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Peach gazpacho

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Chef Jason Berthold celebrates peach season with this chilled soup, a variation on the tomato-based Spanish classic.

He heats garlic with blanched, skinned almonds in olive oil until they begin to turn light brown. Then he adds chopped, crustless bread, heats it for another minute and then pours that mixture into a bowl containing very ripe chopped peaches, peeled and chopped cucumbers, red onions, bell pepper, coriander seed, a pinch of ground espelette or ancho pepper, salt, banyuls vinegar, basil and mint leaves.

He lets the mixture marinate for an hour and then purées it in a blender until very smooth. He places diced peaches, cucumbers, croutons and fresh herbs, such as cilantro, mint, basil, or a combination of those, in a bowl and pours the soup over it.

He finishes the dish with a poached scallop and serves it for $14.

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Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary


Nancy Kruse, Bret Thorn on the latest restaurant fruit trends

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In a new monthly series, menu trend analyst Nancy Kruse and NRN senior food editor Bret Thorn debate current trends in the restaurant industry. This installment takes a look at how restaurants are featuring fruit.

New techniques make for better tasting fruit offerings

NRN senior food editor Bret Thorn presents his take on fruit trends at restaurants, from local-seasonal offerings to cold-pressed juices.

As you know, Nancy, because I’m a food writer people expect me to be a fussy eater, but I’m really not. Except, that is, when it comes to fruit.

You might think my fruit snobbery would have come from having lived in the tropics or from going to culinary school in Europe, but it really came from my cheap mother.

Growing up in Colorado, we were strictly forbidden from buying watermelon if it cost more then 8 cents a pound. That didn’t just mean that all the watermelon we ate was inexpensive. Because fruit is generally at its best when it’s also at its most abundant — at the height of its season — it also meant that all the watermelon we ate was delicious.

I thought all watermelon had to be eaten with noisy and enthusiastic slurping and should generally be followed by a bath. As you can imagine, the first time I had watermelon from a hotel buffet, I was dumbstruck. I didn’t know fruit could taste like balsa wood.

So I’m particularly pleased with a trend I see not just in serving fruit, but also in serving good fruit.

EARLIER: Nancy Kruse, Bret Thorn on better burgers

Of course fruit has a health halo and many people feel better about both themselves and their food when it’s around, but now efforts are being made to make fruit taste good. That’s the part of the local-seasonal movement that I like best, but other efforts are being made as well.

A number of restaurants, as well as retailers specializing in the growing market for juice fasts, have taken to cold-pressed juices. The term is borrowed from olive oil, the best of which comes from olives that are gently crushed with minimal friction to prevent the oil from being heated and its flavor from being distorted. The same principle holds for other fruit — olive’s a fruit, too, after all.

These days, fruit is mostly juiced quickly and easily in a blender or special juicer. That heats the juice a bit and, so say cold-pressing advocates, damages both the fruit's flavor and its nutrients.

Places like Snap Kitchen, a mostly grab-and-go restaurant with locations in the Texas cities of Austin and Houston, instead use special juicers that compress the fruit rather than heating it — sort of like the iron-handled orange juicer my grandmother had. The restaurant charges $8 for a 16-ounce bottle of juice.

"It takes extra time and it’s very labor intensive,” said Andrea Hinsdale, Snap Kitchen’s dietician. “That’s why we have to charge a little bit more.”

Sweetgreen, a fast-casual salad-and-frozen-yogurt chain, also launched into summer with a new line of organic cold-pressed juices. Like many of these types of juices, Sweetgreen’s line, Sweetpress, is made from fruits, vegetables and herbs mixed together in a combination that’s supposed to be good for you, like the Detox, made with pineapple, apple, ginger and mint, or the Hydrate, which mixes cucumber, pineapple, pear, coconut water and lime. They cost $6 for a 12-ounce bottle, except for the Purify — kale, spinach, cucumber, apple, lemon and ginger — which is $7.

Recently, cold pressing found a new iteration when TCBY in June teamed with its supplier to launch new yogurt flavors. For its new Juicy Peach, Strawberry and Pineapple Splash flavors, TCBY is using “micro-shaved” fruit.

Instead of purée, the frozen yogurt giant is using pieces of fruit that are tiny enough not to gum up the soft-serve machines. And unlike puree, which can take on jam-like qualities, the tiny fruit should taste more like fruit. It also should be better for you.

Wayne Geilman from TCBY’s research and development team said that, although they have yet to test the nutritional profile of the fruit, “in theory, it should be a much better product.”

Personally, I just want it to taste good. That’s what gets me interested.

How about you Nancy? What interesting things do you see happening with fruit?

Next: Nancy Kruse's response
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Fruit is best served with an element of surprise

The following is Kruse Company president Nancy Kruse's response to NRN senior food editor Bret Thorn's opinion on fruit trends at restaurants.

Gosh, Bret, you’ve sort of lost me with this one.

First off, it’s clear that we both applaud your mother. What you describe as parsimonious is completely in line with great culinary icons like Julia Child or M.F.K. Fisher, who scoffed at paying more for unblemished or out-of-season fruit. I think that your mom deserves major props for developing your discriminating palate.

But while I bow to your palate, I have to question your pocketbook. This whole cold-pressing trend, which undoubtedly yields a tasty product, seems a little yuppified to me, along with designer diets and high colonics. Six to eight dollars for a bottle of juice will surely limit growth, with the cost of both product and process restricting its potential in the mass market. Of course, I might have said the same thing about Starbucks a decade ago.

What I really love in the fruit category at the moment is the element of surprise, like the treatment of the peaches in the Caramelized Peach Salad at California Pizza Kitchen or the totally unexpected juxtaposition of strawberries with cucumbers in a summer salad at Fresh Choice.

Some sandwich restaurants are writing new rules for fruit, such as Be’wiched Deli in Minneapolis that offers sandwich toppers like apple mostarda, Medjool dates and preserved lemon — though not all in the same sandwich. Or No. 7 Sub in New York City, which apparently has yet to meet produce it can’t pickle, as witness the pickled lychees and blueberries used as condiments.

You and I are in complete agreement on the attractiveness of fruit in beverages, and I especially like the very contemporary mash-up of sweet with savory or spicy, like the Spicy Mango Mojito at Bahama Breeze or the Strawberry-Basil Lemonade made with gin at Houlihan’s, or even the Watermelon-Habanero Lemonade featured at Cosí a while back. They’re fun and frisky, I think, with or without the cold pressing.

Pitbull videos expand Miami Subs' social media reach

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When Armando Christian Perez, the musical artist better known by his stage name Pitbull, bought an equity position in the Miami Subs chain in July, the deal was choreographed like a concert in social media.

In June, the 38-unit, Miami-based chain and Pitbull both started using their Facebook pages and Twitter accounts to tease a series of “webisodes” to build interest around the deal, as well as the new Miami Subs Grill. One of the four webisodes chronicles the rapper, singer and producer's early creative career and his writing of lyrics at a Miami Subs restaurant.

The videos tapped into Pitbull’s powerful social media presence, which includes more than 6.3 million Twitter followers and a Klout social-measurement score of 81. The artist also has more than 22 million Facebook followers and has videos on YouTube and Vevo that have been viewed more than 3 billion times.

