“This acquisition complements our existing health and nutrition portfolio in terms of brands and channels,” said Greg Behar, CEO of Nestle Health Science . . . .

Nestle Buys Vitamin Maker Bountiful’s Main Brands for $5.75 Billion

has bought the main brands of vitamin and supplements maker The Bountiful Company for $5.75 billion, the world’s largest packaged food company said on Friday, the latest expansion of its health and nutrition business. The KitKat chocolate bar maker bought Bountiful from KKR in a deal that covers the U.S. company’s Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride brands. Nestle had flagged talks on Monday. The deal, expected to be completed during the second half of this year, did not include the sports and active nutrition brands Pure Protein, Body Fortress, and MET-Rx, as well as Dr.Organic and the Canadian over-the-counter business, which did not fit with the rest of Nestle Health Science business. “This acquisition complements our existing health and nutrition portfolio in terms of brands and channels,” said Greg Behar, CEO of Nestle Health Science. “It will establish Nestle Health Science as the industry leader in mass retail, specialty retail, e-commerce, and direct-to-consumer in the U.S. while offering significant opportunities for geographic growth,” he added. Nestle is paying 3.1 times the value of Bountiful’s sales for the brands, and a multiple of 16.8 times of their earnings before interest before tax, depreciation, and amortization (EBITDA). The acquired brands had sales of $1.87 billion in the year to March 2021, with an EBITDA margin of 18.3%. The margin is expected to increase above the Nestle Group average once synergies are fully implemented by 2024, the Swiss company said. – Source: CNBC.

Some states shut down indoor dining again; others expand dine-in capacity limits, and the CDC says dining outdoors unmasked is safe for the vaccinated . . . .

Reopenings and Reclosings: States, Municipalities Adjust Dining Restrictions

Several states and local municipalities have begun easing restrictions on restaurant dining as new COVID-19 cases have declined in those areas, while others have moved to tighten restrictions as positive cases trended in the opposite direction. The Centers for Disease Control and Prevention this week also issued new interim recommendations for people who are fully vaccinated, saying it is safe to dine unmasked outdoors with members of multiple households. The CDC cautioned, however, that even fully vaccinated individuals should take precautions in indoor public settings, and in certain crowded outdoor settings and venues, by wearing a mask. Some states, including Louisiana and Pennsylvania, followed suit by lifting some mask restrictions. In Louisiana, Gov. John Bel Edwards on Tuesday said the state’s mask mandate would be lifted for certain businesses, including restaurants and bars. However, he continued to recommend wearing masks indoors and in crowded outdoor settings, noting this was especially important for people who have not been vaccinated.

Here’s a roundup of moves by other states and cities:

• Oregon shuts down indoor dining

In Oregon, 15 counties have been moved into the “extreme risk” category due to increased hospitalizations. Restaurants in those counties, which include Multnomah, where Portland is, will have to shut down indoor dining beginning April 30. The Oregon Restaurant & Lodging Association protested the announcement of the new restrictions by Gov. Kate Brown, saying that no “superspreader” events had been linked to the restaurant industry in the state since the start of the pandemic more than a year ago. “Restaurants are taking the necessary precautions to ensure the safety of their employees and customers dining indoors,” said Jason Brandt, president and CEO of the ORLA. “It is impossible to run a restaurant two weeks at a time let alone one week at a time, which is now Governor Brown’s plan for the coming weeks.” The state meanwhile did expand outdoor dining capacity to 100 customers, from a previous limit of 50, but that will provide minimal benefit for most restaurants, the ORLA said, especially given the upcoming Mother’s Day holiday. “The industry desperately needs their No. 1 sales day coming up on Sunday, May 9,” said Brandt. “Indoor dining restrictions for a second Mother’s Day in a row would be the ultimate blow to our local restaurants struggling to survive.”

• Washington state cuts restaurant capacity

In neighboring Washington, Gov. Jay Inslee earlier this month moved three counties into the more restrictive “Phase 2” of reopening, which requires businesses to reduce indoor capacity to 25%, from 50%. The move affected Cowlitz, Pierce, and Whitman counties. This week, state health officials in Washington warned that King County, home of Seattle, and Snohomish County both could be moved back into Phase 2 next week.

• Michigan asks residents to avoid indoor dining

Earlier this month, Michigan Gov. Gretchen Whitmer asked residents to voluntarily avoid dining indoors at restaurants as that state has seen a huge spike in COVID cased during the past several weeks. She also called for the suspension of youth sports and in-person school learning, and warned that stricter measures were “not off the table.” “Support your local restaurants by choosing outdoor dining or carry-out,” her office said in a statement of safety recommendations.

The Michigan Restaurant & Lodging Association called the effort “misguided,” citing the low incidence of COVID cases involving restaurants. “Restaurant operators have done an extraordinary job of maintaining a safe and sanitized environment for guests and employees alike since reopening in February and it shows in the data,” the MRLA said in a statement. “While Michigan is experiencing an unfortunate surge that has fashioned nearly 1,000 new and ongoing COVID-19 outbreak investigations, an insignificant 0.3% of those investigations involved restaurant patrons.”

• Philadelphia, D.C. loosen restrictions

Meanwhile, several states and municipalities have begun easing restrictions on restaurant dining.

