Chipotle seeks to hire 15,000 restaurant workers ahead of busy spring months . . . .

Chipotle Mexican Grill is Seeking to Chipotle Mexican Grill is seeking to hire 15,000 restaurant workers ahead of its busiest time of the year, which runs from March to May

In recent months, restaurants have found it easier to attract and retain workers, a reversal after the labor crunch that ensued after pandemic lockdowns. However, the sector has always had high turnover, and restaurants are still concerned about having enough employees to meet demand, even as some consumers pull back on going out to eat amid persistent inflation.

And while layoffs have hit white-collar workers, primarily in the tech industry, low-wage retail and restaurant workers haven’t faced any large-scale cuts. The unemployment rate for eating and drinking places was 5.2% in December, down from the pre-pandemic rate of 5.7%, according to Labor Department data.

Chipotle’s Chief Restaurant Officer Scott Boatwright said in a statement that the company will keep hiring to support its “aggressive growth plans.” Nearly a year ago, the chain revised its long-term outlook for unit growth. It’s now aiming to double its store footprint to 7,000 locations eventually, up from a prior target of 6,000.

Chipotle said that it’s working on improving and speeding up its hiring process. To attract and retain workers, the company offers benefits like free meals, tuition reimbursement, debt-free college degrees, access to mental health care, and an all-crew bonus worth an extra month’s pay each year.

Chipotle has more than 100,000 employees currently.

The burrito chain is expected to report its fourth-quarter earnings after the bell on Feb. 7. – Source: CNBC.

Chick-fil-A is targeting a second

Little Blue Menu first opened in late 2021 in Nashville and now includes two restaurant brands – Outfox Wings and Because, Burger . . . .

Little Blue Menu virtual kitchen this year

Chick-fil-A jumped into the virtual restaurant space in late 2021 with a delivery-only concept in Nashville called Little Blue Menu. The concept initially offered a variety of menu options across three virtual restaurant brands – Garden Day, Flock & Farm, and Outfox Wings.

Little Blue Menu has since evolved, as most pilot locations tend to do. Now, the prototype, which is overseen by three Chick-fil-A operators, includes two brands – Outfox Wings and Because, Burger. Customers can bundle their orders from these two brands, as well as from Chick-fil-A’s menu. According to a company blog post, Chick-fil-A plans to open a second Little Blue Menu location this year in College Park, Maryland.

In an emailed statement, the company stated, “The team at Little Blue Menu, an affiliate of Chick-fil-A, Inc., is always looking for innovative ways to serve our customers. We’re in the early stage, but we’re happy to share that we are pursuing an exciting new opportunity in College Park, Maryland. The location will offer the classic Chick-fil-A menu, Because, Burger, and Outfox Wings, as well as new menu items. We look forward to sharing more with our customers soon.”

Outfox Wings’ current menu includes smoked, roasted, traditional bone-in wings, and classic fried chicken. Because Burger was added to Little Blue Menu’s portfolio last April and included five different burger variations. Both virtual brands offer traditional fries, versus Chick-fil-A’s signature waffle fries. However, there is a crossover on some sides with the parent brand, including mac and cheese and kale salad. Outfox and Because, Burger also shares a few side items, including brussels sprouts, sweet potato tots, onion rings, Outfox biscuits, and two desserts. According to Chick-fil-A, both menus were created from scratch.

The Little Blue Menu pilot continues, and more changes could be made based on customer feedback, the company notes. A survey is prompted for selected guests at the completion of an order. Both Outfox Wings and Because, Burger is available via Chick-fil-A’s app, as well as DoorDash within an approximately 10-minute delivery radius. Pickup is also available.

Notably, Nashville is also home to Chick-fil-A’s first delivery-only facility, which opened in 2018 – well before the pandemic-induced acceleration of digital ordering and virtual restaurants. That location continues to serve delivery and catering orders, and also houses Little Blue Menu’s kitchen. According to Chick-fil-A, the company’s digital sales grew to more than 40% of the business in 2021.

The Little Blue Menu name is a nod to Chick-fil-A founder S. Truett Cathy’s original blue menu at his first restaurant, called Hapeville Dwarf House. – Source: NRN.

The newly introduced proposal would go further than the Fast Act in some respects, such as requiring instruction from what sounds like unions . . . .

Bill Introduced in Virginia that would Mimic California’s Fast Food Law

As restaurant industry groups warned, California’s controversial new model for setting fast-food wages and working conditions has been introduced in another state.

The proposal in Virginia’s House of Delegates goes farther in some respects than California’s Fast Act, which is on hold until the first-of-its-kind law is put to a referendum vote in November 2024.

For instance, the Virginia bill sets training mandates, including a requirement that all fast-food workers take a one-hour course every six months on employee rights and protections. That instruction would be led by what the bill terms “a certified worker organization,” or what sounds like a union.

Fast-food employers would be required to provide proof that every employee has taken the course, and to pay the enrollees for the time they spend in the training sessions.

The employers would also be obligated to give the certified worker organization the names of each enrollee in the courses, along with their contact information. The only exceptions would be workers who expressly ask their employers not to provide those details.

But the political climate in Virginia is much different than the situation in California, hands-down one of the union’s most liberal and pro-labor states. California Gov. Gavin Newsom enthusiastically signed the Fast Act into law on Labor Day to make the point that he’s pro-union.

