March 2009 Archives

Sherri's idea is a simple and smart one.  And it's unfortunate if funding at the city or county level  produces weeds instead of fresh, organic fruit and vegetables or has government funds going to landscapers and lawn mowers instead of garden planting.

 Last year, as part of my firm's GreenWorks@Work initiative, which focuses on youth and green initiatives, we made a donation to a local elementary school's seeding of an organic garden. You would have thought we funded teacher raises given the response we received.

Gardens at elementary schools is a brilliant initiative that doesn't cost much money. Many white table cloth chefs have started such efforts.  Linton Hopkins of Atlanta's famed Restaurant Eugene and Holeman & Finch, up again this year for the prestigious James Beard Award, started an organic garden at public school, E. Rivers Elementary, which sits in Atlanta's Buckhead neighborhood.  

To Sherri's point, there are probably 10 viable restaurant brands that are within a fig's throw of the school.  Linton knows that not only is it a smart initiative for his brand, but seeing that we both have fourth graders who attend that school, we know they love playing in the dirt.  It's often the first thing they tell us at the end of the day ... "we got to work in the organic garden today and we're growing heirloom tomatoes." 

Gardens and elementary schools is as good as natural peanut butter and organic blackberry preserves on gluten free bread.  Smart businesses know that's the direction we are headed.  But if QSR, fast casual, and even white table cloth, can't fertilize these gardens with small amounts of funding, professional service firms and corporations need to start directing dollars.  After all, who doesn't love playing in the dirt.     


 The Governator and his wife just announced they will be planting a vegetable garden at California's state Capitol before the White House


Their news comes on the heals of Alice Water's interview on 60 Minutes a week ago who has been urging both the White House and California's Capitol to grow produce.  


In my opinion this is great news.  The more awareness that is created for growing food and eating fresh food, the better off this country and our waistlines will be.  This is a topic that should be discussed in schools and with children across the country. 


To NOURISH our Nation is Water's message. She believes and I agree, that if America embraced growing and eating fresh food there would be an end to sickness, obesity, and preserve our environment as well as provide jobs and resources. 

 

 

 

Local food has the cache of bringing affordability together with wholesome products.  Adding the twist of local non-profits contributing to the sustainability of those products only accentuates the meaning of what is trying to be accomplished at The White House.  There are obviously various methods to produce, even mass produce, fresh vegetables and fruits, but attracting a large contingency of local advocates for this undertaking is challenging, but not impossible. 

A partial shift in consumer ideology must take place and, in some circumstances, already has.  The White House is setting the tone, as it should, that small contributions are compiled to make a large impact.  Just look back at the Obama campaign, where the vast majority of the donors gave less than $100.

It will take some time to engage enough people that the idea of what seems like insignificant contributions can play a large role in changing the direction of what we should expect from our local communities. 

Margaret Mead, arguable the most renowned anthropologist of all time, boldly said, "Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever does."

Editor Sherri Daye Scott is thinking big when it comes to QSR leaders, like Subway, adopting local school or community garden projects, ultimately using the local produce generated on their menus. 

No doubt, the White House's own victory garden will inspire many schools and local community groups to pursue their own.  But wouldn't it be more beneficial to partner with a local QSR partner to show them how local sourcing works, from garden to menu? 

At last year's annual meeting of the International Foodservice Editorial Council, we met a local chef operator from Cleveland who is doing an exceptional job with local sourcing and the operational challenges it can bring.  His venue, Crop Bistro & Bar, works with a consortium of local chefs, farmers, artisanal producers and distributors to put seasonal produce on the menu. 

Why couldn't a leading QSR chain take this concept to the next level?  Test it in a couple of markets, like Atlanta.  Work with students at local schools or other community groups to create a workable system that benefits everyone.  A challenge may be finding room in the corporate structure for the local autonomy needed to make this happen, but think of the benefits inherent for everyone. 
CNN's continued coverage of the White House's new victory garden got me thinking about a recent visit I made to Atlanta's Margaret Fain Elementary School. Fain's principal, Marcus Stallworth, is one of those innovative leaders you wish every school possessed. His efforts to improve the health of his students include creating a community garden near Fain's playground.

Last year's severe drought prevented the project from taking off like Stallworth hoped, but a recent bout of steady rainfall might make the difference. Still Fain, like many public schools, is experiencing budget shortfalls. A garden is considered a non-essential when there are so many others items that need purchasing or fixing. But, I've come up with a solution:  A local Subway should adopt Margaret Fain's garden and source a bushel or two of produce from the garden each month.

To my way of thinking it is the collison of two trends: local sourcing and community service. The community goodwill--and marketing awareness--created by the effort would certainly be worth a $100 or so donation. The kids learn firsthand about nutrition, and many underserved communities get access to fresh food.

