Foodservice Equipment and Supplies

Johnson-Lancaster Buys IFE/SCRDG
For the second time in less than a week, one of the top 100 foodservice equipment and supplies dealers in the country has been acquired. In this case, Florida-based Johnson-Lancaster and Associates has purchased California-based IFE Group/SCRDG. The financial terms of the deal were not disclosed.

Johnson-Lancaster reported revenues of $379.00 million in 2023, making it the ninth largest dealer in the country, per FE&S 2024 Distribution Giants Study. IFE Group/SCRDG reported revenues of $37.82 million in 2023, making it the 54th largest dealer in the country.

IFE Group/SCRDG will continue to go to market with the same name and under the same leadership, per a release announcing the deal. IFG Group/SCRDG’s client base includes chain restaurants, independent restaurants and government entities, the release added.

News of this deal comes days after Singer Equipment Co. purchased Hotel & Restaurant Supply.

Source fesmag.com

Nemco’s Facility Expansion To Kick Off Next Week
The expanded building, set to open this fall, will help drive production efficiencies for the manufacturer of food prep and warming equipment.

On Tuesday, April 16, Nemco will hold a groundbreaking ceremony for a 40,000-square-foot expansion to its Hicksville, Ohio facility.

The company says the expanded space will enhance its manufacturing capabilities, increase production efficiency and incorporate new technologies. Briner Building will oversee the construction, which is expected to wrap up by Sept. 30.

“This expansion is not just about growing our physical space; it’s about reaffirming our commitment to quality, innovation, our employees and our customers,” says Luke Moffatt, president of Nemco, in a release. “By increasing our manufacturing capabilities, we are ensuring that we can meet customer demands with the same high standards we’ve upheld for years. This expansion will help fuel our long-term growth goals over the next 10+ years.”

Nemco has operated in Hicksville since 1976, starting out as a “small machine shop” established by Ed Neidhardt, notes the company website. In the 1980s, the company launched its first food prep product: a potato cutter for curly fries.

Source fermag.com

Singer Equipment Acquires Hotel & Restaurant Supply
The company is the largest foodservice equipment dealer in the Southeast.

ELVERSON, Pa. — Fred Singer, president and CEO of Singer Equipment, announced the acquisition of the business of Hotel & Restaurant Supply, the largest foodservice equipment dealer in the Southeast.

Headquartered in Meridian, Mississippi, with six additional locations throughout Mississippi, Alabama, Tennessee and Louisiana, Hotel & Restaurant Supply is well positioned to support the dynamic growth of the Southeast U.S. foodservice market. The new division will operate under the name Singer H&R.Mason Greene, chairman of Hotel & Restaurant Supply, said:

“My family and I, over three generations, along with our dedicated team, have had the privilege of growing Hotel & Restaurant Supply to become the leading foodservice equipment dealer in the Southeast. We have selected Singer as our partner to accelerate our next phase of growth. The Singer family shares our values of service to our customers and care for our employees. I am excited by the meaningful opportunities for both our customers and employees that come from joining the strengths of these two family businesses.”

Greene will be joining Singer H&R as a managing director of the company, reporting to Fred Singer.

“I am thrilled to support the entire Hotel & Restaurant Supply organization in its growth plans. Hotel & Restaurant Supply, and the Greene family, are recognized leaders in the industry with broad respect from vendors and customers, and a reputation for integrity and excellence,” Singer said. “Together, we will bring new opportunities to our customers and co-workers alike. We look forward to expanding our company into the fast-growing Southeast.”

Marcus Lyon, the President of Hotel & Restaurant Supply, will continue as President of Singer H&R, reporting directly to Fred Singer.

“I am delighted to be joining the Singer team. This was a perfect fit as both companies are family owned and share the same values, culture alignment and strategic initiatives. I am excited for the future and what this opportunity brings to our customers, our people as well as all our vendor partners,” Lyon said. “As a company, we will continue to focus on strong growth and the benefits from our new scale and resources as a result of this transaction.”

“Singer Equipment Company continues to look for strategic acquisitions that strengthen our position of providing comprehensive foodservice solutions. Hotel & Restaurant Supply has a track record of success and is well positioned for growth. We look forward to welcoming the entire Hotel & Restaurant Supply organization to Singer,” said Singer CFO Seth Feldman.

Source foodmanufacturing.com

Alto-Shaam Names Manager of Culinary
Alto-Shaam promoted Kristina Bladecki to the role of manager of culinary for the Wisconsin-based foodservice equipment manufacturer.

Bladecki joined Alto-Shaam in 2011 as a marketing assistant before transitioning to the culinary team, where she most recently served as a corporate executive chef.

In her new role, Bladecki will lead Alto-Shaam’s culinary team, which will include establishing product and culinary application testing criteria. She will also play a key role in Alto-Shaam’s presence at industry trade shows.

Source fesmag.com

Tabletop & FOH

Father’s Day Restaurant Ideas
Father’s Day tends to sneak up on us in the restaurant business. Not to mention, it’s commonly overshadowed by Mother’s Day. We don’t think this is very fair, and it’s also a missed opportunity! Many families treat dad to a night out for this holiday, so why not get involved by running some Father’s Day promotions? In 2024, Father’s Day falls on June 16th. Our advice is to start spreading the word about your promotions in May so your customers have plenty of time to plan for this June holiday. If you need some inspiration, we’ve made a list of 11 Father’s Day ideas to help you get started!

1. Dads Eat Free
This might be an obvious one, but it’s a winner for a reason. The possibility of a free meal is a great way to get more customers in the door. While it may seem counterintuitive to offer free food, the reality is that running a “dads eat free” promotion can actually be a smart business move.

While dads may be eating for free, the rest of the family will order meals and drinks. This can help offset the cost of the free meal and even boost your sales for the day, especially if your servers are trained to upsell. Promotions like these can create excitement and buzz around your restaurant. Word-of-mouth marketing is powerful, and happy families enjoying a meal out on Father’s Day can lead to positive reviews and recommendations.

2. Craft Beer Pairing Menu
beer tasting glass filled with amber colored beer
Create a special Father’s Day menu that features craft beer pairings for each dish. This can appeal to beer-loving dads and provide a unique dining experience. To create a successful craft beer pairing menu, start by selecting a variety of craft beers that offer different flavor profiles. Consider including a mix of styles such as IPAs, stouts, lagers, and sour beers to cater to different preferences. Next, carefully curate a menu that includes dishes that can be enhanced by the flavors of the selected craft beers. Think about how the flavors of the food and beer will interact and complement each other.

You can go a step further by designing special menu cards or flyers that highlight the beer pairing options for Father’s Day. This promotional material can be displayed in your restaurant or shared on social media to generate excitement and attract customers looking for a memorable dining experience to celebrate with their dads.

3. Best Dad Joke
Everyone knows a “dad joke” when they hear one. You can add a fun and interactive twist to your Father’s Day promotions by inviting customers to share their best dad jokes with their server in exchange for a special discount. Make sure to set guidelines for family-friendly jokes only! You can take it a step further by entering the dad jokes into an ongoing weekly bracket contest to determine a winner. Use your social media page to give updates on the bracket winners, and at the end of the contest, the final winner gets a free gift card.

4. Generational Discounts
Offer a special discount for families dining together with three generations present – father, son, and grandfather. Families are always looking for ways to treat their dads to a special meal, and a discount that includes multiple generations can be a compelling offer that drives more customers through your restaurant doors. A promotion like this encourages families to come out and celebrate Father’s Day in a meaningful way, creating lasting memories and helping to build customer loyalty.

Keep in mind that to attract dads with young children, it’s smart to make your restaurant as kid-friendly as possible. Keeping the kids entertained means that dad can enjoy his meal and relax.

5. Extend the Dates
Why run your promotions for just one day when you can make it a weekend event? Not everyone can celebrate on the actual day of the holiday. Sometimes it’s because of busy schedules, and other times it’s because discerning customers want to avoid the crowds. More families are choosing to celebrate the holiday on the day before or the day after because it’s more convenient. Offer your Father’s Day specials on Friday, Saturday, Sunday, and even Monday so that everyone can find a time to visit your restaurant.

6. Create a Dad-Centric Menu
golden fluffy burger bun with burger and toppings inside
We don’t want to feed into stereotypes, but there are some foods that just go hand-in-hand with Father’s Day. To attract more families on this holiday, create a special menu that’s just for dads. Here are some of our recommendations for a Dad’s Day menu:

Hearty Steaks: Treat the dads to a mouthwatering steak dinner. Whether it’s a juicy ribeye, a tender filet mignon, or a flavorful New York strip, the best cuts of steak are a classic choice that many dads will love.
BBQ Ribs: Nothing says Father’s Day like a plate of finger-licking BBQ ribs. Slow-cooked to perfection and slathered in tangy barbecue sauce, ribs are a sure crowd-pleaser for dads who enjoy a hearty, meaty meal.
Burgers: A well-crafted burger is always a hit, especially on Dad’s Day. Get creative with toppings like bacon, cheese, avocado, or even a fried egg to take your burger game to the next level.
Whiskey-Infused Desserts: End the meal on a sweet note with whiskey-infused desserts like bourbon pecan pie, whiskey chocolate cake, or whiskey caramel ice cream. These indulgent treats are a great way to add a touch of sophistication to your Dad’s Day menu.

