R&I Insider - November 1, 2005

By The Editors -- Restaurants & Institutions, 11/1/2005

Market Research
Quinoa salad and bottled pasta sauce are a far cry from the rotisserie chicken and mashed potatoes on which Boston Market built its business 20 years ago, but all four choices—along with an eclectic array of ready-to-eat and retail products—have places in the Golden, Colo.-based chain’s vision of the future, on display at a recently remodeled unit in River Forest, Ill.

On the menu, rotisserie chicken remains a signature alongside pork loin, sirloin and turkey breast sold in sandwiches ($6.99 each) or by the pound. À la carte sides range from standards such as creamed spinach to such upscale choices as roasted beets and grilled asparagus. A refrigerated display offers packaged, made-fresh-daily salads.

“This is a way to explore how to make the brand more relevant to today’s consumer,” says Phyllis Hammond, spokeswoman for the McDonald’s Corp.-owned chain. “It’s an extension of what we’ve always been about: home-meal replacement.”

Racks of wine, priced at $20 or less per bottle, highlight the substantial retail section. Other items include upscale mints and candies as well as dry pasta, sauces, coffees and teas. Boston Market-branded rubs also are available, as is a line of wooden bowls and tableware.

The 3,100-square-foot restaurant’s contemporary design, with just 17 counter seats along windows, reflects the concept’s takeout focus. Check averages were up significantly after three weeks of business, but the 630-unit chain will take its time evaluating the unit before expanding the test.

Menu Focus
A spicy Mexican sauce often paired with poultry or seafood, mole traditionally gains its trademark richness from a small amount of Mexican or bitter chocolate although some versions forgo the ingredient.

CHICAGO

• Frontera Grill: Red-chile-marinated Atlantic sea scallops in classic Oaxacan yellow mole

COLLINGSWOOD, N.J.

• The Tortilla Press: Mole-poblano-smothered corn tortillas with choice of chicken, Chihuahua cheese, pork or beef

GREELEY, COLO.

• University of Northern Colorado: Chicken with mole sauce

MIAMI BEACH, FLA.

• Emeril’s Miami Beach: Double-cut pork chop with tamarind glaze, caramelized sweet potatoes and green-chile mole sauce

MULTIPLE LOCATIONS

• Rosa Mexicano: Enchiladas de mole poblano with two handmade tortillas filled with chicken and topped with mole sauce, sliced onions and crumbled cheese (shown)
• Taco Milagro: Pork barbacoa tamales with Milagro mole sauce and sesame seeds

Everyday Joe
Burger King has beaten quick-service competitor McDonald’s to the punch by introducing premium coffee. Branded BK Joe, the 100%-arabica brew is offered in regular, decaffeinated and “turbo strength,” which packs 40% more caffeine.

The systemwide coffee initiative is a first for Miami-based Burger King. Only about 60% of its outlets used the company’s former Colombian blend; other stores chose their own brands, says Adrienne Hayes, a spokeswoman for the chain. “The consistency wasn’t there. Customers didn’t know what kind of coffee they were getting from store to store.”

Suggested prices for BK Joe, about 10 cents higher than the coffee it replaces, are 99 cents for small, $1.19 for medium and $1.39 for a large size not previously offered.

“The name refers to the customer it is aimed at: construction workers, blue-collar employees,” Hayes says. “It’s more a doughnut-shop coffee than a coffeehouse coffee.”

Hayes adds that the new brew is aimed at helping Burger King regain some of the morning coffee sales that it, like other quick-service restaurants, has lost to Starbucks and other specialty-coffee sellers.

Consumer Beat: When More Is Too Much
Menu variety ranked among the top five most important attributes consumers consider in deciding whether or not a restaurant is a “favorite” they will be patronizing again. Menus that have something for almost everyone—such as that at Texas Roadhouse (shown)—and that meet most cravings or preferences are commonplace, but when consumers are presented with too many options problems can arise. So argue John Gourville, associate professor of marketing at Harvard Business School, and Dilip Soman, professor of communication strategy at University of Toronto, in their study, “Overchoice and Assortment Type: When and Why Variety Backfires,” in Marketing Science.

While they did not specifically address menu selections, the researchers draw conclusions that can be applied to foodservice. One is that multiple, dissimilar choices accompanied by too much explanatory information can cause “cognitive overload” that results in negative brand perceptions. The authors suggest such overload is a greater risk “where a consumer is already mentally taxed (e.g. shopping with their small children).” When choices are not only numerous but equally appealing, “anticipation of regret” about whatever is selected is another potential problem. Gourville and Soman suggest that satisfaction guarantees can alleviate this, but some chains have found that allowing customized entrées with multiple proteins help customers make choices without regret.

Slush Fun
Mariano’s Mexican Cuisine closed two years ago, a victim of a wrecking ball making way for another Dallas strip mall. The restaurant’s owner, Mariano Martinez, made many friends during its 32-year run and now is getting overdue national recognition as the father of the frozen margarita.

Frustrated by malfunctioning blenders and inspired by Slurpee drinks at 7-Eleven stores, Martinez in 1971 modified a soft-serve ice-cream machine to blend and serve frozen margaritas. A Texas State Senate resolution in 2001 recognized the 30th anniversary of Martinez’ achievement. The Smithsonian National Museum of American History in Washington, D.C., has acquired the original frozen-margarita machine, which Director Brent Glass calls “a classic example of the American entrepreneurial spirit.”

