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Global Foodservice News – October 1, 2023

Posted 09.27.2023

McDonald’s Adds Two New Sauces to its Lineup
The restaurant’s new sauces come shortly after the chain began offering its signature Big Mac sauce a la carte for the first time, signaling a sharpened focus on this part of the menu, which has historically served as more of an accessory.
McDonald’s is introducing two new sauces – the Sweet & Spicy Jam Sauce and the Mambo Sauce – beginning Oct. 9. McDonald’s Sweet & Spicy Jam Sauce is a red pepper sauce with a Szechuan peppercorn kick and extra heat from cayenne pepper; finished with apple cider vinegar. McDonald’s chefs recommend the jam sauce for the Sausage McMuffin with egg, bacon, egg & cheese biscuit, hash browns, Chicken McNuggets, the McCrispy, and French fries. According to the company, this will mark the first-ever breakfast-inspired dipping sauce in the chain’s domestic system. McDonald’s Mambo Sauce is a tomato-based, sweet, spicy and vinegary sauce inspired by the regional Washington, D.C. area sauce staple. Chefs recommend it for the Quarter Pounder with Cheese, hash browns, Chicken McNuggets, McCrispy, and French fries.
“We get inspiration for the food our fans love by exploring the incredible tastes and flavors found in communities across the country,” Tariq Hassan, chief marketing and customer experience officer, said in a statement. “Sweet & Spicy Jam and Mambo Sauce live at the intersection of flavor and culture – pulling from decades of rich food history and tradition in local restaurants and home kitchens, and bringing the delicious spice, sweetness and kick of heat we know today’s customers are craving.” To celebrate the sauces’ launch, McDonald’s is teaming up with foodie content creators @Mr.Eats305, @sharidyonne, @santanakeish, @misslegarda, @natelovlogs and @blackgirlsexploredc, who will offer reviews and share their own pairing recommendations on their respective TikTok accounts. Further, McDonald’s YouTube channel will debut a documentary on Oct. 9 about the cultural ties Mambo sauce has to the Washington D.C. and Chicago communities. The documentary will feature stories of the sauce makers, restaurateurs, small business owners and fans keeping the culture alive.
McDonald’s introduction of two new sauces comes shortly after the chain began offering its signature Big Mac sauce a la carte for the first time, signaling a sharpened focus on this part of the menu, which has historically served as more of an accessory. It’s not the only chain doing so. Chick-fil-A recently began selling its barbecue and sweet & spicy sriracha sauces in retail locations nationwide. The chicken chain even went so far as to rollout an entire sauce-themed merch line. Taco Bell has also recently leveraged the popularity of its sauces through partnerships with local favorites like Yellowbird and Truff’s. The company also flexes its sauces’ brand equity with a sauce packet collection on its merch line. In 2020, KFC jumped into the fray, introducing its first “KFC Sauce” after testing 50 iterations. The chain has since added a buffalo ranch sauce to its lineup that already included BBQ, ranch and honey mustard. Earlier this year, Shake Shack launched a new Hot Ones Menu, complete with Hot Ones Spicy ShackSauce, while Culver’s came up with a new “signature sauce. In the past few years, sauces have become a bigger battleground for restaurants, and for good reason. Consumers’ penchant for sauces has grown as our food has become more globalized and our palates more sophisticated. According to Innova’s 2022 Flavor Survey, 39% of consumers said they’re most likely to experiment with flavors through sauces, seasonings and toppings. As such, new product introductions including sauces and seasonings increased by 10% in 2022. There aren’t many signs of slowing down here; the global culinary sauces market is projected to grow to nearly $60 billion by 2029, from $46.6 billion in 2022, source according to Fortune Business Insights.

KFC Tests a New Bbowl as it Focuses on Attracting Younger Consumers
KFC’s accelerated cadence of boneless, portable, individualized product offerings is intentional as the restaurant chain looks to expand its consumer base.
KFC is testing Smash’d Potato Bowls in Pittsburgh for a limited time. The bowls include KFC’s Secret Recipe Fries, mashed potatoes with a warm cheese sauce, bacon crumbles, and a three-cheese blend, and are available for $3.49. Customers can also add KFC’s new nuggets to the Smash’d Potato Bowl for $5.49. The nuggets were introduced in March as part of the chain’s intentional focus on recruiting younger consumers with menu offerings that are more relevant to them, such as its chicken sandwich, wraps and its $5 Mac & Cheese Bowl. The $5 Mac & Cheese Bowl was first introduced in 2019 and returned in 2022 at the $5 price point to promote a stronger value proposition. It was also brought back alongside the nuggets launch in March. Executives noted the product helped drive a positive 2% same-store sales comp. On a call to analysts, Yum Brands CEO David Gibbs said it’s a value offering without “just discounting our core product,” which interested a wide array of consumers.
Bowls have been a part of KFC’s menu since 2006, when the Famous Bowl was introduced, featuring mashed potatoes, gravy, sweet corn, crispy popcorn chicken and a three-cheese blend. More than 81 million KFC Famous Bowls were sold in their first 10 months on the menu, the company reported at the time. The company has iterated the Famous Bowl several times since, including in late 2022 for a $5 holiday promotion.
Younger consumers, including millennials and Gen Z, have been driving an increased demand for portability for the past several years, which has in turn driven an uptick in bowl options across chains large and small. – Source: nrn.

