Welbilt agrees to be acquired by Ali Group after cash bid was deemed ‘superior’ to Middleby’s all-stock bid

Welbilt Inc. WBT, 0.13% announced Wednesday an agreement to be acquired by Ali Group S.r.l. in a cash deal that values the foodservice equipment company at about $3.40 billion. Under the terms of the agreement, Italy-based Ali Group will pay $24 for each Welbilt share outstanding. Welbilt had about 141.92 million shares outstanding as of May 3. That price is 3.1% above Tuesday’s closing price of $23.28 and was deemed “superior” to the all-stock buyout bid from Middleby Corp. MIDD, -0.49% made in April. Welbilt’s stock rose 0.3% in morning trading, while Middleby shares climbed 1.1%. Welbilt’s stock has now run up 76.7% year to date, while the S&P 500 SPX, -0.61% has tacked on 16.6%.

And the deals could keep coming at the Logan’s Roadhouse parent company  . . .

Alexander’s Acquisition Sign of ‘Incredible Year’ for SPB Hospitality

In the spring of 2020, CraftWorks Holdings was bankrupt and on the heels of closing 37 restaurants. COVID-19 forced the multi-concept group—rebranded in 2018 after its acquisition of Logan’s Roadhouse—to close all 261 of its corporate locations and terminate a majority of its 18,000 workforce. Court documents showed fewer than 25 employees remained “to help preserve, maintain, and secure … assets during the shutdown period.” CraftWorks’ dip was among the most dramatic in the pandemic’s early headlines. The Wall Street Journal, quoting “people familiar with the matter,” credited “a devastating collapse in consumer activity,” alongside state and local restrictions for the plummet. CraftWorks noted in a filing it was “mothballing” all stores and hoped it would be able to “restart … operations at some point in the future, but there are many preconditions to a restart, including the obtaining of financing, the hiring of staff, and the ability to create a coherent and profitable business plan.” It added, candidly: “The shutdown could persist for a prolonged period time, if not permanently.”

Suffice it to say, CraftWorks’ future was murky.

The bankruptcy omitted 77 franchised locations. But CraftWorks’ other 261 stores hit the block—a lineup that included Logan’s Roadhouse, Old Chicago, Gordon Biersch Brewery Restaurant, Rock Bottom Restaurant, BreweryBig River Grille & Brewing Works, ChopHouse & Brewery, A1A Ale Works, Ragtime Tavern Seafood & Grill, Seven Bridges Grille & Brewery, and Sing Sing, a Big-Bang dueling pianos concept. Fortress Investment Group ended up as the buyer, acquiring CraftWorks’ assets through a $93 million credit bid, or $45 million less than an original March agreement of $158 million. And with it came the emergence of the SPB Hospitality platform, a moniker for “Steak, Pizza, Beer.” If you want to talk turnarounds in the especially hard-hit restaurant business over the past 16 months, SPB CEO Jim Mazany says, just look at that March 2020 spell versus the summer period thus far. The restaurant industry experienced a flurry of M&A activity recently, with five deals struck in seven days. On the buyer-side most recently? SPB Hospitality, which acquired J. Alexander’s on July 2^nd for $220 million. “We have had just an incredible year,” Mazany says. “So between Logan’s Roadhouse and Old Chicago, and our brewery group, the company itself has had a tremendous transformation in our business model, which put us in a position to look for opportunities to acquire other brands.” Before the deal, SPB’s lineup consisted of Logan’s, Old Chicago, Rock Bottom, Gordon Biersch, ChopHouse & Brewery, A1A Ale Works, Twisted Tenders, Roadies Sliders, Ragtime Tavern, Seven Bridges, and Big River Grille & Brewing Works. J. Alexander’s tacked on 47 upscale restaurants across five concepts, including J. Alexander’s, Stoney River Steakhouse and Grill, Redlands Grill, Overland Park Grill, and Merus Grill. SPB’s portfolio is fast—and suddenly—becoming one of the sit-down sector’s widest and most diverse collection of brands. And it’s likely not done growing. Mazany says SPB has plans to scale J. Alexander’s, but also sees “possibilities for acquisitions to come into the SPB portfolio that make sense. That complements what we do. And that work within our strategies.” In other terms, SPB probably isn’t done buying. No matter how you label it, though, it’s a remarkable shift of direction for this family of brands. Before COVID, Logan’s in particular posted average-unit volumes of about $2.1–$2.2 million, Mazany says. Today, it’s north of $3 million. “We’ve seen great growth and market share within the segment that they operate,” he says of the steakhouse sector. “And we have been able to layer in some sales channels and growth vehicles that have really helped grow that average-unit volume. So you take a platform like Logan’s and you grow it at that number—that is absolutely something that has been really good for us as far as from a profitability perspective and return on investment.”