The company estimates that prior to the webisodes, the Miami Subs Grill Facebook page had a total reach on its highest day of 10,072. After the webisodes were added and linked, that reach rose to a high of 155,811 a day.

The equity announcement posted on Pitbull’s Facebook page, the company said, had a total reach of about 3.4 million with 200,284 engaged users.

Miami Subs chief executive, Richard Chwatt, appeared in the fourth and final webisode with Pitbull. Chwatt has brought in as managing partners Dieuveny Louis and Jullian Boothe, both involved in the entertainment industry. “The Pitbull alliance was one of many celebrity affiliations planned for the new Miami Subs Grill,” Boothe said.

Miami Subs has units in Florida, North Carolina and South Carolina, and has sold units for Guyana.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Popeyes names Greg Vojnovic chief development officer

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Greg Vojnovic has been promoted from vice president of development to vice president and chief development officer of Popeyes Louisiana Kitchen.

“Since joining Popeyes in 2007, Greg’s passion and commitment to achieving results has taken Popeyes new restaurant development and new restaurant sales performance to new heights,” Popeyes president Ralph Bower said in an e-mail announcing Vojnovic’s appointment.

“Under Greg’s leadership, Popeyes is outpacing the competition in unit growth. In 2011, we ranked third behind much larger brands like McDonald’s and Burger King; and we ranked first in unit growth amongst Chicken QSR brands,” he added.

In the first quarter of 2012, which ended April 30, Popeyes reported same-store sales growth of 7.4 percent — 3.8 percentage points higher than the quick-service chicken industry as a whole.

Bower said that, under Vojnovic’s tenure, average construction time for new locations has been reduced from 130 days to fewer than 90 days, and that sales volume at new locations has grown by more than 50 percent over the past four years.

During that time, Popeyes developed new site selection metrics that resulted in improved average unit volume of $1.5 million annually, Bower previously told Nation’s Restaurant News.

Popeyes’ parent company, Atlanta-based AFC Enterprises Inc., is scheduled to reports its second-quarter earnings after the market closes on August 15.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary

Salsarita's hires Chris Bailey as VP of franchise development

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Salsarita’s, an 80-unit Mexican cantina chain based in Charlotte, N.C., has named former Bojangle’s executive Chris Bailey as its vice president of franchise development in the chain's latest reorganization move since it was acquired by Mississippi Restaurant Group in June 2011.

As director of franchise development for Bojangle’s Restaurants, Inc., Bailey, over the course of eight years, helped grow that company from 34 franchisees operating 157 restaurants to 85 franchisees and 316 restaurants, according to Salsarita’s.

“In addition to our rebranding initiatives at Salsarita’s, we also invested countless hours and resources building an exceptional franchise support team,” said Phil Friedman, chief executive of Mississippi Restaurant Group, in a press release. “Now that we possess the talent needed to provide excellent support, Chris is going to lead our effort to find multi-unit operations groups that share our vision for success. We are fortunate to have him on the team.”

Salsarita’s said it expects to have at least two new franchise agreements before the end of 2012, with a goal of having more than 300 locations nationwide over the next several years, primarily through increasing penetration in existing markets and opening at nontraditional locations such as universities, airports and business campuses.

The chain expects growth both from existing franchisees and new developers, and said that new franchisees should commit to opening at least three to five restaurants in their territory.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary
 

Why CKE postponed its IPO

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Concerns on Wall Street over restaurant industry health, recently fueled by a sales miss from McDonald’s, may be to blame for CKE Restaurants' decision to postpone its initial public offering, according to various sources.

The planned IPO that was set to begin trading on Friday was called off late Thursday “due to market conditions,” CKE said.

The Carpinteria, Calif.-based company operates or franchises 3,263 restaurants under the Carl’s Jr. and Hardee’s brand names. The company had hoped to raise more than $200 million with an offering of 13.3 million shares of common stock priced between $14 and $16 per share.

A report on Thursday by the International Franchising Review, an online publication of Thomson Reuters Capital Markets Publishing, said CKE owner Apollo Management turned down an offer presented by the underwriting banks because it was too low.

According to the report, which did not name sources, the offer by joint underwriters Morgan Stanley, Citigroup and Goldman Sachs was believed to be $10 per share. Earlier, the banks had communicated investor interest in the $10 to $11 range.

Two days before CKE’s IPO was scheduled, Outback Steakhouse parent Bloomin’ Brands Inc. went to market with stock priced at $11 — well below the previous target of $13 to $15 per share. The size of the offering was also reduced to 16 million from the 21 million initially stated, and, though the stock price climbed through the week, some saw the situation as an indicator that investor interest in the restaurant space was cooling.

“For it to be priced below [the target range] and for it to be undersubscribed, that tells you a lot about that market,” said Conrad Lyon, securities analyst with B. Riley & Co. in Los Angeles. “The appetite probably just wasn’t there.”

Observers disagree, however, about the “market conditions” that might be scaring investors off.

On the same day as Bloomin’ Brands’ IPO, McDonald’s reported that its global same-store sales in July were not positive for the first time in years. The quick-service leader reported that same-store sales fell 0.1 percent among U.S. locations, 0.6 percent in Europe and 1.5 percent in Asia Pacific, Middle East and Africa.

Analysts blamed weakness in the global economy but also stiffer competition from competitors like Wendy’s, Burger King and Taco Bell, all of which have shown improving results.

Concerns about beef prices next year may also have been a factor in the postponement of CKE, according to International Franchising Review.

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In earnings reports in recent weeks, several public companies said ground beef prices were expected to be favorable for the rest of this year as cattle are sent to slaughter because they are becoming too expensive to feed with the drought in the Midwest putting increasing pressure on corn prices. The long-term result, however, will be even higher beef prices next year, as it takes time to rebuild herd counts.

Others said investors may simply have had enough of restaurant IPOs after a busy year so far. “The client base only has so many bullets to shoot at restaurant investments, and those bullets have been fired already,” said Lyon.

CKE’s planned IPO would have been the fifth this year, following those from Bloomin’ Brands, Chuy’s Holdings Inc., Del Frisco’s Restaurant Group and Ignite Restaurant Group.

Dunkin’ Brands Group Inc. also on Friday announced a secondary offering of 21.7 million shares by stockholders. Last year, Dunkin netted about $423 million with an IPO, selling 22.25 million shares for $19 per share, which was higher than the range initially set at $16 to $18 per share.

John Gordon, principal of Pacific Management Consulting Group, said CKE’s large debt load may also have scared off potential investors. CKE was acquired in 2010 by Apollo Management in a $700 million deal. The company was planning to use income from the IPO in part to reduce net debt of $654 million to a projected $590 million.

Since going private, Carl’s Jr. and Hardee’s have not been able to show strong signs of turnaround, as competitors Wendy’s, Burger King and Taco Bell have shown. CKE’s blended same-store sales rose 2.6 percent in the first quarter, which was “okay, nothing exciting,” Gordon said.

CKE has a growth story to tell, Gordon noted, with plans to grow overseas and into the as-yet underpenetrated Northeast. However, those factors were not enough to overcome the changing outlook for restaurant stocks, which looks very different today than it did in May, when CKE first announced its IPO plans.

“There’s no doubt things are looking worse now than they were in the spring,” he said.