Imagine The Loop topping its new Asian salad with carrots sourced from local schools. Or Smoothie King using strawberries grown at a Boys & Girls Club. The Pacific Northwest's Grand Central Co. Bakery and Burgerville have proven that through careful planning and the use of LTO offerings, local sourcing can work in limited-service.
 
So am I on to something? I'd be interested to hear what the rest of the QSR Blog team thinks



The Golden Ticket?

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In regards to Sherri's post on IHOP going fast casual....I am not sure this is the ticket. The next thing you know Waffle House will be selling smoothies.

 

I think IHOP did as good a job as any brand reenergizing itself over the last few years but the shift to Fast Casual is a stretch. Fast Casual is about being new and progressive - as good a job as IHOP did reinventing itself they're still International House of Pancakes. - they need to embrace who they are. They found a way to capitalize on their nostalgia and the connection with the past with Gen X'ers like myself, and I believe they should build on this success.

 

Keep in mind that fast casual didn't exist when IHOP was invented so why start now. If they feel the need to be more creative and relevant - play with the menu offering and offer whole wheat pancakes and granola.

First, let me say I hope the fast casual version of IHOP works.  I say that because I can appreciate that they put thought into a regular unleaded version of the original IHOP.  Having read some of the other entries on this subject, I agree that IHIP is not your parents IHOP.  A fast casual version on paper makes sense if you can justify the demographic size because I wouldn't go, but I'm a Cusper ... somewhere between Gen X and Boomer ... a young Boomer if you will.  We loved going to IHOP because it was pretty good breakfast into the late hrs, whether you were behaving like an adult or something resembling one.  But IHOP Cafe, well that's all about Gen Y and as a Cusper, I'm not going.  But then again, maybe the reason they created IHOP Cafe is because I stopped going a few years ago.  

So let's say you can make the demographics case for IHOP Cafe.  Well, then the marketing piece will be critical.  This is a brand for Gen Y so it needs to take on a Gen Y persona.  This is not an ad effort, but a social media effort.  Now I can see potential today more than ever ... with 170 million Facebook Users and 80,000 people meeting a month with MeetUps, Ning, MySpace and on and on.  Suddenly IHOP Cafe is looking like the new brick and mortar hangout for the viral at heart.  

This may very well be IHOP's Second Life.  Think I'll invest in an island.

Hi, I'm Chris Morocco and I have a little bit of experience calling plays from my days as a college quarterback at Clemson University's in the late 80s.  With two decades of business entrepreneurship and a particular affinity for building brands, I am in a position today as CEO of Petrus Brands, to articulate the game plan for two promising concepts, Shane's Rib Shack and Planet Smoothie. I have lined up on all sides of business -- financial, capital, branding and marketing, real estate and business development and it has helped me develop a 360 degree perspective for running a franchise company.

 

 I plan to share my thoughts from the perspective of an entrepreneur, a franchisor and a franchisee with emphasis on the importance of creating a vision for your company, aligning the right talent to carry out that vision, to put in place an efficient and effective infrastructure and to run your business while also raising a family. I am sure my contributions will inspire debate so let's mix it up.  

As reported in editor Sherri Daye Scott's blog this week, Dine Equity, parent company to IHOP, is experimenting/testing a fast-casual concept, called the IHOP Cafe, in Texas. 

Comes as no surprise, really.  These days, all of us are well advised to take a fresh look at who we are, what we sell and identify how we maintain relevancy in an ever-changing world.  Marketing columnist Chris Wolf, who experienced the test concept first-hand, felt it was a definite overture to the 18-25 year-old market.  With its urban feel and more innovative menu items, it's most definitely not the IHOP of your parents. 

The 18-25 year-old group may, indeed, be a fickle one, but it's clear they respond to companies that make an effort to understand their wants and needs.  Think Taco Bell and 4th meal occasions.  Which makes me wonder, if the new cafe concept survivies, will they extend hours of service to better match the dining habits of that demographic? 

Smaller concepts also play to the sustainability angle.  As younger consumers scruitinize the actions of companies more and more, they will be looking to see the ways in which those companies are preserving and extending the envionrment they're inheriting.  Concepts that offer smaller footprints, higher energy efficiency and other environmentally friendly policies are destined to fare well with this group. 
This inquiring mind wants to know, not only what you're thinking, but what you're doing these days to succeed.  My name is John Scroggins and I direct integrated communications planning for NOBLE, a national brand-building agency headquartered in the Midwest.  As such, I rely on a variety of sources to feed me (no pun intended) with key research and consumer insights so I can craft the strongest communication plans possible. 

Each week, I'll touch on a relevant QSR topic or two and take a look at how it relates to what's top of mind with your customers.  And I really would like to hear what you're thinking, what you're doing and how you're succeeding.  It's all about 2-way conversations and peer-to-peer validation.