LOGAN’S ROADHOUSE

SPB’s Ember Smoked BBQ, a virtual brand operating out of Logan’s Roadhouse, has been its hottest release so far. J. Alexander’s recently rounded the corner on a significant turnaround of its own. The chain, public for nearly six years, indicated in summer 2019 it was seeking strategic alternatives to reboot the business. It retained investment banking firm Piper Sandler to facilitate a review of and said anything from a merger, sale, acquisition, share repurchase program, or strategic investment was on the table. The question at hand was if J. Alexander’s was truly big enough to be an efficient standalone company on the stock market. Piper Sandler contacted more than 125 potential buyers, and three emerged. One offered “a premium to the then-current market price,” but that changed once the pandemic dropped in. J. Alexander’s reduced its proposed purchase price multiple times and insisted on conditions relating to performance. For a bit, talks were shelved in favor of COVID-response tactics. But at last, sales lifted 5 percent in April versus 2019—the first time J. Alexander’s reported growth since coronavirus. At J. Alexander’s and Redland Grill, average weekly same-store sales per restaurant in Q1 lifted 3.1 percent year-over-year to $106,600, and at Stoney River Steakhouse and Grill, average weekly same-store sales upped 4 percent year-over-year to $75,300. If we go back to April 2020, comps at J. Alexander’s/Grill restaurants plunged 81 percent. Stoney River’s fell 78.3 percent. In May, the figures were negative 61.5 and 62 percent, respectively. By Q2 of last year, average weekly sales were $51,600 at J. Alexander’s/Grill and $35,000 at Stoney River. J. Alexander’s flipped the dial on digital marketing and email campaigns to drive awareness to off-premises. It added curbside service, invested in online ordering with ChowNow, and began offering family-style meals, as well as butcher shop sales of cook-at-home, hand-cut steaks. The company offered bottles of wines to-go, too, and tested delivery in certain markets. In response, off-premises-only sales during the week ended May 31, 2020, totaled about 29 percent of total take and were up roughly 35 percent over the week ended March 29, 2020, which was the first full stretch of primarily carryout-only sales. With dine-in returning, the channel held, mixing 16 percent of total net sales in Q1, or $720,000 in average weekly off-premises business. That’s only $10,000 fewer than what J. Alexander’s saw in Q4 2020. Mazany says talks of acquiring J. Alexander’s with SPB’s advisers began about four or five months ago. It really got on the company’s radar screen, he says, toward the end of 2020 when “we realized there was some really strong forward momentum in the company.” “From our performance, we were tracking ahead of our turnaround plan here,” he says. “And I think when we saw that opportunity, and we looked at how this year’s taken off for us, and this has been a great first six months of the year for SPB and all the brands—it really started to heat up at the end of the first quarter.” Personally, Mazany says he’s been a fan of the J. Alexander’s brand for some time. The company was founded in 1971 as Volunteer Capital Corporation by renowned entrepreneur Jack C. Massey, the principal shareholder, and two Nashville businessmen, Earl Beasley, Jr., and John Neff. Massey is the same restaurant maven who Colonel Harlan Sanders reportedly once offered $100,000 and half of the company’s profits to run KFC. In 1964, Massey and future Kentucky governor John Y. Brown paid $2 million for the chicken giant. They took it public in seven years, expanding the brand from 600 or so units to more than 3,500 globally. Massey made $45 million when the now Yum! Brands-run business was sold in 1971 to Heublein Inc. There are more than 25,000 KFCs today.

LOGAN’S ROADHOUSE. Logan’s Roadhouse has stuck to its value roots over the past year.