However, he added, investor outlooks are cyclical. “Investor sentiments tend to bounce back and forth between quick service and casual dining,” said Gordon. “And when the economy softens, investors start favoring QSR again.”

The question remains when, if at all, the IPO may still happen, if market conditions improve. Company officials said they could not comment on potential timing.

The planned IPO was based on first-quarter numbers, and the company will likely have to re-file based on second-quarter results, which won’t be released until mid to late September.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 

Veggie Grill CEO Greg Dollarhyde talks trends in healthy eating

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Anita Jones-Mueller, M.P.H., president and founder of Healthy Dining, a nutrition-related marketing and consulting firm, interviews Greg Dollarhyde, CEO of Veggie Grill, on the proliferation of vegetarian cuisine in the restaurant industry. This interview and others can be seen at Healthy Dining’s Restaurant Nutrition News & Insights.

I worked with you several years ago when you were CEO of Baja Fresh. You were a pioneer back then in printing calories on the menu boards and offering healthier options. How did your journey from Baja Fresh to Pizza Hut to Zoes Kitchen get you to one of the hottest, plant-based restaurants, Veggie Grill?

The industry has morphed a lot in the last seven to 10 years based on how consumers are changing. People are looking to eat lighter and cleaner — especially on the West Coast.

More people not only care about how many calories they eat, but also about what kind of calories they eat. It has dawned on customers that one hundred calories of kale salad is different from one hundred calories of bacon, and it can still be tasty.

There is a growing focus on nutrients and vitality…which is leading to new food concepts that can provide these and are delicious too.

So are you a vegetarian?

I started eating a plant-based diet when I took over as CEO of Veggie Grill in April of 2011. I eat at Veggie Grill six to eight times per week, and I can say our food is 100-percent craveable, maybe more craveable than any other brand I’ve led. I’ve enjoyed some important body chemistry changes, and I have a nice level of consistent energy. When I had my last physical, my doctor said, “Wow, keep doing what you’re doing!”

Do most of your guests follow a vegetarian diet or are they primarily vegan?

Actually, only about 10 to 15 percent of our guests are vegetarian or vegan. Others are carnivores or flexitarians. Plant-based cuisine is really starting to come to the forefront. It’s not just for vegetarians anymore. Our guests like our food and our concept because they like to eat healthy, and they are moving away from animal products as a staple in their diet.

It is becoming very popular to eat vegetarian more often — even if you aren’t vegetarian.

[See the definitions of flexitarian, plant-based diet, vegan and vegetarian in "Terms to know" on the next page.]

What other trends are you seeing that are fueling the acceptance of vegetarian cuisine?

There’s been a steady growth in high-end vegetarian restaurants that didn’t exist a decade ago. Veggie Grill is really popularizing the plant-based diet and making it easy for people to eat healthy.

Vegetarian food used to have a reputation of being bland and mushy. But not at Veggie Grill. Our food is really craveable, full of flavor and full of nutrients. We continue to perfect our offerings, infusing flavor with seasonings and marinades.

What has made all of this easier is that there has been a proliferation of vegetarian products that weren’t available before. Look at the growth in products by Hain, Eves, Silk, Gardien and other plant-based manufacturers. You can now get milk made from almonds, soy, rice, hemp and coconut. All are easy to get and can work well in recipes.

What are your plans for growth?

We have 10 locations now, eight in Southern California and two in Portland. By the year's end, we will have additional locations in Seattle and the Bay Area. We are building a really strong team and are looking for the best sites we can find — and continuing to perfect the food we serve, making sure it is full of flavor.

Next pageTerms to know

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Terms to know

Vegetarian: Many people who follow a vegetarian diet “personalize” the diet to meet their needs and likes. Most do not eat beef, pork, poultry, fish or shellfish. Some eat eggs, cheese and dairy, and some don’t.

Vegan: Vegans follow a stricter regime than vegetarians. They do not eat any eggs or dairy. They may also avoid foods and products that are processed with animal products (refined sugar, honey, some wines, some shampoos, cleaners, etc.) and/or tested on animals. Vegans consume grains, legumes, fruits, vegetables and soy protein products.

Plant-based diet: People who follow this diet generally eat a vegetarian diet most of the time but might include occasional meat or animal products.

Flexitarian: This is a new term for people who eat a diet lighter in animal products but don’t restrict themselves to a strict regimen.

Contact Anita Jones-Mueller, M.P.H., at anita@healthydiningfinder.com.

The latest chefs on the move

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William Downes is the new executive chef of the Baltimore Marriott Inner Harbor at Camden Yards in Baltimore. Most recently the senior banquet chef of the Renaissance Mayflower Hotel in Washington, D.C., Downes’ early culinary inspiration came from the time he spent on his grandparents’ four-acre farm in Englishtown, N.J., picking figs and making jam that was sold at the family farm stand.

Jeff Graham is now executive chef of Wuksachi Lodge at Sequoia National Park in California. Graham, who grew up in Anchorage, Alaska, is not new to national park cooking, having most recently been executive chef at Curry Village at The Lodge at Yosemite Falls in Yosemite National Park. On his new menu are dishes such as cocoa rubbed pork tenderloin with mole rojo, seared Alaska salmon with blueberry beurre rouge, and lavender honey-glazed venison.

Sean O’Connell
has been named executive chef at The Homestead in Hot Springs, Va., which is currently undergoing a $25 million transformation. His previous positions have included vice president of culinary operations at Fontainebleau resorts, based in Miami Beach, Fla., and executive chef at the Mandarin Oriental in Hong Kong. O'Connell was most recently the executive chef at the Rancho Las Palmas Resort & Spa in Rancho Mirage, Calif.

Charles Mereday is the new executive chef of South Seas Island Resort in Captiva, Fla. Previously the area executive chef for Renaissance Hotels in Mobile, Ala., Mereday also has owned and operated his own restaurants and was a chef instructor at the Culinary Institute of Virginia College in Birmingham, Ala.

Stephanie Mazzone is the new head pastry chef at mk restaurant in Chicago. Most recently the pastry chef at Coco Pazzo in Chicago, Mazzone is offering musically named desserts such as Strawberry Fields Forever (warm doughnuts, strawberry-basil sorbet, brown sugar sour cream, wild strawberries and balsamic syrup), and Raspberry Beret (raspberry brioche brown betty, frozen yogurt, raspberry pudding, fresh raspberries and a mint coulis).

Frédéric Médigue has been named consultant and executive chef of the new Marti Istanbul, the Marti group’s first urban hotel, in Istanbul, Turkey. For the past four years, Médigue has been commuting between the Castle Orfeuillette in Lozère, France, and the Residence Hotel in Sofia, Bulgaria, serving as executive chef and consultant at both properties. A native of Besançon, France, Médigue is overseeing items ranging from beef kebabs with yogurt to nigiri sushi to chocolate cake.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary


Biglari Holdings: Steak 'n Shake franchise expenses lower 3Q profit

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Biglari Holdings Inc.’s efforts to franchise its subsidiary Steak ‘n Shake concept led to higher expenses in the third quarter and lowered earnings, the company said Friday.

San Antonio, Texas-based Biglari, which also owns the Western Sizzlin chain, reported that profit for the third quarter, ended July 4, slipped to $4.9 million, or $3.63 per share, from $8.7 million, or $6.49 per share, in the same period last year. Revenues increased to $175.8 million from $170.9 million in the prior-year quarter.