I look forward to many lively exchanges in the future. 
A clean, well-lighted place with a table for one, preferably in the corner with a nice people watching view, a bottle of petit syrah, some warm bread and a good book ... is there anything better?  Well, it appears at least twice a week I'll be trading in the book for my Mac to pen a few blog entries about my perspective, any and all things restaurant, franchisee, food, beverage, marketing, branding, technology and public relations which is my day job.  

As the principal of a public relations agency -- Trevelino/Keller -- immersed in lifestyle and specifically food and beverage, as well as green initiatives and technology breakthroughs (in my spare time I'm an architectural and real estate junkie) I'll find little that is off my radar to lend a bit of suggestion, input, direction, commentary and debate.  Don't get me started on bad restaurant design.

Looking forward to the conversation.  

Dean Trevelino  

The hunt for POS

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I'm going through the evaluation process for a new POS system at a restaurant that I'm currently building.  Aren't I lucky!

Its been a while since I've gone through this and I'll be happy when its over.  Selecting software is a very tedious task.  Figuring out all your requirements (it's much harder than you think), sitting in on SALES demos, evaluating the software, weeding through all the fluff, etc.

Of course, every vendor tells you how great their software is, how its better than the rest, etc, etc.  But at the end of the day, they all basically do the same thing.  Some have options that others don't, some do things differently, and some look nicer than others.

So how do you choose?  Is it based on price?  Features?  Technology?

I'll be sure to update you with things as they progress... stay tuned.

IHOP, that classic family favorite, has debuted a coffeehouse-style spin off in - what one would have to assume - is an attempt to draw a younger crowd. Don't know for sure though, since even my "connections" are being tight-lipped about the concept.

So why not just renovate the existing stores?

Their steady stream of LTO's seems to have kept the public coming in enough to do pretty well during this recession.

They've probably noticed that
Panera and Chipotle have been doing relatively well - perhaps because a smaller store mean lower overhead and labor, which can make or break even the best concept in a weak economy.

Not only that, but fast-casual formats appeal to a younger crowd who have more money to burn than older customers with families and mortgages.

Younger urban-ites are also looking for someplace to hang out. They prefer fresh, hip casual places to the more family-oriented restaurant experience.

DineEquity isn't the first to try to drum up business by offering a mini-me version of itself. Denny's has been testing Denny's Fresh Express in some of its restaurants in Texas, with options like breakfast sandwiches to go.

After reading
Sherri Daye Scott's blog post on the new IHOP Cafe earlier this week, I reached out to my network to hear what their initial thoughts were.

The responses I got back were mixed, nearly half don't believe that IHOP can differentiate themselves from the other coffee cafe's or create a compelling enough reason, other than free Wi Fi, for people to keep coming back after the honeymoon.

DineEquity recently announced that it is testing a concept called IHOP Cafe which is a scaled down version of the full service stores we are all so familiar with seeing.  From a real estate perspective, this may be the most genius method of creating value without a large capital infusion from the outset. 

However, it is understood that with a smaller store, one will most likely generate smaller sales.  So why would DineEquity want smaller sales now?  Because they'll take what they can get!!!

The concept seems to target a younger demographic that is looking for quicker and sleeker breakfast options; think Starbucks with pancakes.  But will a strip mall support the traffic that the concept is currently operating from?  Only time will tell, but at least its a chance for smaller operators to align themselves with the big boys. 

Not having a free-standing QSR will allow IHOP Cafe to move quickly into markets with smaller capital investments.  Not having to go through the permiting and cosntruction process will allow the operators the chance to get open faster. 

I'll have to use a big "?" on the concept IHOP is rolling out. 

Really, who doesn't like whipped cream with their pancakes?

 

QSR Real Estate

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Welcome to the Real Estate portion of the new QSR Blog.  I'm David Sobelman, Executive Vice President for Calkain Companies, a national real estate investment brokerage firm that focuses on single-tenant, net lease investments.  QSR concepts are typically interested in the real estate attributes of their businesses and this blog will focus on those. 

 

We're excited to have the platform of working directly with QSR magazine and encourage you to respond with your questions and comments.  Please feel free to submit ideas to me directly, but there are obviously a plethora of discussion points in today's market. 

 

I look forward to hearing from you.

 

Dave

In times of economic downturn, most businesses cut off or sell all non-core assets and focus on their core business.  Well, most do...

DineEquity Inc., owner of IHOP seems to be bucking the trend with the opening of their new concept, IHOP Cafe.

I'm not sure what to make of this.  I must admit, I'm a bit confused why they would launch secretly.  If I was launching a new concept, I'd probably want to let the world know.  Maybe it's just a small test to gauge consumer feedback?