Virginia’s governor, Glenn Youngkin, is one of the nation’s most conservative state leaders. The Republican is much less reliant on labor’s support.

In addition, the House of Delegates is controlled by Republicans. The only lawmaking body under Democratic control is the state Senate.

But some in the industry have raised concerns that a proliferation of Fast Act-like bills could spread the industry’s lobbying resources too thin. Just defeating the Fast Act via the 2024 referendum is expected to cost many tens of millions of dollars.

Like the Fast Act, the Virginia bill would create a state council with the power to determine wages and working conditions for employees of Virginia fast-food restaurants that are part of a chain of at least 100 units. The panel would include four fast-food workers and four quick-service employers, along with a number of state officials, including either the governor or a member of his cabinet.

The measure also copies the Fast Act provision that allows any municipality with at least 2,000 residents to set up its own council.

McDonald’s USA President Joe Erlinger cited the Virginia proposal as yet another warning of “what our future could look like” if the Fast Act isn’t scuttled and copycat measures aren’t quashed. “This threat is real,” he wrote in a blog posted on the burger giant’s site.

“If you see special-interest legislation like this coming your way, workers, consumers, and small business owners need to unite and demand better,” Erlinger wrote.  -Source: Restaurant Business.

Tyson Foods, Inc. plans to invest more than $20 million into the Newbern, Tenn., community with expansions to production capabilities, a wellness center and construction of an independent roadway for production transportation . . . .

Tyson Foods Investing $20 Million in Tennesse

The first phase of the project started in April 2021 with a 21,000-square-foot expansion to an existing barn facility, with a completed total of 60,625 square feet.

The expanded space provides a 20% increase in capacity at the facility which employs more than 600 workers.

“This project has already proven to be instrumental to facility performance as we continue to meet increased demand for our Jimmy Dean, Hillshire Farm and other category-leading products,” said Stewart Glendinning, president of prepared foods for Tyson Foods.

The company said the final two phases of the project are underway, with expected completion by early 2023. A new independent roadway with a guard shack will create separate access for transporting livestock to the facility, enhancing safety measures.

Additionally, a new well-being building, complete with office space, conference area, break room, restrooms, and changing rooms, will be available along with other amenities.

“I’m thrilled to celebrate our investment in our Newbern Prepared Foods plant with our hard-working, dedicated team members,” said Stan Welch, plant manager at Tyson Foods. “These improvements reaffirm our dedication to the broader Tyson Foods mission to produce quality food products and strive to be the most sought-after place to work.”

Tyson Foods finished two other major poultry projects in Tennessee in recent years. – Source: Food Business News.

Tortilla Equipment Maker Investing $30 Million in Tennessee

JC Ford Co., a manufacturer of high-speed corn tortilla production equipment, has announced plans to invest $30 million to renovate two existing facilities and create 210 new jobs in Maury County, Tenn., over the next five years.

JC Ford’s high-speed corn tortilla production equipment can turn out products in a range from 1,000 to 8,000 dozen per hour. Meanwhile, the company’s tortilla chip production lines range from 250 lbs per hour to a completely automated 4,000-lbs-per-hour system. The company also offers production equipment for flour tortillas, tacos, and tortillas.

“JC Ford has been very impressed with the strong support that we have received from the local and regional communities to expand our operations to Columbia, Tenn.,” said Scott Ruhe, president of JC Ford. “We look forward to working with this high-growth region and attracting the very best talent from the area’s strong manufacturing workforce. We are committed to accelerating our business over the next few years, providing high-quality jobs to the region, and investing in the community.”

Headquartered in La Habra, Calif., JC Ford joins a growing list of West Coast-based companies that have begun setting up operations in Tennessee, said Bob Rolfe, commissioner of the Tennessee Economic and Community Development.

“JC Ford will be geographically well-positioned for distribution and will benefit from our low cost of doing business and strong manufacturing workforce,” Mr. Rolfe said. “We thank JC Ford for choosing Columbia, and we look forward to building a partnership with the company in the years ahead.”  Source: Food Business News.

Employees of KFC restaurants are now eligible for free college tuition at Western Governors . . . .

KFC Restaurant Employees Now Eligible For Fully Paid Tuition At Western Governors University

The KFC Foundation has announced that it will partner with Western Governors University (WGU), one of the nation’s leading online universities, to offer KFC restaurant employees completely paid tuition for attending WGU to earn their college degrees.

With the new partnership, KFC restaurant employees will be able to choose among more than 60 different bachelor’s and master’s degrees and certification programs offered by WGU across the fields of business, information technology, education, and healthcare.

The new program is non-competitive so every eligible employee who applies and enrolls will be able to receive tuition coverage. KFC restaurant employees will have access to the new education program from their first day on the job. Because WGU, which specializes in competency-based education, offers rolling start dates every month, restaurant workers will be able to enroll in WGU’s online courses as soon as they’re ready. “Every year we look for new ways to support and enhance the lives of KFC restaurant employees,” said Emma Horn, Executive Director of the KFC Foundation. “What better opportunity to be able to offer team members than a flexible college degree program from Western Governors University that can fit seamlessly into their schedule. The program at WGU is perfect for someone who may not have enough hours in the day to balance a traditional college experience on top of a full- or part-time- job and other life priorities.”

