Saturday, April 26, 2008

COPING WITH THE GROWING COST OF COFFEE

Economic woes are percolating down to Americans' morning brews.

Java junkies looking to pinch pennies are sipping less expensive coffee drinks, brewing at home or going cold turkey altogether. The shift is hurting both small-time coffee shops and giants of joe such as Starbucks, which said Wednesday that it expected lower second-quarter profit and full-year earnings than it originally projected because in-store sales and traffic had declined. It blamed the economy, not its prices, for the slowdown.

"These days, I'm not about to buy a $5 coffee," said Carlos Medina, a house painter from Covina who has persuaded his girlfriend to get her daily fix at McDonald's, which introduced a premium drip coffee in 2006, rather than Starbucks.

Starbucks has faced cut-rate competition in recent months from companies such as McDonald's Corp., which is rolling out a line of premium coffee drinks, and 7-Eleven Inc., which in February unveiled a multimillion-dollar advertising campaign to talk about its freshly brewed coffee. Partly as a response, Starbucks this month introduced Pike Place Roast, a drip coffee, and has distributed coupons allowing consumers to get the blend free on Wednesdays.

"The current economic climate is the weakest in our company's history," said Howard Schultz, Starbucks Corp.'s chief executive. The company said it was being hit especially hard in California and Florida, which make up nearly one-third of its U.S. retail revenue.

In a caffeine-addicted nation, there will of course always be people like Justin Rabalais, a West Hollywood bartender who still goes to Starbucks every day despite being a little low on cash these days. "I need it to wake up," he said. "They must put something in it, because nothing else works as well.

"But many are like Kat Ward, a head-shot photographer in Hollywood who has restricted her Starbucks intake to twice a week, down from four or five times. Now, she buys beans at the grocery store and brews coffee at home. With her photography business slow because of a potential actors strike, she said, "It's cutback season.

"Sarafina Rodriguez, assistant manager at the Groundwork coffee shop on 2nd Street downtown, said more customers are becoming their own baristas.

A pound of coffee costs $9.50 to $17.50 at her shop and yields about 40 cups. That would run you $56 at Groundwork.

Those who haven't given up the coffee-shop routine are buying less expensive drinks: drip coffee rather than a caramel macchiato, or an iced coffee instead of a frappuccino.

"Fancy coffee has had its run," said Dean Trucco, owner of Stir Crazy, a boutique coffee shop on Melrose Avenue.

Other folks are starting to buy their coffee in convenience stores, said David Portalatin, director of industry analysis at NPD Group. In the first quarter of this year, 19.2% of consumers going into convenience stores purchased coffee, up from 18.6% in the same period last year.

"As consumers are getting squeezed economically, the overall share of their wallet going into the gas tank increases, so they have to make choices about spending," Portalatin said. Consumers spent $38 billion more on gasoline in 2007 than they did the previous year, he noted.

"I'm not too picky; I buy it in gas stations now," said Garrett Wayne, a freelance artist who feels pinched because of the cost of filling his Chevy Tahoe. He was holding a tray of Starbucks drinks to take back to work but said "the only time I buy coffee like this is when work pays.

"If the idea of chugging gas-station coffee instead of your usual nonfat grande honey latte with extra foam sounds like a nightmare, pity Robert Menna, who said he was going to try to cut out coffee entirely.

"It's such a bad habit," Menna said outside a Coffee Bean in Larchmont Village. "It's one of those hidden expenses you don't want to admit."

Saturday, April 19, 2008

New Research Helps Restaurant Operators Plan Ahead to Weather Economic Challenges

The National Restaurant Association and Deloitte LLP today released the 2007/2008 Restaurant Industry Operations Report, new research that can help restaurateurs plan ahead and adjust to changing economic conditions. Understanding how to modify budget items, how costs of food/beverages, utilities, labor costs and other items are allocated, and monitoring profit margins in similar operations can give operators and managers an edge when it comes to adapting to a challenging economy.