The Volunteer Capital story is a long and complex one, but the first J. Alexander’s unit, known for its contemporary American dishes and wood-fired cuisine, arrived in May 1991 in Nashville, Tennessee. Lonnie J. Stout II became chairman following Massey’s death in 1990 at the age of 85. “Where we saw the opportunity that they were looking for alternatives to sell, it was something that I actively wanted to pursue for us because I believe it’s a really good complement to what we do,” Mazany says. “And I think the brand fits in really nicely into our portfolio and we have plans for growth in all of our SPB brands. But specifically, as we look at this acquisition, we also have plans to grow the J. Alexander’s brand into the future.” To start, Mazany says J. Alexander’s does “a lot of things really well.” So this isn’t an overhaul project out of the gates. SPB can bring marketing expertise, purchasing power, operational chops, IT, and simply a backbone of being “really good restaurateurs,” he says. And if you look at the past year, SPB proved successful in launching virtual brands, devising new sales channels, and igniting revenue drivers across the board, like catering. It installed call centers where people answer the phone for to-go orders. It’s growing third-party delivery in every avenue. “So we find ourselves as really good brand stewards, understanding the DNA of each one of the brands we have in our group,” Mazany says. “And we support that DNA and give the brands the opportunity to grow under the leadership that we provide. And the financial stability.” “From a guest point of view, our satisfaction scores have never been higher across the board,” Mazany adds. “True operational excellence has been put into the company and I think our approach of how we think about the business and our guest and restaurateurs, I think, is a big change from our previous [situation].” SPB is approaching 10 months of sustained growth. A good roadmap for what might happen at J. Alexander’s would be what’s unfolded at Logan’s, where SPB took its core equities and amplified them. Namely, keeping prices down to separate from category peers. Logan’s average check clocks in at the $12–$13 range with steak offerings starting around $10. The average check at Outback, for comparison, was $23 in 2019, with 91 percent of the sales stemming from food and non-alcoholic beverages. Outback just recently unveiled, reflecting a shifting landscape. The per-guest average check for Texas Roadhouse that same calendar was $17.57. In October, Logan’s created an option for guests to customize meals and “Make it a Combo” by adding wood-grilled chicken, hand-cut salmon, shrimp, or crispy crab cakes to any entrée. It also added Southern Fried Fish to its dine-in “American Roadhouse Meals” menu, where guests can choose from a variety of hearty entrées served with two sides from 3–6 p.m. for $8.99. “The from-scratch cooking that we do at Logan’s, the way in which we operated as a roadhouse but with a more limited menu that’s more to the core of what our consumer really likes and wants, we have been rewarded with that as guests return, and our additional layers of sales that we put in place continue to grow,” Mazany says. More than 20 percent of revenue at Logan’s today hails from off-premises. Mazany believes it will reach 25–30 percent of total sales in time. Virtual brands have been strong as SPB, too. Twisted Tenders is a virtual concept that launched in December. A month or so ago, Ember Smoked BBQ was activated for third-party delivery in 19 states. There’s also Roadies, Logan’s on the Road, and OC (Old Chicago) on the Go. Mazany says the most recent iteration, which focuses on mesquite-wood smoked, grilled and seared entrées or burgers and handheld sandwiches, has been, by far, the “hottest of all the brand that we’ve had.” “I do think there will be a demand [for virtual brands after COVID] and I think one of the drivers of our success has been value,” he says. “The Logan’s price point and the value that we offer, all through the pandemic we have not been aggressive with price at all. We’ve held the line on our pricing, from pre-pandemic through the pandemic. Modest increases here and there when we faced some commodity pressure. But we really believe the value that we offer, not only in our virtual brands but within Logan’s itself, is a big driver of our success and we see that from our guest satisfaction scores, our guest intercepts, the feedback coming back of the value for the experience has been very strong for Logan’s.” – Source: fsr.

Libby’s BBQ now offers smoky, tender, saucy BBQ entrees . . . .

Ruby Tuesday Brings Virtual Concept to In-Store Menu

Ruby Tuesday announced the addition of Libby’s BBQ with a new feature menu this summer. Originally crafted in the Ruby Tuesday kitchen as a delivery-only concept, Libby’s BBQ offers smoky, tender, saucy BBQ entrees and is now available to order at all Ruby Tuesday locations for dine-in, Ruby TueGO and delivery for a limited time only. Now through September, Ruby Tuesday guests can try Libby’s BBQ entrees starting at $9.99. The all-new Libby’s BBQ menu includes tender, smoked beef brisket and pulled pork, available as an entree or a sandwich, and a new BBQ trio that boasts smoked brisket pulled pork and smoked sausage all in one dish. To complement the new lineup of BBQ entrees, guests can pair their meals with new sides including coleslaw, baked beans, and house-made potato salad, or choose a classic side like fries or tots. “This summer we welcome back gatherings with family and friends, and the flavors of the season like barbecue,” says Jenifer Boyd Harmon, chief marketing officer for Ruby Tuesday. “At Ruby Tuesday, we are known for our fresh Endless Garden Bar and our Fall-Off-The-Bone slow-cooked baby back ribs, making Libby’s BBQ a natural fit and giving our fans another great reason to dine with us. Whether in our restaurants or delivered to their backyards, we go wherever our guests are celebrating with fresh, affordable, and delicious food.” Guests can try Libby’s BBQ with Ruby’s signature BBQ sauce, Carolina BBQ sauce or Alabama White sauce at their neighborhood restaurant or take it home – Libby’s BBQ meals are made to travel and can be ordered through Ruby TueGo and local delivery partners for a convenient lunch or dinner to share with family and friends. In addition to the new Libby’s BBQ options, guests can always enjoy Ruby Tuesday signature menu items, including Fall-Off-The-Bone Tender Baby-Back Ribs, Asiago Bacon Chicken, Parmesan Shrimp Pasta and the Endless Garden Bar, available as an add-on or an entree. For the everyday value seeker, Ruby Tuesday continues to offer its “2 for $22” deal, which includes one appetizer and two meals for just $22, available every day for lunch or dinner. Guests can choose from a selection of Ruby Tuesday’s most popular dishes to build their perfect meal. Ruby Tuesday is dedicated to providing its guests with an exceptional, affordable and friendly casual dining experience while also protecting the health and safety of its diners and employees. Ruby Tuesday is continuing to adhere to its high cleaning standards and sanitation procedures, as well as following the guidance of the Centers for Disease Control and Prevention (CDC). – Source: fsr.

BBQ Holdings CEO Jeff Crivello on the planned acquisition of family restaurant chain Village Inn and pie/comfort food concept Bakers Square . . . .