Beginning May 7, Philadelphia will expand indoor dining capacity to 50%, from 25%. Businesses that meet the city’s “enhanced ventilation standards” will be able to open up at 75% of capacity, up from the current level of 50%. In addition, the limit for the number of customers per table will be raised to six, from four. In Washington, D.C., Mayor Muriel Bowser announced that some dining restrictions will ease beginning May 1, although indoor dining capacity remains capped at 25%, according to the Restaurant Association of Metropolitan Washington. Under the new guidelines, D.C. restaurants can seat 10 people per table, up from six, and live music will be allowed outdoors at restaurants. In addition, alcohol sales to customers sitting outside will be permitted without a food purchase.

• New York lifts curfew

In New York, Gov. Andrew Cuomo said this week that the 12 a.m. food and beverage service curfew will be lifted for outdoor dining areas beginning May 17 and for indoor dining areas beginning May 31. In addition, the 1 a.m. curfew for catered events where attendees have provided proof of vaccination status or a recent negative COVID-19 test result will be lifted beginning May 17, with the curfew for all catered events set to be lifted on May 31. Also, beginning May 3, seating at bars will be allowed in New York City, consistent with guidance that is in effect statewide. “We thank the state for listening to our request for a reopening plan, bringing New York in line with many of our neighbors,” said Melissa Fleischut, president and CEO of the New York State Restaurant Association. “With vaccinations going up and positivity rates going down, the hospitality industry can set our sights on rebounding this spring and summer as we scratch and claw our way back to profitability, which for many has seemed impossible.”

• Connecticut to nix almost all restrictions

In neighboring Connecticut, Gov. Ned Lamont announced plans to lift all of the state’s restaurant restrictions by May 19, with the exception of certain mask requirements. Some restrictions will be lifted on May 1, including moving the curfew for restaurants back one hour, to 12 a.m. midnight, and the eight-people-per-table limit will be lifted for outdoor dining only. Bars that do not serve food will also open for outdoor service. – Source: NRN.

Starbucks’ U.S. same-store sales grew 9%, trending positively for the first time since the start of the pandemic in 2020 . . . .

Starbucks U.S. Sales Have Fully Recovered Since the Beginning of the Pandemic

Starbucks claims that its U.S. sales have now fully recovered from the economic effects of the pandemic, reporting positive same-store sales growth of 9% for the second quarter ended March 28. It’s the first time Starbucks’ U.S. sales have trended positively since the pandemic began and represents a significant improvement over -5% same-store sales decline in the first quarter. Starbucks CEO Kevin Johnson predicted last quarter that Starbucks would be fully recovered in the U.S. by the end of the second quarter. The turnaround for Starbucks’ U.S. division was driven by a 21% increase in average ticket for U.S. sales, partially offset by traffic challenges. Overseas, international same-store sales increased significantly by 35%, driven by traffic and ticket growth. Starbucks’ second-largest market, China, meanwhile saw an explosive 91% same-store sales growth last quarter driven again by traffic growth. “I am very pleased with our progress to date in fiscal 2021, as our second-quarter results demonstrated impressive momentum in the business with full sales recovery in the U.S.” Starbucks CEO Kevin Johnson said in a statement. “Our strong results validate our ability to adapt to changes in our environment and the needs of our customers.” One of the largest drivers of transactional growth over the quarter was digital sales, Johnson said in Tuesday’s earnings call. Ticket frequency (people ordering more often) and the growing number of Starbucks rewards members (up by one million last quarter to a record 22.9 million members) contributed to the company’s momentum. 90-day active members of the Starbucks Rewards program have expanded by 18%. “As we celebrate our 50th anniversary, we remain confident in our ability to execute our growth at scale agenda and unlock the full potential of the Starbucks brand,” Johnson said in a statement. Starbucks reported revenue gains of 11.2% to $6.67 billion as compared with $5.6 billion the same quarter the year prior. The company reported a net income of $659.4 million of 56 cents a share, up from $328.4 million or 28 cents a share the year earlier. Starbucks opened five net new stores last quarter and now has 32,943 stores globally.  – Source: NRN.

From smaller footprints to cheaper real estate opportunities the president of 14-unit Mesa, Ariz.-based Angry Crab Shack reflects on pandemic-era restaurant design . . . .

Angry Crab Shack President Andy Diamond on How the Pandemic has Changed Restaurant Design and Infrastructure

While the largest restaurant chains have spent the second half of the pandemic investing in next-gen restaurant design and pivoting to drive-thrus and pickup windows, they’re not the only ones. On this episode of Extra Serving, Andy Diamond — president of the Mesa, Ariz.-based, 14-unit, Cajun seafood casual dining restaurant — speaks about how even smaller chains are getting in on the restaurant redesign craze. Over the past year, Angry Crab Shack — normally an experiential in-person dining brand — pivoted to third-party delivery for the first time and began focusing on off-premise. The result? They’re also looking at shrinking footprints and new store layouts that emphasize customer speed and convenience, in addition to their traditional experiential in-store dining. “One thing this [pandemic] has shown is spacing is important in a restaurant it makes things more efficient you don’t have guests clustering,” Diamond said. “We’re now up to 20% to-go orders and I think to-do’s will still be 10-12% in the future, so more than double pre-pandemic levels.” Now Angry Crab Shack considers that shift in consumer needs when looking at expanding.” “So now when we look at new restaurant locations, we say, ‘okay, what are we doing to do about a to-go area?’ Whereas before we were not really thinking that.” – Source: NRN.

Stores aren’t just outperforming 2020, they’re beating 2019 levels as well . . . .