"As the cost of doing business increases over time and fluctuates over periods, America's restaurants are implementing a number of innovative strategies to adjust to their economic environment," said Hudson Riehle, senior vice president of research and information services for the National Restaurant Association. "By monitoring and adjusting their budgets, restaurant operators can effectively respond to new challenges. For example, under current conditions, operators may want to allocate more to marketing efforts to drive traffic."

Consumers are keeping the restaurant industry in a sustained growth mode, even as overall economic conditions experience a downturn, as dining out is an essential part of Americans' lifestyle. Set for its 17th consecutive year of growth this year, the $558 billion industry is feeling the squeeze of elevated energy and wholesale food prices but is weathering these challenges.

"Elevated gas prices, higher food costs (wholesale and menu), and other factors likely will cause consumers to become more discriminating in their spending," said Steven Steinhauser, Director, Restaurant Industry Practice, Deloitte & Touche LLP. "Nevertheless, consumers continue to demand the variety, convenience, and socialization restaurants provide. The ability of dining establishments to provide customers with an assortment of food and beverage options will be essential to competitive differentiation in the upcoming year."

The Restaurant Industry Operations Report analyzes restaurant-operator income statements based on information collected from more than 700 restaurants nationwide. It includes data on sales, gross profits, operating expenses, seat turnover, employees per seat, pre-tax income and much more. The results are expressed as amounts per seat and as ratios to total sales, the most common bases used in the industry, as well as by location, menu theme, affiliation and sales volume. Individuals who purchase the national report will also receive regional and/or state operations reports, which allows for geographical differences to be taken into account.

The data processing was performed by Deloitte & Touche LLP, and the report was published in conjunction with the National Restaurant Association. More than 700 questionnaires were received from restaurant operators, which form the basis of this report. This unique study of the operating results of restaurants principally in 2006 includes specific financial information on full service restaurants segregated by average check of less than $15 per person, average check per person $15 to $24.99, average check equal to or greater than $25 per person, and limited service restaurants.

Wednesday, April 16, 2008

Specialty Food News

NUMI Organic Tea is planing to expand into new markets, accelerate new product development, round out the senior management team and support projected growth via a $1.8 million investment from TBL Capital. NUMI Organic Tea is a premium, organic and fair trade tea company specializing in a special line up of full-leaf teas, fresh pure herbs and an innovative line of flowering teas. Full Story

United Natural Foods, Inc. plans to relocate its New Oxford, PA operations to a new 675,000-sq. ft. distribution facility in York, PA. The York distribution center is expected to commence operations towards the end of 2008 and will serve as a hub for customers in New York, New Jersey, Pennsylvania, Delaware, Maryland, Ohio, Virginia and West Virginia. Full Story

Clearly Canadian Brands signed a letter of intent to acquire Baldwin Street Kosher, which produces Gourmet Hot Dogs, Sausages, Salami's and other Kosher/Gluten Free Meat Products. Full Story


Tropical Smoothie Café plans to open up to 72 locations throughout Chicago in the next six years. The chain's move into Illinois is part of a greater expansion effort to open roughly 1,300 restaurants across the country in the next five years, reported Crain's Chicago Business. Full Story (Free Registration Required)


Chicago-based Goose Island Beer Co. will close its original brew pub by year-end because it lost its lease. The company, which sells its beers and handcrafted sodas in 15 states and Europe, will continue to operate its Wrigleyville Brew Pub, reported Chicago Sun-Times. Full Story


Maurice Lenell Cooky Co.'s assets are scheduled to be sold at auction May 7. The company that produces Jelly Stars, Almonettes and other cookies will likely stay in business, however, it is uncertain whether it will remain in Chicago, reported Chicago Sun-Times. Full Story

Some 3.2% of U.S. adults, or 7.3 million people, follow a vegetarian-based diet, according to Vegetarian Times' Vegetarianism in America report. Approximately 0.5%, or one million, of those are vegans. In addition, 10% of U.S. adults, or 22.8 million people, report following a vegetarian-inclined diet. Full Story


Colorado's governor signed into law a bill that allows liquor stores to open Sundays, making the state the 35th to do so, reported Rocky Mountain News. Full Story


