SheeFood

How to Appeal to the Most Lucrative Foodservice Target Market

We’ve all read too much on foodservice efforts targeting Millennials—adjusting menus, ingredients, sourcing and marketing to attract them. But there is a more profitable demographic worth its own consideration that looks at operations, the menu and marketing through a different lens. I’m going to call this demographic the corporate class. Others might call it business diners, but I’m thinking beyond the fact that business travelers have to eat somewhere. There is amazing income to be had from those who entertain clients, sometimes large groups, where cost is not an issue.

Given the good-food-at-any-cost approach they take to dinner out, you might think that a frequent diners program would not be a go-to marketing strategy. But if done mindfully, it sure could. How can you leverage the rewards program to get executives and sales reps to pick your place above all others to take clients? Points for dollars spent is one traditional way.

That’s just part of the non-cookie-cutter rewards program employed by Del Frisco’s Double Eagle Steakhouse. Its website explains the program, but not completely. One of the perks is VIP Rewards and Offers. Could that be a veiled reference to its Double Eagle Silver Coins? Oh yes. Each location, at the GM’s discretion, can give a loyal diner a Double Eagle coin (.999 fine silver one troy ounce). That’s worth something alone. But the goal is to collect one from each city where it’s offered (the city is on the coin). The end game is to collect them all, after which the collector is invited to Dallas to receive a gold coin from the owners.

How to get the GM’s attention when you visit is fascinating to me. One of my husband’s business friends takes his stack of silver coins to dinner and spreads them out on the table in front of him, which gets the servers’ attention, and the GM is soon at the table schmoozing. This leads to a fine dance in which another silver coin can be added to the stack.

The steakhouse chain can afford this because in its non-traditional methods, it charges guests $25 to join the rewards program.

But there’s a menu consideration in a strategy that targets corporate diners. It’s the vegetarian factor. And maybe not just any vegetarian. Consider the demographics of your area, and if, for example, there is a large IT presence where a lot of folks from India work, for the sake of the executives, add some vegetarian cuisine that would appeal to Indians (do your research. Paneer cheese ideas anyone?) It is a fact that when executives/sales people entertain clients and there is even one Indian in the group—that changes everything. A steakhouse with no fish or vegetarian options is out, sadly. Negate that costly business veto vote with a few menu items suitable to non-beef eaters and vegetarians.

And finally, catering has to be part of your strategy if you are targeting corporate diners. Be the go-to “order lunch in” place and do your menu research on what would be most appealing. Ever how healthful you make it, include an outrageous to-die-for dessert option. Be the place companies talk about for their corporate lunch meals.

Tell me what you think.

Jody

2019 Food and Foodservice Trends

It’s time to look ahead to 2019 and forecast the hot food trends. My way of distinguishing trend from fad is when the concept hits on several prevailing sensibilities. Here’s what I see ahead:

Local 3.0

Remember when “buy local” was all about the carbon footprint? With-it chefs purchased ingredients only within a 100-mile radius. That morphed into DIY produce. Chefs started rooftop or patio gardens and started buying farms and contracting with local farms. Well, meet the future—balance. Global flavors, ingredients and cuisines are fueling this new tempered local. Authentic ethnic requires ingredients that must be shipped in. Local will abide, but so will global sourcing.

Color: The beet goes on

I’m not the first to point out that Instagram is a taskmaster. For the sake of free photographic publicity, food must be eye candy, and thus colorful. Using natural color, of course. Beets were already booming, but for their vivid color, they have lasting power. Same with turmeric. Its stardom goes beyond its commanding yellow hue. It’s also ethnic and it’s a superfood. Butterfly pea tea powder/extract, anyone? That covers the blue and purple spectrum and is becoming quite popular in the beverage arena, especially as stenciled flowers on foam tops. It hasn’t received its publicity due, and I wonder if 2019 is the year the media starts talking about it.

Oat milk

This plant-based milk (which will likely have the milk regulated out of it) seems to have the best culinary power—more so than coconut milk and almond milk. Where creaminess and/or a health halo matters, oat milk is tops. It will continue its rise through 2019, not only in tea and coffee beverages, but in desserts.