“Expenses were higher for several reasons, one of the most significant arising from our efforts to franchise the Steak ‘n Shake concept,” the company said in a statement. “Steak ‘n Shake's revenue from franchise fees was up 20 percent in the third quarter in part because we devoted resources to the franchising business.”

The company said the 496-unit Steak ’n Shake concept saw same-store sales increase by 2.9 percent in the quarter, with customer traffic growing by 2.2 percent.

Despite the increase in same-store sales, the company said expenses were higher because it had “devoted resources to the franchising business.” Earnings before interest and taxes at Steak ‘n Shake fell to $9 million from $10.1 million in the quarter, the company said.

Earlier in the year, Steak ’n Shake introduced a smaller-footprint Signature store in New York’s Times Square and said it was freezing prices in 2012 to enhance its value messaging. The company said franchise fee income increased 19.9 percent in the quarter with the addition of five new franchised units over the comparable quarter last year.

Biglari Holdings noted that the earnings comparison of third quarter 2012 to the same period of 2011 was “distorted because in the prior year there was a non-cash accounting gain, not an economic one, of $1.3 million, tied to the disposition of Mustang Capital.”

Biglari Holdings and affiliated companies have increased investment in Lebanon, Tenn.-based Cracker Barrel Old Country Store and now hold more than 17 percent of its shares.

In a press release, the company advised investor caution on reading earnings results for a given quarter. “The company has $52.7 million of pre-tax unrealized investment gains,” the statement said, “which if harvested in any given quarter can materially impact and thereby distort net income figures, as well as comparisons between time periods.”

In regulatory filings, Biglari reported third-quarter cost of sales at 28.9 percent of net sales, compared with 28.8 percent of net sales in the prior-year quarter, adding that commodities inflation was offset by cost savings. Restaurant operating costs were 47.2 percent of net sales in the third quarter, up from 46.9 percent in the same period last year.

Of Biglari Holdings’ 496 Steak ’n Shake restaurants, 82 were franchised at the end of the third quarter, and 87 of its 92 Western Sizzlin units were franchised during the quarter. During the third quarter, Steak ’n Shake opened four franchised units and closed one. In addition, one Western Sizzlin franchised unit was closed and no new units were opened.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Worsening crop conditions to take long-term toll on restaurants

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In this weekly Commodities Watch column, John T. Barone, president and commodities analyst for Market Vision Inc., offers a snapshot of the state of commodities for restaurants.

On Friday, the USDA confirmed what everyone suspected: This year’s corn crop is now an “official” disaster.

The USDA dropped corn yields to just 123.4 bushels per acre (bpa), down from a pre-drought forecast of 166 bpa just two months ago. 2012-2013 U.S. corn production was cut by 2.2 billion bushels to 10.8 billion, the lowest since 2006-2007. The 2012-2013 corn price forecast was bumped by 39 percent, from $5.90 to $8.20 per bushel.

In wheat, both 2012-2013 U.S. supplies and projected ending stocks were raised, but tighter world wheat supplies and sharply higher corn prices caused the USDA to raise its 2012-2013 wheat price forecast by 22 percent from $6.80 to $8.30 per bushel.

In addition, the USDA lowered both yield and output for the 2012-2013 soybean crop. As a result, the 2012-2013 soymeal price forecast increased from $380 to $475 per short ton, and the soy-oil forecast rose from $.5450 to $.5500 per pound.

So what does this news mean for restaurants? Higher wheat prices for bread, pizza crust, pasta, flour tortillas, bakery products, etc., are obvious. But wheat is a small fraction of the overall cost of these items, so a 22-percent jump in wheat prices may only amount to a 3- to 5-percent increase in finished baked goods. The “sneaky” price increase will come from the big bump in corn and soymeal prices. That’s because they are the primary feed inputs for poultry, dairy cows, pork — and this year, cattle, because grazing pastures have also been toasted by the drought.

Livestock and poultry producers will quickly shift from profits to losses, and they'll react by cutting production. These production cuts, which are already beginning to take place, will not significantly impact restaurant costs until 2013. Part of the lag is that flock/herd reductions will take place over time, and the balance of the lag is related to contracts that most chain restaurants already have in place with their suppliers.

With beef, we will see what’s known as a “boomerang” effect. Currently, cattle ranchers are liquidating, selling off inventory and breeding stock at an accelerated pace. This is currently having the effect of inflating available beef supplies and, as a result, beef prices have been moving lower over the past month. But come spring of 2013, when seasonal beef demand kicks in, there will be hell to pay. The USDA says beef prices will be 4- to 5-percent higher next year.

Cattle futures prices for 2013 are averaging in the $135 range, versus $121, so far this year. We may see something along the lines of double the USDA estimate for beef-price increases in 2013.

Contact John T. Barone at jbarone@mktvsn.com.

Oregon chef wins seafood cook-off

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Chefs from 16 states competed in the Great American Seafood Cook-Off this past weekend, and chef Gregory Gourdet of Departures Restaurant in Portland, Ore., captured first place.

A team from Louisiana took second place, and Texas won third place Saturday in the ninth annual seafood challenge, sponsored by the National Oceanic Atmospheric Administration and presented by the Louisiana Seafood Promotion & Marketing Board, in New Orleans.

Ewell Smith, executive producer of the cook-off and executive director of the Louisiana Seafood Promotion & Marketing Board, said this year’s competition drew the largest number of entries and participants in nine years.

“Chef Gourdet secured an extraordinary win,” Smith said, “and we’re proud to have him join previous winners in serving as an ambassador for domestic and sustainable seafood.”

For the competition, teams of chefs competed against each other by cooking dishes featuring seafood native to their states. The Oregon chef’s winning entry was a dish of slow-cooked Oregon Chinook salmon with butter clams, bacon dashi, pickled porcini, roasted heirloom tomatoes and crisped sea greens.

Chefs Keith Frentz and Nealy Crawford-Frentz of Lola restaurant in Covington, La., took second prize with a dish of Louisiana black drum, Gulf shrimp, braised collards, pickled black-eyed peas and Steen’s cane vinaigrette.

Jack Gilmore, chef of Jack Allen’s Kitchen in Austin, garnered third place for Texas with his dish. He served shrimp three ways, including a head-to-tail Gulf shrimp fritter with basil mayonnaise, a grilled shrimp with Texas green-tomato jam, and shrimp meatballs with tomato jam and zucchini noodles.

The NOAA’s Fisheries Service sponsors the annual event to highlight the marine environment and the nation’s domestic seafood supply.

Sig Hansen, one of the featured captains on the Discovery Channel’s “Deadliest Catch,” co-hosted the 2012 Great American Seafood Cook-Off along with chef Cory Bahr of Restaurant Cotton in Monroe, La., who is a recent winner of Food Network’s “Chopped.”

This year’s Great American Seafood Cook-Off included chefs representing Alaska, Alabama, Florida, Hawaii, Kansas, Kentucky, Louisiana, Maine, Mississippi, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee and Texas.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Restaurant trends, challenges addressed at Western Foodservice & Hospitality Expo

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Concerns about the choppy economic outlook, the impact of the federal health care mandate, and rising commodity costs were the top issues on the minds of West Coast restaurant operators who gathered in Anaheim, Calif. on Sunday for the annual Western Foodservice & Hospitality Expo.

