School Hit With $15K Fine for Prohibited Beverage Sales

Davis High school in Salt Lake City was recently fined $ 15,000 for selling carbonated beverages from its vending machines during lunch hour, reports local station KTVX. The
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Restaurant News Jack in the Box: Reimaging drove 2Q sales

Reimaging and improved service initiatives boosted second quarter same-store sales at Jack in the Box Inc., but margins continue to be challenged by high commodity costs.

San Diego-based Jack in the Box on Wednesday reported net earnings of $ 21.6 million, or 48 cents per share, for the April 15-ended quarter, compared with $ 6.8 million, or 13 cents per share, in the year-earlier quarter.

Consolidated revenue rose 0.3 percent to $ 506.6 million, compared with $ 505.1 million for the year-earlier quarter.

Jack in the Box saw same-store sales at company-owned locations rose 5.6 percent, reflecting a 3.1-percent increase in traffic and a 2.5-percent increase in average check, the company said. Same-store sales at franchise locations rose 3.6 percent.

At sister brand Qdoba Mexican Grill, same-store sales grew systemwide by 3 percent, rising 3.8 percent for company-owned units and 2.2 percent among franchise locations.

Linda Lang, Jack in the Box Inc.’s chair and chief executive, said improvements the company has been making over the past year at Jack in the Box have been taking hold. Efforts have included the upgrade of core menu items, a recently completed reimaging program, and efforts to improve service.

The company, for example, has shaved 30 seconds off of speed-of-service rates, which has helped boost sales during the time-sensitive dayparts of breakfast and lunch, Lang said.

Jack in the Box also improved its market share, Lang said, despite aggressive couponing by “a big competitor who is trying to make a resurgence.”

RELATEDJack in the Box promotes COO Leonard Comma to president

Quoting data from research firm The NPD Group, Lang said Jack in the Box’s same-store sales growth exceeded trends for the quick-service sandwich segment during the quarter. She credited the chain’s promotion of bundled meals, which have favorable margins, rather than an emphasis on coupons.

Still, the company said this year it would look at ways to cut costs within its overhead structure, including possible opportunities for outsourcing, restructuring certain functions and workforce reductions.

During the second quarter, the company reported restructuring charges of $ 1.5 million, or about 2 cents per share, related to severance costs for positions that were eliminated.

Commodity costs were up about 3 percent during the quarter, and the company said inflation will be a continuing challenge – primarily for beef, which makes up about 20 percent of the company’s commodity spend. Overall, however, the company lowered its inflation projection for the year, saying commodity costs would likely be up 3 percent to 4 percent in 2012. Previously, the estimated increase was 5 percent.

Jack in the Box Inc. acquired 25 franchised Qdoba locations during the quarter for $ 33 million. Seven new Jack in the Box locations opened, three of which were franchised. The Qdoba chain added eight restaurants, including six franchised locations.

At the end of the quarter, the company operated, licensed or franchised 2,242 Jack in the Box and 605 Qdoba locations.

For the third quarter, the company projected same-store sales growth of 3 percent to 4 percent for Jack in the Box company-owned units and a 3-percent to 4-percent increase for Qdoba systemwide. For the fiscal year, same-store sales are expected to rise 3.5 percent to 4.5 percent for Jack in the Box corporate units; the same increase is expected for Qdoba systemwide.

Earnings per share are expected to range from $ 1.28 to $ 1.50, excluding additional restructuring charges for the second half of the year.

Jack in the Box is continuing its ongoing refranchising plan and expects to sell 80 to 120 locations to franchisees before the end of the year. The chain will open 30 to 35 new stores, including about 15 corporate units.

About 60 to 70 new Qdoba restaurants are planned for the year, of which 25 to 30 will be company owned.

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

Nation’s Restaurant News – News

Normally your average bear chows down on a pot of honey, but this hungry fellow decided that pizza was on the menu for a change. Breaking into Fat Tony’s pizza joint in Whistler, British Columbia, the grown black bear helped himself to four whole freshly cooked pizza’s while customers rushed to safety on Monday this week. (26th September 2011) Making its way through a vegetarian and cheeseburger pizza among his four bear sized portions, the wild animal was filmed by excited passers-by from behind the safety of the stainless steel counter. Having let himself in through the back door close to the pizza shops 10pm closing time, the bear eventually was shooed away by animal control only after he had filled his appetite. music by incompetech.com

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Restaurant News Carl’s Jr., Hardee’s parent seeks $100M IPO

CKE Inc., parent company to the Carl’s Jr. and Hardee’s quick-service restaurant chains, registered late Thursday for a $ 100 million initial public offering of stock.