Restaurant users rated both nutritional disclosure and responding to nutritional concerns among the four most important social issues for the restaurant industry to address, according to Technomic's latest study of consumer attitudes toward corporate social responsibility in the restaurant industry. Full Story


Fortune addresses how to get products on Whole Foods' shelves. For instance, food producers should confirm that what they are offering is new; products need to increase sales and bring in different customers in order to be picked up by the retailer. Full Story


CSM reached agreement to acquire Harden Fine Foods for $12.6 million. UK-based Harden Fine Foods is a supplier of cakes to in-store bakeries, as well as out-of-home market segments, reported Reuters. Full Story

NUMI Organic Tea is planing to expand into new markets, accelerate new product development, round out the senior management team and support projected growth via a $1.8 million investment from TBL Capital. NUMI Organic Tea is a premium, organic and fair trade tea company specializing in a special line up of full-leaf teas, fresh pure herbs and an innovative line of flowering teas. Full Story


United Natural Foods, Inc. plans to relocate its New Oxford, PA operations to a new 675,000-sq. ft. distribution facility in York, PA. The York distribution center is expected to commence operations towards the end of 2008 and will serve as a hub for customers in New York, New Jersey, Pennsylvania, Delaware, Maryland, Ohio, Virginia and West Virginia. Full Story

Clearly Canadian Brands signed a letter of intent to acquire Baldwin Street Kosher, which produces Gourmet Hot Dogs, Sausages, Salami's and other Kosher/Gluten Free Meat Products. Full Story


Tropical Smoothie Café plans to open up to 72 locations throughout Chicago in the next six years. The chain's move into Illinois is part of a greater expansion effort to open roughly 1,300 restaurants across the country in the next five years, reported Crain's Chicago Business. Full Story (Free Registration Required)


Chicago-based Goose Island Beer Co. will close its original brew pub by year-end because it lost its lease. The company, which sells its beers and handcrafted sodas in 15 states and Europe, will continue to operate its Wrigleyville Brew Pub, reported Chicago Sun-Times. Full Story


Maurice Lenell Cooky Co.'s assets are scheduled to be sold at auction May 7. The company that produces Jelly Stars, Almonettes and other cookies will likely stay in business, however, it is uncertain whether it will remain in Chicago, reported Chicago Sun-Times. Full Story


Some 3.2% of U.S. adults, or 7.3 million people, follow a vegetarian-based diet, according to Vegetarian Times' Vegetarianism in America report. Approximately 0.5%, or one million, of those are vegans. In addition, 10% of U.S. adults, or 22.8 million people, report following a vegetarian-inclined diet. Full Story Colorado's governor signed into law a bill that allows liquor stores to open Sundays, making the state the 35th to do so, reported Rocky Mountain News. Full Story


Restaurant users rated both nutritional disclosure and responding to nutritional concerns among the four most important social issues for the restaurant industry to address, according to Technomic's latest study of consumer attitudes toward corporate social responsibility in the restaurant industry. Full Story


Fortune addresses how to get products on Whole Foods' shelves. For instance, food producers should confirm that what they are offering is new; products need to increase sales and bring in different customers in order to be picked up by the retailer. Full Story


CSM reached agreement to acquire Harden Fine Foods for $12.6 million. UK-based Harden Fine Foods is a supplier of cakes to in-store bakeries, as well as out-of-home market segments, reported Reuters. Full Story

A government recommended diet, called the DASH diet shows strong evidence for lowering blood pressure, according to a study of more than 88,000 women over 25 years. The DASH diet favors fruits, vegetables, whole grains, low-fat milk and plant-based protein over meat. Women with these eating habits were 24% less likely to have a heart attack and 18% less likely to have a stroke than women with more typical American diets, reported CBSNEWS.com. Full Story


Green Mountain Coffee launched a line of Single Origin coffees, which include: Colombian Fair Trade Select, Guatemalan Finca Dos Marias, Kenyan Highland Cooperatives, Mexican Decaf Huatusco Cooperative, Sumatran Lake Tawar, and Tanzanian Gombe Reserve. Full Story


Amish Naturals, Inc. launched a line of 100% all-natural Chewy Granola Bars in four varieties, which will be available nationwide. Full Story


Omega Farms introduced Low-Fat Chocolate Milk fortified with Omega-3's to its line of dairy products. Full Story


NEW STORE NEWS: Rutter's Farm Store closed a York, PA location in preparation for a new 5,200-sq. ft. store set to be completed by July, reported York Daily Record. Full Story ...