Famous Dave’s Parent Company will Nearly Double in Size with Planned Acquisitions

In June, Famous Dave’s BBQ parent company BBQ Holdings announced its intention to acquire VIBSQ Holdco LLC, the parent of Village Inn and Bakers Square, for around $13.5 million, with the deal expected to go through by the end of July. With this deal, one year after the acquisitions of Granite City and Real Urban BBQ in 2020, BBQ Holdings will nearly double in size. According to CEO Jeff Crivello, he has been a fan of Bakers Square and their famous pies for years and saw the opportunity with Village Inn, which has a similar corporate/franchise structure and number of units as Famous Dave’s. “A larger company is good for everyone,” Crivello said. “If we can simplify [franchisees’] business, they can come to us and have access to multiple brands with one leadership team. That’s the goal: to build a well-diversified portfolio of food and beverage plans that have withstood the test of time.” And they’re not finished yet, though Crivello says their growth strategy is still conservative and patient. “It will take us some time to digest this acquisition, but once we feel comfortable with it we always have a strong pipeline of opportunities that I’m looking at and monitoring,” he said. “When the time is right, we’ll continue to grow.” – Source: NRN.

Parent Romacorp Inc. was acquired by Equity Investors of New England; Ramon Bourgeois named COO and acting CEO . . . .

Ribs Chain Tony Roma’s has New Owner with Plans for Growth

Hoping to become the world’s leading American rib brand, the parent of Tony Roma’s on Tuesday announced it has been acquired by Equity Investors of New England Inc. Terms were not disclosed. In addition, Orlando, Fla.-based Romacorp Inc. named Ramon Bourgeois to the role of chief operating officer and acting CEO. Bourgeois is an industry veteran who previously held executive positions at Areas USA Inc., The Cheesecake Factory, The Palm Restaurant Group, and Legal Seafoods. “Having worked with Romacorp for the past six years, I have a thorough understanding of our opportunities and strengths around the world. I am dedicated to the growth and success of our brand, our team, franchisees, and worldwide customers and I look forward to taking on this new leadership role,” Bourgeois said in a statement. The nearly 50-year-old casual-dining franchise chain has long been known for its international presence. Tony Roma’s includes more than 100 restaurants in 22 countries. With the deal, the company is planning to grow. Equity Investors of New England is described in press materials as “a well-capitalized investment company,” which is “committed to making Tony Roma’s the number one American rib concept brand around the world.” – Source: NRN.

Diners receive discounts for future orders if Grubhub can’t deliver on its promise . . . .

Grubhub Launches Guarantee for on-Time Food Delivery and Lowest Price

With the ink dry on new ownership by Just Eat Takeaway, Grubhub on Monday took a shot at the competition by launching a new guarantee promising consumers on-time delivery at the lowest delivery price, or the diner will receive perks for free food. Calling it the Grubhub Guarantee, the Chicago-based delivery provider said the promise builds on the recently launched Grubhub Direct Service, which allows restaurants to build an online presence without having to pay commission on delivery orders that come through the site. “Restaurants work incredibly hard to create the best experience for diners, and we are helping to safeguard the reputations of our restaurant partners through Grubhub Guarantee,” said Adam DeWitt, Grubhub’s new CEO, in a statement. “We have been building and refining the online ordering and delivery process since 2004, and restaurants rely on us to connect them to diners and help them grow. We take restaurants’ brand reputations seriously and believe Grubhub Guarantee will help restaurants grow their online business.” Under the program, if a diner finds a better price for their order on another third-party delivery platform, Grubhub will make up the difference up to $10 and offer an extra $5 in Grubhub Perks. Requests can be submitted through the company’s app or website. If an order arrives late, Grubhub will also send the diner Perks of at least $5 off to use on their next order. The company is launching a marketing campaign, including a national TV spot, as well as social media pushes that will include athletes such as Alex Morgan, Allyson Felix, Caeleb Dressel, Hunter Woodhall, and Tara Davis. Last month, Amsterdam-based Just Eat Takeaway.com completed its acquisition of Grubhub. Following the closure of the deal, DeWitt, formerly the delivery company’s president and chief financial officer, was named CEO. Former CEO Matt Maloney will become a member of the Just Eat Takeaway board of directors. Meanwhile, competitor DoorDash on Monday said it would give away 1 million pints of free ice cream between July 15-18 for orders totaling $20 or more. – Source: NRN.

Newly Renamed Odd Burger Plots Expansion of Plant-Based Fast Food Across North America . . . .