Cheesecake Factory Sales Soar 220 Percent as Recovery Ignites

The phrase “pent-up demand” has been tossed about by restaurants in recent weeks. Stimulus checks lined consumers’ pockets and could ultimately hike sector sales as much as 30 percent, according to Rabbobank and Earnest Research. The country reported an average of 2.7 million daily vaccinations over the past week, the CDC recently said. And more than 40 percent of Americans have received at least one shot. It’s even higher—54 percent—for people 18 and older. More than half of adults received one in 34 states and the District of Columbia. The week that ended April 28 also marked the fifth consecutive period two-year comp sales growth was positive for restaurants, according to Black Box Intelligence, with the most recent seven-day run representing the best sales and traffic results in well over a year. So there’s something concrete to this “pent-up demand” mantra beyond just a hopeful rallying cry. And then there’s what’s happening at The Cheesecake Factory. The casual company reported Q1 results Wednesday afternoon that revealed some promising trends. Same-store sales increased 2.8 percent, year-over-year, yet remained down 10.4 percent relative to Q1 2019. However, fiscal 2021 Q2 quarter-to-date through April 27 (basically comparing to the depths of COVID last year, when comps plunged 56.9 percent in Q2 2020), the company’s comps jumped a jaw-dropping 220 percent. While a staggering result, the two-year view might be more notable. Relative to the same period in fiscal 2019, The Cheesecake Factory’s comps are up 7 percent, despite the fact stores, on average, are operating at 60 percent indoor capacity (about two-thirds of those units include patios). There remain “a handful” of restaurants at 25 percent, perhaps nine or 10, CFO Matt Clark said Wednesday. And the difference between stores running at 50 and 75 percent is significant, roughly high-single-digit comps and as much as 10 percent or more in certain spots. As Clark put it simply, “definitely there’s room [to grow], right?” Oppenheimer & Company analyst Brian Bittner said the brand’s trend against 2019 levels proved “just incredible demand out there.” Is it stimulus, off-premises, or something more sustainable? “You know, nobody has that crystal ball,” Cheesecake Factory CEO David Overton said. “I think, you know, we typically get a little less benefit from stimulus than [those brands] sort of lower down in the price ticket. It does feel when we look at the trend, the last four weeks have been remarkably consistent which is a hallmark of The Cheesecake Factory, and is a really good leading indicator for me.” “And I’m into the statistics and look at the daypart, the day of the week, the geography,” he added. “When I start to see aggregated numbers behave in a very normalized fashion, week over week, I think that that’s a very positive signal. I don’t know that’s permanently sustainable, but it certainly feels like the momentum is there outside of the stimulus money.” By mid-March, nearly all Cheesecake Factory restaurants, as well as the company’s other concepts, were open for some measure of indoor dining. The kicker, though, remains dollar volume coming outside the four walls. As dine-in returns, The Cheesecake Factory continues to drive off-premises sales equating to more than $4 million on average, per unit, on an annualized basis. Before COVID, it was closer to $1.7 or $1.8 million. The Q1 rate is down from nearly$5 million the previous quarter, but understandably so considering 20 percent more of the system added dine-in service. Still, $4 million is more than an average Cracker Barrel raked in before the pandemic. A recent Cheesecake Factory in Washington, D.C. generated opening-week sales north of $230,000, and that was at 25 percent indoor dining capacity. Weekly sales in March at restaurants with reopened dining rooms measured to about $11.5 million AUVs, outpacing 2019 numbers of $10.76 million, which were industry-leading. If restaurants maintained Q1 sales (including March) all year long, the chain would be looking at $10.4 million AUVs. But returning to the recent 220 percent comps burst Q2 through April 27, Cheesecake Factory restaurants are averaging $222,500 per week. Pull that across a full year, and stores would report $11.6 million on average, per unit, on an annualized basis. The inflection point for The Cheesecake Factory came in March with California reopenings. The demanding piece was always part of it. “Mostly what we’ve seen is a very stable trend after reopening,” Clark said. “And, we typically build slowly during this quarter with seasonality. And then, just from our consumer perspective, it looks and feels like people are going to want to get out and celebrate graduations and do some things like that.” To-go and delivery currently account for a third of The Cheesecake Factory’s total sales. That was about 40 percent last quarter, suggesting there’s significant staying power for the channel, even in the face of recovered consumer mobility. It’s almost sure to slide back further as dine-in capacity lifts, but imagining it going all the way back to pre-virus norms is difficult at this point. The brand curtailed off-premises marketing recently as sales strengthened in March and April. Basically, The Cheesecake Factory has gotten far enough and crossed enough adoption gaps that it doesn’t have to. “We believe the appeal, quality, and increased awareness of our offering has enabled us to drive the highest level of off-premises sales dollars and maintain the highest level of off-premises sales when indoor dining rooms reopen relative to our publicly traded casual-dining peers,” Gordon said. “And our ability to sustain off-premise sales around these levels for over a year reinforces our belief that a meaningful increase in off-premise sales could be a longer-term sales driver for The Cheesecake Factory as we emerged from the pandemic.” Executives have talked at length about the topic over the past year, as you might expect. What’s to credit for the sustained volume? There are several triggers. One being the brand did not scale back its menu in any fashion. The breadth of offerings, Gordon said earlier, enabled it to differentiate in the off-premises channel, just like it did with dine-in before coronavirus. The reasons are just a bit different. With off-premises, it unlocks order frequency and repeat business since the company doesn’t bank on one product. Also, variety allowed Cheesecake Factory to target dayparts at its own directive. It could market and push awareness toward burgers, for instance, if it wanted to compete at lunch. In Q4 2020, the brand tried a $15 lunch special that included a slice of cheesecake—an effort that drove higher incremental sales attachment compared to a September pilot. It also diverted sales to late afternoon shoulder periods. Broadly, including dine-in, the daypart conversation has evolved for the brand of late. “One of the things that I would point out that I think is good positive for us is the biggest growth we’ve had in dayparts if I look at the most recent trends is the midafternoon,” Clark said. “And so, lunch was even slightly bigger than dinner, too. And have been two areas rebuilding the shoulders, right? And then, the other thing I would say is that from a comp perspective, we are seeing an outsized performance in the middle of the week. So that’s also positive because were the areas of pressure have been for us at the middle of the day and in the middle of the week. And we are seeing outsized gains there recaptured.” One of the most notable off-premises levers for The Cheesecake Factory might actually value, which generally isn’t a company hallmark. The sheer size of the brand’s off-premises lineup gives it the ability to present value across the menu and offer flexibility with pricing, particularly in markets where wage pressure continues to ratchet up. A range of price points and offerings made it so families can order, “easily one, two or three times a week,” Gordon noted. Additionally, The National Restaurant Association said in its 2021 State of the Industry Report that 52 percent of adults, including 63 percent of millennials, said they’re more likely today to incorporate restaurant fare into their home-prepared meal. In other terms, “blended meals” are on the rise—the idea of adding a main dish, side, or dessert, into an at-home occasion. And the Cheesecake Factory was built for such a movement. But the pricing note can’t be understated, either. The company runs low single-digit, 2–5 percent or so, on its delivery menu specifically. Clark was asked Wednesday by Wells Fargo analyst Jon Tower, “why not make that transaction itself either margin or penny—profit accretive, or even margin neutral to accretive to an in-store transaction.” Or, phrased another way, why not raise delivery prices to offset margin pressure? “The way we think about it is agnostic to the guest’s experience,” Clark said. “I mean, I think that David has grown this company targeting absolute guest satisfaction. And we think that if it’s basically margin neutral, it is a fair proposition and will drive the business, and we’ll make our money that way.” “And that’s where we’re at today,” Clark continued. “And so, the more that other companies take more pricing, the better off we’re going to be actually, is where we sit. So I think it’s a little bit of a contrarian view, but it seems to be working pretty well for us.” The Cheesecake Factory can also take this approach because of scale and leverage, and its partnership with DoorDash. For example, when the company mentioned curtailing marketing, that doesn’t include top-of-app preference and some of the normal considerations it gets as an exclusive partner. Cutting back instead referred to promotional activities, like discounting cheesecakes. But the overall off-premises flow has been relatively consistent in terms of where sales are coming from. It’s stemmed 40 percent delivery, 30 percent online ordering, and 30 percent pickup. “And we do take a little bit of extra pricing as was referenced low-single business for delivery,” Overton said. “So when you put all of those pieces together, the off-premises business, it basically ends up around the same margin as on-premises. And so, we’re pretty agnostic about where we drive the sales as long as we’re getting them.” Another thing helping the brand, Overton said, is that it’s at 90–96 percent of pre-COVID staffing levels, despite the challenging hiring market. It was recently recognized as one of the Fortune 100 Best Companies to Work For for the eighth consecutive year. The company ranked No. 35 and was the only restaurant brand included. “Fortunately, we made the strategic decision on the management staff inside to keep all of our managers in place, which is enabling us to be able to execute, I think, as well as the operators are executing today,” Overton said. On the current state and being above 90 percent, he added, “I don’t know that we have as much catch-up to do, perhaps as some others in our space. We’ve always paid a very competitive wage. We have a very strong career continuum that shows advancement opportunities. We’ve also taken this opportunity to bring back a couple of our recruiters to help at the hourly level, the restaurants so they can stay focused on operations. So, really good about our plan in place.” Overton said he doesn’t see the current staffing situation negatively impacting sales moving forward. “Our operators are doing a great job of retaining the people that we have,” he said. “And that’s been something that we’ve talked about since the beginning of COVID—that retention will be key once we get to this point.”