The Sunflower Farmers Market opened a store in Boulder, CO, reported Rocky Mountain News. Full Story

Sunday, April 13, 2008

The Data Dilemma

Small restaurant chains are turning into big targets for credit card theft.


With an increased push toward credit card security by card issuers, many quick-service restaurants have taken steps to protect their customers’ private information from thieves. As a result, hackers are now turning their attention to smaller mom-and-pop operations, which have little to no security measures in place.

While the Payment Card Industry (PCI) Security Standards Council has implemented Data Security Standard (DSS) requirements to protect cardholder information and card issuers have set up compliance programs to make sure these standards are met, the majority of small-business owners have little to no awareness or knowledge of the protocols.

According to a recent survey commissioned by the National Federation of Independent Business (NFBI) and Visa Inc., 39 percent of small businesses say they rely on common sense to keep data safe, and 61 percent have never sought out information about how to properly handle and store customer information.

As a result, some small-business owners find out the hard way about credit card security breaches. Pittsburgh-based Burrito Group recently settled a class-action lawsuit that claimed the company violated the Fair and Accurate Credit Transaction Act of 2003 by printing the last five numbers and expiration date of customers’ credit cards on their receipts

In January 2007, after being identified as a common point of purchase among some cardholders whose accounts had been compromised, Lodi Beer, a microbrewery and restaurant in Lodi, California, learned its computer system had stored the account data of more than 11,000 customers.

Ignorance of the industry standards and compliance rules doesn’t prevent small businesses from incurring hefty fines—not to mention negative press. In the case of Lodi Beer, its card processor, Abanco International LLC, was fined $27,000 by Visa and MasterCard for noncompliance. Abanco then passed this fine on to Lodi Beer.

The keys, it seems, to remaining in compliance are education and due diligence. Most importantly, mom-and-pop restaurant owners and managers must learn the PCI DSS requirements for their business. They also need to make sure their operation is in compliance with those requirements.

To make this process easier, the PCI Security Standards Council updated its self-assessment questionnaire in February to simplify and streamline the assessment process. Bob Russo, general manager of the PCI Security Standards Council, says the change came after feedback from acquiring banks, qualified security assessors, and small merchants stating that a “one size fits all” approach was not working. “We made it more understandable for these small

Many of the credit card brands also are providing educational resources regarding their individual compliance rules. These come in the form of Webinars, online guidelines manuals, and online fraud prevention tool kits.

Visa and NFIB developed a booklet, The NFIB Guide to Data Security, to educate and assist small businesses in safeguarding customer information. “Small merchants represent 99 percent of the total Visa merchant population, and, even though they may have limited access to sophisticated security analysis, even small changes can dramatically improve security for them, their customers and the overall payment system,” says Jennifer Fischer, director of payment system risk and compliance for Visa.

Of course, many mom-and-pop restaurant owners rely on their credit card processor or POS product to keep them up to date on security issues and compliance. But this approach is not foolproof. “It’s really an ongoing issue, because the level of security is only as good as the last change you made,” says Paul Rasori, vice president of global product marketing for VeriFone Inc., a supplier of secured payment point-of-sale (POS) infrastructure to merchants.

In fact, POS suppliers and management solution providers have recognized the need to educate their clients on the security aspect of their products. At HotSauce Technologies, a national and international management solution provider, company CEO Kai Hsu says his company has a responsibility to help clients stay compliant with DSS standards and industry rules.

“It’s a problem everybody is facing, and that everybody needs to work together on,” Hsu says. “It’s important for all of us service providers to remember our clients are potential victims. Our duty is to work with our clients, to prevent it from happening, and to help them through it when it does. Their interests are whatDave Gerard, owner of Deli Junction in Ellijay, Georgia, switched from a bank credit card processor to HotSauce Technologies’ POS system almost three years ago. He knew little about the DSS standards or compliance rules until his HotSauce representative outlined those aspects of his POS system. Gerard then researched the standards to get a better understanding of what was required of him, but found that HotSauce had his system secured. “They’ve been real thorough,” Gerard says. “I’ve been impressed.”

