Restaurant and Food Service Blog

I was at my local Chipotle today for lunch and there is a definite reason why I am attracted to brand. The cooler, hip vibe that the company portrays lends itself to the higher quality food you get here then any of the other competitors in the quick casual segment.

Upon entering, a server had a tray of guacamole samples.

Chipotle server giving away samples

The line moved very fast during the lunch rush.

Making my tacos

I felt like a got a great deal on my meal. The tacos were tasty.

My lunch - 2 soft tacos, chips and coke

The restaurant was busy for a Tuesday lunch.

The restaurant was busy

The more telling sign was that a former Hardee’s was boarded up and had been closed for several months.

Closed Hardee's next to Chipotle

Closed Hardee's next to Chipotle

Just got into Denver last week. It was part of a relocation by my wife’s work. I am already impressed with the local food scene here. I had to drop off moving boxes at a local packing store where they paid me about $0.25 per box. So I am not even sure why I made the drive into Denver. But it turned out to be a good trip because I found this great quick casual pizza place – Il Vicino.

For less than $9.00 I got a small salad, small pizza with one topping and a drink. The pizza was delicious. They do a wood oven pizza that comes to you in about 7 minutes.

From what I understand, it is a European concept with only 7 units in the US, but they seem to he growing in the Mountain states.

If anyone has any insight on the company or brand, please share. I expect that this is a concept to watch.

Hungry diners craving a Chipotle burrito may soon have to fork over a bit more cash.
Denver-based Chipotle Mexican Grill Inc. is considering raising its prices to combat high food costs, the company said. Expect more companies to follow suit. Chipotle is a top brand, so if they are struggling can you imagine what going on in the rest of the industry.

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Celebrity chef-restaurateur Bobby Flay and business partner Laurence Kretchmer are moving downscale with the launch of what is expected to be the first of a chain of fast-casual burger joints. It seems as though the “better burger” segment may be the “it girl” today. With the current news on other better burgers such as Five Guys and The Habit, it seems as though every one wants some skin in the game.

But with the scare du jour, ie, salmonella, mad cow, etc, how are we so sure that this latest craze will not get snuffed out by something so random? Peter Romeo in his latest blog posting, Bugging Out, talks about how something such as the current salmonella breakout can turn into something very different once in the hands of the public perception.

But as the US economy continues to look bleak there is still a ray of hope for the restaurant industry as smaller concepts continue to grow and show that they have legs. These smaller concepts, although very risky, are probably where we are going to see the greatest grow potential in the next year.

read more | digg story

TCH Restaurant Group, Inc. will take its Five Guys Burgers and Fries from its current count of five stores in Tampa to a total of 86 stores in Tampa, Houston and Columbus, Ohio over the next several years.

The new franchisee parent company was formed when Bob Gries, through Gries Investment Fund, purchased a 40 percent ownership stake from Tampa franchisee Bob Dorfman, who is now chairman, president and CEO of TCH Restaurant Group.

‘Five Guys has been recognized as one of the fastest growing food franchises in the country,’ says Dorfman. ‘It’s extremely difficult to get franchises, much less the rights to 86 stores in three major markets, so we’re pleased to be taking the lead in these markets.’ Dorfman, a former Marriott executive who has invested in and consulted with a number of restaurant chains, opened his first Tampa Five Guys in 2006 and will be opening the sixth on June 21, 2008.

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Technomic, the restaurant consultancy group, released its annual reporting of the top restaurant chains in the US. Technomic’s data shows a current slow down in restaurant sales in 2007 relative to 2006.The quick causal and limited service concepts continue to do well. But was interesting to see is that even among the good segments, there are still losers. This will ultimately be the demise of poorly run concepts.More importantly, what I think this will do is make the restaurant industry stronger. The industry is due for some contraction and with any cycle it is necessary to weed out the players from the dogs. Look at Brinker for example. They recently let go a bunch of talent. But in my mind it was probably necessary. What has Brinker done lately. The brand was once known as great breeding ground for tomorrow’s talent. If you had a Brinker background and were half decent, you would go far in this industry.But look at Brinker now. Just about everything they have had a hand in is terrible. Romano’s is in the toilet. Chili’s has seen better days. And Maggiano’s is fluttering about. Perhaps it is the casual segment since it has really taken it on the chin over the past couple of years. But what I think that the casual dining segment needs to learn is that most American’s today want quality and value. That is probably why the quick casual (Panera and Chick-fil-A) and limited service (Starbucks) are still doing well.read more | digg story

Last month I delivered my 2008 Predictions for the Restaurant Industry. I want to share that piece with my readers. Please let me know your thoughts.This is the first annual Predictions for the Restaurant Industry presented by Orrick Nepomuceno, CPC. 2008 will prove to be a tough time for the US economy that will have a huge impact on the state of the Restaurant Industry.

