Restaurant chains add adventurous menu items

 
February 28, 2012 | By Bret Thorn
Tikka Masala burrito from Boloco

Baskin-Robbins 3-Point chocolate

Arroz Cremoso de Peixe from Legal Sea Foods

As signs of improvement in the U.S. economy emerge, chain restaurants are stepping out of their comfort zones to offer items that are a bit riskier than burgers and pizza.

Legal Sea Foods is promoting a fairly remote archipelago in the Atlantic Ocean with its Taste of Azores campaign.

The 32-unit casual-dining chain, based in Boston, is highlighting the Portuguese islands as a historic stopping point between Europe and North America, with ties to New England that go back more than 300 years.

Appetizers include:

Escabeche de Camarão: Shrimp escabeche with sweet and sour peppers and onions, $8.95

Polvo à Lagareiro: Braised octopus with potatoes, caramelized pearl onion and roasted kale, $9.95

Pastéis de Bacalhau: Salt cod fritter with chouriço aïoli, $8.95

Entrées include:

Peixo Frito: Crispy fish with tomato rice, Port braised shallots and Azorean pepper tartar sauce, $16.95

Espadarte Grelhado: Grilled swordfish with shrimp açorda (a paste made of bread, garlic, olive oil and herbs), garlicky green beans and cilantro, $22.95

Arroz Cremoso de Peixe: Creamy rice with clams, shrimp and white fish, $16.95

Torremos de Porco Com Aměijoas: Braised pork with clams, olive oil, fried potato and picked vegetable, $18.95

For dessert, the chain is offering Gelado de Figo, or fig ice cream, with traditional Azorean pastry, for $5.95.

The menu will available at Leal Sea Foods restaurants in Massachusetts and Rhode Island from March 14 through April 11.

Another Boston-based chain, 18-unit Boloco, which specializes in globally inspired fast-casual burritos, is thinking even further outside its regular teriyaki, Memphis barbecue and Buffalo burritos with a new line of Indian-inspired offerings.

• The Simple Curry Burrito is filled with curried cauliflower and brown rice.

• The Tikka Masala Burrito is slightly milder, with creamy curried tomato sauce, choice of protein, and brown rice in a burrito or bowl.

The chain also is offering a Mango Lassi Smoothie, made with mango, non-fat milk, non-fat vanilla yogurt and honey.

Baskin-Robbins, the Canton, Mass-based ice cream chain, has picked up the salty dessert trend from independent restaurants with its March Flavor of the Month. Its 3-Point Chocolate ice cream, which ties in to the national college basketball championships that take place next month, is chocolate ice cream with a salty caramel ribbon and orange colored caramel pretzel balls.

The 3-Point Chocolate Sundae — made with the new ice cream flavor, hot fudge, Reese’s Peanut Butter Sauce, crushed Reese’s Peanut Butter Cups and whipped cream — also debuts in March.

The 6,700-unit Dunkin’ Brands Inc. subsidiary also revealed the winner of its send annual online Flavor Creation Contest, which will be featured as the flavor of the month in November.

Kelsey Lien of Santa Monica, Calif., created the Nutty Cream Cheese Brownie, which combined chocolate fudge ice cream, a cream cheese ribbon, walnuts and fudge brownie pieces.

Quick-service Mexican chain Taco Time Northwest, based in Renton, Wash., is going beyond the usual French fry offerings for a limited time with sweet potato fries, available through March 31.

The Sweet Potato Mexi-Fries are priced at $2.99–$3.99, or as a substitute for combo meals at a $1 premium for adult meals and a 50-cent premium for kids’ meals at the chain’s 74 restaurants.

India may top China as hottest restaurant growth market

 
February 24, 2012 | By Mark Brandau
 

Move over, China?

India may be ready to supplant China as the top growth market for Western quick-service brands, according to a new research note from Sara Senatore, securities analyst for Bernstein Research.

Based on projections that India’s economy could soon outpace China’s, and recent moves by McDonald’s Corp., Yum! Brands Inc., Starbucks Corp. and Dunkin’ Brands Inc., “the focus on the Indian foodservice market has intensified,” Senatore wrote.

India’s economic growth could exceed China’s as soon as 2014, the report said, adding that much of Indian consumers’ discretionary income likely would go toward spending at restaurants. This means the quick-service market in India could double by that year, she wrote.

“At $13 billion, the Indian market for fast food is just less than one-fifth that of China’s, but it is growing fully 4 percentage points faster — 19 percent annually versus 15 percent in China,” Senatore wrote. “Importantly, fast-food growth has consistently outpaced income growth in India by a factor of 50 percent, as Indian consumers disproportionately allocate incremental income to luxury goods like Westernized food.”