Although cost is a factor in putting the right security components in place, Gerard recommends it to other mom-and-pop restaurants owners. “Unless you’re really computer-savvy, you should hire someone to do it for you,” he says. “There’s a good chance you’ll leave your customer exposed, and that’s not a good thing.”

In addition to working with credit card processors and POS system providers, more information on keeping credit card information secure can be found at the PCI Security Standards Council Web site www.pcisecuritystandards.org as well as the various credit card brands’ Web sites.

we really need to look at.”

Tuesday, April 08, 2008

A Big Expensive Coffee Maker. WHAT ARE WE THINKING OF??

An $11,000 coffee maker—and a drip brewer at that—sounds like Exhibit A in a congressional hearing on criminally inflated military spending. It’s the Clover, a commercial machine that has gained a cult following for the heavenly coffee it produces. It precisely makes one cup of coffee at a time, letting you select brewing time and temperature to coax the best flavor out of the particular bean you’re using. The barista pours ground coffee onto an extremely fine filter atop a piston that descends into the machine. After the coffee steeps, the piston rises, creating a vacuum that pulls water through the grounds. The finished coffee flows through a spout into a waiting cup. Despite its price tag, a Clover can increase café owners’ profits by allowing them to charge more per cup according to the bean.

To date, only a smattering of roasters and cafés have the machine. I tracked one down at Intelligentsia’s Millennium Park location, to see if it was really worth it. Intelligentsia charges anywhere from a few bucks to $22 per 12-ounce cup of Clover-brewed java.

The sleek, 110-pound apparatus looked like an unassuming espresso maker. Although it is fully automated, it still requires some moves,.

After weighing and grinding the beans—the coveted Hacienda La Esmeralda Geisha from Panama—I adjusted the Clover’s settings for cup size, time, and temperature. Intelligentsia’s quality-control team at its central roasting works in the city determines the settings for its top five beans every week. A cheat sheet is taped to the side of the Clover to aid baristas. After I poured the ground coffee onto the filter screen just below the attached hot-water spigot and pressed the start button, the pistoned screen descended into the brewing chamber and hot water flowed in. I gently agitated the mixture with a flat silicone whisk.

In 42 seconds, the filter screen rose up, bringing with it a patty of coffee grounds, which was squeegeed into the waste slot, leaving an amateur’s sloppy trail that had to be wiped down.

The finished coffee streamed out automatically from a spout underneath the control panel. Even before my initial sip, the deep chocolate color and rich aroma drew me close. I suddenly remembered my first whiff of ground coffee as a kid. My introduction to Clover-made coffee was exactly what I’d wished for from that childhood scent. It had full body, remarkable clarity, and bright acidity. I thought, “This has ruined me for all other coffee.”

You probably can’t afford a Clover, nor could you fit one in your kitchen. Not all is lost, though, if you don’t live near one of the few cafés that use a Clover. Baristas I talked to recommended that home brewers buy one of the coffee makers that are explained here.

The Chemex is an hourglass-shaped glass flask designed by German-immigrant chemist Peter Schlumbohm in 1941.

It makes beautifully clear, flavorful coffee, but compared to a French press (see next recommendation), it’s relatively time-consuming and messy, which can be a challenge first thing in the morning.

Dampen a special Chemex paper filter, insert it into the top of the flask, add medium-ground coffee, and continually add slightly-cooler-than-boiling water until you’ve brewed your desired amount. You don’t simply add water then step away. You must keep the top vessel filled while the finished coffee filters to the bottom. The sand-through-the-hourglass-like process is what makes the finished product so good. It gives the hot water time to infuse the coffee, yet also filter through.

Many coffee experts use a French press in the morning, because it’s easy to operate and clean out. Plus there are no paper filters, which people with very exacting palates claim can impart or absorb flavors. This Chambord model is a classic and considered to be one of the best.