Global citrus

I’m old enough to remember when the grocery store produce department was just one or two cases with no value-added product and only one lettuce, one apple and one orange variety. And no one knew any better. I think when it comes to citrus, we are on the cusp of a variety explosion, thanks to authentic Asian cuisines. Globally focused chefs are driving the introduction of more complex citrus flavors—like yuzu, pomelo and calamansi. Will this trickle down to the grocery store? Yes to those that are globally focused.

UH, NO

Just because I can, I’m going to point out two things that I predict will be a bust.

IHOP Pancake wear. The pancake chain just launched a line of pancake inspired merchandise. The company press release says, “From statement-making clothing to playful accessories—including exclusive holiday sweaters, kids gear and collectible pins—the online store was created so that all-day breakfast fans everywhere could show off their passion for pancakes.” Well, for starters, pancakes are not addictive. Any one of us can and do decide daily we won’t eat pancakes because A) we don’t have the time, ingredients or will to make them ourselves and B) only rarely will we go out and eat them. So, to say people are passionate about pancakes isn’t true to anywhere near the degree they would say they are passionate about Starbucks coffee. Now if Starbucks came out with a line of clothes, that might be something. But right now, that chain is focused on launching delivery. Meanwhile, IHOP is about to be disappointed. No one wants pancake wear.

Eclairs. I read one trend prediction that said, “Filled choux pastry will invade the U.S. market as the next macaron or cupcake.” Why? Because in France, the choux pastry has become increasingly popular. Do I need to point out that here in the U.S., we can’t even pronounce it? Besides, what does a choux pastry (éclair) have that a donut doesn’t? I have to push my buzzer on that trend prediction.

Tell me what you think.

Jody

Operators' Creative Juices Flow for Thanksgiving Promotions

Many of us would agree that of all the holidays, Thanksgiving is the least commercial, making it one of the most palatable annual occasions. I’m impressed with some of the unique Thanksgiving promotions several restaurant chains have come up with this year—pretty creative shticks for sure.

For Taco Bell, it’s not about the food. For what do Thanksgiving and tacos have in common? No, it’s about what to wear on Thanksgiving. They partnered with apparel company Tipsy Elves—the famous ugly sweater company launched via “Shark Tank”—to develop two Taco Bell/Thanksgiving-themed sweaters and leggings. So, if folks aren’t likely to eat tacos on Thanksgiving, they can at least wear a Taco Bell billboard. That, my friends, is thinking!

The next brainy promo belongs to White Castle. The chain unabashedly suggests tearing, chopping and folding a wad of White Castle sliders into the turkey stuffing. Back in 1991, an employee developed such a recipe, and it took off. Now White Castle freely promotes that turkey dressing recipe in hopes that people will flock to the restaurant (or the freezer case of the store where they can buy White Castle sliders) and stock up for that iconic holiday dish. Brilliant!

Just Salad came up with something ponderous. For November, they developed a Healthy Harvest Salad that they dub as “a nutritious take on Thanksgiving dinner” featuring a bowl of romaine and kale topped with roasted turkey, dried cranberries, quinoa, roasted sweet potatoes, roasted pumpkin seeds and goat cheese with balsamic vinaigrette. The ponderous part is that they’ve given this a cause-marketing spin. They looked at the calendar for November causes and went with Pancreatic Cancer Awareness Month. Thus, the chain is donating 10 percent of all proceeds from the sale of the Healthy Harvest Salad to Pancreatic Cancer Action Network “so you can eat well + do good all in one bite.” This, of course, will appeal to Millennials who like their dining dollars to do double duty.

Bob Evans geared up for Thanksgiving by conducting a consumer survey to put statistics to how much time, money and effort goes into Thanksgiving meal preparation. This has allowed them to present themselves as the cheaper/easier alternative. Their survey results indicate Americans spend on average $20-$30 per person. Ah, but customers can buy all the dishes from Bob Evans and take it home “starting at less than $10 per person.” Not only that, but the chain’s survey asked consumers to say how much they hate cleaning up (65% say it's their least favorite part about hosting Thanksgiving), to which Bob Evans says, “come eat here, and you don’t have to clean up at all!” I think the cleverness of all this was conducting research. It makes for a fact-based vs. hype-based press release, which is more likely to be picked up by publications.