McDonald’s and Yum recently told investors they would accelerate growth in India, while Starbucks and Dunkin’ will open their first outlets there this year. Other brands, like Baskin-Robbins and Domino’s Pizza, already have several hundred locations in India.

Quick-service restaurants investing in India also could reap a “demographic dividend” from India’s youthful population, Senatore added.

“Unlike in China, where the population bulge sits in middle age, India’s largest population cohorts are its youngest,” she wrote. “Because eating habits are established at a fairly young age, this bodes well for growth. Young consumers cite taste, variety and limited time as reasons to eat fast food; we anticipate that these factors will only grow with time.”

By 2015, Indian consumers could generate annual sales of $1 billion for Yum, $800 million for McDonald’s and $80 million for Starbucks, Bernstein Research estimated.

In late 2010, McDonald’s said it would grow its system of restaurants in India by about 25 percent annually.

McDonald’s currently is the sales leader for Western quick-service brands in India, Senatore wrote, ringing up sales of $206 million in 2010, compared with $98 million for KFC, $38 million for Subway and $27 million for Baskin-Robbins.

Read more: http://nrn.com/article/india-may-top-china-hottest-restaurant-growth-market?ad=news#ixzz1nccTtj3S

eBay boosts mobile offerings with new partnerships

 

 
February 27, 2012
BARCELONA, Spain — eBay Monday announced a number of strategic moves including a new partnership with major carrier Three.co.uk; integrations with merchants such as Yotel and Entradas.com; and mobile app updates that evolve mobile commerce selling and shopping experiences for consumers.

In 2011, eBay mobile commerce generated $5 billion in retail volume, and PayPal mobile generated $4 billion in payment volume. eBay’s mobile apps have been downloaded more than 70 million times, according to the company. In 2012, eBay expects to do $8 billion in mobile commerce retail volume, and PayPal expects to process $7 billion in mobile payment volume.

“Mobile commerce is changing the way people shop and pay, and the ways in which merchants of all sizes engage consumers,” said John Donahoe, eBay Inc. president and CEO. “We’re seeing a new retail paradigm emerge through mobile. Consumers are in control, and they want to shop anytime, anywhere. That creates opportunity. eBay is driving mobile commerce innovation, partnering with carriers and merchants to build a new retail ecosystem that drives growth by delivering anytime, anywhere value and rich multichannel shopping experiences for consumers.”

eBay and Three.co.uk have partnered to deliver mobile devices pre-loaded with eBay apps, bringing the mobile shopping experience directly to consumers. With this deal, Android smartphones on the United Kingdom’s fastest growing network will now come with eBay’s mobile app directly on the device. The move will mean Three and eBay’s customers can enjoy a quick, easy and direct shopping experience, the company said.

PayPal launched Monday the PayPal Carrier Payment Network, to make mobile carrier payments more viable for a wider number of online merchants. PayPal will work with its more than 250 carriers and more than1,500 digital goods merchants to expand the carrier payment experience and create a win-win situation for carriers, merchants and consumers. 

PayPal teamed up with Spain’s leading ticketing company, Entradas.com, to allow consumers to save time and skip the line by buying tickets with a mobile phone and PayPal. 

PayPal has collaborated with Yotel to allow consumers to soon book a room at Yotel’s flagship hotel in New York, or one of their stylish cabins at London Heathrow & Gatwick and Amsterdam Schiphol airports, with PayPal on your smartphone. Travelers can book on any smartphone using the browser – there’s no need to download an app, simply visit the Yotel website on a mobile device and follow the instructions to book a room in under 60 seconds.

Gap Forecast Trails Some Estimates as Old Navy Sales Decline

February 24, 2012, 11:37 AM EST

 

By Ashley Lutz

Feb. 23 (Bloomberg) — Gap Inc., the largest U.S. apparel chain, forecast profit this year that was less than some analysts estimated as sales decline at its Old Navy stores.

Profit in the year ending in January 2013 will be $1.75 a share to $1.80 a share, San Francisco-based Gap said today in a statement. The average estimate of 31 analysts surveyed by Bloomberg was $1.80.

Chief Executive Officer Glenn Murphy failed to boost holiday sales at Old Navy after introducing a new marketing campaign for the more-than-1,000-store chain during the third quarter. The company yesterday said former Nike Inc. executive Jill Stanton will become creative adviser for Old Navy, which lost president Tom Wyatt last month.