Canadian Concept Plans to Open First U.S. Unit in New York City this year, with More to Come

A plant-based quick-service concept newly named Odd Burger has big plans to cross the Canadian border into the U.S. this year to plant its flag. Now officially named Odd Burger Corp. as of Tuesday, the Toronto-based parent company was previously known as Globally Local Technologies Inc. It went public in Canada in April, raising $4.2 million to fund expansion across North America. James McInnes, co-founder, and CEO said 20 locations are planned in the U.S. and Canada over the next year, including five this summer. Currently, the company has two units in Canada still known as Globally Local — in Toronto and Windsor — which are in the process of being converted to the Odd Burger brand. A third new Odd Burger is scheduled to open this week in a Toronto suburb. Now Odd Burger is looking for its first U.S. location, which McInnis hopes will be in New York City. Though the plant-based dining landscape is getting increasingly crowded, McInnis said Odd Burger found a particular sweet spot during the pandemic that he believes positions the brand well for success. Odd Burger units are typically about 1,000-square-feet, he said, with “smart kitchens” designed to produce a high-volume, mostly off-premises menu in a tiny space. “We use a lot of advanced automation in the restaurants, which allows us to have fewer staff, higher output, and more consistency — and better pricing,” said McInnis. “Our pricing is comparable to other fast-food chains, which for a vegan restaurant is unique … because there’s more cost to produce it.” There is no grill, for example. Much of the menu is produced in a manufacturing plant, or commissary, and distributed to units where meals are cooked in a convection oven to order, with supporting equipment like specialized toasters, fryers that automatically filter and change oil, and an Italian gelato machine that produces soft serve. Dine-in guests order and pay with cashless kiosks. Odd Burger kitchens will also feature other examples of automated robotics that McInnis, who has a tech background, said he couldn’t yet share publicly. The chain is working with a robotics company that is developing proprietary equipment, he said. One pandemic trend that does not interest Odd Burger, however, is a drive-thru format. “We had one for a while, but we closed it. It was really hard to get drive-thru locations in Canada. They’re typically expensive and big,” he said. The three-daypart menu will have about 40 items, despite the small footprint. Odd Burger will serve breakfast sandwiches, burgers, onion rings, and fries, milkshakes, and non-dairy soft serve made with coconut milk. The core “Famous Burger,” is modeled after a Big Mac, except it is free of animal products and made with a chickpea patty. Another is called the “Vopper” (“truly fit for a king or queen”) and there’s a “Preposterous Burger” made with seitan and infused with beet juice to appear more “meaty.” In fact, the concept got its start in Canada with a food truck that was briefly called McVegan before McInnis got a cease-and-desist letter from McDonald’s Corp. One of the concept’s big selling points is the fact that the food is less processed than much of the vegan meat alternatives available in many restaurants today, McInnis said. The soft-serve ingredients include only coconut milk, vanilla, and sugar, for example. “We focus on simpler ingredient profiles,” he said. “You still feel like you’re getting a treat, but you’re not getting a super high-processed patty with a bunch of ingredients you don’t understand. That’s worked really well for us in Canada.” – Source: Restaurant Hospitality.

Danny Meyer’s Union Square Hospitality Group names former Hewlett Packard executive Marissa Freeman chief marketing officer . . . .

The new CMO replaces Rani Yadav, who Left in March

Union Square Hospitality Group has named Marissa Freeman its new chief marketing officer, replacing Rani Yadav. Freeman most recently was a chief brand officer at Hewlett Packard Enterprises, spearheading the launch of that brand as one of the companies that were created when Hewlett Packard split in two in 2015 (the other was HP Inc.) Prior to that, she was senior vice president for brand strategy at Time Warner Cable. Previously she held executive positions at several ad agencies, including BBDO, DDB and Deutsch LA, where USHG said she ran some of the largest and creative accounts and was known for “inspiring teams and greenlighting first-to-market ideas.” “I am thrilled to welcome Marissa Freeman as our new chief marketing officer at Union Square Hospitality Group,” founder and CEO Danny Meyer said in a release announcing Freeman’s appointment. “As we once again welcome guests to our dining rooms, meet new staff members, and even introduce some new restaurants into the fold, clearly communicating and sharing our purpose and brand story is more important than ever to our success. Marissa brings her entrepreneurial spirit, deep-rooted marketing expertise, and a true passion for extending Enlightened Hospitality.” “Enlightened Hospitality,” is Meyer’s term for his New York City-based company’s style of service, which includes providing stable careers and advancement paths for all employees. Until recently, that included a tip-free service system that Meyer began rolling out in 2015 but ended up scrapping last July as he reopened many of the restaurants that were shuttered at the beginning of the pandemic. According to USHG’s website, some of the new restaurants in the works are LoBall, a bar slated to open in New York City’s Flatiron neighborhood later this year, and Ci Siamo, an Italian restaurant near Hudson Yards, also in New York. Yadav left USGH in March and is now at financial services software company Stripe. Union Square Hospitality Group operates 17 restaurants, cafes, and bars in New York City and Washington, D.C., including Union Square Cafe, Gramercy Tavern, and The Modern. – Restaurant Hospitality.

Ian Schrager, John Fraser, and Diego Muñoz open new Peruvian concept at Public Hotel in NYC . . . .