To be eligible for the KFC Foundation’s programs, employees must be in good standing at a KFC restaurant participating in the KFC Foundation’s Annual Franchise Donation Program. And they must maintain their employment to stay eligible for the programs.  – Source: Forbes.

Friday’s is the latest full-service chain to add a bargain offer amid fears that inflation-weary customers are trading down . . . .

T G I Friday’s Unveils 3 Course Meal Deal As Value Meals Continue

TGI Fridays is courting couples looking for an affordable night out.

The casual-dining chain on Wednesday unveiled a new three-course meal deal for two that promises lots of food at a bargain price. The Fridays Feasts come with an appetizer, two entrees, and dessert for $28, $38, or $48.

Fridays joins a growing list of sit-down chains promoting value amid fears that inflation-weary guests could be shifting to lower-priced options.

“With Valentine’s Day right around the corner, this delicious three-course meal is the perfect way to celebrate with someone you love without breaking the bank,” CMO Brandon Coleman said in a statement.

Dining out, along with just about everything else, has gotten more expensive over the past year, particularly at sit-down restaurants. Full-service menu prices were 8.2% higher in December than they were a year ago, compared to 6.6% for quick service, according to the Bureau of Labor Statistics.

Restaurants have had to raise prices to keep up with their own soaring costs for food and labor. And while many have said they’ve seen little pushback from customers, a number of full-service chains are adding value options in hopes of appealing to more price-sensitive guests.

Olive Garden, for instance, brought back its popular Never-Ending Pasta Bowl deal. Denny’s introduced a $5.99 All Day Value Menu in September, while Red Robin pushed a $10 Gourmet Meal Deal. Red Lobster ran an endless shrimp promotion in the fall and even axed some of its priciest items.

“Consumers, they are looking for the value proposition,” said Ludovic Regis Henri Garnier, CEO of Red Lobster owner Thai Union Group, during an earnings call in November. “So we are taking away from the menu some very expensive items, and we’re trying something which is attractive also for the customers.” His comments are courtesy of a transcript from the financial services site Sentieo.

For many, the strategy has paid off. At Olive Garden, sales and traffic improved significantly during the seven-week Pasta Bowl promotion. Denny’s value offering has also proven popular: Bargain options accounted for more than 14% of its third-quarter sales and aligned with a boost in traffic, CEO Kelli Valade said during an earnings call in November.

“We probably brought a few more guests in,” Valade said, according to a Sentieo transcript. “We saw that change pretty quickly, and we’re pleased with that.”

At the same time, brands have been careful not to give away too much. Some have adopted a so-called barbell strategy, pairing lower-priced options with more premium, limited-time offers.

At Denny’s, “we were able to balance guest check average by merchandising in-restaurant with higher menu, higher margin play,” Valade said.

Red Robin, meanwhile, offset its $10 burger deal with a pair of limited-time Cheese Lovers burgers priced at $15.99.

“How do [customers] want to spend whatever discretionary income they have?” former CEO Paul Murphy said in explaining the strategy in June.

TGI Fridays’ offer takes a similar approach by offering a variety of items and price tiers, with an emphasis on abundance.

Guests get their pick of an appetizer—Mozzarella Sticks, Pan-Seared Pot Stickers, Spinach and Artichoke Dip, or Loaded Southwest Potato Twists—and two entrees from three tiers:

Feast Tier ($28): Fettuccini Alfredo with Chicken, Cheeseburger, or Caesar Salad with Chicken.

Feastier Tier ($38): Fridays Signature Whiskey-Glazed Burger, Fried Shrimp, Million Dollar Cobb with Chicken or Cajun Shrimp & Chicken Pasta.

Feastiest Tier ($48): Fridays Big Ribs with choice of sauce, Sizzling Whiskey-Glazed Flat Iron Steak, Crispy Whiskey Combo, or Twin Lobster Tails.

Dessert is the Brownie Obsession, a chocolate brownie topped with vanilla ice cream, chocolate fudge, caramel sauce, and chopped walnuts. The deal is available for a limited time.  – Source: Restaurant Business.

The latest wave is all about heritage ingredients, vibrant plating, and oodles of flavor . . . .

MICHELIN Chefs Dish on the Korean Cuisine Craze

The hottest trends in beauty, film and tv, and music across the United States have one thing in common: they’re Korean. It’s been just over a decade since Hallyu 3.0, or the third Korean Wave, swept the country and Canada solidifying the desire for K-Beauty, K-Dramas, and K-Pop. However, the latest export taking the nation by storm is K-Food.

Dr. Jooyeon Rhee, an associate professor of Asian studies and comparative literature at Penn State University, says hallyu is no accident. “The Korean diasporas have played a huge role in maintaining and developing Korean cuisine for a long time,” says Dr. Rhee. “[They] built the infrastructure in the form of grocery chains, restaurants, and even growing vegetables, as seen in Minari, that became crucial to meet the growing demand.” Echoing this sentiment are some of the MICHELIN Guide chefs behind some truly stunning and visionary Korean meals. Below, we hear from them about the rise of K-food, why they think it’s so popular, and the future.

Douglas Kim, chef/owner, Jeju Noodle Bar in NYC

I was born in Namwon, Korea, and came to the United States in 1994. The town I grew up in was surrounded by mountains. We always had meat and mountain vegetables, but we didn’t have easy access to seafood. I try to take inspiration [from] my childhood and turn it into our own dishes, but I also went to culinary school and worked at a French restaurant, so it’s a here and there.