At the museum, Martinez’ invention joins such foodservice wonders as the Krispy Automatic Ring-King Junior, created in the 1950s by Winston-Salem, N.C.-based Krispy Kreme Doughnuts to automate production of 60 dozen doughnuts an hour. The museum also displays a re-creation of Julia Child’s home kitchen in Cambridge, Mass.

Night-Owl Noshing
Meeting the needs of late-night diners, Purdue University has unveiled Harrison Grillé, its first quick-service concept. Open from 4 p.m. to 1 a.m. on weekdays and to 2 a.m. on weekends, it is the university’s first foray into after-hours dining.

“Students want later hours and want to get the maximum value from our meal plan,” says Sarah Johnson, director of dining services for the West Lafayette, Ind., university.

The 120-seat, 6,375-square-foot venue is part of the university’s $48 million master plan to bring five dining courts and five grill facilities to residents across campus. Replacing a straight-line cafeteria, the Harrison Grillé kitchen serves pizza, toasted subs, salads and quesadillas.

The operation, which features plasma televisions and quiet study areas, is not without challenges, Johnson says. “It’s not typical foodservice, where prep occurs early in the morning,” she explains. “It’s different for staff and is the biggest adjustment we’ll have to make.”

Nonetheless, next fall students on the other end of campus will be able to visit a second QSR concept.

For Sale by Owner
Casual-dining and quick-service chains have been hot commodities among investment firms. Last month, Damon’s Grill was acquired by Alliance Development Group. The transaction, for which terms were not disclosed, is expected to close in December. Columbus, Ohio-based Damon’s operates 105 steak-and-ribs restaurants. Charlotte, N.C.-based Alliance, a real-estate development firm, plans to incorporate the Damon’s concept into its multisite development business.

A partnership between Corte Madera, Calif.-based operator Il Fornaio and private equity firm Bruckmann, Rosser, Sherrill & Co. LLC emerged as the previously undisclosed buyer for Corner Bakery Cafe. The fast-casual chain, owned by Brinker International in Dallas, has 92 bakery-cafe locations. The two restaurant concepts “complement each other extremely well,” according to Il Fornaio CEO Mike Hislop. Terms of the sale were not disclosed.

Also sporting “Under New Ownership” signs is Irvine, Calif.-based El Pollo Loco, sold by American Securities Capital Partners LP to Trimaran Capital Partners, New York City. Palladium Equity Partners in New York City acquired Taco Bueno, the Carrollton, Texas-based quick-service Mexican chain, for an undisclosed amount. And private equity firm Castle Harlan Inc. of New York City purchased Perkins Restaurant & Bakery’s parent, Memphis, Tenn.-based The Restaurant Company, for $245 million. There are 483 company-owned or franchised Perkins restaurants.

Desert Blooms for Foodservice
Even this year’s opening of 19-restaurant Wynn Las Vegas hasn’t exhausted the Nevada gaming capital’s desire or space for new dining destinations. One appropriately over-the-top example was the September opening of $20 million, 40,000-square-foot Tao Asian Bistro/The Nightclub at Tao entertainment complex in The Venetian Resort Hotel Casino. Like the original Tao Asian Bistro in New York City, the Las Vegas operation (r.) features a 20-foot-tall Buddha statue in its dining room. The New York location reported sales of more than $24 million last year.

The Mirage will be home next year to a satellite location of Chicago’s Japonais. The 8,000-square-foot restaurant will take space formerly occupied by Mikado and Ava Lounge. “We met with The Mirage group and decided it was the sort of exciting growth that we wanted to be a part of,” says Miae Lim, co-owner of the contemporary Japanese restaurant.

Joining The Mirage’s restaurant portfolio in December is Stack, a second operation from The Light Group, owners of Fix Restaurant & Bar in Bellagio Hotel & Casino.

More space for new restaurants is on the drawing boards. W Hotels promises more than 10 destination-dining outlets when W Las Vegas Hotel, Casino and Residences opens in 2008, and Olympia Gaming’s $750 million Southern Highlands Casino Resort pledges more than a dozen fine- and casual-dining restaurants when completed in summer 2008. Actor-director George Clooney and nightclub entrepreneur Rande Gerber are among partners in Las Ramblas, a hotel, casino and condo development that will make room for even more high-profile restaurants.

OnTrend
R&I tracks recent menu introductions at operations across the country.

• BARCLAY PRIME, Philadelphia: Executive Chef Jim LoCascio’s just-debuted miniburger menu includes a seared tuna slider with Asian slaw on a black-and-white sesame-seed bun (r.).
• BEEF ’O’ BRADY’S, multiple locations: Among 13 menu additions is the Cheeseburger Wrap, a warm flour tortilla filled with premium beef topped with American cheese, mustard, pickle, mayonnaise and tomato.
• CHLOE, Playa del Rey, Calif.: Chef-owner Christian Shaffer’s latest progressive American menu speaks to the season with dishes such as braised veal short ribs with cauliflower, Tuscan kale and olives.
• JACK IN THE BOX, multiple locations: Jack’s Italian-bread infatuation continues with addition of a $2.99 Ciabatta Breakfast Sandwich. Its two eggs, ham, American cheese, bacon and hollandaise are served in the same rolls used for Ciabatta Burgers and Chicken Ciabatta sandwiches.
• SALADWORKS, multiple locations: Available through December, the Autumn Harvest Salad tops mixed greens with roasted turkey, dried cranberries, corn, carrots and sunflower seeds; it is garnished with apple chips and dressed with pumpkin vinaigrette.