7. Father-Child Cooking Class
Maybe outdoor BBQs and craft beer don’t go with the brand of your restaurant. You can offer a more hands-on promotion with a special cooking class. Offer a culinary class where dads and their children can learn how to cook a special Father’s Day meal together. This can be a bonding experience for families and a unique way to celebrate the occasion. Start by choosing a theme that appeals to both adults and children. Whether it’s a pizza-making workshop, a cupcake decorating session, or a DIY burger bar, make sure the menu is simple enough for kids to participate in and engaging for dads to enjoy.

Next, set a date and time that works best for families. Consider hosting the cooking class on the weekend or in the early evening to accommodate busy schedules. Promote the event through social media, email newsletters, and in-house signage to generate interest and encourage sign-ups. When it comes to logistics, make sure you have all the necessary ingredients, equipment, and utensils ready for the class. Assign tasks that are age-appropriate for children and provide guidance and supervision to ensure a safe and enjoyable experience for everyone.

8. Classic Dads Movie Night
To plan a successful classic dad’s movie night at your restaurant, start by selecting a lineup of films that resonate with the father figures in your community. Consider featuring classic action movies, comedies, or sports films that are sure to appeal to a wide audience. You can even take a poll on social media to get input from your customers on their favorite dad-friendly movies.

Next, create a cozy and inviting atmosphere in your restaurant by setting up a designated movie-watching area. Arrange comfortable seating with tables for snacks and drinks, and consider decorating the space with movie-themed decor or nostalgic memorabilia that dads will appreciate.

9. Outdoor BBQ or Grill Night
two cornhold boards with red and blue sacks
It’s time to turn your outdoor patio into a dad’s paradise. Host an outdoor BBQ night and set up grills, tables, and seating for guests to enjoy their meal al fresco. Create a cozy ambience by adding string lights or lanterns to your outdoor dining space. Set up outdoor games and activities, such as cornhole or giant Jenga, for families to enjoy while dining. This enhances the festive atmosphere and keeps families entertained.

Make sure you have enough staff on hand to handle the increased volume of guests. Assign roles for grilling, serving, and cleaning up to ensure a smooth and efficient event. Don’t forget to keep sanitation in mind and prepare for the arrival of summer’s outdoor pests.

10. Gift with Purchase
When planning a gift with purchase promotion for Father’s Day, it’s important to consider what your customers would appreciate and find valuable. Think about items that are practical, fun, and align with the theme of the occasion. For example, you could offer a complimentary dessert or appetizer with the purchase of a Father’s Day special menu item. This not only adds value to the customer’s experience but also encourages them to try new dishes on your menu.

Another idea for a gift with purchase promo is to offer a branded item like a cool reusable coffee mug or a T-shirt with a Father’s Day slogan. This serves as a memorable keepsake for customers and helps to promote your brand long after Father’s Day has passed. To make your gift with purchase promotion even more enticing, consider promoting it through your restaurant’s social media channels and email marketing campaigns.

11. Dads Trivia Night
Are dads always right? Put them to the ultimate test with a trivia night dedicated to their favorite topics. Develop a list of trivia questions centered around famous dads from pop culture, history, and entertainment. Include a mix of easy and challenging questions to cater to all levels of knowledge. On the day of the trivia night, make sure to have a skilled host or MC to keep the event running smoothly. Engage with the participants, announce the questions clearly, and maintain a high-energy vibe throughout the night.

Father’s Day is just around the corner, and for restaurants, this presents a golden opportunity to attract families looking to celebrate this special day. Don’t let the month of May slip by without promoting your Dad’s day specials. Get a head start with advertising your Father’s Day menu and events on your website, your social media accounts, and with in-store signage.

Source webstaurantstore.com

Should Your Restaurant Get Rid of Tipping?
Tipping has long been a customary practice in the restaurant industry, with customers voluntarily leaving gratuities to show appreciation for good service. However, in recent years, there has been a growing debate about whether restaurants should eliminate tipping altogether. This shift is driven by various factors, including the desire to create a more equitable pay structure for all restaurant staff and to provide a more consistent dining experience for customers. As the restaurant landscape evolves, it’s essential for restaurant owners and operators to carefully consider the implications of eliminating tipping and how it could impact their business.

Why Tipping Should Be Banned
The debate over whether tipping should be banned is gaining traction for several compelling reasons:

1. Vague Tipping Etiquette
It’s not always clear when tipping is or isn’t expected. There is often confusion around take-out orders, fast casual restaurants, and buffets, just to name a few. It can be especially confusing for customers when the expectations vary on almost a case-by-case basis.

Since different establishments handle tips in different ways, it is difficult to tell where the money from the tip jar is going. For example, coffee shop employees may split up the tip jar as they finish up their shift, but some establishments will collect all the tips for the whole year in order to pay for a holiday party for the staff. Most foodservice staff work hard for a low hourly wage and they rely on tips, so it’s important for customers to understand how their money is being used and in what circumstances they’re expected to leave a tip.

2. Inconsistent Earnings
Many people don’t realize that servers at restaurants are only guaranteed an hourly wage of about $2.13 by federal law. The rest of their income comes from tips. Sometimes, a server’s tips will suffer due to circumstances beyond their control. A rowdy customer, a shortage of a menu item… there’s any number of things that can go wrong. Customers aren’t always sympathetic towards these mishaps, and that’s unfair to the front-of-house staff.

3. Tensions between Front- and Back-of-House
During a busy shift, front-of-house employees have the potential to earn more money than those in the back-of-house. This is because servers’ wages are largely determined by the amount of tables they wait, while back-of-house employees typically have a fixed hourly wage. This leaves your back-of-house staff at a disadvantage because even though they are under just as much pressure with the increased volume of customers, they don’t see any reward for working extra hard.

4. Employees Feel Underappreciated
Even though serving staff and bartenders can make a living on tips, the low hourly wage may make them feel underappreciated. Offering staff a consistent pay rate can reduce employee turnover. Your employees will enjoy the security of knowing what to expect from their wages each month, even during slow times of the year, which can reduce stress in their personal lives. It also shows your staff that you appreciate them.

5. Streamlined Operations
Banning tipping can streamline restaurant operations by eliminating the need for servers to track and report tips, leading to a more efficient and transparent system. It can also help simplify a customer’s experience. Without the need to calculate and leave a tip, diners can enjoy their meal without the added pressure of determining an appropriate gratuity amount. This can lead to a more relaxed and enjoyable dining experience for customers, ultimately benefiting the restaurant’s reputation and customer loyalty.

6. Underreporting Tips
One reason why tipping should be banned in restaurants is the issue of underreporting tips to avoid taxes. Tipped employees are responsible for reporting their tips to the IRS for tax purposes. However, the nature of cash tips makes it challenging for the IRS to track and enforce accurate reporting. By eliminating tipping and instead paying employees a fair wage, restaurants can ensure that all income is properly reported and taxed. This can help improve tax compliance and reduce the potential for fraud, benefiting both employees and the government.

Why Tipping Should Not Be Banned
While there is ongoing debate about whether tipping should be eliminated in favor of higher wages for restaurant staff, there are several reasons in favor of tipping not being banned:

1. Personal Interactions
Tipping can help interactions between customers and servers or bartenders feel more personal. Leaving a generous tip is a nice way for customers to show their appreciation for the service provided to them. Discouraging tipping may cause confusion for guests, and it removes the emotional connection that servers and diners have become accustomed to as part of the restaurant-going experience.

2. Incentive for Good-Quality Service and Upselling
It can also be argued that the tipping system acts as an incentive for servers to provide guests with the best possible experience. It’s a similar idea to sales commissions since tipping is a percentage of the total cost of the meal — servers stand to earn better tips if they upsell. By allowing customers to tip based on their experience, servers are motivated to provide exceptional service to earn higher tips. This system incentivizes staff to go above and beyond to ensure customer satisfaction, leading to a better overall dining experience.

3. Higher Menu Prices
The money that goes towards an hourly wage has to come from somewhere. In most cases, this will mean raising the price of items on your menu. The cost for customers typically winds up being the same as it would be if a customer were leaving a tip, but customers who are accustomed to leaving tips might be scared of the high menu prices.

4. Employee Recruitment
Many individuals are attracted to working in the restaurant industry because of the potential for earning tips, which can serve as a strong incentive for recruiting talented and motivated employees. By maintaining a tipping system, restaurants can attract a pool of skilled and dedicated employees who are motivated to provide exceptional service to customers. This, in turn, can contribute to a positive experience for patrons and ultimately benefit the restaurant’s reputation and bottom line.

Alternatives to Tipping in Restaurants
As the restaurant industry evolves, some establishments are exploring alternatives to the traditional tipping model. Here are some innovative approaches that restaurants are adopting to replace the common practice of tipping:

Higher Base Wages – Some restaurants are choosing to pay their employees higher base wages in lieu of tips. By offering competitive salaries, restaurants can attract and retain talented staff members while providing financial stability to their employees.