The annual three-day conference, sponsored by the California Restaurant Association, or CRA, was co-located for the fourth consecutive year with the Expo Comida Latina, a food-and-beverage trade show featuring Latin flavors. The event is scheduled to run through Tuesday evening.

Typically, the conference alternates between Los Angeles and San Diego every year, but the show landed this year for the first time at the Anaheim Convention Center, which is about halfway between the two metropolitan areas in restaurant-chain-rich Orange County, Calif., representing a big chunk of the CRA’s membership, said Jot Condie, the association’s president and chief executive.

While the economy in California has improved significantly over the past year, Condie said challenges remain as cities such as San Jose consider a minimum wage increase and operators struggle with increasing regulation.

Voters in San Jose this November will consider a ballot measure that would raise the minimum wage there from $8 to $10 with automatic annual increases. “If it passes, it will have a contagion effect in other cities,” said Condie, and state lawmakers make see it as “setting a different floor.”

Condie said the CRA is also working with state lawmakers on the implementation of the Patient Protection and Affordable Care Act, under which employer mandates for health care coverage go into effect in 2014. “But the November election nationally could have an impact on how it’s implemented,” he said.

Consumer sentiment, food trends revealed

In educational sessions during the conference, Melissa Wilson, principal of market research firm Technomic Inc., said 2012 was off to a good start, with many limited-service and full-service restaurant chains posting positive same-store sales compared with last year.

However, consumer confidence remains low, and job growth has been sluggish. Looming next year is another round of spiking commodity inflation that is expected to result from this summer’s severe drought in the Midwest.

In a survey of consumers in early June, Technomic found that less than one-third of respondents felt the economy has improved, while 44 percent said things have gotten worse, and 29 percent said they have stayed the same, Wilson said.

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Still, consumers have a pent up desire to eat out, particularly at fast-casual restaurants, which continue to show the highest rate of growth. Wilson said 77 fast-casual chains reported more than 20 percent sales growth last year, showing far more growth than other segments.

In an overview of food trends on restaurant menus, Wilson said beverages are a key area of innovation, including everything from health-friendly coconut water and fresh juices to energy drinks and specialty teas. On the show floor, which included about 500 exhibitors, emerging trends included all-natural or organic beverages.

Better-for-you items, such as Greek yogurt, also remain hot. Other increasingly popular ingredients include woodland-foraged foods, such as mushrooms, nettles and ramps, as well as heirloom grains and produce.

Chefs, execs and students compete in Culinary Clash

A number of top executives from the CRA’s board gathered at the show Sunday for the Culinary Clash: Battle Anaheim, a competition of teams from 10 chains in a benefit that raised about $45,000 to benefit the CRA Educational Foundation.

The challenge was to prepare a dish using scallops and lamb in less than 45 minutes using only two butane burners. The dishes were judged by a panel that included Ferdinand Metz of the Master Chefs Institute and former Top Chef contestant Betty Fraser.

The competition had top executives and chefs paired with high school students in the ProStart program to prepare the dishes, which were judged by varying aspects. The team from Maria’s Italian Kitchen, for example, included chief executive Madelyn Alfano, corporate chef J.J. Berardis, who is also her nephew, and Imelda Morales of Santee High School in Los Angeles.

The winner for overall taste and presentation was the team from Daily Grill — though Fleming’s Prime Steakhouse was the Ecolab Champ for having winning food safety and sanitation practices.

The team from Yard House, which included Herrmann and founding chef Carlito Jocson, along with Ramiro Rodriguez from Newport Harbor High, raised the most money with a Facebook campaign that garnered $1,240.

Also during the show, Mariann Costello, vice president of the 47-year-old Scoma’s Restaurant in San Francisco, was named CRA chair, replacing outgoing chairman Harald Herrmann, chief executive of Yard House Restaurants. On deck for the chairman’s job next year is vice chair Kevin McCarney, founder of the Poquito Mas chain, based in Los Angeles.

Next year, the Western Expo is scheduled for Aug. 18-20 at the Los Angeles Convention Center.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

Chef Gregory Gilbert shares what's next for Bar on Fifth's menu

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Gregory Gilbert, the executive chef at The Setai Fifth Avenue in New York, is not the sort of guy who hogs the spotlight.

The hotel’s signature restaurant, Ai Fiori, is operated by Michelin-starred chef Michael White, but Gilbert is responsible for much of the culinary heavy lifting at The Setai, including catering, in-room dining, any needs of the property’s residences, and its nonsignature restaurant, Bar on Fifth.

In addition, Gilbert periodically shares his facilities with the personal chefs who accompany some of The Setai’s high-powered guests, and this fall, he’ll be offering dishes created by his mentor, Rick Moonen.

Gilbert worked under Moonen, who is lauded for his seafood expertise, at Manhattan restaurants The Water Club and Oceana before getting his first executive chef job, at age 25, at Crabtree’s Kittle House in Chappaqua, N.Y.

Here, he discusses plans for Bar on Fifth's menu, including Moonen's dishes, and what it's like to share his kitchen with personal chefs.

Why are you offering other chefs’ food on Bar on Fifth’s menu?

Rick Moonen was in town and we were discussing a lot of changes at the bar, and I thought it would be fun to have guest chefs give us three items that are small — little bites. It’s not like I’m promoting my next-door neighbor. He’s out in Las Vegas, and our guests travel a lot, so it’s good cross-promotion.

One of the items you’ll be serving is a Blue Point oyster with cucumber-ginger mignonette and phytoplankton caviar. What is phytoplankton caviar?

Phytoplankton’s basically the seaweed that whales eat. It’s going to be one of the biggest superfoods coming out. Rick made a purée of it with fresh clam juice. We marinated it with American sturgeon golden caviar overnight, and it just tasted like crisp ocean and was this beautiful green color.

I’m also doing a Louisiana shellfish gumbo with clams, mussels, lobster, shrimp and scallops that Rick had on the menu when I started working with him in 1992, and he always had the same Jonah Bay crab cake, which I’m doing with cucumber salad, nuoc cham [a Vietnamese condiment of fish sauce, sugar and citrus] and avocado tartare.

You also have guests who travel with their own chefs, right?

Some of them do. I’ll discuss with the chefs what they want to serve and what we have in house. They come down to our kitchen and my guys on the line will help them out if they need it.

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Do you charge them?

We charge them for the food, yes. But our staff just helps free of charge. Usually I buy the food and they cook it without our help, and it works great.

Is that common in hotels?

It depends on the hotel and the kitchen. The last hotel I worked at, the kitchen was extremely small and we barely had room for ourselves, let alone a guest chef.

Have you picked up any ideas from the personal chefs?

One of them had this amazing ginger tea recipe. It didn’t have any sugar. It had a little bit of honey, and then there was a ratio for ginger — peeled, crushed, steeped for 20 minutes, covered for 40 minutes and then cooled down. It was just the right balance.

What menu items are your customers enjoying enjoy these days?

We have a salmon tasting on the bar. It’s a seared salmon toro — that’s the belly — then a tartare and a sashimi, and that sells tremendously.

Oysters have always been a very big seller, and lobster cocktails.

What do you have planned for the fall?