Those are the creative Thanksgiving promotions I saw. Tell me what you saw.

Jody

Breakfast Cereal Has Legs

It’s refreshing to see that not all menu innovation is centered around functional food. Some of it is just fun. That was my thought when I read a blurb earlier this month about Carl’s Jr. and Hardee’s latest LTO—Froot Loops Mini Donuts. That is, mini donuts in the colors of Froot Loops, so they look like the cereal… in red, blue, green, purple and yellow. I bet they even use artificial coloring!

The company press release offers nostalgia as the thought behind the sugary-cereal-like donuts. It could just as easily have been a matter of indulgence, creative snacking or expanding the breakfast daypart.

Cereal itself is expanding across the menu—a breakfast dish-turned-ingredient—thinking outside the cereal box with still more life to give breakfast and brunch. And I’m not talking about granola, which is almost classified as a superfood. No. I mean all the other stuff lining the cereal aisle.

I noticed on the menu at Scratch Kitchen and Meatery in Honolulu Milk N Cereal Pancakes with a side of milk syrup. The pancake stack was topped with banana and strawberry slices, corn flakes and powdered sugar. A great way to get some crunch in there.

Anything that has to be batter-dipped for breakfast or brunch may as well be dredged in cereal. How about Cap’n Crunch-crusted French toast with a side of cereal milk custard and fresh strawberries. It’s on the menu at Culinary Dropout. On the brunch menu, chicken and waffles get a tweak with Rice Krispie-crusted chicken on a Belgian waffle with maple-bacon syrup as seen on the menu at Chicago’s Heaven on Seven.

Cereal breading goes right on through the menu for lunch and dinner, making for a great menu story and perhaps some social media traction. The Fried Avocado Wrap at Picasso on Paseo in Oklahoma City is possible because the avocado is corn flake crusted. The Chicken Sliders at BurGR are also corn flake crusted. Corn flakes are generic enough to take on the other chicken slider flavors of five spice, Sriracha mayo, pickled scallions and arugula.  

Desserts are where operators can go crazy with cereal. That’s because a successful dessert will be craveable and Instagramable. Even here, the crusted theme works for a dessert that is going to wow the guest as a fried version of its best self. Consider the Rolo’s Fried Ice Cream at Mugshots Grill & Bar, Tupelo, Miss. The vanilla ice cream scoops are rolled in Frosted Flakes, deep fried, drizzled with caramel and sprinkled with cinnamon sugar.

Famed food star Guy Fieri just opened his new Chicken Guy restaurant in Walt Disney World Resort with Cinnamon Apple on the dessert menu described as hand-spun vanilla soft-serve, crunchy cinnamon cereal and cinnamon-apple cereal with fresh whipped cream. (He’s using Apple Jacks.)

For a cupcake topping, how about Lucky Charms sprinkled on top of light green vanilla bean buttercream frosting? It’s the Lucky Charms Cupcake at Yummy Cupcakes.

Cereal-topped milkshakes are certainly photogenic, providing a wealth of LTOs for Steak ‘n Shake. The chain has come out with a Cinnamon Crunch Milkshake, Cocoa Krispies Milkshake, Froot Loops Milkshake and Frosted Flakes Milkshake.

Where can cereal go that it hasn’t been before? I was going to say ball park hotdogs. But at Progressive Field, the Cleveland Indians already thought of that and offered hot dogs loaded with mac n' cheese, bacon and Froot Loops.

Tell me what you think.

Jody

How Soon Before We See Loaded Coffee?

Given the now-recognized phenomenon that snacks are meals to a lot of folks, and I’d say that those operating coffee operations are in a sweet spot right now. That’s because today’s coffee is an addiction for some and a snack for others. Maybe an addictive snack.  