The demand for restaurant real estate is ‘through the roof’
Data from JLL and Placer.ai shows a significant uptick in demand for drive-thru locations, including drive-thrus with multiple lanes.
We’ve tried to articulate the state of the consumer for about a year now and more signs are starting to show of a pullback on discretionary spending. That said, consumers have largely shown a sustained willingness to spend their money at restaurants and on experiences. Perhaps that explains why operators are bullish about finding real estate. According to Emily Durham, senior vice president, brokerage, food and beverage advisory at commercial real estate company JLL, demand on the restaurant real estate side is “through the roof.” In Houston, for example, there is only a 4% commercial vacancy rate.
“There are segments down in sales, but there is no shortage of people wanting to come to the market,” she said during a webinar Wednesday titled “The State of Restaurant Real Estate” hosted by data company Placer.ai. She presented alongside RJ Hottovy, head of analytical research at Placer.ai.
The two agreed the demand is a bit of a head scratcher given the overall decline in restaurant traffic and pressured macroeconomic environment, but zoom in a bit and each segment and each market tell a different story. A good example here is the specialty coffee segment, which has experienced positive traffic trends throughout the past two months while all other segments were negative. Further, in 2022, the segment outpaced every other segment, and by a lot.
“I’ve never seen so many coffee users in a market ever,” Durham said. Indeed, according to our Top 500 report with Datassential, sales in the limited-service coffee segment grew by over 12% from 2021 to 2022. Durham and Hottovy believe a few factors are driving strength in this category, including a pandemic-induced shift toward late-breakfast/early lunch business versus just an early morning occasion, and the movement toward mobile and drive-thru usage, which has increased convenience but reduced dwell times in the segment. The shift toward mobile and drive-thru usage has also had a material impact across the broader real estate industry.
“More people are looking for double drive-thrus. Double drive-thrus were never a thing before, but now it’s smaller buildings and larger drive-thrus,” Durham said, adding that not only is there more demand for drive-thrus, but for drive-thrus with two, three or more lanes. Shake Shack is a good case study as to why this demand is growing so swiftly. According to Placer.ai data, the chain’s Orlando drive-thru location has consistently and significantly outpaced its traditional location in the market since opening in March 2022. Hottovy said Placer.ai’s most recent numbers show that drive-thrus now make up about 70% of total sales for QSR and coffee concepts, compared to about 60% pre-pandemic. Because of this uptick, both Durham and Hottovy opined that there should be changes in rent structures.
“The traditional metric (for rent) is per square foot, so as technology increases and our buildings get smaller, it needs to change. We’re no longer working on the same metrics,” Durham said. “The interest is not going to wane anytime soon.” Hottovy adds that as more fast casual concepts also start to adopt drive-thru formats, the line between the segment and quick-service seems to be blurring.
“Pre-pandemic, fast casual had a different perception, maybe with better quality or ingredients. The visits per location significantly outperformed, but as we got to the pandemic, we started to see QSR take over. In response, we saw things QSR brings to the table, like multiple drive-thrus, mobile ordering. They’re pretty much the same at this point,” he said.
Where we’re seeing another shift in restaurant real estate is in the move toward the Southwest and Southeast markets, which have experienced explosive growth throughout the past several years. This growth is a big reason brands like McDonald’s and Portillo’s are planting more flags in those markets.
“During Covid, we saw population shifts to the Sunbelt states whether for weather, business climate, or another reason. A lot of it was the ability for restaurants to do business; some areas were easier than others,” Durham said. “What happened is we no longer have just local Texas folks expanding through Texas, we have people coming from California and other states to try Texas. So, we have operators from other states and countries adding to the demand.”
Also, smaller markets are becoming more attractive. Hottovy said when Chipotle goes into a market with less than 100,000 people, there are a lot more visits per location, which makes such a strategy more attractive.
“It makes sense – there’s less competition, more access to labor. People want to work for these big brands coming into smaller markets. It’s cheaper to operate,” he said.
“That’s why we’re having this conversation a lot, it’s cheaper to operate. You hit the nail on the head,” Durham added. “We just need to spend more time running those numbers to look for alternative sites. A lot of it is helped by people who have moved outside of cities.”
According to the Economic Innovation Group, 2 million people moved away from cities into suburban and rural markets from 2020 to 2022. Source: NRN.

The U.S. Wants to Expand Overtime Eligibility to Workers Earning under $55k
The U.S. Department of Labor’s newly proposed overtime rules would extend overtime protections to 3.6 million more workers
The U.S. Department of Labor has proposed a new rule that would raise the ceiling on overtime eligibility requirements to workers earning less than $1,059 per week or about $55,000 per year, up nearly 55% from the current threshold of $35,568. This proposed rule would extend overtime provisions to 3.6 million more workers around the country, many of whom work in the hospitality industry.
“I’ve heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don’t come anywhere close to compensating them for their sacrifices,” acting labor secretary Julie Su said in a statement. “Today, the Biden-Harris administration is proposing a rule that would help restore workers’ economic security by giving millions more salaried workers the right to overtime protections if they earn less than $55,000 a year. Workers deserve to continue to share in the economic prosperity of Biden-omics.” The proposed rule also would automatically update the salary threshold every three years “to reflect current earnings data.”
Unsurprisingly, the restaurant industry is not on board with the massive change to salary requirements, which the National Restaurant Association says could cause many small businesses to close.
“Restaurant operators are once again feeling the weight of uncertainty because of a Department of Labor change that will increase their operating costs,” Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association said in a statement. “The average small business restaurant runs on a 3-5% margin, but DOL found that the changes proposed in this rule will increase costs for affected restaurants by 2.5% percent. Adding this kind of cost to the already high price of food and years of increasing labor costs will leave many of these operators in the untenable position of raising prices, cutting costs, or closing their doors.”
The International Franchise Association similarly feels that this rule would be too challenging for small restaurants “who continue to struggle in the post-pandemic economy with continued inflation and labor shortages, and as wages are at an all-time high.”
The law follows a similarly proposed Obama-era rule that proposed a $50,440 ceiling, before the administration settled on a $47,476 ceiling that was then blocked by a Texas federal judge before it could take effect. If this currently proposed rule under the Biden administration were to pass, it might face similar legal questions. Source: NRN.

Palermo’s Primo Thin pizza gets new look, new varieties
Palermo Villa, Inc. is expanding its Primo Thin line of frozen pizzas with the addition of two new varieties: avocado club and Southwest veggie. The company also is giving its packaging a makeover, adding nutritional callouts that highlight the brand’s low calorie counts.
The new avocado club pizza comes on a whole wheat crust and includes avocado cream sauce, bacon, spinach, tomatoes and mozzarella.
Southwest veggie features a salsa verde sauce, black beans, corn, roasted peppers, onions and mozzarella.
Introduced in 2003, Palermo’s Primo Thin line also is available in 5 cheese, pepperoni, supreme, margherita, Italian sausage and chicken alfredo.
“The new flavors and new look capture what makes Palermo’s Primo Thin a great choice — indulgent taste with lower calories and carbs per serving than other frozen pizzas,” said John Leonardo, senior director of marketing at Palermo. ”Primo Thin fills a need not currently served. There are many people who are not necessarily dieting but want to make better choices when they purchase food. Primo Thin delivers exceptional flavor but does so with lower calories and fewer carbs than other frozen pizzas.”
The new package tags Primo Thin as “The Mindful Pizza,” Mr. Leonardo said, which is meant to draw attention to the pizza’s ultra-thin crust and big taste that combine to create “a perfectly balanced bite.” Source: Food Business News/ Primo Thin Pizza.