It debuted in 1933, manufactured incongruously by a clarinet factory in Normandy. Now owned by Bodum, the press is still the same. It comes in several sizes. Like all French presses, it works like this: Add coarsely ground coffee and near-boiling water to the pot, then place the filter plunger on top, but don’t press down yet. After you let the grounds and water steep for about four minutes, press the plunger down slowly—the water will be pushed through the strainer, leaving the grounds behind on the bottom of the pot. Your coffee is ready.

Can a Good Coffee Maker Transform Bad Coffee?

Out of curiosity, I wanted to see if the French press and the Chemex could make low-quality coffee taste good. I chose an inexpensive Classic Roast, which in my opinion somehow manages to be thin yet jaw-achingly sharp and bitter.

The folks at Intelligentsia declined to let me brew in their Clover, because a company representative said we wouldn’t know the correct settings and therefore wouldn’t give the coffee a fair shake. I felt it would have been a bit much to ask Intelligentsia’s quality-control team to determine the best settings, and Folgers does not have brewing guidelines for the Clover.

Following Intelligentsia’s general guidelines for brewing coffee in non-Clover appliances, I used Brita-filtered water—boiled in an electric kettle and the temperature verified with a digital thermometer to be 205 degrees Fahrenheit—and two tablespoons of ground coffee for every six ounces of water.

The standard grind of Folgers was too fine for the French press, leaving way too much sediment. The Chemex made a characteristically clean and sediment-free coffee.

Otherwise the finished cups of coffee were similar: There was no body. It was like drinking hot, brown, burnt water, an interesting concept actually. The piercing bitterness I usually taste with coffee of this caliber wasn’t there. So sadly, the answer is no, not even two great coffee makers can make bad coffee taste good. Just a little better.

Thursday, April 03, 2008

Caffeine blocks disruption of blood brain barrier in a rabbit model of Alzheimer's disease

We find it amazing how every week a new study comes out on coffee. Most of them are positive and we tend to believe, coffee beeing a natural product, has mecicinal advantages. Moderate drinking of coffee is always advised and the higher the quality, the better the coffee. (arabica's only. That is our language)

High levels of serum cholesterol and disruptions of the blood brain barrier (BBB) have all been implicated as underlying mechanisms in the pathogenesis of Alzheimer's disease. Results from studies conducted in animals and humans suggest that caffeine might be protective against Alzheimer's disease but by poorly understood mechanisms. Using rabbits fed a cholesterol-enriched diet, we tested our hypothesis that chronic ingestion of caffeine protects against high cholesterol diet-induced disruptions of the BBB. New Zealand rabbits were fed a 2% cholesterol-enriched diet, and 3 mg caffeine was administered daily in drinking water for 12 weeks. Total cholesterol and caffeine concentrations from blood were measured. Olfactory bulbs (and for some studies hippocampus and cerebral cortex as well) were evaluated for BBB leakage, BBB tight junction protein expression levels, activation of astrocytes, and microglia density using histological, immunostaining and immunoblotting techniques. We found that caffeine blocked high cholesterol diet-induced increases in extravasation of IgG and fibrinogen, increases in leakage of Evan's blue dye, decreases in levels of the tight junction proteins occludin and ZO-1, increases in astrocytes activation and microglia density where IgG extravasation was present. Chronic ingestion of caffeine protects against high cholesterol diet-induced increases in disruptions of the BBB, and caffeine and drugs similar to caffeine might be useful in the treatment of Alzheimer's disease.

The complete article is available as a provisional PDF. The fully formatted PDF and HTML versions are in production.

Wednesday, April 02, 2008

Kids Fed Lots Of Junk-Food Ads On Saturday

Nine in 10 food ads aimed at kids sell high-fat, high-salt, high-sugar, or low-nutrient foods.

The finding comes from a study of 27.5 hours of children's programs that ran on a single Saturday morning -- May 7, 2005 -- in Washington, D.C. During that time, advertisers inserted more than four hours of ads, half of which marketed food or restaurants to kids.