The Globally Inspired Menu at Popular Reflects New York City and all Three Chef’s Influences

Ian Schrager, co-creator of Studio 54 and well-known hotelier, has unveiled the newest restaurant at Public in NYC: Popular, complete with Peruvian fare and headed by chefs Diego Muñoz and John Fraser. The restaurant, along with a new cantina/bar and a gourmet food bazaar, opened to the public last week. “Never before have two chefs of such world-renown collaborated to bring a luxurious, multicultural, culinary experience to New York City,” Schrager said in a statement. The hotel’s main restaurant Popular is helmed by Muñoz who comes to New York from Peru. The menu is a culinary tour of Muñoz’s home country, including Peruvian/Chinese dishes, along with elements from Incan, Spanish, Moorish, African, Italian, Chinese, and Japanese cultures. “It has always been my dream to cook in New York City, a place that I adore for its non-stop energy and incredible culinary diversity,” said Diego. “I am honored that Ian Schrager chose me to present my country’s rich and multifaceted cuisine at Public, the execution of which would not be possible without the local knowledge, expertise, and infrastructure that Chef John Fraser and his team bring. “I’m also excited to share Peru’s incredible cocktails,” he continued. “When I worked at elBulli with Chef Ferran Adrià, the restaurant had no bar. All the cocktails were created in the kitchen as a logical extension of the cuisine. I’m honoring this tradition at Public.” Muñoz comes to Public from Schrager’s Bodrum Edition in Turkey and previously helmed Astrid y Gastón in Lima, so this new collaboration is keeping Muñoz in the family but moving his talents to New York City. That’s where Frazer comes into the threesome. Chef Fraser, New York restauranteur and owner of Iris, 701 West, and now-closed Michelin-starred vegetarian restaurant Nix. Fraser is known for his use of vegetables and flavorful vegetarian cuisine in New York City. “My position here is to open the window to New York for Diego to see out of,” Fraser said at a press event celebrating the opening. The menu at Popular is mostly fish and vegetables, staples in Peru. Highlights include a ceviche bar; Charsiu Fried Rice; prawn tomato; spicy prawn bisque; and wood-smoked paella. The robust cocktail menu is centered around brandy pisco, another staple in Peru. Among them is the Pistachio Sour with Acholado (a type of pisco), pistachio, lemon, and egg white,; or the Peppermint Sour: with Acholado, peppermint, lime, egg white, tonic. A classic Popular Pisco Sour with Puro Quebranta (another type of pisco) includes lime, egg white, and Angostura bitters. Appetizers range from $12 to $21 for the ceviche bar. Entrees are between $28 and $38. “It’s healthy food. [Chef Diego] didn’t want me to call it that because of the name but its fish and vegetables. It’s healthy but delicious,” Schrager said at the opening event. Popular will have indoor and outdoor seating at the Bowery Garden, the outdoor section of the hotel. The more casual space attached to Popular, Cantina & Pisco Bar, celebrates two Peruvian classics in ceviche and pisco. The concept features a ceviche bar where the fish is prepared à la minute and includes razor clams, ginger, samphire, ice plants, Salmon Belly Teriyaki, snapper, octopus, shrimp, crispy cancha, choclo, and hearts of palm and avocado, Long Island kelp, vegetable tiger’s milk. The bar offers 21 different piscos that span various styles, including Quebranta, Acholado, Italia, Torontel, Moscatel, as well as Mosto Verde Italia and Mosto Verde Acholado. The bar is preparing 36 kinds of housemade Pisco Macerados (infusions), including strawberries and anise; watermelon; raisins and currants; pineapple and sage; juniper and orange; rose petals and lime zest; and coffee. The infusions will be used in creative cocktails like the daily specials. Cocktails at the Cantina range from $14 to $17, and the ceviche bar ranges from $17-$23. After 10 p.m., Cantina will host a DJ for live Latin music and dancing daily. The last element of the newly redesigned food scene at Public is Louis, a global food bazaar. The food at Louis was curated by Fraser from Muñoz’s expansive culinary menu meant to embody Peru and New York City’s Lower East Side, where the hotel resides. Menu highlights at Louis include Peruvian Cobb Salad with rotisserie chicken, and buttermilk vinaigrette; Vegetarian White Pan Pizza with artichokes and hard-boiled egg and a Smoked Salmon Bagel with cream cheese, scallions and tomato. This menu is less expensive with food ranging from $8 to $22. Schrager, who has been credited with co-creating the “boutique hotel” concept and was the co-founder of Studio 54 said the inspiration for redesigning the food program after COVID wiped out the hotel industry was the pandemic itself, along with the resiliency of New Yorkers. “We put a lot of money back into this hotel because we knew things would go back to normal. Not the new normal, but normal,” Schrager said at the opening. – Source: Restaurant Hospitality.

Canadian concept plans to open first U.S. unit in New York City this year, with more to come  . . .