THE PUNCH BOWL SOCIAL FOUNDER IS BACK WITH BIG IDEAS—AND THE CAPITAL TO BACK THEM UP.
Punch Bowl Social founder Robert Thompson has secured over $200 million to feed his up-and-coming eatertainment babies. He attracted investments from prestigious names in the restaurant industry like Bill Allen—co-founder of Fleming’s Prime Steakhouse and former CEO of Bloomin’ Brands—and Stephen King, who served as CEO of eatertainment chain Dave & Buster’s for over a decade.
He’ll use the influx of cash to develop his newest concepts under parent company Angevin & Co.—Camp Pickle and Jaguar Bolera, both of which he began working on in 2021. “Fundraising began in earnest in 2022 before the capital markets began getting choppy,” he says. ”The market ‘chop’ caused delays for us getting across the finish line, and for some other groups in the eatertainment space, it tanked their deals altogether.”
Fortunately, Thompson and his team have nearly 30 years of experience developing, operating, and growing eatertainment brands that kept them afloat. That track record alone “made our deal less risky and helped our 2022 conversations ‘make’ in the summer of 2023,” he explains.
“The recent undisclosed amount of capital that the company has taken in at both parent company equity capital and unit level equity capital from the group of investors (The Simon Property Group, Good Alpha, Align Ventures, and personal investors including restaurant industry veterans Bill Allen and Stephen King), has unlocked related developer and in-kind capital, and when combined, Camp Pickle was able to realize $200 million of total growth CapEx proceeds,” Thompson adds. “So more than a raise, it’s more accurate to say that the recent investments have unlocked a total of $200 million for growth.”
Camp Pickle is his upcoming pickleball and dining venue that will span 40,000 to 65,000 square feet of indoor space and 10,000 to 25,000 square feet of outdoor space, including 10 to 15 pickleball courts in each location. The concept will appeal to a broad age range and aims to be family-focused.
“Camp Pickle—and pickleball in general—has the widest consumer demographic net that I have ever been associated with,” he says. “With participation ranges from 10 years to 70 years old, and an average player age of 35, pickleball appeals to a wide of consumers.”
As far as what will differentiate the brand from emerging competitors in the space, Thompson highlights how most pickleball models coming into the market are paddles clubs, not eatertainment concepts.
“I’ve operated the same eatertainment model for multiple decades that relies on using our activities (like pickleball, bowling, karaoke, and darts) to drive F&B sales,” he adds. “Using a model that has proven itself successful across decades and changing consumer patterns makes Camp Pickle—with its extremely wide consumer net—the most enticing and exciting business that I have ever had the privilege to launch.” – Source: FSR.

Darden Isn’t Concerned with Promotional Activity in the Marketplace
THE BRAND HAS A LONG-TERM PLAN AND IT’S STICKING TO IT. THAT INCLUDES THE RETURN OF THE NEVER ENDING PASTA BOWL.
Olive Garden executives watch commercials, too.
The brand is particularly aware of Chili’s returning to TV advertising for the first time in three years, which CEO Rick Cardenas referred to as “that one bar and grill competitor that seems to be ramping up a little bit.” Still, the executive said Olive Garden remains one of the top brands in “share of voice.” While Chili’s messages center around its 3 for Me value platform, Olive Garden’s is focused on abundance—more food, value, and refills.
“Whatever we do is going to elevate brand equity. It’s not going to be a deep discount and it’s going to be simple to operate,” Cardenas said during Darden’s Q1 earnings call. “And if it means that our traffic is at the lower end of our guide, then it’s at the lower end of our guide. We’re not going to do things that are going to impact us in the long term just for short term.”
Never Ending Pasta Bowl, which returns Monday, is a big part of the marketing strategy. The LTO will be priced at $13.99, the same as last year. It’s $3 more than pre-COVID, further proof that this isn’t a discount play from Olive Garden.
The promotion works for the Italian chain in multiple ways. First, Q2 is a seasonally low period for the brand because of children coming back to school. Secondly, it helps the brand learn more about its digital opportunities. The chain’s eClub members received an invitation to access the Never Ending Pasta Bowl this week ahead of everyone else. Olive Garden believes this is a way to drive profitable, sustainable traffic toward restaurants as opposed to guests being temporarily drawn to deep discounts.
“We think we’re getting back to more seasonal patterns,” Cardenas explained. “We look at our traffic trends versus pre-COVID. They’re fairly consistent across the last four quarters across most of our brand—actually, in most of our segments. And so we believe what we’re doing is getting us to exactly where we were before without a bunch of marketing at maybe slightly lower traffic levels because of that marketing. And so we’re going to stick to what we’re doing and see if the patterns dramatically change. And if they do, we have levers to pull that aren’t necessarily deep discounts.” – Source: FSR.