Ameena Batada, DrPH, of the Center for Science in the Public Interest, and colleagues analyzed the nutritional content of the advertised foods. Restaurant ads were considered to promote unhealthy foods if more than half of the restaurant's children's menu items were high in fats, salt, sugar, or were low in nutrients.The result: Most foods advertised to children are:

High in added sugars (59% of ads)

High in total fat content (19% of ads)

High in sodium (18% of ads)

High in saturated or trans fats

"We found wide discrepancies between what health experts recommend children eat and what marketing promotes as desirable to eat," Batada and colleagues report in the April 2008 issue of the Journal of the American Dietetic Association.

"We found wide discrepancies between what health experts recommend children eat and what marketing promotes as desirable to eat," Batada and colleagues report in the April 2008 issue of the Journal of the American Dietetic Association.

There were some positive things about the ads. Forty-two percent of ads that promoted non-nutritious foods offered health or nutrition messages, too. For example, an ad for Airhead Fruit Spinners fruit-flavored snacks told kids they came "with real fruit flavor and vitamin C-charged crystals."

And 47% of the food ads promoted exercise , such as the Cheetos ad that showed kids wakeboarding after eating the cheese-flavored snack. Moreover, 76% of the ads had explicit health messages, such as the one noting that cereals are only "part of a complete/balanced/nutritious breakfast."

Interestingly, the ads analyzed in the study aired in 2005. That December, the Institute of Medicine found that direct-to-children marketing by junk food and restaurant companies is damaging kids' health . A 2006 study showed that food ads aimed at preschoolers try to build brand loyalty for fast-food restaurants and sugary cereals. A 2007 study found that every day, advertisers beam an average of 21 food-product ads at American pre-teens.

These studies, too, were based on 2005 data. Advertisers say things have changed , and have set up a self-monitoring system. This is the Children's Advertising Review Unit of the industry-funded National Advertising Review Council.

However, in a 2005 letter to the secretary of the Federal Trade Commission -- still prominently featured on the CARU web site -- the group's director notes that it is not in the health business.

"[CARU] was not established to be the arbiter of what products should or should not be manufactured, sold, or marketed to children, or to decide what foods are 'healthy,' or to tell parents or children what they should or shouldn't buy," the letter states. It goes on to note that "food products are not inherently dangerous or inappropriate -- all foods may be safely incorporated into a balanced diet ."

Batada and colleagues suggest that health-message programs launched by food companies and trade organizations may do more harm than good.

"When coupled with foods of poor nutritional quality, health/nutrition and physical activity messages are likely to be misleading and perhaps do more to promote unhealthful eating than to promote health," they write.

In 2005, Batada and colleagues found, every single ad for snack foods, candy, restaurants, beverages, and breakfast pastries promoted high-fat, high-sugar, high-salt, or low-nutrient products. These ads made up 63% of food ads aimed at kids.

Whether this remains true in 2008 remains to be seen -- perhaps as soon as next Saturday morning.

Tuesday, April 01, 2008

Bakery-Cafés Round Out Quick-Serve Portfolios

John Cutter is moving to Denver, Colorado, as soon as he sells his house in Western Massachusetts, but the 63-year-old former CEO of Friendly’s says relocating has nothing to do with early retirement.

Cutter, along with his sons, Jamey and Stephan, formed a family business last October with the purchase of two Mile High City-based Corner Bakery-cafés, a franchise they plan on expanding to meet what they say is an increasing, yet overlooked consumer demand for bistro fare.

“I think it’s providing exactly what the consumers want,” says Cutter. “It has high-quality food, quick service, and the ambience is very warm and friendly. Plus, the check per person is only 7 to $8.”

Cutter’s isn’t the only quick-serve management company moving forward with plans for Corner Bakery expansion, according to P.J. Evans, vice president of franchise development for the Dallas, Texas-based chain.

To wit: Pennsylvania’s Rose Group, which manages 54 Applebee’s restaurants throughout Philadelphia, New Jersey and Maryland, plans to develop 25 Corner Bakery-cafés. Lakewood, California–based WKS Restaurant Corp. operates more than 50 El Pollo Locos in Southern California and has plans to expand Corner Bakery’s reach in Phoenix, Arizona, with 15 stores. And those are just two examples for one brand.