I’ve watched what has happened with coffee limited-time offers in the past year, and it is apparent that operators are investing R&D in candy-like coffee. Take McDonald’s McCafé coffee LTOs for instance. In March, it came out with Turtle Macchiato (chocolate, caramel and hazelnut flavors blended with milk and espresso, topped with a chocolate drizzle) and Iced Turtle Coffee (Iced coffee with chocolate, caramel and hazelnut flavors and a touch of cream). Pure snack, and pure sweet coffee, with the turtle moniker so no one misses the candy connection.

In my opinion… what took so long? My first job as a high schooler was at a donut shop. In the back, if the chocolate we used to ice the chocolate donuts was too thick, we poured hot coffee into it and stirred to revive. Coffee and chocolate are so similar that there is no off-putting flavor when combined. Now decades later, coffee operators are onto it in a marketable way (what we did in the back at the donut shop decades ago was our little secret).

More examples, in January, Caribou Coffee offered Cabin Bar Mocha—butterscotch melted into steamed milk and combined with espresso and peanut butter flavor, topped with chocolate whipped cream and chocolate chips. In March, Starbucks reached away from chocolate to other confections with its creative Crystal Ball Frappuccino LTO— “a crème-based Frappuccino infused with peach flavor and turquoise sparkles for a marbling effect. The magic happens when the peach-flavored whipped cream is sprinkled with one of three colored candy gems, each color signifying a different fortune in vivid blue, green, and purple.”

Now that the door has opened to combining candy and coffee, I think that in the spirit of loading, “freak coffee” is next. Freak shakes are already a trending thing. The examples above show we are almost there with coffee. Surely someone is taking note of what Checkers is doing with shakes. The chain features a Loaded Milkshake section. Thinking of their innovation, I expect to see coffee operators partnering with candy companies to come up with the next wave of hot and iced coffee snack/dessert LTOs. I’ll finish with Checkers’ recent loaded shake addition and ask… why can’t coffee do this?

Of its Caramel Cheesecake Crunch Made with Twix® Loaded Milkshake, Checkers declares on its menu: “a dialed-up version of our milkshakes made with vanilla milkshake blended with soft serve, rich caramel sauce, and crushed Twix® candy pieces. It’s then topped with Philadelphia® cheesecake filling and more Twix® candy pieces. Then, it’s all topped off with whipped cream and a cherry. Upgrade your Classic Milkshake to the new Caramel Cheesecake Crunch Made with Twix® Loaded Milkshake only at Checkers & Rally’s!”

Tell me what you think.

Jody

Crisps Add Variety Via Crunch

The best thing to happen to a dish is the incorporation of some crunch. I think Taco Bell’s Crunchwrap is a brilliant, marketable title. To the American palate, crunch is tops. Along the same line, so is crisp. In fact, a menu trend is to recast chips as crisps. Crisps sound a little more elevated, and perhaps fresher. After all, we know potato chips come in plastic bags. Crisps don’t carry the same baggage.

We will start seeing more crisps incorporated into dishes for a few reasons. Many of the seasoned chefs I interview for magazine articles explain their goal for a dish to “bang on all cylinders.” That means a dish must include various flavor components (sweet, salty, acidic, etc.) and various textures. Right now, it seems to be a fine-dining goal, but I believe it is spreading. Thus, adding something crispy to the dish makes for a well-rounded intriguing offering any segment can accomplish.

So, what is being crisped these days? An easy one is wonton crisps, and they aren’t relegated to Chinese dishes. Consider Orlando-based Joe’s American Bar and Grill’s Honey Chicken. It’s topped with mesclun greens, sesame noodles, diced tomato, toasted sesame seeds and wonton crisps—topped with honey Dijon dressing. Interesting combo.

Crispy shallots (an elevated version of crispy onions) are showing up as dish finishes. Root vegetables may not be everyone’s favorite, but crisped? Maybe guests think of them in terms of Veggie Straws in which they don’t even resemble their origins. And so I see taro root crisps atop the Coconut Lobster Bisque at The Dining Room in Little Torch Key, Fla. Crisped beets are an appetizer headliner at Narcissa in New York. Its Rotisserie-Crisped Beets also feature bulgur salad, apples and creamed horseradish.