Red Lobster Names Horace Dawson its Next CEO
Red Lobster announced Horace Dawson has been named the Chief Executive Officer of the company and is joining the company’s board. Since 2014, Dawson served as the Executive Vice President and General Counsel of Red Lobster where he led legal affairs and was responsible for communications, risk management and government relations.
Dawson is a 30-year restaurant industry veteran having served as the Vice President and Division General Counsel for Darden Restaurants, Inc., and Vice President of Business Affairs and General Counsel of Hard Rock Cafe International. Dawson also practiced in the entertainment, securities, corporate and communications areas for Telemundo Network, the Spanish language television broadcaster and for New York City law firms. Dawson also has experience in private practice, having handled matters in the corporate and securities areas of Akerman LLP.
“I am very excited to be stepping into the role of CEO for Red Lobster. This is an important time for our brand. We are continuing to evolve our menu and guest experience to give our guests more of what they want every time they visit one of our restaurants,” says Dawson. “We have some of the most passionate customers and dedicated employees in the restaurant industry and I am looking forward to working with my teams to address the challenges we face in light of industry headwinds and to execute on our plans and deliver results.”
Horace is an active and well-respected leader in the restaurant industry, serving on the Boards of Directors of the National Restaurant Association, the National Restaurant Association Educational Foundation, Florida Restaurant and Lodging Association, Restaurant Law Center, and Stronger America Through Seafood.
He also invests his time in the community by serving on the Boards of Directors of the Boys and Girls Club of Central Florida, and Leadership Institute for Women of Color Attorneys, and on the Orlando Advisory Committee for City National Bank.
Horace received his undergraduate, law and Master of Business Administration degrees from Harvard University.
In addition to Dawson’s appointment, the company has also announced that Paul Kenny has been appointed as Red Lobster’s Chairman of the Board. Kenny has over 50 years of experience in the food industry, most recently holding positions as Chief Executive Officer and Executive Advisor of the Minor Food Group and serving as a director on the Board of Minor International.
“I have served on the Red Lobster Board for several years and strongly believe that Horace is the right leader for this iconic brand at this time in the company’s history and I look forward to continuing a strong and productive working relationship,” adds Kenny. – Source: FSR.

The bakery-cafe chain is now available on the ezCater app in hundreds of markets as competition for bulk orders heats up.
Panera Bread is joining catering marketplace.
EzCater adding to its considerable catering capabilities as bulk orders continue to be an area of growth for restaurants.
Nearly half of Panera’s more than 2,000 restaurants are now accepting orders through the ezCater app and website, and the chain plans to add hundreds more in the coming months, the two companies said Wednesday. Workplaces can use ezCater to place group orders from Panera and about 100,000 other restaurants.
Panera has been one of ezCater’s most requested brands, said ezCater Chief Partnerships Officer Mike O’Hanlon. “Not only is Panera a market leader in fast casual, but they’re also a powerhouse in catering,” he said in a statement. “We’re excited to launch this partnership and continue expanding it in the months and years to come.”
The St. Louis-based bakery-cafe brand has long been a leader in catering, and already offers the service via its own website and app, with options for events, virtual meetings and group ordering. Being part of ezCater should only expand its reach.
“An ideal complement to Panera’s existing catering service, ezCater adds additional reach and scale to expand to more businesses and take Panera Catering to the next level,” said Lisa Hamblet, Panera’s VP of off-premise, in a statement.
The partnership comes as both ezCater and Panera owner Panera Brands prepare for initial public offerings.
Catering has boomed coming out of the pandemic as workers return to offices and large gatherings resume. EzCater bookings grew 87% year over year in 2022, for instance, and more restaurants are adding the service as an option for the first time.
It is an attractive business for operators because large orders tend to be more profitable and can often be prepared during off hours or before stores even open. Source: Restaurant Business.

At an Investor Day, company officials plot the 77-unit chain’s path to 920 units across the U.S.
Portillo’s restaurant of the future
Portillo’s restaurant of the future is coming, and it will have a smaller box, a more efficient kitchen and a design to support off-premise business—all while maintaining an $8 million-plus average unit volume.
Oh, and contrary to plans at McDonald’s, Portillo’s guests will soon get their own self-serve beverages.
These changes come as the Chicago-based chain expands its plan to grow across the U.S., company officials said during an Investor Day presentation in Dallas on Tuesday.
Portillo’s CEO Michael Osanloo said Portillo’s now believes the 77-unit fast-casual chain can grow to 800 units with its full-scale model—up from previous estimates of 600 locations.
In addition, the chain could also add another 120 alternative-format locations, such as drive-thru-only or airport units, he said.
“We are a growth concept, admittedly with ridiculously good box economics,” Osanloo told the audience of mostly Wall Street analysts at the event, according to a transcript posted by Sentieo/AlphaSense. “We are accelerating our growth, but we’re doing it in a very disciplined fashion. We’re not chasing growth for the sake of growth.”
Portillo’s is a 60-year-old brand with a devoted following in and around Chicago. But since going public in 2021, the chain has been expanding in earnest across the Sunbelt, including Florida, Arizona and Texas, where the concept has been embraced. Portillo’s locations in Chicago enjoy an AUV of $10.8 million, but those in the Sunbelt are not far behind at $7.1 million.
Up next is a move into three new markets: Atlanta, Denver and Las Vegas.
Now Osanloo contends the new Restaurant of the Future design will cut costs as the brand grows, while keeping those AUVs over $7 million, and possibly over $10 million.
Using a more standardized design, future restaurants (starting in 2025) will shrink to about 5,500- to 6,000-square-feet from the current 7,700-square-foot restaurant, for example, which is expected to reduce buildout costs to $5.2 million-$5.5 million from the current $6.2 million-$6.5 million.
The new design will also include a 47-foot production line, down from the current 65 feet, and labor costs could be cut by about 15%.
Shrinkage has already begun. That 7,700-square-foot unit describes the newest restaurant in Allen, Texas, which is already smaller than legacy units that are 11,300-square-feet with a 105-foot production line.
At Restaurants of the Future, seating will be reduced by about 25% to 140-170 and parking trimmed by about 20% to 85-100 spaces.
Some elements of the new design are already being retrofitted into existing units, and about 40 restaurants will be updated this year, the company said.
Other changes include the relocation of the salad and beer pick-up lines, which has allowed room for a grab-and-go counter and self-service beverage options.
Future restaurants will also be more off-premise friendly, with more direct drive-thru access and easier entry for delivery drivers to pick up orders.
“We want the restaurant to reflect what the world wants in terms of off-premises versus in-restaurant dining,” said Osanloo “We think we have come very close to cracking the code on that.”
Alternative-format units could be even smaller and more efficient—as small as 3,000- to 3,500-square-feet— like the drive-thru-only unit that opened in Joliet, Ill., last year. These might include walk-up locations in more urban areas, or in airports and college campuses.
In terms of growth, Portillo’s is following population growth but also “shop-and-ship” data, watching where there is demand for the brand’s menu through nationwide shipping.
“People shop-and-ship Portillo’s all across the country. And so some of the states have the biggest shop-and-ship we’ve gone into,” said Osanloo. “One of the reasons we went into Texas, huge shop-and-ship numbers. One of the reasons we’re looking at Georgia and Colorado, huge shop-and-ship numbers.
“We’re going where the growth is,” he added. “We’re going where people are moving, we’re going where people are demanding our food.”
Source: Restaurant Business.