1. Sluggish Sales Growth Will Continue For 2008. The restaurant industry overall will see very conservative growth across all segments (casual, quick casual, quick service and fine dining). According to NRA estimations, the industry will see only a 0.9% sales growth for 2008. Although more Americans are spending a higher percentage of their disposable income allocated for food then ever before, most households will be less likely to eat out several times a week. Most likely, they will eat at home and save instead. Even if the President’s economic stimulus package does pass and Americans see a few extra spending dollars, most economists believe that most households are barely making ends meet. Bottom Line: Americans will have more disposable income in their wallets, but will probably consider saving instead of spending.
2. Increased Energy And Wholesale Food Costs Will Have A Negative Effect. With the price fluctuations in crude oil, lower and mid level-income households will feel a tighter pinch on spending disposable income on dining out as they will be inevitably hit hard with increased gasoline prices. Studies have shown a direct correlation to slumping restaurant sales and the increase in gasoline prices. Additionally, 2007 saw a nearly 8% increase in wholesale products. Much of this cost was eventually passed on to the consumer in higher menu prices. Most estimations see wholesale food costs to remain high for 2008 as well. Bottom Line: Households will get a double hit with transportation and dining expenses.
3. Technology Will Continue To Advance Even More Rapidly Than In Previous Years. Companies will look to the Internet for connecting with customers in more ways than before. Traditional print and television mediums will drive consumers to websites for offerings and coupons. Online ordering will become more robust as mobile handheld devices such as the iPhone have web browsing capabilities similar to their desktop versions. Also, a “Facebook” and “MySpace” type of social networking will become more prevalent with company sites where consumers can create online profiles. Bottom Line: The restaurant industry has a long way to go before it catches up with other industries in terms of technology.
4. Recruitment And Retention Will Be Of A Lesser Concern. The restaurant industry has always been a labor-intensive industry with recruitment and retention being typically the biggest concern among most hiring managers. But for 2008, according to NRA predictions, the industry will see a relatively small increase (0.9%) in the employment growth rate. Coupled with a slowing economy, job creation will be less than in 2007. Thus, with less demand for employees in 2008, many hiring authorities may substitute their concern for human resources to other cost cutting measures. Bottom Line: Many operators’ concerns will be moving towards cost reduction in order to stay competitive.
5. Bullish On Coffee Bars. One segment, although relatively small, the Snack & Non-Alcoholic Beverage Bars (Coffee and Dessert bars) will see higher than normal growth compared to other segments. In 2007, coffee bar sales outpaced beyond the rest of the crowd. Bottom Line: Companies will look to find niche segments where there is little or no saturation.
6. Global Cuisine. At a recent conference of Executive Chefs across America, most commented on smaller sized portions and introduction of ingredients from different parts of the world. Ethnic flavors found roots in the US with inspiration from Latin America, the Mediterranean, the Middle East and Southeast Asia. Many chefs also commented on utilizing more local produce, sustainable seafood and grass fed beef and poultry. Bottom Line: American diners are becoming more savvy and demanding more exotic flavors when they go out.
7. Fat Is Not In. Americans are demanding healthier foods as we wage the war on fat. Look for menu offerings at current concepts to reflect this trend, but also expect new totally concepts to emerge and fully embrace a menu offering with healthier choices – a la Seasons 52. With obesity in America on the verge of becoming an epidemic and local municipalities looking to stiff arm the industry into removing trans-fats and other harmful foods, the restaurant industry as a whole needs to get ahead of the curve and take a stand on obesity. Bottom Line: Expect the Federal Government, not local municipalities, to continue campaigns to reduce the consumption of trans-fats.