We’re going to be putting on an Idaho smoked trout with truffle potato salad and Champagne-chive emulsion. That will be on the lunch menu, along with wild king salmon with potato parsnip cake and baked lemon.

Baked lemon?

We slice it in half and cure it overnight with salt, sugar, thyme and red pepper flakes. We butter the flesh side and cook it for five to seven minutes so it starts to get golden brown, and then it’s ready to squeeze a nice, warm, sweet juice.

What’s going on the dinner menu?

At dinner most of our stuff is shareable items. So we’ll be doing a shrimp and avocado tartine, a smoked salmon roulade with cucumber slaw and toasted brioche, and poached lobster tartines with cucumber, mango and basil aïoli.

Do your guests ask much about where your seafood comes from?

Yes, I think people are much more conscientious about sustainable fishing. I definitely think that has a huge influence on people now. Six or seven years back that wasn’t as much the case.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary

Jack in the Box sells 18 Houston units for $7.3M

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Jack in the Box Inc. has sold 18 of its namesake restaurants in the Houston area for $7.3 million as part of an ongoing refranchising initiative.

The San Diego-based chain revealed details of the deal after releasing third-quarter results last week. The Houston restaurants were acquired by franchisee MZK Enterprise LLC, and the transaction was completed in May.

This year, the company expects to sell about 100 units as part of a plan to become a mostly franchised brand. Deals already completed this year include the sale of 37 restaurants in the Seattle area in April, which generated about $20 million.

At the end of fiscal 2011, Jack in the Box was 72-percent franchised. The company said it is currently seeking experienced, multi-unit operators to refranchise company-owned units in the Southeast and Midwest, including Tulsa, Okla.; Kansas City, Mo.; Indianapolis; and Cincinnati.

Other markets approved for franchise development for the brand include Louisville, Ky.; Cleveland; Wichita, Kansas; Little Rock, Ark.; Omaha, Neb.; Fayetteville, N.C.; and Champaign, Ill.

At the end of the third quarter, the company operated or franchised 2,247 Jack in the Box restaurants and 614 locations of Qdoba Mexican Grill.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

Abuelo's Mexican Restaurant plans new fast-casual spinoff

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Food Concepts International is planning a fast-casual spinoff of its Abuelo’s Mexican Restaurant in late October with the opening of the new Abuelo’s Taqueria in its home base of Lubbock, Texas.

The 41-unit Abuelo’s casual-dining chain has designed the Taqueria concept to offer Mexican items as well as salads, vegetables and house-made sauces and salsas. The unit will also serve beer and margaritas.

Robert Lin, president of Lubbock, Texas-based Food Concepts International, said, "Abuelo’s Taqueria offers us a way to further express our passion for food in a distinctively different way, while at the same time giving our guests the same quality they have come to expect from Abuelo’s.”

The Taqueria will cover about 3,500 square feet, compared with the typical full-service Abuelo’s unit size of 6,800 square feet, the company said. Also, the spinoff will seat 96, compared to the 225 seats in a typical Abuelo’s full-service unit.

Guests at the new Abuelo’s Taqueria will order and pay at the counter. The company is still considering the options of customers picking up the food at the counter or having runners deliver it to the table, according to Melanie Carroll, director of communications for Food Concepts.

Fast-casual spin-offs from full-service restaurants have been ongoing since the 2000 introduction of Pei Wei Asian Diner by P.F. Chang’s China Bistro and extend to family dining with concepts from Denny’s, IHOP, Shoney’s and others.

Fast-casual chains like Panera Bread and Chipotle Mexican Grill have been gaining market share from full-service concepts. The Chicago-based consultancy Technomic reported in May that 2011 sales at the top 150 fast-casual chains grew 8.4 percent to $21.5 billion, outpacing the 6.6-percent growth at all the 500 top restaurant brands. Total restaurant units among the most recent “Fast-Casual Top 150” concepts rose 5.2 percent, to 17,447, Technomic reported.

Darren Tristano, executive vice president of Technomic, said in a statement with the May data release: "Fast-casual restaurants fill the gap between quick service and casual dining. People want fast, fresh, quality meals at a fair price point. This segment seems to hit that sweet spot right now."

James Young, co-founder and chief of Abuelo’s and chairman of Food Concepts International, said the Taqueria is “a perfect fit for today’s lifestyles and is ideal for both lunch and dinner for everyone who loves Mexican food but is short on time.”

Abuelo’s, founded in 1989, has units in 15 states.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless


Sarku Japan steps up U.S. expansion

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Japanese quick-service chain Sarku Japan has stepped up its expansion in the New York metropolitan area with the planned opening of three new freestanding restaurants before the end of the year.

The Toronto-based company, which already has 231 company-owned and franchised locations in 37 states, said it expects to open the New York branches in Yonkers, Manhattan and Queens over the next several months.

While about two-thirds of Sarku’s outlets are company operated, all of the New York units will be franchised, said Bruce Kim, assistant vice president of franchises. The 25-year-old privately held concept began franchising about four years ago.

In addition, Sarku has plans to focus on the New York-New Jersey-Washington, D.C., corridor and open a total of 15 branches throughout the area during the next year, Kim said. Five more outlets are expected to open elsewhere the United States during that period.

Half of the new units will be company owned. “We believe in putting our money where our mouth is,” Kim said.

Sarku, which has long focused on placing food court units in malls, more recently has broadened its horizon to include a larger freestanding model.

“Traditionally, we operated exclusively in malls and food courts,” Kim said. “But like Panda Express and Chick-fil-A, we have outgrown the food courts. This country just has a finite number of malls.”

Sarku currently has 17 freestanding units. The freestanding stores cost between $283,000 and $562,000 to open.

The quick-service concept generates an average per-person ticket of less than $10 from a menu featuring signature teriyaki dishes cooked on flat Teppanyaki grills, as well as tempura chicken and shrimp, and other items.

“People often think of Japanese food as being fancy like Benihana, but we’re not,” Kim said. “We’re actually more like McDonald’s. We provide a meal for good value. We’re a volume-driven business.”

Japanese sushi and sashimi also are available in larger Sarku Japan freestanding locations.

Although the concept has served the same core menu for 25 years, Kim said, the company is in the process of researching new dishes to expand the menu. “We will adjust as the market demands,” he said.

While Kim declined to disclose sales figures for Sarku Japan, company officials earlier told researchers for the Nation's Restaurant News Top 200 census that the chain had 2011 U.S. systemwide sales of $179.1 million, an increase of 12.01 percent from $159.9 million a year earlier. The chain's 2011 estimated sales per unit, as calculated by NRN research, was about $909,100.

Sarku Japan also has 10 locations in Colombia, South America, operated by a master franchisee.

Editor's Note: This story has been updated from a previous version to reflect the correct  2011 estimated sales per unit for Sarku Japan.

Contact Paul Frumkin at paul.frumkin@penton.com.

Domino's Pizza unveils new logo and restaurant design

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Domino’s Pizza on Tuesday unveiled a new “store of the future” design and a reworked logo as the next step in the chain’s ongoing brand repositioning.

The new store design aims to put pizza front and center with a “Pizza Theater” format that will have “pizza-making artists” hand tossing dough and creating custom-made pies in front of guests — a move that may better position the brand to compete against a growing number of build-your-own fast-casual pizza concepts.