Food Truck Flavor Trends
KANSAS CITY — When it comes to flavors, the melting pot of America stirs in the streets. Food trucks are featuring the tastes of Asia, Africa and Latin America. In one trend, Korean and Mexican cuisines are merging, creating new dishes.
The global flavors may interest consumer packaged goods companies. Flavors traditionally found in food trucks and street foods are bringing new and interesting flavor profiles to the snacking aisle at retail, said Jennifer Zhou, global director product marketing, flavors for Chicago-based ADM.
“Think savory birria tacos or sweet and spicy shashlik kebabs,” she said. “These flavor profiles can elevate familiar grain-based snacks like crackers or popcorn, satisfying consumer calls for more adventurous eating experiences in recognizable formats.”
Ingredients like black vinegar, used in Chinese dishes such as Xian-style noodles or soup dumplings (xiaolongbao), and kanzuri, a Japanese fermented chili pasta, may enhance pasta dishes or grain bowls.
“From Korean tteokbokki to Italian tonnato sauce, there is an increasing desire to challenge traditional boundaries, bringing forth tastes that can be acculturated for US consumers and creating room for more transportive dishes and flavors,” Ms. Zhou said. “This is also driving consumers to seek out global and regional flavor profiles across food categories, including in bakery and snacks.”
A link to America may be needed to convince consumers to try new tastes.
“The key to the success of these foods is combining unconventional global flavors with familiar foods to create imaginative fusion dishes that are simultaneously comforting and adventurous,” said Doug Resh, director, commercial marketing for T. Hasegawa USA, Inc., Cerritos, Calif.
The most common path for global flavors into baked foods is dry seasonings that may be added to baked crackers, chips and other products for a rich flavor profile, he said.
“While consumers certainly feel safer trying new global flavors in traditional grain-based foods, compared to proteins or entrees, these flavors are a lot more approachable in smaller portion sizes,” Mr. Resh said. “The snack category is the best example since a lot of salty snacks like chips, crackers and pretzels are familiar but often bland, and consumers are eager for ways to experiment through bold flavors. It’s becoming increasingly common to see products like chips and crackers with bulgogi beef, sriracha, kimchi and other global flavors prominently featured.”
Elote is everywhere
A Mexican street corn called elote is venturing into retail stores.
“We’ve seen Mexican street food taking center stage, especially elote flavors popping up in savory snacks ranging from chips to nuts and featuring a powerful combination of chili powder, lime, mayo, Cotija cheese and cayenne pepper,” said David Banks, senior director of marketing for Bell Flavors & Fragrances, Northbrook, Ill.
Mexican elote, a grilled corn on the cob, may be slathered with a mayo cream sauce and sprinkled with chili powder and Cotija, said Holly Adrian, senior marketing manager for Sensient Natural Ingredients, Turlock, Calif. It is showing up in a variety of formats without the cob and may be served in formats such as a side salad, a tostada shell filling and pudding, she said.
“We recently took the authentic flavors of elote and created an application in a cornbread format,” Ms. Adrian said. “We incorporated fire-roasted jalapeños for a grilled note that also added a lingering kick of heat to the naturally sweet corn. That same combination can also be used in a breading or batter for elote fritters.”
Mexican street food flavors may complement traditional grain-based foods, Mr. Banks said.
“And, with younger millennial and Gen Z populations having more purchase power and willingness to try spicy, international and unique foods, these flavors could resonate well,” he said.
Sweeter caramelized flavors like dulce de leche, flan and brown butter are trending, too, Mr. Banks said.
“However, they’re revealing themselves with more adventurous twists and international spins such as miso caramel, bourbon brown sugar, ‘chocoflan,’ hot honey and spicy caramel, featuring trendy peppers, like Carolina reaper or ghost pepper,” he said.
The sweet dulce de leche notes in oblea, a dessert found in Spain and Latin America, work well in cereals and bars, Ms. Zhou said.
“We’re also seeing the earthy notes of matcha tea playing well with the familiar profiles of cinnamon sugar churro for unique fusion snacking experiences,” she said.
Korean combinations
More than Mexican flavors may be sampled on the street.
“We’ve also noticed a handful of street food vendors creating brick-and-mortar concepts, especially around Asian cuisine such as mochi donuts, boba tea and elevated Korean corn dogs,” said Benjamin Stanley, senior corporate chef and manager of sweet applications for Bell Flavors & Fragrances.
To get an sense of Korean corn dogs, imagine squid ink batter, Flamin’ Hot Cheetos and red bean paste, he said.
Combining Mexican and Korean may create flavor pairings like kimchi tacos or bulgogi beef tacos, Mr. Resh said.
“For North Americans, the rich palate of flavors in Korean cuisine is the perfect complement to the familiarity of tacos, burritos and other favorite Mexican foods,” he said. “The combination of these flavors elevates the entire dish, giving a new modern take on very traditional foods.”
Among Asian flavors, ADM foresees condiments like shacha sauce (a Chinese mix of garlic, shallots, chilis and dried shrimp) emerging in grain-based snack clusters and savory bread, Ms. Zhou said.
“There is also growth potential for black sesame snack sticks and tahini-dusted pretzels as consumers seek explorative bites on-the-go,” she said.
Chinese dumplings, known as jiaozi, are staples of Chinese cuisine and may be found in food truck courts across the United States, said Jen Lyons, marketing manager for Sensient Flavors & Extracts, Hoffman Estates, Ill.
“These are delicious pockets of dough filled with a mixture of meat, vegetables and seasoning and then steamed, boiled or fried,” she said. “They deliver a blend of savory flavors in a bite.”
Takoyaki is a popular Japanese street food.
“These savory bite-size battered octopus balls are served with a special sauce of mayo, bonito flakes and dried seaweed,” she said. “Together, they create a masterpiece of sweet, savory and umami flavors in every bite.”
The bahn mi sandwich originating from Vietnam consists of a French baguette base filled with savory meat, cilantro, pickled daikon and carrots, cucumber and a smear of pate, she added.
Crossing continents
Flavors from multiple continents are showing up in food trucks and perhaps soon in retail stores.
“Spanish and Portuguese flavors have recently been popping up in restaurants, as well as flavors from cuisines that are heavily influenced by their history, like Filipino cuisine,” Mr. Stanley said. “Think smoked paprika, olive oil, dried fruits, pork, burnt sugar and custard.”
Ms. Adrian said simit, popular in Turkey, is a cross between a hot pretzel and an everything bagel. It may come with savory toppings.
“Smoked onion and garlic with whole grains and seeds, fire-roasted tomato, red and green bell pepper and asiago for a Mediterranean profile or incorporating chilies and dried vegetables into the dough to create any number of globally inspired flavor profiles,” she said.
Ms. Lyons said doubles, a street food from Trinidad and Tobago, consist of two fluffy, slightly chewy flatbreads known as “bara,” filled with a spicy chickpea curry and served often with a tangy tamarind sauce. Bunny chow from South Africa is created by hollowing out a loaf of bread and filling it with a savory curry that may include chicken, lamb or beans. The comfort food features a blend of spices and rich flavors.
“In today’s interconnected world, consumers are enthusiastic about exploring global cuisines,” Ms. Lyons said. “With increased access to cultural influences, many consumers are eager to embark on a culinary journey across the globe. Introducing these flavors into traditional grain-based food can make consumers feel safer by gradually venturing into unfamiliar flavors while still having something familiar and approachable.” – Source: Photo: ©SUNDRY PHOTOGRAPHY – STOCK.ADOBE.COM