“Old Navy is at the essence of the issue with Gap,” Craig Johnson, president of Customer Growth Partners in New Canaan, Connecticut, said in a telephone interview before results were announced. “They’ve made some cosmetic changes, but it’s going to have to be more radical to save the brand.”

Gap rose 0.3 percent to $23.60 at 4:11 p.m. in New York. The shares fell 16 percent last year.

Fourth-quarter net income fell 40 percent to $218 million, or 44 cents a share, from $365 million, or 60 cents, a year earlier, the company said. Analysts projected 42 cents, the average of 28 estimates compiled by Bloomberg.

Comparable-store sales at North American Old Navy locations and associated online sales fell 6 percent in the quarter, compared with a 4 percent decline for the company overall

Darden predicts strong 3Q, Olive Garden rebound

 
Darden Restaurants Inc. said Thursday that very mild winter weather and an earlier start to the Lenten season, when many consumers turn to seafood or vegetarian options, helped drive positive same-store sales at its Red Lobster and Olive Garden chains.

The Orlando-based company said blended U.S. same-store sales for Olive Garden, Red Lobster and LongHorn Steakhouse for the third quarter, which ends Sunday, will increase about 4 percent, reflecting gains of 7 percent at LongHorn Steakhouse, 6 percent at Red Lobster and 2 percent at Olive Garden. It will be the first time in more than a year that Olive Garden posts positive quarterly same-store sales results.

Blended U.S. same-store sales for Darden’s Specialty Restaurant Group, which includes Seasons 52, Bahama Breeze and The Capital Grille, are expected to increase 6 percent for the third quarter, Darden reported.

“We’re pleased with the results we’ve seen thus far in the third quarter,” Clarence Otis, Darden’s chairman and chief executive said in a statement. “Each of our brands has solid sales momentum and, as we’ve anticipated for some time now, our year-over-year cost comparisons are trending in the right direction.”

The company said sales were driven by a calendar shift in the start of the Lenten season to the company’s third fiscal quarter from the fourth fiscal quarter a year ago. Red Lobster ties its typically successful, annual LobsterFest promotion to the start of Lent. Mild winter weather, as compared to last year, also helped drive consumer traffic.

Specifically, the estimated blended same-store sales growth for Olive Garden, Red Lobster and LongHorn Steakhouse gained about 70 basis points, or 0.7 percent, because of the Lenten season shift and about 200 basis points, or 2 percent, because of less severe winter weather.

Darden confirmed its annual guidance, which includes full-year U.S. same-store sales growth of between 2.5 percent and 3 percent for Red Lobster, Olive Garden and LongHorn Steakhouse; the opening of between 85 and 90 net new restaurants, excluding the addition of 11 Eddie V’s restaurants; total sales growth of between 7 percent and 7.5 percent; and diluted earnings per share growth from continuing operations of between 4 percent and 7 percent.

The company plans to release its full third-quarter results on March 23.

The latest chefs on the move

Larry Bellah, Michael Laiskonis, Chris DeLuna, David Hatfield, Steven Devereaux Greene, Anthony Zamora, Jeff Kreisel, John Lechleidner
February 23, 2012 | By Bret Thorn
Steven Devereaux Greene

Michael Laiskonis

Larry Bellah

John Lechleidner

Jeff Kreisel

David Hatfield

Chris DeLuna

Anthony Zamora

Larry Bellah, former director of culinary development and operations for Homestyle Dining LLC, parent company of the Ponderosa Steakhouse and Bonanza Steakhouse chains, is the new corporate chef of Spaghetti Warehouse Restaurants Inc., a 16-unit casual dining chain based in Irving, Texas.

Michael Laiskonis, who spent eight years as executive chef of Le Bernardin in New York City, has taken the newly created position of creative director at the Institute of Culinary Education in New York. Laiskonis has been on the culinary school’s advisory board for more than a decade. In his new role, he will direct new projects in curriculum development and research, as well as teach classes and serve as an industry ambassador for the school.

Chris DeLuna is the new executive chef of La Fonda del Sol in New York City. Most recently, he was executive chef of the restaurant’s sister property, Naples 45, also in New York City. Patina Restaurant Group operates both restaurants.

In his new role at the Spanish restaurant, DeLuna has added items such as Basque chorizo cooked in cider with croutons; jumbo prawn with saffron rice, liquid chile and prawn chips; and roasted duck breast with creamy lentils, duck confit and sherry caramel.

David Hatfield, former owner of Café 3456 in Bend, Ore., has moved to Seattle, where he is the new executive chef of Library Bistro and Bookstore Bar at the Alexis Hotel. He has added menu items such as a lamb burger with feta, roasted bell peppers and aïoli; smoked pork loin with orange marmalade; and a Monte Cristo sandwich with house-made brioche.