In filings with the U.S. Securities and Exchange Commission, the Carpinteria, Calif.-based company said it intends to list its stock on the New York Stock Exchange under the symbol “CK.” Net proceeds would be applied toward debt and for general corporate purposes, the company said.

Both the size of the offering and the estimated offering price have not been determined.

The two restaurant chains are owned by Columbia Lake Acquisition Holdings Inc., an affiliate of private-equity firm Apollo Management, which acquired the brands’ then parent company, CKE Restaurants Inc. for about $ 1 billion, including debt, in 2010. Prior to that deal, CKE Restaurants had been a public company for 29 years.

Apollo kept the company’s management team, with current chief executive Andrew Puzder.

CKE is not the only restaurant company looking at an IPO this year. Other chains that have filed for IPOs include the parent companies of Outback Steakhouse, Joe’s Crab Shack and Del Frisco’s Double Eagle Steakhouse. Burger King is also looking to return to the New York Stock Exchange.

RELATED: Restaurant IPOs are heating up

For its fiscal year ended Jan. 30, CKE reported a net loss of $ 6.3 million, compared with a loss of $ 35.4 million the prior year. Corporate revenue totaled $ 1.3 billion, a decrease of 3.8 percent compared with fiscal 2011.

At the end of the fourth quarter, CKE operated or franchised 3,243 restaurants, including 1,313 Carl’s Jr. units and 1,921 Hardee’s restaurants in 42 states and 25 foreign countries. The company also holds nine locations of secondary brand Green Burrito.

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

Nation’s Restaurant News – News

STORM REPORT NATIONAL WEATHER SERVICE BUFFALO NY 1:05 PM EDT FRI JULY 31, 1987 …STORM SURVEY OF THURSDAY’S TORNADO NEAR BUFFALO… EARLY THIS MORNING REPRESENTATIVES FROM THE NATIONAL WEATHER SERVICE TOURED THE BUFFALO SUBURB OF CHEEKTOWAGA THAT WAS STRUCK BY A TORNADO THURSDAY AFTERNOON JULY 30, 1987. INITIAL TOUCHDOWN OF THE FUNNEL WAS LOCATED AROUND ELKHURST AND CEDAR GROVE ROADS ABOUT 2 MILES SOUTHWEST OF THE BUFFALO AIRPORT. DAMAGE VIEWED AT 32 FERNWOOD INDICATED AN F1 TORNADO – ESTIMATED WIND SPEED OF 73 TO 112 MPH. DAMAGE PATH EXTENDED SOUTHEAST FOR ABOUT 1/4 MILE FROM THE INITIAL TOUCHDOWN WITH A WIDTH OF THE PATH OF 75 TO 100 FEET. FROM GENESEE STREET TO THE THRUWAY FOR ABOUT 1/4 MILE LITTLE DAMAGE WAS OBSERVED. SIGNIFICANT DAMAGE BEGAN AGAIN AT PINEHURST AND WOODBINE JUST EAST OF THE THRUWAY AND CONTINUED FOR ANOTHER 1/4 MILE. AS THE TORNADO CROSSED CHEROKEE DRIVE IT GREW IN STRENGTH. GARAGES WERE LEVELED ON THE SOUTH SIDE OF CHEROKEE DRIVE AND ROOFS WERE BLOWN OFF HOMES AT 104 MIAMI AND 849 AND 852 GEORGE URBAN. DAMAGE PATH WIDTH AT THIS POINT WAS ABOUT 175 FEET. BASED ON THE DAMAGE…TORNADO STRENGTH PROBABLY REACHED F2 AT THIS TIME…113 TO 157 MPH. TREE TOPS WERE SKIMMED FOR ABOUT 1/4 MILE UNTIL THE TORNADO HIT THE PUTT PUTT GOLF COURSE ON UNION ROAD. A STRUCTURAL STEEL BILLBOARD WAS COMPLETELY BENT TO THE GROUND AND DEBRIS WAS BLOWN ACROSS THE STREET TO THE HOLIDAY SHOWCASE RESTAURANT. PART OF THE ROOF WAS BLOWN OFF THE RESTAURANT AND SUPPORTS CAVED IN
Video Rating: 4 / 5

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Top Four Sports/Entertainment Contractors Totalled $4B in 2011: Report

The four major sports and entertainment industry foodservice contractors generated almost $ 4 billion from the industry in 2011, according to the Sports & Entertainment Venue
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Recent News USDA Revises Q&A on Meal Pattern

USDA has released a revised memo entitled: Questions & Answers on the Final Rule, “Nutrition Standards in the National School Lunch and School Breakfast Programs.” This guidance addresses
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Restaurant News Analyst: Starbucks’ Evolution Fresh concept poised for growth

A second location of Starbucks’ new Evolution Fresh juice concept is in the works in the Seattle area, according to one Wall Street analyst who sees the retail outlet as a “significant opportunity” for the coffeehouse chain.