Regardless, feedback seems to be mixed.  My initial thoughts are that we've already seen this approach from McDonald's with mixed results, so what makes IHOP think they can do this better?

Are they looking to be a replacement for a McDonald's Cafe (in areas where they don't exist) or would they want to go head to head?

What is it about them that makes them stand apart from the competition?

I do however like the free wifi... why doesn't everybody do this?  Even Starbucks changed gears and decided they should no longer charge for wifi. 

To me, if there is no free wifi, I'm not interested in spending much time there.

At least the folks at IHOP Cafe got one thing right :-)

Food + Technology

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Two of my favorite things have come together at QSR Magazine... food and technology.

Food of course by way of all things related to the QSR world, and technology by way of the new blog here at qsrmagazine.com/blog.

I hope to share insights and thoughts in the world of all things QSR.  Hopefully I can provide  good info through some of my experiences in the world of being a restaurateur (including my current experience opening a new restaurant) as well as my experience working with other businesses in helping them improve operations, increase sales and reducing costs.

Over the past 10 years, I have been involved in a number of different restaurant concepts and while I can't say I've seen it all, I have certainly seen a lot and have a lot of great stories to share.

So stay tuned for some interesting thoughts and feel free to share your thoughts/comments as well.

Events that shape the quick-service industry occur at breakneck speed. To ensure we keep up with that pace, QSR magazine is jumping into the blogging world. Assisting in our quest to bring you real-time analysis of quick-service events, news, and trends is a team of industry insiders, including:

Each of us is committed to posting, at least twice a week, our take on happenings that impact your business. Expect to read lively and timely discussions of everything from new menu items to personnel changes. If it matters to quick-service, we'll be talking about it here. And consider this space yours, as well. Let us know what you want to read more--or less--about. We aim to please.

So welcome! Come back again and again.  
While recently traipsing through Texas on a food scouting trip, QSR marketing columnist Chris Wolf came across an interesting find in San Antonio, the IHOP Cafe.
 
In an e-mail to me, Wolf described the place as "coffeehouse, fast casual" and forwarded a review from Urban Spoon. Less than a week later, new QSR writer Peter Romeo also sent a note telling me about the new concept. "Check out ihopcafe.com," Romeo wrote. "Looks as if IHOP's trying a qsr variant."

Interest adequately piqued, I put my go-to news writer, Robin Hilmantel, on the case, asking her to track down all she could about IHOP Cafe. Ace reporter that she is, Hilmantel jumped on the job, only to be stymied by IHOP parent company, Dine Equity. It seems QSR was scooped by CNNMoney.com and Dine Equity is now media shy.

So with Dine Equity doing its best In-N-Out impersonation, we're left only with Wolf's impression of the concept: "It probably has service," he wrote, "but it's a very small footprint ... more like an Au Bon Pain. Reminds me of the updating work going on with TCBY to try to revive its brand with cool, trendy décor and menu updates a la Pinkberry.

I'd love to see the thing for myself. The cafe is not the first time a casual brand has moved into quick-service. P.F. Chang's successful rollout of Pei Wei instantly comes to mind. But IHOP has spent significant funds over the last few years developing and promoting its to-go business. Will a fast-casual version of the breakfast spot cannibalize those hard-earned sales?

Over the last few years, gourmet-quality chocolate has crossed over into the consumer mainstream and is now enjoying unprecedented popularity, so much so that a menu without chocolate is one with a gaping hole.

 

"Chocolate is an affordable indulgence,"

(http://www.qsrmagazine.com/articles/features/126/hautechocolate-1.phtml) says Jason Katzman, head of bakery for Sara Lee Foodservice. "Its small size allows you to have a luxury experience but at a value standpoint."

 

Chocolate on a menu allows restaurants to take advantage of the public's desire for comfort food, but it also appeals to the consumer who knows that dark chocolate has health benefits as well.

 

If you already have chocolate on your menu, you can make it more appealing by including the percentage of cocoa in the menu to boast its health benefits, talking about its fair trade or local sources, or naming it with a creative brand-enhancing story.

 

Putting a fresh spin on traditional favorites, like the molten chocolate cake, allows restaurants to reinvent it with flavors that enhance their brand. The use of pairings like salty and sweet, sweet and spicy, or tangy and sweet, or creating a signature dessert is another way to bolster the brand's appeal.

 

Other ways to include chocolate on your menu without costing a lot of money would be to offer mini-desserts or sides, or to have the option of sauces, dips, or drizzles with fruits, pretzel rods or cookies. (A sugar-free version would be great for diabetics.) Or include it on the drink menu as a chocolate martini, hot cocoa, or creative shakes.  

 

Keep your restaurant's demographics in mind though, since young adults (18-34 years old), the affluent, and women are the ones particularly attracted to the chocolate trend.

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