Whole Foods hooks sustainable seafood

 
March 30, 2012
NEW YORK — Whole Foods Market is leading charge to promote the sale of sustainable seafood by becoming the first national grocer to stop selling red-rated seafood. The company announced that, beginning this Earth Day (April 22), it will no longer carry red-rated, wild-caught fish in its seafood departments. 

A red rating indicates that a species is suffering from overfishing or that current fishing methods harm other marine life or habitats; the ratings are determined by nonprofit research organizations Blue Ocean Institute and Monterey Bay Aquarium. Fish that fall in this category include Atlantic halibut, grey sole and skate. Whole Foods Market’s fishmongers will help recommend alternatives, such as MSC-certified Pacific halibut and yellow-rated Dover sole and Atlantic flounder.

Blue Ocean Institute and Monterey Bay Aquarium’s green or “Best Choice” ratings mean species are abundant and are caught in environmentally-friendly ways; yellow or “Good Alternative” ratings indicate some concerns with the species’ status or catch methods.

Whole Foods noted that any wild-caught seafood at Whole Foods Market that does not carry the color-coded rankings of Blue Ocean Institute and Monterey Bay Aquarium comes from fisheries deemed sustainable by the Marine Stewardship Council (MSC), which remains the company’s primary indicator for seafood sustainability.

Whole Foods seafood sustainability program began in 2010 when its regions partnered with either Blue Ocean Institute or Monterey Bay Aquarium (SeaChoice in Canada) to display color-coded sustainability ratings at its seafood counters so customers could make informed choices when selecting wild-caught seafood.

“Through collaborations with the Marine Stewardship Council, Blue Ocean Institute and Monterey Bay Aquarium, we offer our shoppers knowledge to make conscious seafood choices for themselves, their families and our oceans,” said David Pilat, Whole Foods Market’s global seafood buyer

Applebee’s, IHOP executives step down

 
March 27, 2012 | By Lisa Jennings
DineEquity Inc., parent of the IHOP and Applebee’s chains, has confirmed the departure of several top executives in recent weeks.

Shannon Johnson, the former vice president of culinary and menu strategy for Applebee’s, has left the company, and a replacement is being sought, said Nancy Mays, a spokeswoman for the brand.

Johnson, who joined Applebee’s in 2003, is credited with guiding the menu overhaul at the casual-dining chain after it was acquired by DineEquity in late 2007. Since then, about 90 percent of the menu has been upgraded or replaced.

At press time, it was not immediately clear what Johnson’s plans were, and he could not be reached for comment.

At IHOP, Patrick Lenow, formerly executive director of communications, also left the company as of March 16. Mays said DineEquity is looking to replace him.

In addition, Jim Peros, former senior vice president of operations at IHOP, retired earlier this month. Tom Coelho was promoted to vice president of operations, but May said the company is looking to fill the senior vice president position within that division.

Based in Glendale, Calif., DineEquity franchises and operates about 3,500 restaurants under the Applebee’s Neighborhood Grill & Bar and IHOP brands.

Family Dollar delivers another strong quarter

 
March 28, 2012
MATTHEWS, N.C. — Rising gas prices and a cautious consumer environment continues to benefit the dollar store, with Family Dollar being the latest example. The company reported that net income for the second quarter of fiscal 2012, ended Feb. 25, increased 10.7% to $136.4 million compared with net income of $123.2 million for the second quarter of fiscal 2011. Net income per diluted share for the quarter increased 17.3% to $1.15 compared with 98 cents for the second quarter of fiscal 2011.

Total net sales for the second quarter of fiscal 2012 increased 8.6% to $2.46 billion compared with total net sales of $2.26 billion in the second quarter of fiscal 2011. Comparable-store sales increased 4.5%, thanks to increased customer traffic and increased average ticket. Sales were strongest in the consumables and seasonal and electronics categories.

“I’m very pleased to report that we delivered our 16th consecutive quarter of double-digit earnings per share growth. Our investments to improve the shopping experience and broaden our customer appeal are gaining momentum and continue to drive higher returns for our shareholders,” said Howard Levine, chairman and CEO. “Our strategy to provide value and convenience continues to resonate in this economic environment. As we execute against our strategic plan, our store teams are working hard to expand our merchandise assortment to better meet our customer’s needs and drive further market share gains.”

For the third quarter, the company expects that comparable store sales will increase between 5% and 7% and that earnings per diluted share will be between $1.01 and $1.11, compared with 91 cents in the third quarter of fiscal 2011.

For the full year, the company expects that earnings per share will be between $3.55 and $3.75 compared with $3.12 in fiscal 2011.