My first job in New York in 1999 was at Nobu Downtown in Tribeca. I was shocked that this contemporary Japanese cuisine was so popular. I thought, why don’t Korean restaurants have this reputation? My goal was to promote Korean food, and my career was built on that. So I’m surprised Korean food is so popular, but in a way I was planning for it.

I think the popularity of K-pop, K-dramas, and K-beauty has helped a lot, but also it’s something else. When I went to the Culinary Institute of America in 2004, there were very few Korean students [among them Yim Jung Sik of Jungsik; Sungchul Shim of Kochi; Eunjo Park, formerly of Momofuku Ssäm Bar; Max Soh of Oiji Mi.] Back then, even in Korea, the culinary scene wasn’t like it is now. Some CIA students, [like Eunhee Kim of The Green Table] went back to Korea. All these Korean chefs probably had a goal similar [to mine]: to promote their own food. As Korean chefs, how can we maintain these demands for Korean food?

Beverly Kim, chef/owner, Parachute in Chicago

I grew up eating a lot of Korean food because my mother was a great cook. So many dishes on Parachute’s menu were inspired by this, but perhaps with more modern finesse. For example, the yukhaejang spicy brisket soup, the harmful pajeon (seafood pancake), the 30-day aged Slagel farm sirloin pulkogi, and the grilled mackerel, are all inspired by dishes I had growing up at home.

I’m so happy that Korean food is now popular in the US. When I was growing up in the ’80s and ’90s, there was a lack of awareness surrounding Korean cuisine and culture. I remember being embarrassed and made fun of because of the different aromas and ingredients in Korean cuisine. Even in the 2000s-2010s, it wasn’t as widely known as other Asian cuisines. This might be a paradoxical answer: I’m not surprised [Korean cuisine is so popular] because it is such a delicious cuisine to me, but I am surprised by its popularity in comparison to the times I grew up in.

iMJ Jeong, chef/owner, 156 Cumberland in Toronto

I grew up in Yeosu, a small town in the Southern part of Korea. It’s an oceanside town so there was always a lot of fresh seafood. My favorite home-style dish is seolleongtang, which is ox bone soup. The broth is made by simmering ox bones, cartilage, brisket, and other cuts and seasoning with salt, pepper, and green onions. It’s perfect to enjoy on a cold winter day. We don’t have this on our current menu but it may be an inspiration for a future dish!

When I first moved to Canada in 2014 to attend culinary school, Korean restaurants were mainly targeted toward Korean guests. It seemed most [non-Korean] people were not familiar with the Korean food culture. I knew that Korean food had so much potential and would be enjoyed by all cultures. I wanted to present Korean cuisine in a way that was approachable and familiar, and I wanted to create dishes that were unique and added fun twists to traditional Korean dishes.

When we first opened, we had mostly non-Korean guests. I think Koreans lean more towards authentic, traditional, and homey Korean dishes, but recently we’ve had more Korean guests; it’s always good to see them be surprised to see something very familiar yet very different. It creates for a fun dining experience.

Um.ma chef Chris Oh. Photo courtesy of Chris Oh

Chris Oh, chef/owner um.ma in San Francisco

I ate a ton of Korean food growing up. Literally, every meal was Korean or had a hint of Korean. Even for Thanksgiving, there was always a bowl of kimchi on the table! My favorite dish growing up was galbi jjim also known as Korean braised short ribs. This was always a special occasion meal and made the house smell so good. My mom use to make so much so we could have it for days after.

We have a very diverse crowd coming into the restaurant, which was [our] goal, but it’s always nice to see other Koreans come in and praise the food because they are definitely our toughest critics!

If anything, I’m surprised it took this long for Korean food to become so popular. Korean food is so unique in so many ways, from the ever-so-popular tableside Korean barbecue to soul-warming soups. I feel like the popularity of Korean food, K-pop, K-dramas, etc. have all mutually benefited from each other.

William Choi, co-owner, Hangawi in NYC

I grew up in Seoul eating primarily Korean food. My mom was a great cook and our family always had gatherings where my aunts and cousins came to our house to cook together for family reunions. Because meat was expensive when I was growing up, we had many vegetarian dishes at our family gatherings. Our menu at Hangawi is inspired by my recollections of these family gatherings.

Dishes like jap chae (vermicelli noodles with vegetables and mushrooms), sanchae bibimbap (bibimbap or stone bowl rice with mountain greens), pajeon (Korean pancakes), hobakjuk  (pumpkin porridge), tteokbokki (spicy rice cakes), kimchi jjigae (kimchi hot pot) all inspired our plant-based menu at Hangawi.

When we opened Hangawi in 1994, we were perhaps one of the few Korean restaurants that were known to Americans. This was because of our deliberate efforts to market our restaurant to Americans not only as a Korean-inspired restaurant but a plant-based restaurant.

The rise of hallyu (the Korean Wave) that began around 2010, ignited by the Korean music and entertainment industry, has made Korean food very popular. If you visit 32nd St between Broadway and 5th Ave in Manhattan on any Friday or Saturday evening, you’ll see many young people enjoying Korean food and nightlife.