Biden Issues Executive Order Encouraging Federal Action to Limit or Ban Non-Compete Agreements

On July 9, 2021, President Biden signed the Executive Order on Promoting Competition in the American Economy, which encourages the Federal Trade Commission (“FTC”) to employ its statutory rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”  Executive Order, Section 5(g).  While the language in the Executive Order refers to the “unfair” use of non-compete clauses, the Administration’s explanatory statement makes clear that “the President encourages the FTC to ban or limit non-compete agreements” altogether. A comprehensive rule governing non-competes would be an unprecedented move by the federal government.  Historically, the regulation of non-compete agreements has been left to the states, many of which have recently been busy with the legislation of their own.  Recent state legislation has focused, among other issues, on minimum compensation requirements for such agreements to be enforceable against employees, as well as imposing time limitations on such restrictions.  See e.g., recent posts on legislative efforts in New Jersey, Oregon, and Nevada.  The Executive Order does not offer any details on whether these are the types of limitations President Biden would like the FTC to consider. It seems unlikely that the FTC will issue a complete ban on non-compete agreements.  Any attempt to impose such a ban would be met by strong opposition from the business community.  Non-competes are viewed as vital by many employers seeking to protect their trade secrets and goodwill, among other legitimate business interests. If the FTC is “encouraged” by President Biden’s Executive Order, the administrative rulemaking process likely will take several months or even years.  So, for now, employers should continue to review their non-compete agreements for compliance with state law, and we will keep you updated on any future developments on the federal side. – Source: National Law Review.

The Chicago-based restaurant group is adding two new concepts this year after opening Andros Taverna in February and Sophia Steak in 2020 . . . .

Ballyhoo Hospitality’s Ryan O’Donnell on the Confidence that Comes from Surviving a Crisis

There’s a certain confidence that comes from surviving a crisis. At least that’s how Ryan O’Donnell sees it, as he prepares to open two new Chicago-area restaurants this year. O’Donnell is co-founder of Ballyhoo Hospitality with his wife Anna O’Donnell. The group operates five independent concepts, including two that opened during the pandemic shutdown. Coming later this year are the new Pomeroy, a French bistro with chef Jason Paskewitz in the kitchen; as well as a sandwich shop and bakery called Buck Russell’s — both in the Chicago’s North Shore suburbs of Winnetka and Wilmette, respectively. The new concepts follow the launch in February of Andros Taverna, a Greek concept opened in partnership with Doug Psaltis, who left Lettuce Entertain You Enterprises last year. The Logan Square taverna was initially able to open at 25% capacity with COVID-safety protocols in place, said Ryan O’Donnell. Photo: Pomeroy will be a French bistro with Jason Paskewitz, who is also in the kitchen at the group’s Gemini concept. “It actually helped, in that the fewer people in the restaurant, the less commotion, and pressure. Everything was going at a slower pace. From an operations point of view, it was a weird blessing in disguise when you’re opening during a pandemic,” he said. “It allowed us to take a step back and really be observant of what needed help and focus on operations and systems.” Last year, the group opened Sophia Steak with partner Glenn Keefer in Wilmette, which was initially scheduled to open in March 2020 on the very day indoor dining was shut down in Chicago. “I didn’t want everyone’s first impressions to be out of a box,” said Ryan O’Donnell, so the group kept the steakhouse closed until May, knowing that outdoor dining would come in June. In the end, the restaurant had good results. “We did a great business last year with just outdoor,” he said. “Then indoor dining came back and it’s been rockin’ ever since.” For Ballyhoo, the growth comes in part because the O’Donnells had already started developing the concepts. Ryan O’Donnell said he was “already pregnant” with Pomeroy before the pandemic and his capital sources stuck with him. “I have always felt I thrive under pressure,” he added. “I don’t do well when things are good. I do well when things are bad.” It’s not like Ballyhoo didn’t take any hits last year. The group was forced to close the restaurant Walton Street, which was in Chicago’s Gold Coast neighborhood, which Ryan O’Donnell describes as a less residential community. Ballyhoo’s earlier existing concepts — the restaurants Gemini, Old Pueblo Cantina, and Coda Di Volpe — are going strong now that COVID restrictions have been lifted. With the group’s growth, however, the biggest challenge has been finding good labor for hourly positions, he said. This year Ballyhoo has raised wages and expanded benefit packages, offering a 401K, for example, gym membership and other perks. “People are looking for where the grass is greener, and we’re trying to provide that greener grass.” Last year, the group opened Sophia Steak with partner Glenn Keefer in Wilmette, which was initially scheduled to open in March 2020 on the very day indoor dining was shut down in Chicago. But the O’Donnells are refusing to let the specter of pandemics loom over their business. Other than installing new air filtration systems in all the group’s restaurants, Ryan O’Donnell said he isn’t planning to space tables further apart or make other permanent changes. Even if another pandemic comes along within the next 20 years, he said the company has learned it can weather the storm. “It has given us the confidence to know we have built strong enough systems and strong enough teams that have supported the businesses. It’s given us the ability to poke holes in what we’ve done wrong for a long time, and the way we order products and the way we store products and our inventory systems,” he said. “A lot of stuff was like, wow, let’s never do that again. “The pandemic has given us an opportunity to really perfect — or at least try to perfect because nothing’s perfect — how we operate our back-of-the-house systems,” he added. “It’s been a learning process.” It was a scary and tough time, he noted. But “it was a time that I think in the end in certain ways helped our business. I don’t want you to write that the wrong way, where I said the pandemic was good for us, because I don’t think that. I think it provided an opportunity to do things more efficiently and to do things better.” – Source: Restaurant Hospitality.