The new logo, however, doesn’t include any mention of pizza, just the simple red-white- and-blue, single-tile domino that company officials hope will become as recognizable as the Nike Swoosh or the Golden Arches.

The move is part of an ongoing effort to re-invent the pizza delivery brand, said Chris Brandon, a spokesman for Domino’s.

Over the past several years, Domino’s reformulated its core pizza recipe and has been working to revitalize sales with an expanded menu that this year has included a line of Artisan Pizzas and side items like Parmesan Bread Bites and Stuffed Cheesy Bread, and sandwiches.

“More than 80 percent of our menu is new or revamped since 2008,” said Brandon. “This is not so much a sign of what’s to come, but what we’ve already done.”

Russell Weiner, Domino’s chief marketing officer, said in a statement that 2008 was the year the company recognized a need to change.

“We began to expand our menu, develop a whole new recipe for our pizza and come up with new, breakthrough ways to talk about our brand with consumers. We began to interact with customers in innovative ways through technology, mobile devices and social media,” he said. “The next step in this process is to build the store of the future, featuring new store signage and a simple, visually striking logo — because we believe Domino’s has become an iconic global brand that is instantly recognizable.”

Nearly a dozen locations featuring the new look have opened, from Las Vegas to Gulfport, Miss., the company said. All new units to open in the U.S. and some international locations will have elements of the new design and the new logo.

Existing stores that undergo a major remodeling will be allowed to use the new signage. “The best way to signal that there’s something new on the inside is to create something new on the outside,” said Weiner.

Depending on square footage, the Pizza Theater stores may have a “comfortable lobby,” as well as an open view of the food preparation process, including a step platform for kids to watch their pizza being made.

Guests may be able to order from a kiosk and track their orders electronically. Stores may also feature a chalkboard to allow guests to express creativity or give feedback.

Units may also have a case with grab-and-go offerings, such as salads, cookies and milk, or mini-dessert parfaits. Some may also offer in-store dining space and big-screen TVs.

Brandon said one goal of the design revamp is to improve the customer experience as a growing number of guests pick up their pizzas. Currently, about 30 percent of guests pick up from Domino’s stores, a number that has grown in recent months in part because the chain has been promoting a $7.99 deal for a large pizza with three toppings, available for pickup during the week, said Brandon.

“People are starting to realize where their local Domino’s Pizza is located,” he said.

Domino’s, however, has struggled with negative order counts among U.S. stores despite positive same-store sales. For its June-ended second quarter, same-store sales in the U.S. rose 1.7 percent, reflecting gains of 1.9 percent at franchised locations and 0.3 percent at company-owned stores. International same-store sales rose 5.7 percent. A year ago, however, same store sales were up 4.8 percent domestically.

Ann Arbor, Mich.-based Domino’s operates 387 restaurants and franchises another 4,514 units in the United States, and it franchises 5,023 locations in more than 70 international markets.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

Chefs give caramel a salty bite

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When it comes to popular desserts, it’s unlikely that anything will take the place of a straight-up scoop of vanilla ice cream or something simple and chocolaty, but sweets with a savory edge are gaining ground in the United States, as illustrated by the growing prevalence of salted caramel.

Although still mostly seen in independent restaurants, some national chains, including Starbucks and Cold Stone Creamery, have added salted caramel flavors recently, and a major spirits producer introduced a salted caramel flavored vodka in July.

“Lots of different desserts and beverages are including salted caramel, like frozen treats — ice cream, gelato, frozen yogurt, etc. — pies, cakes, blended beverages, premium hot and iced coffee etc. It’s a flavor that works across item types,” said Jana Mann, director of menu trends for research firm Datassential.

New York-based frozen yogurt chain 16 Handles recently launched a salted caramel flavor at its 25 units.

“We brought salted caramel into the mix to satisfy guest demand for sweet and savory flavor combinations, and the response has been overwhelming,” 16 Handles founder Solomon Choi said. “Everyone absolutely loves the salty sweet taste, and we are being inundated with requests to keep the flavor on our menu indefinitely.”

The salted caramel frozen yogurt sells for 52 cents an ounce, the same price as its other flavors.

Ray Karam, Cold Stone Creamery’s senior tastemaker, said the chain released a salted caramel ice cream last year. Starting Oct. 3, its new salted caramel frozen yogurt will be offered across the 1,086-unit system.

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Although some versions of salted caramel can be quite salty, the confection didn’t start that way.

At its simplest, caramel is sugar that’s cooked until it turns a caramel color. Caramel sauces and chewy caramel candies are often enhanced with butter.

That butter was generally unsalted until 1977, when Henri Le Roux, a candy maker from the French region of Brittany, decided to make his caramel candies with traditional Breton butter, which, unlike other French butter, is salted.

The result was both a scandal, as a radical departure from French candy-making tradition, and a sensation that won the award for France’s best candy in 1980.

"Salted caramel offers that ooey gooey, yummy, burnt-sugar-but-salty taste that is always a pleasure to encounter in a dessert," said Amanda Rockman a contestant in Season 2 of "Top Chef, Just Desserts" and executive pastry chef of Balena and The Bristol, both in Chicago. She offers an open-faced caramel banana tart, made with banana milk jam, an almond crust, sweet cream and salted caramel, for $9.

Jai Kendall, pastry chef of 12-unit Rosa Mexicano, an upscale Mexican chain based in New York City, adds sea salt to cajeta, a caramel similar to dulce de leche but made from goat milk instead of cow milk, and makes ice cream out of it.

“The sea salt cajeta has been a real hit this season,” she said. “It’s a great pick for the sweet tooth who can’t handle the richness of chocolate but wants something more robust than a summer fruit flavor.”

The ice cream is $8 for three scoops; flavors can be mixed and matched.

Lori Baker, pastry chef of Baker & Banker in San Francisco, offers both a salted caramel latte, at $4, a sort of salted version of Starbucks’ popular caramel macchiato, and a dark chocolate cake with salted caramel frosting, at $4.50, which Baker said is the restaurant's most popular cake.

Baker said the dessert has a more “adult” flavor than a typical chocolate cake because the salt balances the dish’s sweetness. Additionally, a cupcake filled with salted caramel and topped with dark chocolate frosting sells for $3.50.

At Highpoint Bistro & Bar in New York, chef Susie Singh has an entire salted caramel-based dessert. Her $12 Caramel Experiment for two features cupcakes, biscotti, popcorn, candied peanuts, marshmallows, berries and pretzels, all served beside a pink Himalayan salt rock with caramel sauce poured on top.

Even the ice cream sandwich has been given the salted caramel touch at Presidio Social Club in San Francisco, where pastry chef René Cruz combines ice cream, toasted meringue, salted caramel and honey-roasted peanuts for what is now one of the restaurants most popular desserts. It sells for $8.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary

The path to opening a restaurant in China: La Tagliatella's story

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La Tagliatella, a casual-dining concept that is a joint venture between Europe-based AmRest Holdings and Texas-based Stubb’s Asia Ltd., will open a unit in Shanghai this fall.

Greg Walther, president and chief executive of the partnership, known as AmRest HK Ltd., is in the process of opening both La Tagliatella and the Stubb’s BBQ concept in Shanghai this fall. The first La Tagliatella restaurant opened in 2001.