Ellia and JP Park, owner and chef/owner at Atomix and Atoboy in NYC

Both JP and I grew up in Seoul. The foods of my [JP’s] childhood and the memories associated with them have influenced many of our dishes. One that comes to mind are the sets of banchan (Korean side dishes) my mother would make when we were growing up. Banchan is typically prepared to be enjoyed for multiple seatings. It’s easily enjoyed again alongside a warm bowl of rice and sometimes consumed on a bed of noodles, or often paired with another banchan. The balance of flavors experienced through banchan’s versatility and its various combinations of flavors attributed greatly to [our] food at Atoboy and Atomix.

JP: I enjoy cooking with an abundant variety of seaweed. Gim (Korean laver), a favorite of mine since childhood, is a pantry staple as well as miyeok, tot, and maesaengi, which can be incorporated into various soups, banchan, and with rice.

Ellia: I recall being mesmerized when Psy’s “Gangnam Style” came on the radio when we first moved to New York about 10 years ago. These days, Korean culture’s influence goes well beyond K-pop, with impact and recognition being made in film, fashion, and art. For this we are grateful, as it certainly contributes to increased interest in our restaurants. We contemplate daily [on how] to ensure the betterment of our restaurants and [how] to be at pace with the continued growth and evolution of Korean culture. – -Source: Michelin Guide.

THE CLASSIC CHAIN TAPPED INTO THE DIFFERENTIATORS THAT MADE IT GREAT IN THE PAST . . . .

Rethink the Rebrand: How On The Border Got its Mojo Back

Rebrand. It’s a word that can create both fear and excitement, especially for those in the restaurant industry. There are so many things that will run through your head when you think about tackling an initiative this big. Where do we start? How will our fans feel about this? Is this the right move for us? It’s only natural to feel anxious about making the choice to revamp your brand, but if done right, you can create an end result that’s even stronger than before.

Building Your Dream Team

At On The Border, we started our rebrand—or as we like to call it, rethink initiative—about two years ago when Tim Ward was hired on as our new CEO. He offered an objective view of the brand and encouraged us to prioritize the areas that needed the most shake-up and improvement. We started with a revamp of the menu, as well as restructuring the way we operate our restaurants to bring back On The Border’s signature fiesta service and elevate our Tex-Mex food with bold flavors and top-quality ingredients. We aligned that we would evolve and grow by embracing the things that made us great in the past.

In addition to Tim’s support, there were several other key members of our team who helped drive this initiative. Our Director of Culinary, Daniel Camp, is one of the best chefs in the country, so I knew I could trust him when it came to revamping and improving our menu. I brought in our current Vice President of Marketing, Suzie Tsai, to the team, who I had known for 15-plus years and also had a deep trust and understanding. She kept me grounded and focused on our goal. Ed Jarvis, our Vice President of Operations and 20-year veteran of On the Border, was also an incredible help throughout the process. He was a knowledgeable resource who partnered with me throughout the project.

Without a strong support team, it would have been nearly impossible to accomplish such a monstrous task. As with any large initiative or project, it’s vital to have input from people who have different talents, strengths, and perspectives from you to ensure you’re hitting the mark across the board. I highly recommend that before any company launches a rebrand, they recruit a task force or committee with team members from different departments, and backgrounds and who have different experience levels. This will not only help divvy up the work but will ensure that each element of the rebrand goes through several different filters and better guarantees that the end product is one that will resonate with current, former, and future guests.

The Payoff

Prior to launching rebrand initiatives, it’s important to set specific, trackable goals to measure the effectiveness of the changes that were made. At On the Border, our overall goal was to better our guest, employee, and franchisee experience and increase sales and traffic. I can’t say that our rethink initiative paid off immediately—it certainly takes a bit of time before you see significant improvements from a rebrand. But by now, our metrics have shown that the changes we made have been met with a lot of positive feedback. Guest perception is up, along with an increase in sales—our average check total alone went up about 10 percent. We’ve had significant traffic increases, and we’re outperforming the Casual Dining Category.

In addition to the sales and guest perception, we’re thrilled to be in a place where we can confidently focus on expansion through franchising. Throughout the rebrand, we wanted to ensure that the changes we made would help support the success of existing and future franchisees. We also wanted to offer a franchise opportunity worthy of the fantastic brand and product we know we offer. Since putting a stronger focus on our franchising efforts, we’ve seen a lot of interest from qualified industry professionals and are incredibly happy to be opening even more franchise locations in the U.S. and abroad.

While all of these outcomes have been fantastic, it doesn’t mean that our journey to improve and evolve at On The Border is over. We’re all creatures of habit, so when you have brand veterans that have been with a company for years, it’s not always easy for them to adjust to change or understand why a change was needed in the first place. It often takes a lot of repetition to help others see and buy into the vision. And, we’re constantly learning and making tweaks to the plan based on the outcomes we’re seeing based on consumer feedback. In order to be a successful, relevant brand, you need to be fluid and flexible.

Rebranding—or rethinking—can be one of the most intimidating tasks to take on as a professional. Every question you ask yourself has been asked by countless others who were in the same position you have. The most important thing is to stay grounded in your goal, listen to your guests, and stay focused on the finish line. With the proper team and the right amount of confidence, you can come out of the initiative better than ever before—just like we have at On The Border.  – Source: FSR

Genghis Grill enters 2023 with a healthy serving of momentum behind it . . . .