Hatfield has a degree in microbiology from the University of Washington. He also studied culinary arts at Seattle Central Community College.

Steven Devereaux Greene is the new executive chef of An New World Cuisine in Cary, N.C. The former chef de cuisine of Herons, the signature restaurant at The Umstead Hotel and Spa, also in Cary, has added items such as lemon grass-spiced lamb with nishiki rice risotto, green papaya, poached onion and sweet soy; tea-smoked duck with barley, pomegranate-Darjeeling jelly, bok choy and pomegranate jus; and Carolina quail with wood ear mushrooms, haricots verts and blood orange-coconut glaze.

Anthony Zamora is the new executive chef of the Conrad New York City, overseeing all dining operations at the hotel, including its signature restaurant, Atrio, as well as the seasonal rooftop bar and in-room dining. Most recently, he was executive chef of the Four Seasons Hotel in New York.

Jeff Kreisel, former chef de cuisine at Porterhouse in New York City, is the new executive chef at two New York City properties: Hotel Chantelle, where he is preparing such modern American food as grilled baby octopus; and the Ravel Hotel’s Asian-fusion Penthouse 808, where he’s cooking Szechuan peppercorn wok-charred octopus.

Wolfgang Puck Fine Dining Group veteran John Lechleidner is the new chef de cuisine at WP24 Restaurant and Lounge at The Ritz-Carlton, Los Angeles. Most recently, he was executive chef of the Wolfgang Puck Bar 7 Grill at L.A. LIVE in Los Angeles.

One bad quarter won’t hurt Kohl’s

 
February 23, 2012 | By Gail Hoffer
MENOMONEE FALLS, Wis. — While Kohl’s may have reported decreases in both sales and net income for its fourth quarter, fiscal 2011 proved to be another profitable year for the retailer.

The company reported fourth quarter diluted earnings per share increased 9% to $1.81. However, net income for the quarter decreased 8% to $455 million, compared with $494 million ($1.66 per diluted share) a year ago. Net sales for the quarter fell 0.3% to $6 billion, while comparable-store sales decreased 2.1%.

Despite a lackluster fourth quarter, Kohl’s ended fiscal 2011 with a diluted earnings per share increase of 17% to $4.30 and net income growth of 4% to $1.17 billion. Net sales were $18.8 billion, an increase of 2.2%. Comparable-store sales increased 0.5%.

Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “I am pleased that 2011 was another year of profitability and earnings per share growth for our shareholders. With the commitment of each of our 140,000 associates, we were able to navigate a difficult holiday sales season through strong expense and inventory management. We achieved a major milestone in 2011 with our e-commerce business reporting $1 billion in revenues. We are starting 2012 with considerable brand excitement, with the launch of Rock and Republic, continued excitement from our Jennifer Lopez and Marc Anthony brands, and expansion of the successful ELLE and Simply Vera Vera Wang brands into new categories.”

Kohl’s opened 40 stores during 2011 and now has 1,127 stores in 49 states, compared with 1,089 stores at the same time last year. The company remodeled 100 stores in 2011.

 Based on assumptions of a total sales increase of 4.5% and a comparable store sales increase of 2%, Kohl’s said it expects earnings per diluted share of $4.75 for the year. For the first fiscal quarter, the company said it expects earnings per diluted share of 60 cents based on assumptions of a total sales increase of 3% and a comparable-store sales increase of 1%

The Cheesecake Factory net income jumps 36% in 4Q

 
February 21, 2012 | By Lisa Jennings
The Cheesecake Factory Inc. on Tuesday reported a more than 36-percent increase in profit for the fourth quarter on improving guest traffic.

For the quarter ended Jan. 3, the Calabasas Hills, Calif.-based casual-dining operator reported net income of $29.9 million, or 54 cents per share, compared with $21.9 million or 36 cents per share, a year ago.

Same-store sales for the quarter rose 2.7 percent for the company’s two brands, while revenue totaled $477.7 million, up nearly 15 percent from a year ago.

The recent quarter included an additional week and $1.5 million in impairment charges. In addition, the company saw a pre-tax benefit of $700,000 and a reduction to its income tax provision of $1.1 million as the result of a partial settlement with the U.S. Internal Revenue Service.

By brand, same-store sales were up 2.7 percent at the 156-unit Cheesecake Factory and 1.9 percent for the 13-unit Grand Lux Café. The company also operates one location of RockSugar Pan Asian Kitchen.