Concept owner AmRest Holdings has more than 135 of the Madrid-based La Tagliatella restaurants throughout Spain, France and Andorra, and plans to open one in Atlanta this fall through a separate partnership.

AmRest Holdings has a portfolio of about 700 restaurants, including the U.S.-based brands Applebee’s, Burger King, KFC, Pizza Hut and Starbucks.

Walther said La Tagliatella will be known in China as Chun Yi Tang, or “Pure Italian Heaven.” The concept serves Northern Italian cuisine.

Walther, who has worked in international development with Outback Steakhouse and Brinker International, spoke with Nation’s Restaurant News about the developments in China.

Can you tell us a little more about La Tagliatella?

It looks like fine dining but at casual-dining prices. The inside is heavily wooded to look like a Northern Italian home. Parts of the restaurant look like a library. It’s positioned in Europe, and we’re going to do the same positioning in China. It has a real “wow effect” when you walk in. … It looks like an old villa.

The forthcoming La Tagliatella restaurant in Atlanta is slated at about 5,200 square feet. How about the Shanghai unit?

My units are going to be closer to the European model, which seats about 180. We’re anywhere from 4,000 to 5,000 square feet. The main difference is there is no belly-up bar. We only have a service bar.

How will it fit into the Chinese market?

One, they love brands. Two, they love nice things. And three, they are always concerned about value.

You are also taking Stubbs BBQ into China?

We have a site under construction for that as well. We won’t have a 2,000-person music venue, but we will have music and serve authentic Texas barbecue. … We will have an exact replica of the big belly-up bar they have in Austin, and an authentic wood smoker.

You worked with Outback in the Far East before. What has changed?

The change has been unbelievable. It’s hard to overstate how much it has changed. It’s like night and day. In fact, the pace of change is increasing. There’s a tsunami of young urban professionals — well-educated and well-compensated — and they are looking for where and how to spend their significant disposable income. They eat out quite frequently. This group increasingly eats out with a knife and fork instead of chopsticks.

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And what has been the most significant change in the business climate?

The most significant change has been the establishment of what is known as a WOFE [pronounced “woofie”], a wholly owned foreign entity. You are no longer required to have Chinese partners. That’s been in place for approximately five years. … I’ve been doing Western casual dining internationally for 20 years, and without a doubt this is the best market in the world right now. Its time has come.

When are the actual openings planned?

La Tagliatella will open Sept. 15, and the Stubbs should be open about Oct. 15. We have two more La Tagliatellas that will open before the end of the year.

What type of neighborhoods will they be located in?

They will all be in center Shanghai. It tends to be a vertical city. We’re not opening in a typical ex-pat neighborhood. Our target is the young, urban Chinese professional. If I had to define it easily, our target is anyone who carries a smartphone.

Do you have any advice for those interested in going into Shanghai now?

I’d urge them to make sure whatever they are bringing to the market is appealing. A short answer is: Do your homework. We learned from our preparation and our focus groups and interaction with our demographic.

Do you have any plans to open restaurants elsewhere in China?

We want to establish ourselves first in Shanghai, which is quite frankly the commercial capital of China, and from there we can branch out to other major Tier One cities. Starbucks has gone there, and they are now going to the Tier Twos and Tier Threes.

How are you using social media to introduce these concepts to Shanghai residents?

Our platform for the launch of both brands is based on the smartphone. One of the differences between the markets, and we learned this early on, is that China has more Internet users than anywhere else in the world. Most of those people are on the Internet through their phones, not necessarily going home and getting on the computer. That’s how they communicate back and forth with each other.

How do you approach it?

We have built a brand launch around social media, bloggers, the equivalent of Facebook and Twitter. We use game-ification through our mobi websites. It’s a multi-prong approach. We’ll play out a series in our story through characters blogging about the brand. Then we’ll introduce different games you can earn points and prizes with, which will need to be redeemed at the restaurant and generate foot traffic and interest in the brands. I don’t think it’s ever been easier to launch a new brand in a new place. When I was with Brinker and opening Chili’s, I had an employee in a pepper outfit handing out leaflets.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Bob Evans: Restaurant remodels driving sales

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Bob Evans Farms Inc. said Wednesday an ongoing restaurant remodeling strategy lifted sales at its namesake family-dining brand during its first quarter and will soon be applied to its struggling Mimi’s Café casual-dining chain.

The Columbus, Ohio-based company, which along with its restaurants owns a packaged food division, reported a 16-percent decline in profit for the first quarter, in part as a result of one-time charges related to Bob Evans’ $50 million acquisition of Kettle Creations, its supplier of refrigerated side dishes.

For the quarter ended July 27, Bob Evans earned $15 million, or 53 cents per share, compared with $17.8 million, or 59 cents per share, in the same quarter a year ago. The latest quarter included severance charges and costs related to the acquisition of Kettle Creations, a Lima, Ohio-based maker of potato and macaroni-and-cheese products. Kettle Creations has been supplying Bob Evans since 2009.

Net sales, including the packaged foods division, increased about 1 percent to $409.7 million. For Bob Evans Restaurants, net sales increased 1.7 percent to $248 million in the first quarter, which reflected a same-store sales gain of 1 percent.

The company has remodeled about 150 Bob Evans locations this year, and about half will be refreshed before the end of the fiscal year.

Remodeled locations are reporting an average sales lift of about 5 percent, and the company plans to accelerate the program, said Steve Davis, Bob Evans Inc.’s chair and chief executive.

Mimi’s Café, however, reported a same-store sale decrease of 3.3 percent, with net sales for the chain down 3 percent to $86.3 million — an ongoing trend that has continued to fuel speculation that Bob Evans may be looking to sell the Mimi’s concept.

After seeing the sales lift from remodeling at the Bob Evans brand, the company plans to launch a similar remodeling program for Mimi’s, and three locations are currently in test.

Davis said Mimi’s is continuing to work on adding value to the menu with deals like a three-course dinner for $9.99, which has worked well for Bob Evans. Mimi’s guests can add shrimp skewers or crab cakes for $2, and three-quarters of guests do, he said.

Davis also noted that Mimi’s same-store sales improved throughout the quarter, showing a decline of 5.6 percent in May and a dip of 2.1 percent by July.

“We know value is top of mind when our guests make purchasing decisions,” Davis said. “Consumers are increasingly risk averse.”

Bob Evans’ food division recorded net sales of $75.5 million, an increase of 4.5 percent.

The company raised its outlook for the year by a penny, saying earnings per share would total between $2.67 and $2.73, compared with the previously projected range of between $2.66 and $2.72.

For the year, Bob Evans Restaurants same-store sales are expected to increase between 1 percent and 3 percent. Mimi’s same-store sales are expected to range between a decline of 2 percent and an increase of 1 percent. An increase of $1 million in marketing spending is expected to help drive that result, the company said.

Commodity pressures are expected to be a challenge next year as a result of this summer’s drought, Bob Evans executives noted. The company projected commodity inflation for the year will total between 2.5 percent and 3.5 percent, more than previous projections of inflation between 2 percent and 3 percent. Officials warned that a net menu price increase of between 1 percent and 2 percent may be likely for both restaurant chains.

Bob Evans operated 565 namesake restaurants at the end of the quarter, and 145 Mimi’s Café units.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

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