A spokeswoman for Starbucks on Wednesday declined to confirm the timing or location of the second Evolution Fresh, but she reiterated the company’s plans to grow the juice bar and restaurant concept in general.

The first Evolution Fresh opened in March in the Seattle suburb of Bellevue, Wash.  After reporting the company’s second quarter results, Howard Schultz, Starbucks’ chair, president and chief executive, said consumer response to the concept has been positive and early lessons from the first location will be applied to plans for future expansion.

Seattle-based Starbucks Corp. acquired the Evolution Fresh brand in November 2011 in an effort to capture its share of the estimated $ 3.4 billion juice market. Evolution Fresh is known for its use of high-pressure processing, which essentially pasteurizes juice without using heat, preserving taste and nutrients.

Starbucks is incorporating Evolution Fresh bottled products in its stores and as part of the company’s growing consumer packaged goods, or CPG, line in other retail outlets. Schultz sees the juice platform as a billion dollar opportunity for Starbucks.

Analyst Mark Kalinowski of Janney Capital Markets said in a report Wednesday that he had visited the Evolution Fresh in Bellevue and he was “incredibly impressed,” saying the opportunity to expand the juice brand is more significant than he thought previously.

Though the primary opportunity will come from bottled juices sold at Starbucks and at grocery stores, Kalinowski said, “We also view the Evolution Fresh standalone retail concepts as a significant opportunity for the company going forward.”

Located in an upscale shopping center next to a Starbucks unit, the Evolution Fresh in Bellevue offers bottled juices, but also juices “on tap” that can be custom-blended.

He described a section devoted to food as similar to Chipotle Mexican Grill, with customers walking down a line to customize their order.

Kalinowski noted a large bottled juice display that advertised “Juicing Made Easy,” with various packages for those following trendy juice cleanse diets. The section also included grab-and-go food offerings, such as wraps, sandwiches and other treats.

Kalinowski said he could envision a smaller version of the display being found in Starbucks locations over time.

“All in all, we left the store very enthusiastic as to the prospects for Evolution Fresh,” Kalinowski wrote.

“We would note that the juices are much higher quality than any juices currently sold by Starbucks, and we view the Evolution Fresh brand as well-positioned to grab market share in the health-and-wellness segment,” he continued. “We also view the Evolution Fresh retail concept as a viable standalone concept, although we believe that Starbucks will most likely leverage their Starbucks-brand asset base to develop the Evolution Fresh brand.”

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

Nation’s Restaurant News – News

These commercials aired on NBC on February 20th, 1982 1. Olympia (This is what happens when you employ a crazy old hobo to look after a beer factory) 2. TV Spot for “Vice Squad” (Looks hardcore) 3. True Value Hardware (I want a squishy brown vinyl toilet seat now) 4. “Saturday Night Live” Commercial Bumper 5. Promo for “Wedding On Walton’s Mountain” 6. Los Alamitos Night Harness Racing (I love the incredibly complex animation LOL) 7. Bell System 8. News Center 4 Promo 9. American Motors 10. Backwoods Smokes (Incredible! I think the girl is Candy Clark, who I met at a classic car show a few years ago) 11. Sambo’s (This once popular chain was bankrupt at this point and would be dead by the end of ’82, in large part due to backlash over its name. The original restaurant in Santa Barbara is the only one left. BTW, these are insanely low prices, even when you account for inflation) 12. Datsun 13. Suzuki GS 1000S Katana 14. Ultra Brite (OK, the female mascot is just amazing. Also, I just love commercials where women are praying for a little sexual harassment at the workplace) 15. Volkswagen Quantum 16. Datsun 210 (She reminds me of Lucille from “Arrested Development”) 17. Natural Light (Good God! That Leprechaun is horrifying! Kill it with fire!) 18. Bob’s Big Boy (I’ve never actually eaten at one of these) 19. TWA Ambassador Class (With Wilt Chamberlain and Kareem Abdul Jabarr) 20. Promo for “Rock & Roll Dreams”, “CHiPs” and “The Capture Of Grizzly Adams” (This just might be
Video Rating: 5 / 5

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Restaurant News Analyst: Starbucks’ Evolution Fresh concept poised for growth

A second location of Starbucks’ new Evolution Fresh juice concept is in the works in the Seattle area, according to one Wall Street analyst who sees the retail outlet as a “significant opportunity” for the coffeehouse chain.