Carrols acquires 278 Burger King restaurants

March 26, 2012 | By Paul Frumkin
Carrols Restaurant Group Inc. has agreed to acquire 278 company-owned Burger King restaurants through an asset purchase agreement with Burger King Corp., the Syracuse, N.Y.-based company said Monday.

The transaction, which will make Carrols the system’s largest global franchisee, with 575 Burger King outlets, will give Burger King a 28.9-percent equity interest in Carrols. Carrols also agreed to pay the Miami-based franchisor about $15.8 million.

As part of the deal, Carrols agreed to remodel about 450 Burger King locations to the chain’s 20/20 restaurant image over the next three and a half years.

In addition, Burger King Corp.’s president, North America, Steve Wiborg, and chief financial officer Daniel Schwartz will join Carrols’ board of directors.

Carrols, which, with its current 297 locations, already ranks as the largest domestic Burger King franchisee, is completing the spin-off to its shareholders of Fiesta Restaurant Group Inc., which owns and operates the Pollo Tropical and Taco Cabana chains. Following the transaction, Carrols will operate only Burger King restaurants.

The acquisition is contingent upon the completion of the Fiesta spin-off and Carrols’ access to financing, which will be used to fund the Burger King remodeling program, cash paid out to parent Burger King from the transaction, and refinancing of Carrols LLC’s existing senior secured credit facility.

Under the deal with Burger King Holdings, Carrols would also be given right of first refusal on the sale of Burger King restaurants by other franchisees in 20 states, indicating the company is looking to add more units.

The spin-off is expected to close in April.

“With the spin-off of Fiesta nearly behind us, our sole focus as we move forward will be on expanding our Burger King business and leveraging our operating infrastructure to build shareholder value,” Dan Accordino, chief executive and president of Carrols Restaurant Group Inc., said in a statement.

“We believe that there are significant opportunities for us to grow Carrols through acquisition and consolidation opportunities present within the Burger King system,” he said. “This transaction, along with the close relationship that we are establishing with BKC, is a very exciting and pivotal step as we begin this journey.”

The 278 Burger King restaurants are in Ohio, Indiana, Kentucky, Pennsylvania, North Carolina, South Carolina and Virginia.

Wiborg said Burger King is “very excited to further solidify our relationship with our long-time franchisee, Carrols Restaurant Group. Carrols has a proven track record of running industry-leading restaurants and has demonstrated a long-term commitment to the Burger King brand. Their leadership, operational expertise and commitment to upgrade the image of their restaurants across the country will greatly contribute to our efforts to provide our restaurant guests with friendly service and quality products served in a fresh, new environment.”

Carrols said it plans to issue a class of voting preferred stock to Burger King that will be convertible into 28.9 percent of the outstanding shares of Carrols’ common stock and voting rights to an amount not to exceed 19.9 percent of outstanding shares.

For the fourth quarter of 2011 ended Feb. 28, Carrols Restaurant Group said revenue rose 4.5 percent to $203.6 million, compared with the prior-year quarter’s $194.9 million.

Net income for the fourth quarter fell to $59,000, or zero cents per share, compared with $2.6 million, or 12 cents per share in the same period of 2010.

Same-store sales in the quarter increased 1.5 percent at Burger King, 7.8 percent at Pollo Tropical and 2.7 percent at Taco Cabana.

Total revenue for 2011 rose 3.3 percent to $822.5 million, compared with $796.1 million in 2010.

Net income for 2011 was $11.2 million, or 51 cents per share, compared with $11.9 million, or 55 cents per share in 2010. Both years included certain charges, which in the aggregate reduced earnings by 25 cents per share in 2011 and 21 cents per share in 2010.

Disney celebrates 25 years

 
March 26, 2012
PASADENA, Calif. — On March 28, Disney Store will celebrate its 25th anniversary by giving the first 250 guests at each location silver commemorative Mickey Mouse ears. In addition, Disney Store will host a variety of family fun activities throughout the day, including Disney trivia, games, a dance party and more. As an added bonus, guests will receive 25% off purchases made in store and online at DisneyStore.com for the entire day. Although known for delivering “the best 30 minutes of a child’s day,” Disney Store has created magical memories for guests of all ages for 25 magical years.

“Disney Store’s 25th anniversary is about celebrating our guests, our products, and the memorable experiences we create for families every day,” said Jim Fielding, president of Disney Store worldwide, “We take great pride in delivering on the Disney promise of excellence, and look forward to bringing the magic of Disney to our guests around the world for many years to come.”

In 1987, Disney launched the entertainment retail model, by opening the first Disney Store in Glendale, California. In 2004, Children’s Place took over operations, only to give them back to Disney four years later. Today, there are more than 350 Disney Store locations worldwide.