Off-premises sales continue to push the brand’s AUVs up.

Cheesecake Factory posted revenues of $627.42 million in Q1, compared to $615.11 million in the prior year. The brand recorded COVID-related charges of $4.9 million on costs such as sick and vaccination pay, healthcare, and meal benefits for furloughed staff, as well as additional sanitation and PPP. As noted, nearly all, including 206 Cheesecake Factory locations are back online with dine-in offerings. Only one is operating as off-premise only. Two are currently closed, with plans to reopen by the end of Q2. Overton said the company is on track to open as many as 15 new restaurants across its portfolio this year. This would unfold as two Cheesecake Factory stores, six North Italias, and six Fox Restaurant Concept venues (two Flower Childs). Speaking of North Italia, an acquisition completed in October 2019, the brand opened a Birmingham, Alabama, store in Q1—a new market—and a second Miami-area location debuted subsequent to quarter’s end. Currently, all North Italia locations offer indoor dining and are holding an off-premises mix of 20 percent. Comps are up 8 percent Q2 quarter-to-date versus 2019 levels. The company remains committed to a 200-store figure it previously suggested. “There hasn’t been a market that we moved into yet where it’s caused us to pause and say perhaps that 200 number is not realistic. We think it certainly is realistic. We’ll continue to grow North at about a 20 percent growth rate,” Overton said. “And we’ve seen that guests are responding to it in a very favorable way. So, we’re very, very bullish on the future.” Flower Child, FRC’s fast-casual flagship, tested a digital-forward pop-up format earlier this year in Arizona that featured in-store kiosks. The tech features artificial intelligence that learns individual guest behaviors, Gordon said, and the company plans to incorporate the platform at future openings. – Source: fsr.