Service Charge – Instead of relying on tips, some restaurants are implementing a service charge or automatic gratuity added to the bill. This charge is typically a percentage of the total bill and is distributed among the staff members. By incorporating a service charge, restaurants can ensure that all employees receive a fair share of the gratuity.

Revenue Sharing – Another alternative to tipping is revenue sharing, where a percentage of the restaurant’s revenue is distributed among the staff members. This model promotes teamwork and incentivizes employees to work together towards the success of the business.

Non-Monetary Rewards – In addition to monetary compensation, restaurants can offer non-monetary rewards such as paid time off, training opportunities, or employee recognition programs.

While the debate over whether restaurants should eliminate tipping continues, it’s clear that there are valid arguments on both sides of the issue. Factors such as fairness, employee wages, customer satisfaction, and operational efficiency all come into play when considering the potential benefits and drawbacks of removing tipping from the dining experience. Ultimately, the decision to eliminate tipping in a restaurant should be made after careful consideration of the specific circumstances and goals of the establishment.

Source webstaurantstore.com

Why Glass Jars Improve Dessert Sales
Customers expect delicious desserts that look as good as they taste, and having the right presentation can make all the difference in their experience. That’s why glass jars are becoming the go-to choice for businesses looking to improve their dessert sales. Not only do they provide a classy and elegant way to pre-package desserts, but they also offer a unique customer experience that sets them apart from traditional serving containers. With reusable glass jars, businesses can also enjoy an eco-friendly option that will not only help them boost their sales, but also reduce their environmental footprint.

Glass Jars Upscale Presentation
Glass jars have recently become popular for serving desserts. They add a touch of sophistication to any dish and can be reused over and over again. Customers love the convenience of having their desserts already packaged in glass containers, making them easier to carry home or take with them on the go. Plus, it looks great on social media!

From an aesthetic point of view, glass jars provide an elegant way to present your desserts that will definitely catch the eye of potential customers. From cupcakes to mini cheesecakes, these versatile containers can be used for almost any type of sweet treat – giving you endless possibilities for creative presentation!

Glass Jars Feel Sturdier, Making Them More Enjoyable to Hold
Glass jars are also more durable than plastic packaging, meaning that your desserts will stay fresher for longer. They are also less likely to break, so customers can hold them confidently when eating. It may seem like a small detail, but it is an important part of the customer experience that customers subconsciously think about. They don’t want to feel like the container for their dessert will break while they are eating. Glass jars don’t feel that way, while other options can feel that way.

Environmental Benefits Earn Respect From Customers
Not only do glass jars look great and improve customer satisfaction, but they’re also environmentally friendly too! Unlike plastic packaging, which takes hundreds of years to degrade, glass is 100% recyclable and doesn’t release harmful toxins into the environment when it breaks down. This makes them a great choice for businesses who want to reduce their carbon footprint while still offering delicious desserts to their customers.

They are also reusable. If you are using them for food storage or for serving, you can reuse the jars as many times as you want to. That means far fewer things that you need to buy and dispose of for your restaurant over time.

So if you’re looking for a unique way to boost your dessert sales, consider investing in some reusable glass containers today! Not only will this help enhance customer experience by providing a classy and elegant serving option, but it will also help protect our environment too – making it a win-win situation all round!

Source packnwood.com

Food & Beverage

Restaurant menu prices show signs of easing
Prices at restaurants increased slower than the overall rate of inflation in March. But they still increased faster than they did at the grocery store.

The Consumer Price Index increased faster than expected last month. But don’t blame restaurants this time.

Prices at restaurants and other foodservice venues increased 0.3% last month, according to data from the U.S. Bureau of Labor Statistics on Wednesday. That was slightly slower than the 0.4% increase for all items the bureau examines. Economists expected a 0.3% increase, according to Reuters.

But prices at restaurants still increased at a faster rate than they did at grocery stores, where prices were flat for the month.

For the year, food-away-from-home prices increased 4.2%, compared with 1.2% at retailers.

Pricing has become a thorny issue for restaurants, as rising prices have generated concern among consumers. Lower-income consumers in particular can’t eat out as often as they want, cutting back on dining at chains like McDonald’s and Olive Garden.

Teenagers, too, have cut back on overall spending due to inflation.

The result has caused traffic declines as consumers adjust their budgets to account for the higher prices. And there are signs that this is having an impact on sales, too, as same-store sales at publicly traded chains slowed markedly in the back half of 2023.

Still, restaurants are expected to moderate their price increases this year, as labor and food costs have eased, at least outside of California. At full-service restaurants, prices over the past year have increased 3.2%.

Limited-service prices remain higher. They raised pries 0.3% last month and 5% over the past year.

Source restaurantbusinessonline.com

How Food & Beverage Companies Are Using Generative AI
The tool’s greatest potential and why the challenges of using generative AI shouldn’t be underestimated.

Thor Olof Philogène is the CEO and founder of Stravito, an AI-powered enterprise insights platform that allows employees at Fortune 2000 organizations to store, discover, share and integrate consumer insights in seconds. The company’s clients include brands like McDonalds, Comcast, Electrolux and Danone.

In this exclusive interview with Food Manufacturing, Philogène discusses how food and beverage companies using generative AI tools today, the tool’s greatest potential, and why the challenges of using generative AI shouldn’t be underestimatedFood Manufacturing: How are food and beverage (F&B) organizations using generative AI tools right now?

Thor Olof Philogène: Many, if not all, F&B companies are exploring generative AI, but we’re seeing that many of them are taking a cautious approach. Rather than diving into full-scale production right from the start, they begin with small pilot projects involving generative AI.

Another notable trend we’re seeing is the formation of dedicated generative AI committees within many companies. These committees have a horizontal scope and work to coordinate generative AI initiatives across different parts of the organization. They do not only carefully evaluate the potential benefits and risks of generative AI, but also work to establish security and privacy standards for vendors.

With the rapid evolution in this field, where development is happening at lightning speed, we also see a growing tendency among companies to select long-term partners rather than just vendors.

FM: Where is the greatest potential for the tools?

Philogène: The greatest potential of incorporating generative AI into the F&B industry centers around enhanced efficiency, productivity and creativity for users by removing a large part of the manual work and making it easier for users of the new tools to discover new information through a simplified, conversational interface made possible by generative AI technologies.

Overall, while the hype is huge and the possibilities seem endless, it’s important to remember that generative AI is still in its early stages of development, which is why thoughtful research and education are important. F&B companies need to identify real-life pain points that generative AI tools can effectively address, as implementing generative AI simply for the sake of using the technology without a clear purpose may lead to inefficient resource allocation and limited return on investment.

FM: What were your thoughts on the Beck’s “beer that made itself” experiment? New industry standard or gimmick?

Philogène: I believe it reflects a perfect snapshot of where we are in terms of experimenting with generative AI, understanding its capabilities and potential applications, albeit in a specific context of the brewing industry.

Similarly, in other domains such as art, music, literature, and design, generative AI is being experimented with to generate new creative outputs. We’re in an exciting phase, crucial for building a deeper understanding of the technology. New industry standard or gimmick, time will tell.

FM: How can companies use generative AI in a more meaningful manner?

Philogène: When we evaluate the success of generative AI implementations, we look at it from two primary angles: efficiency gains and value creation. Efficiency gains are quantified by the time saved in searching for and analyzing information, as generative AI significantly accelerates these processes. As an example, groundwork that would have required hours before can be done in minutes now. Additionally, enhanced discoverability of information helps companies avoid redundant efforts and conserve budgets by leveraging existing research rather than starting from scratch each time.

However, the true significance of generative AI lies in its capacity to deliver benefits beyond mere time and cost savings. For instance, in the realm of research, the ability to ask the right questions is paramount. While researchers naturally hone this skill over time, generative AI can further refine it for business stakeholders. By helping to generate better questions and challenging biases and assumptions, generative AI has the potential to foster behavioral changes and encourage a more thoughtful approach.

FM: Do you have any reservations or concerns regarding the use of generative AI?

Philogène: Implementing generative AI solutions provides companies with incredible power and speed to parse large volumes of data, delivering a great productivity boost, and promoting exploration and inspiration through a seamless interface.

However, the challenges of incorporating generative AI into systems and processes are multi-dimensional and should not be underestimated: Enterprises need to make sure they only work with trusted vendors for their AI solutions, and that the data that they use in AI-enabled systems is handled in a secure and compliant manner.

Of course, there is also the risk of hallucinations from some generative AI tools, which is something that has received much media attention over the past year. For F&B companies who are reliant on market and consumer research to make business decisions, it’s pivotal that any tool they implement only uses vetted data to generate AI-enabled answers – unlike open AI apps that pull from the public domain. Furthermore, I would stress that you, when it comes time to integrate, ensure that the generative AI tool is complemented by a human-run service layer. Implementing generative AI necessitates a human component to ensure its effectiveness.