Applebee’s franchisee to open To Go and delivery unit on Long Island
New restaurant will debut with limited tables; pickup lockers and design aim at improving delivery times.
Ron Ruggless | Sep 08, 2023
Doherty Enterprises Inc., the Applebee’s Neighborhood Grill & Bar franchisee, will officially open a new first-of-its-kind To Go version of the traditional casual-dining concept on Tuesday, Sept. 12, the company said this week.
The Allendale, N.J.-based company, which also has its own concepts as well as franchised units of Applebee’s and Chevys Fresh Mex, said the new To Go unit in Deer Park, Long Island, “will provide quick and convenient service to guests on the go who crave the delicious meals only available at Applebee’s. “Like a fast-casual restaurant, this location will include a few dine-in tables without table service in addition to the latest to-go technology, such as pickup lockers,” the company said in a news release. “The To Go-only location was also designed to maximize the speed of service for delivery through Applebees.com and partners such as Uber Eats, DoorDash, and GrubHub.”
The new Applebee’s To Go official grand opening celebration will be held Tuesday, Sept. 12 at 11:30 a.m. EDT. It is at 403 Commack Road in Deer Park, N.Y. Applebee’s has been testing pickup windows for several years. “Enjoying your favorite Applebee’s entrees and appetizers when you’re ‘on the go’ has never been easier,” said Kurt Pahlitzsch, Doherty Enterprises’ vice president of operations, said in a statement. “We’re committed to finding new ways to meet the needs of our guests so they can enjoy the meals they love from Applebee’s in a convenient and efficient way.”
The company said residents in the area, which also includes neighboring Babylon and West Islip, will be able to place an order and pay via Applebees.com or the Applebee’s mobile smartphone app. After they select the “to go” option at checkout, they will be given an estimated pickup time. Once they arrive at the Applebee’s location, they will be able to grab their order from the new pickup lockers that serve both guests and delivery drivers. The new pick-up lockers enable quick, contactless, food order handoff with the click of a smartphone.
The company said the location is expected soon to offer various bar beverages, including limited beer, wine, and liquor selections to go adults with identification.
It will be open Sunday through Thursday from 11:30 a.m. midnight and Friday and Saturday from 11:30 a.m. to 1 a.m.
Applebee’s is franchised by Glendale, Calif.-based Dine Brands Global Inc. Doherty Enterprises’ owns and operates more than 130 restaurants, including its own Shannon Rose Irish Pub and Spuntino Wine Bar & Italian Tapas concepts. – NRN.

Chronic Tacos Collaborates With Rock Band Incubus For Hollywood Bowl Give Away

Chronic Tacos, the southern California Mexican grill chain, recently announced a new collaboration with the multi-platinum rock band Incubus.
Incubus, known for their unique funk/pop/rock sound, is set to play Los Angeles’ historic Hollywood Bowl on October 6. Chronic Tacos is giving five fans the opportunity to win free tickets to see the band, which will be performing their fan favorite 2001 “Morning View” album in its entirety, along with a selection of their greatest hits.
To enter for a chance to win, customers must visit Chronic Tacos’ official Instagram page (@chronictacos) through September 15.
“Teaming up with Incubus for their performance at the Hollywood Bowl aligns with our values of living the #tacolife,” said Michael Mohammed, Chronic Tacos CEO. According to the brand, the #tacolife is “all about good food, good vibes and good experiences,” and is reflected in each taco shop featuring original artistic designs inspired by traditional “Day of the Dead” art along with lively music.
Previously, Chronic Tacos, which embraces the California marijuana-friendly lifestyle (chronic is term for high-quality marijuana), has teamed up with several popular marijuana brands and services such as Weedmaps, Hyperwolf, Butter, Kush Cups and Swifts among others.Inspired by traditional Mexican taquerias, Chronic was founded by two Orange County, Calif., locals in 2001. The chain has locations across the U.S. as well as in Canada and Japan, and will be opening new stores in the Los Angeles region in Redondo Beach and at Los Angeles International Airport by the end of 2023. – Source: by Teresa Buyikian.

