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Welcome Gje,
Here's your June 24, 2011 edition of Technomic's Foodservice Monitor. We always welcome your feedback. |
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Foodservice Trends within Colleges & Universities
For staying in touch with the college foodservice scene, Technomic’s College & Universities Insight Group is your answer. Reports and 24-7 access to our profile database provide up to the minute data and information. |
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CHAIN NEWS – Performance |
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Juice It Up! bounces back After closing almost half of its units since 2008, the Juice It Up! smoothie chain plans to start growing after re-inventing the brand with a focus on fresh juices.
In 2008, Irvine, Calif.-based Juice It Up! was one of the top smoothie brands out of California, behind Jamba Juice and Robeks, with 189 locations at that point. The recession, however, hit Juice It Up! hard, said Frank Easterbrook, chief executive of Balboa Brands Inc., the chain’s operating company. “After the financial meltdown occurred, customers just went away,” Easterbrook said. “Treat products became pretty discretionary.”
Over the next three years, the chain closed 79 locations and the company focused on helping the mostly franchised chain survive. Easterbrook said they helped franchisees renegotiate leases or restructure loans, and in some cases reduced or waived royalty payments.
| Nation's Restaurant News 06/24/11 |
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CHAIN NEWS – Marketing |
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No bikinis: CKE launches new ad campaign Carl’s Jr. and sister brand Hardee’s on Thursday launched a new advertising campaign for the new hand-breaded chicken filet sandwich that has a noticeable lack of hot models in bikinis.
CKE Restaurants Inc., the parent of the two quick-service brands, has long been known for sexy advertising that appeals to its key demographic of “young, hungry men.” Earlier this year, for example, the introduction of new turkey burgers was promoted with TV ads featuring a voluptuous beauty queen — Miss Turkey — wearing a “turkey print” bikini and, of course, eating a turkey burger. The new ad campaign for the chicken filet sandwich features an adorable robot who returns home from work and sits down to enjoy the sandwich — only to realize that he doesn’t actually have a mouth with which to eat it. The message is: “If machines can’t eat it, machines shouldn’t make it.”
| Nation's Restaurant News 06/23/11 |
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McDonald’s picks its ‘Perfect Pair’ McDonald's has named the winners of its Perfect Pair Contest, which began in May. Jamilah Lemieux and David Giles of Brooklyn, N.Y. were voted by fans to receive the grand prize for the contest, which asked consumers to share via Twitter why they are as perfect a pair as the strawberry and tart lemon in the new McCafe Frozen Strawberry Lemonade.
Lemieux and Giles will split the prize of $5,000 cash and a $5,000 vacation voucher for a trip of their choice.
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Frankie & Fanucci’s Wood Oven Pizzeria Wins Two “Best of Westchester 2011” Awards Frankie & Fanucci’s Wood Oven Pizzeria, with locations in both Mamaroneck and Hartsdale, New York, today announced that it has been selected by Westchester Magazine’s readers as Westchester’s “Best New Restaurant” and “Best Pizza” for the publication’s “Best of Westchester 2011” annual awards.
“Frankie & Fanucci’s is honored to have won these two coveted awards from Westchester Magazine. We look forward to celebrating and thanking the community for all its support by throwing a good old fashioned pizza party on Monday, July 11th,” said Fanucci. “Everyone will get to try Westchester’s best pizza for just a buck!” During its celebratory pizza party on July 11th, Frankie & Fanucci’s will be offering 10 inch personal margherita pies for only $1 – usually $9.95 each. The festivities will run from 5 p.m. to 10 p.m. (or while the dough lasts!). Other details: Limit of (1) pie per person. Dine-in only. Offer may not be combined with any other promotions/discounts. Toppings may be added for an additional cost.
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McAlister’s Deli brings back successful Tea Town promo McAlister’s Deli and its 2011 Beverage of Summer promotion is again searching for Tea Town USA, its biggest summer promotion to date. McAlister’s will use its sizable Tea Freaks Facebook fan base in conjunction with in-restaurant promotional materials to have guests vote online at www.teatownusa.com to enter their town to win the title of Tea Town USA. This year’s contest has several changes, including the ability for guests to “earn” their town an additional two points per day by checking in through a smartphone in-restaurant and by uploading a snapshot to the weekly photo challenges. The top 10 towns will win donations for their chosen nonprofit organization with the winner of the title of Tea Town USA earning $7,500 for its chosen organization.
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National Restaurant Association Congratulates Nebraska's Runza Restaurants for Runner-Up Finish in Nationwide Food Competition The National Restaurant Association is a sponsor of Roll Call’s “Taste of America,” an online voting competition which began with 64 foods from across the country. The four finalists—Nebraska’s Runza Sandwich, Georgia’s peaches, Maine’s lobster and the Northern Mariana Islands’ coconut—were honored at a reception at Chef Spike Mendelsohn’s We, the Pizza restaurant in Washington Tuesday night.
| Restaurant News Resource 6/23/11 |
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CHAIN NEWS – Expansion |
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Bruegger’s to develop Virginia Beach market Bruegger’s Enterprises Inc. has announced a development agreement with Virginia Bagels LLC to open six bakeries in Virginia Beach, Va., and surrounding neighborhoods. The new franchisee group joins a growing family of more than 300 bakeries in 26 states and Canada. The partners in Virginia Bagels bring in expertise in the areas of commercial real estate, hospitality, engineering and business development. They plan to open their first bakery in the Hampton Roads section of Tidewater later this year.