A spokeswoman for Starbucks on Wednesday declined to confirm the timing or location of the second Evolution Fresh, but she reiterated the company’s plans to grow the juice bar and restaurant concept in general.

The first Evolution Fresh opened in March in the Seattle suburb of Bellevue, Wash.  After reporting the company’s second quarter results, Howard Schultz, Starbucks’ chair, president and chief executive, said consumer response to the concept has been positive and early lessons from the first location will be applied to plans for future expansion.

Seattle-based Starbucks Corp. acquired the Evolution Fresh brand in November 2011 in an effort to capture its share of the estimated $ 3.4 billion juice market. Evolution Fresh is known for its use of high-pressure processing, which essentially pasteurizes juice without using heat, preserving taste and nutrients.

Starbucks is incorporating Evolution Fresh bottled products in its stores and as part of the company’s growing consumer packaged goods, or CPG, line in other retail outlets. Schultz sees the juice platform as a billion dollar opportunity for Starbucks.

Analyst Mark Kalinowski of Janney Capital Markets said in a report Wednesday that he had visited the Evolution Fresh in Bellevue and he was “incredibly impressed,” saying the opportunity to expand the juice brand is more significant than he thought previously.

Though the primary opportunity will come from bottled juices sold at Starbucks and at grocery stores, Kalinowski said, “We also view the Evolution Fresh standalone retail concepts as a significant opportunity for the company going forward.”

Located in an upscale shopping center next to a Starbucks unit, the Evolution Fresh in Bellevue offers bottled juices, but also juices “on tap” that can be custom-blended.

He described a section devoted to food as similar to Chipotle Mexican Grill, with customers walking down a line to customize their order.

Kalinowski noted a large bottled juice display that advertised “Juicing Made Easy,” with various packages for those following trendy juice cleanse diets. The section also included grab-and-go food offerings, such as wraps, sandwiches and other treats.

Kalinowski said he could envision a smaller version of the display being found in Starbucks locations over time.

“All in all, we left the store very enthusiastic as to the prospects for Evolution Fresh,” Kalinowski wrote.

“We would note that the juices are much higher quality than any juices currently sold by Starbucks, and we view the Evolution Fresh brand as well-positioned to grab market share in the health-and-wellness segment,” he continued. “We also view the Evolution Fresh retail concept as a viable standalone concept, although we believe that Starbucks will most likely leverage their Starbucks-brand asset base to develop the Evolution Fresh brand.”

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

Nation’s Restaurant News – News

These commercials aired on NBC on February 20th, 1982 1. Olympia (This is what happens when you employ a crazy old hobo to look after a beer factory) 2. TV Spot for “Vice Squad” (Looks hardcore) 3. True Value Hardware (I want a squishy brown vinyl toilet seat now) 4. “Saturday Night Live” Commercial Bumper 5. Promo for “Wedding On Walton’s Mountain” 6. Los Alamitos Night Harness Racing (I love the incredibly complex animation LOL) 7. Bell System 8. News Center 4 Promo 9. American Motors 10. Backwoods Smokes (Incredible! I think the girl is Candy Clark, who I met at a classic car show a few years ago) 11. Sambo’s (This once popular chain was bankrupt at this point and would be dead by the end of ’82, in large part due to backlash over its name. The original restaurant in Santa Barbara is the only one left. BTW, these are insanely low prices, even when you account for inflation) 12. Datsun 13. Suzuki GS 1000S Katana 14. Ultra Brite (OK, the female mascot is just amazing. Also, I just love commercials where women are praying for a little sexual harassment at the workplace) 15. Volkswagen Quantum 16. Datsun 210 (She reminds me of Lucille from “Arrested Development”) 17. Natural Light (Good God! That Leprechaun is horrifying! Kill it with fire!) 18. Bob’s Big Boy (I’ve never actually eaten at one of these) 19. TWA Ambassador Class (With Wilt Chamberlain and Kareem Abdul Jabarr) 20. Promo for “Rock & Roll Dreams”, “CHiPs” and “The Capture Of Grizzly Adams” (This just might be

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Restaurant News Cambria Suites revamps menu

Cambria Suites, a seven-year-old hotel chain in the “lower-upscale” segment that also includes Courtyard by Marriot and Hilton Garden Inn, is rolling out a completely new food and beverage program in an attempt to bring food costs under control and improve its popularity among guests.