Source foodmanufacturing.com

Applebee’s launches Whole Lotta Bacon Burger in US
Priced at $9.99, the handcrafted burger is a limited-time offering and comes with a side of fries.

Applebee’s Neighborhood Grill + Bar has expanded its handcrafted burger line-up in the US with the launch of the Whole Lotta Bacon Burger.

The latest addition is an all-beef patty infused with seared Applewood-smoked bacon and topped with three additional bacon slices, bacon sauce and American cheese.

Served on a toasted brioche bun accompanied by lettuce, tomato, red onion and pickles, the burger comes with a side of fries.

Applebee’s chief marketing officer Joel Yashinsky said: “If you love bacon, we’ve got the burger for you.

“This burger has all your bacon bases covered with Applewood-smoked bacon seared into the beef patty, bacon in the tangy sauce and bacon slices on top. Don’t miss your chance to enjoy one of our new guest-favourite items!”

Source verdictfoodservice.com

Chipotle, Starbucks and more raise prices by as much as 7-8% in California
Restaurant chains and California franchisees are making the tough decision to increase prices and cut hours in light of the state’s new $20 minimum wage

In light of California’s new $20 minimum wage bill for fast-food workers, which went into effect on April 1, restaurant chains and franchisees are already taking action, in some cases by raising prices by as much as 7-8% for select menu items in the state.

Analysts Eric Gonzalez of Keybanc and Mark Kalinowski scraped data and researched pricing trends over the past couple of months at major restaurant chains to determine how much menu prices have been impacted by surge in labor costs in the state. All eyes are on companies like Chipotle and Starbucks especially, as these brands do not franchise (which is historically an industry anomaly).

According to Kalinowski’s research (which sampled 25 Chipotle restaurants in California), the price of a Chipotle chicken burrito went up 8.3% from February to April, while the cost of a steak burrito increased by 7%. This research is in line with Gonzalez’s analysis, which suggests that pricing at most Chipotle’s 476 stores in California increased by 7-8%. Gonzalez said that Chipotle is actually an unusual case because the company has undervalued its menu prices in the state to compete with the proliferation of other burrito options in California.

“Chipotle is unique because they’re one of the few brands that has had positive traffic, and they have pricing power because the Chipotle chicken burrito going for under $10 is a great deal,” Gonzalez said, adding that the burrito is actually $10.27 at most stores now. “People probably could not find a similarly priced alternative…. So, they’re in the unique position where they can actually offset the cost of the labor.”

Chipotle confirmed the new pricing strategy in California with NRN, with a company spokesperson stating that the company has “implemented a statewide price increase in light of new legislation in California” like other restaurants in the quick-service category.

Starbucks has similarly reported steady traffic growth in most of the company’s recent quarters, and also took significant pricing in the leadup to the new California minimum wage. According to Kalinowski’s research, Starbucks prices at a sample size of 20 California states increased by about 7% on average from February to April. One menu item (a venti iced caramel macchiato) now costs 8.4% more than it did two months ago, while on the other end of the scale, a venti caffe latte costs about 5.5% more than it used to.

More than one-third of menu items at company-owned Starbucks stores have not notably changed price and the average increase for those that did was less than a dollar.

Starbucks confirmed with NRN that it took these price increases along with “a variety of [other] levers” including technology-driven store efficiencies to “offset the investment in [their] partners.”

“A lot of what any particular restaurant can do depends on the strength of the concept,” Mark Kalinowski told NRN. “Concepts with great unit economics such as McDonald’s, Chipotle, and Chick-fil-A have nice advantages in that regard. That doesn’t mean this new law isn’t a net negative for the owners of these restaurants, but simply that all else being equal, they are better off fighting against the higher labor costs than concepts with relatively weaker unit economics.”

Franchising restaurants are, of course, a different story than Chipotle and Starbucks, operationally. Parent companies cannot dictate the pricing choices of their franchisees, and it appears that many of them have chosen to take much more moderate pricing increases in comparison, like Taco Bell, which was reported at about 3%, McDonald’s, which took negligible pricing over the past couple of months, and Burger King, whose franchisees took a 2% price hike on average.

The only anomaly here is Wendy’s, whose franchisees chose to increase prices by about 8%, according to Kalinowski’s research sample size, with the percentage change of a classic chicken sandwich combo reaching double-digits since February. A spokesperson for Wendy’s did not respond to media inquiry in time for publication of this story.

Whether California-based franchisees lean heavily into raising prices like Wendy’s franchisees seem to have, or whether they take a “wait and see” approach like McDonald’s franchisees, there is no easy solution for offsetting these new labor costs, especially for smaller brands that don’t have the same fiscal backing as McDonald’s or Starbucks.

“I own two Vitality Bowls restaurants in San Jose, and the new minimum wage is a big cost hit for my family’s small business,” franchisee Brian Hom told NRN. “We’ve cut worker hours and I’m not replacing people who have left. I raised prices April 1, but I’m really concerned because I’ve seen a drop-off in customer transactions since the beginning of the year due to customers cutting back due to inflation. I’m worried we might not make it.”

Although the new California law currently only affects employees at fast-food chains with more than 60 locations, there is a significant difference between a small business owner who owns two units of the 130-storeVitality Bowls concept, and a regional McDonald’s franchisee that might own hundreds of stores. Kalinowski suggests that franchisees diversify their holdings geographically, while for parent companies, refranchising might be a more attractive option.

“A large franchisee with restaurants in 20+ states will have an easier go of it than a small franchisee with one to three restaurants, all in California,” he said. “If you can find somebody willing to buy all of your California restaurants, and you want to buy some other restaurants in a business-friendly state with lower tax rates, that isn’t the worst approach in the world, either.”

Source nrn.com

HVAC & Plumbing

Hoshizaki America Names VPs of Marketing, Finance
The maker’s newest leadership team member hails from Dover and Welbilt.

Hoshizaki America has a twofold personnel update, with a promotion and a new hire changing its makeup.

Being promoted is Sally Ray, who has held marketing roles of increasing responsibility over the past eight years. Ray will now step into a new role as the VP of marketing. In this role, she will spearhead initiatives aimed at augmenting market share and propelling growth through marketing and product development. She also will help implement a comprehensive training infrastructure, plus continue to lead the Hoshizaki Alliance marketing for the Americas region.

Hoshizaki’s new hire is Loanne Freedlund, who joins as the manufacturer’s new VP of finance. In this role, Hoshizaki says she will help drive financial stewardship and operational excellence across all facets of the company. Freedlund, who is certified as a Six Sigma Yellow Belt, previously held finance leadership roles at foodservice equipment manufacturers including Dover and Welbilt.

Source fermag.com

HVAC Excellence Recognizes HVACR All Stars
HVAC Excellence, a standards organization, proudly recognized the industry’s top performers at the National HVACR Education Conference. This esteemed event celebrated the outstanding contributions of HVACR professionals who have demonstrated excellence and dedication to advancing the industry.

The highlight of the conference was the recognition of individuals who achieved the prestigious title of Certified Master HVACR Educator, marking them as leaders in education and training within the HVACR field. Additionally, schools that attained third-party accreditation for their programs were acknowledged for their commitment to meeting or exceeding established standards.

Furthermore, the conference honored the top 25 instructors and trainers in the HVACR industry, as voted by their peers. These exceptional individuals were lauded for their exceptional teaching skills and their impact on shaping the next generation of HVACR professionals.

The ceremony took place before a gathering of industry peers during a general session, where an all-star panel from government agencies and leading manufacturers discussed changes underway in the industry. Hosting these events in tandem underscores the importance of these accolades and the collective effort to uphold the highest standards in HVACR education and training of these individuals and their programs.

HVAC Excellence extends its congratulations to all the HVACR All-Stars recognized at the National HVACR Education Conference, thanking them for their unwavering dedication and contributions to advancing the HVACR industry.

Source hvacinsider.com

Daikin presented new range of water to water heat pumps
Daikin has announced the release of a new range of water to water heat pumps: EW*T-Q-X-A1 range with Daikin design scroll compressors. Available from April 2024, the new EW*T-Q-X-A1 features a new modular approach to system design, which introduces additional flexibility in configuration. Breaking away from the more traditional ‘package’ solution, the modular approach allows the required capacity to be reached by combining smaller units piped together and controlled as a single one. Modular construction offers significant benefits in siting and installation, making units easier to transport, handle and position up to a fully plug & play solution by including the Daikin Manifold Kit and Pump module.

Extensive application flexibility
The new water sourced EW*T-Q-X-A1 heat pumps can ensure heating or cooling operation under many different conditions. Hot water can be produced up to +60°C; whilst chilled water is supplied in the range from -15°C (water-glycol mixture) to +30 °C evaporator leaving water temperature.

Hence, the range of applications that can be covered is wide and including comfort heating, space and process cooling, heat recovery.

Composed of three base modules offering 100, 125 and 160kW capacities, the range features Daikin scroll compressors and is available in two sound versions including a reduced sound variant which is suitable for outdoor installation and noise sensitive applications as condominiums, hotels and hospitals.