David Overton, the company’s chief executive, said the focus will remain on building market share by improving the customer experience.

“We delivered our best comparable sales and highest guest traffic levels of the year, driving 36-percent earnings per share growth. The Cheesecake Factory offers the strongest, most consistent guest experience in the industry, and our numbers confirm it,” he said in a statement.

“We have always been an operating company, and, over the past few years, our level of excellence in food, service and overall execution has become even better, further separating our concept from others in the industry,” he continued. “This places us in an extremely strong competitive position.”

The Cheesecake Factory also is moving outside the United States for the first time with three licensed locations expected to open in the Middle East. The company projects opening seven or eight new restaurants in 2012.

For the year, The Cheesecake Factory reported net income of $95.7 million, or $1.64 per share, compared with $81.7 million, or $1.35 per share.

Revenue for the year was $1.8 billion, compared with $1.7 billion a year ago.

Profits grow on the Dollar Tree

 
February 22, 2012
CHESAPEAKE, Va — Dollar Tree’s sales and earnings growth for the fourth quarter and fiscal year is just another example of how discounters dominated in 2011. 

The company reported that net sales for the fourth quarter were $1.95 billion, a 12.8% increase compared with $1.73 billion reported for the quarter ended Jan. 29, 2011. Comparable-store sales increased 7.3%, on top of a 3.9% increase for the fourth quarter 2010.

Earnings per diluted share for the fourth quarter were $1.60, an increase of 24% compared to the $1.29 earnings per diluted share reported for the fourth quarter 2010.

“I am pleased to report that our business momentum remains strong as Dollar Tree’s sales, operating margin, and earnings continued to expand in the fourth quarter,” said president and CEO Bob Sasser. “Dollar Tree is focused on providing a broad, balanced assortment of merchandise that customers need and want at surprising values. Our stores are clean, bright, convenient, seasonally relevant and fun to shop. We are looking forward to an exciting spring and Easter selling season.”

During the fourth quarter, Dollar Tree opened 21 stores, expanded or relocated 3 stores, and closed 5 stores. Retail selling square footage increased 6.9% compared to a year ago, to 37.6 million sq. ft.

Dollar Tree reported that net sales for the full year were $6.63 billion, a 12.7% increase compared with 2010 sales of $5.88 billion. Comparable-store sales increased 6%, on top of a 6.3% increase last year.

Diluted earnings per share were $4.03, an increase of 30% from diluted earnings per share of $3.10 in 2010. 

For the first quarter of 2012, Dollar Tree said it expects sales to be in the range of $1.65 billion to $1.69 billion, based on low -to- mid single-digit positive comparable-store sales, and 7% square footage growth. Diluted earnings per share are expected to be in the range of 91 cents to 97 cents.

For the full year, the company said it estimates sales will range from $7.25 billion to $7.42 billion. This estimate is based on a range of low -to -mid single digit positive comparable-store sales, and square footage growth of approximately 7.2% for the year. Fiscal year 2012 diluted earnings per share are expected to be in the range of $4.65 to $4.90. 

Chili’s offers ‘Kids Eat Free’ e-mail promotion !

 

 
February 21, 2012 | By Ron Ruggless
 
 
 
Chili’s Kids Eat Free promotion
Chili’s Grill & Bar is offering members of its e-mail club a special two-day “Kids Eat Free” promotion that the chain is supporting with social media.

The deal, which was e-mailed to club members Monday, requires a “Febru-Awesome” coupon, a brand spokesperson said Tuesday, and is good only on Feb. 21 and 22 at the 800 company-owned units nationwide.

With the coupon, two children ages 12 or younger can eat a Kid’s Meal free when one adult orders an entrée. Multiple coupons are allowed per table. The “Eat Free” deal is supported on Facebook and Twitter, the spokesperson said. The coupon can be redeemed from a smart phone and doesn’t have to be printed out.

Chili’s, a division of Dallas-based Brinker International, increasingly has been using e-mail and social media to market promotions. The company also has made substantial use of its e-mail club membership at the 45-unit Maggiano’s Little Italy brand.

Chili’s took a three-week network television hiatus in September and relied on social media and local marketing efforts to “augment our marketing strategy with more efficient social media and local marketing elements,” Wyman Roberts, president of Brinker’s Chili’s division, said in a fall call with analysts. He added that the chain would be leveraging social and direct marketing more.

EARLIER: Brinker expands value strategy at Chili’s

Brinker’s system includes 1,529 Chili’s and 45 Maggiano’s restaurants. Brinker also retains a minority investment in Romano’s Macaroni Grill.