Chick-fil-A is working to make life easier for its mobile-order customers.
The chicken sandwich chain this week said it plans to add mobile order lanes to drive-thrus in 300 locations this year, or just more than 10% of its more than 2,800 locations. It also promises to expand the lanes to more locations in 2024.
It’s the latest evidence of the Atlanta-based chain’s growing aggressiveness on digital orders. The company is testing digital-centric prototypes, for instance, and will now start preparing customers’ mobile orders while they’re on their way to the restaurant.
The company says its mobile order lanes, which Chick-fil-A calls “Mobile Thru,” have proven popular with customers: 85% said they would use the service again and 90% said the service went smoothly. The company started testing mobile order lanes last year.
“Our hope with Mobile Thru is to help guests experience the drive-thru quicker than ever before,” Julie Ledford, principal program lead on Chick-fil-A’s service and hospitality team, said in a statement. “By dedicating one of our lanes exclusively for mobile order pickup, we are creating an easier and more efficient experience for our guests on the go.”
Chick-fil-A said customers making a mobile order simply have to select “Mobile Thru” as their pickup destination, if available in their local market. The app then features a QR code, which customers scan in the mobile lane before getting their food from an employee.
Mobile orders have become increasingly popular at fast-food chains in recent years, particularly in the post-pandemic era as consumers have grown accustomed to ordering food from an app that they pick up at the restaurant.
Just about every major fast-food chain has focused more of its attention on that area, largely because of consumers’ growing use of the channel but also because of the connection with loyalty programs, which provide chains with one-to-one marketing and more consumer data.
Giving customers options to pick up their mobile orders, however, has led a number of chains to explore different options, such as pickup shelves or lockers. But lanes in the drive-thru have also become common, pioneered by chains like Chipotle that use mobile order lanes rather than traditional drive-thru lanes.
For fast-food brands, the lanes could potentially ease congestion in the drive-thru. Few chains run into as many challenges with drive-thru congestion as Chick-fil-A. A typical stand-alone Chick-fil-A generates more than $8 million in revenue per year, and backups in the drive-thru have led to lawsuits and various headaches with local regulators.
Chick-fil-A said its Mobile Thru customers receive their meal faster, and they “don’t diminish the experience of traditional drive-thru customers.”
“We understand that Chick-fil-A guests can experience wait times while ordering at a busy restaurant, which is why we created a new convenient drive-thru option,” Ledford said. – Source ; Restaurant Business.