Unit configurations by type include:
Water to Water heat pump with inversion on water side
Water to Water heat pump with inversion on refrigerant side (100 kW only)
Condenser-less

The 5 benefits of modularity

Scalability
Thanks to its modularity, the new EW*T-Q-X-A1 offers the potential for scalability, reducing initial investment costs while opening up the possibility for future expansion with additional modules installed as building occupancy increases. The introduction of a common scroll layout ensures greater compatibility, helping to promote system longevity and making future system upgrades effortless. The modules can be combined as a side-by-side array or stacked to minimise space requirements, especially useful for retrofit applications.

Compactness
Each of the different module is very compact and can be easily transported and positioned on to the installation space. Being the single module 120 centimetres wide, 130 cm depth and 100 cm height, it can be easily handled with a forklift, without the need of a crane to move an entire package chiller.

Plug & play installation
Installation can be further simplified by employing the Daikin Manifold Kit, designed to connect modules on water side, as it includes the piping between the units. As well, each manifold is equipped as standard with manual isolation valves for all connections. This allows to exclude each single module from the circuit in case of maintenance without the need to stop the entire system.

Moreover, a dedicated Pump Module can be easily added to the array of modules. It is equipped with inverter pumps for full flexibility, and includes an expansion tank of 18 litres volume.
Lower operating costs

Thanks to its modular design, the new EW*T-Q-X-A1 can closely follow the cooling and heating load profile of the building. This is particularly relevant, as it ensures low operating costs of the HVAC plant at part load conditions, which represent most of the working time. The same is not true for traditional package chillers, as in part load conditions the package chiller cannot deliver the required load according to EN14825. This means that chiller would have to perform a series of on-off cycles introducing inefficiency in the operation.

Source refindustry.com

Controls Engineering & IoT

AI in the Lab and the Plant
Are your product development teams and plant ready for a little artificial intelligence? Are you?

See the Editor’s Plate for a story on AI in the food & beverage industry written by ChatGPT 3.5. It’s pretty good but also pretty general. All of it findable somewhere on the internet … which is exactly where ChatGPT did its milliseconds of “research.”

It also represents of one of the truisms of AI. In all its forms, AI will only give you as specific and useful information as the questions and other details humans program into it.

“Only 5% of the world we live in is structured data. The other 95% is unstructured data,” Magesh Bagavathi, PepsiCo’s chief technology officer, said in a company web posting. “AI takes disorganized information — the other 95% — and turns it into formulas.”

ChatGPT is a “generative” AI program, meaning it generates content – text, images, video, music, speech, even software code and product designs – from among many pieces of existing content. Statistical model-based AI is probably the best form for product development; it’s human-built and -managed, and there’s a finite amount of data for the software to search. Machine learning or self-learning AI would be best for the plant floor; it’s human-trained and its universe of data usually is specific to the process involved.

“The common thread with all three when applied to food is humans,” emphasizes Vinay Indraganti, CEO and one of the founders of BCD iLabs, a product development consulting service that specializes in AI.

Coca-Cola
Coca-Cola Y3000, in both regular and Zero Sugar, 'was co-created with human and artificial intelligence by understanding how fans envision the future through emotions, aspirations, colors, flavors and more,' The cans say it was co-created with AI.

“AI in a context not related to food can work independently, be self-trained. But when it comes to food, the nuances, the emotions, the palate, the culture are so very intertwined that AI changes from being artificial intelligence to augmented intelligence – human intelligence plus artificial intelligence,” he says.

The current fascination with AI is probably no different than what must have been some awestruck 1970s reports at what computers someday could do. Or a wide-eyed 1990s look at this newfangled World Wide Web. But alone those couldn’t create Joe Biden’s voice suggesting you not vote for him or naked photos of Taylor Swift or Alexa or Siri ordering products indiscriminately.

So, like certain trees growing in the Garden of Eden, choose the appropriate fruits and avoid the bad apples. Investigate AI with a goal to implement it in a responsible, smart and effective way. And rather than depending on the Tree of Knowledge, you better have enough wisdom of your own beforehand to get a useful result.

Following are just a couple snippets of how AI already is helping food & beverage processors.

Hastening product development
Product developers should be developing products, creating and testing formulations, not doing internet searches on available ingredients. Leave the latter to AI. AI helps accelerate the final outcome.

Before co-founding BCD iLabs, Indraganti was global vice president of digital transformation and strategy at Ingredion Inc., focusing on both R&D and manufacturing transformation. He gives a hypothetical example:

“I want to create a protein bar with 15g of protein, less than 10g of added sugar, it’s got to be non-GMO and it will be sold in these countries. And don’t forget cost.”

Instead of a product developer doing the numerous web searches to come up with options for that formula, an AI program can do the grunt work. The R&D people can take the search results and immediately start experimenting.

“The R&D person can choose among the protein sources suggested, the sugars or sugar substitutes and other parameters and start doing experiments,” he says. “In the first iteration you’ll get an outcome, good or bad. You give the program a more desired outcome – maybe a certain kind of mouthfeel, even a desired emotional response – and it will fine-tune the suggestions.”

Like the R&D process itself, the AI process will be hit or miss at first, but eventually the hits will become apparent. As the program becomes more familiar with your company’s products, ingredients used and preferences, it will become better at suggesting formulations.

“It’s like having a new employee, a trainee in the lab,” Indraganti continues. “In the beginning you have to train him or her, and that can take a lot of time. Sometimes you wonder if it’s worth the effort. But at some point the AI system will have learned so much that you see an exponential reduction in your effort and increase in its effectiveness.”

Alexia Ciarfella was a senior scientist at Mondelez International. Now, after a brief stint at Capital One, she’s in the process of co-founding an AI food product development start-up called FlavorMind.

While at Mondelez, she helped develop an artificial intelligence tool to optimize the recipe development process of a well-known cookie. Her team’s work on this generative AI tool led Mondelez to win the “Best of Business AI” award from Microsoft in 2021, as one of the top 10 global organizations expertly using AI as a catalyst for business innovation.

“My role involved leveraging my extensive knowledge of technical challenges and business needs in product development to identify key opportunities to apply AI solutions,” she says. “Our data scientist then used these insights to create computational models tailored to these specific challenges, while our sensory scientist provided the essential, structured data required to train and refine these models.

“This close collaboration ensured that our AI initiatives were well-aligned with the company’s business objectives, technically sound and supported by accurate data, leading to meaningful results and practical applications within the company,” she relates.

She offers some points – not just for product developers – for considering AI for your next project:
• How do you formulate your problem in a way that artificial intelligence can solve it?
• Is your problem specific and measurable?
• Can you describe your problem quantitatively?
• What do you currently measure?
• What else can you measure?
• Are there any boundaries or constraints you need to set?
• How will you measure success?
• Do you need AI to solve your problem?
• Can AI solve your problem?

Ultimately, she suggests three steps along an AI spectrum:
1. Leverage off-the-shelf AI tools from a vendor.
2. Partner with a vendor to co-create a customized AI solution.
3. Build and maintain in-house, bespoke AI models.

What do consumers want?
Perhaps the most often mentioned use of AI is in assessing changing consumer demands and suggesting a starting point to respond to them with product development.

“AI can dramatically decrease product innovation cycles so PepsiCo teams can respond to consumer demand in shortened timelines,” says a web posting from Athina Kanioura, a PepsiCo executive vice president and chief strategy and transformation officer.

“Insights revealed people were discussing, searching for and ordering seaweed products online thanks to an AI tool that analyzed millions of social posts, recipes and menus,” she continues. “That led R&D to develop Off The Eaten Path seaweed snacks in less than 12 months. Similarly, AI insights showed that consumers were interested in immunity. Six months later, Propel with immunity-boosting ingredients was on store shelves, ready to sip.”

“When generative AI is linked to consumer insights – and is tailored to the F&B industry specifically – it has the ability to impact organizational operations in a more meaningful way,” says the founder of one enterprise insights platform.

Tastewise is an Israeli firm whose AI tools provide that link between consumer insights and product development. The company touts “real-time marketing insights and consumer intelligence.”

The Tastewise platform scours a number of sources that indicate what people are currently eating – consumers’ in- and out-of-home purchasing, restaurant menus, even recipes and discussions about favorite dishes on Instagram and TikTok. “Traditionally, by the time you get some of those insights and start to act on them, consumers have moved on,” says Lee Brymer, marketing communications manager at Tastewise.

“What are the most popular soups with Millennials?” he proposes. “We can get you the answer in seconds.”

On its website, Tastewise has case histories with titles like “How Campbell’s redesigned their innovation processes with an efficient, data-driven approach” and “How Treehouse used Tastewise to put the spotlight back on their pickles sales.” Both of those projects were driven by consumer data picked up by Tastewise’s AI program.

Tropicana
To promote there’s nothing artificial in its orange juice, Tropicana released a limited-edition package of Pure Premium orange juice at the giant consumer electronics event CES 2024 in January. Simultaneously across the country, if shoppers found a bottle with the missing letters, they’d be entered in a drawing for a Florida vacation.