Some are taking the track of bacon—crisped pork, after all. Nothing is better than that. And so, how about crisped pastrami on Smoked Hash? It’s at The General Muir in Atlanta. Cheese, we know, also makes for great crisping. Parmesan crisps have been around for ages.

But if you notice, most of the crisp action is happening at independent fine-dining restaurants where they have the time and labor power, unlike limited-service restaurants. But that segment is where I think we’ll start seeing more of this crispy texture play.

At the recent annual Institute of Food Technologists (IFT) Meeting & Food Expo in Chicago, Ardent Mills introduced whole grain crisps. They are available to the foodservice masses as Ancient & Heirloom Grains; Sustagrain Barley; and Quinoa. I imagine we’ll see these at salad chains and fast casual restaurants, probably as options in their customizable manner. It’s a brilliant line of BFY crisps to match the healthy ethos of many of these eateries.

I think we haven’t seen anything yet when it comes to crisps on the menu.

Tell me what you think.

Jody

Fries Remastered

To American’s, French fries have always belonged with burgers. Then operators woke up to what Canadian’s were successfully doing with them (adding cheese curds and pouring gravy over the top in poutine fashion), and the American loaded fries menu movement emerged.

But the next generation of fries is being fueled by the snacking “daypart” combined with the realization that American’s would die for crunch. The guaranteed method to deliver it is the tried-and-true fried potato. Taco Bell has its new Nacho Fries; Jack in the Box has three new types of loaded fries; and Arby’s made a loaded line extension of its curly fries. But where is it all going from here?

I’m impressed with Burger King’s latest—Chicken Fries. I heard about it and was in Hawaii this week looking at it on the Burger King menu board, ready to order. They didn’t have them yet. The chain promotes them as white chicken meat coated in a light crispy breading and seasoned with spices and herbs. Who would not want to order that? You know, chicken fingers are all that—but with an outdated name and shape. Could Burger King have just reinvented chicken fingers fry-style?

Let’s take this non-potato twist on fries to its next logical place. Keep in mind, we’re going with the crispy snack sensibility. Let’s add to it a better-for-you element, and wouldn’t you come up with crispy fried vegetables? We may not find this on a fast-food menu to start with. I think bar menus might be the place to take trendy vegetables, coat them, then fry for that crispy crunch everyone craves—and match it with a flavorful sauce.

The fried vegetable is hardly novel. Tempura-fried vegetables are standard on Japanese menus. But creative operators take an idea and make it their own—in this case with what they envision for specific vegetables, coatings and dipping sauces.

If the long, skinny, crunchy French fry feeling is important, then fried zucchini or fried pickles sliced lengthwise might be the choice vegetables. And indeed, zucchini is a pretty typical vegetable to coat and crisp.

If the hot vegetable of the moment is important, then sliced, coated and fried Brussels sprouts or beets will get the treatment next. Prospect restaurant in San Francisco serves fried Brussels sprouts with Caesar dressing and a garlic crouton on its bar menu. Chicago’s NoMi Kitchen found a way to fry kale crispy and serve it with preserved lemon.

The batter might be the stand-out for some operators. I would be curious to examine the Smoked Tomato Corn Cake Fries on the small-bites menu at Kachina Southwest Grill in Westminster, Colo. In Mill Creek, Wash., casual dining eatery Blazing Onion serves breaded artichoke hearts and zucchini that it describes as Parmesan-battered and crispy fried served with housemade ranch dressing.

I think among these upscale restaurants, vegetable fritters could go places on the snack menu. I just heard about artichoke fritters made with tarragon, honey and lemon aioli at Marshall’s Landing in Chicago.

I’m positive that with the freshening up of menus, we will see more blending of the indulgence of fries with the healthfulness of vegetables. Will this spread across all restaurant segments? We shall see.

Tell me what you think.

Jody Shee

How Big of a Deal is Calorie Posting?

The mandatory posting of calorie counts on menus of restaurants with 20+ units is finally upon us. It looks like there will be no more stays of execution, and May 7 will stick.