The chain launches an expanded Crunchtada lineup along with promotional perks targeted to disappointed Mexican Pizza fans . . . .

Del Taco Takes on Taco Bell with New Menu Items, Digital Campaign

Del Taco is launching a new Crunchtada lineup with a digital campaign aimed squarely at disappointed Taco Bell customers. Last year, Taco Bell supposedly ghosted fans who called for the return of the brand’s Mexican Pizza on social media and other platforms. Their requests went unanswered, Del Taco claims. So Del Taco is “providing crunchy compensation.” The first line of attack is the introduction of three Crunchtadas, one of the chain’s menu signatures. The trio includes the Crunchtada Tostada (a crunchy corn shell layered with slow-cooked beans, salsa, lettuce, and cheddar cheese); the Queso Beef Crunchtada (a corn shell with beans, beef, queso blanco, cheddar, and diced fresh tomatoes); and the Chicken Guacamole Crunchtada (a corn shell topped with beans, grilled chicken, ranch sauce, lettuce, cheddar, tomatoes, and house-made guacamole). Customers can score an exclusive promo code by calling 1-877-3-Ghosted. The code entitles them to a buy-one-get-one-free deal on any Crunchtada from Thursday through May 13. A 15-second digital ad, running on Instagram, Twitter, and YouTube, supports the menu launch and campaign. It asks “Are you seeking restitution for the loss of your Mexican Pizza?” and encourages customers to call the toll-free number and “Del will fight for you.” Del Taco is more than happy to fill the Mexican Pizza void and meet the obvious pent-up consumer demand.” said CMO Tim Hackbardt in a statement. “However, instead of just meeting expectations with a single Crunchtada, we went further by offering a variety that will appeal to vegetarian, beef, and chicken fans.” Fans can also purchase a limited-edition Crunchtada pool float, on sale at the Del Taco Webstore beginning May 24. – Source: Restaurant Business.

Fast-casual restaurant chain Schlotzsky’s is doubling down on meatier sandwiches . . . .

Schlotzsky’s Drafts Terry Bradshaw For ‘Meatier’ Sandwich Tutorial

Fast-casual restaurant chain Schlotzsky’s is doubling down on meatier sandwiches — to the magnitude that it needs Terry Bradshaw to train people how to eat them. That’s the gist of the “Train For A Mouthful” regimen and its three exercises — The Breadlift, The Chew Chew, and The Stacks on Deck — as explained by the pro football icon in a campaign that starts Thursday. It’s part of a BOGO promotion running through May 2 that is designed to generate awareness of meatier sandwiches and is available only to Schlotzsky’s loyalty program members. Starting on March 1, the chain’s more than 300 restaurants began offering larger-portion sandwiches, as seen in this 15-second “It’s A Mouthful”. “There’s so much meat in it, you gotta get your mouth in shape just to get your mouth around it — if you can get your mouth around it,” says the former quarterback and television sports analyst. He goes on to poke fun at the name Schlotzsky’s — a mouthful in itself. “Terry likes to say he’s a big personality with a lot to say, which fits in perfectly with ‘it’s a mouthful,’” Casey Terrell, senior director of marketing at Schlotzsky’s, tells Marketing Daily. “He fits perfectly for the brand — not just as an athlete but just as a personality.” Schlotzsky’s core consumers are about evenly split male/female, in their mid-40s and family-oriented. In addition to reaching that audience, the chain hopes to connect with people “who had come to us before and lapsed. [We want] to get them to come back and try us again,” says Terrell. It’s a strictly digital campaign, although some franchisees will use local cable TV, radio, and out-of-home advertising with “some pretty localized messaging.” The BOGO offer for a medium sandwich can be accessed in the chain’s app and is available only to members of its loyalty program. “This BOGO is a first for us on a national scale, especially doing a loyalty-only promotion,” adds Terrell.  – Source: Media Post.

Think about being on a highway on-ramp in a busy city, at an intersection with no stop signs or in a line forming at the movies . . . .