To promote there’s nothing artificial in its orange juice, Tropicana released a limited-edition package of ‘Tropcn’ Pure Premium orange juice (get it? No A’s or I’s in the name!) at the giant consumer electronics event CES 2024 in January. Simultaneously across the country, if shoppers found a bottle with the missing letters, they’d be entered in a drawing for a Florida vacation.

For the past two years, Campbell’s marketing, insights and foodservice teams have used Tastewise to push innovation, content strategy and sales. Tastewise says it enables Campbell to:• Improve the efficiency of their research, marketing, innovation and sales projects.• Back up their research with real-time consumer data.• Introduce new marketing and sales angles for well-established products in the market.

It’s already in the plant
When it comes to the plant operations side of the food & beverage industry, AI might be considered a shapeshifter. Implementation at this point in time seems based predominantly on a processor’s comfort level with being a trailblazer of new concepts or waiting to see success in others’ efforts.

In some plants, AI already has begun to make a mark, refining some processes and data analyses in certain applications. For others, AI remains a technology with untapped potential to revolutionize the way the plants operate — once they get around to implementing it.

Count the poultry processing industry as one group embracing AI on the operations side, says Juan DeVillena, senior vice president of quality assurance and food safety at Wayne-Sanderson Farms. From hatcheries to packaging lines, he says the industry stepped up its implementation of AI over the past several years after a slow start.

“As chicken parts move down the line to be cut and portioned, every piece is simultaneously [image] captured from multiple perspectives and developed into a 3D image, enabling the computer to direct the DSI [portioning system] cuts to get the best yields, meeting dimensions criteria,” DeVillena explains.

Similar technology is used in beef-processing applications, says Brett Erickson, director of prepared and packaged solutions for Certified Angus Beef, which works with numerous plants to process its beef products.

“The machinery literally looks at each piece of meat and determines how to slice it to the most efficient level,” he says. “AI also can determine how to package the sliced product best and store the information, learning as it goes how to most efficiently produce that product and get it in the package in its final state.”

Potential remains a big draw for processors considering AI implementation. Konrad Ahlin, senior research engineer at the Georgia Tech Research Institute, says the technology reaches across so many areas that it can be difficult to pinpoint specific impact areas, but industry continues to work to find the lowest-hanging fruit for successful implementation.

“Every bird is different, and AI gives us a tool to address these differences in our process rather than attempting to plan around them,” Ahlin explains. “We will no longer have to automate for an ‘average’ and accept the losses that come from assuming that every product is the same size and shape.”

Food safety is another area that has felt an impact, DeVillena relays. AI and hyperspectral imaging scans give processors increased confidence that product does not contain foreign material, he says, when compared to traditional hand/visual inspections and older X-ray and metal detector technologies.

Hill’s Pet Nutrition, a Colgate-Palmolive division, is taking advantage of AI as a food safety tool. In opening a new pet food processing plant in Tonganoxie, Kan., Hill’s specifically called out how the technology will play a role. Along with a serious dose of automation and robotics, the facility will use AI to drive its digital food safety vigilance system.

“Hill’s will utilize technology to work alongside Hill’s staff and a new state-of-the-art Mission Control Center to provide unprecedented visibility and monitoring through every aspect of pet food-making, from ingredient intake to final packaging,” Chad Sharp, director of manufacturing for the Tonganoxie Plant, said when the plant opened in October 2023.

Of course, there can be hurdles to jump and challenges to solve, says Geoff Coltman, vice president of Catena Solutions. One stumbling block for some early adopters of AI has been that initial investments didn’t always take the human element into account.

“There are companies that have spent millions — $20 million, $50 million, $250 million — on these automated processes, machines and technologies, but they never taught their people how to use it,” he says. “They bought a Corvette, but nobody knows how to fix the Corvette; so they’re going to run it until it runs out of gas, and then what?”

Coltman says that train of thought is why there’s a big focus to get food & beverage maintenance and operations workers caught up on these systems to ensure they succeed. As such, he says, “the ROI has yet to be realized in these investments; more investment needs to happen in order to get there” for processors.

In addition, some companies continue to believe the fantasy that AI will eliminate the need for human intervention, particularly on the data analysis side. AI finds the exceptions in the data and attempts to fix them, but if it doesn’t learn the proper solution through human intervention, the system will continue to kick out exceptions.

“AI, to this point, is not replacing people,” Coltman says. “AI is just a different way to work with the machines — but the machine is only learning based on what is being put into it. Humans are still there in order to make the decisions.”

He adds that change management, as well as education, development and the elevation of employees — or finding the right talent that understands the technology — need to be in the crosshairs during AI implementation.

DeVillena agrees that processors looking to AI to solve challenges cannot forget the people portion of the equation. “As an industry, ensuring the efficiency and safety of evolving processing technology is key, along with investing in the development of skilled individuals to operate and maintain these systems,” he concludes.

There have been a few warnings citing that old adage that “the leading edge is the bleeding edge.” Diving into a new market or technology early can be risky. But most observers think AI’s time has come, and most companies should at least start investigating.

“I think we’re just scratching the surface,” PepsiCo’s Bagavathi says. “We’re going to keep seeing more ways AI will simplify our lives and make us more productive.”

As always, the human element is a critical piece of the puzzle. An AI system is only as good as the information fed into it … by humans. And all the information that program churns out is useless if people are unwilling to learn alongside the technology. Companies need a plan that addresses how teams will use AI long term.

Source foodprocessing.com

How restaurant operators can protect themselves from tech outages
Both Panera and McDonald’s suffered major, systemwide IT system outages this month: Can these disruptive system failures be prevented?

Earlier this month, McDonald’s experienced a systemwide tech outage in several of the company’s global markets, including Australia, the United Kingdom, Japan and Hong Kong. Although the company clarified that the IT outage was not a result of a cybersecurity threat, it took much of the day to fix and get mobile ordering and kiosks back online.

Then, a couple of weeks later, on March 24, Panera Bread also experienced a “massive tech outage” that impacted online ordering, POS systems, and in-store kiosks, as first reported by Silicon Valley Daily, though the company was not as forthcoming as McDonald’s had been about the cause, and Reddit users in the Panera community speculated that it could be a cyberattack of some kind. According to Restaurant Business, stores continued to operate while systems were still down by Monday. Panera IT teams assured users on the website that, “We’re working on it. Ovens are warm, bread is baked and our team is ready to serve you in our bakery cafes,” while the app noted that the system was experiencing “essential system maintenance and enhancements.”

Although few details were revealed about either the McDonald’s or Panera outages, the reality is that widespread IT outage can affect operators of any size, and restaurants need to deploy resources from preventing (as much as they can) these issues from happening in the first place.

“In today’s digitally driven world, restaurants heavily rely on technology to streamline operations and enhance customer experiences,” Carissa De Santis, chief technology officer of BRIX Holdings, said. “The recent news stories on high-profile outages at large companies like McDonalds and Panera serve to remind all of us of the vulnerabilities in digital systems. These incidents not only disrupt normal operations but also tarnish brand reputation and can incur significant financial losses.”

De Santis suggested that since most restaurant tech stacks are more complicated these days than they once were, that IT teams need to be careful to select vendors with regularly defined service level agreements and performance monitoring so that they can easily track potential issues with systems.

Other safeguards include investing in redundancy measures and backup systems where certain system components are intentionally duplicated so that there is a backup in case one system goes down. De Santis also suggests deploying failover mechanisms where a server switches to a backup in case of a failure or outage. It’s also crucial to constantly test protocols to determine the amount of load a system can take before issues occur, she added.

Savneet Singh, CEO of PAR Technology, added that ongoing cybersecurity training for personnel outside of the IT team is crucial so that staff can learn to recognize threats and avoid falling prey to phishing attempts or other cybersecurity pitfalls, if indeed, Panera’s issues were due to cyberattacks.

“Preventing IT outages isn’t just the responsibility of the tech team – it’s everyone’s job,” Singh said. “Leaders need to build this understanding in their culture to ensure everyone is working towards a safe environment and is working in partnership with IT. Additionally, I think IT teams can work to rationalize vendors and build around a more consistent platform, thereby cutting vendors and limiting entry points for bad actors…. By making cybersecurity a prioritized habit across the entire organization, restaurants can drastically reduce their odds of crippling IT disruptions.”

Source nrn.com

New App to Assist Farmers in Forecasting
Predictive planning using simulated weather, cropping, market and farm conditions.

COLLEGE STATION, Texas — Being able to see into the future would be a handy trick for anybody, but that ability could be indispensable in helping farmers navigate the ups and downs of Mother Nature and markets.

Scientists with Texas A&M AgriLife Research in the Texas A&M College of Agriculture and Life Sciences are developing a tool that could give agricultural producers a glimpse into the future for planning purposes.

Raghavan Srinivasan, Ph.D., professor in the Texas A&M Department of Ecology and Conservation Biology and Biological and Agricultural Engineering, who received more than $750,000 in grant funding from the National Institute of Food and Agriculture, is leading a team to develop an integrated decision support system, IDSS — a modeling tool that can forecast potential cropping conditions and economic results for producers.