What’s the effect on the foodservice industry, and how will it impact what consumers order?

That’s not difficult to determine given that the calorie count requirement has hung over the industry since the 2010 Affordable Care Act, and many restaurant chains have been proactive in beating the elusive deadline. But it’s what else they’ve been up to that shows how the rule is affecting the industry. Here are a few observations, and I’ll just tell you, fruits and vegetables come up as saviors.

• Blended ingredients, anyone? Burgers have never had a low-calorie reputation, but with 500+ calories staring consumers in the face, re-evaluation became necessary. There’s the Mushroom Council to thank for pushing like crazy to blend beef with mushrooms and maintain that umami flavor while reducing calories. Sonic was the first fast-food operator to jump into this with its new Signature Slinger of which it says: SONIC Signature Slingers lets you get away with all the flavor of a cheeseburger with none of the guilt starting at $1.99. They are less than 350 calories. Sonic isn’t the first at this. Beef/mushroom blended burgers are showing up in college and university dining via the contract management companies that work hard at being cutting edge.
• How about cauliflower pizza crust? Granted, this is as much about gluten- and carb-sensitivity, but it’s also a path to reduced calories. Earlier this year Pie Five Pizza ran a cauliflower crust LTO, and California Pizza Kitchen came out with its own cauliflower crust option as a permanent addition.
• Try some Zoodles—spiralized zucchini “noodles.” These are just now emerging at national chains. While Olive Garden recently test-dabbled with Spiralized Veggie Pasta, this week Noodles & Co. announced its national permanent launch of zucchini noodles in two dishes, the new Zucchini Romesco and the Zucchini Thai Green Curry with Shrimp. Its press release states, “A regular portion of zucchini noodles has 90 percent fewer calories and carbs than a regular portion of elbow noodles, and all the flavor and taste guests have come to expect from noodles.”

It’s the rest of Noodles & Co.’s statement that shows a fortunate convergence that makes these produce-heavy, lower-calorie options more appealing than they would have been when I was growing up in the tree-hugger generation. “Plus, zoodles are packed with vitamin C and potassium and are gluten-free, vegan and vegetarian. Crisp and fresh zoodles are a perfect guilt-free swap for traditional noodles in any of our dishes.”

Today’s younger, more informed consumers want their food to do something for them. And often, that brings a lower-calorie benefit to the table.

So, what do consumers really think of the posting of calorie and nutrition information? When they eat out vs. making meals at home, aren’t they in more of an indulgent mood?

37% of consumers say they don’t care about the calorie count when ordering dishes, according to research company Mintel’s Restaurant Decision Making Process - US - December 2017 report.

On the other hand, according to the same report, but a year earlier in 2016, consumers were asked what types of menu characteristics appeal to them, and about the same percent (36%) said “offering nutritional information.” So, about one-third really care, and one-third really don’t.

Whatever the case, all operators know that unless they aim to serve a niche market, it’s important to offer indulgence and BFY options. But with the mandatory posting of calorie counts, look for more innovation with lower-calorie outcomes.

Tell me what you think.

Jody

Veggie Burgers 2.0

I find it remarkable that White Castle, which pretty much invented the slider years before mini burgers/sandwiches became a trend, may be the one to popularize veggie burgers to a new generation.

This week White Castle made the grand announcement that it was introducing the “Impossible Slider” to 140 of its restaurants in three states. I don’t know if that takes guts, or if that shows they are wise beyond their years.

Impossible Foods’ Impossible Burger and Beyond Meat’s Beyond Burger have been all over the news lately as operators are popping up with their plant-based burger announcements. White Castle's timing is actually perfect.

When I was growing up, veggie burger and Gardein were synonymous distasteful terms. Only flower children ate them. They had a beef with beef. Today’s beef is not so much with cows as with the way they are raised and the impact on the environment. My generation wouldn’t think much about these things, but today’s Millennial is aware and disapproves of the vast amount of water it takes to raise cows vs. produce plants. (Where did everyone collectively learn this?) These youngsters purchase with their environmental conscience.