As part of the celebration, Disney Store created a commemorative video featuring guests who shared their favorite videos and photos of Disney Store memories over the years. Exclusive products inspired by Disney stories sets Disney Store apart, and a collection of 25th anniversary merchandise has been released with new artwork featuring a collage of favorite Disney characters. 

The restaurant customers of tomorrow

 
Dr. A. Elizabeth Sloan, founder of Sloan Trends Inc., gave the keynote session Thursday at the Research Chefs Association convention in San Antonio.

From the RCA reception Thursday, Ana Salanis and executive chef Richard Sanchez of Acenar restaurant.

From the RCA reception Thursday, Perny Shea, Andrea Auden, chef-owner Bruce Auden from Biga on the Banks, and Jeff Troiala, corporate chef with Woodland Foods.

From the RCA reception Thursday P.J. Edwards and chef-owner Jason Dady from Bin 555

From the RCA reception Thursday, Enedelia Sanchez, Maria Martinez and Hayley Dunlap of La Hacienda de Los Barrios

From the RCA reception Thursday, Leslie Horne, Dawn Haase, Shea Ash and Nancy Kitch of Peach Café

Eric Ripert of Le Bernardin in New York signs books after his RCA keynote speech Friday.

Three areas of the population — those older than 55, kids under 11 and Hispanics — offer extensive opportunities for sales growth in restaurants, an expert told attendees at the Research Chefs Association’s 12th annual conference and exposition.

Trend watcher Liz Sloan, president of Escondido, Calif.-based Sloan Trends Inc., said that those demographics are showing growth in per capita spending and the potential for increasing foodservice sales. The Research Chefs Association Annual Conference & Culinology Expo was held this week in San Antonio, Texas.

Older consumers will spend extra for add-ons and are big consumers of desserts, Sloan said. “They are not the most health conscious when they get to restaurants,” she added. “The younger people are.”

While the 18-to-24 age group still spends the highest percentage of income on foodservice, that group is shrinking in size, she said.

Sloan also noted that there is growth being seen in the number of children under age 11, and that the ratio of Hispanic births to non-Hispanic is four-to-one.

Among younger consumers, the top three ethnic cuisines are Italian, Spanish and Thai, which Sloan said is surprising, as many would think the dishes of Mexican and Chinese cuisines would rank.

“We are going to see a lot of changes in this audience,” she said.

In addition, Sloan said, a new eating occasion — “a savoring experience” — is developing among foodies. This more sophisticated experience is defined by “freshness, distinctive flavors and foodie narratives,” she said. The use of descriptions, like Copper River salmon, grape varietals or Meyer lemons, are all examples of this more sophisticated dining experience, Sloan said.

Hear more from Sloan; story continues below

Sloan highlighted other potential areas of growth for restaurants:

Appealing to the solo diner: “Eating alone is at an all-time high,” Sloan said, with nearly half of eating occasions occurring solo. Even in families, kids are fed separately and the adults eat by themselves, she said.

Offering snacks: New and unique flavors help motivate a consumer to buy a snack from a restaurant. About 40 percent of consumers would buy a snack if it featured a new flavor. Snacking is most popular at mid-morning and afternoon.

Providing smaller sizes and dips: Smaller items, such as sliders, continue to be popular, and the consumer has expressed willingness to pay extra for some side items, such as dipping sauces.

Expanding breakfast selections: Consumers are developing what many call a progressive breakfast routine, picking up several items at several places and a specialty coffee or drink. Another breakfast “mega trend,” Sloan added, is high-protein options, which go beyond eggs and include chicken and seafood. Other ideas are parfaits, compotes, yogurt and ethnic dishes.

RELATED: Consumers’ changing breakfast habits favor restaurants

Providing beverage options: The older customer demographic enjoys beverages. “The one thing about this older group going to restaurants is, they drink,” Sloan said. When the kids empty the nest, they party. Besides alcoholic beverages, these consumers are also buying green and black tea, lemonade, raspberry lemonade and soymilk.

Countering new competition: Competitive forces on restaurants are growing, Sloan warned. Convenience stores will be providing more competition for restaurants. A survey of c-store operators published in January projected foodservice as the highest potential for sales growth in the years ahead, with 57 percent of c-store owners citing it as the top segment to improve sales, followed by 12 percent saying home-meal replacement had the greatest potential.

Providing new flavor experiences: Menus have shown “dramatic, dramatic changes in flavor preferences in the United States in the last two years,” Sloan said, with profiles like “fruity” moving up second only to “grilled” among consumer preferences.