The tool will utilize existing technology, data collection tools and data, including weather, market prices, farm production costs and revenues, water conservation practices and water movement through watersheds to project scenario-based outcomes for producer operations based on possible fluctuations within those factors.

“It would be an incredibly powerful tool for farmers and agricultural operations to have in their toolbox,” Srinivasan said. “This tool won’t tell us the future, but it will give us the range of potential outcomes based on factors like continuing drought or changes in input costs or commodity market conditions. The goal is to help farmers consider economic, environmental and production challenges together in one place.”

Modeling app development underway
This type of tool could be especially valuable because producers in the U.S. and around the world are facing challenges related to increasingly variable weather, including droughts.

The team, which includes researchers Jean-Claude Bizimana, Ph.D.; Samuel Zapata, Ph.D., and Anthony Baffoe-Bonnie, Ph.D., all with the Texas A&M Department of Agricultural Economics, and a water resource engineering expert from Oregon State University, plans to develop an IDSS, ECO-HAWQS@Farm, that tightly couples economic and watershed models within an accessible user interface.

The new application is expected to give producers the ability to have insights on potential outcomes and plan in ways that help mitigate risks, Bizimana said. The project will test the performance of ECO-HAWQS by working with small- and medium-sized farming operations in Texas’ Lower Rio Grande Valley and Oregon’s Umatilla River Basin.

Bizimana said team members are engaging with a “focus group” of growers in the Rio Grande Valley to assess factors like acreage, cropping options and rotations, and the use of conservation practices like cover crops or no-till cropping. Researchers’ discussions with growers will help them set parameters for the new application in ways that provide useful decision support in “real-world” conditions.

The research team is close to having enough feedback from farmers and is ready to input data. The next step will be to engage with a larger pool of farmers in the region with small- to medium-sized operations to expand the model’s datasets, Bizimana said.

Bizimana said the goal is to produce a decision support tool that growers across the country and globe can access and use easily.

“We’ll be recruiting farmers for feedback,” he said. “We’re in the early stages of the project, but we all understand the value a tool like this represents for growers, especially smaller operations, to capitalize on opportunities and avoid major setbacks.”

Source foodmanufacturing.com

Jan/San & Disposables

Sabert Launches Compostable Pulp Trays
Providing foodservice operators with a sustainable alternative to traditional foam trays.

SAYREVILLE, N.J. – Sabert Corporation, a leading global manufacturer of innovative food packaging solutions, on Tuesday announced the launch of its new line of pulp protein and produce trays.

This certified commercially compostable packaging solution provides foodservice operators with a sustainable alternative to traditional foam trays without compromising on quality and performance.

The Pulp 2S Produce Tray caters to the growing consumer trend of hybrid cooking, blending meal planning, meal kits and ready-to-eat items. This tray is ideal for full or cut vegetables and fruits and fresh meal ingredients. Engineered with Sabert’s Pulp Plus molded fiber blend, the Pulp Produce Tray is refrigerator safe for up to seven days.

The Pulp 3P Protein Tray is suitable for a wide range of proteins, including chicken, beef, steak, seafood, and plant-based alternatives. Crafted with Sabert’s new proprietary Pulp Ultra coated formulation, this tray offers unparalleled moisture protection, ensuring oil-heavy food items remain fresh. The Pulp Protein Tray is designed to be refrigerator-safe for up to 30 days, surpassing the average supermarket shelf life.

“Our new Pulp Produce and Protein Trays are the perfect example of Sabert’s mission-driven purpose of reinventing food packaging to nourish and protect our world,” said Stephny Halstead, vice president, marketing and new product development at Sabert. “The trays combine sustainability, versatility and durability, helping retailers and operators meet the growing demand for environmentally responsible solutions that still deliver food protection, preservation and presentation.”

Sabert’s Pulp 2S Produce and 3P Protein Trays offer significant advantages:

Sustainability: The compostable PFAS-Free pulp trays are an eco-friendly alternative to traditional foam, bio-based and derived from renewable resources and supporting a circular solution with sustainable end-of-life disposal.

Superior Performance: The Pulp 3P Protein Tray with the Pulp Ultra formulation delivers ultimate grease and moisture resistance, maintaining its integrity against natural fats and oils often found in proteins. The Pulp 2S Produce Tray is formulated to accommodate both whole and sliced fruits and vegetables.

Durability: Strong and durable construction withstands heavier food applications.
Versatility: Both trays can be overwrapped or film-sealed for easy integration into current supermarket operations.

Merchandising: The natural substrate compliments vibrant food colors, enhancing food appeal while showcasing a commitment to sustainable practices.

Source foodmanufacturing.com

Wine Club Announces Eco-Friendly Packaging
Firstleaf says lighter glass and packaging materials lowers the weight of its shipments.

NAPA, Calif. — Firstleaf on Tuesday announces a partnership with Saxco, the premier provider of packaging solutions to the wine, beer, liquor and food industries.

Through supply chain partners like Saxco, Firstleaf is able to reduce its environmental impact by using lighter glass and packaging materials, ultimately lowering the weight of each shipment and marking a significant step forward in the brand’s sustainability efforts.

Firstleaf has already surpassed Sustainable Winegrowing Program’s directive to decrease glass bottle weights from 550 grams and heavier to 420 grams by the end of 2025. Through an internal study aimed at optimizing the company’s packaging efficiency, Firstleaf has consistently exceeded industry standards, with nearly 100% of its glass weight now lighter than the suggested 420-gram benchmark, with some molds even reaching as low as 395 grams.

“Firstleaf is deeply committed to integrating sustainable practices into our operations,” said Philip James, founder and CEO at Firstleaf. “By establishing new benchmarks for packaging efficiency and environmental stewardship, we continue to be dedicated to delivering exceptional wines while preserving the planet for future generations.”

Firstleaf’s dedication to sustainability extends beyond packaging, encompassing all aspects of its operations. By prioritizing efficiency in raw materials and manufacturing, rigorous crush testing, optimized shipping and handling practices, and easy recyclability, Firstleaf aims to minimize its environmental footprint while delivering exceptional wines to its members.

Moreover, Firstleaf has proudly supported Wine To Water (WTW) as its official charity partner since 2019. Through half a million dollars in donations, Firstleaf has enabled WTW to deploy 61,300 membrane filters worldwide, reducing the need for 66 million plastic bottles which is equivalent to more than 2 million pounds of plastic. Additionally, Firstleaf donations support WTW’s community water programs in regions like the Dominican Republic and the Amazon, where bottled water is often used to circumvent local contaminated water sources.

“As we commemorate Earth Month, Firstleaf remains steadfast in our commitment to sustainability and social responsibility,” said Carolin Meier, chief wine officer at Firstleaf. “Through our partnership with Saxco and our continued support of Wine To Water, we aim to lead by example, driving positive change in the wine industry and beyond.”

Source foodmanufacturing.com

Sodexo Expands Foodservice Presence in China
Sodexo has completed the acquisition of the Compass Mainland China business.

In a market with undeniable long term growth potential, this acquisition strengthens Sodexo’s position in Food markets, enhancing its presence and service offerings in Mainland China with newly acquired contracts in the corporate, education, and healthcare environments.

Following this operation, Sodexo’s 17,000 employees across 950 operational sites will serve more than 1.2 million consumers daily. Since entering the Chinese market in 1995, Sodexo China has developed successfully its operations to serve the China market and its unique consumer demands. Today, Sodexo continues to pursue its ambition to be the global leader in sustainable food and valued experience, while contributing, in line with its values and fundamentals, to have an economic, social and environmental positive impact.

The integration phase has officially commenced. Sodexo China is committed to working closely with clients, suppliers, and employees across Mainland China to ensure a smooth transition, strong synergies and improved services for clients and consumers.

Source cleanlink.com

Industry Spotlight

Job growth zoomed in March as payrolls jumped by 303,000 and unemployment dropped to 3.8%
Job creation in March easily topped expectations in a sign of continued acceleration for what has been a bustling and resilient labor market.

Nonfarm payrolls increased 303,000 for the month, well above the Dow Jones estimate for a rise of 200,000 and higher than the downwardly revised 270,000 gain in February, the Labor Department’s Bureau of Labor Statistics reported Friday.

The unemployment rate edged lower to 3.8%, as expected, even though the labor force participation rate moved higher to 62.7%, a gain of 0.2 percentage point from February. A broader measure that includes discouraged workers and those holding part-time positions for economic reasons held steady at 7.3%.

In the key average hourly earnings measure, wages rose 0.3% for the month and 4.1% from a year ago, both in line with Wall Street estimates.

Growth came from many of the usual sectors that have powered gains in recent months. Health care led with 72,000, followed by government (71,000), leisure and hospitality (49,000), and construction (39,000). Retail trade contributed 18,000 while the “other services” category added 16,000.

The February revision was just 5,000 lower while the January revision brought that total up by 27,000 to 256,000, still well below the initial estimate of 353,000.

“This is another really strong report,” said Lauren Goodwin, economist and chief market strategist at New York Life Investments. “This report and the February report showed some broadening in terms of job creation, which is a very good sign.”