Survey Says…

The aggressive expansion mode at Corner Bakery supports the findings of a recent consumer survey conducted by Technomic, a Chicago-based food industry research and consulting firm.

According to Technomic’s findings, 57 percent of roughly 3,500 respondents said they had never been to a bakery-café. The main reason? No such concepts in their area (48 percent). An additional 28 percent of non-customers said they don’t visit bakery-cafés because they are not familiar with what food items the concept offers.

“We believe this spells significant, untapped opportunity for the already-successful bakery-café segment,” Darren Tristano, executive vice president of Technomic Information Services, said in a prepared statement. “With less than a quarter of non-users citing ‘negative’ factors, such as price or preference, it appears that bakery-café operators’ greatest challenge is simply providing additional access and awareness.”

Both Cutter and Evans concur, saying the consumer is driving the bakery-café category while many restaurant management groups are looking to add these bistro concepts in an effort to balance their portfolios.

“Look at the Mexican chains. You have Chipotle, Baja Fresh and others. Plus, you have the burger chains,” says Cutter, pointing out the inherent competitiveness of other quick-serve and fast-casual segments. “There’s a lot of opportunity to step up and fill that white space with the bakery-café concept.”

“[Operators] are trying to pick up alternative brands to augment existing brands because the consumer is changing,” Corner Bakery’s Evans explains. “They are trying to follow and/or get in front of the customer as best they can.”

Among the consumers who have been to a bakery-café restaurant, 54 percent visited Panera on their most recent occasion, according to Technomic’s survey. The remaining 46 percent had been to a combination of smaller national or regional bakery-café chains. In consumers’ minds, Panera Bread has defined the bakery-café segment and set the standard for what other bakery-café concepts should offer in terms of food, atmosphere, and service.

Officials at St. Louis, Missouri-based Panera declined to comment on the survey findings, but that particular finding comes as no surprise to Corner Bakery’s Evans or Ed Frechette, senior vice president of marketing for Au Bon Pain in Boston.

“For our brand, it’s not a surprise at all because Au Bon Pain tends to be an urban brand or in airports,” Frechette says. “There’s a phrase from new customers we repeat a lot. It’s ‘I had no idea.’ We know our less frequent users think of us as a bakery, while our more frequent users know us more for soups and salads. Many were never aware of the breadth of offerings and the quality of the food.”

Technomic’s research also revealed differences in expectations by varying demographic groups. Among the more interesting findings:

  • Women and younger consumers use bakery-cafés not only as a place to eat but also as a place to socialize with friends. Due to the importance they place on the social aspects of bakery-café concepts, these groups find amenities like soft music, fireplaces, and comfortable armchairs more appealing than other demographic groups;
  • Males and consumers with an annual household income of $100,000 or more find Wi-Fi access to be very appealing. It is likely that these groups are using bakery-cafés as an “office away from the office.”
  • Asian and Hispanic consumers generally place greater emphasis on family dining, which might be one reason why communal tables at bakery-cafés were more appealing to these ethnic groups;
  • Communal tables are more appealing to consumers with an income of $25,000 or less per year which might suggest that some may be using bakery-cafés for special occasions to dine with a group of friends or family members at a lower price point than they would have at full-service restaurants.
Technomic also found that bakery-cafés are gaining in popularity as a breakfast destination, with nearly 18 percent of survey respondents indicating that they most recently visited a bakery-café for breakfast. Portable breakfast sandwiches, baked goods, and new smoothie options are among the breakfast menu offerings most appealing to consumers.

While officials at Corner Bakery and Au Bon Pain say sales have increased across all day parts, Frechette says a bakery-café is somewhat of a misnomer, with the bakery part becoming just one aspect in a slew of offerings.

“We are seeing tremendous growth in breakfast, and we are now offering sides [such as] asparagus and almonds, Brie with grapes and crackers, and chick pea salad that allow people to add onto meals,” he says. “There is a big upside to this trend. Whether you call it a bakery-café or restaurant, that’s where consumers are headed.”