“No, you go first

When someone says, ,” with a smile and gesture, you may think how remarkable and rare that action is. To yield is to give way. Similarly, in many workplaces, yielding is all too rare. It could be because managers want to hang on to their power or prestige once they have it. Or perhaps they’ve never had a manager who empowered them, so they’re not sure how it works. They may have learned to micromanage from the boss who never seemed to trust them, looked over their shoulders, and closely inspected every aspect of the work as they did it. Exit interviews reveal that micromanagement does not work for most talented employees. Yielding does work. When you yield to your employees, you empower them to think for themselves, to be more creative, more enthusiastic, and probably more productive. Your employees’ enthusiasm and sense of value as team members will increase the odds that they will stay engaged and stick around. Who’s got the right of way? You may be convinced that you could benefit by giving more power to your employees yet find it difficult to know where to start. The rules can be fuzzy or hard to remember, just like the road rules that guide merging into a roundabout or crossing an intersection that has no stop signs. In the matter of powering down to your employees, the uncertainty is even greater because there are no rules. Your organization establishes cultural norms and role models, but as an individual manager, you have tremendous leeway to give power. Here are some guidelines for empowering your people: Stop micromanaging. Micromanagement kills creativity and stifles learning. Let go. Stop looking over people’s shoulders. Ask them what level of inspection, critique, or control they want you to use as you manage them. And encourage them to call you out when you haven’t delegated something you should. Negotiate ways to get quality work done while letting them do it their way. Trust your employees to come up with the answers. Take the time to encourage new ideas, good and bad. Even if you would have done something another way, consider the approaches they create, and support them all the way. Manage your reactions when you yield and they crash! Powering down and yielding are sometimes risky, and failures will happen. Instead of punishing, collaborate with your empowered employees to learn from the mistake. Focus on what they could do differently next time around, rather than the rearview-mirror approach of what they should have done. A colleague put it this way: “Trust me, then teach me.” Serve your employees. Be a resource to them. Yielding doesn’t mean you take the next exit. Empowerment spells disaster in too many cases where the manager tosses decisions and workloads at his employees and then moves on to bigger things. The “No Answers” approach works only if you are willing to brainstorm with them when they are stumped and to give them guidance and feedback along the way. See them as colleagues, not just subordinates. Show it by occasionally doing work that may seem “beneath you.” Working side by side with your employees will strengthen your relationships and increase their respect for you. Include everyone. Your team is no doubt diverse and might include those from different generations, cultural or educational backgrounds, communication styles, and more. They will no doubt react differently to this empowerment shift you’re making. Yielding might terrify a young employee from a traditional patriarchal or hierarchical culture. Ask how you can help this employee take on more decision-making, creating or leading. Listen to and use their ideas. People want a seat at the table. They will tend to withhold their ideas and take less initiative to make improvements when decisions are made without their input. They might be talking, but are you really listening?  Effective listening to the ideas, perspectives, and opinions of your diverse team is not only respectful but also profoundly productive. If you want to engage and retain your talent, give up the need to be right, hide your phone (from you), clear your mind, and really listen. Yielding will increase the odds of retaining your best people. As you give people more power to create, make decisions and truly affect the success of the team, their job satisfaction (and your odds of keeping them) will go up. At the same time, your ability to compete successfully and accomplish your business goals will increase. You have phenomenal power to yield. Try it, and see what happens. – Source: Smart Brief/Leadership.

SANITATION

Meat Industry Summit report . . . .

Automation Can Offer Cost, Time, and Labor Savings

Incorporating automated and robotic systems into meat and poultry processing operations is a growing trend in the industry, but that doesn’t mean every plant should necessarily make the switch. There are a number of things to be considered when automating operations, many of which were shared during the North American Meat Institute’s virtual Meat Industry Summit on April 13 at the “Challenges and Rewards of Advanced Processing Techniques” session. Any processor considering a switch to automated operations at any point in their processing line needs to first consider the common reasons for automation. Waheed Chaudry, the automation project sales engineer for Multivac Inc., said the top reasons for considering automation include: cost, volume, quality and precision, and safety. Mr. Chaudry said companies should consider the following questions: Can the processor reduce the cost of labor or the cost per unit of what is being packaged through automation? Could the company increase the volume of what’s produced by switching to an automated system? Could automation help the company produce a more consistent product from batch-to-batch, line-to-line, shift-to-shift, day-to-day? Would automation help protect workers from unsafe processes during production? “It really starts with knowing your process,” Mr. Chaudry said. “Knowing your challenges – whether we’re talking about volume or financial. Knowing your requirements – there’s the ‘nice to have versus have to have.’ Knowing your components along the way … And knowing your automation partner.” “Knowing your process” starts with documenting how the system currently operates, then identify the problems that automation might help solve, including What’s slowing down operations? What steps are repeating? Why are production goals not being met? Chris Duncan, director of continuous improvement and engineering for Land O’Frost, agreed. “It starts with understanding your process and once you understand your process you can work with your vendors to incorporate that knowledge and take those learnings and run with it.” Choosing the right automation partner is also a crucial step toward success, he said. “It’s important to partner with a vendor who gives you the capability and opportunity to evaluate and test with your product, with their equipment, to understand some of the challenges and understand how you can solve those challenges,” Mr. Duncan said. “Once you can get to that point, you can start crossing off some of those questions and integrating some of those answers into the automation solution.” Another important consideration when looking at automating processing operations is the space new equipment might take up in the plant. “Automation almost always requires more space than manual production,” Mr. Chaudry said. Space allotment needs to be discussed in the early stages of an automation project. In short, Mr. Chaudry said there are five steps to take before moving forward with any automation project:

Define the reason for the automation.

Define and document the current processes.

Identify requirements for the automated system.

Figure out your automation components.

Select an automation partner.
— Source: Food Business News.

KFC and McDonald’s both entered the chicken sandwich wars in late February with their own takes of the menu item . . . .

Chicken Sandwich Wars Pay Off for KFC and McDonald’s, Putting Pressure on Supply

Better late than never.