Read more: http://nrn.com/article/look-restaurant-customers-tomorrow?ad=news#ixzz1qETbJ3Xj

Profits surge at Dollar General

 
GOODLETSVILLE, Tenn. — Dollar General’s quarterly profit surged 33% to a record $299 million, from $226 million in the prior year.

Sales increased 20.1% to $4.19 billion, compared with $3.49 billion in the year-ago period. Same-store sales rose 6.5%.

For the full year, profit rose 26% to $819 million, from $649 million in 2010. Sales surged 13.6% to $14.8 billion, from $13 billion last year. Same-store sales rose 6%.

After opening 625 stores in 2011, Dollar General said Thursday it plans to open another 625 units in 2012, which will include 40 of its Dollar General Market stores and 80 new market debuts. About 550 stores are slated for remodel or relocation during the upcoming year.

“For Dollar General, 2011 was another exceptional year,” said Rick Dreiling, chairman and CEO. “We executed on our operating priorities and delivered strong financial performance, while, at the same time, we were able to make significant investments which, I believe, will enable us to continue to achieve outstanding results.”

For the 52-week 2012 fiscal year, the company expects total sales to increase 8% to 9% over the 53-week 2011 fiscal year, or 10% to 11% on a comparable 52-week basis. Same-store sales, based on a comparable 52-week period, are expected to increase 3% to 5%. Operating profit for 2012 is expected to be between $1.60 and $1.65 billion. 

Diluted EPS for the 52-week fiscal year is expected to be approximately $2.65 to $2.75. 

Kohl’s has EPA seeing green

MENOMONEE FALLS, Wis. — Kohl’s Department Stores was honored with the Environmental Protection Agency’s 2012 Energy Star Award for Sustained Excellence at a ceremony in Washington, D.C. The award recognizes Kohl’s long-term commitment to protecting the environment through energy efficiency initiatives. Kohl’s was recognized by EPA in 2010 and 2011 as an Energy Star Partner of the Year, and in 2011 also became the first retailer to be named an EPA Green Power Partner of the Year for three consecutive years.

“Kohl’s continues to make strides in energy efficiency every year, and we are pleased to share that more than 60% of Kohl’s stores nationwide – 700 locations – have earned the Energy Star label,” said John Worthington, Kohl’s chief administrative officer. “But, we’re not stopping there. Our teams collaborate daily to review current projects and discuss new opportunities for energy management and cost savings. We continue to add new solar locations, grow our green power purchases and educate our associates and business partners about the importance of being good environmental stewards. We strive toward new goals each year and look forward to achieving and surpassing our goal of 800 Energy Star-labeled locations by 2015.”

With 590 Energy Star-labeled locations at the end of 2010, Kohl’s began 2011 with a goal of expanding the number of labeled locations to 650. By conducting detailed energy audits throughout the year, an additional 86 Kohl’s stores were awarded the Energy Star label last year.

According to EPA, on average, commercial buildings that earn the Energy Star label use 35% less energy and generate one-third less carbon dioxide than similar buildings. As of 2011, all newly constructed Kohl’s stores pursue Energy Star’s “Designed to Earn” designation with the intent of earning the Energy Star label once built. These stores are eligible to earn the Energy Star label after maintaining superior energy performance for one year in operation.

In 2011, Kohl’s also furthered its commitment to the use and support of renewable energy by purchasing more than 1.4 billion kWh of green power, enough to offset more than 100 percent of the company’s purchased electricity use. Kohl’s is also one of the largest single hosts of solar electricity production in North America with more than 120 solar locations in nine states, including California, Wisconsin, Connecticut, New Jersey, Maryland, Oregon, Colorado, Pennsylvania and Arizona. Also in 2011, Kohl’s launched its first wind locations at its Corpus Christi, Texas store and Findlay, Ohio, distribution center and installed electric vehicle charging stations at 38 stores across 13 states.

Sizzler franchisee discusses chain’s growth

 

 
Sizzler is the latest restaurant brand in multi-concept franchisee Tony Lutfi’s portfolio, which already includes four other chains.

Lutfi, chief executive and president of Marlu Investment Group in Sacramento, already has 72 restaurants: 21 Jack in the Box units, 46 Church’s Chicken locations, four Little Caesars outlets, and one Arby’s restaurant.

Last month, Lutfi signed an agreement with Culver City, Calif.-based Sizzler USA to expand the buffet chain in the San Francisco Bay area under C Foods Concepts, a subsidiary of Marlu.

As part of the deal, Lutfi will acquire five existing units that will be remodeled to fit with Sizzler’s recent rebranding. He then plans to start building new Sizzler locations. Five are planned for the region between San Francisco and Sacramento.