Genghis Grill Enters 2023 with Momentum, Sights Set on Growth

Stocked with the 24 signed agreements it inked in 2022 and 23 locations already in various stages of franchise development, the brand is positioned for milestone growth.

“There has never been a more exciting time to be a part of Genghis Grill,” says Gregg Majewski, CEO of Mongolian Concepts, the brand’s ownership group, which is also behind Flat Top Grill and BD’s Mongolian Grill. “2022 was a transformative year for our brand and we are in the perfect position to continue this upward trend in 2023.”

Known for its freshly prepared, nutritious menu, Genghis Grill conquered 2022’s unpredictable restaurant industry environment to drive a 3.3 percent increase in same-store sales across its 31 corporate locations nationwide. The success of Genghis Grill is in large part based on its ability to adapt and constantly innovate. Focused on modernizing its operations and menu, the brand is now positioned at the leading edge of culinary trends. In November, Genghis Grill unveiled its reimagined VALUEBOWLS lineup, which it curated for fans with a focus on value, quality, and variety. Shifting away from strict customization to more chef-prepared menu items, including the new VALUEBOWLS lineup, Genghis Grill will roll out this year across the country six fresh, quick bowls all under $8, which make a total of 20 new bowls that are all attractively priced under $10.

“The most rewarding part of my work is rethinking how we can deliver even more value and loyalty. Genghis Grill’s new menu offerings are indicative of the brand’s evolution and unquestioned strength in the restaurant industry,” said Genghis Grill’s Vice President of Culinary, Becca McIntyre on crafting the 18 new menu items. “The all-new Genghis Grill menu we created offers a renewed take on how restaurants can stay current with what consumers demand today – fresh, full of taste, healthier, affordable, and convenient.”

Genghis Grill enters 2023 with a healthy serving of momentum behind it. Stocked with the 24 signed agreements it inked in 2022 and 23 locations already in various stages of franchise development, the brand is positioned for milestone growth.

“There has never been a more exciting time to be a part of Genghis Grill,” says Gregg Majewski, CEO of Mongolian Concepts, the brand’s ownership group, which is also behind Flat Top Grill and BD’s Mongolian Grill. “2022 was a transformative year for our brand and we are in the perfect position to continue this upward trend in 2023.”

Known for its freshly prepared, nutritious menu, Genghis Grill conquered 2022’s unpredictable restaurant industry environment to drive a 3.3 percent increase in same-store sales across its 31 corporate locations nationwide. The success of Genghis Grill is in large part based on its ability to adapt and constantly innovate. Focused on modernizing its operations and menu, the brand is now positioned at the leading edge of culinary trends. In November, Genghis Grill unveiled its reimagined VALUEBOWLS lineup, which it curated for fans with a focus on value, quality, and variety. Shifting away from strictly customization to more chef-prepared menu items, including the new VALUEBOWLS lineup, Genghis Grill will roll out this year across the country six fresh, quick bowls all under $8, which make a total of 20 new bowls that are all attractively priced under $10.

“The most rewarding part of my work is rethinking how we can deliver even more value and loyalty. Genghis Grill’s new menu offerings are indicative of the brand’s evolution and unquestioned strength in the restaurant industry,” said Genghis Grill’s Vice President of Culinary, Becca McIntyre on crafting the 18 new menu items. “The all-new Genghis Grill menu we created offers a renewed take on how restaurants can stay current with what consumers demand today – fresh, full of taste, healthier, affordable and convenient.”

Beyond its menu, Genghis Grill also has the wheels in motion on a new restaurant prototype set to debut in the Spring of 2023. Designed at less than half the size of today’s locations, future restaurants will optimize the guest experience through a smaller footprint. Locations currently in the development pipeline will adopt this modern, fast-casual layout that streamlines operations and strategically meets the needs and preferences of consumers. Integrating the latest technology, the new model fosters speed and efficiency with guests having the opportunity to be in and out in under 15 minutes of placing an order through the kiosk or a Genghis team member if they choose. And, to support incremental revenues now fostered through third-party apps and online ordering, the restaurant prototype includes separate to-go order staging and pick-up areas, multiple curbside parking spots, and the latest quick mobile-ordering technology.

Many of the brand’s existing locations are also scheduled for a remodel to further advance their value proposition, drive down operating costs, increase profitability and better align with consumers in their communities.

Plus, with its new menu and design prioritized, Genghis Grill is also zeroed in on guest loyalty. It has established a partnership with tech-enabled loyalty services supplier Punchh to maximize customer experiences by integrating affinity marketing programs into Genghis Grill’s marketing tech stack.

“The success of Genghis Grill in 2023 will come as a direct result of our innovative dining model that meets the needs of today’s modernized consumer preferences,” says Rich Guckel, Vice President of Development. “We are invigorated by our current momentum and the all-time high interest from restaurant franchisees and investors in our brand.”

As it enters 2023 on a high note, the brand has prime markets across the country ready for development and offers prospective franchisees a competitive opportunity.  – Source: FSR.

THE NEXTGEN CASUAL, WITH DOUBLE-DIGIT SALES GROWTH AND POSITIVE TRAFFIC, OPENED 10 RESTAURANTS IN 2022, AND NEARLY ALL WERE IN TEXAS . . . .