Lawmakers Ask USDA, DOJ to re-Examine Pork Line Speed Ruling

A group of 70 congressional lawmakers, led by Senator Chuck Grassley (R-Iowa) and Representatives Jim Hagedorn (R-Minn.) and Dusty Johnson (R-SD), penned a letter recently that urged the US Department of Agriculture and the Department of Justice to pursue legal action and push back on a recent federal court ruling regarding US pork processing plants’ line speeds. “While the economic impact to these packers will be significant, it is the nation’s small and medium-sized hog farmers who will suffer the greatest harm from upstream impacts,” the members wrote to the USDA and DOJ. “It is imperative that USDA act quickly, and pursue all available options, to prevent this reduction in packing capacity which is set to take place at the end of June.” Earlier in the year, a federal court in Minnesota vacated a provision of the New Swine Slaughter Inspection System (NSIS) that enabled pork processors to establish maximum line speeds. In late May, the Food Safety Inspection Service (FSIS) said plants that operate under the NSIS should prepare for a maximum line speed of 1,106 head per hour by the end of June. Later in the letter, the lawmakers said that by removing the rule six plants would have to reduce their output and purchase fewer hogs. “As the hog production cycle spans nearly a year, hogs set to enter this reduced-capacity market are already being raised,” the letter said. “Farmers have little ability to alter their supply in the next year. Many farmers supplying these NSIS plants will need to find alternative destinations for their hogs. The resulting surplus and reduced demand in a concentrated geographic region will shift economic power to pork processing companies.” A few months ago, pork industry advocates, including the National Pork Producers Council (NPPC), asked the USDA to reconsider the ruling as it would impact smaller hog producers. The trade association also wanted a stay while the appeal was considered. NPPC said the ruling to strike down a provision in the NSIS reverses a 2019 decision to approve and implement faster line speeds. The group also added that the pilot program dates back to the Clinton administration and has continued throughout subsequent administrations in an effort to update the inspection system that had not been updated in more than 50 years. – Source: Food Business News.

Subway Unveils ‘Monumental Updates’ to Entire Core Menu

Subway restaurants announced historical changes and improvements to almost every core item on their menu, as well as digital upgrades to elevate guests’ experiences. The “Eat Fresh Refresh” menu makeover will begin July 13, after participating restaurants close for one day to prepare for the changes. The 20-plus menu updates include 11 new and improved ingredients, six new or returning sandwiches, and four revamped signature sandwiches. New and improved ingredients include smashed avocado, BelGioioso mozzarella, MVP Parmesan vinaigrette, bacon, black forest ham, oven-roasted turkey, steak, rotisserie-style chicken, and roast beef. Additionally, Subway worked with a panel of bakers – including Aspire Bakeries – over two years to develop bread recipes and baking methods for two new bread offerings: Artisan Italian and Hearty Multigrain. The new and returning sandwiches include a revamped Rotisserie-Style Chicken sandwich, Roast Beef sandwich, and Subway Club sandwich, as well as three brand-new offerings. The Steak Cali Fresh is made with steak, hickory-smoked bacon, smashed avocado, BelGioioso mozzarella, spinach, red onion, tomatoes, and mayo on Hearty Multigrain bread. The Turkey Cali Fresh features oven-roasted turkey, hickory-smoked bacon, smashed avocado, BelGioioso mozzarella, mayo, spinach, red onion and tomatoes on Hearty Multigrain bread. The All-American Club includes oven-roasted turkey, black forest ham, and hickory-smoked bacon with American cheese, lettuce, tomatoes and red onions on toasted Artisan Italian bread. On July 12, over 10,000 Subway restaurants across the country will close at 6 p.m. local time to allow for employees to prepare for the Eat Fresh Refresh launch. “Subway has been serving freshly made, customizable, and better-for-you sandwiches for more than 50 years, and we wanted to give our guests more new and improved flavors,” said Trevor Haynes, president of North America at Subway. “Our new culinary team is delivering monumental updates to the entire core menu. The Eat Fresh Refresh makes Subway better than ever with freshly made, craveable, and delicious sandwiches to excite new and returning guests.” As part of the Eat Fresh Refresh, Subway will also enhance digital ordering with a simpler and more intuitive experience on the Subway app and website and through third-party delivery partners. The updated Subway app features a new dashboard, improved ordering flow, and insight into out-of-stock. Customers will also be able to place orders for delivery nationwide. These enhancements provide the same customized and consistent experience found in Subway restaurants, the company said. Customers visiting Subway in-person will find restaurant design refinements and remodels along with sandwich artists ready to serve the new menu and offer an improved dining experience. – Source: Food Business News.

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