R&I Insider - May 11, 2006

By The Editors -- Restaurants & Institutions, 5/1/2006

Grab-and-Going Strong

Expanded grab-and-go food choices are helping fuel record revenue growth at convenience stores as leading brands such as Dallas-based 7-Eleven and Lombard, Ill.-based White Hen introduce the more-upscale, bold-flavored and healthful options customers seek. Last year, foodservice sales at c-stores rose 8.8% in 2005 to $17.2 billion, according to the Alexandria, Va.-based National Association of Convenience Stores.

Innovation leads the segment’s success. At a recent orientation event in Denver, 7-Eleven unveiled upcoming additions including the P’EatZZa sandwich, made from two pieces of flatbread with tomato and cheese; Bistro Grillers with grilled sausages in flavored breads (such as jalapeño-and-cheese sausage on chipotle-masa bread); and whole apples and oranges in plastic containers. Earlier this year, the company, with 5,800 North American units, debuted lower-fat-and-calorie Pick Smart sandwiches and two ciabatta sandwiches, brown-sugar turkey and sopressata and pepperoni.

White Hen is banking on gourmet coffees, expanded natural and organic offerings, fresh salads and full-service delis featuring toasted-to-order sandwiches to drive traffic and sales growth. The 265-unit company is ramping up expansion after several years of slowed growth, with plans to open 10 new stores this year and 15 per year in 2007 and beyond.

Taking a different strategy is Wausau, Wis.-based Riiser Oil Co., which will introduce Maid-Rite Express Sandwich Shoppes in many of its convenience stores as part of an agreement to open 60 new restaurants for the Des Moines, Iowa-based chain. Maid-Rite is known for its signature “loose meat” ground-beef sandwiches, which Riiser President and Chief Operating Officer James Kemerling calls “a natural fit” and unique food offering for the c-stores.

Across the Atlantic, London-based retailer Harrods Ltd. has launched a “new-generation” c-store branded Harrods 102. The concept sells fresh-made bread, sandwiches, bagels and juices as well as sushi, fresh meat and dairy products, wine and spirits. An array of walk-in services from shoe repair to hand-and-foot massage adds the luxury component for which the store is known.

The Soda Rebellion
A California high school student is trying to overturn a state statute banning soda sales in high schools. Rocky Slaughter, 18, president of The High School Student Union of California, is seeking a ballot initiative asking California voters to annul the soda law. He must collect nearly 400,000 signatures to place such a question on a ballot.

The no-pop statute, which takes full effect in 2009, prohibits schools from selling sweetened drinks, though it does not ban students from drinking them. The law allows the sale of juices and sports drinks. Slaughter, a senior at Shasta High School in Redding, Calif., where the ban already has been implemented, says he objects to vending machines selling 100% juice drinks. “They’re putting high-calorie drinks on school campuses,” says Slaughter. “We want kids to realize that 100% juice will be just as bad for you in terms of obesity as soda will be,” a reference to calorie counts.

Slaughter’s ballot initiative would mandate that half the space in school vending machines be allotted to low-sugar drinks, and the remainder to sodas and other sugared beverages. Mike Stuart, superintendent of Shasta Union High School District, which oversees eight high school sites and a total of 6,500 students, says he supports Slaughter’s methods. He says the current antisoda law “in practical terms, is not going to make one bit of difference in how much soda our kids drink.”

WFF: Elevating Women Leaders
The Women’s Foodservice Forum’s (WFF) Annual Leadership Development Conference, held last month at the Hilton Anatole in Dallas, carried on a tradition few other industry organizations can match: serious growth in attendance, something that has happened each of the 17 years the event has been held. More than 2,700 attended the three-day conference. Keynote addresses by Cokie Roberts and Dr. Bertice Berry, numerous breakout sessions and workshops and the organization’s signature “Network with the Leaders” sessions all were designed to support WFF’s “Elevating Women Leaders” platform.

Along with a shift in leadership—Ecolab’s Alice Wheelwright, WFF board chairwoman, ended her term and passed the gavel to incoming chair Paula Marshall, CEO of Bama Companies Inc.; Mary Bentley, formerly of General Mills, was named president of WFF.

Julia Stewart (right, c., with Wheelwright, l., and Marshall), CEO and president of Glendale, Calif.-based IHOP Corp. and the first WFF board chair, received the Trailblazer Award while Valerie Insignares, executive vice president of operations for Orlando-based Olive Garden, was named Emerging Leader.

On Monday, May 22, WFF holds its Annual Leadership Luncheon at the Hyatt Regency McCormick, Chicago. Clarence Otis, CEO of Orlando-based Darden Restaurants, will keynote. The WFF Jackie B. Trujillo SOAR Award (Standard-Setter for Opportunity, Advancement and Recognition) also will be presented.

Maki That Moves You
Forget flowers. Conveyor belts are the centerpieces at Hawaii-based Hanakai Sushi Bar & Grill. Technological advances in conveyor-belt systems ensure that plates circle the dining room for no more than 30 minutes. Coupled with streamlined sushi preparation, the technology makes franchising feasible.

Opening its first continental U.S. location this fall in Las Vegas, Hanakai is betting that inexpensive sushi (the average check is $13) in a fast-casual setting will catch on nationally. “Sushi at affordable prices means that many new customers can go there at any time,” says Myra Rabanal, Hanakai vice president of marketing and advertising. “It’s going to be fresh, it’s going to be fast.”

Conveyor-belt sushi already is big in the United Kingdom, led by London-based Yo! Sushi, with 30 units.