KFC’s and McDonald’s belated entries into the chicken sandwich wars look to be paying off for the two fast-food chains. Yum Brands executives told analysts on Wednesday that KFC is selling more than twice the volume of its new chicken sandwich compared with past versions. Yum CEO David Gibbs said that initial indications show that customers are returning to KFC restaurants more frequently to buy the sandwich, which became available nationwide at the end of February. “In fact, as we’ve entered [the second quarter], demand for the new sandwich has been so strong that, coupled with a general tightening of domestic chicken supply, our main challenge has been keeping up with that demand,” Gibbs said. Likewise, McDonald’s Crispy Chicken Sandwich, which launched in late February as well is also winning over customers. McDonald’s franchisees are selling an average of 262 chicken sandwiches per day, according to Kalinowski Equity Research’s quarterly survey of operators. That’s below Popeyes’ estimated daily sales of 1,000 sandwiches per location in the early days of its blockbuster launch, but a third of survey respondents said that the McDonald’s sandwich is selling better than their expectations. McDonald’s is expected to share more details on the item’s performance when it reports its first-quarter earnings before the bell on Thursday. KFC’s and McDonald’s versions are similar in ingredients to those of Popeyes and Chick-fil-A. All of them use a breaded filet, brioche bun, and pickles. The primary difference is the breading and frying method, which affect texture and flavor. But the success of McDonald’s Crispy Chicken Sandwich may be contributing to the tight chicken supply mentioned by Gibbs. McDonald’s holds a 30% market share in the fast-food sector, and it has a track record of influencing commodity prices, according to Bank of America Securities analyst Peter Galbo. The chicken supply is a growing problem for the rest of the industry as more restaurant chains add chicken sandwiches to their menus. Chains tend to use smaller-size birds, which are in shorter supply, although meat producers like Pilgrim’s Pride are investing to meet new demand. Popeyes, which is owned by Restaurant Brands International, spent several months locking down its chicken supply after its sandwich sold out just weeks after its debut in 2019. Shares of Yum Brands were up less than 1% in morning trading after new menu items like KFC’s chicken sandwich fueled first-quarter sales growth, helping the company top Wall Street’s earnings and revenue estimates. The Shares of McDonald’s were down slightly. – Source: CNBC.

Tighter capacity caps will be imposed on two more jurisdictions. The measures are intended to run for a week . . . .

Oregon to Reshut Restaurant Dining Rooms in 15 counties

Restaurants in 15 of Oregon’s 36 counties will be required to suspend indoor dining for a week starting Friday because a new wave of COVID-19 cases is threatening to overwhelm the state’s hospital system, Gov. Kate Brown announced Tuesday. The governor also redesigned two additional counties as  “high risk,” requiring them to join the seven jurisdictions currently in that classification. Restaurants in high-risk counties are limited to using 25% of their indoor seating capacities, up to a maximum of 50 people. Outdoor dining will still be permitted within the two groups of counties but in different capacities. The nine high-risk jurisdictions can handle up to 75 outdoor customers, while the 15 areas in the extreme risk areas are limited to 50 customers. Brown said she is working with state lawmakers to provide $20 million in aid to restaurants and other small businesses in the high-risk counties. The funds are intended to help the enterprises pay their rents. “If we don’t act now, doctors, nurses, hospitals, and other health care providers in Oregon will be stretched to their limits treating severe cases of COVID-19,” said Governor Brown. “Today’s announcement will save lives and help stop COVID-19 hospitalizations from spiking even higher.” Her decision came as a number of other states and cities are easing their restrictions on the operation of restaurants. New York Gov. Andrew Cuomo announced Wednesday that he is looking to end the requirement that restaurants only sell alcoholic beverages to customers who order food, a move already approved by the state Senate. New York has also dropped its midnight curfew on restaurant service. – Source: Restaurant Business.

Everyone’s favorite day to drink a refreshing Margarita—Cinco de Mayo—is quickly approaching, and to celebrate the occasion BJ’s Restaurant & Brewhouse is introducing a brand-new Margarita Flight across all locations starting April 29, 2021 . . . .

BJ’s Restaurant & Brewhouse Introduces Margarita Flight in Time for Cinco de Mayo

Featuring four of BJ’s signature margaritas in tasting glasses—including the Handcrafted Margarita, Lemon Berry Margarita, Twisted Pineapple Margarita, and Fresh Strawberry Rita—the new cocktail tasting flight is the perfect way to sample some of BJ’s popular margaritas and will be available through summer. Guests can enjoy their cocktail flight alongside BJ’s Loaded Nachos with crispy corn tortilla chips, house-made sriracha queso, melty cheese, house-made guacamole, sour cream, fire-roasted salsa, jalapenos, and pico de gallo; and Mahi Mahi or Shimp Tacos with chipotle mayo, Santa Fe dressing, a crispy cabbage slaw, cilantro, avocado ranch, and fire-roasted salsa for a festive, Cinco de Mayo meal. – Source: fsr.

Spring has sprung, and restaurants are celebrating with salads made with seasonal ingredients . . . .