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California Pizza Kitchen Opens at Galerias Metepec in Mexico City, Mexico California Pizza Kitchen, Inc., a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, today announced the opening of its twelfth restaurant in Mexico. Opened by CPK franchise partner Grupo Calpik, S.A.P.I. de C.V., the new location is the first California Pizza Kitchen in Metepec, a city located east of the state capital, Toluca. The 4,650 square-foot CPK seats approximately 224 people and is located on the first floor, near the main entrance of Galerias Metepec shopping center. Home to more than 130 retail stores, Galerias Metepec is anchored by popular outlets such as Lacoste, Bebe, Liverpool, and Sears.
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Dickey's Barbecue Pit Opens Newest Location in Queensbury, NY Texas-based Dickey's Barbecue Pit, the largest quick serve barbecue restaurant in the country, opens the doors to its new location in Queensbury, located at 756 Upper Glen Street. "We are excited to open our second location in the Queensbury area. New York is a great place to work, do business and now, eat barbecue," Franchise Owner Reid Grubbs said. "I can't wait for the community to come out and see what Dickey's barbecue is all about," Reid noted. Texas-based Dickey's Barbecue Pit opened in 1941 and began franchising in 1994. Dickey's Barbecue Pit is well-known for their hot pit-smoked signature meats, complimentary ice cream and the big yellow cups.
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Luna Grill Continues to Grow With Fifth Location to Open at EastLake Luna Grill has announced it will open its fifth location at EastLake in July, bringing "The Ultimate Kabobery" fast casual Mediterranean restaurant to San Diego's South County. When completed at the end of July, the 2227-square-foot restaurant designed by Taj Design, will seat 58 people inside and more people in a large common patio area outside. More than 20 employees will be hired to run the restaurant.
| Restaurant News Resource 6/23/11 |
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Russo’s to open in South Africa Fresh from his expansion success in The Middle East, restaurant owner Anthony Russo is bringing his Russo's concept to South Africa. "Expansion of my business is my way of sharing a good meal that is healthy for everyone everywhere in the world and at the same time creating business opportunities in South Africa," Russo said. Russo started franchising his New York pizzeria in 1992 and has since expanded his business to 28 locations in Texas and nearby states.
| Pizza Marketplace 06/24/11 |
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Sarku Japan debuts new freestanding concept Sarku Japan continues its ambitious domestic expansion plan with the opening of its new, freestanding concept in Capitol Heights, Md. The concept, called Teriyaki and Sushi Express, features made-to-order sushi with signature teriyaki recipes created on a Teppanyaki grill. The brand's tagline is "Fresh happens here."
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Wendy’s franchisee opens flagship in Moscow Wendy’s held festivities Thursday at its flagship restaurant in Moscow’s historic Arbat District to celebrate the quick-service burger brand’s entry into the Russian Federation this month.
That location is scheduled to open to the public on Friday. The flagship unit actually marks the second Wendy’s location to open in Russia this month. Wendy’s franchisee in Russia, Wenrus Restaurant Group, had opened the first Wendy’s there June 4 in the food court of Kapitoloy Vernadskogo, a shopping mall in Moscow.
| Nation's Restaurant News 06/23/11 |
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CHAIN NEWS – Menu |
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Boston's Restaurant & Sports Bar Launches New Bar & Drink Menu This month, Dallas-based Boston’s Restaurant & Sports Bar (Boston’s) launched its new bar and drink menu offering more than 70 alcoholic and non-alcoholic drink options, as well as a variety of appetizers and desserts, in all 52 U.S. and Mexico locations. Boston’s titled its new menu “All-Star Playbook” to tie into the contemporary sports bar atmosphere for which the two-in-one-concept is known. Just in time for summer, the expanded All-Star Playbook features a new tea and lemonade section, beer cocktails and a low-calorie skinny margarita in addition to traditional beer, wine and cocktail favorites.
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CHAIN NEWS – Personnel |
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Crumbs Holdings LLC, Announces the Appointment of Andrew J. Moger to Its Board of Directors 57th Street General Acquisition Corp., owner of Crumbs Holdings LLC, a national neighborhood bakery and the largest U.S.-based retailer of cupcakes, appointed Andrew J. Moger to the Company’s Board of Directors, effective June 3, 2011. Mr. Moger appointment to the Board fills a vacancy as a result of the increase in the size of the Board from 7 to 8 persons. Mr. Moger was also appointed to the Audit Committee of the Board. Andrew J. Moger is the founder of Branded Concept Development (BCD), an outsourced real estate and construction management firm for developing restaurant and retail concepts, and has been its President and CEO since its inception in September of 2001.