Smart people (including investors) saw a market for this reasoning. Combine the science behind Impossible Foods’ development of plant-based patties made from wheat, coconut oil, potatoes and “heme,” etc., with its targeted marketing message, “Compared to cows, the Impossible Burger uses 95% less land, 74% less water, and creates 87% less greenhouse gas emissions,” and you have a business for the textbooks.

I don’t want to give all the glory to Impossible Foods. Beyond Meat has its own version of this success story with impressive investors to back it up—Leonardo DiCaprio, Bill Gates and McDonald’s former CEO Don Thompson. The Beyond Burger, which boasts of being cholesterol-, gluten- and soy-free and containing pea protein, has already made it into Applebee’s, TGI Fridays and Epic Burger. Watch for more Beyond Burger announcements among restaurants (until it becomes old news), considering that it’s on the Sysco order form now.

To the credit of both of these companies, apparently they achieved one of their highest goals. That was to create a burger that looks, smells, sizzles and tastes like a regular burger. Though I’ve never tried one, I talked to one independent restaurant operator who brought in the Beyond Burger, and within the first month, at least six customers sent the burger back because they thought they were accidently served a real beef burger.

He’s the one to whom I addressed my pressing question. Wouldn’t vegetarians push back on the idea of eating something that mimics real meat? But that question just shows my limited scope. Those who would order these meat-like plant-based burgers are not doing so because they are vegetarians. Today’s generation is completely open to plant-based foods while they are cutting back on beef—a well-researched and established fact.

And so I’m back to White Castle. They are wise to enter the Impossible Burger arena while everyone is still so curious and before the subject is worn-out, non-reported news. It was a great way for them to make a splash as the first fast food burger chain to carry the Impossible Burger. 

Tell me what you think.

Jody

Who is Going to Win This Race?

A fast food race is fully under way… A race to the bottom. Who can come the closest to practically giving the food away? The victor will come out smiling, while everyone else huffs and puffs for second place. Meanwhile, the economy is good, unemployment is down, tax breaks for businesses and people are encouraging. Why are we racing to the bottom?

I just read that Jack in the Box is switching from gourmet LTOs to value offerings. In just a few short months, it has gone from the Ribeye Burger to promoting several low-price bundles… something it plans to continue throughout 2018.

Is that a response to McDonald’s earlier hype over its $1, $2 and $3 menu items? Or Wendy’s “4 for $4” combo meals? Or Taco Bell’s $1 Cravings Menu? Or Subway’s Footlongs for $4.99? You see, if one starts racing, all others feel like they have no choice but to put on their track shoes.

This paltry pricing was common during the Great Recession. Operators must have poor memories. We all saw the glaring problem with cheap pricing. You almost can’t get out of the race to the bottom. It’s a customer-expectation free-fall that will end in a crash when the cheaps are over.  

Maybe operators are using their tax breaks to afford the cheap menus, hoping to draw value-seeking customers. But I think a better use of those tax break dollars would be to invest in employees, a great loyalty program, a new or better mobile ordering app, delivery vehicles and/or menu innovation. Read some surveys of what customers really want, besides low prices. You’ll find that it’s freshness, quality, innovation, and sustainability in all of its forms.

Ask another hard question: Do customers want cheap, or do they want flavor?

You’ll tell me not to be so naïve. Price is pretty much everything. OK, let’s talk price. When you offer these $1 and $2 meals, you’re setting the value of the food. But guess what, your customers would set a higher value than that. Do you know that studies show that men are willing to pay more for their food than women? Those studies also show that iGens and Millennials are also willing to pay more than the other generations for their food. If the food has perceivably premium ingredients, many will be willing to pay even more. 

I’m asking, what was wrong with the menu innovation strategy we were just in? Was it not working?

I do wonder what the economics are when an operator offers some bottom-dollar meals and some premium menu items. I can almost guess. They promote the cheap food (to the exclusion of the better stuff)—and that brings in the gold diggers who wouldn’t even look at a premium item.

Let’s aim higher. We were in that race. Don’t stop now!

Tell me what you think.

Jody