How Black Bear Diner Put Development Back on Track

After COVID hit the U.S. in March 2020, it took Black Bear Diner about a year and a half to restart its full development schedule.

But the chain never rested on its laurels. The NextGen Casual used this downtime to create a new e-learning platform and it figured out how to cut its 3 percent food waste in half. CEO Anita Adams calls it building, scaling, and forming “processes around a very entrepreneurial type of company.” It was a lot of discipline around things that aren’t necessarily as sexy, but important to the P&L, like inventory, theoretical food cost, and labor scheduling.

Black Bear took all of this knowledge into mid-2021 when occupancy limits were being removed. Sales were robust—and still are to this day—and there was confidence that consumers were back, Adams says. Amid this shift, there was debate about whether off-premises would stick. As it turns out, the channel remained at a 20 percent mix, tripling pre-COVID numbers.

A favorable environment for relaunching growth.

“We had the confidence that the time was right,” Adams says. “Our lenders had the confidence and our shareholders and so we jumped back in. We are a growth company, and so it was important as we think about our long-term strategy … This company, it’s 27 years old, but in all reality, we’re a very new, young company. Private equity came in ’16 when there were 70 diners. We’ve doubled at 153.”

The brand climbed to 10 openings in 2022, split evenly between franchise and corporate locations. Operators who developed pre-pandemic are back at the table, which speaks to the resiliency of the brand, Adams says. Black Bear is based in 14 states, from California to Arkansas.

A majority of those 2022 store debuts came in new Texas markets—San Antonio, Amarillo, Dallas, McAllen, Pasadena, Harker Heights, and El Paso. Adams says it’s a concerted effort to demonstrate Black Bear’s portability. The casual-dining chain first entered the Lone Star State in 2018 in Katy, Texas, a store that now earns more than $3 million in AUV. Now there are eight other units in the Houston area. The success validates that Black Bear isn’t simply a California brand, Adams explains. Instead, it’s classical American fare with cabins, bears, and music that can resonate in any environment.

And now that Black Bear has committed to the geography, it’s built leadership. There are assistant managers already slated to become GMs of future diners.

“Texas is just a healthy economic environment,” Adams says. “It’s really 30 percent cash-on-cash returns. It’s been very lucrative for us. And I think too, we have great franchise partners in really more of our legacy footprint, and I believe as a franchisor you need to prove out the portability before you’re asking franchise partners to go build in these new markets.”

Adams says new openings are being received well and experiencing “banner volumes coming out of the gate.” But expansion hasn’t been without its challenges, like inflationary construction prices. In response, Black Bear—like many of its full-service peers—is shrinking its box size and hoping to increase efficiency.

In conjunction with that smaller prototype, Black Bear is thinking more in terms of off-premises. The brand didn’t want situations where to-go bags pile up and delivery drivers, pickup customers, and dine-in guests crowd the entrance. To prevent this disruption, new stores have a pickup window in the foyer where employees distribute orders to off-premises customers and drivers. There’s also additional space in the front for workers to place meals into bags so they don’t sit on the counter.

“All of the diners opened last year would have [the pickup window],” Adams says. “So the 10 and then we had a couple in the prior year that we put that in. We had a franchisee who had converted a Ruby Tuesday and if you look at the Ruby Tuesday’s design, they kept this window and when we were visiting there during the pandemic, they had bags sitting there and it just hit us. We’re like, ‘There’s something to this whole window idea.’ Because now the guest doesn’t even come into the diner.”

Black Bear believes it’s solved the economics of off-premises, too. The chain uses a tiered pricing system in which online orders come with a packaging fee and delivery orders through DoorDash, Postmates, and others come with an even higher cost. Adams says guests valuing these ordering channels are willing to pay larger amounts for the sake of convenience.

The takeout/delivery story began in 2018 when Black Bear partnered with Olo. Back then, the channels mixed only 7 percent, so it’s been quite the journey.

“I struggled because we consider ourselves an experienced brand. How does off-premise fit into that?” Adams says. “And that was what we were grappling with in ‘17 and ’18, and so we felt like, ‘Let’s put it in place, but it’s really going to be kind of just to tuck in.’ We’re not going to really tout it. And so we did that pickup at 7 percent, but then thank goodness because the pandemic hit the next day. 100 percent of our business is going through the channels. So it’s worked out. I just think the world has shifted and there’s guests enjoying our food in their kitchens, their couch, the ballpark.”

Same-store sales rose 12 percent in 2022, and traffic remained positive. To keep guests interested amid inflation, Adams says Black Bear will stay focused on its identity. For instance, in the latter portion of 2022, the brand stayed within its wheelhouse and promoted Chicken Fried Steak. The LTO provided customer value, but at a favorable food cost—giving the chain a key win on margin. In 2023, Black Bear expects to be flat on commodities. In any other year, that would be good news, except that’s compared to a year of 17 percent inflation. Regardless, Adams says the restaurant is about quality offerings and abundance, so it will continue to be aggressive in managing the supply chain.

The longer-term goal is to return to the historical average of 15-20 restaurants per year. In 2023, the plan is to open 15 units, with the majority being franchised. Operators aren’t shying away from development as talks of a recession hang in the background. Adams says there’s a belief that “we’re just going to develop through it.”