Countdown to the NRA Show
Boasting more than 60 educational sessions, the 2006 National Restaurant Association Restaurant, Hotel-Motel Show offers the 73,000 professionals expected to attend more ideas and insights that can build business. To be held May 20 to 23 at Chicago’s McCormick Place exposition center, the National Restaurant Association’s 87th annual gathering will showcase 2,000 exhibitors.

Speakers include keynoter Ted Koppel, former ABC News journalist now with The Discovery Channel, whose speech will take place Sunday, May 21 at 2 p.m. Truett Cathy, chairman of Chick-fil-A, will address the 2006 SPIRIT Awards and FMP Recognition Breakfast on May 22. The event salutes those who have received the National Restaurant Association Educational Foundation’s Foodservice Management Professional credential.

Winners of the 2006 Kitchen Innovations Awards will present interactive demonstrations of trend-setting kitchen equipment. Foods from around the globe will be showcased at a new International Cuisine Pavilion, and three finalists will square off in a competition to select the United States’ representative to next year’s Bocuse d’Or World Cuisine Contest in Lyon, France.

To register for the show, visit www.restaurant.org/show or contact the NRA at (312) 580-5410.

Menu Focus
Stuffed in crusty rolls or dipped in butter, lobster is a delicacy that has found its way to most industry segments.

• BALTIMORE
  University of Maryland Baltimore County (Sodexho): Whole Lobster Night
• BINGHAM FARMS, MICH.
  Morels, An American Bistro: Maine lobster corn dog with citrus-honey-ginger vinaigrette
• CHICAGO
  Copperblue: Lobster poached in rue-scented beurre monte with whitefish roulade and warm caviar gelée
• FROSTBURG, MD.
  Frostburg State University Catering Services: Lobster-and-brie quesadillas
• LAS VEGAS
  Tao: Lobster, mango and truffle salad with wasabi caviar
• MCLEAN, VA.
  Coastal Flats: Coastal Lobster Roll with lobster salad on a grilled roll
• MIAMI BEACH, FLA.
  Doraku: Spicy Lobster Roll with tempura lobster, cucumber and avocado with spicy cream sauce
• MULTIPLE LOCATIONS
  Bahama Breeze: Lobster and shrimp sautéed with mushrooms, herbs, brandy and cream and tossed with linguine (above)
• NEW HAVEN, CONN.
  Yale University Catering Services: Dialogue of Beef and Lobster “New England” with beef tenderloin, lobster, roasted tomatoes and spinach in phyllo

Hotels Get Hip
Breaking new ground in the increasingly competitive business of hotel foodservice, Westin Hotels & Resorts will test a new fast-casual concept at its Cincinnati property that, if successful, could become a model for the chain nationwide. The White Plains, N.Y.-based company will open the 118-seat, high-end grab-and-go concept called Ingredients in mid-July.

The central focus of the restaurant is an attractive display of 50-plus ingredients from which customers select a choice of greens, five toppings, one protein and dressing for salads tossed to order. Also on the menu are four pizzas and 12 sandwiches, six of which will be hot panini pressed to order. Most options will be priced $5 to $8, says John Wedig, director of food and beverage at The Westin Cincinnati. Open 6 a.m. to 6 p.m. to cater to hotel guests and nearby office workers, Ingredients also will offer morning-friendly items from breakfast panini and calzones to bagels, pastries, croissants and cereal.

Table Turns

• John Chidsey was elevated to chief executive officer of Burger King Corp. in Miami. He succeeds Greg Brenneman, who left to return to his private-equity firm. Chidsey had been president and chief financial officer since joining Burger King in March 2004. ...
• Frank Pellegrino Sr., Frank Pellegrino Jr. and Ron Straci, principals of New York City’s 100-year-old Rao’s Italian restaurant, announced plans to open a second location this fall in Caesars Palace, Las Vegas, in space previously occupied by Terrazza restaurant. ...
• Sirio Maccioni reopens New York City’s Le Cirque in its new location on East 58th Street on May 30. ...
• Nate Appleman, former chef de cuisine at San Francisco’s A16, has succeeded Christophe Hille as its executive chef. ...
• Laurent Tourondel—chef-partner in several New York City restaurants, including BLT Steak and BLT Fish—has added duties as executive chef at classic-French Brasserie Ruhlmann. ...
• The Ritz-Carlton Chicago elevated Mark Payne to executive chef from executive sous-chef. Before joining The Ritz-Carlton Chicago in 2003, Payne was restaurant chef at Café Pierre in The Pierre in New York City. ...
• Pizza Hut in Dallas promoted Bill Ogle to chief marketing officer following the resignation of Tom James. ...
• Lewis Butler joined Wolfgang Puck Catering Group in Los Angeles as an executive chef. Previously, he was executive chef at Rancho Bernardo Inn in San Diego. ...
• Randy Clifton joined Sbarro Inc., Melville, N.Y., as president for North American franchising. He previously was senior vice president of franchising for Uno Restaurant Corp. ...
• Jeremy Sabo serves as chef at Vivace, Urban Food Group’s latest restaurant in Raleigh, N.C. ...
• David Sieg was promoted to director of marketing and public relations for Tampa. Fla.-based The Melting Pot. Previously he oversaw franchise marketing and public relations. ...
• Melissa Walnock is the new pastry chef at Grace in Los Angeles, succeeding Elizabeth Belkind. Walnock previously was at The French Laundry. ...
• Carl Howard was named president and CEO of Columbus, Ohio-based Damon’s Grill, succeeding Shannon Faust, who left after its acquisition by Alliance Development Group LLC, Charlotte, N.C.