Despite the move lower in the broader unemployment level, the rate for Black people surged to 6.4%, a gain of 0.8 percentage point, tying the highest level since August 2022. Rates for Asians and Hispanics both fell sharply to 2.5% and 4.5%, respectively.

A string of positive gains has kept unemployment below 4% since January 2022, though there have been some signs of cracks. For instance the level of household employment had grown only modestly over the past year, while temporary employment has declined sharply.

However, the household survey, which is used to calculate the unemployment rate, posted an even more robust gain in March, up 498,000, more than absorbing the 469,000 increase in the civilian labor force level.

Gains tilted heavily to part-time workers in the household survey. Full-time workers fell by 6,000, while part-timers increased by 691,000. Multiple job holders rose by 217,000, to 5.2% of the total employment level.

Markets have been keeping close watch over the employment data particularly as the Federal Reserve weighs its next moves on monetary policy. Stocks have tumbled this week amid concerns that a strong labor market and resilient economy could keep the central bank on hold for longer than expected.

Stock market futures rose following the report while Treasury yields also added to gains.

The Fed is looking to guide inflation back down to 2% annually, a goal that has proven elusive even as the rate of price gains has decelerated from its peak in mid-2022. Most measures have inflation running above 3%, though the Fed’s preferred gauge is below that level.

Market pricing is pointing toward the first interest rate cut coming in June, though several Fed officials, including Chair Jerome Powell, this week indicated they prefer to take a cautious data-dependent approach. The BLS on Wednesday is scheduled to release its consumer price index reading for March.

Source cnbc.com

Walmart to Pay Millions in Settlement Over Grocery Prices
A class action lawsuit alleged that shoppers paid more than the lowest advertised price for some items.

NEW YORK (AP) — If you purchased some weighted groceries or bagged fruit at Walmart in recent years, you may be eligible for a cash payment from a class action settlement with the retailer.

The class action lawsuit, first filed in October 2022, alleges that Walmart shoppers across the U.S. and Puerto Rico who purchased certain sold-by-weight meat and seafood as well as select citrus sold in bulk bags paid more than the lowest price advertised in stores.

Walmart has denied any wrongdoing — but agreed to pay $45 million to settle the litigation. That means that impacted consumers can now submit claims for cash payments.

“We will continue providing our customers everyday low prices to help them save money on the products they want and need,” a spokesperson for the Bentonville, Arkansas, company stated. “We still deny the allegations, however we believe a settlement is in the best interest of both parties.”

Consumers can learn more about submitting a claim and the products that are covered on the settlement administrator’s website. Cash payments are available for anyone who purchased these certain weighted meat, seafood and bagged citrus products — which includes select oranges, grapefruit and tangerines — at Walmart in the U.S. and Puerto Rico between October 19, 2018 and January 19, 2024.

Payments will range in amount depending on each claim. It’s possible to get some money even if you don’t have a purchase receipt anymore.

Consumers without a proof of purchase can receive between $10 and $25, depending on how many eligible products they attest to buying during the settlement class period. Meanwhile, those with receipts or other documentation could be entitled to get 2% of the total cost for each product they purchased — at up to $500.

Approved claimants will receive their payments electronically through Venmo, Zelle, ACH or a virtual pre-paid MasterCard — but paper checks can also be requested those unable to receive payments electronically.

The deadline to submit a claim is June 5, with a final approval hearing set for June 12. Objections and other comments to the settlement can be made through May 22.

Source foodmanufacturing.com

Chipotle, Starbucks and more raise prices by as much as 7-8% in California
Restaurant chains and California franchisees are making the tough decision to increase prices and cut hours in light of the state’s new $20 minimum wage

In light of California’s new $20 minimum wage bill for fast-food workers, which went into effect on April 1, restaurant chains and franchisees are already taking action, in some cases by raising prices by as much as 7-8% for select menu items in the state.

Analysts Eric Gonzalez of Keybanc and Mark Kalinowski scraped data and researched pricing trends over the past couple of months at major restaurant chains to determine how much menu prices have been impacted by surge in labor costs in the state. All eyes are on companies like Chipotle and Starbucks especially, as these brands do not franchise (which is historically an industry anomaly).

According to Kalinowski’s research (which sampled 25 Chipotle restaurants in California), the price of a Chipotle chicken burrito went up 8.3% from February to April, while the cost of a steak burrito increased by 7%. This research is in line with Gonzalez’s analysis, which suggests that pricing at most Chipotle’s 476 stores in California increased by 7-8%. Gonzalez said that Chipotle is actually an unusual case because the company has undervalued its menu prices in the state to compete with the proliferation of other burrito options in California.

“Chipotle is unique because they’re one of the few brands that has had positive traffic, and they have pricing power because the Chipotle chicken burrito going for under $10 is a great deal,” Gonzalez said, adding that the burrito is actually $10.27 at most stores now. “People probably could not find a similarly priced alternative…. So, they’re in the unique position where they can actually offset the cost of the labor.”

Chipotle confirmed the new pricing strategy in California with NRN, with a company spokesperson stating that the company has “implemented a statewide price increase in light of new legislation in California” like other restaurants in the quick-service category.

Starbucks has similarly reported steady traffic growth in most of the company’s recent quarters, and also took significant pricing in the leadup to the new California minimum wage. According to Kalinowski’s research, Starbucks prices at a sample size of 20 California states increased by about 7% on average from February to April. One menu item (a venti iced caramel macchiato) now costs 8.4% more than it did two months ago, while on the other end of the scale, a venti caffe latte costs about 5.5% more than it used to.

More than one-third of menu items at company-owned Starbucks stores have not notably changed price and the average increase for those that did was less than a dollar.

Starbucks confirmed with NRN that it took these price increases along with “a variety of [other] levers” including technology-driven store efficiencies to “offset the investment in [their] partners.”

“A lot of what any particular restaurant can do depends on the strength of the concept,” Mark Kalinowski told NRN. “Concepts with great unit economics such as McDonald’s, Chipotle, and Chick-fil-A have nice advantages in that regard. That doesn’t mean this new law isn’t a net negative for the owners of these restaurants, but simply that all else being equal, they are better off fighting against the higher labor costs than concepts with relatively weaker unit economics.”

Franchising restaurants are, of course, a different story than Chipotle and Starbucks, operationally. Parent companies cannot dictate the pricing choices of their franchisees, and it appears that many of them have chosen to take much more moderate pricing increases in comparison, like Taco Bell, which was reported at about 3%, McDonald’s, which took negligible pricing over the past couple of months, and Burger King, whose franchisees took a 2% price hike on average.

The only anomaly here is Wendy’s, whose franchisees chose to increase prices by about 8%, according to Kalinowski’s research sample size, with the percentage change of a classic chicken sandwich combo reaching double-digits since February. A spokesperson for Wendy’s did not respond to media inquiry in time for publication of this story.

Whether California-based franchisees lean heavily into raising prices like Wendy’s franchisees seem to have, or whether they take a “wait and see” approach like McDonald’s franchisees, there is no easy solution for offsetting these new labor costs, especially for smaller brands that don’t have the same fiscal backing as McDonald’s or Starbucks.

“I own two Vitality Bowls restaurants in San Jose, and the new minimum wage is a big cost hit for my family’s small business,” franchisee Brian Hom told NRN. “We’ve cut worker hours and I’m not replacing people who have left. I raised prices April 1, but I’m really concerned because I’ve seen a drop-off in customer transactions since the beginning of the year due to customers cutting back due to inflation. I’m worried we might not make it.”

Although the new California law currently only affects employees at fast-food chains with more than 60 locations, there is a significant difference between a small business owner who owns two units of the 130-storeVitality Bowls concept, and a regional McDonald’s franchisee that might own hundreds of stores. Kalinowski suggests that franchisees diversify their holdings geographically, while for parent companies, refranchising might be a more attractive option.

“A large franchisee with restaurants in 20+ states will have an easier go of it than a small franchisee with one to three restaurants, all in California,” he said. “If you can find somebody willing to buy all of your California restaurants, and you want to buy some other restaurants in a business-friendly state with lower tax rates, that isn’t the worst approach in the world, either.”

Source nrn.com

Papa Johns signs agreement with Bajco Group to open 50 US restaurants
The new agreement will see expansion of the brand in the Midwest, Arizona, Pennsylvania and Florida.

Papa John’s International has unveiled plans to open 50 more US restaurants by 2028 through a new agreement with franchisee Nadeem Bajwa and his company, the Bajco Group.

The move is part of a broader strategy to increase the brand’s presence in key markets and is aligned with the Bajco Group’s objective to own 500 Papa Johns outlets. The group currently operates more than 200.

Bajwa said: “Signing this deal, I am as excited today as I was 20 years ago when I opened my first restaurant.

“Papa Johns is not just about business. My team members are my family – and that’s a whole different ballgame.

“I’m proud that in partnership with Papa Johns, I have been able to pursue my own aspiration, and watch my own team members go from starting their first jobs to becoming leaders.”

Source verdictfoodservice.com