“Our aspiration is to go coast to coast,” Adams says. “I don’t think there’s any reason we don’t do that. It’s just a matter of how much we grow from year to year and what our current shareholders want to allocate in capital.”  — Source: FSR.

10 Tips for Foodservice Providers Creating a Sustainability Strategy . . . .

THE MOST IMPORTANT ASPECT TO REMEMBER IS TO TAKE A PROACTIVE APPROACH TO SUSTAINABILITY.

In today’s world, a company’s success is increasingly defined by its ability to meet the “triple bottom line”— concurrently serving the needs of people, planet, and profit. This is no small task, especially for food service providers that must ensure food safety and quality, while at the same time reducing the environmental impacts and waste associated with food and its packaging.

A formal sustainability strategy can help companies prioritize competing interests and empower workers to drive for environmental excellence. But perhaps more importantly, a good strategy can nourish innovation and create supplier-customer partnerships to meet ambitious sustainability goals. With these benefits, it’s no surprise that more than 60 percent of companies today have instituted formal sustainability strategies.

If you’re starting from ground zero, a good first step is to agree to create ambitious but attainable goals with a clear roadmap for how to achieve them. As a food packaging supplier with a deep-rooted commitment to sustainability that has spanned the company’s 40-year existence, Sabert has put a lot of thought into developing and executing a sustainability strategy of our own.

Here are our 10 tips for launching a sustainability strategy that will resonate with customers and make a measurable impact on our planet’s future:

Get buy-in from leadership: Every successful sustainability strategy must have complete support from the leadership team. The success of a sustainability strategy requires a shift in mindset and culture that must be embraced and reinforced from the top. With the backing of the CEO and the entire executive team, companies can more effectively educate and motivate employees to support this shared mission.

Address the full product lifecycle: Industries across the board are moving to a more circular model that takes the full product lifecycle into account. When creating products, try to think beyond the amount of energy it requires to produce them. Consider ways to extend the product’s use phase as well as ways to reduce its environmental impact once it’s been disposed. By addressing sustainability of products at all stages, we avoid pushing environmental burdens to stages that aren’t in our direct control.

Responsibly source food packaging: As plastic packaging remains critical to the food supply chain food providers must ensure they’re working with packaging providers that are committed to responsible product manufacturing, raw material sourcing, and end-of-life management. Food service companies should talk to their suppliers and ask questions about the sustainability of their products to ensure they’re working with an environmentally conscious provider.

Implement waste reduction strategies: Reducing food and packaging waste has multiple environmental benefits. Excess landfill waste is avoided, leading to reduced demand for raw materials. Both of these benefits work to reduce the carbon footprint of the entire food system. Food service providers can do their part by implementing waste reduction strategies such as aligning food production with demand. This can limit waste due to excess food supply. By selecting food packaging that is designed specifically for the intended use, food service providers can avoid food waste due to spills and other packaging mishaps.

Leverage renewable energy sources: Renewable energy sources are more accessible than ever before and more businesses are turning to solar, geothermal, wind, and hydropower energy sources for power. With many businesses targeting 100% renewable energy use within the next decade, food service providers should also set goals to phase out legacy fuel sources in favor of cleaner energy.

Incorporate social and governance factors: Oftentimes, the “Social” and “Governance” components of ESG are forgotten or minimized in sustainability plans. Food service providers should consider how they treat their employees, partners, suppliers, and their communities when developing a sustainability strategy.

Embed sustainability into every business function: Sustainability cannot be viewed in its own silo, and instead must be integrated into all company operations. Every department from sales and marketing to manufacturing and distribution has something to contribute to the sustainability of the overall organization. No effort is too small, and getting all departments working in the same direction will vastly increase a sustainability strategy’s cumulative impact.

Engage the surrounding community: The most sustainable organizations think beyond what they can do within the four walls of their business and extend their sustainability efforts into the communities around them. Many of the big changes that will be required for a successful transition to a more sustainable future cannot be done by one company or one industry. Companies are in a unique position to offer first-hand accounts of what is needed to support their sustainability journey. Industry groups, environmental organizations, and policymakers are eager to engage with passionate companies committed to sustainability—join in the conversation!

Design for circularity: Recycling efforts are a critical component of a more sustainable future, but we will achieve maximal impact when we embrace a fully circular economy. For food service providers, this means implementing composting strategies for food waste as well as utilizing food containers designed according to circular principles—smart sourcing and responsible end-of-life.

Consider hiring a sustainability director: While hiring a sustainability leader is not necessary, doing so can go a long way in facilitating the company’s sustainability goals. These individuals can focus on taking a holistic perspective and applying sustainable practices across every business function. This can ensure the sustainability philosophy is embedded across the organization and greatly improves the company’s long-term positive impact.

Take a proactive approach

Implementing the above 10 steps may seem like an overwhelming task. But the most important aspect to remember is to take a proactive approach to sustainability. Overanalyzing how to make the most impact can lead to inaction. Instead, it’s best to get started by making small changes now. In many cases, these small steps can spread throughout the organization and serve as the building blocks for a strong sustainability foundation. As one of the largest essential industries globally, our efforts can make a substantial impact. Start today and help build a more sustainable tomorrow. – Source: Rebecca Locker, Ph.D., is Sustainability Director at Sabert Corporation.

THANK-YOU FOR READING THE GLOBAL FOODSERVICE NEWS!