How Golden Corral Pulled Off a Comeback for the Ages
AFTER THE COVID PANDEMIC SHUT DOWN THE SYSTEM, THE BUFFET GIANT HAS RESPONDED WITH RECORD SALES, NET STORE GROWTH, AND A NEW FAST-CASUAL CONCEPT.
Bankruptcy was a potential reality for Golden Corral three-and-a-half years ago.
Its buffet operations and COVID restrictions did not mix at all, forcing hundreds of restaurants to shutter at once. The situation was so dire that the company allowed board members to resign if they wished.
None did.
Questions surrounded Golden Corral’s future as a viable company, but a steadfast resilience-filled leadership filtered down to franchisees. After several enhanced sanitation protocols, makeshift drive-thrus in parking lots, a couple of bankruptcies by franchisees, the net closure of more than 100 restaurants, and the removal of the well-known chocolate fountain, Golden Corral finds itself still standing in 2023. The brand grew by a net of three stores in 2022 and is setting record sales marks this year.
“The best thing about it is God has proven he loves a buffet,” says CEO Lance Trenary. “And so we’re here and we’ve gone from surviving to thriving. And we’re really enjoying our position with where we are financially. Our company’s balance sheet is stronger than it’s ever been in our 50-year history. We’re completely debt-free now. And it gives us the freedom to invest in all these things—our people, our technology, new facilities, new concepts, helping our franchisees grow their businesses faster and further than they’ve ever been able to do it. It’s just provided so many great avenues.”
In June, the 360-unit chain earned $102,000 in average weekly sales per store, a new record. Trenary estimates that five restaurants are on pace to reach $10 million in sales this year. If not that, definitely in the high $9 million range. Same-store sales are up 18 percent year-to-date versus the same period in 2022. Keep in mind that Golden Corral finished last year with 14 percent comp growth. Meal count is growing as well, so increased sales aren’t just a result of higher average check.
“I remember our founder called me, James Maynard, and he said, ‘I remember when we started, we just wanted to get to $10,000 a week, and here you are doing $102,000 a week,’” Trenary says. ” … We have to pinch ourselves every day to wake up and think about the exciting things going on at Golden Corral.”
The CEO attributes success to strategies that have been deployed since the early days of COVID, like not taking as much price despite feeling the same food and wage inflation as competitors. The company didn’t cut variety or abundance either. Trenary believes guests began to recognize Golden Corral’s value proposition and the consistent, made-from-scratch quality that didn’t waver.
Golden Corral put itself in a position to not significantly raise prices by meticuously focusing on all P&L line items. The chain worked hard to mitigate food costs, which is somewhat easier with a buffet since it can feature different foods based on what type of buy the company may get. The brand works closely with supply partners for the right purchase opportunities, but nothing that skimps on quality. Golden Corral did use some price to cover certain inflation, especially red meat, but over four years—from 2019 to 2023—prices have risen just 15 percent. Trenary says that’s 10 percent below the family dining category and $2.80 cheaper than the brand’s segment. Golden Corral’s ticket average is around $14 per person.
Over three years, the chain has experienced 20 percent wage inflation, but labor costs remain down compared to the prior year. That’s a result of work on technology, recipes, and the layout of bars. This summer, Golden Corral hired chief information officer Dawn Gillis, who will lead the transformation of the brand’s tech stack. That’s everything from POS to accounting systems and guest-facing loyalty programs. The objective is to reduce back-office time by 80 percent, and the company is well on its way to achieving it. For instance, Golden Corral is required to take temperatures of everything along its bar multiple times per day and enter the readings in the back office. The brand now uses an infrared device that takes temperatures and automatically feeds them into the system without managers having to touch anything. Staffing is led by a mantra of “one team, one focus,” meaning everyone in the organization is treated with the same mentality and methodology. Golden Corral wants the CEO, down to the new accounting clerk, to have the same type of benefit packages, so that when the company performs better like it’s currently doing, anyone can celebrate the success.
Growing sales have allowed Golden Corral to invest more in employees. The goal is to create an environment in which no one wants to leave. In three years, the company has only lost a couple of people from its support center. The restaurant was certified as a “Most Loved Workplace” by Newsweek, alongside the likes of Google and Starbucks. It was also recognized on Yelp’s 50 Most Loved Brands of 2023.
“We have what we call a people-first culture, and we’re working very hard to find unique ways to take great care of our people so that they can continue to enjoy great careers with Golden Corral,” Trenary says. “And that’s a really important part of it because if you don’t have that ongoing training cost of new hires, the loss of productivity from bringing someone new in and trying to train them, then you gain so much in your efficiency. So we work just as hard on retention as we do anything in our business because we want our people to stay with us for long times.”
Outside of the P&L, the brand shifted its manner of attracting customers by introducing a multicultural approach to marketing and advertising. The chain took a hard look at its demographics, of which African American and Latino guests comprise a large portion. Latino customers are growing at a faster rate than any other group. Golden Corral attempted to match that expansion with its advertising. The chain put out commercials on Telemundo but dubbed it in English. The company discovered in focus groups that it was almost an insult to the Latino culture, so it responded by filming English and Spanish versions of its commercials using bilingual Latino actors. Additionally, Golden Corral uses an African American family to promote holiday specials.
“That multicultural approach is really resonating,” Trenary says. “We’re getting letters, we’re getting comments from our Latino guests in particular saying we appreciate the respect that you’re offering our community. And it’s paying off. Our Latino population in Golden Corral has grown by 30 percent over where it was.”
Along with the multicultural perspective, Golden Corral’s marketing is going multichannel. The chain did very little with digital prior to the pandemic, but it now accounts for 30 percent of advertising spend— all to reach guests where they are. That means Instagram, Facebook, Twitter, and even TikTok.
The brand’s recent Attitude & Usage study showed that it’s getting a significant amount of new trial from younger consumers that it hasn’t seen in years. This youthful demographic is handing Golden Corral “off the charts” scores on cleanliness, value, service, and food quality.
“Our net promoter score jumped so much that our analysts, which is an outside third-party group, had to go back and research it just to make sure that it was being done correctly because our analysts were telling us they’ve never seen that big of a jump in one 16-month reporting period,” Trenary says. “That is icing on the cake. Our operators are really delivering on the promise that we’re making to our customers through the media approach.”
The unknown nature of the buffet at the beginning of the pandemic pushed Golden Corral to diversify. More than anything, COVID emphasized that customers have limited access to the chain’s products. Back in 2019, off-premises accounted for less than 2 percent of sales. There were no pickup windows or takeout/delivery stations. Golden Corral uses a weigh-and-pay system, in which guests fill containers as much as they can and pay by the weight of the food.
“As we researched it, what we found is that people were really wanting something in the fast-casual segment that could deliver a wholesome family meal replacement but that they could access quickly, easily, and how they wanted to,” Trenary says.
Golden Corral solved this by developing Homeward Kitchen, a fast-casual spinoff that took about a year and a half to get off the ground. Regarding its menu, Homeward provides a range of dishes, including comfort food main courses, salads, bowls, sandwiches, starters, desserts, and side items, much like what you’d find at its traditional sit-down establishments. The offerings blend the familiar with the novel, featuring staples like Slow-Cooked Pot Roast with Braised Vegetables, Golden Fried Shrimp, and Homestyle Mac and Cheese, alongside new additions such as the Cajun Mac & Cheese Bowl and Fried Buttermilk Chicken Sandwich available in Classic, Nashville Hot, Korean Style, and Honey Dipped variations.
The restaurant will debut in Southern Pines, North Carolina, in December with a small dining room and drive-thru window. Although the opening is still months away, operators are eager to bring the concept to their market. The company has already identified almost 500 trade areas across the U.S. that would fit the fast casual’s profile. The second and third sites are currently being developed.
A separate management team was brought in to handle Homeward. There will be some crossover with Golden Corral, but the idea is to launch it as an independent entity.
“Franchisees like to diversify their portfolio of restaurants,” Trenary says. “And so we said, ‘Well, they should never have to leave our system. Let’s give them something that’s 3,000 to 3,500 square feet that has a drive-thru window.’ We’re going to see about 75 or 80 in the dining room, but much smaller footprint, still really good AUVs we’re anticipating, about $3.5 million, and we think we can get there pretty quickly.”
The brand opened another concept, GC Grill House By Golden Corral, that goes back to its roots as a steakhouse. Trenary says the Lake Placid, Florida, location has performed well, but there are no plans for further expansion. Instead, the chain will focus on building out Homeward and its legacy buffets; a unit recently opened in Puerto Rico and there are additional restaurants under construction on both coasts.
Newer stores showcase the Gateway redesign and a modernized Golden Corral. The company sees double-digit sales growth every time a restaurant undergoes a remodel. Trenary noted that one unit in Garner, North Carolina, is seeing sales up 45 percent year-to-date versus the year-ago period.
“It’s interesting because a lot of landlords that were difficult for us to work with in the early part of COVID really couldn’t see the future for a buffet,” Trenary says. “And they wouldn’t make a deal with our franchisees to be able to give them any kind of relief in the early part of COVID. And so consequently, when the leases were up, franchisees had to leave. And now those same landlords are calling us back saying, ‘Well, maybe I was a little premature about exiting that business.’”
Trenary and the rest of his team know customers are going to keep eating out. Guests don’t change their dining habits, but they do alter how much they’re going to spend, and in today’s inflationary times, they’ve become quite discerning about where to visit. Gone are the days when restaurants could be one- or two-dimensional, Trenary says. It’s not enough to be known for great food; it has to be paired with hospitality, facilities, technology, and community involvement.
According to Trenary, executing a brand has become more complex than ever. But Golden Corral is up for the challenge.
“We’ve captured lightning in a bottle at Golden Corral,” Trenary says. “And I want to make sure that we figure out how to keep the lid on it to continue on with the great momentum that we’ve got going.”

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