Restaurant and Food Service Blog

I am shocked to hear that Craig Miller was given the boot at Ruth’s Chris. After the company had a bang out 2005 and started 2006 with great numbers, The company made a not so great move in acquiring Mitchells. He will not be getting his 2007 bonus. Ouch!

I will be surprised to see where the venerable steak house goes to find a new CEO. The fine dining sector has be taking a beating right now with food costs through the roof and every households’ disposable income shrinking. Craig did a great job in the transition post Katrina in moving the company from Louisiana to Orlando. But I think that Craig’s dismissal may be a sign of things to come if some of these restaurant companies don’t start thinking more nimbly.

A good read is Lane Cardwell of Chain Leader. In his blog posting from last week, The Beatings Will Continue (http://www.chainleader.com/blog/180000418/post/1110025311.html?nid=3974) he talks about how things had better get good now or no one will be safe. It looks like now a chairman/CEO is not safe either!

read more | digg story

Peter Romeo in his blog – The Scoop – talks about a similar story (http://nrnfoodserviceblog.blogspot.com/2008/04/customers-
sound-off.html). One company that is getting it is getting it right is Chipotle. In their Kent, Ohio store they believe that a norovirus infected as many as 400 patrons. The company went ahead and offer all of those sick that they would reimburse them for their medical bills. Not that is doing the right thing in my book.

With the increasing costs of food, I am not surprised that restauranteurs are cutting costs and trying to get away with it. Don’t they know that now is the time to win customer loyalty more than ever. Once you start to skimp and your customers start to be aware of it, you will soon find your restaurant less busy.

With this perfect storm of increasing costs and a soft economy, it will be the smarter companies that put customers first that will come out on top.

read more | digg story

New corporate chef at Baskin Robbins. Stan Frankenthaler has a long past into food and his new foray into the QSR world after being in the fine dining sector for so long is an interesting twist.We will have to see what new menu items he will be bringing to BR!With Dunkin Brands making a huge push to open 10,000 units by 2010, I find it interesting that they are bringing in someone like Stan. This is a person who has a ton of fine dining background, but is he going to be able to really bring his game to the QSR world. We have seen a couple of people do it such as Zack Caulkins at Quizno’s, but so many of these corporate chefs have been groomed in this area. Maybe this is a sign of things to come.read more | digg story

LOS ANGELES (AdAge.com) — “Howard Schultz insists he’s returning Starbucks to its roots, but he’s doing it with mass-marketing tactics once anathema to the original brand. The company is estimated to have nearly doubled its marketing spending to $100 million, and last week it began an aggressive coupon program unlike anything in its history, raising questions about its turnaround strategy.”As a former Starbucks partner, I am shocked to see that the company is going the route of couponing. During my time at the Siren, it was always about the quality of the product and there was never a reason to have to discount the value of a quality cup of joe. But it looks like a desperation move by Schultz and the gang there.What I find more interesting is My Starbucks website – an interactive blog site where customers can voice their opinions to the company. In a telling statement of the state of the company and its interaction with customers, it looks like customers want something “free” from the company for being loyal to the brand. Seems to make sense. Buy 10 cups and the 11th one is free. Seems like a no brainer. But for so long the company did not have to do these types of tactics.In the end, it seems clear that the companies that can be most nimble and in touch with its consumer base will win the battle.read more | digg story

Wendy’s is finally sold to Triarc. This has been a long time coming and I am sure there are a lot of folks in Columbus who are happy to know that there is an eventual buyer. We will have to see if the partnership with Arby’s is really that great. Arby’s has been making some moves lately, but nothing of any great significance.Over the past couple of months, Wendy’s has seen several key people leave in Marketing and HR. Now I wonder, what will happen to these open positions and will Nelson Peltz really be able to turn around this brand. I was in a Wendy’s just a couple of weeks ago and found it to be a tired brand in need of a real shot in the arm. Everything from the menu boards, POP to just the overall experience was blah. Yes, blah.What would Dave Thomas be saying if he were around?read more | digg story