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CHAIN NEWS – Technology |
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Domino’s UK getting social To celebrate its new Stuffed Crust, Domino's UK has announced two social platform initiatives to spread the word – a location-based offer integrated with Facebook Deals and an Internet-based treasure hunt, Domino's Stuffed Crust Quest. The Facebook Deals promotion started June 23 and offers a free garlic pizza bread when Facebook users check in to any U.K. Domino's store and orders a Domino's Stuffed Crust. To claim, customers need to present the check-in screen on their mobile phones to their order takers. By checking in with their Facebook accounts, pizza lovers also can publish it back to Facebook and share it with friends.
| Pizza Marketplace 06/23/11 |
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YellowBrck iPhone App rewarding Free Family Dinners to Top 10 Users YellowBrck just announced that each month, starting in July, the top 10 YellowBrck users will be rewarded a gift certificate up to $100 for a free family dinner at a local restaurant. CEO Eli Mandelbaum explains, "The free family dinner is a promotion to reward parents for spending time with their kids and family."
At the end of every month YellowBrck will look at the users who have checked in to the most activities with their children. Based on the total number of check ins, YellowBrck will announce the winners. YellowBrck, a free iPhone app, allows moms and dads to meet up with nearby parents, keep tabs on what activities their friends are doing, and discover family-friendly places in their neighborhood, while saving on everyday items by offering discounts from local and online retailers.
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ANALYST CORNER |
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McDonald's Corp Mgmt upbeat & conveyed confidence in its ability to maintain strong trends. We dont see much in the way of big blockbuster product news in '11 to drive midsingle digit SSS seen in recent years, but we think US biz can maintain ~3% SSS momentum, with re-launches/line-extensions. 2-3% pricing in US for ’11 a bit higher than expected. Uneasiness about Europe probably overdone as German consumer historically volatile to global news.
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Analyst: Promotion fuels Red Lobster traffic, comps With Darden Restaurants Inc. poised to report fourth quarter earnings next week, a securities analyst said Red Lobster’s new $15 Seafood Feast limited time offer has caused a bump in wait times and traffic this month at the casual-dining seafood chain.
Jeff Omohundro, a Wells Fargo senior analyst in Richmond, Va., wrote that the performance of Red Lobster’s four-course menu promotion has strengthened his outlook for Red Lobster’s Orlando, Fla.-based parent company. The $15 Seafood Feast, which debuted May 31 and runs through July 25, includes soup, salad, entrée, dessert and unlimited biscuits. “We have seen a substantial pick-up in average wait times at Red Lobster since the May 31 rollout of the new Seafood Feast promotion,” Omohundro wrote. “Red Lobster wait times were up 10 minutes this week versus last week, while QTD [quarter to date] wait times are up seven minutes year over year.
| Nation's Restaurant News 06/23/11 |
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U.S. Restaurants: With Signs of Commodity Stabilization, Has the Outlook Changed for Restaurants? After surprising many restaurant companies to the upside earlier in the year, inflation momentum has slowed. Forward expectations have largely reflected this stabilizing trend, though there are some exceptions - notably among livestock. For our companies, most commodity baskets are indexed toward beef, implying we could see F11 commodity costs at the high end of the company ranges; coffee movements offer reason for cautious optimism for SBUX. We believe inflation is likely to moderate in late 2012, generally creating a healthy pricing environment for restaurants, but underscoring the continued need for positive comps to drive profit growth.
| Bernstein Research 06/24/11 |
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SUPPLIER NEWS |
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Bacardi Campaign Using Live Nation Platforms In an extension of its "Bacardi Together" campaign, Bacardi rum has launched a multi-platform effort employing Live Nation Entertainment's digital, mobile and social media properties. Live Nation owns Ticketmaster.com, as well as LiveNation.com. The "Best Shared Live" campaign is targeting 20-something consumers who enjoy nightlife and music by helping them plan summer activities and connect with one another, according to the brand.
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Diageo selling an organic vodka distilled in Plainfield, IL Diageo North America hopes to build a market for artisanal, organic white spirits through its Moon Mountain vodka, which is distilled in Plainfield. Moon Mountain costs $19.99 for a 750-milliliter bottle, making it more expensive than Smirnoff but cheaper than Grey Goose. It comes in raspberry and citrus flavors, in addition to the plain vodka.
Adam Rosen, brand director of vodkas at Diageo North America, said the company had been eyeing the rise of organic and artisanal products.
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ECONOMIC NEWS |
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Gross Domestic Product: First Quarter 2011 (Third Estimate) Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 1.9 percent in the first quarter of 2011, (that is, from the fourth quarter to the first quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 3.1 percent. The GDP estimate released today is based on more complete source data than were available for
the "second" estimate issued last month. In the second estimate, the increase in real GDP was 1.8
percent.
| Bureau of Economic Analysis 06/24/11 |
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