a slow but steady increase in menu mentions, climbing 5% in the past year and 17% in the last five. But these numbers do not reflect the range of creativity and versatility that have combined to move it up the charts. For consumers, it affords a refreshing, plant-based option with an appealing global pedigree, and for restaurateurs, it offers favorable food cost, easy prep, and ready promotability.

It’s sometimes served hot, but mostly it’s cold. While horchata is usually served chilled, some operators are adapting it for colder climates. For example, Chicago’s Xurro Churro Factory offers a warming Horchata Cappuccino perfect for that city’s long winters but also pairs it with iced coffee, nitro, and matcha versions. Numerous chains are using it in cold brews, like The Cha Cha at Tacodeli, Peet’s Horchata Cold Brew Oat Latte, and Starbucks’ Horchata Almondmilk Frappuccino which comes topped with whipped cream, a swirl of caramel and cinnamon and sugar sprinkles.

In Dallas, Cocoandré Chocolatier raises the profile of the basic beverage by dressing up the Cocoandré Plain Horchata with ingredients found in its celebrated line of handmade truffles, like pecans, mocha, matcha, marzipan, and strawberries. There’s also a clever Dirty Horchata made with a shot of espresso.

It’s blended or shaken, but not stirred. Fast-casual Juice It Up! just launched a pair of items, the PB Horchata Smoothie and the Blue Horchata Smoothie, that joins the original Horchata Smoothie and Horchata bowl that debuted last year. Pressed, which specializes in cold-pressed juices, goes blue, too, with its Horchata Azul. The blue in both items comes from spirulina, a dietary supplement considered a superfood by its consumers. While none of the above use dairy products, Jamba Juice’s Lotta Horchata contains fat-free vanilla frozen yogurt with almond milk and cold-brew coffee.

On the subject of what’s shaking, there’s the fun Oreo Horchata Shake offered for a limited time at Del Taco. It added cookie pieces and horchata syrup to the vanilla shake, a combination that, along with providing a nice fit with the chain’s larger food menu, made it the most successful shake offering of the last year.

It works well in cocktails. Horchata’s easy compatibility with other ingredients has boosted its use at bars. Laredo’s Grill in Seattle concocted a nifty Frochata that married horchata-flavored vodka, spiced rum, and house-made horchata. Served frozen, it nodded to the frosé craze. The El Vaquero chain of Mexican restaurants created a spirited CarajilloCocktail made with 100% agave spirits, horchata rum, and coffee. Diners who really wanted to indulge could add a scoop of vanilla for a Carajillo Float.

This past winter, Old Chicago Pizzeria, and Taproom sold some White Lies made up of vodka, Rumchata horchata liqueur, heavy cream, and simple syrup. BuzzBallz, which made a splash at the most recent NRA Show with a broad line of premade cocktails, suggested a double-barreled combination of the Horchata and Choc Tease Cocktails. Perhaps inevitably, the website has posted a recipe for a Horchata Spiced Pumpkin Cocktail with pumpkin purée and coconut milk. Because, how could they not?

And it plays well in foods, too. Horchata is gaining popularity as a food ingredient, as Voodoo Doughnut’s Hole Lotta Horchata Doughnut put horchata custard on the inside and cinnamon sugar on the outside. By contrast, Salty Donuts takes a brioche doughnut that is soaked in horchata and encrusts it in chocolate. The latter brand also collaborated with Salt & Straw Ice Cream Shops on a limited-edition donut-infused Horchata Donut Ice Cream.

La Newyorkina’s mission is to “share the sweetness of Mexico,” with the Big Apple, which it accomplishes with Horchata Ice Cream, Paletas, and Mini Paletitas, or ice cream pops. Speaking of icy delights, Baskin-Robbins’ Horchata Ice Sorbet with coconut cream appeals to vegans, as does the new Cinnamon Horchata with almond milk at Menchie’s Frozen Yogurt.

Then there are Dirt Dogs, which dishes up “the official hot dog of Los Angeles” and where patrons can choose from a wide assortment of hot dogs, followed by a choice of creative desserts like Horchata Ice Cream with vanilla bean ice cream, house-made horchata syrup, Rice Krispies and almonds topped with a churro; Fried Oreos with horchata whipped cream; Crunchata Cheesecake made with horchata syrup, and a Deep-Fried Twinkie with a side of horchata whipped cream. In the Las Vegas units, these can all be chased with Deez Nuts, a shooter made of Rumchata.

It also shines in more sophisticated items. In Jacksonville, FL, Black Sheep, a modern American restaurant, stepped up with a seasonal and thoroughly modern Pumpkin Horchata Panna Cotta with almond and crispy crunchies, peach compote, and pomegranate. A picture-perfect Horchata Tres Leches at Chicago’s celebrated Frontera Grill consisted of cake infused with 3 “milks” (almond, rice, coconut), plus mango-mint salsa, toasted meringue, coconut Alegria. Also in Chicago, the opening menu at Adorn Restaurant grabbed attention with breakfast fancies like Teeny Tiny Croissant Cereal with house horchata.

Finally, nothing provides a sweeter ending than a kiss, so the pastry chefs at Xochi, part of Houston’s award-winning H Town Restaurant Group, delight diners with Besos de Chocolate for Valentine’s Day. The Oaxacan-inspired treats started with house-toasted-and–ground cacao beans, and the resulting chocolate was filled with heart-winning flavors like Strawberry Horchata and Champagne Caramel Rosé in a memorable, madly Instagrammable presentation. – Source: Restaurant Business.

 

Retail food and beverage price increases are finally beginning to slow, according to data from IRI . . . .

Price Inflation Slows for First Time This Year While prices in September were 13% higher than the same time last year, they did not grow significantly from July to September. The market research firm said the flattening price curve is a noticeable deviation from the consistent increases between January 2022 and July.

Year-over-year prices in perimeter categories like produce and deli have steadily declined since February, though September 2022 prices were still up 9.6% compared with September 2021.

Prices for center-store categories continue to rise compared with the same period last year, however, with frozen meal and dairy costs up 18.4% and 19.6%, respectively.

“September data revealed some welcome news for consumers: price inflation is slowing down for the first time this year in the perimeter categories that account for nearly $200 billion in annual retail sales,” said Krishnakumar Davey, president of thought leadership for IRI. “However, overall grocery bills are still significantly higher than this time last year, causing shoppers to shift their purchase habits.”

Consumers are bargain hunting, shifting to larger pack sizes, and steering clear of highly inflated categories to avoid large grocery bills. The change in behaviors resulted in decreased sales volumes for inflated categories like canned/bottled fruit, frozen dinners, and shelf-stable dinners, each of which declined more than 10% in September.

Quick trips to the store also have become more popular, up 5.7% in the last 12 weeks compared with the same time last year, indicating that consumers are choosing to cherry-pick products across different stores to get the best deals. – Source: Food Business News.

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