The program was introduced to the 18-unit, all-franchised chain on May 16 in Las Vegas at the national convention of Choice Hotels International, Cambria Suites’ parent company. The new fare moves away from Cambria’s original focus on upscale, better-for-you items and instead embraces American comfort food, with a focus on hamburgers, sandwiches and shareable starters.

Consulting chef Michael DeMaria of M Culinary Concepts in Scottsdale, Ariz., has also developed regional specialties for the program.

“We’ve changed our F&B program to reflect the consumer trends we’re seeing and what people desire to eat while they are on the road. And, we’ll be able to provide this amenity to consumers while also generating profits for the hotel owners,” said Cambria Suites senior vice president Michael Murphy.

Previously, some Cambria suites operators reported food costs at untenable rates of 60 percent or more. At a meeting to develop the new program earlier this year, franchisees complained of unnecessary costs in the existing system, such as express-delivered breakfast sausages and a ban on fountain guns (all soda at the hotels was previously sold in cans or bottles).

Fountain guns will be installed under the new program and are already in place at the two test locations in Columbus, Ohio, and Noblesville, Ind. A ban on deep fryers has also been lifted, and fryers will be installed in existing Cambria Suites where possible, as well as in future locations.

At existing locations, a full retrofit will cost $ 70,000-$ 80,000, Murphy said.

The product of a yearlong research and development effort, the new program, which includes new kitchen, bar and storage equipment as well as new china, silverware and uniforms, is scheduled to be installed in the system’s remaining properties by fall of this year.

New menu items introduced throughout the system include:

Cambria American Angus Burger: A half-pound Angus burger, two pieces of American cheese, iceberg lettuce, tomato, red onion, dill pickle slices and Thousand Island dressing on a brioche bun, for $ 9.

Green Chile & Egg Angus Burger: A half-pound Angus burger, diced green chile, two pieces of pepper Jack cheese, an over-hard fried egg, cilantro and avocado mayonnaise on a brioche bun, for $ 9

Chicken Cutlet on Ciabatta Bun: A 6-ounce chicken breast, two pieces of provolone cheese, tomato, balsamic vinaigrette, romaine lettuce, red onion, roasted red peppers, roasted onions and garlic mayonnaise on a square ciabatta bun, for $ 8.

Chicken Lollipops with Buffalo Bleu Cheese Dipping Sauce: Eight fried chicken nuggets served on lollipop sticks, for $ 10.

Pretzel Lollipops with Beer & Cheddar Fondue: Eight warm pretzel bites with beer-cheddar dipping sauce, served on lollipop sticks, for $ 6.

Seared Skirt Steak with Sautéed Mushrooms and Spinach, Morel Sauce, and Basil Pesto: An 8-ounce skirt steak with sautéed mushrooms, blanched spinach, morel sauce, sliced scallions and pesto, for $ 17.

Orecchiette Pasta with Classic Meat Bolognese and Parmesan Cheese: A 6-ounce portion, topped with chopped parsley, for $ 13.

Regional specialties are also available as options for any Cambria Suites property. Among the regional specialties are Carolina BBQ Glazed Pork Ribs served with two of the following three sides: coleslaw, mashed potatoes and sautéed corn. The dish, which was developed for the Raleigh, N.C., property, costs $ 21. The Travers City, Mich., location features Lake Erie Yellow Perch Fish and Chips with French fries or tater tots, tartar sauce, coleslaw and lemon wedges, for $ 16.

Cambria Suites also has introduced a program to offer local beer as appropriate.

A new dessert line, called Cambria Sweets, features cheesecake lollipops served with strawberry sauce and chocolate brownie lollipops with caramel sauce for $ 8. Ice cream is also available for $ 3 per scoop.

Murphy said that the hamburgers are the best-selling items at the test sites in Columbus and Noblesville, which implemented the new F&B program March 11-19. Although concrete figures aren’t in yet, he said sales were “way up” over the prior six weeks and over the same time last year.

The new program requires cooks with a higher skill set than the previous menu, he added. That menu’s most popular item was a spinach artichoke dip that was delivered to the hotels frozen and heated in the microwave. Guests at the Noblesville location stopped ordering it once the new menu was in place, according to Murphy.

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

Nation’s Restaurant News – News

“I sat in a restaurant in Spain. And the violinist insisted on playing YESTERDAY right in my ear.” [John Lennon]

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Recent News The Surprising Gap Between What Operators And Customers Think About Coffee

This is a special message from Nestlé Professional Vitality.
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George Mason Issues RFP for Dining Services

George Mason University has announced its intention to issue an RFP to provide dining services at its campus locations. Mason Dining Services is managed
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