Slideshow: New menu items from Chick-fil-A, La Madeleine, Newk’s Eatery

Chick-fil-A, Inc. is introducing the Lemon Kale Caesar Salad, featuring warm grilled chicken nuggets on a bed of romaine and kale with shaved Parmesan cheese and lemon wedges served with a lemon Caesar vinaigrette dressing and lemon Parmesan panko topping. The salad is the first limited-time salad entree to be featured on the national menu since 2016 and the first salad entree that features warm grilled nuggets, Chick-fil-A said. “The Lemon Kale Caesar Salad is one of the new items we’re adding to the menu in 2021 to offer our guests more variety,” said Kaitlin Miller, menu category leader at Chick-fil-A, Inc. “It’s a delicious lower calorie salad option for those who enjoy a traditional Caesar salad and those looking to try something new. After testing this item in 2017 and receiving great feedback, we’re excited to add it to our 2021 lineup of seasonal offerings.” New at Newk’s Eatery is the Strawberry & Avocado Spinach Salad, made with strawberries, feta cheese, spinach, avocado, and bacon tossed with balsamic vinaigrette. “Our new, seasonal item offers guests fresh, fruity flavors to enjoy this spring,” said Katie Twiford, director of marketing at Newk’s. “Pairing fruits with other signature ingredients offers our guests a sweet and savory flavor experience, whether they’re dining with us or having a to-go meal at home with family and friends.” La Madeleine’s new Strawberry, Almond, and Goat Cheese Salad features balsamic glazed strawberries, toasted almonds, and goat cheese served on a bed of spring mix with French vinaigrette. “Our culinary team is constantly innovating to offer our guests an enhanced experience with more variety,” said Sheryl Fox, chief operating officer for La Madeleine. “Spring has its own flavor profiles, including berries and citrus, so we created offerings showcasing fresh strawberries and other seasonal favorites.” Blaze Pizza is serving a new Fresh Berry Salad, featuring strawberries, blueberries, and crumbled feta cheese tossed over a bed of lettuce and mixed baby greens served with a blackberry balsamic vinaigrette. – Source: Food Business News.

 

Domino’s announces Q1 U.S. same-store sales growth of 13.4% with 1% unit growth . . . .

Domino’s is Experiencing ‘One of the Most Difficult Staffing Environments in a Long Time’

Domino’s Pizza is “experiencing one of the most difficult staffing environments in a long time,” CEO Ritch Allison said during Thursday’s earnings call for the first quarter ended March 28, citing the “very tight labor market” that other operators throughout the industry have been experiencing at this point in the pandemic. “A combination of COVID-19, strong sales amid the broader economy reopening, and the high government stimulus checks is creating one of the most difficult staffing environments delivered in a long time,” Allison said during Thursday’s earnings call. “It puts pressure on our workers.” One of the most significant areas of labor pressure Domino’s sees is its drivers. Domino’s is famously known for being one of the last quick-service holdouts that have not partnered with any third-party delivery companies. “The real pinch-point is the drivers,” Allison said. “We’re working on continuing to make that a great job with the best economics relative to other alternatives . We continue our work around fortressing to give them more deliveries per hour, which translates into higher wages; we’re working on technology and operating practices to have them never have to get out of their cars.” One of the strategies Domino’s is using to ease labor pressures is continued investment in technology, like their recent test in the Houston market with the Nuro driverless delivery technology Amid these challenges, Domino’s reported continued sales growth with U.S. same-store sales up 13.4% with overall 1% unit growth as the company ramps up its fortressing strategy. But Domino’s sees some pressure on carryout, with Allison admitting in Thursday’s earnings call that they “have not been as aggressive” in the marketing of their carryout as they could have been. “We have not deployed some of the tools this year that we’ve used in the past,” Allison said. “As customer patterns continue to change and the economy opens up, we feel confident we have a set of tools to continue to grow our business.” Domino’s reported a 12.9% increase in company-wide revenues last quarter to $983.7 million, driven by U.S. and international same-store sales growth and increases in global store counts. The company’s net income decreased 3.2% to $117.8 million or $3.00 earnings per share, down from $121.6 million or $3.07 earnings per share in the same quarter the previous year, driven by higher income taxes. Domino’s Pizza added 175 net new units in the first quarter, bringing their portfolio to a total of 17,819 company-owned and franchised stores. – Source: NRN.

 

Restaurant operators can begin registering on April 30 at 9 a.m. EDT . . . .

The Small Business Administration announced that Restaurant Revitalization Fund Applications will Open on May 3

The Small Business Administration announced Tuesday that the Restaurant Revitalization Fund will open on Mon., May 3 at noon EST, and restaurant operators can begin the registration process starting Fri., April 30 at 9 a.m. EDT. Operators will be able to register through the SBA RRF portal and the applications will remain open until funding runs out. “Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation,” SBA administrator Isabella Casillas Guzman said in a statement. “They are among the businesses that have been hardest hit and need support to survive this pandemic. We want restaurants to know that help is here. The SBA has focused on the marketplace realities of our food and beverage businesses in designing the Restaurant Revitalization Fund to meet businesses where they are. And we are committed to equity to ensure our smaller and underserved businesses, which have suffered the most, can access this critical relief, recover, and grow more resilient.”

The SBA suggests that in preparation for the opening of the applications, operators should prepare the following:

Register for an account on restaurants.sba.gov starting April 30.

Review the program guide and sample application

Prepare the required documents, including tax identification numbers and banking information, ownership information, how much you received for first and second-draw PPP loans, and gross receipts. You can read more about acceptable forms of gross receipts here

Work with your POS vendor or submit the application directly through the portal when it opens on Monday.

Attend one of three live application guidance webinars led by the SBA on April 27 at 2:30 pm EST, April 28 at 1 pm EST, or April 28 at 2:30 pm EST

As a reminder, for the first 21 days that the application is open the SBA will prioritize businesses owned and controlled by women, veterans, and socially/economically disadvantaged peoples. However, all applicants should register and apply as soon as the portal opens. The SBA has confirmed that funds will be given out on a first-come, first-serve basis and that likely demand will supersede available funds. For more information on how to apply, who is eligible, and how much funding restaurants are eligible to receive, read the National Restaurant Association’s FAQ on the Restaurant Revitalization Fund process released earlier this month. – Source: NRN.

 

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