The move marks the first step in a comeback the 170-unit Sizzler chain has been planning since last year, when the U.S. branch of the chain was acquired by its management team.

Nation’s Restaurant News spoke with Lutfi about his decision to invest in Sizzler.

Why Sizzler?

We like brands that have been around for at least 25 years, brands that have a special relationship with [the] consumer that have proved to work over and over again, regardless of the economy. Sizzler has had difficult times and it has continued to survive.

I’ve been a loyal customer for many years, and we felt the management approach and brand itself lends itself to these times, when people are looking for value and experience. We also thought Sizzler was doing a good job of taking care of the customer. Our research found that the loyalty of their customer base is as good as any in the segment.

What is the remodeling schedule?

The company is working on the schedule to get them all done. When done, you get a nice bump in sales. For us it’ll be a little gamble, but we think we’ll get at least a 15-percent bump in sales when we get that done. There have been many [franchisees] that have done better, but that’s what we think.

It’s a complete upgrade of the facility. The consumer experience is improved, but the prices remain almost the same.

We hope to have the first new unit open by mid 2013.

Sizzler calls itself “family-casual.” How do you see it?

I see it as fast casual, but it really doesn’t resemble the fast casual that most people are familiar with. You still have a server that comes to your table and takes care of you. Most fast casual, once you separate from the counter, the customer’s relationship with employees comes to an end. I think it’s “fast-casual plus,” if you will.

Do your plans for Sizzler extend beyond the San Francisco-Sacramento area?

We’re trying to reach out to Sizzler to open more in Texas. We have operations in Texas and we think it could be a great market for the new-and-improved Sizzler. Currently, we have Little Caesars in Houston and Church’s in Dallas.

Beef stars in new restaurant chain menu items

 
March 15, 2012 | By Bret Thorn
Beef O’ Brady’s steak burrito

Beef O’ Brady’s steak nachos

Beef O’ Brady’s steak quesadilla

Dunkin steak and egg onion bagel breakfast sandwich

Papa Murphy’s bacon cheeseburger pizza

Restaurant chains are offering an array of new beef selections for early spring, often at premium prices.

Beef ‘O’ Brady’s, a 210-unit sports bar chain, has rolled out a line of five new premium Angus skirt steak items that a company spokeswoman said performed very well in test. Sales at restaurants where the items were tested rose by nearly 8 percent.

The new items are:

Whole Lotta Steak Nachos: Tortilla chips smothered with queso and topped with mixed cheese, lettuce, tomato and half a pound of steak, served with sour cream, salsa and sliced jalapeños, $10.99

Steak Quesadillas: Grilled flour tortilla stuffed with half a pound of skirt steak, Monterey Jack and Cheddar cheeses, with sour cream and salsa, $10.99

The Steak Burrito: Flour tortilla filled with grilled skirt steak, seasoned rice, peppers, onions, Monterey Jack and Cheddar cheeses, and creamy poblano sauce, served with chips and salsa, $9.99

Steak Bowl: Seasoned rice topped with grilled skirt steak, onions, peppers, Cheddar jack cheese, chopped tomatoes and creamy poblano sauce, $9.99

Steak Tacos: Steak, lettuce, Cheddar Jack cheese and creamy poblano sauce. Two tacos are $7.99, three are $10.99.

Applebee’s has extended its New Orleans-themed line with Blackened Steak Penne and a Bourbon Black & Blue Burger. The penne comes with spinach, garlic, tomatoes, Alfredo sauce, Parmesan cheese and a side of garlic bread, and starts at $12.99, depending on the location.

The burger is a seven-ounce patty with the 1,862-unit chain’s blackened seasoning, bourbon caramelized onions and mushrooms, Jack cheese, blue cheese crumbles, applewood smoked bacon and smoky mayonnaise. It starts at $9.49.

Dunkin’ Donuts has added a $3.99 steak item to the breakfast sandwich line at its 7,015 domestic units.

The Angus Steak & Egg Sandwich is a toasted onion bagel sandwiching Angus beef, an egg and melted American cheese.

Take-and-bake pizza chain Papa Murphy’s has introduced a Bacon Cheeseburger Pizza. The 1,290-unit chain’s original crust is spread with a blend of ketchup and mustard. That’s topped with mozzarella cheese, ground beef, bacon, onions and Roma tomatoes. Next is a layer of dill pickle chips with grated Cheddar cheese sprinkled on top. The limited-time item sells for $10–$12.

Read more: http://nrn.com/article/beef-stars-new-restaurant-chain-menu-items?ad=news#ixzz1pDKMbqxd